Virginia was once again crowned CNBC's Best State for Business, marking an unprecedented sixth time since the network began its competitiveness survey in 2007.
This is an improvement from the state's No. 2 ranking last year and reflects Virginia's top-rated public education system and its commitment to creating business-ready campuses, CNBC reported.
In April 2023, Gov. Glenn Youngkin (center) toured a welcome center showcasing a model of the factory the LEGO Group is building in Chesterfield County. It will be the LEGO Group's first factory in the United States.
Daniel Sanjiv Min, TIMES-DISPATCH
Of the four Southern states that Governor Glenn Youngkin frequently cites as his biggest rivals in attracting new and expanding businesses, Virginia came out on top, with the smallest difference in scores ever across about 128 categories, according to CNBC.
“I believe in the results. When I took office, Virginia was in the bottom three for job growth,” Youngkin told reporters at an event in Petersburg on Thursday.
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“Companies were telling me they were leaving. And today we have $72 billion in committed capital from companies relocating here. We have 240,000 more people working here than we did two and a half years ago. Listen, results matter.”
These investments include the Lego Group's first U.S. factory, as well as new facilities for Amazon Web Services, Raytheon and Boeing, and major expansions by Hilton, Northrop Grumman and Framatome.
The governor said efforts to develop business sites, invest in infrastructure and training and streamline permitting processes have helped businesses see the demand in Virginia.
Youngkin cited nearly $5 billion in tax cuts given to Virginians over the past two years, strengthening the state's workforce development efforts, an energy plan that emphasizes the use of natural gas and small nuclear reactors and promotes the expansion of wind and solar power, and millions of dollars spent on business site development.
“This is why Virginia is No. 1 for business and why I think we're going to continue to grow and do great things in terms of future opportunities for all of you in this room,” he said.
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“When companies choose to invest and grow in Virginia, we promise them best-in-class talent, infrastructure, power solutions and a business-friendly environment,” Youngkin said.
Rankings announced for the 2021 competition
During the 2021 campaign, Youngkin said Democrats had hurt the state's economy and downplayed Virginia's No. 1 rankings in 2019 and 2021, when Democrat Ralph Northam was governor. CNBC did not release rankings in 2020 because of the coronavirus pandemic.
Virginia ranked third in 2022, Governor Youngkin's first year in office, and second last year.
“With Democrats back in the Legislature, Virginia is back on track. This year, we passed a bipartisan budget that reflects the values of Virginians,” House Speaker Don Scott Jr. (D-Portsmouth) said in a statement.
“Businesses want to build their workforces in states with a high quality of life for their employees, and Virginia is a great place for working families.”
What a great day to be Virginians! pic.twitter.com/j4A7TZMewj
— Glenn Youngkin (@GlennYoungkin) July 11, 2024
CNBC cited bipartisan efforts on education as a key factor in Virginia's success.
“Virginia's greatest competitive advantage is its education system, which is ranked number one in the nation,” CNBC reported.
The network noted that when Democrats regained control of the state Legislature in 2023, “they opposed what they claimed were education cuts in Gov. Youngkin's proposed budget,” but the two sides ultimately agreed to a compromise that included $2.5 billion in new funding for K-12 schools and a 3% pay increase for teachers and public employees.
The report pointed to Virginia’s breadth of higher education options, particularly Virginia’s five historically black colleges and universities, and a 28 percent increase in state support for higher education over the past five years.
Additionally, CNBC noted that Virginia offers the most personalized K-12 education in the nation, with an average of 10.9 students per teacher last year.
“That appears to be translating into better test results,” CNBC reported.
Another new category, infrastructure, was also mentioned, with Virginia coming in third in the nation in that area, according to CNBC.
“What's really great about Virginia's infrastructure is the abundance of ready-to-build land the state offers to companies looking to build quickly, with the state's economic development department identifying dozens of sites across the state and promising to have all utilities and infrastructure in place within 18 months,” a CNBC summary of the study noted.
North Carolina, Texas, Georgia and Florida follow.
CNBC quoted the Site Selectors Guild as saying Virginia's program is one of the most advanced and well-funded in the country.
In other categories, Virginia ranked fifth in business friendliness, eighth in access to capital, ninth in workforce index, 11th in economic conditions, 15th in technology, 19th in both cost of living and quality of life, and 24th in costs of doing business.
The state's biggest improvement in rankings was in cost of doing business, which rose 10 places from 34th in 2023. The state's biggest decline in rankings was in access to capital, which fell four places from fourth in 2023.
Other big gains included a six-place increase in cost of living and a two-place increase in economy. The state's quality of life ranking dropped three places and its workforce ranking dropped two places.
“Virginia's ranking as a best state for business reaffirms our belief that Virginia is a great state for business,” said Virginia Chamber of Commerce President Barry Duvall.
“It highlights our strong education system, the presence of business-ready sites, and Virginia's commitment to economic development and a culture of innovation and entrepreneurship.”
Rivals North Carolina, Texas, Georgia and Florida rounded out the rest of the top five. Minnesota topped the list of northern states at No. 6. CNBC rated Hawaii the least business friendly state.
Details of Lego's plans for $1 billion Chesterfield factory
Plans to build factory in Chesterfield
Gov. Glenn Youngkin announced Wednesday that the Lego Group plans to invest more than $1 billion to build a factory in Chesterfield. CEO Niels Christiansen appeared at a press conference in Billund, Denmark, to announce the plans.
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Shaban Atman/Richmond Times-Dispatch
1.7 million square feet
The 1.7 million square foot facility will mold, process and package LEGO products.
Shaban Atman/Times-Dispatch
Planned opening in 2025
Shaban Atman/Richmond Times-Dispatch
“All that Virginia has to offer.”
“We are impressed with all that Virginia has to offer, including access to a skilled workforce, support for high-quality manufacturers and excellent transportation connections,” the CEO said. “We appreciate the support for our ambitions to build a carbon-neutral facility and construct a solar power plant, and we look forward to building a great team,” Niels Christiansen said in a statement.
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Taxpayer-Funded Incentives
Lego is eligible for a variety of taxpayer-funded incentives for the 340-acre site, including a $56 million performance-based grant and site development improvements contingent on legislative approval (estimated to cost up to $19 million). The seventh factory in the world.
Shaban Atman/Richmond Times-Dispatch
Timeline
Construction is expected to begin this fall, with a temporary packaging facility opening in an existing building nearby in early 2024, creating up to 500 jobs, the company said in a statement.
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