For the third time in the past 12 years, Tennessee has been recognized as the state with the best business climate, according to Business Facilities magazine.
The bi-monthly trade publication, which focuses on economic development and site selection, said Tennessee benefited by its targeted training work skills program, its certification of industrial sites and its relatively low energy costs.
Best business climate
1. Tennessee2. Virginia3. Alabama4. Texas5. UtahSource: Best Facilities magazine ranking of business climates.
"Tennessee always sets the bar high in meeting all of the priorities of businesses evaluating locations in the Volunteer State, whether it's customized workforce training, prefertilized sites or lower industrial electricity costs," said BF Editor Jack Rogers.
Business Facilities listed two neighboring states to Tennessee - Virginia and Alabama - as the No. 2 and No. 3 states, respectively, for their favorable business climates.
Top metro cities for economic potential
For large metro areas:1. Atlanta2. San Antonio3. Phoenix4. Houston5. Orlando
The Southeast also had the best metro city for business and the top state for economic growth potential. Atlanta ranked No. 1 with the best business climate of major cities. North Carolina was judged to be the sate with the best economic growth potential in the 15th annual Business Facilities rankings.
Chattanooga also made one of the magazine's top 10 lists. Business Facilities ranked Chattanooga No. 9 in its ranking of the "Top Mid-Sized MSAs for Manufacturing." With 35,200 manufacturing jobs in metro Chattanooga last month, manufacturing comprises 13.2% of the jobs in the 6-county Chattanooga area. Nationwide, manufacturing represents only about 8.5% of all jobs.
Tennessee's global appeal
In Tennessee, the magazine cited the recent decision by Mitsubishi Motors to locate its $18 million North American headquarters in Williams County and Amazon picking Nashville last year for one of its three new corporate offices.
Top states for economic growth potential
1. North Carolina2. Colorado3. Virginia4. Nevada5. AlabamaSource: Business Facilities
"Over the years, Tennessee has become the epicenter of the Southeast's thriving automotive sector, and I'm proud Mitsubishi Motors will call Franklin its U.S. home and bring 200 high-quality jobs to Middle Tennessee," Tennessee Gov. Bill Lee said earlier this year when Mitsubishi Motors North America officials announced the automaker will relocate its headquarters to Franklin, Tennessee, from Cypress, California.
Bob Rolfe, commissioner for the Department of Economic and Community Development, said Tennessee's "respected business climate continues to attract great companies" from around the globe. Tennessee has also been a top state in attracting foreign direct investment.
"This ranking does not come without the help of all of our partners across the state that continue to make Tennessee a great place to do business," Rolfe said in a statement in response to the top ranking by Business Facilities.
Tennessee's Economic and Community Development website summarizes Tennessee's approach to business development: "We believe in high expectations, low debt and a pro-business regulatory environment. Tennessee is proud to be a right-to-work state with no personal income tax on wages. Our state and local tax burdens are among the lowest in the country, and our state budget operates with a healthy surplus rather than a deficit."
Atlanta "red hot" for tech
Among major U.S. cities, Business Facilities said Atlanta, which is home to 15 Fortune 500 companies, "has become a red-hot tech hub."
BlackRock chose the Atlanta area for its new Innovation Hub comprised of 1,000 jobs. Music-streaming service Pandora chose the Atlanta to expand its East Coast presence with 250 new jobs. Honeywell International Inc. is expanding its Midtown software innovation center for 300 more jobs, and Salesforce expanded its regional headquarters in Atlanta with 600 jobs.
"Atlanta Tech Village unites established tech companies, startups, innovators and investors under one roof," Rogers said. "More than 300 startups have passed through the Village, and more than $600 million has been raised in capital toward their innovations."
The magazine also cited the Advanced Technology Development Center (ATDC) , an incubator at the Georgia Institute of Technology which has attracted an estimated $2.5 billion in investments and created 5,500 jobs.
Contact Dave Flessner at dflessner@timesfreepress.com or 757-6340