Ohio Tops CNBC's 2026 State Business Rankings

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Ohio claims the No. 1 spot in CNBC's annual competitiveness study, dethroning North Carolina by nine points on the strength of the nation's best infrastructure and lowest business costs.

Lead

Ohio claimed the top position in CNBC's annual US state economic competitiveness survey on July 9, 2026, becoming America's No. 1 state for business for the first time since the study launched in 2007. The Buckeye State scored 1,623 out of a possible 2,500 points, narrowly defeating North Carolina — the reigning champion — by just nine points, capping five consecutive years of improvement and a 33-spot ascent since ranking 34th in 2010.

What Happened

CNBC evaluated all 50 states across 138 metrics in 10 broad categories of competitiveness, now in its 20th year. For the first time in 2026, infrastructure became the top-weighted category at 17.6% of the total score, reflecting corporate demand for strategic locations near transport hubs, reliable utilities, fresh water supplies, and energy capacity capable of supporting advanced manufacturing and data centers. Ease of permitting was also incorporated into the methodology for the first time this year, reflecting the growing premium companies place on speed to market.

Ohio earned straight A+ grades in both Infrastructure and Cost of Doing Business — the two heaviest-weighted categories. The state's transportation network includes the fourth-largest interstate highway system in the country, the fourth-largest network of operating freight railroads, and the fifth-highest volume of warehousing and storage capacity nationwide. More than 143 million people live within a single day's drive of Ohio's borders, a geographic advantage that benefits logistics-intensive industries from automotive to e-commerce.

On costs, Ohio offers low real estate, utility, and insurance expenses. The state also eliminated its corporate income tax and in 2025 expanded its Commercial Activity Tax exclusion, effectively exempting approximately 90% of businesses from that levy. Ohio rounded out its top-ten finishes with Economy (9th), Access to Capital (9th), Cost of Living (9th), and Technology and Innovation (10th).

Strategic and Investment Context

Ohio's ascent reflects a sustained, deliberate industrial strategy that accelerated following the passage of federal semiconductor and infrastructure legislation. Intel's semiconductor fabrication facilities under construction in Licking County represent the largest single capital investment project in Ohio history. Recent additions to the state's project pipeline include Anduril Industries' $910 million advanced manufacturing campus in Pickaway County, Joby Aviation's advanced air mobility facility, and the LG Energy Solution–Honda electric vehicle battery plant.

On the workforce side, the state invested $300 million to expand career-technical education facilities and equipment, and launched the WorkOhio initiative in early 2026 to connect job seekers with training programs and employment resources tied directly to employer demand through its Experiential Learning Initiative.

North Carolina finished second with 1,614 points, completing six consecutive years in which the state has finished first or second in the CNBC top states for business rankings. Texas placed fourth, leading the nation in workforce quality and ranking second in overall economic output. Minnesota rounded out the top five.

Virginia Business Climate

The state's rebound, however, came with a notable caveat. Virginia fell from 14th to 23rd in the Economy category, a decline CNBC attributed directly to the impact of federal workforce reductions. Northern Virginia, home to one of the nation's largest concentrations of federal contractors and government employees, absorbed a disproportionate share of cuts to the federal civilian payroll, weighing on regional employment and consumer spending metrics. Virginia's overall standing recovered despite that drag, supported by strength in infrastructure investment — particularly in data center development — and a diversified technology sector.

Worst and Most Improved

At the opposite end of the spectrum, Hawaii ranked last among all 50 states. Arkansas earned the Most Improved designation, reflecting accelerating investment and policy reforms in the state's business environment.

Outlook

Ohio's first-ever No. 1 finish in the CNBC top states for business ranking marks the culmination of a two-decade trajectory that carried the state from 30th place in 2007 to the summit in 2026. With infrastructure now the dominant criterion in the ranking and Ohio holding the top grade in that category, the state is well-positioned to defend its standing as long-term capital commitments in semiconductors, defense manufacturing, and clean energy continue to materialize. Virginia's structural challenge — dependence on federal employment concentrated in a single metropolitan corridor — will persist as long as federal headcount reductions continue, making diversification of its economic base the central policy question heading into 2027. North Carolina, meanwhile, enters next year's cycle having finished first or second six straight times, with the infrastructure gap to Ohio representing the primary variable to close.