Ohio leads CNBC state business ranking as long-term shifts emerge
CNBC’s 20-year record shows Ohio at No. 1 for 2026, with Michigan posting the largest gain since the rankings began in 2007.
By Marcus V. Thorne · Markets Editor
· 3 min read
Ohio ranked first in CNBC’s 2026 America’s Top States for Business study, moving up from 30th place when the annual ranking began in 2007. CNBC’s two-decade record shows sustained strength in Virginia, Texas and North Carolina, while Michigan recorded the largest improvement over the period.
The ranking, launched in 2007 as U.S. states were competing more aggressively for corporate investment, assesses states on business conditions including infrastructure, workforce and cost of doing business, according to CNBC. The data have become part of the economic-development debate, with governors citing strong results and political opponents using weaker scores against incumbents, CNBC said.
CNBC said companies have also used the ranking as one input in location decisions. Amazon consulted the rankings during its 2018 HQ2 search, according to CNBC.
Long-running leaders and laggards
Virginia, Texas and North Carolina have rarely fallen outside the top 10 since the study began, CNBC reported. In 2026, North Carolina ranked second, Virginia third and Texas fourth. Their average rankings over the full period were fifth, fourth and third, respectively, according to CNBC’s table.
Georgia and Utah also show strong long-run records, each with an average ranking of sixth, although Utah fell to 16th in 2026 after placing third in 2007. Minnesota ranked fifth in 2026 and seventh on average over the 20-year period.
At the other end of the table, CNBC identified Alaska, Hawaii, Rhode Island and West Virginia as consistent low performers. Hawaii ranked 50th in 2026 and had a 49th-place average. Alaska ranked 49th in 2026 and averaged 48th. Rhode Island ranked 48th in 2026 and averaged 48th. West Virginia tied Louisiana at 46th in 2026 and averaged 46th.
Industrial states climb
Michigan rose to sixth in 2026 from 41st in 2007, the largest improvement among all states in CNBC’s 20-year comparison. CNBC linked the improvement to low costs, infrastructure strength and access to capital. In 2007, the state ranked 46th for economy as General Motors and Chrysler were approaching bankruptcy amid the auto industry’s crisis.
Ohio’s rise was also pronounced. CNBC said the state had lost 250,000 manufacturing jobs between 2000 and 2007, and it ranked 33rd for cost of doing business in the first year of the study. In 2026, Ohio ranked first overall.
Illinois moved to 12th in 2026 from 39th in 2007. Indiana rose to 10th from 25th, while Tennessee climbed to ninth from 17th.
Some early leaders lose ground
South Dakota ranked 44th in 2026 after placing 18th in 2007 and reaching first place in 2013, CNBC said. Its economy category fell to 45th in 2026 from 24th in 2007, while its quality-of-life rank moved to 33rd from 18th.
Idaho ranked sixth in 2007 and had the lowest cost of doing business that year, according to CNBC. In 2026, it ranked 30th overall and 28th on business costs.
Colorado also moved lower over the 20-year span, ranking 25th in 2026 after placing seventh in 2007, though its average rank across the period was eighth. Oregon fell to 42nd from 23rd, and Kansas moved to 37th from 16th.
CNBC’s 2026 top 10 were Ohio, North Carolina, Virginia, Texas, Minnesota, Michigan, Georgia, Florida, Tennessee and Indiana. The bottom five were Louisiana and West Virginia tied at 46th, Rhode Island, Alaska and Hawaii.
This story draws on original reporting from CNBC.
