Ohio Achieves Significant Milestone in Business Rankings
Ohio's Rise in Business Rankings
Ohio has made a notable ascent in the CNBC annual report, climbing to #5 in 2025 from #7 in 2024. This impressive improvement showcases the state’s commitment to fostering an advantageous business environment. Previously, Ohio embarked on its journey with a significant jump to #12 in 2023, marking a continuous upward trajectory in the rankings.
Key Factors Contributing to Ohio's Ranking
This year, Ohio secured its highest ranking since the study’s inception in 2007, excelling in several crucial areas. Among the top five states, Ohio is recognized for having the best infrastructure along with both the lowest cost of doing business and living expenses. These aspects play a significant role in attracting both established companies and new ventures to the state.
Understanding the Scoring Criteria
Although the foundation of the study remains unchanged, CNBC adjusted the weight of specific categories for their scoring system. Economy and infrastructure received top priority this year, accounting for 17.8% and 16.2% respectively. Key factors such as Ohio’s balanced budget, diversified economic growth, and access to affordable energy significantly contributed to this favorable ranking.
Voices from State Leaders
Ohio’s Governor highlighted the state’s readiness by saying, "From construction-ready sites to the ingenuity of our workforce, Ohio ensures unparalleled confidence in the business investment landscape." He stressed the importance of low taxes and reduced bureaucratic hurdles in maintaining Ohio’s place as a competitive business hub.
Spotlight on Ohio's Business Environment
Ohio’s leadership team emphasizes the synergy between affordability and a skilled labor force. Ohio Lieutenant Governor remarked, "Companies thrive in environments where talent is abundant, and living costs are manageable. Our state's approach demonstrates how every citizen can benefit from economic growth." This perspective reflects the state's broader objective—an economy that benefits all stakeholders.
Infrastructure Developments
CNN’s assessment notably improved Ohio's infrastructure ranking from #13 to #1. The state is proud of its expansive interstate highway system and its efficient rail networks, both crucial for business operations. This commitment to infrastructure development is complemented by robust investments aimed at providing sites ready for industry ventures, enhancing Ohio’s appeal for businesses.
Cost of Doing Business Dynamics
This year, Ohio retained a remarkable #2 ranking for its business costs. One of the key factors in this category is Ohio's lack of corporate income tax, significantly lowering the financial barrier for businesses operating in the state. Recently, the state has doubled its exemption threshold under the commercial activity tax, freeing a majority of Indiana businesses from such burdens.
Workforce and Economic Growth
Ohio boasts a workforce exceeding 5.5 million, making it one of the largest in the nation—particularly in the manufacturing sector. The state has initiated multiple workforce development programs to enhance skills and meet the growing demands of industry. By focusing on essential training programs and educational partnerships, Ohio continues to invest in its future workforce, ensuring sustainability and growth.
Cost of Living Considerations
In terms of affordability, Ohio ranks #7 for its cost of living. The top individual income tax rate has been reduced significantly, which reflects the state’s commitment to maintaining an attractive living environment. Recent trends in housing also indicate a moderate increase in prices, but active listings are on the rise, ensuring that Ohio remains an affordable option compared to coastal regions.
Technological Advances and Capital Attraction
Ohio's score in technology and innovation places it at #6, indicating robust growth in its tech sector. Hosting over 1,500 data centers, Ohio exemplifies a growing hub for technological investments, particularly following the establishment of the Intel semiconductor facility. This boom in technology is pivotal for Ohio’s economic positioning, making it a notable player in tech advancements.
Access to Funding
Ohio's status regarding access to capital has improved, moving to #7 in the rankings. The state has maintained an impressive credit rating from leading agencies, affirming its financial stability and attractiveness to investors. This encouraging financial environment is essential as it facilitates growth and development across various sectors.
The Future of Business in Ohio
As Ohio navigates its position in the business world, it is crucial to recognize the value of collaborative efforts among state leaders, economic development organizations, and local communities. Innovative strategies, such as the JobsOhio 2030 plan, are set to build on this progress, further enhancing Ohio's ability to attract investment and talent.
“Ohio’s number five ranking is a testament to the proactive approach in fostering an environment conducive to businesses and job creation,” said the President of JobsOhio. The focus will remain on building readiness in infrastructure and innovation to continuously appeal to forthcoming businesses.
Frequently Asked Questions
What position did Ohio achieve in the 2025 CNBC report?
In 2025, Ohio ranked #5 in CNBC's annual "Top States for Business" report.
How has Ohio improved its business environment?
Ohio improved its business environment through strategic investments in infrastructure, workforce development, and cost reductions in business operation.
What is Ohio's ranking in infrastructure?
Ohio ranks #1 in infrastructure in the CNBC report, a significant increase from #13 last year.
How does Ohio's cost of living compare?
Ohio has a ranking of #7 in cost of living, which reflects its affordability relative to other regions.
What initiatives are in place for workforce development in Ohio?
Ohio has launched initiatives like TechCred and partnerships with educational institutions to enhance skill development and workforce readiness.
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