Texas earned the No. 1 spot in Site Selection Magazine’s annual rankings of the top business climates in the nation.

The rankings are based on “a survey of corporate site selectors, qualified projects logged in the publication’s Conway Projects Database and independent measures of states’ attractiveness to capital investors,” according to Site Selection Magazine. Other factors included ease of permitting, availability of needed workforce skills, land, utilities and quality of life.  

Texas has consistently ranked in the top five, however, this year’s ranking marks the first time it has claimed the top spot since 2011. In addition to this new ranking, Texas also won Site Selection’s Governor’s Cup earlier this year, solidifying its 11th consecutive year as the nation’s top-performing state for job-creating business relocations and expansions.

“[These rankings are] a testament to the exceptional economic development professionals and chambers of commerce in Texas,” said Texas Governor Greg Abbott in a press release. “Texas is America's economic juggernaut, and we are now the eighth-largest economy in the entire world. We cut red tape, we have lower taxes, and we have the best workforce in the United States.” 

In an interview with Site Selection, Abbott highlighted two pieces of legislation signed this year that has bolstered the state’s economic development and ultimately contributed to this new ranking – the Texas CHIPS Act, which aims to accelerate semiconductor manufacturing in the state and the Jobs, Energy, Technology and Innovation Act, which offers a school property tax value limitation to attract large-scale economic development projects.

Abbott emphasized that Texas continues to attract top businesses due to competitive advantages that can only be found in the state including tax incentives and programs, access to global markets, robust infrastructure and predictable regulations. 

Additionally, Abbott pointed to Texas’ skilled, diverse and ever-growing workforce as a major contributor to its award-winning business climate. According to Abbott’s office, Texas’ labor force is the largest it has ever been with more than 15 million workers.

In September, Texas employers added 61,400 jobs, according to data from The Texas Workforce Commission and the Bureau of Labor Statistics. From September 2022 to September 2023, the state added 435,800 jobs at a 3.2% rate, faster than any other state. 

“The economic momentum we are seeing in Texas today is record-setting as our project pipeline continues to expand,” said Abbott. “Meeting the needs of employers is paramount to ensure Texas remains the top state for economic development and business climate.” 

Learn more about Texas’ Business Climate.