North Carolina has regained its status as the nation’s Top State for Business, as determined by cable business channel CNBC for 2025.
The Tar Heel State has been ranked No. 1 for the third time in the past four years, along with being in the top two each of the past five years.
Although there is a cottage industry of state business climate rankings, CNBC is often cited by economists and site-selection officials as carrying the highest profile and the most influential.
In moving past Virginia, North Carolina overcame significant economic and natural disaster challenges.
“The Tar Heel State is still recovering from the tragic loss of Hurricane Helene, a $60 billion disaster that killed more than 100 people in North Carolina, worsened a statewide housing shortage, and created new challenges for the state’s already stressed infrastructure,” CNBC said.
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Texas finished runner-up, followed by Florida, Virginia and Ohio. Three of the top five are red states, while North Carolina and Virginia are purple.
Amid an increasing number of cultural war legislative clashes, CNBC cited North Carolina’s ability to maintain a bipartisan state government approach to business recruitment and retention with new Democrat Gov. Josh Stein and new Republican House speaker Destin Hall.
by CNBC live Thursday morning as part of the unveiling of N.C. returning to the top ranking.
“North Carolina has been on a roll for years now,” CNBC special correspondent Scott Cohn said.
“With its world-class workforce, a solid economy and a heritage of innovation, North Carolina keeps winning business and keeps winning our rankings.
“The state faces some formidable challenges right now, including the recovery from Hurricane Helene last fall. But if any state can do it, this one can.”
CNBC touted North Carolina’s performance in the 10 individual categories that included being third in economy, fourth in both workforce and in business friendliness, sixth in education and eighth in access to capital.
The other categories are: cost of doing business (ranked 21st); cost of living (23rd), infrastructure (11th); quality of life (29th); and technology and innovation (13th).
As has been the case in recent annual rankings, Triad economic-development projects from July 2024 to June 2025 were mentioned prominently, foremost JetZero’s $4.7 billion, 14,500-job commitment at Piedmont Triad International Airport.
On the downside, CNBC noted that “with a lack of basic worker protections, the state ranks 29th in quality of life, and its rapid growth is driving up costs.”
CNBC’s methodology grades states based on factors companies consider each year when making site selection decisions, as well as states’ economic development marketing pitches.
Stein said in a statement that regaining the top business climate ranking “confirms what we have known for a long time.”
“Our people, state’s business climate, top research universities and excellent community college system, infrastructure, and high quality of life help both companies and workers thrive.”
Stein praised former Gov. Roy Cooper and state legislators of both parties “who have helped North Carolina create a welcoming climate.”
Christopher Chung, chief executive of the Economic Development Partnership of N.C., said the CNBC methodology plays to North Carolina’s strengths in workforce, infrastructure, sites, industry ecosystems and innovation resources.
Chung said that North Carolina’s business-friendly environment “is especially valuable in times of economic uncertainty.”
Senate leader Phil Berger, R-Rockingham, said CNBC continues to recognize that “North Carolina offers unparalleled opportunities for businesses of all sizes.”
As has been the case with previous top rankings for North Carolina, Berger touted that the Republican-led General Assembly “has reshaped our state’s business climate by slashing our tax rates, reducing regulatory hurdles, and supporting world-class educational and job training programs.”
“Our community colleges and UNC system schools are vital partners in preparing our citizens to fill the thousands of jobs being created here and the existing ones.”
Michael Walden, a retired economics professor at N.C. State University, said that for N.C. to continue its lofty business climate ranking, it must continue to develop available project sites, such as the aerospace megasite at PTI, invest in workforce development with the community college system and get state elected officials on the same page regarding economic development.
“As long as these conditions continue, North Carolina will be a leader in business recruitment and economic development,” Walden said.
