In today's competitive business landscape, companies face a myriad of challenges when selecting a location that offers not only economic opportunities but also a supportive environment for sustained growth. Rising costs, regulatory hurdles, and fierce competition for talent make this decision more critical than ever.

Many states struggle to provide a balanced approach, often excelling in one area while lacking in others, leading to dissatisfaction among businesses. High operational costs, inadequate infrastructure, and a shallow talent pool are common grievances that hinder businesses from reaching their full potential.

Ohio’s remarkable rise in CNBC’s Top States for Business 2024 rankings, moving from #12 in 2023 to #7 in 2024, showcases the state's comprehensive strategy to overcome these challenges through targeted investments in infrastructure, workforce development, and innovation. Here’s a deep dive into how Ohio is positioning itself as a premier business destination.

Ohio Advances to Seven in CNBC’s Top States for Business 2024 Report

Ohio’s significant climb in the rankings from #12 in 2023 to #7 in 2024 in CNBC's annual America's Top States for Business reflects the state’s ongoing commitment to fostering a thriving business environment. This achievement is a testament to Ohio's robust economic momentum, strategic investments, and dedicated efforts to enhance its business climate.

Governor Mike DeWine highlighted the state’s competitive advantages: “From Ohio’s inventory of construction-ready industrial sites to our reliable energy and water resources, there are so many compelling advantages to doing business in the heart of it all. Coupled with Ohio’s tax and regulatory policies that reduce risk, cut red tape, and accelerate access to domestic and international markets, we’re ensuring that businesses have everything they need for success.”

The CNBC study evaluated all 50 states across 128 metrics in ten categories of competitiveness. Ohio showed particular strength in:

• Infrastructure (#13)
• Cost of Doing Business (#2)
• Cost of Living (#4)
• Business Friendliness (improved from #40 to #24)

These metrics are not just numbers; they reflect Ohio’s positive migration trends, resulting in a net inbound population growth of 75,000, primarily driven by job-related moves. From 2019 to 2023, 304,000 people relocated to Ohio for employment reasons, enriching the state’s workforce with top STEM professionals and skilled trades workers.

A Multifaceted Approach to Economic Growth

Ohio’s rise in the rankings is underpinned by a series of strategic initiatives and investments across various sectors, driving its economic growth and enhancing its business environment.

1. Advanced Mobility and Manufacturing:

• Joby Aviation: Ohio's leadership in advanced mobility is showcased by Joby Aviation’s establishment of a 2,000-job eVTOL (electric vertical takeoff and landing) facility in Dayton. This facility is set to position Ohio at the forefront of next-generation transportation technology.
• Honda and LG Energy Solution: The $4.2 billion investment in a new battery center underscores Ohio’s pivotal role in the automotive industry’s transition to electric vehicles.

2. Technology and Innovation:

• Intel: Ohio’s tech landscape is being transformed by Intel’s $20 billion investment in semiconductor chip fabs, which is expected to create thousands of high-tech jobs and drive innovation in the region.
• Amazon Web Services: The $7.8 billion data center investment by Amazon Web Services highlights Ohio’s attractiveness as a hub for cloud computing and data management.

3. Business Support and Infrastructure:

• Small Business Initiatives: Ohio is not just focusing on attracting large corporations. Initiatives to support small businesses and revitalize downtown business districts are crucial components of the state’s economic strategy.
• Infrastructure Development: Continued investments in infrastructure, including airport facilities and service routes, ensure that Ohio remains well-connected and accessible for businesses and residents alike.

Quality of Life and Workforce Development

Lt. Governor Jon Husted noted, “Ohio's rise in numerous national rankings demonstrates why Ohio is the heart of it all. It’s not just our business-friendly policies but also our exceptional quality of life, affordable cost of living, and the opportunities we offer for all skill levels.”

Affordability and Quality of Life:

Ohio offers a compelling combination of affordability and high quality of life. Unlike many coastal states with high living costs, Ohio boasts a cost of living significantly below the national average, making homeownership and comfortable living accessible to many. Affordable housing, lower living expenses, and reasonable healthcare costs contribute to a financially manageable lifestyle.

Ohio’s diverse living options, from vibrant urban centers like Columbus, Cleveland, and Cincinnati to peaceful rural communities, cater to varied preferences. These cities offer rich cultural scenes, top-notch dining, and entertainment, while rural areas provide close-knit communities and scenic landscapes. Abundant parks and recreational areas, including Hocking Hills State Park and Lake Erie’s shores, offer residents ample outdoor activities.

The state’s investment in public services, particularly in education and healthcare, enhances living standards. Ohio’s cultural and historical attractions, such as the Rock and Roll Hall of Fame and the Cincinnati Zoo, further enrich the living experience, making it a desirable place for families. This blend of affordability and quality of life not only attracts businesses but also retains a satisfied and productive workforce.

Workforce Development:

Ohio’s economic strategy prioritizes workforce development, ensuring businesses have access to a diverse and skilled talent pool. The state’s robust education system, featuring institutions like Ohio State University and Case Western Reserve University, produces graduates well-prepared for various fields, especially in STEM disciplines. Additionally, a network of community colleges and vocational schools offers specialized training programs aligned with industry needs.

Initiatives like TechCred and OhioMeansJobs provide funding and resources for upskilling and reskilling workers, bridging the skills gap and ensuring a competitive labor force. Industry-specific workforce development, particularly in advanced manufacturing, healthcare, and technology, further supports the state’s economic growth.

Ohio’s commitment to apprenticeships and internships offers hands-on experience and a direct path to employment, strengthening connections between educational institutions and employers. This proactive approach to workforce development ensures a highly skilled and adaptable workforce, creating a favorable environment for businesses and residents alike.

Economic Impact and Future Outlook

Ohio’s improved ranking in CNBC’s Top States for Business is a reflection of its strategic approach to economic development. This includes fostering an ecosystem that supports innovation, nurturing talent, and offering businesses a wide range of ready industrial sites and vibrant communities to choose from.

J.P. Nauseef, President and CEO of JobsOhio, commented, “Ohio's climb in the CNBC rankings is a reflection of our entire state’s strategic approach to economic development. We're building an ecosystem that supports innovation, nurtures talent, expands airport facilities and service routes, and offers businesses a wide range of ready industrial sites, spec buildings, and vibrant communities to choose from.”

Collaborative Success:

Ohio’s success is the result of collaborative efforts by the DeWine-Husted Administration, the Ohio Legislature, and a statewide network of economic development partners. This unified approach has positioned Ohio as a beacon for businesses looking to thrive.

Positioned for the Future:

Ohio is set to further strengthen its leadership in advanced manufacturing, technology, and sustainable industries. Continued investments in workforce development, site readiness, and Innovation Districts are cementing Ohio’s status as the heart of opportunity in America.

Ohio’s strategic growth and innovation efforts are clearly paying off, making it a top choice for businesses looking to thrive in a supportive and dynamic environment.

Sources:

• CNBC’s Top States for Business 2024 Report
• Statements from Governor Mike DeWine and Lt. Governor Jon Husted
• Economic development data from JobsOhio

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