CNBC/KTAR
Minnesota is America’s Top State for Business in 2015, reaching the pinnacle of success by way of a much different route than our eight previous winners.
Minnesota scores 1,584 out of a possible 2,500 points, ranking in the top half for all but two of our 10 categories of competitiveness. But what may be most instructive are the categories where Minnesota does not do well. Both involve cost. Indeed, the birthplace of Spam, Scotch Tape and the supercomputer marks a new first this year. Never since we began rating the states in 2007 has a high-tax, high-wage, union-friendly state made it to the top of our rankings. But Minnesota does so well in so many other areas—like education and quality of life—that its cost disadvantages fade away.
The biggest drop this year is Arizona, which plunges 21 spots to 34th place. The biggest factor is Arizona’s economy, which declines to 36th place from 15th a year ago. While the state is still adding jobs, overall economic growth has slowed considerably to 1.4 percent last year, or roughly half the rate two years ago. That has exacerbated a $1 billion budget shortfall that necessitated painful cuts earlier this year. Two counties have gone to the Arizona Supreme Court to block some of the cuts. Whatever the outcome, the uncertainty is no help to the state economy—or to businesses.
“The overall economy continues to float along as we have been reliant on consumption-based industries, which is the term for growth, to drive the economy,” said Chris Camacho, president of the Greater Phoenix Economic Council
But Camacho insists that things are looking up in Arizona. He said that with expected job growth in health care and technology, the future looks good in Arizona.
