North Dakota: The No. 3 Business State

By Staff | September 06, 2013

North Dakota is the third best state in the U.S. in which to do business. The American Economic Development Institute, in conjunction with Pollina Corp. Real Estate Inc. and CNBC LLC, has each released reports ranking every state’s business climate in 2013. Both reports ranked N.D. third.

CNBC’s report, “America’s Top States For Business 2013,” used 10 broad categories to create its rankings. The categories were then assigned a point total based on the frequency each state cited those categorical metrics, such as quality of life, innovation or access to capital, in-state-based economic development marketing materials. “That way,” CNBC said, “our study ranks the states based on the criteria they use to sell themselves.” North Dakota’s highest rankings were in the categories of economy and infrastructure.

According to CNBC’s explanation of its category metrics, each state’s economy was ranked based on credit ratings and outlook, revenues compared to budget projections and the number of major corporations located in the state. For its infrastructure and transportation category, the study looked at the quantity of goods shipped by air, waterways, roads or rail, the availability of air travel, quality of roads, and work commute time. The cost of doing business followed by each state’s economy were the top two most heavily weighted categories in the report.

Along with CNBC’s report, the state was also ranked third in Pollina’s, “Top 10 Pro-Business States,” a nationally recognized report. The report used 32 factors related to each state’s handling of taxes to energy costs. Regarding its list, Pollina Corp said, “All 10 top-ranked states should be held up as models for the other 40 states and the federal government.”