Virginia Climbs to Third Spot in CNBC ‘Top States for Business’ Rankings

Virginia shifted from fourth to third place in CNBC’s annual “top states for business” rankings, Gov. Abigail Spanberger announced Thursday.

States that achieve the top bracket are considered the best in the nation for attracting or retaining companies and supporting regional economies.

“I think the fact that we are on the rise to number three means that we’re moving in the right direction,” Spanberger said in a phone interview Thursday afternoon.

“It isn’t just that the cost of doing business has improved; it’s that the cost of living has improved,” she said, citing a slate of new laws aimed at addressing housing, healthcare and energy affordability she signed this year.

Slate of new Virginia laws address health care and housing affordability

These factors, she emphasized, can make Virginia more attractive to employers and workers considering a move to the state and give them reasons to stay once here.

Virginia also ranked second in the infrastructure category, reflecting work that has spanned gubernatorial administrations.

Spanberger noted the recently-completed improvements to the Port of Virginia, a $450 million dredging project which began in 2019 under Gov. Ralph Northam. The project deepened Virginia’s port, making it more accessible for commercial shipping.

The state has also allocated funding for upgrades to Southwest Virginia’s Interstate 81 in recent years, a critical artery for ground shipments.

This year, CNBC also factored ease of permitting into its rankings. Spanberger said Virginia has “established” itself with a business reputation for speed to market.

Gov. Glenn Youngkin championed investment in the Virginia Business Ready Sites Program and celebrated manufacturing deals at a megasite near Danville during his tenure. Spanberger said she and lawmakers invested $50 million in the program this year.

Virginia had remained consistently on top of the rankings since 2018 before falling to fourth in last summer’s report under Youngkin’s tenure. The rise over the past year, however, may also reflect deals Youngkin secured before leaving office, like pharmaceutical companies Eli Lilly and AstraZeneca facilities setting up shop in the state and creating jobs, along with Spanberger’s first half-year as the new governor.

Spanberger said among the bills she signed into law this year were ones allocating about $5 billion in new business investment around the state and another creating InternshipsVA, a statewide program that helps connect employers and college students for paid internships, and potentially stock Virginia’s talent pipeline.

The state-funded program offers grants for small and mid-size businesses to provide a 50% match for undergraduate students’ wages.

Spanberger added that it also offers more opportunities for students and younger professionals.

“There are many students or new graduates who can’t afford to do an internship and go unpaid,” she said.

Since housing and childcare directly impact employment, Spanberger touted a Hitachi investment in Halifax County as a potential model for blending new job growth while addressing housing strain.

State and local officials have coordinated with the energy company on plans to build new housing near its planned South Boston facilities and a childcare center to support workers.

“It’s in early stages,” the governor said. “Ideally, it can be a model for what we do in other places.”

The CNBC ranking can serve as a progress report card for governors and lawmakers while also helping states shape new business goals.

Spanberger said her administration looks forward to working with legislators to expand the state’s latest economic development and quality-of-life measures. Another aim, she added, is to get Virginia back to the number one spot on the list, where it has ranked previously.

“We’ve medaled,” she said in an analogy to Olympic sports. “We’re still not at the top of the pillars.”

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