What Makes a State Business-Friendly? A Closer Look at Policy and Incentives

Each year, CNBC evaluates all 50 states to determine which state offers the best climate for business. In its 2025 rankings, North Carolina reclaimed the title as the top state for business, marking its third win in the past four years. This recognition reflects the state’s continued focus on economic competitiveness and long-term growth strategy. Beyond the headline, what does it really mean to be “business-friendly”? What should companies look for when expanding, relocating or investing in a new region?

Take a closer look at what sets the top-ranked states apart and what your business can gain by choosing the right environment.

Smart, Targeted Incentives That Actually Deliver

For manufacturers and other capital-intensive businesses, state-level incentives can play a critical role in reducing the cost and risk of expansion. However, not all incentive programs are created equal. The most effective states offer performance-based incentives designed to attract long-term investment in priority sectors like advanced manufacturing, clean energy and logistics.

In North Carolina, the state’s 2.25% corporate tax rate is the lowest in the country and has continue to lower each year. The state’s business-friendly approach is delivering measurable results. In the first half of 2025, companies across multiple industries announced over 23,000 new jobs and $18.9 billion in investment in North Carolina. Businesses including Genentech, Amazon Web Services, JetZero and Citigroup Technology have chosen to expand or relocate here. Notably, JetZero’s June announcement, the largest job creation announcement in the state’s history, is a standout example.

What makes a difference:

• Predictable, transparent incentives that reduce uncertainty in long-term planning
• Job creation and capital investment grants tailored to manufacturing and industrial operations
• Programs focused on infrastructure, workforce training and supply chain development

A Regulatory Environment That Encourages, Not Hinders

Many companies operate in highly regulated environments, and business-friendly states understand that clarity is just as important as flexibility. North Carolina continues to stand out for its stable, bipartisan regulatory climate and responsive state agencies that work in partnership with business leaders.

This consistency reduces compliance risk and allows companies to confidently plan multimillion-dollar investments in facilities, equipment and workforce.

What to look for:

• Clear tax policies and predictable permitting processes
• Agency partnerships that streamline environmental and zoning approvals
• Coordinated project support, where local economic developers work alongside state agencies to fast-track zoning, infrastructure and workforce training — examples include recent large-scale projects from Toyota Battery Manufacturing in Randolph County and VinFast in Chatham County that moved from announcement to groundbreaking in record time.

Workforce Development That Aligns with Employer Needs

Labor availability is one of the top concerns for industry leaders in manufacturing and commercial sectors and one of the biggest differentiators in CNBC’s state rankings. Top-ranking states are investing in technical education, community college programs and apprenticeship models that directly align with employer demand.

North Carolina’s community college system has become a model for workforce development, offering tailored training programs for industries such as aerospace, life sciences, automotive and precision manufacturing.

The state’s higher education network adds even more depth to its talent pipeline:

• Duke University ranks among the top 10 national universities (U.S. News & World Report) and is a leader in biomedical research and health sciences.
• University of North Carolina at Chapel Hill is consistently ranked as one of the top five public universities in the nation.
• North Carolina State University is a top engineering and textiles research powerhouse, ranking in the top 15 for engineering among public institutions.
• Wake Forest University ranks in the top 30 national universities and is known for strong business and law programs.

Together, these institutions produce a steady stream of graduates in STEM, health care and skilled trades, filling critical roles in advanced manufacturing plants, biotech labs and corporate headquarters across the state.

The state is also seeing strong population growth, with more than 100,000 people moving to North Carolina in a single year, many drawn by the quality jobs and a lower cost of living. This includes a significant influx of college-educated workers, adding to the state’s already strong labor pool. For companies in need of skilled talent, North Carolina offers not only a robust workforce pipeline, but also the migration trends and economic momentum to support long-term growth.

Hallmarks of a strong workforce pipeline include:

• Regional training centers focused on hands-on, job-ready skills
• Partnerships with local businesses to shape curriculum and outcomes
• Incentives for on-the-job training and apprenticeship programs

Strategic Infrastructure That Supports Business Expansion

Logistics, utilities and digital infrastructure are critical to the success of any commercial operation. States that rank highly for business climate tend to invest heavily in multimodal infrastructure, ensuring that manufacturers can move raw materials in, and finished goods out, efficiently.

North Carolina’s competitive advantage lies in its network of ports, railways and highways, as well as its commitment to energy infrastructure that supports both traditional industrial loads and emerging technologies.

Key factors for businesses:

• Proximity to highways, ports and rail hubs for supply chain efficiency
• Access to reliable, cost-competitive energy sources
• Digital infrastructure to support automation and Industry 4.0 adoption

A Statewide Commitment to Economic Partnership

Finally, states that rise to the top often share a more intangible, but critical, factor: a cultural commitment to business success. Whether it’s through regional development councils, local chambers or business advocacy groups, these ecosystems are collaborative, forward-thinking and focused on long-term outcomes.

With these incentives in mind, it’s worth noting that North Carolina’s economy grew by 3.7% in 2024, outpacing the U.S. average and adding roughly $23 billion to the state’s GDP, which reached an all-time high of about $662 billion. This growth placed North Carolina among the top five fastest-growing state economies in the nation.

Additionally, venture capital investment nearly doubled over the same period, reaching $3.1 billion. North Carolina’s success is no accident. It’s the result of decades of coordinated effort between government, education and private industry.

Making the Most of a Business-Friendly State

North Carolina’s top ranking is a signal that the state is a positive location for investment, expansion and long-term business success. From incentive structures that reward job creation to infrastructure that supports complex supply chains, North Carolina offers the building blocks for sustainable growth.

But success doesn’t come from location alone. Companies still need the right strategies to navigate regulatory requirements, maximize incentives and build a resilient operational footprint. Weaver helps manufacturers and commercial businesses in evaluating opportunities, reducing risk and planning for what’s next.

Let’s talk about how we can support your next move. Contact us.

©2025