How good is Maryland for business? According to a new study from CNBC published Tuesday, the state is among the bottom half of all 50 states for business. The state ranked 31st on CNBC’s 2018 list of the top states for business.
Gov. Larry Hogan’s motto has been “Maryland Open For Business,” which he touted Tuesday and a state business summit. “It actually defines our mission, and it’s why I ran for governor. We said we were going to help our businesses grow, put more Marylanders to work, and turn our economy around, and we have been doing exactly what we said we would do,” Hogan said. “As a result we had the best year for business in Maryland in more than a decade and the best year for job growth in 15 years.”
But Facebook commenter, disagreed, asking, “Then why did Maryland fall six spots on CNBC’s “Best States For Business” list this year alone? Under your leadership, Maryland is now only the 31st best state for business in the country.”
The study scores all 50 states on 64 metrics across 10 categories, CNBC explains in its methodology.
“Our study is not an opinion survey; we measure actual performance by the states,” the network said of its methodology. CNBC says the study grades each state based on the qualities they tout as good for attracting business. Each category is given a weight based on how much the states cite it as a factor for attracting business; the more a category is cited, the higher the weight, CNBC says. (You can read more about the methodology and the sources used in the study here.)
Here are the points Maryland received for every category (the categories are presented from highest to lowest importance):
Cost of doing business: 99/350
Quality of life: 152/300
Technology and Innovation: 155/225
Business Friendliness: 64/150
Access to Capital: 70/100
Cost of Living: 7/50
Maryland received “F” grades for its high cost of living, and “D” grades for infrastructure, cost of doing business and quality of life. On the flip side it earned “A” grades for workforce and technology/innovation.
Texas claimed the top spot as the best state for business in 2018. The state also bagged the top spots in five of the 10 categories states were graded for. CNBC notes that the state has never finished outside the top five since the rankings were first published.
“The state prides itself on business-friendly regulations, smart spending and low taxes,” CNBC writes. “Texas levies no individual income tax and no corporate tax.”
Washington, the No.1 state in 2017 slipped to No. 2 this year. CNBC said the state had the fastest growing economy in 2017 but weaknesses like high costs and poor infrastructure make it “no match for a resurgent Texas.” Utah, the No. 3 state, has a thriving technology industry and saw the highest job increase in the nation in 2017, according to CNBC.
Below are the states that rounded out the top 10: