Virginia falls to No. 7 on Forbes.com business list
Virginia fell three spots on Forbes.com’s annual Best States for Business ranking to No. 7.
The business news website cited Virginia’s “higher business costs” and “declining economic climate” as the reason for the drop.
The ranking scores states in six categories. Virginia ranked at No. 1 for its regulatory environment because of “its strong incentive offerings and business-friendly government policies.” It also ranked No. 2 in labor supply and No. 5 in the quality of life category.
However, Virginia, with its economy heavily influenced by the federal government, is facing difficulties through federal sequestration cuts. The state ranked No. 19 in growth prospects, No. 30 in business costs and No. 32 in economic climate.
When Forbes.com launched the ranking in 2006, Virginia was ranked the No. 1 state four years in a row. In fact, between 2006 and 2013, the commonwealth ranked in one of the top two spots.
Utah ranked No. 1 on the list this year, followed by North Carolina, Nebraska, North Dakota, Colorado, Texas and then Virginia.