Austin REAL ESTATE

Editor's Introduction: And The Winner Is—Texas

Posted By:Scott Cohn

Topics:Technology | Education | Employment | Commodities | Energy | Economy (U.S.) | Small Business

Sectors:Oil and Gas

Companies:Micron Technology Inc

By Scott Cohn Senior Correspondent, CNBC | 09 Jul 2008 | 04:42 PM ET

Welcome to our second annual look at America’s Top States for Business—a study that shows you can’t sit still if you want to stay competitive.

When we embarked on the 2008 edition, we wondered how much could possibly change in one year.  After all, the states that put it all together for business have it down to a science, and those that are gunning for the top spot couldn’t possibly make a difference in so short a time—could they?

It turns out they can. Our 2008 study is full of changes, most notably at the top. 

Hello Texas, Goodbye Virginia

Fueled by record high energy prices, Texas is America’s Top State for Business in 2008.  It is not a huge climb—Texas was number two last year. Just like last year, our study shows Texas has the best all-around economy in the nation.  But the Lone Star State made strides this year in Transportation—where it went from number five to number one—as well as Business Friendliness, Cost of Living and Quality of Life.

Last year’s Top State, Virginia, falls to number two in 2008.  It’s not that Virginia is no longer a great place to do business—it is.  But it is also not immune to an economic downturn.  Economic growth slowed markedly in the Old Dominion State, dropping it from the third best economy in the nation last year to number 17 in our study this year.