Georgia Tops Business Rankings for 13th Consecutive Year
Overview:
Area Development magazine has ranked Georgia as the top state for doing business for the 13th consecutive year in its 2026 survey. Tennessee secured the third spot, trailing behind Texas.
Comments from Local Leaders:
Charles Wood, CEO of the Chattanooga Area Chamber of Commerce, highlighted the interdependence of the Chattanooga area and Georgia. He noted the talent pipeline created by workforce programs in Dalton and Catoosa County enhances economic activity for both regions, stating, “It’s one economy. We rise and fall together.”
Ranking Methodology:
The magazine’s rankings are based on input from 50 site consultants across various industries, who evaluated states on 20 critical categories affecting business location and investment decisions.
Key Rankings for Georgia and Tennessee:
| Category | Georgia | Tennessee |
|---|---|---|
| Engineering talent/cluster strength | 4 | NA |
| Skilled manufacturing labor | 1 | 7 |
| Innovation/research ecosystem | 6 | NA |
| Workforce training | 2 | 7 |
| Labor cost competitiveness | 10 | 5 |
| Water/wastewater capacity | 10 | NA |
| Industrial sites/buildings | 2 | 3 |
| Site readiness | 5 | 1 |
| Energy availability/grid capacity | 2 | 3 |
| Logistics/transportation infrastructure | 2 | 3 |
| Responsive state/local government | 1 | 3 |
| Speed to market | 1 | 3 |
| Business incentives | 2 | 5 |
| Permitting predictability | 2 | 3 |
| Regulatory environment | 2 | 5 |
| Overall cost of doing business | 6 | 5 |
| Property tax environment | NA | 2 |
| Corporate tax structure | NA | 5 |
| Energy costs | 5 | 3 |
| Climate risk/resilience | 5 | 6 |
Insights from Area Development Magazine:
The magazine emphasized that while states may lead in different areas, their unique strengths contribute to overall business attractiveness. For Georgia, the integration of workforce, training, infrastructure, utilities, and public agencies forms a cohesive business environment that instills confidence in companies throughout the site selection process.
Conclusion:
Wood reflected on the importance of local investment and the need for ongoing development to maintain competitive advantages. He cited examples of recent local investments, such as enhancements to the Chattanooga Airport, and praised educational institutions for their robust ties to the local industry. He concluded with a reminder that economic development is an ongoing effort, not a destination.
