CEO Business Rankings Texas Takes the Top Spot, California at the Bottom

The 2021 survey reports that states that remain largely open in the face of an epidemic, or work closely with businesses on epidemic preparedness, fared better than states with closure policies.

Chief Executive Officer conducts an annual survey of chief executives across the United States, and the business ranking list depends entirely on the votes of participating chief executives. The survey questionnaire covers: state tax and regulatory policies favorable to business development; workforce quality and characteristics; and quality of living environment. In terms of business location, CEOs valued tax policies first (37 percent), followed by regulatory environment (35 percent) and talent availability (25 percent).

Texas topped the list for 17 years

Many did not originally look at Texas, as an epidemic that led to a lockdown that kept millions of drivers off the road for months has hit the state’s oil and gas industry hard. In addition, the February 2021 winter storm caused widespread water and power outages in Texas, and the Biden administration’s attitude toward immigration has forced Texas to confront a growing illegal immigration problem.

In response to the winter storm, Texas Governor Greg Abbott told a reporter for CEO, “It doesn’t affect Texas’ ranking at all,” but most importantly the way they respond.

Glenn Hamer, president of the Texas Association of Business, also said, “Mother Nature can humble any state or region, but the fundamental aspects of the Texas economy are as strong as ever.”

Florida opens up as a winner

As the epidemic hits all sides, Florida’s openness has allowed the regional economy to grow, making Florida a winner in the epidemic.

Jonathan Chariff, CEO of Southern Automotive Group, said it was critical for Florida to be open under the epidemic, which led to the decision to invest about $40 million in a new BMW and Honda dealership in Miami.

In addition to Florida, South Dakota allowed businesses to continue operating during the epidemic, jumping the state to 12th place; Rhode Island, which was more open than its neighbors, moved from 40th to 37th place.

California’s harsh environment sees more out-migration of businesses

For California’s 50th place ranking, the report cites “high costs as a deterrent despite strong human capital” and a home-based lockdown policy during the epidemic. Other states at the bottom of the list include New York at 49th, Illinois at 48th, New Jersey at 47th, and Washington and Massachusetts at 46th and 45th, respectively. Some of these Democrat-controlled states remain in epidemic lockdown or partial lockdown, The CEO reports.

In 2020, Tesla founder Elon Musk declared he was fed up with California’s blockade policy and businesses moved out of the state to Austin, Texas, costing the state more than 10,000 jobs.

The California Recall Gavin 2020 campaign ended in March with 2.1 million signatures to recall Democratic Governor Gavin Newsom.

California is currently experiencing a more than 10 percent increase in daily goods, high unemployment, and has decided not to approve new oil permits after 2024 and to stop all oil extraction in the state by 2045.