Please ensure Javascript is enabled for purposes of website accessibility
Home / News / Forbes: N.Y. ranks 23rd in overall business climate

Forbes: N.Y. ranks 23rd in overall business climate

New York State ranked 23rd in terms of overall business climate, but 46th in terms of business costs, in an annual list Forbes magazine released Wednesday that placed Utah at the top and Maine at the bottom.

The publication put New York right behind South Carolina – a rival in the South that has attracted some businesses and many residents from the state – and just ahead of Tennessee and Arizona.

New York beat out Florida, which ranked 27; New Jersey, which ranked 36; and California, at 41 in part because it placed 43rd in terms of business costs.

Utah ranked No. 1 as the best place for business for the third straight year, followed by Virginia, North Dakota, North Carolina and Colorado, another state that has attracted New York businesses.

Forbes ranked Maine as the worst for the third year in a row.

Forbes said its “Best States for Business” ranking measures six categories for businesses, including costs (the most heavily weighted component), labor supply, regulatory environment, current economic climate, growth prospects and quality of life.

New York fell one slot from 22nd last year, although it remained at 46 in terms of business costs, the main reason it didn’t snag a higher spot. Forbes said the average cost of doing business in New York was 8.7 percent above the national average.

Some of New York’s northeastern neighbors are more expensive, according to the magazine. Forbes said Connecticut ranked 47th in terms of cost of business, New Jersey ranked 48, Massachusetts ranked 49 and Hawaii ranked 50.

The Empire State ranked 11th in terms of quality of life, 12 in economic climate, 13 in growth prospects and 24 in regulatory environment. But it came in 32nd in terms of labor supply, despite having a massive economy.

Forbes said the state’s $1.2 trillion dollar economy would make it the 14th largest nation after Spain, while states with far smaller economies took many of the top slots.

“The business climate of the state is one of extremes,” Forbes wrote in its summary of New York, “as it has taxes, union workforce and red tape that are among the highest of any state.”

The magazine (which is based in New York) in its description of the state also pointed to assets such as “an educated workforce, huge VC investment, significant cultural and recreation resources and the headquarters of hundreds of big companies.”

Forbes said Utah’s cost of doing business is 9.5 percent below the national average and utility costs are 29 percent below the national average. The magazine ranked Utah fourth in labor supply, sixth in regulatory environment and economic climate, ninth in quality of life and 12 in business costs.

“The state has a pro-business climate,” Forbes wrote in its summary of Utah, noting the state’s economy has expanded at 2.3 percent a year over the past five years, the fifth biggest increase in the nation.