Virginia topped Forbes’ 2008 ranking of the nation’s most business-friendly states, marking the state’s third straight year at No. 1.
Maryland was ranked 14th, down from 12th last year. The District of Columbia was not included in the study. The report, released Thursday, ranks states based on their business costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life.
Though Virginia maintained its grasp on the top spot, its higher business costs and No. 26 ranking in future growth prospects — down from eighth last year — narrowed the gap between Virginia and second-ranked Utah, the report said.
“It’s natural and it’s probably healthy to see some slowdown so that infrastructure can catch up with … [a] growing industrial base,” said Prince William County Department of Economic Development spokeswoman Alana King.
Virginia was ranked first in regulatory environment, buoyed by the second-best incentives programs in the country and the fifth-best tort atmosphere.
“To have that three years in a row is a big deal, and it is a great tribute to the way we work to try to have the state’s business climate be friendly,” said Gov. Tim Kaine on Thursday morning on a Richmond radio talk show. “I’m really excited about it. … We’re going to do very, very well going forward with the economy here.”
The ranking will be helpful in attracting new suppliers for foreign manufacturers that recently expanded into Virginia, he added. London’s Rolls-Royce added an aero-engine facility in Prince George last year, and the Swedish manufacturer IKEA opened a Danville center in May.
“To an American business, they kind of know what they think about Virginia, so if they see that Forbes ranking, that’s a plus,” he said. “But … when you talk to foreign businesses that want to invest, something like ‘Forbes’ most business-friendly state’ really means a lot.”
