Virginia passes North Carolina for top spot on CNBC's top states for business list

According to a new report, North Carolina lost its top spot as the best state for business.

CNBC ranked Virginia as the top state for business in 2024.

The annual report ranked the states based on the attributes they use to sell themselves. It looked at 128 metrics in 10 broad categories of competitiveness, including workforce, quality of life, cost of doing business, and technology and innovation.

A professor at UNC's Kenan Flagler Business School, Gerald Cohen, reviewed the data and said the Tar Heel state dropped because the study focused heavily on infrastructure.

On the 50-state list, for infrastructure, North Carolina Carolina ranked number 20, Virginia number 3, and Texas, which ranked third overall, ranked 26.

The ranking has less to do with recent developments on companies like VinFast and Apply delaying their campuses in the Triangle, Cohen said.

In the report, North Carolina ranked 11 in technology and innovation, but 3 in workforce, 4 in economy, and 2 in business friendliness.

"(Number 2) is still a high ranking," he said. "We have this workforce that continues to be strong, looking at migration data we continue to attract people to the state."

Cohen believes North Carolina is working to improve infrastructure.

He also feels that the state should broadly invest in schools from pre-K to community colleges.

Here are CNBC's top states for business in 2024:

1. Virginia

2. North Carolina

3. Texas

4. Georgia

5. Florida

6. Minnesota

7. Ohio

8. Tennessee

9. Michigan

10. Washington