Texas wins Minnesota in CNBC's 'Top States for Business'

Photo byIdeogram AI

Minnesota's impressive run in CNBC’s annual "America's Top States for Business" has hit a bump. In the 2024 rankings, the Land of 10,000 Lakes dropped from its Top 5 position last year, landing at 6th place. Texas, which fell out of the Top 5 in 2023, has bounced back to snag the third spot this year.

Minnesota, which saw a notable rise from 9th to 5th place in 2023, now finds itself edged out by Texas, which took the top spot in the workforce category this year. Despite this drop, Minnesota scored high in other areas, especially quality of life, where it ranked 4th, and infrastructure, where it came in 5th. This high infrastructure ranking is largely attributed to Minnesota's $2.5 billion effort to overhaul bridges after the I-35W collapse.

CNBC highlighted that Minnesota's roads and bridges are among the best in the nation, with recent investments including a $1.3 billion transportation budget signed by Gov. Tim Walz for maintaining infrastructure and boosting public transit.

However, Minnesota struggled with the cost of doing business, landing at 35th in this category. Meanwhile, Texas, despite its previous low ranking in the “Life, Health & Inclusion” category, made a strong comeback, thanks to its top rankings in technology and innovation, and a solid second place in the economy category.

Here’s the rundown of the Top 5 states for business in 2024:

1. Virginia
2. North Carolina
3. Texas
4. Georgia
5. Florida

So, while Minnesota shines in quality of life and infrastructure, Texas has made significant strides, especially in the economy and workforce. It’s a reminder that rankings can shift quickly based on various factors, and states are continuously evolving their strategies to attract business and talent.

See full ranking list here.