Nebraska Achieves its Highest Business Ranking
The 2016 year will end on a high note for Lincoln and the State of Nebraska. Forbes Magazine gave the state its highest ranking ever – No. 3 – for Best States for Business.
In achieving the ranking, Forbes cited Nebraska’s low business costs and business-friendly regulatory climate as the biggest contributors to the rise in rankings – and we were one of the biggest movers on the list. The state jumped four spots, moving up from seventh last year. Our previous high mark was sixth in both 2012 and 2013.
According the magazine, the state’s climb in is due in part to the addition of two new factors in regulatory scoring: fiscal health and legal climate.
Nebraska ranked fourth among states in the Mercatus Center’s “Ranking the States by Fiscal Conditions” report thanks to the lowest ratio of long-term liabilities to assets of any state. Forbes’ analytics show the state has low levels of unfunded pension liabilities and government revenues exceed expenses.
Nebraska also fared well in the Institute for Legal Reform’s “Ranking the States” report, which measures how reasonable and balanced the states’ tort liability systems are perceived by U.S. businesses. Only Delaware and Vermont posted a higher ranking than Nebraska.
Here’s how Nebraska fared in other contributing factors:
• #9 in Business Climate • #19 in Labor Supply
• #3 in Regulatory Environment • #13 in Economic Climate
• #30 in Growth Prospects • #7 in Quality of Life
The magazine’s 10th annual Best States ranking factored in 40 data points across six main areas: business costs, labor supply, regulatory environment, economic climate, growth prospects and quality of life. Business costs, which include labor, energy and taxes, are weighted the most heavily. Forbes also added several new criteria this year, including the number of millennials as a percent of the population, relying on 14 data sources; with research firm Moody’s Analytics as the most-utilized resource.
What does all of this mean for us?
The ranking is an incredible recognition from a very credible national source. There is no doubt it will play in to our business recruitment efforts as more and more outside companies look to expand their operations in states and cities with pro-business climates.
Nebraskans should also be encouraged by the company we are keeping in the Top 10. We ranked behind only Utah and North Carolina.
Utah ranked as one of the top job growth areas in an earlier Forbes article, buoyed by an explosion of Tech sector jobs in and around Salt Lake (Nebraska also ranked 3rd in that report). North Carolina is home to one of the largest clusters of University Research and Development corridors in the nation (exactly what Nebraska’s Innovation Campus was modeled after). The rankings also show us ahead of our neighboring states North Dakota (#4), Colorado (#5), and South Dakota (#9). Again, this should be a boost to anyone considering expanding their operation in the Midwest.
However, the magazine did touch on one factor the Lincoln Chamber of Commerce and the Lincoln Partnership for Economic Development are working the hardest to improve: our workforce availability.
Forbes cites our 2.6% unemployment rate as both a positive and a potential hindering factor.
We need to grow our population and skilled workforce if we are to achieve even higher rankings.
You have heard me say it on the radio, at ribbon cuttings, and in person: “There is no better time to be in Lincoln.” The latest Forbes Rankings shows it’s not just rhetoric.
by Wendy Birdsall, President
The Chamber’s mission is to improve the lives of Lincoln residents by providing increased economic opportunity and can only be accomplished together. For more information, please contact Jaime Henning at jaimehenning@lcoc.com.