North Carolina ranked No. 1 for business climate, again

North Carolina kept the top spot in Site Selection magazine's ranking of states with the best business climate.

It was the fifth year in a row the magazine ranked North Carolina No. 1. Texas was No. 2, followed by Virginia, Ohio, Tennessee and South Carolina.

The ranking comes as North Carolina is about to lose a major economic development project: Dell announced it plans to close its Winston-Salem factory in January and lay off 900 workers.

Such lists, while routine for the Tar Heel state, are still helpful in luring new business and jobs by painting North Carolina in a positive light, economic development officials say.

The magazine cited the Tar Heel state's low taxes, work force, incentives and economic development strategy, low union participation, utility infrastructure, and legal and regulatory environment. The state's "high-caliber infrastructure of higher learning" helps build and retain a strong base of talent.

"The concentration of brainpower and R&D activity in North Carolina cuts across many disciplines, territories and institutions," said managing editor Adam Bruns, in a prepared statement.

The list is based on business activity and a survey of corporate site seekers across the country. In that survey, North Carolina ranked second, behind Texas.

To read the full report, visit Site Selection magazine here.