Tennessee hits high mark in CNBC business ranking
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Tennessee vaulted to No. 3 in CNBC's 2023 Top State for Business, which was released this week.
- The Volunteer State jumped up three spots since 2022.
Why it matters: The ranking is a bragging point for politicians as well as economic developers, who are already taking a victory lap. Responses from Gov. Bill Lee and the state's Department of Economic and Community Development suggest they will double down on the state's aggressive recruitment efforts.
What's happening: Tennessee has emerged as a leader in the manufacturing of electric vehicles and the technology that makes them run.
- Major facilities are coming online in Clarksville, Lebanon and Spring Hill — not to mention the massive Ford "megasite" under construction in West Tennessee.
- Meanwhile, Middle Tennessee will be the epicenter of the eastward expansion of burger palace In-N-Out.
Zoom out: The rankings mirror recent news of the South's growing economic might. The only states to best Tennessee were North Carolina and Virginia.
Between the lines: The rankings gave high marks to Tennessee's infrastructure, tax rates and economy. The state's growing pool of educated workers also gave it a boost.
Yes, but: CNBC dinged Tennessee for "raging culture wars" that put it near the bottom of the list when it comes to quality of life, health and inclusion.
What we're watching: The Tennessee secretary of state's office reported new records for business formations and renewals during the first quarter of 2023.
- The office said those numbers tend to drive job growth and state revenue.