News Summary
Virginia has fallen to fourth place in CNBC’s annual rankings of America’s Top States for Business for 2025. North Carolina takes the lead, showcasing the competitive business environment. Virginia’s decline reflects economic challenges despite strong performances in education and infrastructure. State officials face a wake-up call to improve Virginia’s business appeal as competition intensifies.
Wilmington, North Carolina – Virginia Drops to Fourth in CNBC’s Business Rankings for 2025
Virginia has fallen from its position as the top state for business to fourth place in CNBC’s annual “America’s Top States for Business” ranking for 2025. This significant drop marks Virginia’s lowest ranking since 2018, a decline that reflects challenges the state faces as a business destination. North Carolina has now seized the lead, outperforming Virginia, which had edged it out the previous year.
The rankings were officially announced from aboard the historic Battleship North Carolina in Wilmington, where state leaders and business experts gathered to discuss the competitive environment. Virginia scored a total of 1,578 out of a possible 2,500 points based on a comprehensive evaluation that considered 135 metrics across ten categories of competitiveness.
In these rankings, Virginia maintained strong performances in several categories. It ranked first in education and second in infrastructure, vital factors that contribute to a state’s business appeal. Furthermore, Virginia was noted for its quality of life, technology and innovation, business friendliness, and access to capital, all of which positioned it favorably in the eyes of businesses looking to relocate or invest.
However, significant challenges have impacted Virginia’s economy. The state fell to 14th place in the economy category, a decline attributed to recent budget cuts and the effects of tariffs. This downturn has led to concerns about Virginia’s overall attractiveness as a business hub compared to other states.
Aside from Virginia, the top five states in the CNBC rankings include North Carolina (1), Texas (2), Florida (3), Virginia (4), and Ohio (5). This year’s ranking illustrates a competitive landscape where North Carolina’s growth strategy has paid off, helping it reclaim the top position after being edged out by Virginia in 2024.
Virginia has been recognized as the premier place for business several times over the years. Since the inception of the rankings in 2007, it has claimed the number one spot a total of six times, a reflection of its previous economic strength and favorable business conditions.
As the business environment evolves, Virginia will need to address its challenges, particularly regarding its economic outlook, to reclaim its status as a sought-after business destination. The full ranking of all 50 states can be accessed at topstates.cnbc.com, offering further insights into how states are performing in key competitiveness categories.
This drop in Virginia’s business ranking serves as a wake-up call for state officials and economic strategists to identify areas for improvement and to implement strategies that will bolster the business environment moving forward. As the competition from states like North Carolina continues to intensify, maintaining a proactive approach will be essential for Virginia’s future business success.
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North Carolina Tops CNBC Ranking as Virginia Falls to Fourth
Additional Resources
- Pilot Online: Virginia Drops to Fourth in CNBC’s Business Rankings for 2025
- Business Insider: Capitol Building Photos
- News and Sentinel: Health Insurance Costs for Public Employees
- Washington Post: Richmond Water Outage
- Wikipedia: Business Environment
Author: STAFF HERE VIRGINIA BEACH WRITER
VIRGINIA BEACH STAFF WRITER The VIRGINIA BEACH STAFF WRITER represents the experienced team at HEREVirginiaBeach.com, your go-to source for actionable local news and information in Virginia Beach, Virginia Beach City, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Virginia Beach Neptune Festival, East Coast Surfing Championship, and the American Music Festival. Our coverage extends to key organizations like the Virginia Beach Chamber of Commerce and Visit Virginia Beach, plus leading businesses in tourism and defense that power the local economy such as the Virginia Beach Convention Center and Northrop Grumman. As part of the broader HERE network, we provide comprehensive, credible insights into Virginia's dynamic landscape.
