For two decades, CNBC has ranked U.S. states on business competitiveness. Some states sprinted ahead while others stumbled backward. Michigan was once near the bottom of the pile. Now it sits comfortably inside the top 10.
Think of the ranking like a race where the fastest runners change positions over time. The first edition came out in 2007, just as the housing market showed signs of a bubble. States were fighting harder to attract companies. The competition has only grown fiercer since then.
Michigan started dead last in the economy category in 2007, ranking No. 46. Its overall position that year was No. 41, the worst in the state's history in this ranking. Twenty years later, Michigan climbed all the way to No. 6. That rise, from 41st to 6th, is the largest improvement of any state over the full period.
Ohio also made a stunning comeback. In 2007, the state had suffered the loss of 250,000 manufacturing jobs from 2000 to 2007. It ranked No. 30 overall.
By 2026, Ohio took the No. 1 spot. One reason: its Cost of Doing Business rank soared from No. 33 to No. 1. The state is now the cheapest place to run a company, according to the ranking.
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Other top performers have been steady. Virginia, Texas, and North Carolina rarely finish outside the top 10. The typical bottom-dwellers include West Virginia, Alaska, Hawaii, and Rhode Island. But the big movers tell a more interesting story.
South Dakota went in the opposite direction. In 2007 it ranked No. 18 overall. By 2026 it had fallen to No. 44.
Its economy rank slipped from No. 24 to No. 45. Its quality-of-life rank fell from No. 18 to No. 33.
Idaho experienced a similar drop. It was No. 6 overall in 2007, one of the best in the country. Its Cost of Doing Business rank was No. 1 that year, meaning it was the cheapest state for companies.
By 2026 Idaho had fallen to No. 30 overall, and its cost rank dropped to No. 28. The state went from a top contender to a middling performer.
The CNBC ranking evaluates states across multiple categories, including workforce, infrastructure, and cost of living. While some states have swung dramatically, others have remained fixtures at the top. Virginia, for example, has rarely left the top 10, and Texas routinely benefits from its business-friendly climate and growing population. These consistent performers highlight that stable policies and diversified economies often prevent extreme rises or falls.
The full 2026 ranking and all past editions back to 2007 are now published. Governors will keep using the list to promote their states or attack opponents. Amazon has already consulted the ranking when choosing locations, such as its 2018 HQ2 search.
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