Texas Border Business
We are accustomed to Texas topping virtually every ranking relating to the economy—most major corporate locations and expansions, top CEO perceptions, highest investment, and many others. By one measure, however, the results are more of a mixed bag. The list of top states for business compiled annually by CNBC, takes a broader perspective across multiple dimensions. Viewed through this comprehensive lens, the news is not all good.
CNBC looks at 138 metrics within 10 categories, assigning weights based on an analysis of each state’s economic development marketing materials and related data to see which selling points come up the most. Those categories mentioned most frequently were awarded more points. In essence, states are ranked based on attributes that they use to sell themselves.
The heaviest weight is given to Infrastructure, which includes not only traditional roads, waterways, rail, bridges, and air travel but also affordable and reliable power and water supplies, broadband connectivity, and large-scale computing power. The concept of speed to market, such as shovel-ready sites and ease of permitting, is also part of this category. Texas ranked 12th on this measure, which is an improvement over results in recent years, though clearly there are challenges going forward.
The second heaviest-weighted category is Economy (where Texas ranks second), followed by Workforce (first). Workforce looks at the concentration of STEM workers, educational attainment, the ability to attract skilled workers, and productivity. Texas also does well in Technology & Innovation (third), and Cost of Doing Business (fifth).
However, in the Quality of Life category, Texas is an abysmal 49th. This category focuses on healthcare access, availability and affordability of qualified childcare facilities, and environmental quality. It also emphasizes inclusiveness in state laws such as whether they prevent various types of discrimination that can squelch opportunity. Reproductive rights are also included, and surveys show almost two-thirds of younger workers would likely not live in a state with substantial limitations. Texas also ranked 32nd in Education. Key criteria include test scores, class size, spending, the numbers of colleges and universities, and community colleges and career training options.
While concerns regarding Quality of Life and Education are unlikely to diminish performance immediately, they clearly threaten outcomes over time, as well as the health and wellbeing of many residents. It is not possible to perpetually hold the premier Workforce ranking while being well below average in Education. Quality of Life invariably impacts locations. Texas improved to second overall in the 2025 ranking but fell to fourth in the current year. This drop is not catastrophic but is a clear warning that there is much to be done to assure prosperity, opportunity, and sustainability for Texans of the future. Stay safe!
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Dr. M. Ray Perryman is President and Chief Executive Officer of The Perryman Group (www.perrymangroup.com), which has served the needs of more than 3,000 clients over the past four decades.
