Dayton Business Journal...
CEO Magazine: Ohio gains ground as business state
by Joe Cogliano
Wednesday, May 2, 2012 

Ohio gained six spots in the latest poll of where CEOs prefer to do business, according to Chief Executive magazine’s annual Best & Worst States Survey. 

The Buckeye State ranked no. 35 in this year’s survey, released Wednesday. For the eighth year in a row, CEOs bestowed the no. 1 rating on Texas. 

The Best & Worst States Survey measures the sentiment of CEOs on business conditions around the nation. For the latest ranking, 650 CEOs from across the country evaluated the states on a broad range of issues, including regulations, tax policies, workforce quality, educational resources, quality of living and infrastructure. 

Florida rose one spot to take the no. 2 rank, while North Carolina slipped to no. 3. Tennessee remained at No. 4 while Indiana climbed a spot to capture the No. 5 rank. 

CEOs named the worst states to do business as California, New York, Illinois, Massachusetts and Michigan. 

The magazine said Ohio’s development trend indicator was positive and that the “public pension ploy didn’t work, but bellwether state is going business-friendly.” 

While Ohio has lost several big headquarters in recent years, such as NCR Corp. moving out of Dayton to relocate near Atlanta and Chiquita Brands moving from Cincinnati to Charlotte, the state has made gains recently. Caterpillar has set up a new facility in the Dayton region, and all three of the big Detroit automakers have made investments in facilities in the state. General Electric also is expanding its operations in the state, including a $65 million investment in Dayton, where it is opening a new R&D center. 

In the report, CEOs gave Ohio three of five stars for taxation and regulations as well as living environment, but the state got four of five stars for workforce quality. 

“Inhospitable business environments mean less jobs, as entrepreneurs and established corporations seek more cost-efficient and tax-friendly locales, said Marshall Cooper, CEO of Chief Executive magazine and ChiefExecutive.net. “This survey shows that states that create policies and incentives are rewarded with investment, jobs and greater overall economic activity.” 

CEO comments about Ohio were mixed: 

• “Litigation environment is critical to a good business environment. Taxation in Ohio is moving in the right direction.” 

• “Ohio is depressed with low levels of communication between government and business. Government believes miracle corporations coming to Ohio to “save” the state, yet employee base is not trained in high tech or significant competencies to fill the jobs. It’s very frustrating to attempt to improve backward thinking.” 

• “Ohio is improving with new governor.” 

• “Ohio, Indiana & Texas are very pro-business in many areas.” 

• “Pennsylvania, Ohio and California have a lot of red tape to deal with. Ohio’s captive workers comp program is the bureaucracy from hell!” 

• “We only have operations in Ohio currently. Hope to shed more light on other states as our opportunities grow.” 

Louisiana was the biggest gainer in the survey, rising 14 spots to be the No. 13 most attractive state in the country to do business. The biggest loser was Oregon, which dropped nine spots to No. 42. 

CEOs surveyed said California’s poor ranking is the result of its hostility to business, high state taxes and overly stringent regulations, which is driving investment, companies and jobs to other states. According to Spectrum Locations Consultants, 254 California companies moved some or all of their work and jobs out of state in 2011, an increase of 26 percent over the previous year and five times as many as in 2009. 

“CEOs tell us that California seems to be doing everything possible to drive business from the state. Texas, by contrast, has been welcoming companies and entrepreneurs, particularly in the high-tech arena,” said J.P. Donlon, editor-in-chief of Chief Executive magazine and Chief Executive.net.