Arizona continues to lead the Mountain Region in business investment with its impressive skyline.
Arizona has been recognized for the second consecutive year as the leading state in the Mountain Region for attracting business investment, according to Site Selection magazine. While the state excels regionally, Arizona’s position in the national CEO rankings has fallen to No. 10, signaling challenges that need addressing. The state’s business climate remains strong, but its declining perception among business leaders highlights the importance of policy improvements to regain its national competitiveness.
Arizona has been recognized as the leading state in the Mountain Region for attracting business investment, according to the annual rankings released by Site Selection magazine. This marks the second consecutive year that Arizona has achieved this prestigious position, solidifying its reputation as a favorable destination for business development.
In the Mountain Region, which encompasses states such as Utah, Colorado, Wyoming, Idaho, Nevada, New Mexico, and Montana, Arizona stands out for its successful efforts in fostering a favorable business climate. However, despite its regional accomplishments, Arizona has slipped to No. 10 in the national CEO rankings, as indicated by a comprehensive survey of over 650 chief executives.
While Arizona has successfully attracted a significant amount of business investment regionally, it did not make the national top 10 in the CEO rankings for 2025. Texas holds the first position nationally, followed by Indiana, North Carolina, Ohio, Illinois, Kentucky, Alabama, Louisiana, Georgia, and Virginia. Notably, Arizona’s decline from the previous year’s ranking marks a fall of six spots, indicating challenges that the state may need to address moving forward.
The rankings assess several critical factors that contribute to a state’s attractiveness for business investment. These include the total number of new and expanded facilities, overall capital investment, new jobs created, state tax climate ratings, workforce readiness, and various other considerations. Arizona’s high ranking in the Mountain Region reflects its strengths in most of these areas, particularly in attracting and nurturing new business operations.
The decline in Arizona’s standing in the Chief Executive’s Best & Worst States for Business ranking can be attributed to the competitive landscape and changes in perceptions among business leaders. The survey revealed that a combination of issues, including the state’s economic policies and workforce adequacy, influence perceptions of its business environment. Arizona was joined by South Carolina in experiencing a drop in the rankings; South Carolina now sits at No. 13 after also falling from its previous position.
The state of Delaware registered the most significant decline in the national rankings, plummeting a staggering 10 spots to end up at No. 25. This indicates that while some states thrive and improve their business environments, others may struggle with perception and policy issues that hinder their growth. Arizona’s fall from grace amidst a backdrop of regional success suggests that consistent efforts are needed to maintain and elevate its national standing.
As Arizona continues to lead the Mountain Region in attracting business investment, the challenge of maintaining its national competitiveness remains pressing. CEO perceptions can greatly influence the state’s business climate, and efforts to enhance policies related to workforce development and the tax environment will be critical in addressing the concerns raised in the recent survey. With its strong regional showing, Arizona has the potential to reclaim a higher position nationally, provided that its leadership can adapt to the evolving needs of businesses and their leaders.
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