In the era of large commercial transactions, CNBC reveals the best states with an advantage



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Terry Gou, General Manager of Foxconn (left), and Scott Walker, Wisconsin Governor, Discuss Before the Inauguration of the Foxconn Technology Group Group LCD Panel Works , of an area of ​​1,000 acres, on June 28, 2018, in Mt. Pleasant, Wisconsin.

Andy Manis | Getty Images

What makes some states more competitive than others in the battle for business and jobs? The calculation has never been more complicated than it is today, with a growing trade war, historic labor shortages, aging infrastructure and record economic expansion showing signs. Of voltage.

Fortunately, the best US states for trade in 2019 are back to make sense of it all. Our 13th The forthcoming annual study uses much of the same data that companies, large and small, use to decide where to locate and expand. These days, some of these decisions are getting a lot of attention in the country.

Think of Amazon's $ 5 billion draw for its so-called HQ2 project, which has sparked bids from 238 cities in North America. You can also check out Taiwan Public Electronics manufacturer Foxconn's less public search for a major manufacturing and technology complex in the United States. The judgments rendered by both companies – and the ensuing repercussions – speak volumes about the stakes.

Citing factors such as abundant talent, infrastructure and quality of life, Amazon announced in November its intention to split the project between Virginia and New York, a smaller portion being destined for Tennessee. But society suddenly pulled out of New York when a faction of community groups and politicians, including US representative Alexandria Ocasio-Cortez, voiced concerns about unrest in Long Island City, Queens, and billions of grants for a company that has a lot Resources. The experience of Amazon in New York – and the New York experience with Amazon – are proof that these decisions are not taken in a vacuum.

Meanwhile, questions arise about Foxconn's promise to build a $ 10 billion facility in Racine County, Wisconsin. At a White House ceremony in 2017, President Donald Trump, Scott Walker, then Governor of Wisconsin, and Foxconn President Terry Gou, said the project would relive almost single-handedly American manufacturing. The company said it chose Wisconsin for its workforce, infrastructure and education system. Wisconsin also provided Foxconn with a rich program of $ 2.85 billion in direct grants, along with other tax breaks and infrastructure improvements totaling more than $ 4 billion.

But two years later, the project took a disproportionate delay, did not achieve its hiring goals and Foxconn changed the direction of its facilities in technological development, thus reducing the number of jobs in the manufacturing sector. Governor Tony Evers – who defeated Walker last year in part because of the backlash of the Foxconn project – is looking to renegotiate the deal.

Such stories are played out on a much smaller scale virtually every day, in every state. Our annual Top States survey badyzes all the factors involved and shows which states are in a position to succeed and which are not.

Our methodology distinguishes states in 10 competitiveness categories: workforce, economy, infrastructure, cost of economic activity, quality of life, education, technology and innovation, business usability, access to capital and cost of life. We weight the categories according to the frequency with which the states quote them in their arguments of economic development. In this way, we judge states according to their own criteria.

But the numbers are only the beginning. Every year, we take a deep look at the problems of state competitiveness and the tools they use to fight against companies. And we bring you the exclusive comments of governors, business leaders and others who navigate this increasingly difficult landscape.

We also want to hear from you. Tell us what you think by using the #TopStates social media hashtag. And come back here often as we prepare the countdown of the best American states for trade.

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