CNBC's Scott Cohn on The Best States for Business
Jul 11, 2012|
CNBC's Scott Cohn on The Best States for Business.
Transcript - will not be 100% accurate
Okay. The -- you're about to hear is not -- gas pump fell it is in fact the opening bell because Wall Street -- clean and 33 seconds ago you know it's been kind of 1 of those spunky morning we've been in positive territory -- -- been in negative territory almost hesitate to ask. We do. All right I see red tape as parents how to read but -- it is read the Dow's down eleven the NASDAQ down seven points. S&P is only down one so that's flat oil trading up a dollar seventeen at 850 wait ten year US treasury up slightly at one point 501. You've got gold opening up down seven dollars. Eighty cents to fifteen cents each Ari there you go well we're joined now by Scott culled from CNBC Scott are you doing today welcome to the show. -- you. It had a nice job on the annual business hold I guess my question Korea Howland has been doing it seemed the business. Friendly poll. It's America's upstate for business -- top states for business which I should know by now because it's that this -- -- six years that we we started in 2007. Have been ranking estates in ten different categories of competitive tennis for six years. What -- are the categories maybe could run through and maybe top five or six at the most heavily weighted category. Sure we look at the cost of doing business first and foremost because that's something that stage -- always touting -- trying to attract businesses low cost doing business the workforce quality of life transportation and infrastructure economy technology and innovation. Laden let's see what else access to capital cost of living. Education. And based economy. -- hardest Texas consistently ranked so high I think Texas. And I think you know kind of a lousy system. An amateur the quality elect -- Well yeah I mean that those are a couple areas were taxes does fall short we can talk about that mean Texas has cynic. Incredibly large and diverse economy -- think about Texas's est to basically an oil state that there's so much more there and Texas is. Relatively -- of regulations they have a very favorable tax structure where there's no corporate tax individual income tax. There's some other issues though there with the sales taxes the property taxes and things like that so their costs are not all that great the Texas has -- large workforce it has terrific infrastructure to really well this year in the technology and innovation category so there's -- taxes is never finished below number twos and restarted -- in this this study. In 2007. And it's hard to imagine them on because they've got so much going for. So were the top five. Top five tech texas' number one as we said Utah is number two this year which interest in Virginia which has been. The top state three out of the last six years all the number three which -- kind of surprised that partly because. It's so dependent on the federal government that that helped the state for a long time and now we don't know what's going on Washington. North Carolina comes in fourth in North Dakota makes or top five for the first time -- having as you know huge shale oil boom. And that relief finally reflect itself in there -- -- -- The only price problem is it's North Dakota and if he's ever been there it's. It's one of those places you can go and make a lot of money that is not a place you pro wanna spend too much time. Yeah I mean what what we've found is that they are experiencing a lot of growing -- because they've had this huge problem. Unemployment there's only 3%. Which is good for the economy but it means that there's not a lot of available where. Twenty bucks an hour the McDonald's right right it's unbelievably in the if you can drive trucker. Work on an oil rig you can make 15200000. Bucks to get to sleep in your car is right digital homes. And when estate is growing that -- I mean they they do very poorly in our technology and innovation category does not attracting a lot of capital there. It's been really fast so it's it's it's doing well but they've got -- others when -- got to catch up. Now I looked through all of the New England states and you know Massachusetts Rhode Island New Hampshire Vermont even through New York in their Connecticut Maine. If they all stink in -- -- -- allows you Rhode island's like the worst state in the country for rock why -- why is New England a terrible place to do business. You know it's it's not. Universally terrible place do business I mean Massachusetts which fell sharply this year it was number six last year and actually made it into the top five the year before. Master system that has had some issues as you know in the economy with jobs with infrastructure. And and really really fell hard and you know that the we we look at we do look at things like audio light and that really helps New Hampshire which was tops in that category this year. But and you look at cost I mean do do. -- was -- accidents is that -- the northeast is expensive it's it's been established place there's you know taxes or are on the high side. And you know we also look for for debate discovery -- we look at unionization unions are bigger in the northeast. And businesses look for placed to go like shy away from the state of civil union. Rhode Island comes in at number fifty what what is it about Rhode Island whenever you look at the study Rhode Island is always at the bottom there right there has to do with education systems. Well you're the number one is in corruption unit or even the corrupt officials. There -- even more corrupt than Massachusetts allegedly with what like what is it about Rhode Island it's always at the bottom. -- at a category for corruption. There -- Debt dot I am sixers play I mean -- the finances in the state are terrible. Heard about central falls and everything else that it's going on in the state of Rhode Island and that has a ripple effect. So they get they they do poorly in education they do poorly in in costs. Did you know it really does have a ripple effect when you have state finances that are such a match we look at two state budget gaps we look at credit ratings. And. Connecticut Connecticut's 44 I mean that's. And that's a rich that's one of the richest states in the country. The eighties it it is from partner and you know everything doesn't always float of the State's economy but. But Connecticut -- high cost states. And you know and and people get. Businesses look at regulations. And the environment there -- legal environment things like that. You one thing that north Q at that that Rhode Island has going for interest and I don't know whether this is gonna help down the road but. They cited sources of capital under the state last year. Venture capital -- like Anderson maybe some people somewhere are seeing some opportunity. And so we are categorical access to capital and north draw our attention on Rhode Island. It's finished I think in the top ten in -- -- So probably not all it all went to curt Schilling's company. Thank you -- that's a problem epithet that was a problem and it's got the great job in the survey thank you for joining us banks have.