The Commonwealth has been named the second most "business-friendly" state for the second year in a row, according to a study conducted by Pollina Corporate Real Estate Co., a site-selection company.
Dr. Ronald Pollina, president of Pollina Real Estate Co., has been conducting this research annually for three years, evaluating states in a two-phase system before ranking them.
"First, we evaluate every state on fifteen factors, including how states tax businesses, human resources within the state, right to work legislation, energy costs, what they spend on infrastructure and workers comp. legislation," Pollina said, adding that all of these factors are controlled by each state's government.
In the second phase of his research, Pollina evaluates the 35 top-ranking states in terms of factors linked to their economic development efforts, he said. The states are then ranked with respect to the point totals they have accrued.
According to Pollina, the disparity between the number one and two ranked states was the smallest it has ever been.
"South Carolina, ranked number one, and received 346.4 points," Pollina said. "Virginia, number two, received 345.6 points. This is one of the closest [rankings] we've ever had."
Gov. Tim Kaine, in a recent press release, attributed this high ranking to the state's continued efforts to attract employers and investors.
"Virginia's aggressive and focused economic development efforts together with our positive business climate have earned this high praise," he said. "Attracting jobs and investment is a top priority of our Administration and we're proud of this continuing accomplishment."
Christie Miller, communications manager for the Virginia Economic Development Partnership, attributed the Commonwealth's high ranking to the high-quality labor pool, the low cost of doing business and the state's continued efforts to avoid outsourcing.
"We have tried to be creative in looking at ways to work with companies to keep them here," Miller said, citing projects in which companies move centers and support functions to lower-cost areas of the state.
By distributing services in this fashion, all parts of the state are able to "share the wealth," Miller said.
University Economics Prof. David Mills speculated that the Commonwealth is not immune to outsourcing and credited its business-friendliness to job composition and economic activity.
"The specific nicks of business activity in Virginia make it less vulnerable to outsourcing," he said.
According to Miller, this ranking will benefit the state in the future.
"It definitely highlights us and puts us in the limelight," Miller said. "If there's a company wavering between two states and we're one of them, maybe it will push us over the line in [our] favor."
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