The headline was shocking: CNBC just ranked Arkansas 44th in the country in its annual "Top States for Business" report.
As president and CEO of the Arkansas State Chamber of Commerce/Associated Industries of Arkansas (AIA), I've spent the past year attending business openings, hosting job-placement ceremonies for high-schoolers and welcoming new residents to our state. CNBC's report didn't exactly line up with what I've seen on the ground floor of our economy--and doesn't seem to line up with anyone else's experience either.
Well, it turns out that if a news story looks like a lie, walks like a lie and quacks like a lie, it probably is one. I've dug into CNBC's ranking system and learned that this news organization's definition of a "top state for business" is miles away from what most Americans--and business leaders--think.
First, the good news. In CNBC's own rankings, Arkansas is 15th in cost of doing business, 12th in cost of living, and 14th in "economy," which measures things like job growth and fiscal strength. That's a pretty strong ranking--after all, those are the categories most people think of when they think of economic strength.
Where Arkansas got dinged was in CNBC's more partisan categories. They weigh certain criteria like "climate change," "inclusiveness," and "reproductive rights" alongside traditional measures of business friendliness.
Whatever your personal beliefs on these issues, I think we can all agree that businesses prioritize states' tax rates and regulatory environments when deciding where to set up shop. Clearly, these categories are just a way for CNBC to give a leg up to the coastal states that are hemorrhaging population and businesses to heartland economies like Arkansas.
As president and CEO of the State Chamber/AIA, I've seen firsthand how quickly our state's economy is growing and how rapidly our leaders are improving our business environment.
Arkansas has cut personal income taxes by 33 percent and corporate income taxes by 21 percent in the past few years while still notching record state budget surpluses. On her first day in office, Gov. Sarah Sanders signed an executive order requiring state agencies to repeal two regulations for every new one they introduce.
Soon after, she created the Workforce Cabinet to address Arkansas' labor shortage and get workers off the sidelines. She went on to sign laws overhauling our education system, cracking down on crime, and jump-starting tourism. A key focus of Arkansas LEARNS, her landmark education law, is increasing career and technical training in our high schools.
The results of these changes have been quick and clear. Today, there are more Arkansans working than ever before. Our unemployment rate is at a record low of 2.7 percent--below the national rate of 3.7 percent. We ranked fifth in the country for inbound movers in 2022 and have added tens of thousands of residents since the 2020 census. Our cost of living is among the lowest in the country.
But the truest measure of Arkansas' business friendliness is the companies that chose, and continue to choose, our state. We are a national leader in the aerospace and defense, food and beverage, and timber and forest industries.
Just last year, U.S. Steel invested $3 billion in Arkansas, making us one of the top steel-producing states in the country. We are home to massive, internationally recognized companies like Tyson, J.B. Hunt, Dillard's, Murphy USA and Walmart.
Maybe CNBC should have asked the opinions of companies like Westrock Coffee, Owens Corning, Camden Timbers, RelateCare, Apptegy, Fiocchi USA and Lockheed Martin. All of them recently announced major expansions in Arkansas.
Like many Arkansas business leaders, I was frustrated when I read this year's "Top States for Business" report. But I'm not worried.
Arkansas will continue to grow, continue to attract new businesses and continue to thrive. Maybe in a few years, the national media will catch up with what we already know here in the Natural State: that it has never been a better time to invest in Arkansas.
Randy Zook is president and CEO of the Arkansas State Chamber of Commerce/Associated Industries of Arkansas.