Though Texas Gov. Greg Abbott likes to tout that Texas is the best state for business, a new ranking says otherwise.
In CNBC's recently published Top States for Business ranking, Texas came up second-best in the study ranking states in 10 categories of competitiveness. So while Texas beat out Florida, Virginia and Ohio in the top five, North Carolina earned the No. 1 spot.
According to CNBC, the methodology behind its ranking works by having each state earn points, with a maximum of 2,500 points possible across the ten weighted categories that include education, the workforce and more. The more points, the better the state is for business. Texas trailed not too far behind North Carolina, notching 1601 points to North Carolina's 1614.
Texas' ranking at No. 2 comes in a year that CNBC's ranking has added new metrics aimed at exploring states' risks from a trade war and a shrinking federal budget. CNBC also said it enhanced some of its infrastructure metrics to determine how states fulfill power and data demands. And while the rankings are based on point totals, CNBC also gave states a letter grade in each category to measure their performance relative to the competition.
When it comes to infrastructure, Texas got a C+ and netted fewer points than North Carolina. Texas' performance was also weak in the cost of living category. And they're not the only categories weighing Texas down; the Lone Star State received 72 points, and an F, in quality of life compared to North Carolina's 136.
In an explanation of its quality of life category, CNBC noted that companies want to do business in places that can attract talent. That in mind, the study looked at factors like per capita crime rates, environmental quality, and health care services such as abortion. Childcare and worker protections also come into play. And protections against discrimination of all kinds, as well as voting rights and secure election systems, are considered in this category.
Nonetheless, Texas shines in other categories, earning A+ marks and plenty of points for its economy, workforce and tech and innovation.
CNBC is careful to note that the study, now in its 19th year, is not an opinion survey. "We gather empirical data on the states' performance in each metric using the most recent figures available," its methodology reads. "Where it makes sense, we calculate some metrics on a per capita basis or in relation to a state's gross domestic product, to allow large and small states to compete on a level playing field."
Texas might fall behind North Carolina, which has long nabbed interest from businesses, particularly in its research triangle region. But Texas remains far ahead of Louisiana, Rhode Island, Montana, Hawaii and Alaska, which rounded out the bottom five.