Texas has been named "America's Top State for Business," according to a study conducted by CNBC.
CNBC made the announcement live on its network from Enchanted Rock in Fredericksburg, Texas.
“Texas offers a blueprint for business success,” said Governor Abbott. “The Texas economy is the fastest growing in the nation, and more Texans are working than ever before. This is not an accident – reforming taxes, removing regulatory barriers, encouraging participation in the sharing economy, investing in our education system, and securing Texans’ freedom to aspire is our formula for success. As Governor, I will work to continue to keep Texas the best state to build a business big or small, and implement a blueprint for a new era of economic expansion.”
The study is based on more than 60 different metrics, all weighted in a point scale. CNBC released an article in June 2018 detailing its methodology for the study.
In short, 64 metrics are taken into account and placed into 10 separate categories with its own point value: Workforce (425 points), Infrastructure (400 points), Cost of Doing Business (350 points), Economy (300 points), Quality of Life (300 points), Technology & Innovation (225 points), Education (200 points), Business Friendliness (150 points), Access to Capital (100 points), and Cost of Living (50 points). For further reasoning and logic into the categories and its respective point values, you can read CNBC's methodology article here.
CNBC reported since the release of its inaugural rankings in 2007, Texas has never ranked outside the top five overall. In 2018, Texas finished first in the country in "economy" and "infrastructure." Finishing third in "access to capital," seventh in "workforce," and ninth in "technology and innovation" also helped the Lone Star State snag the top overall spot on the list.
According to the governor's office, Texas leads all states in private-sector job creation ─ over the month, over the year and over the past 10 years. Texas has added over 346,300 private-sector jobs in the last year, and over 1.7 million in the last decade, a press release from Abbott's office stated. The release also said new business formation in Texas is at a five-year high, and jobs in Texas are now on pace for the strongest growth in four years.
However, the Lone Star State did show some blunders and spots to improve, according to data from CNBC's report.
Texas was able to top the 49 other states in America despite ranking in the bottom half of the country in education, and quality of life. CNBC reported that Texas ranked 37th in education due to low high school test scores. According to the U.S. Census Bureau, only about 82 percent of people over age 25 have a high school diploma — the second-lowest percentage in the nation, CNBC reported.
As far as quality of life is concerned, CNBC ranked Texas 31st, attributing to high violent crime rates. According to CNBC, FBI data showed Texas had nearly 1,500 murders in 2016, which translates to more than 400 violent crimes per 100,000 residents. Another factor that played into Texas' low quality of life ranking was the amount of residents without health insurance -- nearly 17 percent, which leads the nation, according to U.S. Census Bureau.
CNBC's Scott Cohn -- who authored the article about the report -- interviewed Texas Governor Greg Abbott on Tuesday shortly after the on-air announcement.
WATCH THE CNBC INTERVIEW HERE:
In the interview with Cohn, Abbott put emphasis on diversifying the economy.
"A lot of people don't know, but Texas has the largest medical center in the entire world," Abbott said on CNBC Tuesday morning. "Another fact that was printed by the Dallas Morning News last year is that if you look at areas in the country with the highest concentration of workers in the financial sector, it's not New York, it's not Boston, it actually is Dallas."
Abbott then segued into Texas' dominance in the technology, stating the state's number one ranking in "exporting technology" has helped develop its "robust economy."
KVUE's Ashley Goudeau interviewed Abbott at 6 p.m. Tuesday about the announcement.
WATCH KVUE'S INTERVIEW HERE:
For a full, detailed list of the complete rankings, click here.