Pennsylvania climbs in CNBC business rankings as competitiveness improves

Pennsylvania is moving up in the ranks of top states for business. 

Each year CNBC ranks America’s Top States for Business, and this year Pennsylvania came in at number 13. 

That’s up four spots from last year and is the highest position that the state has ranked in 15 years. Pennsylvania was the highest ranking among all of the states in the Northeast, according to the governor’s office. 

The Pennsylvania Chamber of Business and Industry said in a release that the ranking comes after years of work to improve Pennsylvania’s business climate through policies supported by the PA Chamber, including reducing the Corporate Net Income Tax, modernizing Net Operating Loss deductions, improving permitting, investing in workforce development, and strengthening the state’s economic competitiveness. 

“Pennsylvania’s rise among the nation’s most competitive states for business is encouraging and shows that pro-growth policies are making our Commonwealth more attractive for investment, jobs, and opportunity,” said PA Chamber President and CEO Luke Bernstein. “We should be proud of this progress, but our goal isn’t to be No. 13 — it’s to be No. 1. This ranking shows what’s possible when policymakers prioritize growth, and if we keep our foot on the gas and continue improving Pennsylvania’s competitiveness, there’s no reason we can’t get there.” 

CNBC evaluates states on factors including workforce, infrastructure, technology and innovation, quality of life, business costs, and – for the first time this year – ease of permitting.  

CNBC said infrastructure became the top-weighted category in 2026 as companies pursue locations close to transport hubs, top utilities, fresh water, and abundant energy to power advanced manufacturing and data centers.  

Governor Josh Shapiro noted that his administration has made cutting red tape and speeding up permitting a key priority. 

He pointed out that last year, according to the U.S. Bureau of Labor Statistics, the state ranked third in the nation for job growth, and a Moody’s analysis found Pennsylvania is the only state in the Northeast with a growing economy. 

“Pennsylvania is winning deals and seeing record economic growth because we’re focused on what matters – building a strong workforce, cutting unnecessary red tape, and creating an environment where businesses can grow and create good-paying jobs,” said Shapiro. “This recognition reflects the progress we’re making – and we’re going to keep pushing aggressively to attract more business, get stuff done, and create more opportunity across our Commonwealth.” 

He said his administration has been working to reform government and deliver faster, more predictable permitting and licensing processes that give businesses the certainty they need to invest and grow. 

Efforts have included the launch of the Office of Transformation and Opportunity (OTO) to coordinate permitting and business support, which assisted over 300 companies in 2025. 

The state also created the PA Permit Fast Track Program, the first in the nation for multi-agency coordination to expedite major projects. 

 PAyback was also instituted offering a money-back guarantee for timely permit and license processing. 

“CNBC’s rankings reflect the work the Shapiro Administration is doing to make Pennsylvania one of the best places for businesses to grow and thrive,” said Department of Community and Economic Development Secretary Rick Siger. “We’re creating a more competitive business climate by making strategic investments, streamlining permitting through PA Permit Fast Track, strengthening our workforce, and partnering with companies that are choosing to invest and create jobs here. The growing national recognition proves Pennsylvania is open for business.”