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May 6, 2021

CEO survey: Connecticut 43rd best state for business in 2021

HBJ File Photo Downtown Hartford skyline.
By Zachary Vasile

Connecticut is the 43rd-best state in the country for business in 2021, according to a new poll of the nation’s CEOs, a low ranking that nonetheless marks a three-place improvement for the state since last year.

The annual survey, carried out by Chief Executive magazine, saw Connecticut rise from No. 46 in 2020, in part due to “strong, pragmatic” leadership from Gov. Ned Lamont during the COVID-19 pandemic. The ascent put Connecticut ahead of neighbors such as Massachusetts (No. 45) and New York (No. 49), as well as traditionally higher-performing states, like Washington, which fell from the 44th spot to No. 46.

Lamont, who took office in 2019, has been generally praised for his handling of the health crisis, which helped bring transmission rates under control last year despite Connecticut’s close proximity to New York City, at the time the national epicenter for coronavirus infections. He has also overseen a faster reopening schedule than most of his Democratic counterparts, with occupancy limits on restaurants, gyms and certain other businesses dropped in March and nearly all COVID-related restrictions expected to be done away with by May 19.

Still, Connecticut remains near the back of the pack in the view of most American CEOs, beset, as the magazine noted, by high costs. These include taxes and electricity prices, which are the highest in the U.S.

Despite a catastrophic near-collapse of its loosely-regulated power grid in February, Texas for the 17th consecutive year placed No. 1 on Chief Executive’s list, mainly due to low taxes, local advances in solar and wind power technology and a COVID-inspired influx of people and businesses from higher-tax states, most notably California.

On the whole, CEOs seemed to look most favorably on states that have moved the fastest toward reopening their economies, or resisted shutting them down in the first place. Florida, which reached then-record COVID-19 infection rates in July 2020, held steady at No. 2, with analysts praising the Sunshine State’s “COVID openness,” in addition to its low taxes and favorable weather.

South Dakota, where Gov. Kristi Noem did not mandate social distancing or mask wearing and encouraged large gatherings like the Sturgis Motorcycle Rally, shot up from No. 24 in 2020 to No. 12 in 2021.

Rounding out Chief Executive’s top five behind Texas and Florida were Tennessee, North Carolina and Indiana.


 

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