Infrastructure is the focus of America's Top States for Business, with billions of government funds at play.

• In 2024, infrastructure has become the primary focus of economic development due to initiatives such as President Biden's CHIPS Act and Inflation Reduction Act, as well as a national push to strengthen supply chains.
• For the first time, CNBC's 17th study of state competitiveness has ranked infrastructure as the top-weighted category.
• Since 2014, the Workforce has been the top category in the Top States for Business rankings. However, worker shortages have decreased as the economy stabilizes.

Federal money in the amount of a couple trillion dollars can motivate companies and states to prioritize infrastructure development.

The CHIPS and Science Act, Inflation Reduction Act, and Bipartisan Infrastructure Law each contain hundreds of billions of dollars to revitalize domestic manufacturing and secure supply chains.

The importance of keeping production close to home and accessible has been highlighted by global turmoil and the Covid-19 pandemic.

The combination of federal money, risk mitigation, and reshoring has resulted in a competitive situation for companies seeking limited U.S. sites, according to Seth Martindale, Chairman of the Site Selectors Guild.

CNBC's 17th annual study on state competitiveness, America's Top States for Business 2024, will determine which states are winning the battle over infrastructure and everything else that makes a state great for business.

Since 2007, our proven approach evaluates the states' competitiveness in ten categories, taking into account their frequency as selling points in state economic development advertising.

In 2024, states are placing a greater emphasis on infrastructure, with infrastructure being the heaviest-weighted category in our study. The category encompasses not only traditional infrastructure such as roads, bridges, ports, and airports, but also broadband, utilities, sustainability, shovel-ready development sites, and state-sponsored site readiness programs.

"Companies are eager to move quickly, especially in the current climate, according to Martindale. Having a site that is ready to go and can be built upon immediately reduces the time it takes to deliver the desired capacity."

This year's CNBC study received some data on site readiness from the Site Selectors Guild.

Although the workforce has been the top category since 2014, the recent decrease in job openings by approximately 1.8 million nationwide has alleviated the worker shortages that drove the competition for talent in recent years.

In 2024, Business Friendliness and Access to Capital are becoming increasingly important, as companies seek to minimize regulatory hurdles when building new facilities and secure funding despite high inflation and interest rates.

AI a new factor in Top States for Business

The 2024 CNBC study also reflects the incredibly dynamic nature of American business.

For the first time, America's Top States for Business examines the field of artificial intelligence. Which states are leading the way in innovation and employment in this rapidly expanding industry?

According to Russell Wald, Deputy Director of the Institute for Human-Centered Artificial Intelligence at Stanford University, the state that invests in and allows individuals to pursue careers in either industry or government will be the one to succeed. This state is also providing data for this year's Top States study.

The Technology and Innovation category examines the development of new AI models and the location of AI jobs, while the Business Friendliness category evaluates which states are creating a regulatory framework to support AI growth.

Wald stated that businesses desire coherence in regulation and the ability to determine if they are playing on a level field.

Climate risk and the states

In 2024, the economic impact of sustainability and climate risk is more profound than ever, according to Jeremy Porter, Head of Climate Implications at First Street Foundation, a nonpartisan, nonprofit research organization that provided some of the risk data for this year's study.

"Climate risk will impact all communities across the country in the next 20 to 30 years, affecting individuals' decisions about where to live, companies' choices about where to locate and have their operations, and supply chain analytics. As a result, it will influence all aspects of our economy."

The growing insurance crisis is a result of climate risk, with carriers increasing homeowner and business premiums and withdrawing from certain states. The impact varies across states, which we take into account in our Cost of Doing Business and Cost of Living rankings.

Which states are the rest of the world investing in?

Which states are most effectively turning out the next generation of skilled workers and business leaders?

Stay tuned to CNBC's Top States section for more information on competitiveness in the coming month as we finalize this year's rankings. Share your thoughts using the hashtag #TopStates.