What does the data reveal about the current state of the swing state business compared to four years ago?

• In comparison to the peak of the Trump economy in 2019, the overall business climates have improved in the battleground states of Arizona, Georgia, Michigan, North Carolina, and Pennsylvania in 2024.
• Only Nevada and Wisconsin saw their overall rankings decline.
• The study by CNBC ranks the states for business, and the data can be used by both Trump and Harris to support or criticize their policies.

Despite improvements in their overall business climates during the Biden-Harris administration, five of the seven swing states in the 2024 presidential election may not necessarily be better off economically, as the economy remains a top concern for voters in an election year.

Since 2007, CNBC has ranked all 50 states based on ten categories of competitiveness to determine the best states for doing business. The rankings are based on numerous metrics that provide a comprehensive picture of each state's business and economic climate.

In comparing the most recent rankings, published in July, with those from 2019, the last full year of data before the Covid-19 pandemic, and the peak of the Trump economy, only two of the seven biggest battlegrounds in terms of polling and Electoral College heft saw their overall rankings decline - Nevada and Wisconsin.

All five swing states, including Arizona, Georgia, Michigan, North Carolina, and Pennsylvania, saw an improvement in their standing.

While competitiveness is a complex issue, it is often influenced by state policies as much, if not more, than events in Washington. Nonetheless, both the Trump and Harris campaigns have statistics to either boast about or avoid.

Here is how the business climates break down in the battlegrounds.

Arizona – Cashing in on CHIPS Act funding

In 2020, Taiwan Semiconductor Manufacturing Co. announced a $12 billion investment in Arizona, making it their U.S. home, which was a significant victory for the Trump administration.

The CHIPS and Science Act, signed into law by President Biden in 2022, propelled Arizona's semiconductor industry, which has a history dating back to Motorola in the 1950s.

With $6.6 billion in CHIPS Act funding, TSMC has increased its Arizona investment to $65 billion, including three large chip fabrication plants. Intel is also investing $30 billion. As a result, Arizona now ranks third in semiconductor manufacturing and related facilities, behind California and Texas, according to the Semiconductor Industry Association.

Although the state has a dependable power grid, it faces challenges in other areas, such as the increasing cost of living.

Arizona's workforce ranking has dropped to No. 6, while the state's education system ranks No. 47, with large class sizes and underfunded schools. This has led to a labor shortage, causing TSMC to delay the start of production in Arizona until 2025.

The Biden administration designated Phoenix as a Workforce Hub under a CHIPS and Science Act program aimed at fostering public-private partnerships and nurturing Arizona's talent pipeline.

Georgia – Infrastructure is No. 1 in the nation

The Peach State's top-ranked infrastructure makes it a prime location for companies, with Atlanta's Hartsfield-Jackson International Airport receiving a $45 million upgrade under the Bipartisan Infrastructure Law.

Georgia's infrastructure strength is largely homegrown, with its GRAD program providing 60 shovel-ready sites, making it a hub for electric vehicle production. Kia, Hyundai, and Rivian have all established facilities in the state, and the Georgia Department of Economic Development has attracted over $27 billion in EV investments since 2018.

The Inflation Reduction Act, which Vice President Kamala Harris supported with her vote in 2022, aims to promote the EV industry through new and extended tax credits. However, Governor Brian Kemp, a Republican, argues that the IRA has actually hindered the industry's growth by pushing it too quickly and sparking opposition to the technology.

Georgia's poor health care, weak worker protections, and six-week abortion ban contributed to its ranking 40th for Quality of Life, with the Georgia Supreme Court reinstating the ban this month.

Michigan – Whitmer's rise is hitting economic headwinds

In 2023, Michigan rose to ninth place after improving from mediocrity.

Michigan is an affordable state to live in, with the third lowest cost of living in the nation. The state's cost of doing business is also favorable, thanks to generous incentives. Additionally, Michigan has improved its business friendliness ranking by reducing regulations.

Gov. Gretchen Whitmer's popularity and busy campaigning for Kamala Harris have made her a rising Democratic star. In 2022, Michigan Democrats achieved a trifecta in state government, winning control of both houses of the legislature and the governorship. The new majority promptly repealed Michigan's right to work law, approved new protections against discrimination, and enshrined abortion rights.

Despite Whitmer's promise that changes would attract workers to the state, Michigan still lags behind the nation in attracting workers, according to Top States data.

Although economic growth was sluggish in the previous year, there have been indications of a turnaround to begin 2024. The slowdown in the electric vehicle industry led Ford Motor to reduce its plans for a $3.5 billion battery plant in Michigan. In response, the state also reduced the $1.7 billion in incentives it had planned, revising the package to $409 million.

Nevada – High unemployment cuts both ways

Nevada's 5.5% unemployment rate in August is not something to be proud of, but it can't affect the mood of voters as Election Day approaches. However, for employers, it means that Nevada has a large pool of talented workers. This is one of the reasons why Nevada's workforce ranking has improved to the top ten in 2024.

Nevada's economy has improved to No. 8 in the Lightcast Talent Attraction Index, despite economic growth slowing in 2024.

Nevada's competitiveness has declined during the Biden-Harris years, with its education system being the worst in the country. The state has the largest class sizes in the nation, with 24 students per teacher, and its support for higher education is minimal. There is only one public community college, and K-12 test scores rank 47th in the nation.

Although Nevada ranks 46th in Technology and Innovation, the state has a limited presence in emerging industries such as semiconductors and artificial intelligence. However, Nevada did receive a Tech Hub last year under the CHIPS and Science Act, which helped develop the next generation of lithium-ion batteries.

North Carolina – Utilities struggling to keep pace with growth

Since 2007, North Carolina has consistently been a competitive contender for the Top States ranking, regardless of who was in the White House. In 2024, the state came close to achieving a three-peat, but fell short by just three points, finishing in second place behind Virginia.

Despite having America's third-best workforce, fourth-best economy, and being second in business friendliness, North Carolina dropped to 20th for infrastructure due to its electric and water utilities' inability to keep up with growth.

The growth in the state has negatively impacted North Carolina's rankings for Cost of Living and Cost of Doing Business. With Hurricane Helene approaching, more trouble may arise. Despite managing to weather the insurance crisis this year, the state was severely affected by the monster storm, causing devastating floods in areas not typically associated with hurricane damage.

Pennsylvania – Making major strides in education

Gov. Josh Shapiro, who was elected last year and was considered for Vice President Harris' running mate in 2024, has made education, specifically school funding, a key concern.

In his annual budget address in February, Shapiro stated that real challenges in education and workforce development pose a threat to our future progress if we do not act now.

The state has made significant progress in education, ranking third in the country, just behind Virginia and Massachusetts. Additionally, the state has improved its funding for higher education, moving up from 34th to ninth place, a top priority for Shapiro, according to the State Higher Education Executive Officers Association.

Pennsylvania is an affordable place to live, with 144 million people living within a day's drive, which improves its otherwise mediocre infrastructure ranking.

Pennsylvania's economy is underperforming, with job growth being poor and the state ranking last in new business formations. This may be due in part to Pennsylvania being America's twelfth-most regulated state, according to the Mercatus Center at George Mason University.

The state of Pennsylvania has a lower rate of migration of college-educated workers compared to the national average, and it has only 18 community colleges despite having a population of 13 million people. This negatively impacts the state's ranking in terms of its workforce.

Wisconsin – America's Dairyland is going high tech

In 2018, President Trump promised that a new wonder of the world would be built in southeastern Wisconsin. However, this promise became an embarrassment for Trump and Governor Scott Walker when Foxconn, a Taiwanese electronics manufacturer, largely abandoned its plans to construct a massive facility near Racine.

By November 2018, it was clear that the deal with Foxconn, which Walker had promised over $3 billion in subsidies for, was failing. This may have contributed to his loss of re-election.

Gov. Tony Evers, his Democratic successor, renegotiated the Foxconn deal. Currently, Microsoft is constructing data centers on the site with fewer jobs than Foxconn promised. Additionally, the state received a Tech Hub designation under the CHIPS and Science Act, along with a $49 million grant to develop its growing bio-health sector.

Although Evers, a former state school superintendent, has been unable to prevent a significant decline in state support for higher education, Wisconsin's overall competitiveness ranking dropped this year, mainly due to a significant drop in its Education ranking, from No. 9 in 2019 to No. 26 in 2020.