Chamber News

Central Rhode Island, Cranston, East Bay, East Greenwich, East Providence Area, Newport County, North Central, Northern Rhode Island, North Kingstown,           South Kingstown & Greater Westerly-Pawcatuck            Chambers of Commerce

Please see the below links regarding the annual survey by business channel CNBC on top states for business. The first link brings you to the main page of the survey. The second link brings you to the survey itself. The rankings are based largely on ten components, each with a different weighting.

Unfortunately for Rhode Island, we once again rank near the bottom; this time at number 49. Our lowly ranking is due primarily to the scores that the state received in several areas; cost of business, economy, transportation, business friendliness and cost of living. As you know, we have made significant progress in the last few months (legislatively) in dealing with some of these key areas. Namely, cost of business and business friendliness. These are two categories where, when CNBC compiles its rankings, heavy weight is placed on tax policy and regulatory affairs for the purpose of overall score. Our advances in tax policy and regulatory affairs apparently came too late this year to have an impact on our overall ranking. (I have an inquiry in to CNBC to check on the timeframe used in composing the survey.) Also hurting the state’s overall ranking was our dead last ranking in the category of economy.

I strongly differ with some of the approaches used to compile the overall rankings. I particularly note that Massachusetts ranked an overall fifth place, yet Rhode Island is within very close range of Massachusetts in the top two categories used to compile the overall rankings; cost of doing business and workforce. In the third most weighted category, quality of life, Massachusetts is listed at six and Rhode Island 33. With due respect to our friends in Massachusetts, I beg to differ. Because of the weighting for that category however, that significantly affects the overall ranking. (Add the fact that our “legislative advances” came too late and we fall completely out of contention.)

I thought you would be interested in this survey because despite what we may have deserved in past rankings concerning business competitiveness, this ranking from CNBC is certainly undeserved.  The Chamber Coalition and other like minded groups, as well as many elected officials, have worked hard this year to reverse the negative reputation that the state had concerning business competitiveness. Perhaps the Administration should consider some type of rebuttal.

As always, thank you for your support of the Chamber/Chamber Coalition.

http://www.cnbc.com/id/37554006/

http://www.cnbc.com/id/37516043