opefully, this issue will get to you before you head to the polls on November 7th to vote in a congressional and/or gubernatorial election. That’s because you can use this issue to bone up on whether those in power in your area helped or hurt your state’s business climate. Our annual round-up of state legislative activity is a very useful tool for gauging politicians’ success at meeting the needs of their constituents in the business world.
There are lots of reasons to vote for one candidate over another – his or her views on social issues or level of support for military operations under way, for example. Why not apply another litmus test, such as this one: Is my state more business-friendly or less so since so-and-so came into office? I don’t just mean whether there are more incentives for capital investors than there used to be. An area can be plenty business-friendly and not offer incentives at all.
To what extent is your governor or senator or Congressman or state legislator engaged in your industry and its issues? If a peer in your industry from elsewhere in the country told you he was considering a location in your state, would you be genuinely happy for him, or would you feel compelled to explain the pitfalls of locating a facility there? What level of receptivity did you or your industry get when you last explained to a political leader why it’s harder to compete in your state than in one nearby? Has the candidate you’re considering supporting with your vote demonstrated any interest in reducing the corporate tax burden? (The point has been made in this column in the past that high business taxes are a key driver of manufacturing going outside the country.) Does he or she understand the importance of skilled labor to an area’s ability to compete in the global marketplace? On the state or national level, is this someone you want articulating in the capitol the business-climate issues most important to you and your industry?
As is the case with most issues of Site Selection, several governors were interviewed for articles in this issue, including Gov. Mike Easley (Dem.) of North Carolina.
His state ranks first in our annual Business-Climate Ranking for the second year in a row and for the fifth time in six years. Gov. Easley is not running for re-election this year, but Tennessee Gov. Phil Bredesen (Dem.) is. My interview with him is in the Tennessee Spotlight, and his understanding of the business world and government’s role therein is readily apparent.
“Business-friendly” is a subjective notion, but it generally refers to the state’s tax structure, ease of permitting processes, the regulatory apparatus pertaining to your industry, availability of work-force training resources and so forth. Your state or district either is business-friendly or it is not. Let that help govern your choice.
Till next time,
Mark Arend