North Carolina remains one of the nation’s top states for business with a second-place ranking in CNBC’s 2024 study of America’s economic strongholds. However, the neighbors to the north booted North Carolina out of the No.1 spot after two years at the top.

CNBC released its annual business scorecard on Thursday, showing that Virginia tops the list, along with North Carolina, Texas, Georgia, and Florida making up the top five states. On the other end, Hawaii, Mississippi, and Alaska are rated the worst states for business. The study scored all 50 states on 128 metrics in 10 expansive categories of competitiveness. 

According to the survey, North Carolina’s strengths are its business friendliness, workforce, and economy. The state’s weaknesses are the cost of living and quality of life. 

North Carolina’s economic profile flaunts a 2.3% GDP growth in Q1 of 2024. The state’s 3.9% unemployment rate is slightly below the national rate of 4% in May. With a gasoline tax of 75.15 cents per gallon, North Carolina currently sits about 11 cents below the national average gas price of $3.54 as well, according to AAA. 

While the score “still pretty good,” according to Donald Bryson, CEO of the John Locke Foundation, the drop from 6th to 11th place in technology and innovation, despite hundreds of millions of dollars in taxpayer funds through NCInnovation appropriations is notable.

Reacting to the survey, Lt. Gov. Mark Robinson said the downward shift represents the difference between having a Republican and a Democrat governor.

“After years of leading the way thanks to common-sense conservative fiscal policy from our lawmakers, the radical policies of Joe Biden, Josh Stein and the Democrat Party on energy, education and more are causing us to lose ground to states with conservative Republican governors,” Robinson said. “We congratulate Gov. Glenn Youngkin and Virginia – but I’ve got news for him: when I’m elected, we are coming for that top spot!”