Area Development Ranks Kentucky Among 2026 Top States for Doing Business
Kentucky ranked 13th in the nation in Area Development magazine’s 2026 Top States for Doing Business. This year’s ranking represents a three-spot jump from 2025, when Kentucky ranked 16th, and is the sixth year in a row the state has placed in the top 20. The ranking shows Louisville and the region are ready to compete for the next wave of investment. Area Development is a leading quarterly publication for site selection professionals.
“This recognition once again shows that Kentucky is a one of the best states in the nation for businesses that are looking to grow and underscores that decisionmakers are taking note,” said Trevor Pawl, CEO of One Louisville. “I am proud of the work our team at One Louisville does everyday to lead these efforts for Louisville and honored to collaborate with our state and local partners and elected officials to drive growth across the Commonwealth.”
Kentucky took top spots in several categories contributing to the overall Top States for Doing Business ranking including:
- 4th in Labor Cost Competitiveness (Workforce, Talent and Innovation);
- 6th in Energy Costs (Cost, Tax and Long-Term Operations);
- 8th in Regulatory Environment (Government Responsiveness and Project Execution);
- 9th in Energy Availability & Grid Capacity
- 10th in Site Readiness Programs (Sites, Utilities and Infrastructure);
- 10th in Permitting and Development Predictability (Government Responsiveness and Project Execution);
- 10th in Overall Cost of Doing Business (Cost, Tax and Long-Term Operations); and
- 10th in Climate Risks and Resilience (Cost, Tax and Long-Term Operations)
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The annual ranking measures how states perform across the factors that matter most to corporate location and facility-investment decisions. For 2026, Area Development surveyed 50 leading site consultants across 20 location factors, ranging from workforce and site readiness to energy, infrastructure, permitting, taxes and operating costs. States were ranked by the number of consultant mentions in each category, with results weighted according to the relative importance of those factors in Area Development’s annual site selection surveys.
“We work hard every year to attract great companies and create more good-paying jobs for our people while keeping our cost of doing business competitive,” said Kentucky Gov. Andy Beshear. “This recognition for the sixth year in a row reflects that Kentucky has the workforce, infrastructure, and speed-to-market needed to continue attracting businesses from all around the world.”
The 2026 analysis from Area Development groups the 20 location factors into four broad dimensions of state competitiveness: Workforce, Talent and Innovation; Sites, Utilities and Infrastructure; Government Responsiveness and Project Execution; and Cost, Tax and Long-Term Operating Risk.
Area Development is a leading publication covering corporate site selection, facility planning and economic development. Its audience includes executives responsible for corporate location and investment decisions, site selection consultants and other professions involved in the development of manufacturing, distribution and other major facilities.
To read the complete 2026 Top States for Doing Business report, visit AreaDevelopment.com.