Gov. Beshear: Kentucky Ranks Among 2026 Top States for Doing Business
FRANKFORT, Ky. (Oct. 5, 2026) – Today, Gov. Andy Beshear announced that Kentucky has yet again earned a strong ranking in Area Development magazine’s Top States for Doing Business. This year, Kentucky took 13th place nationally, and the state has ranked in the top 20 every year of this administration.
“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 Gov. 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.”
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);
- 10th in Site Readiness Programs (Sites, Utilities and Infrastructure);
- 10th in Permitting and Development Predictability (Government Responsiveness and Project Execution);
- 8th in Regulatory Environment (Government Responsiveness and Project Execution);
- 10th in Overall Cost of Doing Business (Cost, Tax and Long-Term Operations);
- 6th in Energy Costs (Cost, Tax and Long-Term Operations); and
- 10th in Climate Risks and Resilience (Cost, Tax and Long-Term Operations).
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.
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.
Kentucky’s investment and job creation furthers what has been the best six-year period for economic growth in state history.
Since the beginning of his administration, Gov. Beshear has announced nearly 1,400 private-sector new-location and expansion projects totaling over $54 billion in announced investments, creating more than 71,000 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history and $31 billion more than the next highest total.
Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky’s position as a national leader in automotive and energy storage system battery production: Ford Motor Co.’s nearly $3 billion, 2,200-job commitments in Louisville, as well as its $2 billion, 2,100-job project at the Kentucky 1 plant in Hardin County; Shelbyville Battery Manufacturing’s $712 million investment, creating 1,572 jobs in Shelby County; and Toyota’s $1.3 billion investment in Scott County, among others.
In February, the Governor announced Kentucky once again set an all-time record for products shipped globally, with $51.6 billion in exports in 2025, representing a 7.65% increase over 2024.
Unemployment rates fell in all 120 counties between December 2024 and December 2025.
The Governor’s administration also secured the largest General Fund budget surplus and Rainy Day Fund. In 2023, Kentucky recorded over 2 million jobs filled for the first time ever and has stayed above that number ever since.
In addition, Kentucky has secured rating increases from major credit rating agencies Fitch Ratings, S&P Global Ratings and Moody’s Investors Service.
Earlier this year, Site Selection magazine ranked Kentucky in the top five nationally and second in the South Central region for economic development projects per capita in its 2025 Governor’s Cup rankings. In June, Area Development magazine awarded the commonwealth a Silver Shovel designation in its 2025 Shovel Awards, which highlight states for attracting high-value investment projects that will create a significant number of new jobs in their communities.
Gov. Beshear also announced a new initiative, called New Kentucky Home, to increase economic investment, attain and attract talent, and increase tourism across the state.
Information on Kentucky’s economic development efforts and programs is available at NewKentuckyHome.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
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