Harrisburg, PA – Pennsylvania has the 11th best business climate in the country this year and the top business climate in the Northeast, according to new rankings from Site Selection Magazine. Pennsylvania moved up seven spots from Site Selection’s 2024 list, showing how the Shapiro Administration continues to implement the 10-year Economic Development Strategy, increase our competitiveness, and further position the Commonwealth as a leader in economic development, job creation, and innovation.
Site Selection Magazine considers factors such as tax climate, job growth, and number of fast-growing companies that operate in each state when calculating its business climate rankings. Pennsylvania also claimed the eighth spot for most Inc. 5000 companies — the fastest-growing private companies in America.
“This new ranking from Site Selection Magazine underscores that our 10-year economic development strategy is producing real results and new opportunity for Pennsylvanians,” said DCED Secretary Siger. “Under Governor Shapiro’s leadership we are competing again by investing in our economy, strengthening communities, and making government more efficient, and we will continue to find new ways to make Pennsylvania the best state in the nation for businesses to grow.”
The Site Selection Magazine ranking comes less than a month after new analysis from Moody’s Analytics Chief Economist Mark Zandi confirms that Pennsylvania is the only state in the Northeast with a growing economy, continuing a trend of economic leadership under Governor Josh Shapiro and his Administration. That report found that Pennsylvania is among just 16 states nationwide where the economy continues to expand.
Area Development also recently ranked Pennsylvania among the Top 20 Best States for Business, as well as listing the Commonwealth in the ninth spot for “Site Readiness Programs.” Pennsylvania is the only state in the Northeast to make the list.
Since taking office, Governor Shapiro has made Pennsylvania more competitive — cutting permit and licensing backlogs, streamlining approvals, and launching the Commonwealth’s first Economic Development Strategy in nearly two decades. These reforms have helped attract nearly $31.6 billion in private-sector investment and create more than 16,700 new jobs across the Commonwealth.
Over the past month alone, Governor Shapiro and his Administration announced new investments that build on that growth:
- First Quality is investing $142.2 million to expand its manufacturing operations in Mifflin County, creating 91 new jobs and retaining 2,441 existing positions by the company and its affiliates statewide.
- Eos Energy Enterprises is investing $352.9 million to relocate its headquarters from New Jersey to Pittsburgh, creating and retaining 1,000 jobs.
- Mint-X is investing $10.5 million to relocate manufacturing operations from New York to Luzerne County, creating over 100 jobs.
- Imperial Systems, Inc. is investing $8 million to expand its air filtration equipment manufacturing operation in Mercer County — creating 47 new, full-time jobs and retaining 145 current positions.
- Nichols Portland, Inc. is investing $4.7 million to expand its metal forming operations in Elk County — creating 42 new jobs and retaining 285 existing positions.
- In Erie, the Commonwealth is investing $9.5 million through the Redevelopment Assistance Capital Program (RACP) to support the Market House, a new 27,000-square-foot marketplace for local businesses and artisans.
In 2025 through the PA SITES program, the Administration has invested $113.6 million to prepare 29 shovel-ready sites for business growth statewide.
From cutting red tape to securing record-breaking investments like Amazon’s initial $20 billion AI and cloud computing campuses, Governor Shapiro’s focus on competitiveness and results is delivering real growth and opportunity for Pennsylvania.
Learn more about the Shapiro Administration’s efforts to support Pennsylvania’s workers and businesses and spur the economy in the Governor’s 2025-26 budget and discover how the Administration is creating economic opportunity to build a stronger, more competitive economy for all Pennsylvanians.
For more information about the Department of Community and Economic Development, visit the DCED website, and be sure to stay up-to-date with all of our agency news on Facebook, X, and LinkedIn.