Perryman: SOS

Comparing the performance of state economies is very difficult. There are no sophisticated timers and cameras to identify winners as in an Olympic sprint. Instead, many different lists are released which rely on a variety of methods and criteria. One such measure, compiled annually by CNBC, has been around for quite a while and takes a broader look than the others. As such, it tends to garner a lot of attention. This year’s assessment saw Texas advancing several spots, but the good news is not all good.

Over the prior three years, Texas fell to fourth, then fifth, and then sixth. In 2024, Texas reversed the downward spiral, rising to third behind Virginia and North Carolina. While the bronze-medal position is clearly an accomplishment, the state ranked last in one critical category and 35^th in another.

CNBC evaluated 128 metrics within 10 categories, assigning weights based on their analysis of each state’s economic development marketing materials “to see which selling points come up the most.” Those categories mentioned most frequently were awarded more points. In essence, states are ranked based on the attributes they use to sell themselves.

The heaviest weight was given to Infrastructure, which includes not only what we generally think of (roads, waterways, rail, bridges, and air travel) but also availability and price of broadband, reliability of the electrical grid, and drinking water supplies, among others. Texas ranked 26^th on this measure, which is not surprising given the current challenges to the grid and long-term water issues.

The second heaviest-weighted category is Workforce (where Texas ranks first), followed by Economy (where the state ranks second). The next measure is Quality of Life, where Texas is number 50.

This category focuses specifically on issues associated with health care, including a shortage of primary care providers in Texas and the extremely large concentration of uninsured residents (by far the highest percentage and absolute numbers in the nation). The measure emphasized the state’s laws which limit gender rights, restrict reproductive rights, and permit other types of discrimination.

Texas also ranked 35^th in Education. Key criteria include test scores, spending, and numbers of colleges and historically Black colleges and universities. Clearly, falling short in this arena has profound implications for the future. You can’t be 35^th in education and maintain a high Workforce designation.

These concerns are unlikely to diminish economic performance in the near term; many listings based on contemporaneous activity (such as CEO surveys and numbers of major projects) consistently place Texas at the apex. However, these shortcomings inevitably threaten long-term sustainability. A state that lags in infrastructure, education, health care, and fairness cannot perpetually remain at the forefront of progress. These warnings must be heeded! Stay safe!

Editor’s Note: The above guest column was penned by Dr. M. Ray Perryman, president and chief executive officer of The Perryman Group (www.perrymangroup.com). The Perryman Group has served the needs of over 3,000 clients over the past four decades. The above column appears in The Rio Grande Guardian International News Service with the permission of the author. Perryman can be reached by email via: shelia@perrymangroup.com.

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