NEW ORLEANS – Louisiana ranked No. 8 nationally in the 2026 Prosperity Cup, an annual measure of state economic competitiveness compiled by Site Selection Magazine, while also placing second in the South Central region behind Texas.
Texas claimed the top overall ranking for the second consecutive year, followed by North Carolina, Ohio, Georgia, Indiana, Virginia and North Dakota. Alabama ranked No. 9, and Tennessee rounded out the top 10.
The Prosperity Cup is considered one of the economic development industry’s more closely watched state rankings. Unlike Site Selection’s Governor’s Cup, which focuses primarily on corporate facility project counts, the Prosperity Cup evaluates broader economic competitiveness using a 10-factor index.
Louisiana’s top 10 placement comes as the state continues to pursue and secure large-scale projects across the industrial, manufacturing and technology sectors. Louisiana Economic Development has described 2025 as the largest year of investment and job creation in state history, with more than $61 billion in capital investment and more than 9,500 direct new jobs announced.
Louisiana also ranked No. 8 in last year’s Prosperity Cup.
How the Prosperity Cup Is Calculated
The annual index evaluates all 50 states using a range of inputs that reflect economic activity, business sentiment, cost competitiveness and workforce readiness. Among the metrics considered are total new and expanded facilities, total capital investment, total new jobs created, tax climate rankings and workforce credential counts.
Conway Projects Database — Corporate facility investment data tracked through the Conway Projects Database, a proprietary tracker of economic development projects that captures where companies are locating or expanding operations. The dataset is used within the economic development industry to measure project activity and investment trends across states. The dataset is used by site selectors and economic development groups to track where companies are investing.
Louisiana recently expanded its site-readiness efforts through the launch of the FastSites program, which selected 19 sites across 16 parishes for infrastructure and development funding aimed at creating more shovel-ready industrial locations.
Site Selection Survey — The Prosperity Cup index also draws on executive sentiment from Site Selection’s business climate survey. The survey asks business leaders, investors and site selectors to state how they view each state’s competitiveness, including factors like infrastructure, workforce skills and the regulatory environment.
Tax Foundation — The 2025 Tax Foundation State Business Tax Climate Index, which evaluates state tax structures and overall business tax burden, including corporate, individual, sales and property taxes. The rankings are used to compare how competitive states are from a cost and tax policy perspective.
Louisiana enacted sweeping tax reforms in late 2024 that replaced the state’s graduated corporate income tax with a flat 5.5% rate and repealed the corporate franchise tax beginning in 2026, changes state leaders said were intended to improve business competitiveness and simplify the tax structure.
Workforce Readiness — The Prosperity Cup workforce readiness metrics are drawn from ACT and are based in part on National Career Readiness Certificates, which measure applied workplace skills such as math, reading and problem-solving. The data serves as an indicator of how prepared a state’s workforce is to meet employer needs, particularly in middle-skill and technical roles.
Louisiana has continued to emphasize workforce development through programs such as LED FastStart, which has been ranked among the nation’s top customized workforce training programs by Business Facilities for more than a decade.
The Fast Forward program administered through the Louisiana Community and Technical College System supports workforce programs aligned with regional industry needs across a range of fields, with greater New Orleans region institutions such as Delgado Community College and Nunez Community College offering programs tied to healthcare, maritime operations, advanced manufacturing, process technology, information technology, skilled trades and other regional workforce needs.
Prosperity Cup Ranking Reflects Ongoing Efforts
Louisiana’s No. 8 ranking marks its second consecutive year at that level nationally and its third straight year in the national top 10, reflecting continued momentum across the state’s economic development efforts.
“The top 10 ranking comes on the heels of historic economic progress in Louisiana. Louisiana Economic Development recognized 2025 as the largest year of investment and job creation in state history, with more than $61 billion in capital investment and over 9,500 direct new jobs created at an average salary of more than $90,000. This month, Louisiana crossed another threshold: following the final investment decision for Commonwealth LNG in Cameron Parish, total announced capital investment since January 2024 has surpassed $100 billion,” said Michael Hecht, president and CEO of Greater New Orleans Inc.
