Ohio's Stealth Ascendancy: Why Midwest Infrastructure Investments Are the New Frontier

Ohio's ascent to the fifth position in CNBC's 2025 “Top States for Business” rankings marks a pivotal shift in the U.S. economic landscape. Once a symbol of Rust Belt decline, the state has transformed into a magnet for capital, driven by strategic investments in infrastructure, cost-conscious policies, and a revitalized workforce. For investors, this is a signal: the Midwest's underappreciated potential is now a quantifiable opportunity. Let's dissect how Ohio's policy agility is creating undervalued equity and real estate plays—and why this matters for portfolios seeking growth beyond coastal tech hubs.

The Infrastructure Advantage: Ohio's Logistics Network

Ohio's #1 ranking in infrastructure is no accident. The state's strategic geography—straddling major rail lines, interstates, and the Great Lakes—has been fortified by public-private partnerships like the All Ohio Future Fund and JobsOhio's Site Inventory Program. These initiatives have created over 100 shovel-ready industrial sites, offering businesses access to power, water, and logistical hubs without the regulatory red tape of other regions.

The result? A $24.2 billion pipeline of new projects, including Honda and LG's $4.2 billion battery plant and Intel's $20 billion semiconductor complex. For real estate investors, this means Ohio's industrial and logistics sectors are primed for growth. Industrial REITs with exposure to the Midwest—such as Prologis (PLD) or Rexford Industrial (REX)—could benefit as companies seek scalable, low-cost locations.

Cost Efficiency: A Tax-Free Boost to Profit Margins

Ohio's #2 ranking for cost of doing business hinges on its absence of corporate income tax and the expansion of its Commercial Activity Tax (CAT) exclusion to $6 million. This policy shields 90% of businesses from state-level levies, a stark contrast to high-tax states like California (#46 in cost rankings) and New York (#38). Pair this with Ohio's #4 national cost-of-living ranking, and you have a recipe for attracting capital to sectors like manufacturing and tech.

Workforce Development: Fueling the New Economy

Ohio's population grew by 75,000 net inroads between 2019–2023, driven by job seekers drawn to its STEM-focused education programs and apprenticeship initiatives. The state now ranks #3 in workforce development, with partnerships like the Dayton Development Coalition training engineers for companies like Joby Aviation (which chose Ohio for its eVTOL facility).

This talent pool is critical for sectors like advanced manufacturing and clean energy. For equity investors, Ohio's policy bets on innovation—such as its $1 billion investment in innovation districts—suggest opportunities in industrials (e.g., Caterpillar (CAT)), semiconductors (Intel (INTC)), and logistics (FedEx (FDX)).

Why Ohio Beats the Competition

While Ohio is ascending, states like New Jersey (#49 in infrastructure) and Illinois (#47 in cost) are slipping due to regulatory overreach and fiscal mismanagement. Ohio's contrast—streamlined permitting, business-friendly tax codes, and targeted infrastructure spending—creates a policy moat that attracts capital to its cities.

For real estate, this translates to undervalued urban markets like Cincinnati and Cleveland, where industrial vacancy rates are below the national average, and rents are rising. Meanwhile, coastal regions like Boston and Seattle face overvaluation and regulatory stagnation.

Investment Playbook: Capitalize on Ohio's Momentum

1. Industrial REITs: Allocate to REITs with Midwest exposure (e.g., PLD, REX). Ohio's logistics hubs are prime for growth in e-commerce and manufacturing.
2. Equity Plays: Look to companies with Ohio operations: Intel (INTC), Honda (HMC), and regional banks like KeyCorp (KEY), which fund local projects.
3. Sector Focus: Ohio's policy push into semiconductors, EVs, and advanced manufacturing aligns with global megatrends.

Conclusion: The Midwest's Quiet Revolution

Ohio's rise isn't just a regional story—it's a blueprint for how states can leverage infrastructure, cost discipline, and workforce innovation to attract capital. For investors, this is a chance to diversify beyond crowded markets. The data is clear: Ohio isn't just catching up—it's leading.

The question isn't whether to consider Ohio—it's whether you can afford not to.