Virginia slips to No. 2 in business ranking

Virginia has been toppled from its pedestal as the nation's best state for business, according an annual survey by CNBC.

After taking top honors in the financial network's ranking in 2007 and 2009, Virginia has fallen behind Texas, whose economy has proved resilient during the downturn.

States were measured across 10 key categories. Virginia fell in "education" as class sizes rose and spending dropped. It was also hurt the "economy" category due to pockets of "severe joblessness," the network said.

“The recession of the past two years has hit manufacturing rather hard,” Tom Schaad of WAVY-TV told the network.

Virginia’s best showing was “business friendliness,” which ranks the states’ legal and regulatory climates, the network said.

Virginia is “chock-full of business opportunities, from imports and exports to government contracts in the state that is home to the Pentagon,” CNBC said.

Rounding out the top five behind Texas and Virginia were Colorado, North Carolina and Massachusetts.

Virginia can still boast another title – Forbes has ranked the state the “best for business" for four years running.

-- Mike McPhate