Northwest Arkansas has again been recognized as one of the top places to do business, coming in at No. 6 on Business Facilities’ 2025 Best Business Climate ranking for mid-sized metros. The recognition highlights years of strategic growth and regional collaboration: efforts that are expected to pay off even more in the years ahead.
The ranking evaluates factors such as economic growth, regulatory environment, talent availability, infrastructure and industry diversity. According to the publication, metro areas like Northwest Arkansas and Little Rock are positioned for continued improvement, with Northwest Arkansas poised to climb even higher.
“This kind of recognition reflects the long-term investments we’ve made in workforce, infrastructure and policy,” said Nelson Peacock, president and CEO of the Northwest Arkansas Council. “But more importantly, we’re laying the groundwork now for even greater impact down the road.”
Among the most significant developments this year was the passage of a comprehensive economic development guide known as “Impact,” developed through a statewide working group led by Secretary of Commerce Hugh McDonald. The package included updates to the state’s incentive tools and legislation to modernize the Arkansas Industrial Development Act (IDA), which is a key mechanism used to support strategic real estate and infrastructure projects that the private market typically doesn’t pursue on its own. Both the Arkansas Economic Development Commission and Governor Sarah Huckabee Sanders’ Office referenced the working group’s final recommendations in shaping the legislation.
While the updated tools won’t go into effect until later this year, they were shaped in part by a working group of economic developers convened by the state. Of the more than 20 participants, four represented Northwest Arkansas organizations. The Northwest Arkansas Council played a direct role in shaping and supporting the package through participation in the working group, aligning with the Council’s 2025 Legislative Agenda and coordination with a broader regional agenda led by the Rogers-Lowell Area Chamber of Commerce.
“IDA legislation and the broader economic development package opens the door for special opportunities that the private sector won’t take on,” said Ron Maloney, executive director of economic development at the Northwest Arkansas Council and a member of the state’s economic development working group. “We prefer to call them strategic opportunities, such as projects in advanced manufacturing, life sciences or sustainable infrastructure,” Maloney said. “These are projects that can move the needle for the state and help diversify our regional economy.”
While the recent legislative changes aren’t reflected in this year’s rankings, their impact is expected to become clear in 2026 and beyond.
“We’ve had consistent GDP growth and population increases,” Maloney said. “If that continues, and if we keep making the investments needed to support our growth and build on our strong quality of life, I wouldn’t be surprised to see us move even higher next year,” Maloney said.
The full 2025 Metro Rankings are available at Business Facilities.
