The Fortune 500 is arguably the most important and prestigious list in the business world: the largest and most influential companies in the United States, if not the entire planet. Most major corporation aspires to reach the status of the Fortune 500, and any major American city that is home to one or more of these companies stands to reap enormous rewards.

So which cities have proven to be a magnet for the top companies in the nation? Data analytics company Statistica did a recent ranking of Fortune 500 states, with New York and California (unsurprisingly) topping the list. More surprising is the inclusion of Ohio, which may not seem like a likely candidate at first glance. Who else made it into the top ranks, and why? Read on to find out.

New York

New York is the undisputed financial king of the United States, a hub for hundreds of major corporations, second perhaps only to London in terms of financial power. New York has practically been a center for trade and commerce since its formation: its geographical location made it a prime location for incoming European merchants.

Furthermore, the construction of the Erie Canal cemented its position as a port of call for immigrants and entrepreneurs. Though Philadelphia was fiercely competitive for the title, New York eventually triumphed as the undisputed leader in US finance.

The best 500 Fortune companies present in New York comprise huge businesses. They represent the country’s two-thirds portion of GDP and bring almost $13.7 trillion in revenue every year. In 2019, Walmart topped the list, whereas it was Apple in the subsequent years. 

California

The thriving tech and entertainment industry in California alone is reason enough for California to be on the list of Fortune 500 companies — the state is home to some of the largest venture capital firms, tech companies, and research institutions in the United States.

California’s educational landscape also contributes heavily to its desirability: universities like Stanford and UC Berkeley offer a steady pool of top-tier talent ready to enter the workforce. In addition, California’s economy is much more diverse than many other states: not just entertainment but biotechnology, aerospace, and green/renewable energy sectors play a major role in California’s economy.

That last sector, in particular, stands to further reinforce California’s place at the top of the corporate food chain: the state’s dedication to sustainability and clean energy goes hand-in-hand with the changing environmental consciousness of many major corporations.

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Texas

Everything is bigger in Texas, and that includes business. Texas has long been established as one of the major hubs for Fortune 500 companies, including:

• Exxon Mobil
• AT&T
• Philips 66
• Dell Technologies
• Tesla
• Sysco
• Oracle
• USAA
• American Airlines
• Hewlett Packard

In total, Texas sports 54 Fortune 500 headquarters. This is in no small part due to the lack of state income tax, as well as low corporate taxes, which widens the profit margin considerably for corporations. Texas is also centrally located with an impressive transportation infrastructure, as well as a strong energy sector specializing in oil and natural gas.

Also, like California, Texas has its eye on renewable energy, which will further attract high-tech companies to the state. Following this statistic, the statement made by Governor Abbott has rightly justified: “Texas is the headquarters of headquarters.” 

Illinois

Geographical location also plays a part in why Illinois is so attractive to Fortune 500 companies: its Midwest location allows the state to serve as a transportation hub for major rail and air networks, as well as providing access to the vast consumer markets inward from the coast. Chicago is home to the venerable Chicago Mercantile Exchange as well as several other financial institutions.

Chicago, in particular, has a lot to offer in the business world: the diverse economy of the state includes manufacturing, technology, and healthcare. The state also has strong research institutions thanks to educational facilities like Northwestern University and the University of Illinois.

Some of the 37 Fortune 500 companies making their headquarters in Illinois include State Farm Insurance, Boeing, Caterpillar, Allstate, United Airlines, and Deere. The title of “most profitable company” in Illinois goes to the Walgreens Boots Alliance, which totaled $140 billion in revenue in 2021.

Ohio

Ohio is likely not the first thing that comes to mind when people talk about Fortune 500 headquarters, but the reality is the state is attracting more and more major companies. There are several reasons why the state has proven so attractive to big business.

Ohio’s affordability is much higher than in places like California and New York — everything from property, cost of living, and (according to The Zebra’s Ross Martin) Ohio home insurance rates are beneath the national average. Ohio is also ideally suited geographically for certain businesses: the Cincinnati airport, for example, is the seventh-largest cargo hub in the world.

The lack of state income tax on corporate profits is also a major bonus for companies looking to make a home there. The coastal powerhouses of New York and California are unlikely to be supplanted anytime soon when it comes to playing host to Fortune 500 companies — but more states, such as Ohio, maybe on the rise as the corporate landscape continues to evolve.

The Bottom Line

The Fortune magazine has continued jotting down a list of the most established firms in the USA. As usual, New York continues to rule the list with a plethora of high revenue-generating companies. It is further followed by Texas, which is another remarkable name when it comes to counting Fortune 500 industries. 

For small, medium, and large-sized enterprises, the actual test is who can survive as well as thrive in these business conditions. Particularly at times of recession of unpredicted depth settles and length. To our surprise, this year, we also witnessed China making major improvements in the list of Fortune 500 companies.

So, this was all about the states having the most progressive industries. We hope you liked this comprehensive guide. Let us know your opinions in the comment box below.

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