Category

Strengths (S)

Weaknesses (W)

Opportunities (O)

Threats (T)

Ease of Doing Business

Low Barrier to Entry: Remarkably easy to set up a business; no state-level license fee and no state sales tax. Strong Workforce Potential: Ranked 23rd nationally for workforce availability (up from previous years).

Declining Competitiveness: Overall business ranking has plummeted (e.g., to 39th in CNBC's 2025 ranking), driven by high costs. Unfriendly Business Climate: Ranks near the bottom nationally for "business friendliness" (47th) due to regulatory burdens.

Policy Improvement Focus: Increasing political acknowledgement of the importance of a thriving private sector, which could lead to future legislative improvements.

High Operating Costs: Among the highest cost-of-doing-business and cost-of-living rankings, pushing existing manufacturing and tech firms to expand in lower-tax states (e.g., Idaho, Texas, Utah).

Domestic Manufacturing

Global Tech/Advanced Manufacturing Hub: Home to major semiconductor/high-tech firms (Silicon Forest), with early production of Intel's most advanced chip node (18A) being developed and manufactured in the state. High-Value Exports: Semiconductors are the state's top exported goods, driving high-paying "traded-sector" jobs.

Job Contraction in Key Sectors: Manufacturing employment remains significantly below pre-pandemic levels (down 7.5% to 8.4%), with job losses concentrated in durable goods and other high-paying traded sectors.

Federal CHIPS Act Funding: Opportunity to secure massive federal investments to bolster and expand the domestic semiconductor supply chain, further solidifying its status as a microelectronics leader.

Economic Headwinds: Manufacturing is highly sensitive to elevated interest rates, which continue to dampen investment and hiring in capital-intensive sectors. Out-migration of Firms: High regulatory and tax costs incentivize traded-sector companies to move expansion/production to other states.

Sustainability Initiatives

Strong Clean Energy Foundations: Leader in hydroelectric power generation (4th largest producer in the US) and has phased out coal; significant non-hydro renewable (wind/solar) generation. Landmark Energy Policy: Passed the POWER Act (HB 3546) to ensure large energy users (e.g., data centers) pay their fair share of grid costs, promoting equity and resilience.

Missed GHG Goals: Missed its 2020 greenhouse gas reduction goal and is currently not on track for its 2035 and 2050 targets. Underfunded Resilience: Failed to fund critical climate resilience programs (e.g., for heat pumps, community resilience hubs) in the 2025 legislative session.

"Green" Economic Benefits: Models suggest achieving accelerated climate goals could create thousands of new jobs and generate over $120 billion in net cumulative economic and health benefits.

Federal Policy Reversal: Highly exposed to the risk of losing federal climate action grants and a rollback of supportive environmental policies at the national level.

Balance of Trade

Rare Goods Trade Surplus: One of only 11 US states that exports more goods than it imports, underscoring its competitive manufacturing and primary goods sectors. Diversified Portfolio: Exports include high-value goods (semiconductors, machinery, transportation equipment) and primary products (agriculture, timber), plus significant service exports.

Vulnerability to Tariffs: Legacy industries like agriculture and timber are highly exposed to retaliatory tariffs and shifting foreign demand.

Strong USMCA Growth: Exports to Mexico have surged, making it a top trade partner and highlighting the potential for further growth via North American supply chain integration.

Global Trade Uncertainty: The high dependence on global trade exposes the entire economy to risks from trade wars, protectionist policies, and geopolitical instability.