Speaking of sliders, Massachusetts is clearly the big loser (28/6). Pennsylvania(30/12), the most-improved state in 2011 , also plunged in the rankings.

Florida(29/18) and Missouri (27/16) also had bad years, while Iowa (12/9) and Minnesota(11/7) fell out of the top 10.

Role of Key Categories

Dramatic changes in the overall rankings are often the result of changing fortunes in three volatile categories with heavy weightings: Cost of Doing Business, Workforce and Economy.

Wyoming, for instance, jumped 24 spots (10/34) in Cost of Doing Business, while North Dakota moved up 14 spots (10/24) in Workforce.

In the very important Economy category, Alabama(6/39), Tennessee(12/46) and South Carolina(25/49) improved the most, suggesting the recovery is picking up in the Southeast. Indiana(11/30) and Idaho (23/38) also merit mention.

On the down slope were two states at opposite ends of the nation: New Hampshire (34/10) and Hawaii(41/16).

Other big movers (both up and down the rankings) in other categories are:Utah(6/33), Infrastructure & Transportation;Montana (7/25), Cost of Doing Business; Virginia(16/26), a three-time winner, Quality of Life; Ohio (23/13), Education; Delaware (19/1), Business Friendliness; and Rhode Island (10/35), Access to Capital. (We're thinking yachting moguls in Newport.)

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