LEADING LOCATIONS FOR 2013 RESOURCES
...especially when it comes to spending huge amounts of time and money setting up a new business location. That's why it is important to locate the operation in a city or region that knows how to grow its economy and has the track record to prove it.
For this year's Leading Locations study, Area Development analyzed economic and work force data for 380 metropolitan statistical areas (MSAs) — both for 2011–2012 (recent performance) and 2007–2012 (duration of the Great Recession). The goal was to identify which cities across America are emerging from the recession as economic front-runners — and why.
Sometimes the reason for success is as simple as being in the right place at the right time (for example, being located in the middle of the oil shale boom). For most cities, though, sustained success depends on responding effectively to the many factors that impact economic performance, as well as proactively creating healthy business climates and investing in the future. This type of multilevel support helps local companies be more competitive with offshore locations, keeping profits and jobs at home.
Included in our report is an interactive table that will allow you to view the rankings of all 380 MSAs. The report includes an overall ranking which is based on 21 economic indicators and, we also create category rankings which are based on sub-groups of indicators from the 21 indicators used for the overall results (refer to the methodology to learn more.) You can use the filters to easily segment MSAs by region, population size and state or, you can use the search field to locate a specific MSA. In the expanded version of the chart you can see how each city ranks in every one of the 21 inidcators we use in the study.
-
- City
- State
- 2010
Population - Overall
Rank
-
- 1.
- San Jose-Sunnyvale-Santa Clara
- CA
- 1,836,911
- 2
-
Known as the heart of the Silicon Valley, the San Jose MSA has a rich tradition of high-tech entrepreneurship, innovation, and discovery. About $8 billion in venture capital funding is invested in the region every year, driving R&D and commercialization efforts, especially in the fields of nanotechnology, communications, and information and computer technology (ICT). Major players include Cisco Systems, Samsung, eBay, Google, and Yahoo.
Top universities in the area — San Jose State University, University of California-Berkeley, and Stanford University — attract some of the best student talent in the country, turning out an impressive number of highly skilled scientists and engineers. As a result of this stellar work force, strong economic growth, and the creation of high-paying jobs, San Jose also placed first in the 2012 Milken Institute Best-Performing Cities Index.
Recent announcements include Samsung Semiconductor's expansion of its research and development campus and FICO's plans to relocate from Minneapolis to San Jose to be closer to Silicon Valley's engineering talent pool. "By operating from the Silicon Valley, we can more readily build upon our company's deep talent pool, collaborate with other big thinkers in the world's premier technology hub, and help our customers compete more effectively in the era of big data," says FICO's president and CEO William Lansing.
-
- 2.
- Austin-Round Rock-San Marcos
- TX
- 1,716,289
- 5
-
Key industries in the Austin MSA are advanced manufacturing, electronics, multimedia technology, clean energy and power technology, life science and biotechnology, and data centers. According to the Brookings Institution, Austin ranked first overall among the 100 largest U.S. metros based on amount recovered from pre-recession peak to the present, based on jobs, unemployment, gross product, and housing prices. Further, Austin placed second on the 2012 Milken Institute Best-Performing Cities Index.
Much of this economic growth is driven by improved performance in chip-making and systems design. Dell, IBM, Apple, and Samsung are among the largest technology employers. Backed by a $21 million investment through the Texas Enterprise Fund and an $8.6 million grant from the city of Austin, Apple will undertake a $304 million expansion of its facilities, eventually creating 3,600 well-paying jobs. Samsung's $4 billion expansion of its semiconductor manufacturing operations will increase its total investment in Austin to $13 billion since 1996. GM plans to build a 500-employee innovation center and eBay, another major Austin employer, will hire about 1,000 software engineers over the next 10 years.
With this kind of growth in high-technology fields, it is no surprise that Austin has also recently been named by the Business Journals as one of the top three cities for young adults to establish careers in post-recessionary America.
-
- 3.
- Houston-Sugar Land-Baytown
- TX
- 5,946,800
- 10
-
- 4.
- Boston-Cambridge-Quincy (NECTA DIVISION)
- MA
- 2,863,943
- 13
-
With over $4 billion in new development projects totaling more than 10 million square feet under construction, Boston is booming. The Innovation District along the South Boston waterfront has attracted over 200 new companies and 4,000 new jobs across a variety of industries, including technology, life sciences, design, and advertising. Vertex Pharmaceuticals is currently building its $800 million, 1.1-million-square-foot global headquarters in the heart of the district.
The Boston MSA enjoys an international reputation for healthcare and medicine. According to Jones Lang LaSalle, nearly 75,000 people in the Boston MSA are employed in the pharmaceutical, biotechnology, and medical device industries — second only to San Diego. Boston's 22 hospitals and 34 colleges and universities are important anchors in the city's economy. The city is also the leading recipient for National Institute of Health funding in the U.S. — in fact, five of the top eight NIH-funded hospitals are within the Boston MSA.
An outstanding educational system and high quality of life are just two reasons why Boston has such a diverse and youthful population — about one third of the city's population is between the ages of 20 and 35. Many of these energetic, young professionals work in the high-tech growth sectors of advanced manufacturing, clean energy, defense, IT, and life sciences/biomedicine.
-
- 5.
- Oklahoma City
- OK
- 1,252,987
- 16
-
- 6.
- Dallas-Plano-Irving (METROPOLITAN DIVISION)
- TX
- 4,235,751
- 18
-
- 7.
- Denver-Aurora-Broomfield
- CO
- 2,543,482
- 19
-
- 8.
- San Francisco-San Mateo-Redwood City (METROPOLITAN DIVISION)
- CA
- 1,776,095
- 21
-
- 9.
- Seattle-Bellevue-Everett (METROPOLITAN DIVISION)
- WA
- 2,644,584
- 24
-
- 10.
- Tulsa
- OK
- 937,478
- 25
-
- 11.
- Washington-Arlington-Alexandria (METROPOLITAN DIVISION)
- DC-VA MD-WV
- 4,377,008
- 27
-
-
"DC" has one of the most diverse economies in the country. The federal government employs about one third of all workers in the city and provides contract work to hundreds of companies, especially in high-tech fields like aeronautics, defense, telecommunications, electronics, IT, and other services. Other important employment sectors are industry trade associations, financial groups, and scientific research through federal organizations, as well as top research universities and medical centers. Tourism, the second-largest industry in the city, is on the rebound — nearly19 million visitors pumped about $5 billion into the local economy last year.
With all this activity, it is no surprise that economic development and commercial construction within the city are booming. According to the Washington, D.C., Economic Partnership's 12th annual DC Development Report, about 21.5 million square feet of commercial space is under construction, valued at about $9.5 billion. Residential construction is also hot, with over 10,000 units being built — the most since 2001.
-
-
- 12.
- Charleston-North Charleston-Summerville
- SC
- 664,607
- 28
-
- 13.
- Fort Worth-Arlington (METROPOLITAN DIVISION)
- TX
- 2,136,022
- 29
-
- 14.
- Salt Lake City
- UT
- 1,124,197
- 39
-
- 15.
- Bethesda-Rockville-Frederick
- MD
- 1,205,162
- 45
-
Major industries in the Bethesda MSA include telecommunications, energy, technology, defense, aerospace, and healthcare. Both the National Naval Medical Center and the National Institutes of Health are located in Bethesda. Also headquartered here is Lockheed Martin, a global aerospace and security firm that conducts cutting-edge research and development and works closely with the federal government on major projects.
Bethesda is top-ranked for its educated, highly skilled work force. For example, the city has one of the highest per capita concentrations of doctorate degrees in the country. It ranked second in education according to Forbes 2012 "Best Places for Business and Careers" report. In March 2013, the city's unemployment rate was 5.1 percent.
Located in Montgomery County, Maryland, Bethesda is one of the most important economic drivers in the Greater Washington area. In May 2013 Montgomery County reported its work force had increased by nearly 25,000 jobs since 2010, a 3.9 percent growth rate. About 20 percent of these new jobs were in professional, scientific, and technical services, making these sectors the county's top job gainers. Companies that added the most jobs in Bethesda include Capital One (300 jobs) and the Henry M. Jackson Foundation (200 jobs).
-
- 16.
- San Antonio-New Braunfels
- TX
- 2,142,508
- 48
-
- 17.
- Nashville-Davidson--Murfreesboro--Franklin
- TN
- 1,589,934
- 50
-
- 18.
- Cincinnati-Middletown
- OH-KY-IN
- 2,130,151
- 51
-
- 19.
- Omaha-Council Bluffs
- NE-IA
- 865,350
- 58
-
- 20.
- Boise City-Nampa
- ID
- 616,561
- 60
-
- 21.
- Minneapolis-St. Paul-Bloomington
- MN-WI
- 3,279,833
- 62
-
- 22.
- Knoxville
- TN
- 698,030
- 73
-
- 23.
- Portland-Vancouver-Hillsboro
- OR-WA
- 2,226,009
- 78
-
- 24.
- Akron
- OH
- 703,200
- 79
-
- 25.
- Baton Rouge
- LA
- 802,484
- 85
-
- 26.
- Louisville-Jefferson County
- KY-IN
- 1,283,566
- 88
-
- 27.
- Columbia
- SC
- 767,598
- 91
-
- 28.
- New York-White Plains-Wayne (METROPOLITAN DIVISION)
- NY-NJ
- 11,576,251
- 92
-
- 29.
- Phoenix-Mesa-Glendale
- AZ
- 4,192,887
- 98
-
- 30.
- San Diego-Carlsbad-San Marcos
- CA
- 3,095,313
- 102
-
- 31.
- Pittsburgh
- PA
- 2,356,285
- 110
-
- 32.
- Charlotte-Gastonia-Rock Hill
- NC-SC
- 1,758,038
- 111
-
- 33.
- Honolulu
- HI
- 953,207
- 113
-
- 34.
- St. Louis
- MO-IL
- 2,812,896
- 115
-
- 35.
- Santa Ana-Anaheim-Irvine (METROPOLITAN DIVISION)
- CA
- 3,010,232
- 117
-
- 36.
- Greenville-Mauldin-Easley
- SC
- 636,986
- 121
-
- 37.
- Oakland-Fremont-Hayward (METROPOLITAN DIVISION)
- CA
- 2,559,296
- 122
-
- 38.
- Toledo
- OH
- 651,429
- 123
-
- 39.
- Wichita
- KS
- 623,061
- 137
-
- 40.
- New Orleans-Metairie-Kenner
- LA
- 1,167,764
- 142
-
- 41.
- Cleveland-Elyria-Mentor
- OH
- 2,077,240
- 143
-
- 42.
- Raleigh-Cary
- NC
- 1,130,490
- 148
-
- 43.
- Oxnard-Thousand Oaks-Ventura
- CA
- 823,318
- 151
-
- 44.
- Orlando-Kissimmee-Sanford
- FL
- 2,134,411
- 155
-
- 45.
- El Paso
- TX
- 800,647
- 158
-
- 46.
- Wilmington (METROPOLITAN DIVISION)
- DE-MD-NJ
- 705,670
- 160
-
- 47.
- Tacoma (METROPOLITAN DIVISION)
- WA
- 795,225
- 164
-
- 48.
- Milwaukee-Waukesha-West Allis
- WI
- 1,555,908
- 166
-
- 49.
- Kansas City
- MO-KS
- 2,035,334
- 167
-
- 50.
- Tucson
- AZ
- 980,263
- 169
The Lafayette MSA was ranked 24th out of 200 metro areas in the Milken Institute's Best Performing Cities Index for 2012 — a jump of 69 spots over last year's placement. The city also ranked first in current job growth and second in five-year wage growth on Milken's list. And, according to the Bureau of Labor Statistics, the Lafayette MSA experienced the largest increase in employment in the nation from December 2011 to December 2012 with an 8.6 percent gain.
The economy is on the move in Fargo, with employment in manufacturing growing by 4 percent, in back office by 5 percent, and in IT by an impressive 8.6 percent from 2011 to 2012. The unemployment rate for the Fargo-Moorhead MSA is about 4.7 percent, almost half the national unemployment rate of 8.5 percent during the recession.
Founded in 1700 about 20 miles from Boston, Framingham is a thriving, diverse community that is frequently recognized for its high quality of life and well educated work force. Money magazine ranked it 36th among the top 100 small cities in its "2012 Best Places to Live" study.
Over the last two years the Lakeshore Region of Michigan has generated $41 million in industrial investment, creating 96 jobs and retaining 2,662 jobs. This region, which is anchored by Holland and Grand Haven, continues to outpace both the Midwest and the nation in sales growth. Over 77 percent of the region reported sales gains, compared to 59 percent for the Midwest and 57 percent for the U.S.
Located in the heart of wine country, Santa Rosa is the county seat of Sonoma County. About 35 miles to the south is Petaluma. Key industries in Santa Rosa include tourism, healthcare (Kaiser Permanente, St. Joseph Health System), and high technology (Agilent Technologies, Medtronic). About half of Petaluma's 30,000 residents are employed in the services sector, especially finance, insurance, and real estate.
Burlington-South Burlington is located on the eastern shore of Lake Champlain. Major industries include financial services, education, healthcare, advanced manufacturing, and tourism. Corporate headquarters include Ben & Jerry's, Bruegger's, Burton Snowboards, Dealer.com, and Seventh Generation. Two of the city's largest employers are Fletcher Allen Health Care and the University of Vermont.
Located about 90 miles north of Seattle, Bellingham was ranked in 2012 as the 56th "Best Small City in America for Business and Careers" by Forbes magazine. The city continues to invest in itself, including a $106 million plan to redevelop its waterfront. Major industries include healthcare, agribusiness, and manufacturing.
Boulder has a lot going for it — not only does it nestle up to the Rocky Mountains, it scores well for quality of life, robust education, and economic diversity. Key industries include information and communications technology, aerospace, biotechnology, data storage, energy, photonics, and advanced manufacturing. Major companies are Cisco, GE, Google, Lockheed Martin, Merck, IBM, Northrop Grumman, and Ball Aerospace — which just completed a 90,000-square-foot, $75 million expansion that doubles its capacity to design, test, and ship satellites and other equipment.
Located in the Chattahoochee Valley about 100 miles south of Atlanta, Columbus is the third-largest city in Georgia. With Fort Benning located just to the southeast, Columbus is a busy military town. When the populations of Alabama cities Auburn and Opelika are added to form the Columbus MSA, the work force swells to nearly 300,000. Many of these highly skilled workers are former soldiers who are in high demand because of their excellent training, discipline, and strong work ethic.
This 200,000-person MSA is in the heart of Bayou Country, along the Gulf of Mexico in southern Louisiana. It covers two parishes — Lafourche and its parish seat of Thibodaux, and Terrebonne with its main cities of Houma and Bayou Cane.
Columbus is known for its manufacturing expertise and engineering strengths. Fortune 200 diesel-engine–maker Cummins Inc. is headquartered here, employing more than 7,000 workers. The city is also a national leader in foreign direct investment — 21 Japanese companies, including NTN, Enkei, and Toyota Industrial Equipment, employ nearly 5,000 workers. Toyota Material Handling USA recently announced it would relocate its headquarters from California to Columbus. Other global companies with an R&D presence in town include Faurecia (emission control systems) and child safety seat manufacturer Dorel Juvenile Group.
Located in the energy-rich Permian Basin, Odessa's economy is fueled by oil and gas — especially from unconventional shale plays. Oil and gas companies include Halliburton, Weatherford CPS, and Holloman Construction. Recent announcements include Chevron's plans to build a $100 million campus and Pioneer Natural Resources' plans for a $50 million office building.
According to a recent "Enterprising States" report by the U.S. Chamber of Commerce, North Dakota placed first for economic performance based on exports, business climate, talent pipeline, infrastructure, innovation, and high-tech job growth. A big contributor to these positive numbers was the capital city of Bismarck.
According to the United States Census Bureau, the fastest-growing metropolitan area in the country is Midland, with a 4.6 percent increase in population between July 2011 and July 2012. Located 300 miles west of Dallas, Midland is in the Permian Basin, where deep horizontal drilling has created another oil and gas rush.
Located along the Mississippi River at the intersection of Iowa, Wisconsin, and Illinois, Dubuque has a long history of manufacturing. Products include heavy equipment, windows and doors, furniture, plumbing, and metal products. Leading companies are Deere and Company, Eagle Window and Door, A.Y. McDonald Manufacturing Company, and Flexsteel Industries. Other growing employment sectors are education, book publication, healthcare, and financial services. IBM, which provides technology services, employs about 1,300 Dubuque-area residents.
Ranked as the 57th-best place in the country for business and careers in 2012 by Forbes, Elizabethtown's economy is anchored by manufacturing and the nearby military base at Fort Knox. The Elizabethtown MSA, which includes all of Hardin and LaRue counties, has a total population of about 155,000. The GDP in the Elizabethtown MSA grew by 6.1 percent in 2011, placing it 11th out of 366 metros in the U.S. It three-year GDP growth rate from 2008–2011 was an impressive 30 percent — best in the state.
Cheyenne, Wyoming's capital city, anchors the north end of the Front Range Urban Corridor. Key economic forces for the city are the nearby F.E. Warren Air Force and the Burlington Northern Santa Fe and Union Pacific railroads. The larger Cheyenne MSA has a population of about 130,000 people. A well-developed education system, including skills-specific training programs at Laramie County Community College, the University of Wyoming, and Colorado State University, provides a well-trained workforce for local businesses. Leading employers are Sierra Trading Post (600 employees) and Lowe's Companies (500).
Located between Cleveland and Toledo on Lake Erie, Sandusky is the county seat of Erie County with an MSA population of about 115,000. The city also has one of the best-protected harbors on the Great Lakes and one of the largest coal ports — two big reasons it has a long, successful history of shipping and heavy manufacturing.
According to the Milken Institute, Morgantown was the second-best performing small city in 2012. For the same year, Forbes ranked Morgantown seventh on its top-10 list of the "Best Cities for Business and Careers."