Leading Locations for 2013: The Recession-Busting MSAs

LEADING LOCATIONS FOR 2013 RESOURCES

A big reason these cities are successful is that they focus on their core assets and work hard to create positive business climates and recruit new companies — especially keeping costs down for both established companies and new startups.

For example, last year Oklahoma City was named the least-costly city to do business among 13 mid-sized U.S. cities, according to KPMG. Oklahoma City’s cost index of 95.5 was significantly lower than the average U.S. index of 100.0. Cost advantages for labor, facility leases, expenses, and taxes contributed to the city’s favorable ranking.

“Oklahoma City’s cost-effectiveness makes this a great place to do business,” says Roy H. Williams, president and CEO of the Greater Oklahoma City Chamber. “Across all business sectors, the low cost of living and the availability of business incentives provides a secure environment for businesses to flourish.”

In South Carolina, Charleston was recently ranked ninth out of 100 U.S. cities for job recovery by the Brookings Institution, as well as 23rd for recovery from the recession. This quick rebound is in large part due to its diversified economy, friendly business climate, work force recruitment and training programs, favorable tax structures, and special discretionary incentives for qualifying projects. The willingness of local and state governments to work pro-actively with business is a big reason North Charleston-based Boeing Company has committed to investing $1 billion in its operations and hiring up to 2,000 workers over the next eight years.

Another recession-busting city that is working hard to build a pro-business tax climate and reduce the cost of doing business is Dubuque, Iowa. Incentives include effective worker training programs and project-specific work force recruitment campaigns. The city’s innovative certificate training and scholarship program entitled “Opportunity Dubuque” was recently honored by the Mid-America Economic Development Council (MAEDC) for its success in upgrading skills and creating a talented work force for advanced manufacturing industries.

“Our robust work force initiatives have allowed us to minimize the risk for key decision-makers considering Dubuque for future business needs and potential work force,” says Rick Dickinson, president and CEO of the Greater Dubuque Development Corporation. “Opportunity Dubuque is a critical work force solution for existing businesses looking to expand, as well as prospective clients weighing Dubuque against other locations around the globe.”

Leading Locations by "Recession Busting" Cities
Big Cities Mid-Sized Cities Small Cities

- City
- State
- 2010
  Population
- Overall
  Rank

- 1.
- Oklahoma City
- OK
- 1,252,987
- 10
- 2.
- Austin-Round Rock-San Marcos
- TX
- 1,716,289
- 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.
- Boston-Cambridge-Quincy (NECTA DIVISION)
- MA
- 2,863,943
- 16
- 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.
- 4.
- Washington-Arlington-Alexandria (METROPOLITAN DIVISION)
- DC-VA
  MD-WV
- 4,377,008
- 19
- "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.
- 5.
- Houston-Sugar Land-Baytown
- TX
- 5,946,800
- 26
- 6.
- Pittsburgh
- PA
- 2,356,285
- 7.
- San Jose-Sunnyvale-Santa Clara
- CA
- 1,836,911
- 34
- 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.
- 8.
- Knoxville
- TN
- 698,030
- 53
- 9.
- Fort Worth-Arlington (METROPOLITAN DIVISION)
- TX
- 2,136,022
- 58
- 10.
- Dallas-Plano-Irving (METROPOLITAN DIVISION)
- TX
- 4,235,751
- 58
- 11.
- San Antonio-New Braunfels
- TX
- 2,142,508
- 60
- 12.
- Tulsa
- OK
- 937,478
- 66
- 13.
- McAllen-Edinburg-Mission
- TX
- 774769
- 68
- 14.
- Charlotte-Gastonia-Rock Hill
- NC-SC
- 1,758,038
- 69
- 15.
- New Orleans-Metairie-Kenner
- LA
- 1167764
- 74
- 16.
- Omaha-Council Bluffs
- NE-IA
- 865,350
- 17.
- El Paso
- TX
- 800,647
- 84
- 18.
- New York-White Plains-Wayne (METROPOLITAN DIVISION)
- NY-NJ
- 11,576,251
- 92
- 19.
- Denver-Aurora-Broomfield
- CO
- 2,543,482
- 96
- 20.
- Bethesda-Rockville-Frederick
- MD
- 1,205,162
- 40
- 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).
- 21.
- San Francisco-San Mateo-Redwood City (METROPOLITAN DIVISION)
- CA
- 1,776,095
- 99
- 22.
- Baton Rouge
- LA
- 802,484
- 102
- 23.
- Albany-Schenectady-Troy
- NY
- 870,716
- 113
- 24.
- Salt Lake City
- UT
- 1,124,197
- 115
- 25.
- Nashville-Davidson--Murfreesboro--Franklin
- TN
- 1,589,934
- 117
- 26.
- Seattle-Bellevue-Everett (METROPOLITAN DIVISION)
- WA
- 2,644,584
- 119
- 27.
- Poughkeepsie-Newburgh-Middletown
- NY
- 670,301
- 127
- 28.
- Louisville-Jefferson County
- KY-IN
- 1,283,566
- 129
- 29.
- Akron
- OH
- 703,200
- 161
- 30.
- Minneapolis-St. Paul-Bloomington
- MN-WI
- 3,279,833
- 162

- City
- State
- 2010
  Population
- Overall
  Rank

- 1.
- Lafayette
- LA
- 273,738
- 2
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 growth in Lafayette's economy over the past several years can be greatly attributed to steady growth in the energy and healthcare industries, which account for 40 percent of the area's GDP," says Lafayette Economic Development Authority president and CEO Gregg Gothreaux. "These industries remain relatively recession-proof and will continue to contribute to Lafayette's steady economic growth, while providing an impetus for our growing finance and entertainment industries."

The vibrant energy sector is a big reason Louisiana Plating and Coatings decided to open a $9 million, 80,000-square-foot facility in Scott, just outside Lafayette, to provide comprehensive coating and plating services for its clients, including many oilfield servicing companies. The plant will employ 120 workers with an annual local payroll estimated at $3 million.
- 2.
- Fargo
- ND-MN
- 208,777
- 5
- 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.
  
  Major employers in town are Microsoft, Hitachi, John Deere, and Tech Mahindra, which set up operations last year. John Deere continues its expansion efforts with a new, $20 million, 90,000-square-foot facility that opened in 2012. Horsch Anderson, a South Dakota company that manufactures agricultural equipment, will build an 110,000-square-foot manufacturing facility in Fargo, investing about $12.5 million and creating 80 jobs. With a combined enrollment of about 30,000 students, the three higher-education institutions in the area — North Dakota State University, Minnesota State University-Moorehead, and Concordia College — work with the private sector to create specific training programs for students who are interested in working in these industries.
  
  The recent addition of an American Airlines flight between Fargo and Dallas/Fort Worth has created better access to both national and international destinations, which improves Fargo's competitiveness as a place to do business. Direct flight options from Fargo include Chicago, Dallas, Denver, Las Vegas, Los Angeles, Minneapolis-St. Paul, Orlando-Sanford, Phoenix-Mesa, and Salt Lake City.
- 3.
- Framingham (NECTA DIVISION)
- MA
- 263,875
- 8
- 4.
- Springfield
- IL
- 210,170
- 11
- 5.
- Waterloo-Cedar Falls
- IA
- 167819
- 12
- 6.
- Lubbock
- TX
- 284,890
- 13
- 7.
- Corpus Christi
- TX
- 428,185
- 16
- 8.
- Waco
- TX
- 234,906
- 21
- 9.
- Abilene
- TX
- 165,252
- 24
- 10.
- Houma-Bayou Cane-Thibodaux
- LA
- 208,178
- 27
- 11.
- Anchorage
- AK
- 380,821
- 27
- 12.
- Columbia
- MO
- 172,786
- 13.
- Sioux Falls
- SD
- 228,261
- 30
- 14.
- Amarillo
- TX
- 249,881
- 32
- 15.
- Columbus
- GA-AL
- 294,865
- 33
- 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.
  
  Key industries in Columbus are insurance, food processing, warehousing and logistics, and manufacturing. Companies with major operations in Columbus include Aflac, Blue Cross/Blue Shield, NCR, W.C. Bradley Company, and Synovus.
  
  Local corporations have made more than $2 billion in investments over the last five years — especially in the automotive sector. Kia Motors, which generates an annual economic impact of about $4 billion for the community, recently completed a $100 million expansion that will boost manufacturing capacity by about 20 percent. Pratt and Whitney's Columbus Engine Center is a major part of its global large commercial engine maintenance, repair, and operations (MRO) network. Exide Technologies, which manufactures advanced batteries for the automobile industry, is also expanding and will create 100 new jobs by the end of 2013.
- 16.
- Killeen-Temple-Fort Hood
- TX
- 405,300
- 17.
- Laredo
- TX
- 250,304
- 41
- 18.
- College Station-Bryan
- TX
- 228,660
- 42
- 19.
- Burlington-South Burlington (NECTA)
- VT
- 198,627
- 43
- 20.
- Tyler
- TX
- 209,714
- 43
- 21.
- Lincoln
- NE
- 302,157
- 45
- 22.
- Jacksonville
- NC
- 177,772
- 46
- 23.
- Holland-Grand Haven
- MI
- 263,801
- 48
- 24.
- Oshkosh-Neenah
- WI
- 166,994
- 49
- 25.
- Fayetteville
- NC
- 366,383
- 52
- 26.
- Trenton-Ewing
- NJ
- 366,513
- 56
- 27.
- Lake Charles
- LA
- 199,607
- 61
- 28.
- Duluth
- MN-WI
- 2279,771
- 63
- 29.
- St. Cloud
- MN
- 189,093
- 64
- 30.
- Rochester
- MN
- 186,011
- 65

- City
- State
- 2010
  Population
- Overall
  Rank

- 1.
- Odessa
- TX
- 137,130
- 1
- 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.
  
  The University of Texas of the Permian Basin, the Texas Tech University Health Sciences Center, and Odessa College all play important roles in expanding the energy and healthcare sectors in Odessa, including research into wind, solar, clean coal, and nuclear energy technologies.
  
  In 2012 Odessa placed 95th on Forbes list of the best small places for business and careers. Although the Odessa economy grew at the torrid pace of 14.4 percent in 2012, the growth rate is expected to be closer to 6 percent this year. The improved economy has stimulated a number of construction projects in the city, including three new elementary schools, $68 million in capital improvements, and new science and nursing buildings at the University of Texas of the Permian Basin; a new engineering building is also being discussed.
- 2.
- Bismarck
- ND
- 108779
- 3
- 3.
- Midland
- TX
- 136,872
- 7
- 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.
  
  With a booming energy economy, plans are under way for the "Energy Tower" — a 53-story skyscraper that will be the sixth-tallest building in Texas and include offices, residential space, shopping, dining, and a five-star hotel. Midland will also be the headquarters for XCOR Aerospace's new commercial spaceflight and R&D center. XCOR manufactures reusable rocket engines for major aerospace prime contractors and is the designer, manufacturer, and operator of the Lynx, a fully reusable, high-performance suborbital space vehicle that is designed to safely carry two persons or scientific experiments to the edge of space and back.
  
  "XCOR's Research and Development Center headquarters will add economic diversity to Midland, along with $12 million in new payroll and capital investment over the next five years and an estimated average annual wage of over $60,000 per job," says Laura Roman, chairman of the Midland Development Corporation.
- 4.
- Dubuque
- IA
- 93,653
- 6
- 5.
- Fairbanks
- AK
- 97581
- 7
- 6.
- Casper
- WY
- 75450
- 9
- 7.
- Columbus
- IN
- 76,794
- 14
- 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.
  
  Local employers draw from a 35-mile commuting population of 1.7 million and an 884,000-person labor force. With 35 percent of local employment tied directly to manufacturing, the one-county MSA is among the top 3 percent of all counties for manufacturing strength and has more mechanical engineers per worker than any other U.S. city.
  
  Columbus ranked fourth in the nation for its GDP growth in 2010 and fifth highest in 2011 among all U.S. metros, according to the U.S. Bureau of Economic Analysis. Columbus has averaged one expansion announcement per month since 2010, resulting in more than 1,800 direct jobs and $170 million in capital investments. Among the newest additions is the Phoenix Group, which has selected Columbus for a $150 million, 468,000-square-foot distribution facility.
- 8.
- State College
- PA
- 153,990
- 68
- 9.
- Cheyenne
- WY
- 91,738
- 20
- 10.
- Morgantown
- WV
- 366,513
- 22
- 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."
  
  The Morgantown MSA provides a small-town atmosphere and lifestyle, with big city advantages. Morgantown is the home of West Virginia University (WVU), one of the leading research universities in the country.
  
  Morgantown is growing its healthcare and high-tech sectors by anchoring the "I-79 High Tech Corridor." Recent developments along the corridor include Morgantown's National Energy Technology Laboratory, Center for Entrepreneurial Studies and Development, National Biometric Security Center, National Research Center for Coal and Energy, and the Software Engineering Research Center.
  
  According to a March 2012 report by the WVU Bureau of Business and Economic Research, the Morgantown MSA is the "most balanced and dynamic metropolitan economy in the state" with a job-growth rate that is expected to average 1.8 percent per year during the next five years.
- 11.
- Texarkana
- AR
- 136,027
- 23
- 12.
- Williamsport
- PA
- 116,111
- 24
- 13.
- Elizabethtown
- KY
- 119,736
- 35
- 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.
  
  Manufacturing industries include plastics and automotive. Akebono Brake, one of the world's top manufacturers of brake noise, vibration, and harshness (NVH) control systems for the automotive industry, located its North American headquarters in Elizabethtown. Another major employer, Metalsa Structural Products, makes frames for Ford F-150 and plans to undertake a $72 million expansion of its Elizabethtown operations.
  
  In 2011 Elizabethtown landed India-based Flex Films, a plastics company that makes polyester film for packaging. Its new plant, which started production in January 2013, is the company's first operation in the U.S. Its output of biaxially-oriented polyester (BoPET) film will be the largest of any plastics company in the country.
- 14.
- La Crosse
- WI-MN 7
- 133,665
- 37
- 15.
- San Angelo
- TX
- 111,823
- 38
- 16.
- Lewiston
- ID-WA
- 60,888
- 39
- 17.
- Rapid City
- SD
- 126,382
- 40
- 18.
- Hinesville-Fort Stewart
- GA
- 77,917
- 47
- 19.
- Sandusky
- OH
- 77,079
- 50
- 20.
- Jonesboro
- AR
- 121,026
- 50
- 21.
- Lawton
- OK
- 124,098
- 54
- 22.
- Jefferson City
- MO
- 149,807
- 55
- 23.
- Owensboro
- KY
- 114,752
- 57
- 24.
- Iowa City
- IA
- 152,586
- 62
- 25.
- Corvallis
- OR
- 85,579
- 66
- 26.
- Pocatello
- ID
- 90,656
- 70
- 27.
- Victoria
- TX
- 115,384
- 71
- 28.
- Ames
- IA
- 89,542
- 76
- 29.
- Sherman-Denison
- TX
- 120,877
- 77
- 30.
- Alexandria
- LA
- 153,922
- 78

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Leading Locations for 2013 Results

Data

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