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Area Development - Site Selection, Facility Planning and Workforce Development

Leading Locations for 2016 Methodology

Q2 2016
Area Development ranked 394 MSAs across 21 economic and workforce indicators. These 21 indicators were pulled from seven (7) data sets (sub-categories) originating from three sources: the Bureau of Labor Statistics, U.S. Census American Community Survey and Moody’s Analytics.

Each MSA earned a ranking within each of the 21 indicators based on its statistical performance within that indicator. The MSA with the best performance in a certain indicator earned a ranking score of "1" and the MSA with the worst performance earned a ranking score of "394."

To calculate "Overall Ranking," we added the total ranking across all indicators for each MSA and then divided by the total number of indicators to reach an average ranking. The MSA with the lowest average earned the #1 overall ranking, while the MSA with the highest average ranked #394 overall.

We also calculated overall ranking across four categories: "Prime Workforce," "Economic Strength," "Five Year Growth" and “Year-Over-Year Growth.” To calculate the overall ranking within these four categories, we produced an average ranking across only certain indicators. An indicator did not have to be exclusive to our category rankings. For instance, the "Employment Growth Net 5-Year Change as Percentage of Population" is used within both the "Economic Strength" and "Five Year Growth" categories.

We have also produced a set of lists, using our overall results and category results, grouping the MSAs by region and size. We ranked the Top 5-20 MSAs in each region (defined by Area Development Online taxonomy), and we also ranked the top MSAs across three size groups: "Small" (population < 160,000), "Mid-sized" (population 160,000-600,000), and "Big" (population > 600,000). We ranked the cities within each size group against our overall rankings and "Prime Work Force," "Economic Strength," "Recession-Busting Cities" and “Year-Over-Year Growth” categories.

Leading Locations for 2016 Results

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Sub-Categories and Indicators Used in the Leading Locations Report

Sub-Category:"Young, Prime Workforce"

    Indicators:
  • 2014 workforce 18-44 years with Bachelor's degree or higher as % of total workforce1
  • Workforce 18-44 years with Bachelor's degree or higher as % of total work force1 3-year change rank (2014-2011)
Data Set Sources: GEOGRAPHICAL MOBILITY IN THE PAST YEAR BY EDUCATIONAL ATTAINMENT FOR CURRENT RESIDENCE IN THE UNITED STATES; 2011 and 2014 American Community Survey 5-Year Estimates - U.S. Census Bureau American Community Survey; EMPLOYMENT STATUS 2011 and 2014 American Community Survey 5-Year Estimates - U.S. Census Bureau American Community Survey

Sub-Category:"Prime Workforce Inward Migration"

    Indicators:
  • Total inward migration for 2014 with Bachelor's degree or higher as a % of total workforce rank1
  • Total inward migration Bachelor's degree or higher as a % of total workforce1 3-year change rank (2014-2011)

Data Set Sources: EDUCATIONAL ATTAINMENT 2011 and 2014 American Community Survey 5-Year Estimates - U.S. Census Bureau American Community Survey; EMPLOYMENT STATUS 2011 and 2014 American Community Survey 5-Year Estimates - U.S. Census Bureau American Community Survey

"Economically vital as well as physically or culturally appealing regions do best in attracting an educated workforce from outside regions."


Sub-Category:"Local Area Unemployment Rate"

    Indicators:
  • December 2015 local area unemployment rate rank
  • Local area unemployment rate 1-year change rank (December 2015-December 2014)
  • Local area unemployment rate 3-year change rank (December 2015-December 2012)
  • Local area unemployment rate 5-year change rank (December 2015-December 2010)
Data Set Source:Local Area Unemployment Rate, U.S. Bureau of Labor Statistics

Sub-Category: "Wage and Salary Growth"

    Indicators:
  • Average hourly earnings 1-year rate change rank (December 2015- December 2014)
  • Average hourly earnings 3-year rate change rank (December 2015- December 2012)
  • Average hourly earnings 4-year rate change rank (December 2015-December 2011)
Data Set Source:State and Area Average Hourly Earnings (Private) 2011 to 2015, U.S. Bureau of Labor Statistics

Sub-Category:"Per Capita GDP"
    Indicators:
  • Per capita real GMP December 2015 rank3
  • Per capita real GMP 1-year rate change rank (December 2015- December 2014)3
  • Per capita real GMP 3-year rate change rank (December 2015 - December 2012)3
  • Per capita real GMP 5-year rate change rank (December 2015 - December 2010)3
Data Set Source: Gross Metro Product: Total, (Bil. $, SAAR) - BEA; BLS; Native Frequency: Quarterly; Moody's Analytics. Moody's Analytics is a leading independent provider of data, analysis, modeling and forecasts on national and regional economies, financial markets, and credit risk.

"A rise in per capita GMP signals growth in the economy and tends to translate as an increase in productivity."


Sub-Category: "Manufacturing Job Growth"
    Indicators:
  • Manufacturing/goods-producing employment 1-year net change as % of population rank (December 2015 - December 2014)2
  • Manufacturing/goods-producing employment 3-year net change as % of population rank (December 2015 -December 2012)2
  • Manufacturing/goods-producing employment 5-year net change as % of population rank (December 2015-December 2010)2
Data Set Source:Bureau of Labor Statistics Current Goods Producing Employment Statistics - CES (non-seasonally adjusted)

"A measure of growth in the goods-producing sectors, primarily consisting of manufacturing and energy."


Sub-Category:"Job Growth"
    Indicators:
  • Employment growth net 1-year change as percentage of population rank (December 2015 - December 2014)2
  • Employment growth net 3-year change as percentage of population rank (December 2015 -December 2012)2
  • Employment growth net 5-year change as percentage of population rank (December 2015 -December 2010)2
Data Set Source:U.S. Bureau of Labor Statistics Current Total Non-Farm Employment Statistics - CES (Non-seasonally adjusted)

Ranking Categories

Overall Ranking

Each MSA is ranked based on the average sum total ranking across all seven (7) data sets comprising 21 indicators.

Prime Workforce
    Indicators:
  • 2014 workforce 18-44 years with Bachelor's degree or higher as a percentage of total workforce1
  • Workforce 18-44 years with Bachelor's degree or higher as a percentage of total work force 3-year change rank1 (2014-2011)
  • Total inward migration 2014 with Bachelor's degree or higher as a percentage of total work force rank1
  • Total inward migration with Bachelor's degree or higher as a percentage of total work force 3-year change rank(2014-2011)
  • Average hourly earnings 1-year rate change rank (December 2015 - December 2014)
  • Average hourly earnings 3-year rate change rank (December 2015 - December 2012)
  • Average hourly earnings 4-year rate change rank (December 2015 -December 2011)


Economic Strength
    Indicators:
  • Per capita real GMP December 2015 rank3
  • Per capita real GMP 1-year rate change rank (December 2015- December 2014)3
  • Per capita real GMP 3-year rate change rank (December 2015 - Dec 2012)3
  • Per capita real GMP 5-year rate change rank (December 2015 - December 2010)3
  • Manufacturing/goods-producing employment 1-year net change as % of population rank (December 2015 - December 2014)2
  • Manufacturing/goods-producing employment 3-year net change as % of population rank (December 2015 -December 2012)2
  • Manufacturing/goods-producing employment 5-year net change as % of population rank (December 2015-December 2010)2
  • Employment growth net 1-year change as percentage of population rank (December 2015 - December 2014)2
  • Employment growth net 3-year change as percentage of population rank (December 2015 -December 2012)2
  • Employment growth net 5-year change as percentage of population rank (December 2015 -December 2010)2
  • December 2015 local area unemployment rate rank
  • Local area unemployment rate 1-year change rank (December 2015-December 2014)
  • Local area unemployment rate 3-year change rank (December 2015-December 2012)
  • Local area unemployment rate 5-year change rank (December 2015-December 2010)


5 Year Growth
    Indicators:
  • Employment growth net 5-year change as percentage of population rank (December 2015 -December 2010)2
  • Local area unemployment rate 5-year change rank (December 2015-December 2010)
  • Manufacturing/goods-producing employment 5-year net change as % of population rank (December 2015-December 2010)2
  • Per capita real GMP 5-year rate change rank (December 2015 - December 2010)33
  • Average hourly earnings 4-year rate change rank (December 2015 -December 2011)


Year-Over-Year Growth
    Indicators:
  • Employment growth net 1-year change as percentage of population rank (December 2015 -December 2014)2
  • Local area unemployment rate 1-year change rank (December 2015-December 2014)
  • Manufacturing/goods-producing employment 1-year net change as % of population rank (December 2015-December 2014)2
  • Per capita real GMP 1-year rate change rank (December 2015 - December 2014)3
  • Average hourly earnings 1-year rate change rank (December 2015 -December 2014)
  • 1 Workforce total is provided for each year by the same 2010-2013 American Community Survey 5-Year Estimate used for educational attainment metrics.
  • 2 Job growth is measured against the population estimate of each metropolitan area based on U.S. Census statistics for that year.
  • 3 Per Capita GMP is measured against the population estimate of each metropolitan area based on U.S. Census statistics for that year.

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