Admittedly, the race was close. And, no, I don’t mean the one between George W. and Al Gore. I’m talking about our Hottest Cities survey. This year, the race for the top spot was almost too close to call between Atlanta, Ga., and Phoenix, Ariz. — but not quite.

When all the ballots were counted, Atlanta took the spotlight while Phoenix came in second. Last year, the two cities were in reverse order.

For the third straight year, Expansion Management polled over 75 prominent site selection consultants for their choices of the best cities for expanding or relocating manufacturing companies.

This year, we made the list of choices as complete as possible, including all 331 metro areas in the United States, as well as space to write in alternate cities not listed.

We asked the consultants to consider factors such as business environment, work force quality, operating costs, incentive programs, worker training programs, and ease of working with local officials.

While we’ve always said this survey is not science, it does give an idea of how a city is perceived by those who seek out good business locations for a living. And perception counts for a lot in this business.

This year’s Hottest Cities winners include many familiar faces from last year’s list, as well as some newcomers.

Atlanta’s southern charm
The phrase “Hotlanta” has been floating around in recent years and there seems no better time than now to use it, especially since Atlanta crowns the 2001 Hottest Cities list.

The southern city has been alive with activity for quite some time now and its success is certainly no secret.

“Metro Atlanta has added nearly 1 million people and 650,000 jobs over the past 10 years,” said Sam Williams, president of the Metro Atlanta Chamber of Commerce. “This region leads the nation with in-migration, and high-tech is leading that growth rate, three times faster than other business sectors.”

Atlanta is known for Hartsfield International Airport, the Atlanta Braves major league baseball team, and its football team, the Atlanta Falcons.

Likewise, the city garnered headlines when it hosted the 1996 Centennial Olympic Games and the Super Bowl in 1994.

However, other than glittering city life, Atlanta’s work force is the crucial component to much of its success these days.

“It is the first question asked, and the most important priority,” said Williams. “It factored into CNN and TBS deciding to expand by over 1 million square feet, investing $1.2 billion and adding 3,800 new jobs.

“It factored into WorldCom and Motorola announcing the development of corporate campuses and hiring thousands. It factored into Merial LTD deciding to relocate its corporate headquarters, R&D, and manufacturing operations here.”

Contributing to Atlanta’s labor pool are 170,000 students from 43 colleges and universities, which turn out about 35,000 graduates each year.

Additionally, 60,000 to 70,000 newcomers migrate into the area annually.

People, people, people
Other factors certainly come into play, but a competent and available work force will score the most points in a company’s site search today.

In the western half of the United States, it’s Phoenix (No. 2) that continually garners high marks from consultants as a lucrative business locale.

What makes this desert spot so attractive to businesses year after year?

For one, the city is loaded with modern and contemporary infrastructure, especially in the areas of transportation and telecommunications. The sunny, mountain-flanked valley grows more and more popular with each passing year, and is especially successful when it comes to attracting people — young, middle-aged and retired.

This all adds up to plenty of people power for Phoenix-area businesses.

“Greater Phoenix is projected to be the second fastest growing job market over the next 25 years, and according to the Census Bureau, Arizona boasts the second highest population increase over the past decade,” said Rick Weddle, president and chief executive officer of the Greater Phoenix Economic Council. “These factors, anchored in the rapid job and population expansion, keeps Greater Phoenix active in site selection and corporate decision makers’ minds. “A quality work force is the number one factor for companies seeking the best markets and opportunities to expand. In a low unemployment environment, the regions and cities that have the available skilled and educated labor pool will attract the most attention and opportunities. People move to Greater Phoenix because they like the quality of life and it’s a place where jobs are available.”

For the Greater Richmond-Petersburg, Va. area (No. 11), work force is also viewed as a shining asset.

“First, Greater Richmond is blessed with a wonderful East Coast location midway between New York and Florida,” said Gregory H. Wingfield, president of the Greater Richmond Partnership. “We also have a motivated and productive work force that is constantly being replenished by our eight colleges and universities, trailing spouses of new hires, and a growing number of exiting military personnel.”

The region was put to the test a few years ago when two semiconductor companies announced they were going to hire several thousand workers.

“Starting at ground zero, we were able to prepare needed engineers through a new Engineering School at Virginia Commonwealth University and train the technicians through SEMATECH-approved curriculum at our community colleges,” said Wingfield.

“This model has been formalized in a Greater Richmond Partnership and Greater Richmond (No. 11) Chamber of Commerce initiative entitled ‘Workforce One’, and duplicated for other badly needed job training in the construction, financial services and retail sectors.”

Like the Richmond-Petersburg area, Jacksonville, Fla. (No. 4), benefits from former military personnel.

“Work force issues are number one in economic development today and here Jacksonville has a competitive advantage,” said Jerry Mallot, executive vice president of economic development for the Jacksonville Chamber of Commerce. “Each year between 4,000 and 5,000 people exit the Navy locally. Eighty percent of them — and their dependents — stay in Jacksonville and enter the local work force.

“They come out with very good skills, a great work ethic and make model employees. When you add to that the volume of new residents in the region, it ensures an expanding work force to meet the needs of businesses. Our employers rave about the productivity and quality of our people.”

Location advantages: logistics and beyond
While work force is generally thought of as the king of concerns for expanding and relocating companies, physical location still plays a major role.

Cities in the central United States have an inherent logistical advantage. They are about equidistant from either coast and the large number of people that occupy the seaboards. This could be one factor that explains why Kansas City, Mo.-Kan. (No. 16), Lawrence, Kan. (No. 43), Oklahoma City (No. 30) and Dallas, Texas (No. 5), in particular, showed up on our Hottest Cities list.

Kansas City is literally at the middle of the nation, and is home to the second largest rail hub, next to Chicago.

And the Kansas City Metro and Lawrence, just west of Kansas City, are close to two major thoroughfares, Interstates 35 and 70. Interstate 35 also winds its way down to Oklahoma City and Dallas, and both cities benefit from good highway access and air transport proximity.

FedEx and American Airlines have large facilities at the Fort Worth Alliance Airport, which is strictly an industrial airport. In addition, the Dallas/Fort Worth International Airport is renowned for its connections to the rest of the world.

While this central advantage can only be boasted by a select few, there are plenty of other cities in the South, and along the East and West Coasts, that have their own logistical advantages.

For San Antonio (No. 32), proximity to a market south of the U.S. border looms large.

“Access to Mexico and U.S. markets is a big advantage, and our infrastructure and utilities are state-of-the-art,” said Mario Hernandez, president of the San Antonio Economic Development Foundation.

Hernandez added that San Antonio is now the eighth largest city in the nation, and that the cost of living is 10 percent below the national average.

“And San Antonio was just named the 14th fastest growing city in technology, according to the American Electronics Association,” he said.

Quality of life plays a major role
It can be quiet and subtle or mountainous or artsy. No matter how you define quality of life, it does play a part in site location decisions. It certainly may not be the top factor, but it usually figures in somewhere.

And to each their own — no two companies see quality of life through the same set of glasses.

For some, a laid-back small-town mentality, with some urban assets, can be quite appealing.

“Kansas City’s a perfect blend of urban, big-league business assets, with small-town ease of living, charm and affordability,” said Martin Mini, senior vice president with the Kansas City Area Development Council. “Increasingly, it’s the equilibrium all Information Age workers seek.”

Kansas City Metro-headquartered firms like Sprint, Hallmark and H&R Block have found much to love about barbecue, jazz and art deco architecture.

The work force is also bundled into that package.

“Workers typically don’t leave Kansas City, and they don’t leave employers as easily as workers in other markets,” said Mini.

The city of Dover, Del. (No. 26), tells much the same story.

“Dover, over the past few years, has been recognized by several national magazines and newspapers for its quality of life, employment and job growth,” said Daniel W. Wolfensberger, director of the Central Delaware Economic Development Council. “In addition to our excellent location in the mid-Atlantic region — within one hour of two international airports, two hours from New York City, two hours from Washington D.C. — the community has excellent primary and secondary educational institutions and a strong and diversified economy.

“The Dover MSA has a population of about 65,000 people. It is the smaller size of Dover, coupled with all the major amenities available right here or in close proximity, that make it so attractive,” said Wolfensberger.

Across the nation, on the West Coast, the Portland-Vancouver, Ore.-Wash. area (No. 7), ranked high on our list this year, and locals feel that the culture is in large part responsible.

There are more than 1,200 technology companies, from Intel to Epson, in Portland alone, where wine country beckons, as well as Pacific Ocean beaches, nearby mountains and deserts. And day-to-day life presents appealing attributes.

“The road system isn’t without congestion, but average commute times are less than a half-hour; more than 90 percent of children in elementary through high school attend public schools; and the housing market offers a range of types and prices of housing opportunities that allow nearly all residents an affordable choice,” said Michael Ogan, manager of business development for the Portland Development Commission.

A combination of assets
One might think that the Southeast would be the region to garner the highest marks from consultants. Especially since there seems to be constant activity in the area, where the auto industry, in particular, is in perpetual motion.

And while, overall, the Southeast does make a bold showing, the cities which make up the Top 10 on our list are a diverse group. They hail from the South, the Southeast, the Southwest, the Northwest and Midwest. In other words, they are scattered across the board, literally.

This only goes to prove that there are no perfect locations, only locations that are perfect for your company.

Perhaps it is the easy southern atmosphere of Nashville, Tenn. (No. 6), that your business is seeking.

Or maybe it’s the vibrant economy of the young and bustling Fort Worth-Arlington, Texas (No. 18) region.

The sunny beach life of cities like Jacksonville, Fla., and the Norfolk-Virginia Beach-Newport News, Va.-N.C. (No. 34), area may be just the environment you desire in your work force attraction and retention efforts.

High-tech companies and other industries have found the around-the-clock lifestyle in the Las Vegas, Nev. (No. 24), area to their liking. Not to mention the tax climate, which boasts no personal income tax, no corporate income tax, no franchise tax on income, and no unitary tax.

Other cities, such as Birmingham, Ala. (No. 17), are heralded thanks to their state’s work force training programs. Alabama’s work force training, which is provided at no cost to companies, is an enviable attribute and strong advantage for growing businesses.

But the bottom line is always this: There is a city out there that will meet all the specific needs of your particular business. With a little faith and a lot of due diligence, you can find your own Hot City.

Rachael Hedgcoth is the associate editor of Expansion Management Magazine. You can contact her at rhedgcoth@penton.com.