Expansion Management's annual Hottest Cities ranking is a lot like college football - at least to some extent. The nation's best football teams become the best by recruiting great players and then instilling strong fundamentals.
The country's top cities do a superior job of recruiting you - the expanding or relocating company - and then provide you with the fundamentals (work force, tax rates, transportation, etc.) to succeed.
As with the game of football, with its staples of blocking and tackling, the backbone of our survey remains the same. For the fourth straight year, we confidentially polled over 75 site selection consultants to find out their picks for the top cities for relocating and expanding manufacturing companies, based on the consultants' broad-based knowledge and projects they have worked on.
We provided the consultants with a list of all 331 Metropolitan Statistical Areas (MSAs) and asked them to rank the MSAs, considering such things as business environment, work force quality, operating costs, incentive programs, worker training programs and ease of working with local officials.
Since our survey is one of perception, it's a sure bet that the results will fluctuate a bit from year to year. Our survey showcases consistently top-ranked cities each year - much like a few college football programs seem to be at the top year after year - but it also has some surprises, just like the team that seemingly comes out of nowhere to finish in the top 10 of the football polls.
This year, Jacksonville, Fla., grabbed top honors, the second time at No. 1 for the city.
Jacksonville scores winning points
Jacksonville, which has ranked in the top 10 in every year of the survey, also ranked first in 1999. The city's sunny quality of life, ample work force and transportation advantages make it a favorite for growing companies time and again.
"Companies that examine the Jacksonville area in detail tend to focus on several key elements," said Jerry Mallot, executive vice president of the Jacksonville Chamber of Commerce. "The strong and motivated work force, a lower than average cost of doing business and the high quality of life that attracts talent to the area and allows them to relocate key employees are critical factors for companies."
But it is the area's abundant work force that is especially enticing to companies.
"One of our competitive advantages is the presence of the Navy, which annually separates 4,000 talented and motivated individuals into our work force," said Mallot. "In addition, we draw on a number of universities in the region, including the University of North Florida and the University of Florida, for outstanding college and advanced degree graduates in a variety of business and knowledge-based disciplines."
The story of Craig/is Ltd. exemplifies Jacksonville's appeal to companies. The subrogation business process outsourcing company, examined several sites in the Southeast in its quest for a national headquarters location before choosing Jacksonville. Craig/is Ltd. is operating in downtown Jacksonville, and expects to employ 200 people within two years.
"Jacksonville was more of a courtesy call when the search began," said Mallot. "But Jacksonville quickly became the city of choice once they had a chance to visit, examine all the options and understand where they would truly like to live and do business.
"We really enjoy the pleasant "surprise" that occurs when companies come to Jacksonville with relatively little information about who we really are," said Mallot. "I should know; it happened to me, and is what drew me to Jacksonville."
Team approach appeals to companies
It's pretty obvious that winning football teams share some similar qualities. Successful teams perform as cohesive units and exhibit a positive attitude. These qualities can go a long way in ensuring success throughout the season.
These same qualities also make cities more attractive to expanding and relocating companies. A manufacturing company executive will enjoy his/her experience with a community that steps up to the plate, helps cut red tape and fosters good relationships between local public and private entities.
In the end, when the hard data might be equal, this can translate into a company choosing the community that is easiest to work with.
In the Midwest city of Indianapolis, Ind. (No. 7), businesses find community leaders who are ready and willing to assist in any way possible.
"The Indianapolis region has the successful partnerships among the business, government and non-profit sectors to generate the dynamic change conducive to economic development," said Michael M. Lawson, president and CEO of The Indy Partnership. "Our central location, diverse economy, low operating costs and access to two of America's top-ranked research institutions make central Indiana an ideal location to grow a business."
Communities where local leaders tend to work together often stand apart. Efficient and timely assistance for an expanding or relocating company can only be an asset to the site selection process.
"As a regional economic development organization, the ability of our 15 communities, other partners, and Maricopa County to work hand-in-hand is truly unique," said Rick Weddle, president and CEO of the Greater Phoenix (No. 5) Economic Council. "Not many other metropolitan areas can bring together the economic development directors from their various communities and have them collaborate effectively on working toward regional goals.
"Because of this, we have a location assistance process that is very effective and that enables us to quickly provide consultants and prospective companies the information they need to make location decisions."
Over the past year, Target, Intel, Catalytica Energy Systems, Toyota Financial Services and USAA were among the many companies to relocate or expand operations in Greater Phoenix.
Communities with a wealth of incentives for growing companies to tap into also tend to be favorite locations for businesses. The process of relocating or expanding is expensive for a company. Incentives that offset costs turn into location tiebreakers for companies choosing a new site.
Albuquerque, N.M. (No. 3), has a gold mine of incentives tailored for manufacturing companies. The city offers industrial revenue bonds, a manufacturing investment tax credit, an in-plant training program, no inventory taxes and a technology jobs tax credit.
Recruiting and training foster overall success
Great football teams don't get that way overnight. The players condition their bodies during the off-season, always with an eye to the future. For many of our hot cities, investment in the local work force pays dividends when it comes to business success.
Many of the communities that made our ranking are known for their ample supply of available labor and innovative worker training programs.
Take, for instance, Atlanta, Ga. (No. 10). The Peach State is praised for its Quick Start training program that offers sophisticated customized training to companies. In addition, the state offers expedited education for technology workers through its Intellectual Capital Partnership Program (ICAPP).
Metro Atlanta has no shortage of people who reap the rewards of the state's educational system and then help propel Georgia businesses to success.
"The metro area has attracted more newcomers to the area than any other metro area in the nation for the last two decades, accounting for 60-70,000 newcomers annually," said Sam Williams, president of the Metro Atlanta Chamber of Commerce. "Many of these newcomers are between the ages of 20 and 44 and college-educated.
"The area's 43 colleges and universities and nine technical institutes provide a steady flow of new educated talent. And Georgia's envied HOPE scholarship continues to keep top-ranked students in the state with the promise of free education."
Like Georgia, New Mexico has an innovative scholarship program that is garnering cheers from students and businesses alike.
"We've received great feedback from consultants and companies about the Lottery Scholarship Program, which provides free in-state college tuition to all New Mexico high school students graduating with, and maintaining during college, at least a 2.5 grade point average," said Gary Tonjes, president of Albuquerque (No. 3) Economic Development Inc.
The Dallas, Texas, (No. 17) area is also heralded for its growing population of young people. Companies that moved into or expanded in Dallas over the last year to take advantage of Texas talent include Quantum Semiconductor, Midland Steel, and JP Morgan Chase's Global Investor Services unit.
Location makes all the difference
There's no doubt that proximity to markets is a key factor for companies in the process of selecting a new business home. Traditionally, cities in the Southeast and Eastern United States have been hot spots for foreign investors as well as domestic companies that desire a location closer to European markets.
The Greenville-Spartanburg-Anderson, S.C., metro (No. 11) is no stranger to the spotlight, since it has consistently made headlines with the success of its growing automotive community.
"Given our strategic location in the Southeast - at the intersection of I-85 and I-26 and conveniently situated between two major cities of the South, Atlanta and Charlotte - Spartanburg is uniquely positioned to attract high-profile companies like BMW and its many suppliers that have invested and reinvested in our community," said R. Carter Smith, senior vice president, economic development, of the Spartanburg Area Chamber of Commerce.
Skilled manufacturing workers are poised to fill the needs of domestic and international companies that choose to set up shop in Spartanburg.
Virginia's Roanoke Valley (No. 43) is also touted as a location with prime market access.
"Besides low costs of living and doing business, the Roanoke Valley offers companies excellent market access," said Phillip Sparks, executive director of the Roanoke Valley Economic Development Partnership. "Our central location puts manufacturers within a day's shipping distance of two-thirds of the U.S. population. Our electric rates are also among the lowest in the nation."
The Roanoke Valley was selected in December 2001 as the location for an expansion project by Novozymes Biologicals Inc., a leader in the development and production of naturally occurring microorganisms for industrial, consumer, and agricultural uses.
The company, a subsidiary of Denmark-based Novozymes A/S, will add about 25 new jobs to its current employee base of 65 and invest $12 million over the next five years.
How will this benefit you?
Take a look at the cities that made our Hottest Cities 2002 list. And remember that while these cities are in the spotlight this year, there is no doubt that new cities will fill many of the slots next year.
Maybe your company's city is on our list, and maybe it isn't. It's up to you to do your homework to determine the best location options for your company's operations.
Scout out your own sites and seek out talent that meets your needs. Talk to community developers and inquire about incentives and other financial perks and assistance. Consider quality of life issues, educational infrastructure and logistical advantages.
Most importantly, emerge a winner when you discover the best city for your relocation or expansion project.
Rachael Hedgcoth is the associate editor of Expansion Management Magazine. You can contact her at rhedgcoth@penton.com.
01 Jacksonville, Fla.
02 Raleigh-Durham-Chapel Hill, N.C.
03 Albuquerque, N.M.
04 Oklahoma City, Okla.
05 Phoenix-Mesa, Ariz.
06 Norfolk-Virginia Beach-Newport News, Va.-N.C.
07 Indianapolis, Ind.
08 Greensboro-Winston-Salem-High Point, N.C.
09 Charlotte-Gastonia-Rock Hill, N.C.-S.C.
10 Atlanta, Ga.
11 Greenville-Spartanburg-Anderson, S.C.
12 Huntsville, Ala.
13 Colorado Springs, Colo.
14 Memphis, Tenn.-Ark.-Miss.
15 Salt Lake City-Ogden, Utah
16 Jackson, Miss.
17 Dallas, Texas
18 Austin-San Marcos, Texas
19 Tampa-St. Petersburg-Clearwater, Fla.
20 Sumter, S.C.
(tie) 21 Houston, Texas
(tie) 21 Richmond-Petersburg, Va.
23 Lexington, Ky.
24 Fort Worth-Arlington, Texas
25 Athens, Ga.
26 Tulsa, Okla.
27 San Diego, Calif.
28 Montgomery, Ala.
29 Asheville, N.C.
30 Jackson, Tenn.
31 Seattle-Bellevue-Everett, Wash.
32 Visalia-Tulare-Porterville, Calif.
33 Auburn-Opelika, Ala.
34 Boston, Mass.-N.H.
(tie) 35 Longview-Marshall, Texas
(tie) 35 Greenville, N.C.
37 Chicago, Ill.
38 Pensacola, Fla.
39 Jonesboro, Ark.
40 Bakersfield, Calif.
41 Fort Collins-Loveland, Colo.
42 Denver, Colo.
43 Roanoke, Va.
44 Lake Charles, La.
45 Tuscaloosa, Ala.
46 Decatur, Ala.
47 Lawton, Okla.
48 Cincinnati, Ohio-Ky.-Ind.
49 Savannah, Ga.
(tie) 50 Tucson, Ariz.
(tie) 50 Columbus, Ohio
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