What do these two metros have in common? Well, above all else, they both offer lower costs and a well-educated work force, the two things expanding companies covet most.

“Our community offers what business leaders are attracted to — a talented, educated and plentiful work force; a low cost of doing business; and a metropolitan environment where people can find balance and simplify the different aspects of their lives,” said Martha Willits, president and CEO of the Greater Des Moines Partnership. “The recent announcements from Wells Fargo, Gcommerce and Firestone Agricultural Tire prove that we are succeeding at growing the Greater Des Moines community and our regional economy.”

Kansas City, which ranked No. 2, is home to such diverse household names as Hallmark Cards, H&R Block, Sprint, Yellow Roadway and Interstate Bakeries. The metro includes portions of Missouri and Kansas.

“Our metro area encompasses two state governments and taxing structures, 18 counties and 50 different major communities,” said Bob Marcusse, president and CEO of the Kansas City Area Development Council. “This allows us to offer companies that are looking to expand or relocate a larger variety of options based on their individual needs — rural, suburban and urban locations, and different labor environments and incentive packages.”

Not all of the top metros are in the Midwest. Two cities best noted for their cutting-edge technology companies — Seattle and Austin, Texas, — finished just behind Kansas City.

Seattle is a premium location that offers intellectual capital and is the home of Microsoft, Starbucks, REI, Amazon.com, COSTCO, Nordstrom, Washington Mutual, Weyerhaueser and Alaska Airlines.

“Our education and research institutions have produced three Nobel Laureates, while the spirit of entrepreneurship has encouraged some of the wealthiest individuals in the world to make this region their home,” said Wendy Marsh, vice president of marketing and business development for the EDC of Seattle & King County. “Almost 40 percent of Seattle area residents have a college degree, one of the highest rankings in the nation.”

Likewise, the Austin-San Marcos metro relies on an abundance of well-educated workers.

“Austin’s success hinges on its most valuable asset — its human capital,” said Susan Davenport, director of economic development for the Greater Austin Chamber.

Austin in home to the University of Texas, while San Marcos is the home of Texas State University-San Marcos. Located on the I-35 “Advanced Technology Corridor” between Austin and San Antonio, San Marcos is aggressively seeking new business.

“San Marcos offers a [distinct] quality of life, small town atmosphere and big city environment,” said Carrie Wilkins, assistant director of the Greater San Marcos Economic Development Council. “The city council is open to growth and expansion. City council members work with businesses to ensure that their transition is easy and costs are significantly reduced through various incentives.”

Texas led all states with six metros in the top 50, including five in the top 24. Also placing well was Missouri, with four metros in the top 26, including two in the top six overall.

Springfield, Mo., ranked No. 6 overall on the strength of excellent public schools, low health care costs and a high quality of life.

“We’re known as Missouri’s ‘economic engine’ and for good reason,” said Greg Williams, senior vice president for Economic Development with the Springfield Area Chamber of Commerce. “Over the past years, 25 percent of all new jobs in Missouri were created in Springfield, even though Springfield represents only 3 percent of the state’s work force. Top-ranked health care, a strong retail base and an expanding airport make Springfield the center of a regional market of nearly 1 million people.”

Pennsylvania placed two metros in the top 20, with Harrisburg-Lebanon-Carlisle at No. 10 and Pittsburgh at No. 17. Pittsburgh, in particular, has done a remarkable job in revitalizing its economy.

Southwestern Pennsylvania is home to a large population of skilled and affordable workers in fields such as computer science, engineering and life sciences that come from 33 colleges and universities, including two of the world’s leading research centers, Carnegie Mellon University and the University of Pittsburgh.

“The Pittsburgh region is positioned as a leading location to live and do business because it combines the amenities of a large urban center with the accessibility and affordability of a smaller community,” said Ronnie L. Bryant, president and CEO of the Pittsburgh Regional Alliance. “It’s home to some of the world’s most renowned arts and cultural institutions and a thriving and centrally located downtown.”

The nation’s capital, which ranked No. 8, has also become a hotbed for technology companies. During the past five years, the Washington, D.C., metro area outperformed all other large metro regions with an increase of 274,100 net new jobs.

“Greater Washington, D.C.’s highly educated work force, proximity to the federal government and first-rate cultural community make this area a top location for relocations and expansions,” said Thomas G. Morr, managing partner with the Greater Washington Initiative.

Washington and Baltimore (No. 27) create a biotechnology and medical powerhouse. “Baltimore is home to the world-renowned Johns Hopkins University and School of Medicine, and the University of Maryland School of Medicine as well as the Institute for Human Virology — a city with a wealth of highly educated, high-tech talent,” said M.J. “Jay” Brodie, president of the Baltimore Development Corp. “Baltimore is traditionally a center of finance with headquarters for both Legg Mason and T. Rowe Price, but is also an import/export leader with The Port of Baltimore generating $2.4 billion dollars in annual revenue.”

South of Washington, Richmond, Va., came in at No. 11. It was one of four Virginia metros to place in the top 50.

“Greater Richmond is one of the best places in the country for business because the diverse business base includes 10 Fortune 1000 headquarters, 21st century manufacturers like DuPont and Honeywell, and financial service powerhouses like Capital One and Genworth Financial,” said Gregory H. Wingfield, president and CEO of the Greater Richmond Partnership. “Our existing labor force is supplemented annually by 7,000 college graduates, and our state-of-the-art transportation and utilities infrastructure insures that goods, ideas and people get where they need to go.”

Florida, with Tampa, West Palm Beach and Tallahassee, place three metros in the top 50.

“The state’s success starts at the top with the state legislature and Gov. Jeb Bush working to create a positive environment for business development,” said Robin Ronne, senior vice president of economic development for the Greater Tampa Chamber of Commerce Committee of 100.

The effort has led to an examination of key business issues such as workers’ compensation, tax issues and incentives.

“Compound this with the fact we have focused on attracting targeted industry clusters and sectors to the Tampa area, and the effort has not only allowed us to become one of the most diversified economies in the nation, but one that has led us to achieve 11 consecutive years of net positive job growth,” Ronne said.

Tallahassee, the state’s capital and home to both Florida A&M and Florida State University, has come a long way from being a sleepy government and college town.

In recent years, the city has created an enterprise zone and the Target Pilot Business Program, an initiative to entice business growth.

“Tallahassee makes itself hospitable to businesses of all sizes, from entrepreneurial startups to expanding corporations,” said Sue Dick, president of the Economic Development Council of Tallahassee/Leon County. “It offers premier research universities, a business-friendly community college, a highly educated work force, excellent schools and big-city-quality culture and entertainment coupled with small-town friendliness. Our high placement in Expansion Management’s Mayor’s Challenge rankings proves our efforts are paying dividends.”

Criteria For Selection

During the past 12 months, Expansion Management’s research department published six major studies that evaluated and compared 331 Metropolitan Statistical Areas (MSA) according to a variety of categories that corporate site selectors need to consider when choosing the best location for an impending facility. These are the general areas that make up this year’s Mayor’s Challenge:

Public Education — The Education Quotient™ (EQ), published in the December 2003 issue, evaluated 2,800 public school districts (about 37 percent of all high school degree-granting districts) nationwide as a way to provide our readers with a basis for comparing the type of work force they are likely to encounter in various communities throughout the United States.

College-Educated Work Force — The High-Value Labor Quotient™ (HVLQ), published in the March 2004 issue, attempts to identify where companies in the knowledge-based industries are most likely to find the workers they need, both in terms of quality and quantity.

Health Care Costs and Availability — The Health Quotient™ (HQ), published in the February 2004 issue, looks at health care as being a major cost for employers throughout the nation. This year’s HQ compared the 50 states according to a variety of categories that measured both the availability of quality health care services and the cost to employers of those services.

Quality of Life — The Quality of Life Quotient™ (QLQ), published in the May 2004 issue, looks at quality of life as being access to the American Dream (i.e., affordable housing, good schools, low crime, low cost of living, etc.) at a price affordable to most people. The QLQ compares 331 MSAs based upon their ability to provide that access at the lowest cost to the employer.

Logistics Infrastructure — The Logistics Quotient™ (LogQ), published in the September 2003 issue, attempts to compare the logistics infrastructure and work force among the various metros areas nationwide. The study also looks at taxes and fees imposed on logistics activities in those cities.

Government Taxes and Spending — The Legislative Quotient™ (LQ), published in the November 2003 issue, attempts to compare the business climate created by the 50 state legislatures in terms of the areas over which they actually have control: taxes and government spending. While all politicians love to take credit for a good economy (but are nowhere to be found when it comes to taking responsibility for a bad economy), it is in the type and rate of taxes levied on local businesses that they have their greatest impact on the local economy.

It’s Still a Business Decision

Above all else, site selection is still driven by the impact a specific location will have on the corporate bottom line.

“Dallas is the economic, civic and cultural engine of the Southwest,” said Norm Bagwell, president of Bank One Dallas and chairman of the Greater Dallas Chamber. “Survey after survey shows Dallas as one of the most desirable locations for doing business.”

Still, quality of life considerations are important.

“From world class cultural events and professional/collegiate sports to some of the best salmon fishing and apple picking in the United States, the [Syracuse] area is rich in quality of life options,” said Gregory E. Hitchin, business development manager for the Onondaga County (N.Y.) Office of Economic Development. “Add in our business and personal affordability; nationally recognized universities; federal, state and local tax management programs; a high quality work force; and our new incubator and you have an equation, making Syracuse good for business and good for life.”

Good for business and good for life. It doesn’t get much better than that.