100 LEADING LOCATIONS for 2014

By Buss, Dale D

Proquest LLC

AREA DEVELOPMENT ANALYZES ECONOMIC AND WORKFORCE DATA FOR 379 MSAS, PRODUCING A SNAPSHOT OF THE CITIES ACROSS AMERICA THAT ARE POISED TO CAPITALIZE ON THE NEW POTENTIAL FOR ECONOMIC GROWTH AS THE UNITED STATES LEAVES THE RECESSION BEHIND. A DIVERSIFIED ECONOMIC BASE TOPS THE MOST DESIRABLE TRAITS

After five years of the Great Recession and another long period of economic sluggishness, and still fighting the knock-on effects of fiscal restraints, cities and regions across America are honing their approaches to landing new businesses. On the other side of the equation, U.S. and global companies are loosening their purse strings enough these days to offer significantly more economic development prizes.

For this year's Leading Locations study, Area Development analyzed economic and work force data for 379 metropolitan statistical areas (MSAs) - both for 2012-2013 and, in some categories, stretching as far back as 2008, the depths of the recession. The goal was to identify which cities across America are emerging as front-runners in this new era of economic development possibilities - and why.

The top 100 MSAs in the list demonstrate that a variety of strong individual drivers, or a combination of many factors, can move a city's attractiveness as a business site into the foreground. Chief among those drivers for 2014 are the renaissance in domestic manufacturing, the gusher of economic blessings flowing from the fracking revolution in U.S. oil and gas fields, and the spread of America's high-technology dominance to sparkling new urban epicenters even as the birthplaces of this advantage retain their sheen.

But for most cities, the advantages of the moment aren't enough alone to sustain long-term success as a site-location beacon. They also must respond effectively to the many factors that affect local and regional economic performance, as well as proactively create healthy business climates for the long run, and invest in that future. The locations that best create and sustain such multilevel support not only are best at landing new companies but also excel at supporting local companies and helping them hone their competitiveness with rivals at home and abroad.

Included in our report online is an interactive table that will allow you to view the rankings of all 379 MSAs. The report includes an overall ranking that is based on 21 economic indicators. Area Development also created category rankings that are based on sub-groups of indicators from the 21 used for the overall results (refer to the methodology to learn more). Readers can use filters to easily segment MSAs by region, population size, and state, or use the search field to locate specific MSAs. The expanded version of the chart displays how each city ranks in every one of the 21 indicators used in the study.

BIG CITIES (population > 600,000)

San Jose-Sunnyvale-Santa Clara, CA

(Population: 1,836,911)_

Overall Rank: 1_

The heart of Silicon Valley continues to drive not only the California economy but also the continuing U.S. lead in digital innovation, entrepreneurship, and growth. Its bellwether employers - including Facebook, Google, Yahoo, and hardware players such as Hewlett-Packard and Cisco - provide the attraction and energy to retain and nurture the world's richest collection of high-tech talent.

They are fed by science and engineering graduates of some of America's top tech schools, including the University of California-Berkeley, and financed by a 39 percent share of all venture-capital investments across the nation in 2013. Increasingly, immigration is a factor as well: There was a 52 percent increase in foreign immigration last year over 2012.

In Silicon Valley, patent registrations rose by 11 percent in 2012 over the year before, while jobs grew by more than 3 percent from 2012 to 2013, and total population grew by 1.3 percent in 2013 over the year prior. Median household income also began to increase in 2012 after a four-year decline.

Increasingly, non-technology players are taking up residence in Silicon Valley as well, ranging from Ford to Nestle. They're counting on the nation's most proven crucible for innovation and top-flight digital-era talent to help their own businesses take the next great leap forward.

San Jose

STRENGTHS

* Highly skilled workers make SAJ an appealing investment location for consumer services.

* Deep linkages with venture capital and angel investors and research institutions throughout the Bay Area.

UPSIDE

* SAJ attracts more high-profile tech meetings, and their attendees, away from San Francisco.

* More insourcing of manufacturing enables SAJ to keep and attract new tech production.

San Francisco-San Mateo-Redwood, CA

(Population: 1,776,095)_

Overall Rank: 7_

The San Francisco Bay area is the spiritual home of those who want to have a life as well as a job. One of the most vibrant, diverse, tolerant, exciting and sometimes outrageous cities in the world, San Francisco has relied on these attributes to create a robust economic engine that has been able to power through complications such as the city's high cost of living.

Continued growth in San Francisco comes in a variety of ways. It's a major tourism destination, of course, and it has an underappreciated role in global trade, with more than 75 international consulates and 22 foreign-trade offices. San Francisco is home to more than 1,890 technology firms, including digital standouts such as Lucasfilm and Sega of America. The Bay Area's 41 colleges and universities provide the talent to feed their demands, and about 54 percent of adults have a college or graduate degree.

Key to the area's continued growth is its continual development of new economic engines. Now more than 130 biotech companies are located in the city, many of them at Mission Bay, which has become a hub of this increasingly important vertical. The biotech and clean-tech enclave alone has birthed nearly 100 earlystage companies.

San Francisco

STRENGTHS

* Well-educated and skilled workforce supports robust income gains.

* Increasing cluster of Internet and other tech service companies and workers fosters office market growth,

UPSIDE

* Domestic and Asian demand for Internet and mobile services fuels growth among tech firms.

* National housing recovery kick-starts mortgage and other real estate finance output.

Note: Population estimates from 2010 Census

Denver-Aurora-Broomfield, CO

(Population: 2,543,482)

Overall Rank: 8

The mile-high economy of Colorado's major metropolitan area is built on a number of advantages, including the transformation of its long-existent high-tech cluster by new companies, a historic connection to the newly booming oil and gas industry, a young and geographically loyal workforce, and the inherent advantages of being the only major business hub in the Mountain region. Model regional cooperation for economic development and the nation's only all-new major metro airport in the last quarter century contribute as well.

And, no joke - while the economic benefits of Colorado's marijuana legalization are only beginning, they'll become an apparent contributor to growth in the Denver area over time. For now, Denver and its environs are coming out of the Great Recession with stronger job growth than originally thought. Last year, the state's jobs grew by 3.5 percent, revised from an initial estimate of 2.6 percent. That reflected growth in every job sector in the state and continued into 2014.

Software is at the heart of this boom. Growing small tech companies, many in the heart of Denver, have collectively added enough jobs lately to offset some layoffs at large tech firms. Pharmaceuticals are chipping in as well, such as Broomfield's Accera.

One Industry or Many Can Lead to Economic Success

By Jim Eskew, Vice President,

Business Consulting Croup, JLL

As revealed in the overall "Leading Locations" rankings, there is more than one way to become an attractive location. Some locations have risen on the strength of a dominant industry sector. Others have prevailed by offering low-cost real estate, talent, and other resources in a balanced, diversified economy.

Illustrating the first route - a dominant industry - half of the top 10 overall Leading Locations underscore the economic power of the U.S. oil and gas boom. Five of the top 10 cities in the overall rankings - Midland and Odessa in Texas, and Fargo, Bismarck, and Grand Forks in North Dakota - are experiencing rapid economic growth from the energy sector. North Dakota is notable as one of the least-populated states in the overall rankings to place three of its cities in the top 10.

Information technology is a major economic driver for four of the remaining five cities in the top 10. Silicon Valley, San Francisco, and Provo-Orem are all widely recognized for their technology sectors. Austin, ranked 15th, also has a strong technology sector, although it has a degree of economic diversification, as seen in growth associated with the professional services, financial services, and higher education sectors.

Denver, placed eighth in the overall rankings, is succeeding with a well-balanced economy benefiting from not only energy and information technology, but also financial services, manufacturing, and other industries.

Having learned from the boom-and-bust cycles of the past, some former single-sector cities have actively sought to diversify. One noteworthy example is Pittsburgh, which leapt from an overall rank of 110 last year to a rank of 41 this year. After suffering years of economic losses with the decline of the domestic steel industry, Pittsburgh is experiencing new dynamism as such companies as Computer Sciences Corporation and Google expand their operations.

Denver

STRENGTHS

* High industrial diversity shields the metro area from employment volatility.

*Highly educated workforce attracts firms wanting to fill high value-added positions.

* Sturdy housing market.

* Strong population growth.

UPSIDE

* Lockheed expansion and aerospace contracts lift employment and related manufacturing output more than expected.

MID-SIZE CITIES

(population 160,000-600,000)

Fargo, ND-MN

(Population: 208,777)_

Overall Rank: 3T_

he fracking boom in North Dakota continues, bringing lots of jobs, people, and investment to the capital of the Bakken oil-shale formation, Fargo. And after several years of economic bounty - because it's at the epicenter of the re-establishment of American domestic energy "security" - Fargo is attempting to turn this huge advantage into greater economic diversity and true long-term gain.

The fossil-fuel boom has made Fargo one of the best places in America to find a job and make money. Forbes ranked the area No. 2 in its "Best Small Places for Business and Careers" last August, for instance. And Fargo placed No. 5 in the Milken Institute Best Performing Cities Index In 2014.

This economic vibrancy came on top of an infrastructure that already included world-class education and research and productive employees. And Fargo is younger than most out- siders assume: It was ranked in the top college towns and cities with populations below 250,000 in 2012-2013 by the American Institute for Economic Research.

In fact, there's also a mini tech boom in and around Fargo that is in the midst of creating a predicted 8,000 jobs including 1,000 alone at Microsoft. All of this activity, in turn, is stimulating the traditional backbones of the Fargo economy, including manufacturing, agriculture, and services.

Fargo

STRENGTHS

* Diverse but stable economy with well-educated population.

* Relatively low business and living costs with high housing affordability.

* Spillover from the state's historic oil boom.

UPSIDE

* Slow national recovery maintains healthy levels of in-migration.

* NDSU Research Park initiative facilitates spillover growth in high tech.

* Ag prices rebound to historically high levels, boosting farm incomes.

Provo-Orem, UT

(Population: 526,810)

Overall Rank: 6

Provo and Orem share the eastern shore of Utah Lake and a lot more: explosive economic and job growth as tech employment burgeons and more employers - locally grown and from around the United States - take advantage of its large population of millennials, entrepreneurial atmosphere, and quality of life.

A recent report from the Milken Institute ranked Provo-Orem as No. 2 in its list of the Top 25 BestPerforming Large Cities for Business, basing its conclusion on growth in jobs, income, and technology output. That was up five spots from the previous ranking. ProvoOrem also ranked No. 2 in 2013 on the Forbes ranking of "Best Mid-Size Cities for Jobs." And last June, Forbes also listed Provo as No. 1 "Best Place for Business and Careers."

The area has been topping so many charts lately because of the strong flow of new college graduates it is producing, especially from huge Brigham Young University, and because of a thriving tech sector. Local successes such as Novell, Nu Skin and Ancestry.com are expanding. Google's selection of Provo-Orem as just the third city for installation of its new high-speed fiberoptic service will add more momentum to tech growth.

Provo

STRENGTHS

* Large, dynamic high-tech industry.

* Stable employment and research spillovers from Brigham Young University.

* Strong population growth and high educational attainment.

* Low business costs.

UPSIDE

* Faster household formation causes increased housing demand, which leads to higher prices and increased construction.

* Demand for locally produced flash memory chips strengthens.

* Low costs and high educational attainment attract new companies.

Sioux Falls, SD

(Population: 228,261)_

Overall Rank: 11_

Sioux Falls has acquired a solid reputation as a breath of fresh air from the American prairie, a modern and complete urban center that still serves a large, rural region that has benefited lately from the strong U.S. agricultural economy and a bit from the fracking boom to the state's north.

The city boasts low costs for doing business, a dependable and well-trained workforce, and a minimum of red tape - things that companies are looking for. At the same time, Sioux Falls boasts a satisfying quality of life and is on the rise as a retirement haven. Forbes has recognized both aspects of the area's character by ranking Sioux Falls No. 1 on its list of "Best Small Places for Business and Careers" for nine of the last 10 years.

Sioux Falls has proven a growth base for firms in the financial services, medical, and renewable-energy industries because of its collective expertise in manufacturing, research, and back-office operations, as well as its business-friendliness. About 80 percent of new jobs there are created by existing businesses. TCF Financial, Terex Bid-Well, Adams Thermal Systems, Integra Plastics, and Twin City Fan & Blower have all expanded their footprints in Sioux Falls recently, each citing a favorable tax climate.

Sioux Falls

STRENGTHS

* Business costs among the lowest in the U.S.

* Diverse industrial base.

* Regional hub for education and health services.

UPSIDE

* Low business costs draw new corporate operations to the area.

* Pipeline infrastructure and drilling-related development spurs job growth in the region,

SMALL CITIES (population <160,000)

Columbus, IN

(Population: 76,794)_

Overall Rank: 2

A perfect storm of economic c kgrowth has nourished Columbus,

Ind., keeping the little industrial powerhouse atop Area Development's small-cities rankings. The city is benefiting from the boom in domestic production of auto engines and other components, longer looks from site locators because of Indiana's new right-to-work law, and rising appreciation for what AARP called Columbus's "under-the-radar charm."

Columbus surged by 13 spots to rank No. 2 in the Milken Institute list of Best-Performing Small Cities in 2013, driven by the community's top10 finishes in job growth, wage growth and high-tech GDP growth.

The city has been thriving lately in large part because of the success of its biggest employer, Cummins, which keeps expanding its output of diesel engines for various sizes of trucks. In fact, Columbus has more mechanical engineers per worker than any other U.S. metro. It also hosts R&D centers for other major global auto suppliers, such as Faurecia. A Japan-based fastener manufacturer, Sunright, last year announced its third expansion in the Columbus area.

Columbus has genuine quality-of-life chops as well, ranking high for its retirement affordability, first-rate park system, innovative architecture, and location less than an hour from Indianapolis.

Columbus, IN

STRENGTHS

* Strong manufacturing base with exposure to global markets.

* Stable housing market with low foreclosure activity.

* High affordability for residents and businesses.

UPSIDE

* Rising educational attainment attracts business investment.

* Sturdy job market induces more residents to relocate to the metro area.

* Small foreclosure inventory pushes house prices up faster than anticipated.

Midland, TX

(Population: 136,872)

Overall Rank: 3

idland is the definition of a boomtown. Originally sprung out of the West Texas oil patch decades ago, Midland has entered another era of strong growth thanks to the rebirth of the U.S. oil and gas industry via fracking and horizontal drilling. Now Midland is just trying to keep ahead of all aspects of its resulting growth.

The city posted among the top 10 percentage increases in GMP last year for the fourth year in a row. Between November 2009 and November 2013, the number of nonfarm jobs in the metro area increased by 25 percent versus just 5.5 percent for the nation as a whole. Its population burgeoned by 4.6 percent in just a year, also topping the country. Personal income per capita grew by 25 percent between 2009 and 2011 as the drilling boom drove other job growth as well.

The flip side for Midland, like neighboring Odessa, has been simply coping with the prodigious growth of the last few years. Average monthly asking-rent prices climbed from less than $600 before the boom hit in 2007 to $1,110 by mid-2013, according to Reis realestate researchers. And rising home prices are squeezing would-be buyers out of the market.

Midland

STRENGTHS

* High energy prices support the economy.

* Employment in the oil industry drives up average earnings.

* Housing market avoided the downturn experienced nationally.

STRENGTHS

* Oil prices rise more than expected, spurring greater extraction.

* Downtown redevelopment diversifies economy.

Bismarck, ND

(Population: 108,779)_

Overall Rank: 5_

Count Bismarck's blessings from the appearance of thousands of new oil wells in North Dakota over the last decade. Only half the size of Fargo, N.D., the capital city also is absorbing the economic benefits of job and income growth brought by the fracking revolution.

The Gross Metropolitan Product of Bismarck grew by 8.5 percent in 2012, the seventh-largest rate of any city. As of last November, no metro area had a lower unemployment rate than Bismarck's 2.4 percent. And while the pace of the oil boom has slowed a bit, it continues: IHS estimates that Bismarck's GMP will increase by another 3.5 percent this year, leading all U.S. metro areas.

In May, the state launched "Find the Good Life in North Dakota," a campaign to fill approximately 25,000 job openings for skilled workers. "We need a workforce that we can rely on into the future," a state official said.

The retail and healthcare hub also ranked No. 4 on the most recent Forbes list of "Best Small Places for Business and Careers," which cited niceties such as arts and recreation opportunities in Bismarck, influenced by the presence of state government

Bismarck

strengths

* Significant energy resources in surrounding areas.

* Stable core employment base in government and nealthcare.

* Very low cost of doing business.

UPSIDE

* Improved in-migration from the oil boom adds needed depth to the labor force.

* Pipeline infrastructure is updated faster than expected, lowering spread on oil prices.

THE FACTORS PRIME WORK FORCE GROWTH

Sluggish U.S. economic growth means that the pool of available labor actually continues to expand even as more companies are hiring again. The problem is that a yawning gap has developed between millions of potentially available workers and the increasingly sophisticated skills they would require to qualify for today's generally tech-oriented jobs. Most jobs now require some level of postsecondary education as well as computer skills.

That's where state, regional, and city economic development programs can prove crucial, helping businesses fulfill their needs for highly trained labor pools, either through augmented education on the front end or cooperating with locating and expanding businesses and their specialized workforce needs on the back end.

Consider the role that state and local prime workforce programs have played in helping regions advance in the increasingly crucial biotech industry. Practically every jurisdiction across the country has been actively attempting to build biotech "hotspots" or "corridors" for a decade now, and the emergent winners are focusing on helping biotech startups attract, develop, and retain the technical and scientific talent that is crucial for their success.

Illinois, for example, reimburses employers up to 50 percent of the costs of training graduate-student employees under its biotech training-assistance program. Missouri has spent $9 million in grants to establish "innovation campuses" where high-school students get extensive training in science and technology fields through apprenticeships with local employers while they also earn college credit.

And, in North Carolina, the legislature has cleverly leveraged the state's tobacco-settlement payments into three separate trust funds, one of them a long-term economic development foundation that committed $60 million to create a statewide training program for biomanufacturing workers. A portion of this grant, along with $4.5 million from the North Carolina Biosciences Organization, provided North Carolina State University in Raleigh with $36 million to train workers for the Research Triangle's now-burgeoning life-sciences sector.

Vibrant performance in this criterion stands out for some MSAs, where they rank much more highly for worker readiness in the Area Development list for 2014 than in other categories. Tallahassee, Fla., for instance, ranks only No. 108 in the overall list this year - but No. 6 in the "Prime Workforce" criterion. One key for Florida's capital is that economic development officials effectively harness the wide variety of the city's highereducation network, not just the prominent Florida State University.

So, for example, Tallahassee Community College has taken a leadership role with the opening of its Advanced Manufacturing Training Center, a 16,000square-foot facility geared toward high-tech and precision-manufacturing training; and the Ghazvini Center for Healthcare Education, an 85,000-square-foot facility that houses programs in diagnostic medical sonography, emergency medical services, nursing, radiologic technology, and respiratory care.

Even places with generally not as helpful reputations can score big economic development successes with the right type of assistance to help companies create prime workforces. Connecticut, for instance, began a Small Business Express Program in 2012 that offered companies help with developing employee skills as a centerpiece of a menu of lures. More than 1,000 Connecticut companies benefited through early 2014, creating and retaining about 14,000 jobs, the state said.

Economic Strength and Year-Over-Year Growth

There's no denying that the accidents and exigencies of geography and economic legacies continue to hold huge sway over the growth characteristics of MSAs across the United States. Consider that nine of the top10 cities in the Area Development 2014 "Economic Strength" ranking benefited greatly from boom times for oil and gas development and refining, or from their area's historic and growing position at the forefront of a burgeoning area of the global economy. Number 1 in this category, Columbus, Ind., is riding high on Cummins' leadership in hot-selling diesel engines, while Elkhart-Goshen, Ind. (No. 7) largely is riding the bounce-back In the American recreational-vehicle market. San Jose-Sunnyvale-Santa Clara (Calif.) (No. 2) and San Francisco-San Mateo-Redwood City (No. 5) obviously benefit tremendously from their firm leadership of the digital economy worldwide. And Odessa, Texas (No. 3), Lake Charles, La. (No. 4), Midland, Texas (No. 6), Fargo, N.D. (No. 8), and Bismarck, N.D. (No. 10) are capitalizing on the rapid re-ascent of the American energy business.

So maybe the most instructive lessons for economic developers lies in the experience of the one top-ranked city for "Economic Strength" that didn't benefit from any of these advantages: Dubuque, Iowa (No. 9). Until several years ago, the city at the intersection of Iowa, Illinois, and Wisconsin on the Mississippi River was dealing with devastation wrought by the troubles of both of its key industries: manufacturing and agriculture. Dubuque Packing closed, and then John Deere sliced its workforce by about three-quarters from its peak. Dubuque lost 10 percent of its population.

Then IBM began looking at an empty Depression-era department store for a facility, and local economic development leadership pounced. The city of just 57,000 offered $52 million in incentives to land the 1,300-person IBM site, focusing on the important issue of workplace availability. When IBM expressed concern about the local talent pool, Greater Dubuque downloaded and printed off 600 relevant resumes aspirants had put in its job-search database, according to PSMag.com. And it focused not just on the immediate population but built a case to IBM why the facility could draw workers from as far as 100 miles away from Dubuque - an area that encompasses some other significant cities as well as major universities including the University of Wisconsin-Madison, University of Iowa, and University of Northern Iowa.

In 2009, IBM picked Dubuque, and the city hasn't looked back. Applying lessons learned during that victory, city and regional officials have used a balanced approach that focuses on both local business-retention efforts and outreach to potential new companies. And Dubuque has picked up a diversity of new job-creating projects from companies ranging from Hormel Foods, which invested $36 million in the area last year, to Bodine Electric.

Recession-Busting Attributes

Cities and regions across the United States were hit hard by the global financial collapse of 2008 and the subsequent Great Recession, which slashed budgets for many and put them In dire straits. Unlike the federal government, city and state governments can't run big or long-term deficits. Consequently, economic development efforts were among the endeavors that suffered in many localities.

But as the U.S. economy has haltingly recovered, many cities also have recovered their wherewithal1 when it comes to development efforts. And more companies than at any time since before the recession are beginning to open their pocketbooks for projects - whether they're energy companies participating in the U.S. drilling boom, technology companies expanding to satisfy booming global demand, service outfits continuing to change life as we know it, or American manufacturers that are benefiting from "reshoring" of production and other positive factors. Let's look at how three MSAs ranked in the top 15 by Area Development as 2014 "Recession-Busting" MSAs are arising from the difficulties of the Great Recession and putting themselves on new growth arcs.

These days it's difficult to associate economic growth with Alaska, which is long past the peak of capitalization on its oil resources. And because most communities in Alaska are highly dependent on state and federal government spending, the recession and topsy-turvy course of U.S. government outlays over the last few years have left the state off balance. But Fairbanks - the No. 3 recession-buster - has emerged atop the rest of the state and is weathering such difficulties better than most other Alaska communities. The anticipated growth in the military and construction sectors has helped out. Despite the Defense Department's travails, 400 more soldiers are expected for nearby Fort Wainwright. Meanwhile, Fairbanks companies are participating in a mini-boom in exports from Alaska to other Asia-Pacific Rim companies, especially those in China and South Korea.

Southeastern Tennessee is getting more attention as a development hotspot lately. Chattanooga, for instance, has a big Volkswagen assembly plant and a cutting-edge broadband network for business. Meanwhile, nearby Cleveland, Tenn. (No. 8 recession-buster), relies on a diverse mix of traditional factors to expand its economy. They include a balance of thriving industries, a seasonable climate, a picturesque location, an ample workforce of qualified people, and access to four different interstate highways within an hour and a half. As a result, Cleveland ranked No. 25 in the 2013 Milken Institute report on the Best Performing Small Cities, ranking especially highly in one-year job and wage growth.

Southeastern Michigan gets all the attention as a manufacturing hub, but southwestern Michigan has been historically strong in various types of manufacturing, including medical devices and office furniture. And now, led by a pair of close but relatively small cities (Holland-Grand Haven, the No. 13 recession-buster), the region is coming back far more quickly from recession than the Detroit area. A number of factors contribute, including how the picturesque area on Lake Michigan's eastern shore benefits from the strong uptick in tourism in Michigan, and particular kinds of manufacturing, such as advanced lightweight materials. Holland-Grand Haven also last year placed No. 1 in an analysis by Farmers Insurance as the "Most Secure" small or mediumsized metropolitan area in the U.S. Measuring criteria including economic stability, crime statistics, extreme weather, housing depreciation, air quality, life expectancy, and employment, the insurer put a big fat, analytical imprimatur on the vaunted local "quality of life" that Holland-Grand Haven residents long have touted. *

Moody's ANALYTICS

The "Strengths" and "Upside" bullet points for each of the nine profiled MSAs was taken from Moody's Analytics U.S. Précis® Metro reports, which offer concise analysis and data on the current and expected economic conditions for all U.S. metropolitan areas. Each three-page report covers an individual metro area and includes a five-year forecast from Moody's Analytics' simultaneous econometric model, which is updated monthly.

Forecasts of key indicators that drive metro area economies include Gross Metro Product (GMP), industry diversity, employment, personal income, population, housing activity, migration flows, and personal bankruptcies. Moody's Analytics' exclusive indicators - including cost of doing business, cost of living, risk-adjusted return, and shortand long-term employment growth - allow for quick and easy comparisons across metro areas.

Much Depends on Company's Industry & Life Cycle

By Eric Stavriotis, Senior Vice President, CBRE

Many experts would agree that the strongest sector of the economy over the last five years has been energy. Next in line? Technology clearly is winning the day and helping pull many markets out of the Great Recession. A quick review of the 2014 Leading Locations research confirms what we have been seeing from our clients and the markets overall: Companies with a preponderance of technology workers are thirsty for more talent, and the needs of these companies can vary significantly based on their industry and life cycle.

For example, four of the top 10 markets in the overall ranking (San Jose, Provo, San Francisco, and Denver) are emerging or established hubs for technology talent and have a thriving startup ecosystem. Rounding out the top 15 are similar tech-savvy markets in Nashville and Austin. All told, 40 percent of the overall top 15 Leading Locations are found on many short lists for growing or established technology companies.

What's fascinating in practice is to see the differences in how technology companies are buying this workforce and why this changes so much depending on the industry and life cycle of the company. While many leading global organizations continue to invest in San Jose, San Francisco, and Austin, so too are early-stage startups, with founders often coming out of the larger firms seeking out capital from abundant local sources.

Conversely, we are seeing a significant amount of technology activity in smaller, regional markets such as Madison, Wise.; Provo, Utah; Fort Collins and Boulder, Col.; Ashville, N.C.; and Tallahassee, Fla. A quick glance of the "Prime Workforce Rank" of the mid-size locations will show all six of these markets in the Top 21 on this year's Leading Locations list. Why are these types of markets thriving? Many larger companies are diversifying and see the benefit of a footprint that includes mid-size markets with proximity to major universities and a labor pool that values a balance in their work life and personal life. Other small startups seek to grow in these markets with less competition, figuring the capital will come find them when the time is right.

100 Leading Locations Report Sponsors

Arkansas

Metro Little Rock Alliance

The Metro Little Rock Alliance represents a 12county region with a population of over 1,000,000 people. It is located in the center of the country and in the second-fastest-growing region of the United States, with 40 percent of the nation's population and buying power within a 550-mile radius. It's where "America Comes Together."

Joey Dean, Executive Director

Metro Little Rock Alliance

One Chamber Plaza

Little Rock, AR 72201

1-800-905-6577 * 501-377-6006

jdean6littlerockchamber.com

www.metrollttlerockalliance.com

Indiana

Columbus Economic Development Board

Columbus, Indiana, is known for its manufacturing prowess, engineering strengths, and worldrenowned architecture. Highly advanced, durable goods manufacturing drives the local economy, ranking the county in the top 2% of the U.S. for manufacturing employment. Information on corporate relocations and expansions by Cummins, Toyota, PMG, and more is at www.ColumbuslN.org.

Jason Hester, CEcD - Executive Director

Columbus Economic Development Board

500 Franklin Street

Columbus, IN 47201

812-378-7300 * Fax: 812-372-6756

jhesterecolumbusin.org

www.ColumbuslN.org

Louisiana

Greater New Orleans, Inc.

The progress of Greater New Orleans over the past five years has been rapid and dramatic; the publisher of Forbes called it "one of the great turnarounds in American history." In economic development, we are at the highest point, in every economic ranking, in our history.

Grady Fitzpatrick

Senior Vice President, Business Development

Greater New Orleans, Inc.

365 Canal Street, Suite 2300

New Orleans, LA 70130

504-527-6900

infoOgnoinc.org

www.gnoinc.org

Missouri

Regional Economic Development, Inc., (REDI)

Regional Economic Development, Inc., (REDI) is a nonprofit, public/private partnership that collaboratively works to provide economic opportunities for Columbia and Boone County, Missouri. REDI is the local point of contact for any company or entrepreneur looking to successfully locate, grow, or expand their business in Columbia, Boone County, Missouri.

J. Michael Brooks, President

Regional Economic Development,' Inc.

500 East Walnut, Suite 102

Columbia, MO 65201

573-441-5542 or 573-442-8303

JMBrookseGoColumbiaMO.com

www.GoColumbiaMO.com

www.ColumbiaREDI.com

New Jersey

Mercer County, NJ, Office of Economic Development and Sustainability

As New Jersey's capital county, Mercer County is a center for commerce and culture in the Garden State. Located midway between New York City and Philadelphia, Mercer County's 12 municipalities are home to more than 366,000 people in 226 square miles.

Brian M. Hughes, County Executive

Elizabeth M. Muoio, Director

Mercer County, New Jersey,

Office of Economic Development and Sustainability

McDade Administration Building

640 South Broad Street

Trenton, New Jersey 08650

609-989-6555 * Fax: 609-695-4943

BusinessAdvocateeMercerCounty.org

www.businessinmercer.com

North Dakota

Grand Forks Region Economic Development Corp.

Access Success: Grand Forks, N.D. - Companies like Amazon.com, Northrop Grumman, LM Wind Power, and J.R. Simplot are accessing success here. Will you be next? Central North American location, proximity to 50,000+ post-secondary students, the Bakken oil region, Canadian border, unmanned systems test site headquarters, logistics, developmentready properties.

Klaus Thiessen, President & CEO

Grand Forks Region Economic Development Corp.

120 N. 4th St.

Grand Forks, N.D. 58203

701-746-2720 * Fax: 701-746-2725

klaustOgrandforks.org

www.grandforks.org

Pennsylvania

Chamber of Business & Industry of Centre County (CBICC)

With Penn State University's world-class research and intellectual talent providing a ready-made template for growth, Centre County boosts a flourishing high-tech business sector and a thriving job market. A strong support ecosystem for entrepreneurship and business start-ups makes the area the ideal location to turn innovative ideas into commercial success. A central location and proximity to major transportation corridors add to the benefits of conducting business in Centre County. The CBICC is a valuable resource for information about development opportunities within the region.

Vern Squier, CEO

Centre County Industrial Development

200 Innovation Boulevard, Suite 150

State College, PA 16803

814-234-1829

vernecbicc.org

www.cbicc.org

Texas

Lubbock Economic Development Alliance

Lubbock's highly skilled and educated workforce, proximity and connection to major national and international markets, and affordable utility and living costs make it the ideal place to grow your business. Our diverse economy is based on manufacturing, agriculture, wholesale and retail trade services, as well as government, education, and healthcare.

Mike Hatley, Director of Business Recruitment

Lubbock Economic Development Alliance

1500 Broadway, 6th Floor

Lubbock, TX 79401

800-687-5330 * Fax: 806-749-4501

mike.hatleyOlubbockeda.org

www.lubbockeda.org

Odessa Development Corporation

Odessa is located in the Permian Basin region of West Texas. Odessa is where you'll find a friendly work force and highly skilled professionals in all walks of life. We have outstanding medical and educational facilities, as well as economic incentives and work force training programs, if you're expanding your

Guy D. Andrews, Director, Economic Development

Odessa Development Corporation

700 North Grant Ave., Ste. 200

Odessa, TX 79761

1-877-363-3772 * 432-333-7881

Fax: 432-333-7858

ecodirOodessaecodev.com

www.odessatex.com

San Angelo Chamber of Commerce

San Angelo Is a small metro area of 115,000 population located in West Central Texas. Its diverse economy includes manufacturing, retail, medical, education, business services, and energy. San Angelo is a regional center that boasts a commercial airport, four-year university, community college, and Air Force base.

Phil Neighbors, President

San Angelo Chamber of Commerce

418 W. Avenue B

San Angelo, TX 76903

325-655-4136

877-655-4136

PhilOsanangelo.org

www.sanangelo.org

The City of Sugar Land

Sugar Land is a regional employment center with over 24 million square feet of commercial space and home to corporations such as Minute Maid, Schlumberger, Fluor Corporation, Texas Instruments, and UnitedHealth Group. Sugar Land Regional Airport also has one of the top-ranked FBOs, Global Select FBO.

Jennifer A. May, Interim Director of Economic Development

City of Sugar Land

2700 Town Center Blvd. North

Sugar Land, TX 77479

281-275-2229 * Fax: 281-275-2217

ecodevOsugariandtx.gov

www.sugariandecodev.com

Temple Economic Development Corporation

Temple, Texas, is a community with a diverse economic base that includes healthcare, distribution and warehousing, and manufacturing as its foundation. Within 180 miles of a population of 18 million, Temple is strategically located in the heart of the Texas Triangle (Dallas, Houston, San Antonio, and Austin) on I-35.

Charley Ayres, Director of Business Development

Temple Economic Development Corporation

1 South First Street

Temple, TX 76501

254-773-8332

cayresOchoosetemple.com

www.choosetemple.com

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