best performing cities report 2018

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1 JANUARY 2019 BEST-PERFORMING CITIES WHERE AMERICA’S JOBS 2018 ARE CREATED AND SUSTAINED JESSICA JACKSON, JOE LEE, MICHAEL C.Y. LIN, AND MINOLI RATNATUNGA

2 BEST-PERFORMING CITIES WHERE AMERICA’S JOBS 2018 ARE CREATED AND SUSTAINED JESSICA JACKSON, JOE LEE, MICHAEL C.Y. LIN, AND MINOLI RATNATUNGA

3 ON THE WEB Visit best-cities.org ACKNOWLEDGMENTS The authors would like to thank Ross DeVol, the creator of the Best-Performing Cities index, for providing the strong foundation on which this report is built. We are also grateful to Kevin Klowden and our other colleagues in the Institute’s research department for their ideas and input. ABOUT THE MILKEN INSTITUTE The Milken Institute is a nonprofit, nonpartisan think tank. We catalyze actionable solutions to persistent global challenges by connecting human, financial, and educational resources to those who need them. Guided by a conviction that the best ideas, under-resourced, go nowhere, we conduct applied research, convene luminaries from competing viewpoints, and construct programs and initiatives designed to achieve our overarching mission of building meaningful lives. ABOUT THE CENTER FOR REGIONAL ECONOMICS The Center for Regional Economics promotes prosperity and sustainable growth by advancing regional competitiveness and job creation. Through research and policy analysis, stakeholder engagement, and programming, we develop and support actionable economic and policy solutions for local, state, and regional leaders. ©2019 Milken Institute This work is made available under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License, available at creativecommons.org/licenses/by-nc-nd/3.0/

4 CONTENTS Executive Summary 1 ... ... Introduction 5 6 An Emphasis on Outcomes ... National Economic Conditions 7 ... Biggest Gains ... 8 Biggest Drops ... 9 Top 25 Best-Performing Large Cities ... 10 Complete Results: 2018 Best-Performing Large Cities ... 26 Top 10 Best-Performing Small Cities ... 31 Complete Results: 2018 Best-Performing Small Cities ... 39 Endnotes ... 44 About the Authors ... 51

5 ON THE WEB Visit best-cities.org

6 EXECUTIVE SUMMARY America’s metropolitan areas have driven growth through the economic expansion, creating jobs and prosperity with their policy choices and their industrial, workforce, and innovation assets. The Milken Institute’s Best-Performing Cities (BPC) index provides an objective benchmark for examining underlying factors for and identifying unique characteristics of economic growth in successful regions. Our index uses an outcomes-based set of metrics such as job creation, wage gains, and technological developments to evaluate the relative growth of metropolitan areas. While national and international political and economic forces beyond a region’s control can affect near-term performance, the top-performing metros have cohesive strategies that allow them to leverage their assets more effectively. They offer important lessons that may be helpful to peer regions. Here are the highlights of the 2018 rankings: No. 1 Provo-Orem, UT , held steady at the top of our index, thanks to a dynamic high-tech » sector, educated workforce, and business-friendly tax and regulatory climate. Bay Area metros surged back with No. 2 San Jose-Sunnyvale-Santa Clara, CA , just » missing out on the top spot, and San Francisco-Redwood City-South San Francisco, CA , holding firm in fourth place. These elite performers were joined by No. 14 Oakland- Hayward-Berkeley, CA No. 18 Santa Rosa, CA , in the Top 25 as the Silicon Valley , and high-tech engine continues firing on all cylinders. » No. 3 Austin-Round Rock, TX , Tech hubs outside California also prospered, with No. 5 Dallas-Plano-Irving, TX , and No. 6 Raleigh, NC , all leveraging their educated workforces and competitive business climates to generate growth. Stronger consumer spending helped lift tourism-oriented metros, including » No. 7 Orlando-Kissimmee-Sanford, FL , No. 22 North Port-Sarasota-Bradenton, FL , and No. 23 Las Vegas-Henderson-Paradise, NV . » Rising back up the rankings is No. 8 Seattle-Bellevue-Everett, WA , where the second strongest high-tech sector in the country raised wages, rents, and employment in the metro. Neighboring , benefitted as the rising cost of No. 19 Olympia-Tumwater, WA housing shifted residents and businesses beyond the Seattle metro. University towns like No. 9 Fort Collins, CO , did well, with many represented on our list of » No. 38 Merced, CA . the biggest gainers, including » States with attractive business climates and economic development strategies contributed to the strong showings on the index for No. 10 Salt Lake City, UT , No. 12 Boise City, ID , No. 13 Charlotte-Concord-Gastonia, NC-SC , No. 20 Phoenix-Mesa-Scottsdale, AZ , No. 21 Ogden-Clearfield, UT No. 25 Nashville-Davidson-Murfreesboro-Franklin, TN . , and » Auto-related manufacturing investments in No. 11 Reno, NV , and No. 16 Charleston-North Charleston, SC , created new opportunities for residents. Bend-Redmond, OR , was the No. 1 best-performing small city for the third year in a row, » still riding unrivaled job growth that began in the five years ending in 2017. High-tech industries continue to fuel growth in many of the best-performing cities, creating opportunities for highly-skilled workers. Low unemployment rates and a shortage of skilled labor are spurring more competition for knowledge-workers, putting upward pressure on wages in the tech sector and widening the income gap. The top metros are enjoying impressive job and wage growth in aggregate, but many are also seeing housing prices rise sharply. As a result, lower-wage residents are being forced to commute from neighboring metros, reducing their quality of life and limiting access to the opportunities being created in these vibrant tech hubs. 1

7 The national economy provided a strong base for regional growth with soaring stock markets, low inflation, and high employment supporting consumer confidence. The leisure, hospitality, and retail sectors benefited from higher disposable incomes. Skilled service workers were much in demand; the health-care, education, professional, and business services created just under a million jobs in 2017 across the U.S. Best-Performing Large City: Provo-Orem, UT Provo-Orem, UT , ranks first again this year, demonstrating remarkably consistent growth despite their continued expansion and tight labor market. Brigham Young University helps train graduates for the high-skill opportunities being created in the metro, but in-migration is necessary to keep the economy moving at its fast pace. Firms like Adobe and Podium contributed to the metro’s fast pace of high-tech GDP growth between 2012 and 2017. Exceptional regional rates of job creation helped Provo-Orem best more established high-tech hubs on the BPC index in 2018. Top 25 Best-Performing Large Cities TABLE 1 Rank according to 2018 index 2017 Rank Metropolitan Statistical Area (MSA)/Metropolitan Division (MD) 2018 Rank Change 1 Steady 1 Provo-Orem, UT MSA 2 11 +9 San Jose-Sunnyvale-Santa Clara, CA MSA 3 9 +6 Austin-Round Rock, TX MSA 4 San Francisco-Redwood City-South San Francisco, CA MD 4 Steady 3 -2 5 Dallas-Plano-Irving, TX MD 6 2 -4 Raleigh, NC MSA 7 7 Steady Orlando-Kissimmee-Sanford, FL MSA 8 17 +9 Seattle-Bellevue-Everett, WA MD Fort Collins, CO MSA 9 5 -4 10 10 Salt Lake City, UT MSA Steady Reno, NV MSA 11 +26 37 12 +14 Boise City, ID MSA 26 Charlotte-Concord-Gastonia, NC-SC MSA 13 13 Steady 14 16 +2 Oakland-Hayward-Berkeley, CA MD Riverside-San Bernardino-Ontario, CA MSA 15 +5 20 16 22 Charleston-North Charleston, SC MSA +6 Atlanta-Sandy Springs-Roswell, GA MSA 17 14 -3 Santa Rosa, CA MSA 18 43 +25 Olympia-Tumwater, WA MSA 19 +20 39 20 40 Phoenix-Mesa-Scottsdale, AZ MSA +20 Ogden-Clearfield, UT MSA 21 28 +7 North Port-Sarasota-Bradenton, FL MSA 22 6 -16 Las Vegas-Henderson-Paradise, NV MSA 23 41 +18 Denver-Aurora-Lakewood, CO MSA 24 23 -1 8 Nashville-Davidson-Murfreesboro-Franklin, TN MSA 25 -17 Source: Milken Institute. BEST-PERFORMING CITIES 2018 2

8 Biggest Gains Merced, CA , University and college towns improved their standing on our index this year, with leaping 56 places to 38th thanks to expansion at the University of California, Merced campus. Other regions combined their universities with high-tech clusters to generate growth that built on their highly-skilled workforce. Some strong manufacturing and defense-based economies also advanced up the index. Best-Performing Small City: Bend-Redmond, OR The Bend-Redmond, OR , metro is the best-performing small city for the third year running, thanks to unmatched five-year job and wage growth. The entrepreneurial community in Bend- Redmond is contributing to the metro’s strong high-tech performance. The region has invested in its knowledge-economy with the Oregon State University-Cascades Innovation Co-Lab, an incubator and educational resource for entrepreneurs. Bend-Redmond’s scenic location and quality of life are attractive to new residents and tourists, drawing people to the area. 3 EXECUTIVE SUMMARY

9 4 BEST-PERFORMING CITIES 2018

10 INTRODUCTION America’s metropolitan areas have driven growth through the economic expansion, creating jobs and prosperity through their policy choices and their industrial, workforce, and innovation assets. But while some parts of the country are thriving, others are failing to keep up. The Milken Institute’s Best-Performing Cities index provides an objective benchmark for examining underlying factors for and identifying unique characteristics of economic growth in U.S. regions. Our index uses an outcomes-based set of metrics—such as job creation, wage gains, and technological developments—to evaluate the relative growth of metropolitan areas. While national and international political and economic forces beyond a region’s control can affect near-term performance, the top-performing metros have cohesive strategies that allow them to leverage their assets more effectively. They offer important lessons that may be helpful to peer regions. The goal of our Best-Performing Cities index is to help businesses, investors, industry associations, development agencies, government officials, academics, and public-policy groups monitor and evaluate how well their metro is promoting economic vitality relative to the rest of the country. The index also provides benchmarking data that can inform approaches to improving a region’s performance over time. The index can serve as a tool for understanding real estate, consumer, and business opportunities by indicating where employment is stable 1 and expanding, wages and salaries are increasing, and economies and businesses are thriving. A shared understanding of their region’s competitiveness will help communities create a strategic economic vision focused on industries with the capacity to stimulate sustained growth and prosperity. By targeting local sectors with a robust competitive advantage, communities can seek to reduce the impact future dips in the business cycle have on local employment and economic activity. Regions that better link education and training programs to the workforce needs of employers will attract businesses and create more opportunities for residents. Developing new industries and companies will require fostering entrepreneurship and innovation through research institutions, incubators, and funding programs. Knowledge-based economies—those with innovation industries and skilled labor at their core— have done well on the Best-Performing Cities index in recent years by adapting to economic and political changes. They take different forms, with some innovation hubs excelling despite high housing costs and a heavy regulatory burden, while others have attracted workers and firms away from the coasts with lower costs of living and doing business. High-profile corporate site searches, like Amazon’s recently concluded HQ2 competition, increasingly highlight the importance of a strong knowledge-economy. Access to a large pool of highly-skilled workers is crucial, and increased competition for talent may push some firms to relocate out of the HQ2 winning New York and Washington, D.C. metros to other tech hubs. This 2018 edition of the index applies the same methodology used previously. We employ the geographic terms and definitions used by the Office of Management and Budget (OMB), most recently updated after the 2010 U.S. census. The OMB defines a metropolitan statistical area (MSA) as a region generally consisting of a large population nucleus and adjacent territory with a high degree of economic and social integration, as measured by community ties. With these parameters, the agency identifies 381 metropolitan statistical areas. County population growth accounts for the creation of new MSAs. If specific criteria are met, an MSA with a single nucleus and a population of 2.5 million or more is further divided into geographic areas called metropolitan divisions (MDs), of which there are currently 31 in the country. For example, the MSA of Philadelphia-Camden-Wilmington, PA-NJ-DE, comprises three MDs (Philadelphia, PA, Camden, NJ, and Wilmington, DE). We include the smaller MDs in the index to reflect more detailed geographic growth patterns. 5

11 An Emphasis on Outcomes Table 2 shows the components used to calculate the Best-Performing Cities rankings. The index measures growth in jobs, wages, salaries, and technology output over five years (2012-2017 for jobs and technology output, and 2011-2016 for wages and salaries) to adjust for extreme variations in business cycles. It also incorporates the latest available year’s performance in these areas (2016-2017 for jobs and technology output and 2015-2016 for wages and salaries). In addition, it includes a measure of 12-month job growth (August 2017-August 2018), to capture 2 recent momentum among metropolitan economies. Components of the Best-Performing Cities Index TABLE 2 Weight Component Job growth (I=2012) 0.143 Job growth (I=2016) 0.143 Wage and salary growth (I=2011) 0.143 Wage and salary growth (I=2015) 0.143 Short-term job growth (Aug 17-Aug 18) 0.143 High-tech GDP growth (I=2012) 0.071 High-tech GDP growth (I=2016) 0.071 High-tech GDP location quotient (2017) 0.071 Number of high-tech industries with GDP LQ>1 (2017) 0.071 Note: I refers to the beginning year of the index. Weights do not add up to 1, due to rounding. Source: Milken Institute. Employment growth is heavily weighted because of its critical importance to community vitality, as is growth in wages and salaries. These metrics signal the quality of the jobs being created and retained. Other measures reflect the concentration and diversity of technology industries within the MSAs and MDs. High-tech location quotients (LQs), which measure the industry’s concentration in a particular metro relative to the national average, are included to gauge an area’s participation in the knowledge-based economy. We also measure the number of specific high-tech fields (out of a possible 19) whose concentrations in an MSA or MD are higher than the national average. BPC is solely an outcomes-based index. It does not incorporate input measures (business costs, cost-of-living components, and quality-of-life conditions such as commute times or crime rates). These measures, although important, are prone to wide variations and can be highly subjective. BEST-PERFORMING CITIES 2018 6

12 National Economic Conditions It is important to understand the general trends affecting regional economies when judging how well they responded to shifts in national economic conditions. These conditions set the context in which regions, firms, and individuals make choices, and may limit the options available to them. The U.S. economy continued to perform well through 2017, benefiting from momentum in the growth of high-tech industries. Regions with a concentration of those sectors continued to score highly on our index, with many that had dropped slightly on our 2017 index recovering ground in this edition. Interest rates were raised three times over the course of 2017, and inflation remained low. Unemployment was 4.4 percent nationally, lower than in the previous year, and the labor force grew by 0.5 percent. Despite increased employment, wage growth experienced a significant slowdown, dropping from 5.1 percent in both 2014 and 2015 to 2.9 percent in 2016. Productivity growth was low, at 1.1 percent, but up slightly from 2016. Stock market averages rose dramatically in 2017, with the S&P 500 index rising by 20 percent and the Dow Jones Industrial Average rising 25 percent. Demand for skilled services continued as a major source of employment growth. Overall, the professional and business services sectors added approximately 418,000 jobs in 2017, up 2.1 percent and making up 18.8 percent of all jobs added across the U.S. economy that year. Health-care and education employment made up 24 percent of new jobs nationally, adding almost 550,000 new positions, mostly in health care. Consumer spending was strong—4.3 percent higher in 2017 than in 2016—thanks to a robust job market, relatively low inflation, and disposable income 2.6 percent higher than in 2016. This fueled growth in the leisure and hospitality sectors, which added more than 400,000 jobs in 2017. These labor-intensive sectors created 17.6 percent of total new jobs, but only 4 percent of new GDP. Retail sales were also higher—4.7 percent above 2016 spending—and e-commerce retail sales continued to grow, putting pressure on brick and mortar stores. The affordability of housing remains a cause for concern in major metros across the nation, especially in the coastal high-tech cities. House prices increased by 6.8 percent nationally, and by much more in some high-tech metros. Nationally, the market tried to respond, with housing starts up 2.6 percent and construction employment up 3.4 percent, adding just under 229,000 jobs in 2017 (10 percent of total new jobs). Energy prices rose in 2017, with the spot price for Brent Crude up from $44 to $55 and natural gas prices up 19 percent in the U.S. This shift affects both producers of oil and gas and the manufacturers who use the commodities as inputs. Manufacturing GDP grew by 1.9 percent in 2017, contributing 9.6 percent of national GDP growth. Employment growth in the sector was more modest, up less than 0.75 percent. Hurricanes Harvey, Irma, and Maria had massive economic impact on the regions they hit in 2017. However, where infrastructure held, as it did in Houston, the effects on economic momentum were temporary and activity picked up later in the year, highlighting the importance of resilient infrastructure. The effects of the Tax Cuts and Jobs Act, signed in December 2017, will become more apparent in next year’s report, when consumer and investor choices affected by the change in tax structure manifest in the economy. Similarly, the data used in this report predates major 2018 changes in trade agreements and tariffs. INTRODUCTION 7

13 Biggest Gains The industrial makeup of the biggest gainers is fairly mixed. Many are college towns with some Durham-Chapel Hill, NC Lansing-East Lansing, ; ; other industrial sectors (e.g., Albuquerque, NM ; Tallahassee, FL ; MI ). Others have big defense and manufacturing sectors ; Merced, CA Tucson, AZ ) or defense and high-tech sectors (e.g., Colorado Springs, CO ; Norwich-New London, CT (e.g., Manchester-Nashua, NH ). The industrial combinations of the remaining metros Huntsville, AL ; with agriculture and tourism sectors as its vary considerably. Except for Santa Rosa, CA, industrial pillars, the rest of the metros have some high-paying jobs in their industrial makeup. Although Santa Rosa is also among the Top-25 gainers, the Tubbs Fire in October 2017 may impact the region’s agriculture and tourism sectors in the short run. Merced, CA , is the biggest gainer in our index. Its main industries are agriculture and college-related services. The metro has strong performance in its recent job growth. Its one-year (2016-2017) and the recent 12-month job growth rank No. 10 and No. 4, respectively. A key driver of employment expansion is the growth of the University of California, Merced. The university has presented 3 the Merced 2020 program, which could add new classrooms, labs, and student housing. 4 This program is expected to add 10,000 jobs to the region by 2020. Biggest Gains Among Large Cities TABLE 3 (Based on Change in Rankings) 2017 Rank Metropolitan Statistical Area (MSA)/Metropolitan Division (MD) 2018 Rank Change 38 94 +56 Merced, CA MSA 123 177 +54 Norwich-New London, CT MSA 102 +52 154 Tucson, AZ MSA Lansing-East Lansing, MI MSA 89 138 +49 51 99 +48 Myrtle Beach-Conway-North Myrtle Beach, SC-NC MSA 85 121 Kennewick-Richland, WA MSA +36 Scranton-Wilkes-Barre-Hazleton, PA MSA 148 184 +36 Trenton, NJ MSA 66 +35 101 82 11 7 Tallahassee, FL MSA +35 160 +35 125 Albuquerque, NM MSA 34 68 +34 Stockton-Lodi, CA MSA 11 7 150 York-Hanover, PA MSA +33 Salem, OR MSA 72 +32 40 43 Ocala, FL MSA +32 75 Colorado Springs, CO MSA 58 90 +32 Greeley, CO MSA 42 73 +31 Fresno, CA MSA 37 +29 66 77 +29 Durham-Chapel Hill, NC MSA 106 106 135 Camden, NJ MD +29 Huntsville, AL MSA 59 86 '+27 Manchester-Nashua, NH MSA 73 10 0 +27 Pensacola-Ferry Pass-Brent, FL MSA 107 +27 80 Buffalo-Cheektowaga-Niagara Falls, NY MSA 143 170 +27 Reno, NV MSA 11 37 +26 43 Santa Rosa, CA MSA 18 +25 Source: Milken Institute. BEST-PERFORMING CITIES 2018 8

14 Biggest Drops The construction boom many Florida metros experienced during the mid-2010s is coming to an , and end in some parts of southern Florida. Port St. Lucie, Naples-Immokalee-Marco Island, FL FL saw a major slowdown in construction hiring in the short-term. Those two metros and West Palm Beach-Boca Raton-Delray Beach, FL had a contraction of 2017 employment in tourism- related industries like food and beverage stores, accommodation, and general merchandise stores following the effects of a devastating hurricane season. Many of the metros that dropped the most significantly in our ranking had experienced such significant growth in the years leading up to 2017, it would have required extraordinary increases in jobs, wages, and high-tech GDP to continue ranking well on our index. For example, both Santa Maria-Santa Barbara, CA , had been in the Top 50 since 2014, but were Savannah, GA , and unable to maintain their high growth rate this year. Other metros fell far on our ranking due to a lack of high-tech industry presence. Many on , and Roanoke, VA the biggest drops list, such as Killeen-Temple, TX , ranked very poorly over multiple high-tech GDP indicators, impacting their placement in this index. The majority of our top-ranking metros are driven by their high-tech industries and, more broadly, their knowledge- based economies, and have generated a substantial number of professional, scientific, and Toledo, OH ; Baton Rouge, LA ; and Omaha-Council technical service jobs. Several metros, like , have been leaking jobs in that sector in recent years. Bluffs, NE-IA Biggest Declines Among Large Cities TABLE 4 (Based on Change in Rankings) 2018 Rank 2017 Rank Change Metropolitan Statistical Area (MSA)/Metropolitan Division (MD) Naples-Immokalee-Marco Island, FL MSA -75 93 18 108 48 -60 Savannah, GA MSA 104 45 -59 Santa Maria-Santa Barbara, CA MSA 84 -46 38 Warren-Troy-Farmington Hills, MI MD 135 89 -46 Lake County-Kenosha County, IL-WI MD 188 144 -44 Corpus Christi, TX MSA 126 85 Lincoln, NE MSA -41 Richmond, VA MSA 128 -41 87 185 145 Roanoke, VA MSA -40 32 -39 71 Port St. Lucie, FL MSA 160 121 -39 Winston-Salem, NC MSA 91 53 Louisville-Jefferson County, KY-IN MSA -38 West Palm Beach-Boca Raton-Delray Beach, FL MD 12 -37 49 99 Columbus, OH MSA -37 62 Killeen-Temple, TX MSA 159 123 -36 Ann Arbor, MI MSA 87 52 -35 Baton Rouge, LA MSA 145 -35 110 179 -33 Toledo, OH MSA 146 172 141 Duluth, MN-WI MSA -31 Oxnard-Thousand Oaks-Ventura, CA MSA 110 81 -29 Detroit-Dearborn-Livonia, MI MD 121 92 -29 Lexington-Fayette, KY MSA 84 -28 11 2 Cincinnati, OH-KY-IN MSA 131 104 -27 Harrisburg-Carlisle, PA MSA 151 124 -27 108 Omaha-Council Bluffs, NE-IA MSA 134 -26 Source: Milken Institute. INTRODUCTION 9

15 PROVO-OREM, UT # 1 Held steady JOB GROWTH (2012-17) ASSETS 1ST • Dynamic economy consistently creating jobs, including in a vibrant JOB GROWTH (2016-17) 3RD high-tech sector. 3RD WAGE GROWTH (2011-16) Brigham Young University attracts and educates students, supporting • 2ND WAGE GROWTH (2015-16) the local economy and a highly-skilled local workforce. 5TH SHORT-TERM JOB GROWTH (8/2017-8/2018) 3RD HIGH-TECH GDP GROWTH (2012-17) LIABILITIES HIGH-TECH GDP GROWTH (2016-17) 80TH Tight labor market creating a shortage of skilled labor to staff • continued growth. 13TH HIGH-TECH GDP CONCENTRATION (2017) NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 22ND holds on to the top spot on the 2018 Best- 2012 and 2017, GDP in the sector grew 31 percent faster than the Provo-Orem, UT, national high-tech sector. However, this pace has slowed in the Performing Cities index. While the size of its lead has shrunk past year, and the national high-tech economy grew faster in 2017. substantially since last year, exceptional job growth between 2012 and 2017 helped the region best the much larger and more People continue to move to the region, with close to 6,000 net established tech metros in the Top 5. Investments by firms like new residents coming to the Provo-Orem metro in 2017. Over Adobe and Wavetronix continue to create opportunity in the region, the past five years, the region added more than 18,000 new but the tight labor market is beginning to slow growth slightly. 11 residents through in-migration. This is creating competition for housing and driving up rents. The Provo municipal council Brigham Young University (BYU), based in Provo, is a major asset recognized affordable housing as a key priority for the next two for the region and serves as an anchor for its knowledge-based 12 years. As part of their planning, they are exploring a variety economy. More than 25,000 people provide educational services of housing options, including tiny homes. Not everyone is on in the Provo-Orem metro, up 1,000 in 2017 alone. While the board with increasing density, and zoning concerns remain. 33,500 enrolled students help support consumer spending and In Provo, a new disclosure law highlighted the occupancy employment in the hospitality sector, the connections made restrictions already in place with the intention of raising and the research being done at the university also help create awareness and increasing enforcement. The tone of the 5 new firms. Cloud-based business analytics firm Domo was discussion surrounding this new law may have made young 6 Based founded in 2010 by a BYU grad and went public in 2018. 13 BE S T-P E R F OR MING professionals moving to the region feel less welcome. Given in American Fork, UT, Domo has clients around the country, the large Millennial workforce in the Provo-Orem metro, which including MasterCard and DHL. In November 2018, it was at 29.5 percent represents a larger share of the population than announced that Qualtrics International Inc., a customer survey in the rest of the Top 5, a preference against multiple roommates software firm co-headquartered in Provo, UT, and Seattle, WA, and sharing an apartment in a tight housing market may discourage 7 TOP 25 L ARGE CITIES one of Utah’s star startups, would be sold to SAP for $8 billion. workers in other tech hubs from relocating to the region. However, the high quality of life and community connection is More recently formed startups are also doing well. Podium, helpful in retaining local talent, despite the higher wages paid a Lehi-based software firm that helps small businesses manage elsewhere. The region has a deep well of high-skill workers; their reputations online, moved into their new headquarters 8 41 percent of residents over 25 have at least a bachelor’s degree. The firm, founded in 2014, plans to add 400 in August 2018. employees by 2020, more than doubling their headcount. The construction industry in Provo and neighboring metros reports Podium was ranked 13th on the Inc. 500 list of America’s fastest- difficulty hiring workers. In Utah, four in five contractors reported growing firms and was joined on the list by 14 other Utah firms, finding it challenging to fill “some or all of their positions,” and 9 many also located in Lehi, Orem, and Provo. firms are collaborating with career technical education providers 14 to broaden the labor pipeline. An additional 1,000 jobs for Wage growth in the five years ending in 2016 was 19 percent specialty trade contractors were created in 2017, contributing to ahead of the U.S. economy, and job growth over the past five the 8,400 added between 2012 and 2017, the largest gain for any years was 17.5 percent faster than the nation. Momentum single industry within the Provo-Orem metro area. remains strong, with the one-year measures of job and wage growth also in the Top 3. However, the metro is smaller than the While the commercial real estate pinch is being felt in Provo, others in the Top 5 best-performing cities, and has the smallest nearby cities have more space to accommodate continuing proportion of high-wage jobs, indicating these impressive growth. Firms continue to move from Provo to Lehi in search growth rates are more easily attained in smaller cities than in of more office space as they mature. In 2015, family history larger metros. While the region is much more affordable than website Ancestry.com moved from Provo to Lehi, and property 15 the coastal high-tech metros it competes with for talent and management software provider Entrata did the same in 2017. company locations, the cost of living has risen above the U.S. Entrata, also started by BYU students, has grown without 10 16 average in recent years. significant venture funding. However, Provo is also attracting firms. Infrastructure investments funded by a $2.5 million loan Still, in the most recent 12 months, the Provo-Orem economy from the federal Housing and Urban Development Department has added jobs at a rate faster than all but four other metros, an led jet refurbishment firm Duncan Aviation to choose a Provo impressive feat this many years into its expansion. The high-tech 17 airport site for their Western hub. The firm will invest sector has played a major part in this development, and between $70 million in the project.

16 PROVO-OREM, UT # 1 Held steady 1ST ASSETS JOB GROWTH (2012-17) Dynamic economy consistently creating jobs, including in a vibrant • JOB GROWTH (2016-17) 3RD high-tech sector. WAGE GROWTH (2011-16) 3RD Brigham Young University attracts and educates students, supporting • 2ND WAGE GROWTH (2015-16) the local economy and a highly-skilled local workforce. SHORT-TERM JOB GROWTH (8/2017-8/2018) 5TH 3RD HIGH-TECH GDP GROWTH (2012-17) LIABILITIES HIGH-TECH GDP GROWTH (2016-17) 80TH Tight labor market creating a shortage of skilled labor to staff • continued growth. HIGH-TECH GDP CONCENTRATION (2017) 13TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 22ND Provo-Orem, UT, holds on to the top spot on the 2018 Best- 2012 and 2017, GDP in the sector grew 31 percent faster than the national high-tech sector. However, this pace has slowed in the Performing Cities index. While the size of its lead has shrunk past year, and the national high-tech economy grew faster in 2017. substantially since last year, exceptional job growth between 2012 and 2017 helped the region best the much larger and more People continue to move to the region, with close to 6,000 net established tech metros in the Top 5. Investments by firms like new residents coming to the Provo-Orem metro in 2017. Over Adobe and Wavetronix continue to create opportunity in the region, the past five years, the region added more than 18,000 new but the tight labor market is beginning to slow growth slightly. 11 residents through in-migration. This is creating competition for housing and driving up rents. The Provo municipal council Brigham Young University (BYU), based in Provo, is a major asset recognized affordable housing as a key priority for the next two for the region and serves as an anchor for its knowledge-based 12 years. As part of their planning, they are exploring a variety economy. More than 25,000 people provide educational services of housing options, including tiny homes. Not everyone is on in the Provo-Orem metro, up 1,000 in 2017 alone. While the board with increasing density, and zoning concerns remain. 33,500 enrolled students help support consumer spending and In Provo, a new disclosure law highlighted the occupancy employment in the hospitality sector, the connections made restrictions already in place with the intention of raising and the research being done at the university also help create awareness and increasing enforcement. The tone of the 5 new firms. Cloud-based business analytics firm Domo was discussion surrounding this new law may have made young 6 Based founded in 2010 by a BYU grad and went public in 2018. 13 BE S T-P E R F OR MING professionals moving to the region feel less welcome. Given in American Fork, UT, Domo has clients around the country, the large Millennial workforce in the Provo-Orem metro, which including MasterCard and DHL. In November 2018, it was at 29.5 percent represents a larger share of the population than announced that Qualtrics International Inc., a customer survey in the rest of the Top 5, a preference against multiple roommates software firm co-headquartered in Provo, UT, and Seattle, WA, and sharing an apartment in a tight housing market may discourage 7 L ARGE CITIES one of Utah’s star startups, would be sold to SAP for $8 billion. workers in other tech hubs from relocating to the region. However, the high quality of life and community connection is More recently formed startups are also doing well. Podium, helpful in retaining local talent, despite the higher wages paid a Lehi-based software firm that helps small businesses manage elsewhere. The region has a deep well of high-skill workers; their reputations online, moved into their new headquarters 8 41 percent of residents over 25 have at least a bachelor’s degree. The firm, founded in 2014, plans to add 400 in August 2018. employees by 2020, more than doubling their headcount. The construction industry in Provo and neighboring metros reports Podium was ranked 13th on the Inc. 500 list of America’s fastest- difficulty hiring workers. In Utah, four in five contractors reported growing firms and was joined on the list by 14 other Utah firms, finding it challenging to fill “some or all of their positions,” and 9 many also located in Lehi, Orem, and Provo. firms are collaborating with career technical education providers 14 to broaden the labor pipeline. An additional 1,000 jobs for Wage growth in the five years ending in 2016 was 19 percent specialty trade contractors were created in 2017, contributing to ahead of the U.S. economy, and job growth over the past five the 8,400 added between 2012 and 2017, the largest gain for any years was 17.5 percent faster than the nation. Momentum single industry within the Provo-Orem metro area. remains strong, with the one-year measures of job and wage growth also in the Top 3. However, the metro is smaller than the While the commercial real estate pinch is being felt in Provo, others in the Top 5 best-performing cities, and has the smallest nearby cities have more space to accommodate continuing proportion of high-wage jobs, indicating these impressive growth. Firms continue to move from Provo to Lehi in search growth rates are more easily attained in smaller cities than in of more office space as they mature. In 2015, family history larger metros. While the region is much more affordable than website Ancestry.com moved from Provo to Lehi, and property 15 the coastal high-tech metros it competes with for talent and management software provider Entrata did the same in 2017. company locations, the cost of living has risen above the U.S. Entrata, also started by BYU students, has grown without 10 16 average in recent years. significant venture funding. However, Provo is also attracting firms. Infrastructure investments funded by a $2.5 million loan Still, in the most recent 12 months, the Provo-Orem economy from the federal Housing and Urban Development Department has added jobs at a rate faster than all but four other metros, an led jet refurbishment firm Duncan Aviation to choose a Provo impressive feat this many years into its expansion. The high-tech 17 airport site for their Western hub. The firm will invest sector has played a major part in this development, and between $70 million in the project. 11 TOP 25 BEST-PERFORMING LARGE CITIES 11 TOP 25 BEST-PERFORMING LARGE CITIES

17 SAN JOSE-SUNNYVALE-SANTA CLARA, CA # 2 Gained 9 spots 16TH ASSETS JOB GROWTH (2012-17) • Large and diversified high-tech industry cluster continues to generate new 30TH JOB GROWTH (2016-17) opportunities through innovation and investment. 2ND WAGE GROWTH (2011-16) • Entrepreneurial culture and mobile workforce disseminate new knowledge WAGE GROWTH (2015-16) 6TH through the cluster more quickly than in more restrictive environments. SHORT-TERM JOB GROWTH (8/2017-8/2018) 11TH HIGH-TECH GDP GROWTH (2012-17) 4TH LIABILITIES 14TH HIGH-TECH GDP GROWTH (2016-17) High cost of living is creating a shortage of affordable housing, pushing • non-tech workers out of the region. 1ST HIGH-TECH GDP CONCENTRATION (2017) 2ND NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) San Jose-Sunnyvale-Santa Clara, CA , rises nine spots to dipped slightly, down less than 1 percent from the 2016 total. Thinfilm, a Norwegian manufacturer of low-cost printed chips, claim second place. At the heart of Silicon Valley, the region 19 opened in a former Qualcomm site in North San Jose in 2017. is home to the highest concentration of high-tech industry GDP in the U.S. This cluster has generated dramatic growth The high-skill employment base has contributed to impressive throughout the recovery and expansion, and has earned the wage growth in the region, with professional, scientific, and San Jose-Sunnyvale-Santa Clara metro the top spot three technical services creating 32,600 jobs between 2012 and 2017. times since 2012. This year, it scored only slightly behind the The sector, which is the top employer in the region, includes a Provo-Orem, UT, metro, which outperformed the California large number of tech jobs in fields like artificial intelligence, tech hub on all our job growth indicators. Led by firms like autonomous driving, and mobile app development. In December Apple, Google, and Intel that continue to invest in the region, 2017, approximately 68 percent of the metro population—or short-term job growth indicates momentum in the San Jose- 20 760,000 people—were employed in high-wage positions. Sunnyvale-Santa Clara economy remains strong. Despite the high wages, domestic net migration has been Typically, a large established industry would have trouble negative for several years as people leave the San Jose metro generating impressive rates of GDP growth this many years in search of lower cost housing. International migration has into an expansion, since each percent change represents sometimes been enough to offset the population loss, but in more economic activity than in a metro with a smaller base. 2017 approximately 5,000 more people left than moved into However, in 2017, the San Jose-Sunnyvale-Santa Clara 21 This places a limit on future growth and has the region. high-tech industry grew more than 4 percent faster than the serious implications for congestion and quality of life in the national average, ranking 14th on this measure. The diversity region if unaddressed. and dynamism of the regional knowledge-economy (with 15 of 19 possible high-tech sectors concentrated in the metro) Availability of affordable workforce housing is a growing has made this possible. The presence of Stanford University, problem for the region. Housing prices have continued to rise an elite research university and educator of highly skilled dramatically in the San Jose-Sunnyvale-Santa Clara metro, graduates, adds to the attractive labor pool and produces and even high-tech firms are dedicating funds to addressing 22 innovative research that helps seed new sectors. In the summer of 2018, the median the price of housing. price of a single-family home in the City of San Jose was $1.23 Other information services, which include cloud computing million. The real estate market is responding, with the number services, added 21,600 jobs in the five years ending in 2017, of residential construction permits issued up by close to 20 more than in any other metro. Momentum in this developing 23 percent over the previous year. sector remains strong, with 5,800 of the new positions added in 2017 alone. Traditional Silicon Valley firms are investing in Cash-rich tech firms such as Facebook, Google, Amazon, this sector, too. In October 2017, San Jose-based technology and Apple have invested in commercial real estate around conglomerate Cisco bought BroadSoft, a communications the San Jose-Sunnyvale-Santa Clara metro, building and 18 software firm, for $1.9 billion. leasing enormous office spaces. Adobe, for example, has proposed to add a fourth tower to their San Jose campus. Known for its advanced manufacturing, the region still hosts 24 It would accommodate up to 3,000 new employees onsite. significant production activity, although many firms have Construction will continue into the coming years, creating chosen to build additional plants elsewhere. The computer and employment in the building trades. electronic product manufacturing sector employed 113,500 people in 2017, more than in any other metro, but employment 12 BEST-PERFORMING CITIES 2018 12 BEST-PERFORMING CITIES 2018

18 AUSTIN-ROUND ROCK, TX # 3 Gained 6 spots JOB GROWTH (2012-17) 4TH ASSETS • Competitive business climate combined with an established high-tech hub 13TH JOB GROWTH (2016-17) supports employment and wage growth. WAGE GROWTH (2011-16) 5TH The University of Texas at Austin attracts and trains a highly-skilled and • 12TH WAGE GROWTH (2015-16) entrepreneurial workforce. SHORT-TERM JOB GROWTH (8/2017-8/2018) 24TH HIGH-TECH GDP GROWTH (2012-17) 14TH LIABILITIES HIGH-TECH GDP GROWTH (2016-17) 40TH Economic growth has created upward pressure on the cost of living, • making the region less attractive than other Texas metros. HIGH-TECH GDP CONCENTRATION (2017) 11TH 29TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) Austin-Round Rock, TX (UT Austin), contribute to a highly educated workforce , rises six places to rank third. A remarkably consistent high performer, the Austin-Round that attracts tech firms to the region. Almost 45 percent of residents aged 25 and older hold at least a bachelor’s degree. Rock region has now claimed a spot in the Top 5 for nine of the last ten Best-Performing Cities indexes, earning the top honors In the 2017-18 academic year, 51,500 students were enrolled in 2009 and 2013. Texas’ state capital is home to a vibrant 27 The total teaching faculty at the university, at UT Austin. cultural scene and a large university population. Its strength including the medical school, is around 3,100. This cluster in a diverse set of industries has helped the region generate of researchers has yielded new ideas and new firms that growth at different points of the business cycle. The five-year benefit the local economy. In fiscal year 2016, ten new Texas metrics, which track performance in the medium-term, are companies were founded based on UT Austin patents, and stronger than the one-year metrics, but momentum is still 28 the university received $17.6 million in licensing revenue. strong. More than 38,300 net new residents moved to the Not all startups originating at the university generate licensing Austin-Round Rock metro in 2017, adding to upward pressure income for the university, though the success of the namesake on housing costs. computer firm Michael Dell founded out of his UT Austin dorm room has benefited the university by elevating the high-tech More than 103,000 people are employed providing sector in the city and enabling the gift that helped establish professional, scientific, and technical services, and the sector 29 the Dell Medical School. continues to grow—adding close to 5,000 jobs in 2017 alone. Since 2007, the field has expanded steadily, almost doubling Samsung Austin Semiconductor is a major U.S. manufacturing between 2007 and 2017. These high-wage jobs contribute plant, producing chips that are included in the company’s to the broader economy through consumer spending, for televisions and mobile phones. The factory has attracted example in restaurants and bars, which added 3,200 positions $16 billion in investment since 1997, and 3,000 people are in 2017. California-based tech firm Oracle Corp. is a major 30 Samsung is one of many major firms employed onsite. presence in Austin and plans to expand its footprint in coming attracted to the city of Austin as a result of an economic years. In March 2018, it opened its new 560,000 square foot development strategy focused on outside business corporate campus in Southeast Austin, and reports suggest a recruitment. In 2018, Austin changed the policies governing 25 The firm second similarly-sized extension is in development. the incentives program to broaden its use by small and is tied into the high-tech ecosystem in the Austin metro, and 31 The decade-long presence of the Austin- local businesses. in October 2018 Oracle announced they had selected six local Round Rock metro among the top tier of the best-performing 26 startups to work within their first U.S. accelerator. cities is a testament to the success of a previous economic As the Texas state capital, Austin has significant government development strategy in creating jobs and attracting employment. The region hosted more than 166,000 state investment throughout the business cycle. The region has and local government workers in 2017. This figure includes prospered as a whole and strengthened its high-tech and state administrators along with teachers and state university high-skills clusters. However, the new policies aim to address employees, as well as a slight reduction in government concerns over the distribution of the opportunities created and employees that year, caused by restrictions on state hiring. leverage existing economic strength. The success of the new approach will be seen in future editions of this index. With the 11th largest high-tech concentration in the country, the Austin-Round Rock region has built a robust high-tech cluster. Graduates from The University of Texas at Austin 13 TOP 25 BEST-PERFORMING LARGE CITIES 13 TOP 25 BEST-PERFORMING LARGE CITIES

19 SAN FRANCISCO-REDWOOD CITY-SOUTH SAN FRANCISCO, CA # Held steady 4 11TH ASSETS JOB GROWTH (2012-17) • Dynamic high-tech sector is creating new technologies and industries, JOB GROWTH (2016-17) 40TH sustaining the economic expansion. WAGE GROWTH (2011-16) 1ST • Educated and mobile workforce is attractive to employers seeking to hire WAGE GROWTH (2015-16) 1ST skilled and experienced employees. SHORT-TERM JOB GROWTH (8/2017-8/2018) 59TH 1ST HIGH-TECH GDP GROWTH (2012-17) LIABILITIES HIGH-TECH GDP GROWTH (2016-17) 11TH Lack of affordable workforce housing and the resulting high cost of living • is contributing to homelessness and migration out of the region. 5TH HIGH-TECH GDP CONCENTRATION (2017) NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 15TH and other firms, including Twitter, opposing it. If the tax San Francisco-Redwood City-South San Francisco, CA, holds steady for the third year in fourth place. The phenomenal survives court challenges, it would roughly double funding for homelessness services while adding to the tax obligations of growth in the high-tech sector over the past five years has created high-paying jobs and dramatic wage growth within large companies in the city of San Francisco. This may affect expansion and location decisions in the future. the metro, more than anywhere else in the country on both our one- and five-year measures. Given the geographic and The San Francisco-Redwood City-South San Francisco metro regulatory constraints within the metro area, this has created has a highly educated population, with 55 percent of residents scarcity on several fronts. Competition for housing, office aged 25 and older holding at least a bachelor’s degree. This space, and workers have continued to drive up rents, wages, is higher than in the neighboring San Jose metro, where just and commute times as firms and families move further out to under 51 percent hold an advanced degree. Rich amenities the edges of the metro and beyond. and a more urban lifestyle make the city attractive to young High-tech industries are core to the San Francisco-Redwood professionals, and the San Francisco region is home to a larger share of millennials than the San Jose metro area City-South San Francisco economy. They represent a large (three percentage points higher in 2017). share of economic activity—the fifth highest share in the nation—and provide employment to thousands of people. The geographic spread of the Silicon Valley cluster and In 2017, more than 180,000 people worked in the professional, the lifestyle preferences and spending power of the tech scientific, and technical services sector for example, up by workforce have created demand for both public and private almost 45,000 from five years earlier. transportation. In 2017, almost 2,000 new jobs were created Investments in insurance technology firms suggest in the transit and ground transportation sector, which, like the 5,200 jobs created between 2012 and 2017, was more than entrepreneurs and venture capitalists see opportunities for any other region in the U.S. These jobs include controversial big wins in a well-regulated but staid market. Metromile, a car private bus services run by tech firms, including Google and insurance provider offering coverage per mile for occasional drivers, raised an additional $90 million in Series E funding Facebook, to take their workers from San Francisco to San 32 34 The data processing, hosting, and related services Jose locations. in 2018. industry, which captures activity in the cloud computing South San Francisco remains a major bioscience hub and is sector, added 2,000 jobs in 2017 and 9,500 over the 2012-2017 home to Genentech, a biotech firm founded in 1976. The firm five-year period. These figures put San Francisco-Redwood was an early partner of 23andMe, a genetic testing company City-South San Francisco ahead of all other U.S. metros for also based in South San Francisco that has assembled a the number of jobs added, and it is second only to the New wealth of genetic information from customers interested in York-Jersey City-White Plains metropolitan division for total 35 The University of California understanding their ancestry. employment in the sector. San Francisco has continued to invest in medical centers and research hospitals, building on its expertise in life sciences The rising cost of housing is contributing to homelessness research. The university is well poised to continue this legacy and creating hardship visible to residents and visitors to the and plans to put a $500 million pledge from the Helen Diller region. In November 2018, voters in San Francisco approved Foundation toward building a patient-centered hospital at a new gross receipts tax on businesses with revenues over 36 33 their Parnassus Heights campus. Revenue from the new tax would be used to $50 million. fund programs for the city’s homeless population. Business and civic leaders were divided over the new tax, with some firms like Salesforce supporting the measure and the Mayor BEST-PERFORMING CITIES 2018 14 14 BEST-PERFORMING CITIES 2018

20 DALLAS-PLANO-IRVING, TX # 5 Dropped 2 spots JOB GROWTH (2012-17) 14TH ASSETS A competitive business climate supports broad-based economic growth. • 20TH JOB GROWTH (2016-17) • High-profile corporate headquarters create demand for professional 14TH WAGE GROWTH (2011-16) services. 37TH WAGE GROWTH (2015-16) 15TH SHORT-TERM JOB GROWTH (8/2017-8/2018) LIABILITIES HIGH-TECH GDP GROWTH (2012-17) 13TH • Rising construction costs make housing less affordable, eroding a key HIGH-TECH GDP GROWTH (2016-17) 27TH competitive advantage. 24TH HIGH-TECH GDP CONCENTRATION (2017) 8TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) Dallas-Plano-Irving, TX The telecommunications sector, anchored by AT&T, employs , ranks fifth, down two spots on this more than 33,000 in the Dallas-Plano-Irving region. Although year’s index. Although the metro did not place in the Top 10 the industry is shedding jobs in other regions, in 2017 for any of our growth metrics, the combination of a robust and diverse high-tech industry and solid growth in jobs and it added 500 positions in the Dallas region, more than wages across all the one-year, five-year, and short-term job anywhere else in the country. In 2018, AT&T announced they would be investing $100 million to refurbish their downtown growth measures reveals the broad-based vitality of the Dallas offices, aiming to modernize and better integrate it into Dallas-Plano-Irving regional economy. The metro gained 39 the fabric of the city. 14,000 positions responsible for the management of companies and enterprises between 2012 and 2017, more than any other Liberty Mutual Insurance opened their new Plano campus in region in the U.S. and underscoring how attractive the location late 2017. The firm is consolidating employees from around is for global and regional headquarters. Dallas-Plano-Irving the region in their new towers and had 2,300 staff moved in also added 37,800 administrative and support service jobs 40 State Farm, another insurance firm, has its by mid-2018. over the same five-year period, and 5,200 in 2017 alone. regional headquarters in Richardson, with more than 7,200 McKesson Corporation, a California based pharmaceutical 41 Insurance carriers and related activities employees on site. firm, moved its U.S. Pharmaceutical Group to Irving in 2017, added 3,700 jobs in 2017; 19,000 between 2012 and 2017. 37 Leadership bringing 1,200 employees to regional offices. cited the business climate as a crucial draw to the region. The Dallas-Plano-Irving metro economy is not only creating These headquarter jobs create demand for services and office-based job opportunities. Warehousing and storage contribute to job creation across the high-, mid-, and low- added 4,800 jobs in 2017 thanks to firms like Amazon wage categories. and Wayfair building distribution centers in the region. Employment in this sector has more than doubled since 2012. The opportunities for high-skill workers are expanding in the The L’Oreal Group, a cosmetics firm, invested $17 million to Dallas-Plano-Irving region. The metro ranked second among 42 Almost 40,000 people build a regional distribution center. U.S. metros in the number of professional, scientific, and were employed in the computer and electronic product technical service jobs added between 2012 and 2017. Only the manufacturing sector in the Dallas-Plano-Irving metro in much larger New York City metro division was able to best the 2017. Employment in the sector is shrinking in the majority Dallas-Plano-Irving total of 47,200 new positions in five years. of metros, but is growing slowly and steadily in the Dallas Firms like Charles Schwab and Nokia have been adding to area—although numbers are not yet at pre-recession their payroll in the city. levels. Texas Instruments, a semiconductor firm, has its headquarters in Dallas and is considering a major new Southwest Airlines Co. is headquartered in Dallas and uses 43 investment in a wafer fabrication plant in Richardson. Dallas Love Field airport as its primary hub. In April 2018, after investing $250 million, the airline opened two new buildings at its Dallas campus—one is a pilot training facility 38 and the other provides office and employee training space. Southwest employs 10,400 people in Dallas and contributes to growth in airline transportation employment, which increased by 3,600 jobs between 2012 and 2017. 15 15 TOP 25 BEST-PERFORMING LARGE CITIES

21 RALEIGH, NC # 6 Dropped 4 spots ASSETS 23RD JOB GROWTH (2012-17) Proximity to research triangle spurs innovation and draws in talent and • JOB GROWTH (2016-17) 25TH new tech companies. WAGE GROWTH (2011-16) 13TH • Most new jobs are high-skill and high-wage, increasing activity throughout 11TH WAGE GROWTH (2015-16) the metro’s economy. SHORT-TERM JOB GROWTH (8/2017-8/2018) 29TH 8TH HIGH-TECH GDP GROWTH (2012-17) LIABILITIES HIGH-TECH GDP GROWTH (2016-17) 63RD • Political decisions at the state level regarding the LGBT community are causing some companies to cancel investment plans or select sites HIGH-TECH GDP CONCENTRATION (2017) 9TH outside of North Carolina altogether. 8TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) Raleigh, NC One of the reasons employers creating high-skill, high-wage , stays strong this year, coming in sixth after a shining performance in last year’s index at second place. jobs gravitate toward Raleigh is because of its educated High-tech industries continue to anchor Raleigh’s economy by workforce. Of the metro’s residents aged 25 and older, about contributing to job and wage growth in the metro, as Raleigh 47 percent have a bachelor’s degree or higher, roughly 16 comes in eighth for five-year (2012-17) high-tech GDP growth. percent higher than the average for both the state of North 46 North Carolina State University (NCSU) Overall job and wage growth remain strong in both the five- Carolina and the U.S. continues to produce highly educated workers and be a strong and one-year time periods ending 2017. source of research and development with its Centennial Wage growth is being propelled by an overall tightening of Campus. Not only does this feed the larger well-known high- the labor market, while high-skilled labor demand steadily tech companies in the area, but the innovation and skilled increases. Professional and technical services provide most of workforce from NCSU also draws in tech startups. According the metro’s employment and offer high wages. Many companies, to the City of Raleigh’s economic development department, especially tech companies, have come to take advantage of 47 there are currently 328 tech startups in the area. the regional high-tech cluster (currently anchored by IBM and As the high-tech sector draws employers and subsequently SAS) and relatively low business costs. For example, Infosys high-income in-migrants to Raleigh, demand for services recently chose Raleigh as a new technology and innovation continues to increase. Construction of buildings increased hub and has committed to creating 2,000 high-skill, high-wage 44 However, North Carolina state legislature’s employment by 48 percent in the five years ending in 2017. jobs in the area. “bathroom bill” and overall anti-LGBT political sentiment may Recreation and retail also ramped up in those five years as prove damaging to Raleigh’s business attraction. Deutsche overall wages and subsequent consumer spending in the Bank and Voxpro canceled plans that would have created area increased. 45 hundreds of jobs in the Raleigh area in response to the bill. ORLANDO-KISSIMMEE-SANFORD, FL # Held steady 7 JOB GROWTH (2012-17) 10TH ASSETS • The University of Central Florida produces an educated labor force and R&D. 12TH JOB GROWTH (2016-17) • An increase in high-tech industry activity is bolstering the metro’s WAGE GROWTH (2011-16) 11TH knowledge-based economy. 17TH WAGE GROWTH (2015-16) 6TH SHORT-TERM JOB GROWTH (8/2017-8/2018) LIABILITIES HIGH-TECH GDP GROWTH (2012-17) 51ST • Tourism is a large part of the metro’s economy that will be sensitive to 38TH HIGH-TECH GDP GROWTH (2016-17) future economic downturns. 76TH HIGH-TECH GDP CONCENTRATION (2017) 39TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 49 the energy efficiency of buildings. Orlando-Kissimmee-Sanford, FL, held its No. 7 spot this year Siemens is set to install by continuing to add jobs and increase wages. The booming $1 million worth of technology in UCF’s Smart Infrastructure Data Analytics Lab and give the lab access to Siemens’ Digital economy continues to support the metro’s tourism industry while the metro continues to diversify its industries overall. Grid Lab data. The idea is to create energy efficient smart buildings while also training students to meet the growing Orlando attracts a significant number of in-migrants not only demand for data scientists in the Orlando area. from other parts of Florida, but also from finance and tech 48 As jobs and wages across the U.S. improve, the metro’s tourism hubs such as New York, NY, and Austin, TX. Contributing to industry has been booming. Orlando saw two major attractions in-migration is the professional, scientific, and technical services open their doors in 2017—Disney’s Pandora: The World of Avatar industry, which added 18,400 jobs in the five years ending in and Universal’s Volcano Bay. The Orlando area is home to five 2017. Population growth and wage growth continue to increase of the Top 10 most attended global amusement/theme parks, Orlando’s construction, and specialty trade contractor industries 50 which together had 66,070,000 attendees in 2017. added 24,100 jobs over the five years ending in 2017. Amusement, gambling, and recreation industries account for a large portion The University of Central Florida (UCF) provides educated of the metro’s employment, and added 11,000 jobs in the five labor and a significant amount of research and development. years ending in 2017. In conjunction with recreation related Recently, Siemens teamed up with UCF to create a research industries, the food services and drinking places sector added lab for the development of smart technologies to improve 24,800 jobs in those five years. BEST-PERFORMING CITIES 2018 16

22 SEATTLE-BELLEVUE-EVERETT, WA # Gained 9 spots 8 34TH ASSETS JOB GROWTH (2012-17) • The University of Washington is a high-quality research university drawing 23RD JOB GROWTH (2016-17) in significant R&D funding. WAGE GROWTH (2011-16) 7TH Tech giants continue to propel employment of high-wage, high-skill jobs. • WAGE GROWTH (2015-16) 4TH 12TH SHORT-TERM JOB GROWTH (8/2017-8/2018) LIABILITIES HIGH-TECH GDP GROWTH (2012-17) 81ST • Shortage of residential and commercial real estate makes it difficult for HIGH-TECH GDP GROWTH (2016-17) 76TH new companies to move in and for existing companies to expand. HIGH-TECH GDP CONCENTRATION (2017) 2ND 29TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) Seattle-Bellevue-Everett, WA living continues to increase and there is a shortage of housing, , climbed nine spots to No. 8. The metro’s strong wage growth is what propelled it in this year’s causing tech companies to look elsewhere for expansion. Housing is a major issue for Seattle specifically as vacancy ranking as it came in seventh and fourth in five-year and one- rates and housing inventories are very low relative to state year wage growth, respectively. Per capita income in the metro 53 New construction is increasing, but was $72,574 in comparison to the national per capita income of and national numbers. 51 not keeping pace with demand. Construction of buildings and $50,392 in 2017. specialty trade contractors together added 31,600 jobs in the Much of the wage growth in Seattle-Bellevue-Everett can be metro from 2012 to 2017. attributed to the area’s tech boom. Amazon and Microsoft continue to expand and provide high-paying jobs; however, The University of Washington (UW), Seattle Pacific University, and Seattle University contribute to the educated labor force. Amazon chose to tap into East Coast talent pools for HQ2. Seattle startup trucking app Convoy recently received $185 UW in particular is well known for its research and innovation 52 million in Series C funding from Google’s VC operations. and is widely regarded as one of the best public universities Non-store retailers added 25,700 jobs in the five years ending in the country. The university received $1.62 billion in research in 2017, while the professional, scientific, and technical funding in 2017 and receives the most federal research funding 54 industries added 23,800 jobs. However, the metro’s cost of in the country. FORT COLLINS, CO # Dropped 4 spots 9 19TH ASSETS JOB GROWTH (2012-17) • Colorado State University attracts young talent to feed the high-tech sector. 19TH JOB GROWTH (2016-17) Healthy startup scene spurs innovation. • WAGE GROWTH (2011-16) 15TH 29TH WAGE GROWTH (2015-16) LIABILITIES SHORT-TERM JOB GROWTH (8/2017-8/2018) 22ND Housing is scarce and overvalued, hindering in-migration. • 87TH HIGH-TECH GDP GROWTH (2012-17) 64TH HIGH-TECH GDP GROWTH (2016-17) HIGH-TECH GDP CONCENTRATION (2017) 27TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 15TH Fort Collins, CO , dropped four spots to come in ninth place The high-tech sector in Fort Collins has attracted a fair number of startups. Tech startup incubator Innosphere announced in this year. The metro had a strong performance across most 2017 a plan that included a $3 million expansion of its Fort indicators and came in 19th in both one-year and five-year job 57 Collins location. growth. The metro is growing with steady in-migration and an The investment is part of a larger plan to expanding college population. Fort Collins also benefits from draw 351 new companies to northern Colorado over 10 years 58 its proximity to Denver, CO. and create an innovative tech startup cluster. A growing population contributes to an overall increase in Colorado State University (CSU) is growing rapidly and 55 since 2015 has planned for $244 million in expansions. demand for services. For instance, ambulatory health-care services added 3,290 jobs in the five years ending in 2017. The university attracts young talent that can stay in the area Construction related industries have also been growing to and feed the growing high-tech sector in Fort Collins after keep up with demand as housing has become scarce and graduation. CSU is also the largest employer in the metro with 59 56 overvalued. 7,525 employees. The educational services industry increased Construction of buildings and specialty trade contractors together added 2,930 jobs from 2012 to 2017. Rental employment by 79 percent in the five years ending in 2017 and 60 will likely continue to grow. vacancy rates are also very low relative to the national level. TOP 25 BEST-PERFORMING LARGE CITIES 17

23 SALT LAKE CITY, UT # 10 Held steady JOB GROWTH (2012-17) 36TH ASSETS • The University of Utah contributes to both the talent pool and research for 34TH JOB GROWTH (2016-17) the high-tech sector. WAGE GROWTH (2011-16) 22ND Low business costs and cost of living draw in tech companies. • WAGE GROWTH (2015-16) 23RD SHORT-TERM JOB GROWTH (8/2017-8/2018) 34TH LIABILITIES HIGH-TECH GDP GROWTH (2012-17) 52ND • The tight labor market is not meeting growing demand for high-skilled HIGH-TECH GDP GROWTH (2016-17) 34TH labor. HIGH-TECH GDP CONCENTRATION (2017) 40TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 15TH , comes in 10th for the second year in a row. Salt Lake City, UT is a great local source of talent, but is not enough to meet the The metro scored well in all of our ranking indicators as the needs of the expanding regional economy. Utah lawmakers expansion of its financial service industry and high-tech sector recognize this and continue to increase funds for programs continues to fuel the metro’s growth. Salt Lake City’s tight meant to increase U of U graduates in high-tech fields of study. labor market also puts upward pressure on wages. As more businesses arrive and tourism remains a significant Low business costs and cost of living compared with East part of the metro’s economy, the local airport grows in and West Coast tech and finance hubs continue to encourage importance. A $3.6 billion project is currently underway to companies to expand in Salt Lake City. The metro dubbed replace Salt Lake City International Airport, which, according “Silicon Slopes” is now the home of Adobe, Twitter, and to the airport’s director, is the largest construction project 63 61 Electronic Arts offices. The airport project employed 1,750 However, thousands of jobs are in the state’s history. 62 64 unfilled, impeding expansion. construction workers at the halfway point to its completion. Delta Airlines, which now employs more than 4,400 in its If the metro’s labor market were less tight, the expansion operations at Salt Lake City Airport, is funding much of the would likely be more rapid. The University of Utah (U of U) 65 new airport project. RENO, NV # Gained 26 spots 11 JOB GROWTH (2012-17) 9TH ASSETS • Manufacturing jobs are expected to keep growing and bolster employment 1ST JOB GROWTH (2016-17) and wages. 52ND WAGE GROWTH (2011-16) • Construction jobs are ample as a housing shortage increases demand for WAGE GROWTH (2015-16) 10TH new buildings. 9TH SHORT-TERM JOB GROWTH (8/2017-8/2018) HIGH-TECH GDP GROWTH (2012-17) 31ST LIABILITIES HIGH-TECH GDP GROWTH (2016-17) 19TH • A housing shortage is stifling in-migration while the metro lacks homegrown manufacturing talent. HIGH-TECH GDP CONCENTRATION (2017) 136TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 112TH Reno, NV , climbed 26 spots to 11th in this edition of BPC U.S. stated the factory can only hit its target employment level Job growth from 2016 to 2017 exceeded that of every metro in if the Reno area can offer more infrastructure (e.g., schools, 69 The housing our large cities ranking, giving it the first spot in that category. buildings, roads, affordable housing, etc.). shortage has put upward pressure on rental and home prices, The metro’s manufacturing industry accounts for most of the as construction tries to keep up with demand. Construction of growth in the area, as it drew in new workers who increased buildings and specialty trade contractors together added 7,850 demand for services and housing. jobs in the five years ending in 2017. Though there is debate over whether it is worth such a large Tesla isn’t the only manufacturing company to call the Reno allocation of tax breaks, the arrival of Tesla’s Gigafactory 1 66 area home. More than 20,000 manufacturing jobs existed in in the Reno area has got the region’s economy moving. 70 the Reno-Sparks area as of July of 2018. But the industry is The site employs about 7,000 people and is expected to nearly triple the current number of workers once the site reaches full struggling to fill jobs as young adults choose more traditional 67 71 The factory is dedicated to Tesla battery production, potential. college paths over trade careers. 68 helping to fill backlogged Model 3 orders. Elon Musk has BEST-PERFORMING CITIES 2018 18

24 BOISE CITY, ID # Gained 14 spots 12 13TH ASSETS JOB GROWTH (2012-17) • Low business costs draw in tech startups. 4TH JOB GROWTH (2016-17) • Affordable cost of living facilitates in-migration. 25TH WAGE GROWTH (2011-16) 13TH WAGE GROWTH (2015-16) LIABILITIES SHORT-TERM JOB GROWTH (8/2017-8/2018) 16TH Insufficient skilled labor to meet high-tech labor demand. • 116TH HIGH-TECH GDP GROWTH (2012-17) 51ST HIGH-TECH GDP GROWTH (2016-17) HIGH-TECH GDP CONCENTRATION (2017) 53RD 112TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) , gained 14 spots to come in 12th place in this Boise City, ID houses. The growth of the commercial real estate market 73 edition of BPC U.S. The metro’s performance was anchored by but interest in is being spurred on by outside investors, job growth, coming in fourth for one-year job growth. Wages doing business in the metro is outpacing the availability of workspace. have also enjoyed healthy growth in both the one-year (2015-2016) and five-year (2011-2016) wage growth categories. Professional, scientific, and technical services have been increasing employment; the industry grew 38 percent in the The population of Boise has been steadily increasing as a five years ending in 2017. Though Micron is a major employer tight labor market draws in-migrants. The rising population in the field, Boise’s low business costs have also been drawing has also caused a housing shortage. In Ada County alone, in startups. Tech startups like Black Box VR, Wevorce, and which is part of Boise City’s MSA, the median price of existing 74 72 homes increased by 22 percent in 2017. TSheets have all selected Boise as their home. While Boise New construction has unsuccessfully tried to keep up with housing and commercial State University provides educated labor for Boise’s burgeoning development demand and added 8,060 jobs in construction tech scene, it is not enough to fill demand for skilled labor of buildings and specialty trade contractors from 2012 to and keep the fire burning the high-tech sector. Boise City’s 2017. The overall tight labor market in the metro is hindering educational attainment is relatively low, with only about 32 75 construction firms’ ability to complete a sufficient number of percent of its population holding a bachelor’s degree or higher. CHARLOTTE-CONCORD-GASTONIA, NC-SC # 13 Held steady JOB GROWTH (2012-17) 21ST ASSETS • Low business and living costs make it easier for startup companies to 17TH JOB GROWTH (2016-17) come into the metro. 12TH WAGE GROWTH (2011-16) The existing financial cluster bolsters the new financial technology industry. • WAGE GROWTH (2015-16) 38TH 41ST SHORT-TERM JOB GROWTH (8/2017-8/2018) LIABILITIES HIGH-TECH GDP GROWTH (2012-17) 22ND • The metro’s relatively low educational attainment requires reliance on HIGH-TECH GDP GROWTH (2016-17) 126TH in-migration. HIGH-TECH GDP CONCENTRATION (2017) 85TH State-level political decisions on social issues are causing some • companies to stay away. NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 51ST Charlotte does have the University of North Carolina at , remained in the 13th Charlotte-Concord-Gastonia, NC-SC Charlotte to provide an educated workforce, but the metro spot for another year. The metro has been enjoying consistent is almost a three-hour drive from North Carolina’s research growth in jobs and wages, keeping it high in our large city triangle and only marginally benefits from that cluster’s ranking. The region continues to be propelled by a financial universities and research. Only about 34 percent of the services sector that provides many high-wage jobs. Charlotte-Concord-Gastonia MSA has a bachelor’s degree Low business and living costs continue to usher in expansions 77, 78 or higher compared to 47 percent in Raleigh, NC. of large banking titans, which helps to bring in financial Despite low business costs and a financial cluster, the metro technology (FinTech) activity. For example, Bank of America suffered a hit regarding attracting new FinTech companies announced in 2017 that they would invest $1.5 million in 76 Charlotte, NC to develop a FinTech hub. when the state of North Carolina created a law banning Professional, transgender people from using bathrooms marked for their scientific, and technical services added 20,400 jobs for a 79 identified gender. 40 percent increase in sector employment from 2012 to 2017. The law led FinTech giant PayPal to cancel 80 The increase in population, including a significant number CoStar plans for a new global operations center in Charlotte. of in-migrants, and wages led to an increase in demand for also backed out of negotiations to bring more than 700 jobs 81 many services and housing. to the area. TOP 25 BEST-PERFORMING LARGE CITIES 19

25 OAKLAND-HAYWARD-BERKELEY, CA # Gained 2 spots 14 40TH ASSETS JOB GROWTH (2012-17) • Slightly lower costs of living and of business draw Bay Area expansion to 37TH JOB GROWTH (2016-17) the metro. WAGE GROWTH (2011-16) 20TH Location of UC Berkeley fosters innovation and provides high-skill labor. • WAGE GROWTH (2015-16) 26TH SHORT-TERM JOB GROWTH (8/2017-8/2018) 80TH LIABILITIES HIGH-TECH GDP GROWTH (2012-17) 59TH As wages grow to draw talent, cost of living and housing may rise and • 62ND HIGH-TECH GDP GROWTH (2016-17) remove a current advantage over other Bay Area metros. 17TH HIGH-TECH GDP CONCENTRATION (2017) NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 1ST , crept up two spots to No. 14 software vendor is expanding in the area with a new six-story Oakland-Hayward-Berkeley, CA corporate headquarter building to open in 2019 and is expected in this year’s ranking. One-year (2015-2016) and five-year to accommodate 2,000 employees. (2011-2016) wage growth pulled the metro forward, as well as a significant increase in high-tech activity. Oakland-Hayward- Oakland County alone is expected to add 42,000 jobs in the Berkeley came in first place for high-tech diversity, with 83 next three years, and wages are expected to increase as well. the highest number of high-tech industries with a location Transportation equipment manufacturing employment quotient of one or better in 2017. increased by 281 percent in the five years ending in 2017. Much of this is related to Tesla’s Fremont, CA, operations, The high-tech sector growth in the metro continues as San 84 with more than 10,000 workers at that particular plant. Jose and San Francisco run out of space. Oakland-Hayward- Berkeley benefits from having slightly lower costs of business The University of California, Berkeley (UC Berkeley) is the metro’s and living relative to the previously mentioned cities while 85 UC Berkeley is a largest employer with 23,962 employees. still benefiting from the metro’s proximity to the Bay Area. major source of talent for Oakland-Hayward-Berkeley and the Professional, scientific, and technical services added 9,900 Bay Area as a whole. The university is also ranked among the jobs from 2012 to 2017, while data processing, hosting, and Top 5 research universities in the world and has one of the best related services jobs also grew by 110 percent. Workday Inc. electrical and electronic engineering programs according to has its headquarters in the metro and is a major employer, 86 ShanghaiRanking’s Global Ranking of Academic Subjects 2017. 82 The cloud-based financial with over 3,100 employees. RIVERSIDE-SAN BERNARDINO-ONTARIO, CA # Gained 5 spots 15 JOB GROWTH (2012-17) 3RD ASSETS • The logistics hub is drawing investment from large employers like Amazon. 7TH JOB GROWTH (2016-17) Proximity to large markets like Los Angeles and San Diego aids its major • 19TH WAGE GROWTH (2011-16) industries. 48TH WAGE GROWTH (2015-16) 18TH SHORT-TERM JOB GROWTH (8/2017-8/2018) LIABILITIES 95TH HIGH-TECH GDP GROWTH (2012-17) As more Los Angelinos and San Diegans use the area as a bedroom • HIGH-TECH GDP GROWTH (2016-17) 28TH community, housing prices will increase. HIGH-TECH GDP CONCENTRATION (2017) 131ST Low educational attainment does not allow for much industrial diversity. • NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 112TH Riverside-San Bernardino-Ontario, CA San Bernardino-Ontario MSA’s employment moves full steam , jumped up five spots this year to No. 15. The metro’s employment growth is especially ahead, more people have enough disposable income to spend at restaurants and bars, leading the food services and drinking strong as it comes in third and seventh in one-year (2016-2017) and five-year (2012-2017) job growth. The metro is buoyed places industry to add 28,700 jobs in the five years ending in by its logistics and defense sectors, with some of its major 2017 as well. Overall demand for services has increased in the employers being the U.S. Marine Corps Air Ground Combat metro. Center and the Fort Irwin National Training Center. Though the heavy employment growth has increased total The economy of this metro, known as the Inland Empire, is wages, the jobs added tend not to be high-wage or high- propelled by massive job gains in warehousing and storage, skilled. Educational attainment in the metro is extremely low, to the tune of 34,800 jobs from 2012 to 2017 (a 140 percent with only about 21 percent of its population over the age of increase). Also significant, specialty trade contractors added 25 having a bachelor’s degree or better compared with 31 28,200 jobs for a 68 percent increase over the same period. percent nationally. The University of California, Riverside does Riverside-San Bernardino-Ontario, CA, is known as a logistics produce educated labor, but students tend to look elsewhere hub and drew Amazon to invest $4.7 billion in the area from for employment after graduation. As in-migration and the 87 2012 to 2016, firmly planting the e-commerce sector here. overall population increases, so have housing prices, posing a problem for middle- and low-income workers. The company has 10 facilities in the Inland Empire with over 88 As the Riverside- 20,000 full-time fulfillment employees. BEST-PERFORMING CITIES 2018 20

26 CHARLESTON-NORTH CHARLESTON, SC # Gained 6 spots 16 32ND ASSETS JOB GROWTH (2012-17) • Economic diversity makes it less vulnerable to external shocks. 33RD JOB GROWTH (2016-17) Population and income growth will support the region’s future • 27TH WAGE GROWTH (2011-16) economic growth. WAGE GROWTH (2015-16) 18TH 104TH SHORT-TERM JOB GROWTH (8/2017-8/2018) LIABILITIES HIGH-TECH GDP GROWTH (2012-17) 12TH The U.S.-China trade war may be detrimental to the export-oriented • HIGH-TECH GDP GROWTH (2016-17) 5TH manufacturing sectors. HIGH-TECH GDP CONCENTRATION (2017) 60TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 88TH Charleston-North Charleston, SC , inches up by six spots to From 2011 through 2016, the population growth rate was around 2 percent to 2.5 percent. Although the growth rate stand at No. 16 this year. The region has strong performance in our five- and one-year high-tech GDP growth, ranked No. dropped to 1.8 percent in 2017 and has been declining, its growth rate well surpassed the national average (0.7 percent) 12 and No. 5, respectively. However, short-term job growth 92 The median family income has risen in recent years. in 2017. indicates momentum is slowing. From 2012 to 2017, it jumped from $59,757 to $76,236, an Its coastal location makes the region a tourist destination and 93 Population and income growth drive increase of 27.6 percent. a retiree haven. The retail trade, education and health services, up housing demand and prices. New construction will provide and leisure and hospitality services together made up 36 more temporary jobs for the region. 89 Moreover, percent of the region’s total employment in 2017. the metro’s well-established infrastructure, including railways and the Port of Charleston, makes it a destination for export- oriented industries. For instance, Volvo started the construction 90 In March 2015, Daimler announced of its plant there in 2015. a $500 million expansion plan at the North Charleston plant 91 The region is also known where it assembles its Sprinter vans. for aerospace products and parts manufacturing. Boeing has a 787 Dreamliner final assembly and delivery plant here. ATLANTA-SANDY SPRINGS-ROSWELL, GA # 17 Dropped 3 spots JOB GROWTH (2012-17) 33RD ASSETS • Economic diversity helps maintain its economic health. 39TH JOB GROWTH (2016-17) • High-educated population supplies high-skill employees to the 32ND WAGE GROWTH (2011-16) local workforce. WAGE GROWTH (2015-16) 22ND 70TH SHORT-TERM JOB GROWTH (8/2017-8/2018) LIABILITIES 37TH HIGH-TECH GDP GROWTH (2012-17) Core logistics and transportation sectors may be susceptible to • HIGH-TECH GDP GROWTH (2016-17) 88TH business cycles. HIGH-TECH GDP CONCENTRATION (2017) 30TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 51ST A relatively large proportion of the region’s population is Atlanta-Sandy Springs-Roswell, GA , slips three spots to No. 17. highly-educated; 38 percent of its population has a bachelor’s The job and wage growth of the region have been healthy in or a master’s degree, surpassing the state (31 percent) and recent years. In particular, the metro’s one-year wage growth 96 the U.S. (31 percent) averages. The region is home to Emory ranks 22nd. In addition, it has a budding high-tech sector with University, Georgia Institute of Technology, and Georgia State the high-tech GDP concentration ranked No. 30. University, which provide a skilled talent pool to the local The region has a relatively diverse economy. The share of labor market. Being a transportation hub with a high-quality total employment ranges from 10 to 20 percent in each of workforce, the region has recently become a rising star for the following sectors: retail trade, professional and business the FinTech community. The region also has a favorable services, education and health services, leisure and hospitality ecosystem for entrepreneurs, and the region’s high-tech 94 services, and government. The region is a transportation 97 scene is expanding. and logistics hub within a two-hour flight for 80 percent of the U.S. population. Atlanta’s Hartsfield-Jackson International Airport, home of the Delta Air Lines headquarters, has been recognized as the world’s busiest airport for the last two decades, handling approximately 2,500 flights and 275,000 95 passengers per day. In addition to business travel, the region has tourist destinations such as the CNN Center and the World of Coca-Cola museum. TOP 25 BEST-PERFORMING LARGE CITIES 21

27 SANTA ROSA, CA # 18 Gained 25 spots JOB GROWTH (2012-17) 17TH ASSETS • World-class beverage industry helps to support local economy. 46TH JOB GROWTH (2016-17) • The rise of organic and artisanal food industry adds new fuel to the WAGE GROWTH (2011-16) 38TH local economy. WAGE GROWTH (2015-16) 68TH 40TH SHORT-TERM JOB GROWTH (8/2017-8/2018) LIABILITIES HIGH-TECH GDP GROWTH (2012-17) 55TH Declining housing affordability may limit growth. • 56TH HIGH-TECH GDP GROWTH (2016-17) 59TH HIGH-TECH GDP CONCENTRATION (2017) NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 22ND , jumps 25 spots to secure No. 18 this year. Santa Rosa, CA and the ongoing rebuilding efforts will propel construction activities in the metro. The region had strong job growth from 2012 to 2017, placing it at No. 17 among its counterparts. It performs well in five-year Its proximity to San Francisco and the local constraint on job growth and the number of high-tech industries with strong housing supply heated up housing prices in the region. location quotients. Although the issuance of total residential housing permits The region is known for its beverage manufacturing thanks to grew by 48 percent and 28 percent in 2016 and 2017 101 the housing supply remains limited, reducing respectively, the concentration of breweries, wineries, and vineyards in the housing affordability in the region. This may limit the further region. With the growing health consciousness of consumers, growth of the metro’s economy. the metro’s organic food production sector has been 98 Its world-class beverage industry and the scenic developing. views in the region have been magnets for tourists. In addition to wine-making and tourism, the professional and business services and government sectors provided one quarter of total 99 Despite its strength in agriculture and employment in 2017. tourism, the Tubbs Fire occurring in October 2017 may impact the two industrial pillars of the region. The fire destroyed 5,636 10 0 homes and buildings in the Santa Rosa-Calistoga region. OLYMPIA-TUMWATER, WA # Gained 20 spots 19 JOB GROWTH (2012-17) 29TH ASSETS • The government sector serves as a stable employment source for the 9TH JOB GROWTH (2016-17) region. 37TH WAGE GROWTH (2011-16) Recent population growth helps support its education and health services, • WAGE GROWTH (2015-16) 9TH retail trade, and construction sectors. 45TH SHORT-TERM JOB GROWTH (8/2017-8/2018) HIGH-TECH GDP GROWTH (2012-17) 6TH LIABILITIES HIGH-TECH GDP GROWTH (2016-17) 9TH Overreliance on government jobs casts risk on the region’s • economic health. HIGH-TECH GDP CONCENTRATION (2017) 147TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 191ST 104 total population in 2016. Olympia-Tumwater, WA , was the second biggest gainer in our These institutions and educated 2017 ranking. This year, it leaps 20 spots to stand at No. 19. population provide the region with a skilled workforce. The Its strong performance in one-year job and wage growth and region’s low cost of living compared with Seattle and Tacoma also plays a role in drawing in new residents. In 2016, about the five- and one-year high-tech GDP growth measures all one-fourth of all in-migrants to the metro moved from Seattle contribute to its improvement in rank. 105 and Tacoma. This demographic trend has driven up housing As the state capital, the government sector provided about prices in the region and increased new housing construction. one-third of total employment in 2017 for the region. The construction and real estate sectors will ramp up in the Education and health services and retail trade accounted for next few years. Despite this, the region has relatively low 102 In 2016 and 2017, one-fourth of total employment in 2017. industrial diversity and thus may be more vulnerable to future the metro had population growth rates of 2.2 percent and 2.4 economic shocks. Diversifying its economy would benefit the 103 percent, respectively. The population gains helped support region’s long-run economic development. the growth of the two aforementioned sectors—education and health services and retail trade. There are three small-scale, higher-education institutions in the region—Evergreen State College, San Martin’s University, and South Puget Sound Community College. Residents with a college or a graduate degree accounted for 35 percent of the BEST-PERFORMING CITIES 2018 22

28 PHOENIX-MESA-SCOTTSDALE, AZ # 20 Gained 20 spots JOB GROWTH (2012-17) 35TH ASSETS • Diversified industries help to strengthen the region’s economy. 21ST JOB GROWTH (2016-17) • A favorable business environment attracts companies to set up WAGE GROWTH (2011-16) 55th their offices. WAGE GROWTH (2015-16) 54TH SHORT-TERM JOB GROWTH (8/2017-8/2018) 14TH LIABILITIES HIGH-TECH GDP GROWTH (2012-17) 102ND Despite some high-tech sector presence, the industry is still relatively • 72ND HIGH-TECH GDP GROWTH (2016-17) small compared with many burgeoning tech hubs. 54TH HIGH-TECH GDP CONCENTRATION (2017) NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 51ST , jumps 20 spots to 20th place The region has long attracted retirees and has experienced Phoenix-Mesa-Scottsdale, AZ high population growth recently. This demographic profile this year. Its improvement can be largely attributed to recent job growth. The region stands at No. 21 and No. 14 in our one- serves as a strong support for the retail, health-care, and hospitality industries. These three sectors accounted for year and short-term job growth measures, respectively. 109 roughly 38 percent of the region’s total employment in 2017. Favorable business conditions in the region attract many Arizona State University is another major employer. It recently back-office finance and business services. Major players such announced its partnership with the city to expand its campus as Bank of America, JP Morgan Chase, and Wells Fargo have a in downtown Phoenix. This expansion is expected to bring large local presence. In fall 2017, the Bank of the West unveiled more than 300 students and more than 100 staff and faculty its second-largest U.S. office in the Phoenix-Mesa-Scottsdale 110 The growing talent pool members to the urban campus. region and expected to hire about 1,000 employees by the and these diversified industries will contribute to the region’s 106 The region also has some high-tech sector end of 2018. long-term economic health. companies, such as Intel. In February 2017, the semiconductor manufacturing giant announced it will invest $7 billion in its 107 Chandler, Arizona factory and add more than 10,000 jobs. On August 2018, Cognizant, a tech-service company, added a new facility that will create about 500 jobs for highly skilled 108 technology and business professionals in Mesa. OGDEN-CLEARFIELD, UT # 21 Gained 7 spots ASSETS JOB GROWTH (2012-17) 26TH Low business costs attract manufacturers to the region. • 16TH JOB GROWTH (2016-17) • A growing high-tech GDP provides the region with a stronger WAGE GROWTH (2011-16) 43RD economic base. WAGE GROWTH (2015-16) 25TH SHORT-TERM JOB GROWTH (8/2017-8/2018) 89TH LIABILITIES 64TH HIGH-TECH GDP GROWTH (2012-17) • The concentration of jobs in the government/national defense sector may HIGH-TECH GDP GROWTH (2016-17) 4TH be susceptible to future federal spending changes. 90TH HIGH-TECH GDP CONCENTRATION (2017) 88TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) , claims 21st place, moving up seven professional and business services, and education and health Ogden-Clearfield, UT spots from last year. Its performance in our one- and five- services accounted for one-third of total employment in the 11 4 year job growth measures indicates its labor market is on region in 2017. firm footing. What makes the region shine is its strong The region has recently been identified as one of the fastest performance in one-year high-tech GDP growth. growing places in the U.S. Many companies view low business costs as one of the key factors attracting them to the Thanks to the Hill Air Force Base, the metro’s economy is metro. In Wallet Hub’s 2018’s Best & Worst Small Cities to Start deeply rooted in the defense sector. In 2017, the base had a Business report, Clearfield and Ogden ranked as the 6th and a total employment of 25,500 personnel and generated an 11 5 111 The huge military 7th best cities for starting a business, respectively. annual federal payroll of $1.38 billion. Despite all these upsides, the recent U.S. – China trade war may presence makes the government the largest employer in impact the transportation equipment manufacturing industry the region, accounting for 20.5 percent of total employment 11 2 in 2017. in the region, but the long-term effects remain to be seen. Transportation equipment manufacturing also contributes significantly to the region’s economy. In early 2018, aerospace manufacturer Parker Hannifin announced it will relocate its facility from California to the metro, a move 11 3 expected to add 77 jobs in the next six years. In addition to the government and manufacturing sectors, retail trade, TOP 25 BEST-PERFORMING LARGE CITIES 23

29 NORTH PORT-SARASOTA-BRADENTON, FL # Dropped 16 spots 22 5TH ASSETS JOB GROWTH (2012-17) • Nice weather and scenic views make the region attractive to tourists 36TH JOB GROWTH (2016-17) and retirees. 17TH WAGE GROWTH (2011-16) Continuing population growth will support construction activities. • WAGE GROWTH (2015-16) 34TH SHORT-TERM JOB GROWTH (8/2017-8/2018) 82ND LIABILITIES 32ND HIGH-TECH GDP GROWTH (2012-17) A heavy reliance on highly-cyclical industries like tourism puts the • 78TH HIGH-TECH GDP GROWTH (2016-17) metro’s economic health at risk. 126TH HIGH-TECH GDP CONCENTRATION (2017) NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 88TH North Port-Sarasota-Bradenton, FL , falls 16 spots to 22nd in Its natural surroundings and amenities have attracted many this year’s index. A key factor leading to its overall ranking senior residents to the metro. According to the latest statistics, the region’s median age was 52, making it No. 2 among all backslide is a short-term job growth drop from first place last 11 8 The concentration of older adults supports U.S. metros. year to 82nd place this year. Despite the decline in its overall a robust health-care sector. Hospitals and medical centers ranking, the metro maintains strong momentum in our five- anchored by the Sarasota Memorial Health Care System are year job and wage growth measures. among the top employers in the region. Due to its nice weather and scenic views, the region is widely Advanced manufacturing activities provide some high-tech jobs known as a tourist destination and a retiree haven. The leisure with high pay to North Port-Sarasota-Bradenton. PGT Custom and hospitality services and the education and health services Windows + Doors is one of the largest manufacturing companies in sectors accounted for approximately one-third of the region’s 119 the region, employing approximately 2,000 workers. According total employment in 2017, surpassing the national average 11 6 to the Institute for Spatial Economic Analysis (ISEA), automation The inflow of tourists and retirees has also of 27 percent. fueled construction activities. In October 2017, the Atlanta may hit low-wage metros hard in years to come, including 120 The growing advanced North Port-Sarasota-Bradenton, FL. Braves broke ground on a new spring training facility in manufacturing sector and the continuing diversification of Sarasota County; this new site is set to open in spring of 11 7 industry presence may be vital to the region’s economic future. 2019, bringing new jobs and tourists to the metro. LAS VEGAS-HENDERSON-PARADISE, NV # 23 Gained 18 spots JOB GROWTH (2012-17) 18TH ASSETS • World-renowned tourist-related sectors drive the region’s growth. JOB GROWTH (2016-17) 18TH Zero personal income taxes and low business costs help lure people and • 45TH WAGE GROWTH (2011-16) businesses to the metro. WAGE GROWTH (2015-16) 19TH 20TH SHORT-TERM JOB GROWTH (8/2017-8/2018) LIABILITIES 33RD HIGH-TECH GDP GROWTH (2012-17) • The region’s economy is still concentrated in the tourism/gaming industry, HIGH-TECH GDP GROWTH (2016-17) 108TH which is sensitive to economic downturns. HIGH-TECH GDP CONCENTRATION (2017) 163RD NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 136TH Las Vegas-Henderson-Paradise, NV, has no personal income Las Vegas-Henderson-Paradise, NV , has appeared several times as one of the biggest gainers in our recent rankings. tax and relatively low housing prices, which has attracted Its momentum pushes the metro up 18 spots to 23rd place this many people to the region in recent years. From 2010 to 2017, 124 year. In addition to experiencing strong job gains over all three migration has brought 166,153 new residents to the region. periods evaluated, the region has solid performance in our The population growth will keep the construction sector busy one-year wage growth measure. in the short-run. Despite its recent strong performance in tourist- and construction-related industries, these two sectors The metro has long been known for its tourist-related industry are more vulnerable to economic downturns. In addition, and most local employers are concentrated in this sector. only about one-fourth of the region’s population has a college The industry in the region has recently benefited from a healthy or graduate degree, lower than the national average of 31 national economy. In 2017, McCarran International Airport set a 125 percent. The region needs to further diversify its industries record high by serving 48.5 million passengers, surpassing the and cultivate its talent pool in order to build a healthier economy. 121 previous peak of 47.7 million visitors in 2007. In addition to its hospitality sector, the region’s low-cost business environment has lured logistics companies to its territory. For instance, in spring 2018, tech giant Amazon revealed plans to establish a fulfillment center in North Las Vegas that will add 1,000 jobs 122 to the local job market. On July 2018, beauty retailer Sephora announced a plan to build a distribution center in North Las 123 Vegas; this initiative is expected to create 400 jobs. BEST-PERFORMING CITIES 2018 24

30 DENVER-AURORA-LAKEWOOD, CO # Dropped 1 spot 24 25TH ASSETS JOB GROWTH (2012-17) • High-quality talent has attracted many companies to the metro. 59TH JOB GROWTH (2016-17) • A thriving tech sector serves as a strong pillar of the regional economy. 24TH WAGE GROWTH (2011-16) 84TH WAGE GROWTH (2015-16) LIABILITIES SHORT-TERM JOB GROWTH (8/2017-8/2018) 36TH Population growth is driving up housing prices. • 99TH HIGH-TECH GDP GROWTH (2012-17) 75TH HIGH-TECH GDP GROWTH (2016-17) HIGH-TECH GDP CONCENTRATION (2017) 36TH 22ND NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 127 , is down one spot from last year Denver-Aurora-Lakewood, CO In March 2018, social to 500 employees by the end of 2019. to 24th place. Jobs and wages in the metro have been growing network company Facebook confirmed its expansion plan 128 After receiving $10.6 million in tax in recent years. This fact, coupled with population growth, in downtown Denver. incentive credits from the state of Colorado, Slack, a Canadian has driven up housing costs in the region. Nonetheless, a communication platform company, will open an office in slowdown in one-year job and wage growth and short-term job Denver at the end of 2018; this move is expected to add 550 growth measures suggests momentum recently waned a bit. 129 high-paying, full-time jobs to the metro. Despite decelerating job growth, there is a flourishing tech One key feature attracting tech companies to the region is the sector in this region. It ranks No. 22 in our indicator of the talent pool. The University of Colorado, University of Denver, number of high-tech industries with a location quotient greater and the Metropolitan State University of Denver together than one. Several tech companies have recently announced provide the metro with a high-quality workforce. In addition expansion plans in the metro. In May 2017, Vertaforce, an to the pool of skilled potential employees, the entrepreneurial insurance tech company based in the state of Washington, ecosystem has also spawned many new startups. Denver is announced plans to move its headquarters to Denver and 126 among the Top 5 U.S. cities for young entrepreneurs according expects to hire at least 300 employees over four years. 130 to Forbes, Inc. Magazine, and NerdWallet. The California-based marketing tech company Marketo also plans to grow its Denver office from one employee in 2017 NASHVILLE-DAVIDSON-MURFREESBORO-FRANKLIN, TN # 25 Dropped 17 spots JOB GROWTH (2012-17) 12TH ASSETS • Low business costs give the metro a competitive edge over other JOB GROWTH (2016-17) 11TH larger metros. WAGE GROWTH (2011-16) 9TH 46TH WAGE GROWTH (2015-16) LIABILITIES SHORT-TERM JOB GROWTH (8/2017-8/2018) 120TH Population growth brings declining housing affordability and traffic • HIGH-TECH GDP GROWTH (2012-17) 20TH congestion that may dampen the region’s economic development. HIGH-TECH GDP GROWTH (2016-17) 70TH HIGH-TECH GDP CONCENTRATION (2017) 132ND NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 73RD Technologies at Vanderbilt University has further fueled the Nashville-Davidson-Murfreesboro-Franklin, TN , rounds off our Top 25 large-cities list after slipping from No. 8 last year. development of health tech in the region. Vanderbilt University The metro has experienced strong job growth in recent years. and Vanderbilt University Medical Center together serve as the largest employer in the Nashville region, with approximately Its 2.89 percent unemployment rate was the lowest since 1999 131 134 (2.8 percent). 26,500 faculty and staff. The region has grown a vibrant economy largely based on professional and business services. From According to data from the U.S. Census, the metro has logged 2011 to mid-2017, job growth in this sector was 42.6 percent, 1.8 percent population growth from 2016 to 2017, which was 132 which stood above all other U.S. metros. The tight job faster than the rest of Tennessee’s metros. Its population of market has also driven up wages, making it No. 9 in our 1.9 million in 2017 comprised almost one-third of the state’s five-year wage growth measure. 135 With this fast-growing population comes total population. declining housing affordability and traffic congestion that may The health technology sector in the region has been growing dampen economic development. Despite this, the region’s low in recent years, as evidenced by its No. 20 rank in our five-year taxes and pro-business regulatory environment will support the high-tech GDP growth. In August 2017, Philips announced plans metro’s future economic growth. to expand its presence in the region by adding 800 high-paying 133 jobs related to health technology by the end of 2019. In addition to Philips, The Laboratories for Innovations in Global Health TOP 25 BEST-PERFORMING LARGE CITIES 25

31 COMPLETE RESULTS: 2018 BEST-PERFORMING LARGE CITIES RANKINGS BY COMPONENT Rank Change Job Grow th Metropolitan Statistical Area/Metropolitan Division (2012-17) Wage Growth Job Grow th (2 015 -16) Wage Growth 2017 Rank (2 011-16) 12-month Job Grow th (8/2017-8/2018) High Tech GDP Grow th (2 016 -17) High Tech GDP Grow th (2012-17) High Tech GDP Concentration Number of Industries with LQ >1 (2017) (2 016 -17) 2018 Rank 1 1 3 1 2 3 5 80 3 13 22 0 Provo-Orem, UT 11 11 30 16 6 2 San Jose-Sunnyvale-Santa Clara, CA 14 4 1 2 9 2 9 3 Austin-Round Rock, TX 13 4 12 6 24 40 14 11 29 5 0 4 San Francisco-Redwood City-South San Francisco, CA 40 11 1 1 59 11 1 5 15 4 15 3 20 14 37 14 Dallas-Plano-Irving, TX 27 13 24 8 -2 5 2 6 Raleigh, NC 25 23 11 -4 29 63 8 9 8 13 0 7 Orlando-Kissimmee-Sanford, FL 12 10 17 7 6 38 51 76 39 11 9 17 8 Seattle-Bellevue-Everett, WA 23 34 4 7 12 76 81 2 29 -4 5 Fort Collins, CO 19 19 29 15 22 64 87 27 15 9 34 10 34 36 23 22 Salt Lake Cit y, UT 34 52 40 15 0 10 37 11 Reno, NV 1 9 10 26 9 19 31 136 112 52 14 12 Boise City, ID 4 13 13 26 16 51 116 53 112 25 0 13 13 Charlotte-Concord-Gastonia, NC-SC 17 21 38 12 41 126 22 85 51 2 16 Oakland-Hayward-Berkeley, CA 37 40 26 20 80 62 59 17 1 14 19 5 Riverside-San Bernardino-Ontario, CA 7 3 48 15 18 28 95 131 112 20 6 22 16 Charleston-North Charleston, SC 33 32 18 27 104 5 12 60 88 32 -3 17 Atlanta-Sandy Springs-Roswell, GA 39 33 22 14 70 88 37 30 51 46 25 43 18 Santa Rosa, CA 55 17 68 38 40 56 59 22 20 39 Olympia-Tumwater, WA 9 29 9 37 45 9 6 147 191 19 40 20 21 35 54 55 14 72 102 54 51 20 Phoenix-Mesa-Scottsdale, A Z 21 89 16 26 25 43 28 4 64 90 88 7 Ogden-Clear field, UT 82 6 36 5 34 17 North Port-Sarasota-Bradenton, FL 78 32 126 88 -16 22 41 23 Las Vegas-Henderson-Paradise, NV 18 18 19 45 20 108 33 163 136 18 -1 23 Denver-Aurora-Lakewood, CO 59 25 84 24 36 75 99 36 22 24 120 8 11 12 46 9 Nashville-Davidson-Murfreesboro-Franklin, TN 70 20 132 73 -17 25 50 26 Jacksonville, FL 14 31 50 24 21 50 65 106 112 68 -2 27 Fayetteville-Springdale-Rogers, AR-MO 15 8 16 25 58 66 75 183 176 8 8 36 28 Spartanburg, SC 5 30 24 33 102 2 5 181 136 -2 27 Grand Rapids-Wyoming, MI 55 50 36 16 61 29 30 129 24 112 65 30 49 38 15 39 Tampa-St. Petersburg-Clearwater, FL 128 69 72 29 -15 33 34 31 San Luis Obispo-Paso Robles-Arroyo Grande, CA 31 3 113 48 54 41 28 89 51 27 -13 32 San Antonio-New Braunfels, T X 38 28 53 19 125 17 56 82 51 31 -9 24 33 Portland-Vancouver-Hillsboro, OR-WA 29 39 41 21 66 139 194 7 39 34 68 Stockton-Lodi, CA 6 15 28 26 28 121 73 187 191 34 46 11 Deltona-Daytona Beach-Ormond Beach, FL 64 42 14 35 33 144 91 116 39 46 -5 31 36 Santa Cruz-Watsonville, CA 79 56 39 60 51 82 35 55 51 42 29 37 Fresno, CA 26 22 66 44 25 93 98 175 112 198 191 56 94 38 Merced, CA 10 55 27 23 4 32 150 BEST-PERFORMING CITIES 2018 26

32 RANKINGS BY COMPONENT Rank Change (2 016 -17) Job Grow th 2018 Rank (2012-17) Wage Growth Metropolitan Statistical Area/Metropolitan Division (2 015 -16) Wage Growth Job Grow th (2 011-16) 12-month Job Grow th (8/2017-8/2018) High Tech GDP Grow th (2 016 -17) High Tech GDP Grow th (2012-17) High Tech GDP Concentration Number of Industries with LQ >1 (2017) 2017 Rank 21 39 56 47 56 36 122 37 39 79 39 -18 Fort Lauderdale-Pompano Beach-Deerfield Beach, FL 60 72 88 37 7 28 Salem, OR 59 138 121 88 32 40 29 41 Rockingham County-Strafford County, NH 66 88 88 53 77 46 16 45 8 -12 73 6 Greeley, CO 2 6 195 31 2 16 101 186 136 42 26 75 108 65 5 64 Ocala, FL 58 57 128 88 32 43 57 44 Crestview-Fort Walton Beach-Destin, FL 32 58 52 13 3 125 126 81 112 73 6 45 San Diego-Carlsbad, CA 54 57 110 51 97 35 50 14 2 76 -16 30 46 Cape Coral-Fort Myers, FL 58 2 8 4 139 122 36 177 136 23 70 Lakeland-Winter Haven, FL 45 44 31 65 46 52 24 190 176 47 96 44 80 77 71 35 Boston, MA 43 40 66 51 -4 48 12 =49 West Palm Beach-Boca Raton-Delray Beach, FL 60 20 67 -37 171 31 15 96 112 18 15 =49 Vallejo-Fair field, CA 82 52 20 64 160 49 27 26 136 30 -2 49 =51 Greenville-Anderson-Mauldin, SC 100 60 83 62 85 13 23 74 39 48 99 Myrtle Beach-Conway-North Myrtle Beach, SC-NC 8 41 30 54 32 96 120 192 191 =51 29 -20 Modesto, CA 76 53 45 53 62 20 25 179 176 33 0 54 54 Visalia-Porterville, CA 24 59 3 34 47 130 94 195 191 77 -20 55 Wilmington, NC 53 48 15 35 152 165 11 37 51 54 -9 47 56 Anaheim-Santa Ana-Irvine, CA 50 23 117 49 151 29 60 2 6 63 Palm Bay-Melbourne-Titusville, FL 35 84 61 163 90 23 48 10 13 57 90 58 22 45 101 134 7 116 181 29 29 32 Colorado Springs, CO 59 17 51 92 99 151 86 22 114 8 15 27 Huntsville, AL 74 65 71 62 40 61 Asheville, NC 194 46 122 39 5 60 80 61 Waco, T X 74 80 35 78 102 8 38 61 176 19 -20 42 Boulder, CO 57 61 124 57 116 47 149 3 7 62 56 79 104 81 58 74 Indianapolis-Carmel-Anderson, IN 86 144 28 51 16 63 55 64 Sacramento-Roseville-Arden-Arcade, CA 48 43 66 -9 92 186 142 75 51 56 12 65 Chattanooga, TN-GA 47 105 100 77 23 7 26 161 136 99 35 101 66 Tren t on, N J 107 82 87 123 8 109 84 25 51 11 78 Eugene, OR 84 67 55 63 19 67 183 91 152 88 55 68 61 66 88 93 McAllen-Edinburg-Mission, TX 6 2 193 136 20 107 56 69 Des Moines-West Des Moines, IA 93 -13 69 47 27 83 67 165 176 70 -10 70 Fort Worth-Arlington, T X 43 76 157 60 53 3 93 57 136 80 -39 32 71 Port St. Lucie, FL 62 24 32 58 164 65 105 148 112 -14 58 Madison, WI 142 96 49 40 121 113 17 34 51 72 96 27 Manchester-Nashua, NH 92 113 76 73 91 53 82 18 22 100 -15 59 74 Miami-Miami Beach-Kendall, FL 99 51 78 50 71 60 42 149 176 64 22 75 Tacoma-Lakewood, WA 44 49 97 95 31 150 115 141 176 73 63 -7 69 76 Kalamazoo-Portage, MI 133 98 44 67 119 21 70 COMPLETE RESULTS: 2018 BEST-PERFORMING LARGE CITIES 27

33 RANKINGS BY COMPONENT Rank Change (2 016 -17) Job Grow th 2018 Rank (2012-17) Wage Growth Metropolitan Statistical Area/Metropolitan Division (2 015 -16) Wage Growth Job Grow th (2 011-16) 12-month Job Grow th (8/2017-8/2018) High Tech GDP Grow th (2 016 -17) High Tech GDP Grow th (2012-17) High Tech GDP Concentration Number of Industries with LQ >1 (2017) 2017 Rank 106 77 78 73 112 104 39 180 133 4 22 29 Durham-Chapel Hill, NC 78 79 83 99 133 91 71 81 109 6 2 -7 Cambridge-Newton-Framingham, MA 93 67 81 97 108 79 Minneapolis-St. Paul-Bloomington, MN-WI 127 71 49 22 -12 79 107 80 Pensacola-Ferry Pass-Brent, FL 27 63 63 119 49 131 169 146 112 27 -20 61 Los Angeles-Long Beach-Glendale, CA 115 86 72 72 113 154 106 20 8 81 42 117 126 109 59 148 Tallahassee, FL 15 44 99 88 35 82 83 83 Springfield, MO 106 103 104 0 109 18 10 93 112 70 -46 84 Warren-Troy-Farmington Hills, MI 75 68 77 38 176 77 68 65 112 59 36 121 85 Kennewick-Richland, WA 41 71 47 170 30 173 182 64 112 5 91 Lubbock, T X 77 79 89 42 38 187 159 124 136 86 159 52 67 101 82 85 Ann Arbor, MI 145 54 43 29 -35 87 105 88 Salinas, CA 69 83 62 75 10 167 148 188 191 17 49 138 Lansing-East Lansing, MI 73 106 43 116 117 25 77 15 3 136 89 120 13 Hickory-Lenoir-Morganton, NC 70 122 86 90 81 193 9 108 39 103 -38 53 91 Louisville-Jefferson County, KY-IN 120 75 60 41 180 36 61 152 112 23 115 Worcester, MA-CT 127 107 111 127 69 95 90 38 8 92 10 -75 Naples-Immokalee-Marco Island, FL 139 7 21 93 200 141 85 160 176 18 -12 82 94 New York-Jersey Cit y-White Plains, NY-NJ 68 74 142 100 129 143 41 68 39 125 7 95 Augusta-Richmond County, GA-SC 94 100 92 102 52 135 58 110 112 78 -22 74 96 Gainesville, FL 52 151 57 94 137 171 108 88 -21 76 Kansas Cit y, MO-KS 86 95 120 89 95 114 152 69 51 97 93 98 97 93 74 90 134 90 43 123 136 -5 Lancaster, PA 133 99 64 96 51 149 63 172 112 112 62 Columbus, OH -37 100 Washington-Arlington-Alexandria, DC-VA-MD-W V 72 118 97 15 3 18 117 143 31 73 118 78 119 Allentown-Bethlehem-Easton, PA-NJ 112 120 94 103 101 106 34 47 88 18 138 154 102 Tucson, A Z 91 152 139 52 63 42 103 41 15 174 9 103 Spokane-Spokane Valley, WA 95 94 73 86 156 100 135 115 88 112 144 45 119 111 170 92 Santa Maria-Santa Barbara, CA 99 53 19 6 -59 104 130 105 Portland-South Portland, ME 96 134 65 25 143 106 92 111 73 88 150 135 Camden, NJ 42 29 109 106 88 174 112 88 73 114 -9 98 107 Philadelphia, PA 87 128 138 124 107 45 47 58 136 -60 48 Savannah, GA 89 46 132 82 195 102 79 56 136 108 98 125 136 133 102 117 Baltimore-Columbia-Towson, MD 97 122 52 39 16 109 81 110 Oxnard-Thousand Oaks-Ventura, CA 111 117 174 147 100 74 92 12 13 -29 -17 94 Columbia, SC 165 69 85 66 101 149 83 158 136 111 71 -28 Lexington-Fayette, KY 110 72 80 112 148 175 186 103 73 84 -17 96 113 El Paso, T X 118 102 126 136 76 26 136 134 88 6 120 Salisbury, MD-DE 85 89 51 87 199 84 162 133 112 114 111 17 Springfield, MA 98 129 137 115 64 39 145 143 112 132 0 116 116 Montgomery County-Bucks County-Chester County, PA 90 131 134 121 170 91 113 16 22 81 33 117 York-Hanover, PA 143 158 150 162 111 33 62 80 51 51 109 10 128 118 Fort Wayne, IN 114 126 135 143 48 68 189 BEST-PERFORMING CITIES 2018 28

34 RANKINGS BY COMPONENT Rank Change (2 016 -17) Job Grow th 2018 Rank (2012-17) Wage Growth Metropolitan Statistical Area/Metropolitan Division (2 015 -16) Wage Growth Job Grow th (2 011-16) 12-month Job Grow th (8/2017-8/2018) High Tech GDP Grow th (2 016 -17) High Tech GDP Grow th (2012-17) High Tech GDP Concentration Number of Industries with LQ >1 (2017) 2017 Rank 113 119 140 85 197 69 13 163 124 119 136 -6 Houston-The Woodlands-Sugar Land, TX 120 44 125 163 123 176 129 129 111 22 29 9 Silver Spring-Frederick-Rockville, MD 112 92 103 141 91 114 Detroit-Dearborn-Livonia, MI 146 76 104 136 -29 121 127 122 Knoxville, TN 141 116 75 107 166 61 132 98 88 5 54 177 Norwich-New London, CT 28 179 121 188 50 157 190 46 88 123 123 147 109 147 118 98 Elgin, IL 107 140 105 73 23 124 160 125 Albuquerque, NM 149 151 90 35 72 101 176 32 51 169 -41 126 Lincoln, NE 175 144 95 85 106 79 154 86 112 84 10 137 127 Montgomery, AL 138 154 79 178 183 1 18 73 88 -41 87 Richmond, VA 116 91 114 108 142 104 15 3 139 112 128 187 111 131 136 145 112 Albany-Schenectady-Troy, NY 134 21 35 39 -18 129 126 130 St. Louis, MO-IL 135 132 141 137 141 57 118 67 39 -4 -27 104 Cincinnati, OH-KY-IN 113 104 103 97 147 166 131 97 136 131 101 -23 Chicago-Naperville-Arlington Heights, IL 151 110 128 132 157 132 86 95 73 109 18 151 133 Nassau County-Suffolk County, NY 130 138 93 130 133 159 147 62 73 -26 108 Omaha-Council Bluffs, NE-IA 163 137 119 81 86 105 141 138 136 134 88 -46 Lake County-Kenosha County, IL-WI 65 119 190 135 190 15 3 161 21 73 89 -22 114 136 Laredo, T X 101 87 164 110 178 71 7 200 191 113 -4 137 Providence-Warwick, RI-MA 134 125 144 133 136 164 134 102 51 146 19 157 138 Tulsa, OK 156 140 196 157 35 67 80 88 1 140 Reading, PA 161 155 127 129 108 55 137 117 88 139 134 140 154 124 70 135 196 54 173 100 73 -6 South Bend-Mishawaka, IN-MI 172 141 139 98 102 73 145 130 172 176 152 Urban Honolulu, HI 11 142 Day ton, OH 132 148 125 158 7 148 160 70 29 149 118 170 Buffalo-Cheektowaga-Niagara Falls, NY 150 169 122 144 143 103 96 94 88 27 110 152 144 Syracuse, NY 176 177 140 8 126 89 49 50 29 165 3 =145 Memphis, TN-MS-AR 15 3 130 106 149 67 147 139 164 136 148 115 110 169 108 162 83 Baton Rouge, L A 185 45 156 136 -35 =145 131 147 Oklahoma Cit y, OK 147 127 192 -16 37 133 120 173 176 72 152 184 Scranton-Wilkes-Barre-Hazleton, PA 128 36 146 148 84 69 191 114 88 168 9 158 149 Cedar Rapids, IA 181 178 156 138 146 73 97 51 29 -7 143 Pittsburgh, PA 129 184 181 154 163 48 89 48 51 150 15 3 124 123 143 166 139 Harrisburg-Carlisle, PA 112 151 84 73 -27 151 162 =152 Newark, NJ-PA 121 162 149 131 174 168 156 44 29 10 4 156 Green Bay, WI 117 135 130 118 173 111 100 178 136 =152 156 -15 Flint, MI 160 170 152 154 188 30 19 83 88 139 10 165 155 Lit tle Rock-North Lit tle Rock-Conway, AR 122 156 129 168 145 158 177 87 51 -14 142 Greensboro-High Point, NC 171 150 165 142 124 192 104 78 39 156 146 7 Milwaukee-Waukesha-West Allis, WI 170 145 136 157 154 118 117 107 73 164 -22 136 158 Rochester, NY 173 174 168 159 140 176 63 39 15 158 -36 159 Killeen-Temple, TX 105 90 123 190 68 142 200 174 191 73 145 -39 121 160 Winston-Salem, NC 158 121 163 122 165 182 74 COMPLETE RESULTS: 2018 BEST-PERFORMING LARGE CITIES 29

35 RANKINGS BY COMPONENT Rank Change (2 016 -17) Job Grow th 2018 Rank (2012-17) Wage Growth Metropolitan Statistical Area/Metropolitan Division (2 015 -16) Wage Growth Job Grow th (2 011-16) 12-month Job Grow th (8/2017-8/2018) High Tech GDP Grow th (2 016 -17) High Tech GDP Grow th (2012-17) High Tech GDP Concentration Number of Industries with LQ >1 (2017) 2017 Rank 166 161 178 123 182 167 75 87 192 125 88 5 Wilmington, DE-MD-NJ 162 43 144 157 183 105 161 195 198 176 136 -1 Bakersfield, CA 94 163 179 15 3 143 132 Akron, OH 169 125 142 136 0 163 172 164 Evansville, IN-KY 124 165 167 172 83 137 199 92 136 8 -6 159 Birmingham-Hoover, AL 155 160 151 128 128 140 123 144 136 165 184 175 102 159 160 189 Dutchess County-Putnam County, NY 181 129 42 51 9 166 169 =167 Cleveland-Elyria, OH 174 167 147 2 57 178 193 135 112 145 -12 =167 Brownsville-Harlingen, TX 166 112 116 155 155 98 165 194 191 126 7 176 169 Jackson, MS 162 140 131 141 114 151 128 170 176 18 188 Atlantic Cit y-Hammonton, NJ 191 198 155 196 1 155 66 168 136 170 99 167 172 173 175 161 Hartford-West Hartford-East Hartford, CT 156 170 71 73 -4 171 141 172 Duluth, MN-WI 152 164 177 -31 132 170 29 162 112 155 7 173 Virginia Beach-Norfolk-Newport News, VA-NC 137 161 159 180 162 124 157 130 88 173 16 190 174 Columbus, GA-AL 157 187 198 191 87 85 166 113 88 -7 168 Bridgeport-Stamford-Norwalk, CT 195 175 173 182 172 161 107 33 15 175 166 2 New Haven-Milford, CT 183 180 150 176 150 177 163 77 51 178 9 186 177 Mobile, AL 168 166 115 179 161 200 168 118 88 197 1 178 Clarksville, TN-KY 148 115 193 179 175 44 78 199 191 142 -33 146 179 Toledo, OH 187 169 105 109 193 188 175 176 2 182 Utica-Rome, NY 167 192 15 3 185 185 138 127 101 51 180 173 181 193 176 180 177 130 162 178 15 136 -8 Wichita, KS 94 182 185 161 183 131 177 119 189 136 181 Gar y, IN -1 183 Davenport-Moline-Rock Island, IA-IL 146 189 185 184 11 110 146 159 136 194 127 171 Rockford, IL 197 186 172 164 184 10 174 155 136 -13 168 145 185 Roanoke, VA 194 183 186 -40 135 179 188 137 88 171 9 186 Kingsport-Bristol-Bristol, TN-VA 180 182 171 194 105 198 184 171 136 195 194 196 164 193 187 193 Huntington-Ashland, W V-KY-OH 12 164 180 136 9 187 144 188 Corpus Christi, TX 184 172 188 -44 158 191 171 191 176 115 183 167 157 136 149 184 183 169 -6 189 New Orleans-Metairie, L A 186 175 -1 189 190 Canton-Massillon, OH 159 171 176 160 179 123 196 196 176 -17 174 Beaumont-Port Arthur, T X 192 188 178 140 177 184 121 182 176 191 188 193 198 191 148 180 Fort Smith, AR-OK 115 155 197 136 1 192 187 193 Erie, PA 188 195 194 -6 167 119 195 127 112 187 -9 194 Fayetteville, NC 182 190 169 185 181 196 110 150 136 198 2 197 195 Gulfport-Biloxi-Pascagoula, MS 185 181 154 192 182 197 180 154 136 2 198 Lafayet te, L A 189 200 200 200 186 136 158 166 112 196 181 -5 Anchorage, AK 199 194 199 197 198 190 179 120 136 192 2 200 198 Shreveport-Bossier Cit y, L A 196 197 189 199 192 160 185 184 136 191 -8 199 Peoria, IL 190 199 191 195 191 189 197 167 136 185 136 -1 199 200 Youngstown-Warren-Boardman, OH-PA 200 196 179 186 197 199 187 BEST-PERFORMING CITIES 2018 30

36 BE S T-P E R F OR MING T OP 10 SMALL CITIES

37 Top 10 Best-Performing Small Cities TABLE 5 Rank according to 2018 index 2018 Rank Change Metropolitan Statistical Area (MSA)/Metropolitan Division (MD) 2017 Rank Bend-Redmond, OR MSA 1 1 Steady 2 Steady St. George, UT MSA 2 3 3 Steady Gainesville, GA MSA 4 6 +2 Elkhart-Goshen, IN MSA Coeur d'Alene, ID MSA 5 +24 29 6 -2 San Rafael, CA MD 4 7 28 +21 Medford, OR MSA Athens-Clarke County, GA MSA 42 +34 8 Albany, OR MSA 9 22 +13 Logan, UT-ID MSA 10 24 +14 Source: Milken Institute. Small cities in the U.S. have seen economic growth in the health-care, knowledge-based, amenity focused, manufacturing, and logistics sectors. Health-care industries in smaller metros benefit from lower living costs increasing the concentration of retirees. Places offering more amenities have seen growth as well. The tourism industry can also provide a competitive advantage to cities. Lower cost areas have seen growth in high-tech industries and manufacturing. Smaller metros have overall lower costs for businesses, which can help attract labor-dependent employment. Higher cost major cities have pushed segments of their populations to smaller cities with lower living costs and a higher quality of life. The 2018 edition of the Best-Performing Small Cities index ranks 201 U.S metros. There have been no new additions to the set of cities from the previous release. This year, five of the metros return to the Top 10 small cities. Many of the Top 10 metros have benefited from growing populations and in-migration. In small cities, housing and construction growth is a critical part of the economic landscape this year. The next most influential industries are health-care and manufacturing. Bend-Redmond, OR ; St. George, UT ; Coeur d’Alene, ID ; and Medford, OR , have health-care industries supported by an aging population. A common additional feature that has provided growth is the leisure and hospitality industry, which Gainesville, makes these metros more attractive to retirees. Manufacturing cities such as GA ; Elkhart-Goshen, IN ; Albany, OR ; and Logan, UT , all heavily depend on their core manufacturers, specifically food production or vehicle manufacturing. Logistic hubs and agriculture-based economies are represented in the Top 10 this year. Albany, OR, and Elkhart-Goshen, IN, have greatly benefited from the performance of their key sectors. The renegotiations of NAFTA and the impact of tariffs will present new challenges for trade-dependent metros. College towns and the high-tech sector account for the remaining economic drivers, as exemplified by the University of Georgia and the University of Utah in San Rafael, CA , respectively, or Logan, UT , in the Bay Area. Athens-Clarke County, GA , and BEST-PERFORMING CITIES 2018 BEST-PERFORMING CITIES 2018 32 32

38 BEND-REDMOND, OR # Held steady 1 JOB GROWTH (2012-17) 1ST ASSETS A diversified economy has brought high value-added industries • JOB GROWTH (2016-17) 7TH and a large entrepreneurial community. 1ST WAGE GROWTH (2011-16) Health-care is a core industry and serves an aging population. • WAGE GROWTH (2015-16) 2ND SHORT-TERM JOB GROWTH (8/2017-8/2018) 18TH LIABILITIES HIGH-TECH GDP GROWTH (2012-17) 15TH • A large segment of the population is in low-wage employment. HIGH-TECH GDP GROWTH (2016-17) 19TH HIGH-TECH GDP CONCENTRATION (2017) 18TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 12TH sector is Dutchie, an e-commerce cannabis retailer that Bend-Redmond, OR , sees its third consecutive year ranking brought in a $3 million investment from Casa Verde Capital No. 1 on the BPC Small Cities index. All of the variables in as well as others like the venture capital firm The Durant the Bend-Redmond rank in the Top 20, securing its No. 1 rank 139 Online pet gear retailer Ruffwear received Company. this year. The metro’s five-year job and wage growth both $250,000 from the Governors Strategic Reserve Fund as rank first and one-year wage growth ranks second, which part of an expansion plan that includes co-working space for continues to show the region’s ability to increase high-value local entrepreneurs. Seven Peaks Ventures closed its second employment. Five-year high-tech GDP growth climbed 118 fund of $28 million and has donated $62,500 to the computer places from last year’s ranking, showing the recent dramatic 140 science program at OSU-Cascades. growth of the high-tech sector. The job, wage, and high-tech GDP five-year growth values are 19.9 percent, 25.2 percent, Bend-Redmond saw net migration of 5,133 people for 2015- and 18.0 percent, respectively. Economic growth is also 141 2016, which continues to fuel rising housing prices. The exemplified by a $5.2 million expansion to meet demand at overall population grew 3.1 percent since the last edition of the regional Redmond airport, one of the few options to get BPC. The housing market has since experienced year-over- 136 people from outside the region to Bend-Redmond. 142 The number year price increases of close to 10 percent. The high-tech sector has become an anchor industry for the of single-family housing permits being issued has so far metro, which diversifies the economy beyond health-care not kept up with demand, which is contributing to rising 143 However, the housing market is relatively and tourism. The metro’s high-tech GDP grew 4.1 percent housing prices. inexpensive compared to the U.S., which will continue to from 2016-2017, continuing year-over-year rank increases. 144 attract people from outside the metro. The risk capital and entrepreneurial infrastructure expanded in 2018 when Oregon State University-Cascades (OSU- Since 2008, Bend-Redmond has seen the population of 65+ Cascades) opened its Innovation Co-Lab. The Co-Lab joins residents increase significantly. The increase in retirees various incubators and investment funds in Bend that continues to support the health-care industry. The low cost provide support for the high-tech sector. The knowledge- of living has been one aspect of the appeal to retirees, along based economic engine of the metro should continue with the large leisure and hospitality capacity provided by to see growth as the university continues to provide the tourist industry, which is the metro’s foundational sector. new graduates. The class of 2018 graduated a total of St. Charles Medical Center is still the largest employer 137 368 students, 90 of which earned master’s degrees. with 3,361 staff, which is a 36.2 percent increase from 2017 The presence of the Central Oregon Community College 145 The growth in the health-care industry is data releases. should also provide affordable higher education for the exemplified by the regional hospital. The impact of retirees resident population. Access to post-secondary education in the metro plays a major role in the region’s composition will be important going forward to maintain high levels of of income, as well. Nonwage income makes up 60 percent 138 educational attainment. 146 The presence of total personal income in Bend-Redmond. Bend-Redmond has become a place for entrepreneurship of such a large population aged 65 and over should help driven by tech and biotech. A recent example of Bend support the metro’s foundational health-care, leisure, successfully taking advantage of new markets in the tech and hospitality industries for the foreseeable future. TOP 10 BEST-PERFORMING SMALL CITIES TOP 10 BEST-PERFORMING SMALL CITIES 33 33

39 ST. GEORGE, UT # Held steady 2 2ND ASSETS JOB GROWTH (2012-17) • Higher education institutions can provide local talent to a nascent 4TH JOB GROWTH (2016-17) high-tech sector. 4TH WAGE GROWTH (2011-16) • Low cost of living should continue to support the retiree community WAGE GROWTH (2015-16) 1ST and related service sectors. SHORT-TERM JOB GROWTH (8/2017-8/2018) 9TH HIGH-TECH GDP GROWTH (2012-17) 11TH LIABILITIES 44TH HIGH-TECH GDP GROWTH (2016-17) • Large segments of the population are employed in low-wage sectors. HIGH-TECH GDP CONCENTRATION (2017) 68TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 82ND St. George, UT , maintains its second-place rank for this year’s The metro has benefited from significant construction of both residential and non-residential developments. A 300- BPC Small Cities index. The metro ranks No. 1 in one-year 148 unit retirement facility has begun construction in the metro. wage growth (8.2 percent) and second in five-year job A 110-unit $40 million mixed-use apartment building is also growth (19.5 percent). St. George had a 53 place increase 149 However, the largest of such projects is the being built. in the variable tracking the number of high-tech location 150 $300 million expansion of the Dixie Regional Medical Center. quotients greater than one. Five-year wage growth and one-year job growth both rank No. 4. The metro is reliant Dixie State University is one of the largest employers and on health care and tourism. The low cost of living and the provides local talent to the metro. PrinterLogic is one of access to amenities from the tourism industry makes St. the fastest growing startups in the U.S. and is co-located George more attractive for retirees, who support key sectors. next to a new $45 million facility housing the Dixie Applied 151 The region’s tourism industry is maintained by its proximity The local talent generated from the Technology College. to Zion National Park, which continues to set records for university and college should help further the development 147 attendance, up 5 percent to 4.5 million visitors this year. of a nascent tech sector. GAINESVILLE, GA # 3 Held steady 6TH JOB GROWTH (2012-17) ASSETS Proximity to Atlanta will help demand for residential construction due to • 8TH JOB GROWTH (2016-17) the lower cost of living. 15TH WAGE GROWTH (2011-16) • Atlanta is a transportation hub, which will help local exporters with their 41ST WAGE GROWTH (2015-16) supply chains. SHORT-TERM JOB GROWTH (8/2017-8/2018) 12TH HIGH-TECH GDP GROWTH (2012-17) 24TH LIABILITIES HIGH-TECH GDP GROWTH (2016-17) 27TH • Food producers in the metro will face changes based on new trade policies for North America and China. HIGH-TECH GDP CONCENTRATION (2017) 109TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 82ND Gainesville manufacturing industry has attracted companies to Gainesville, GA , retains its third-place ranking on this edition start operations in the area. Elastron, a Turkish company, has of the BPC Small Cities index. One- and five-year job growth invested $10 million into the area for operations and has plans ranked No. 8 and No. 6, respectively. The metro still attracts 156 to expand over the next several years. Further changing the manufacturers and the health-care industry continues to grow. makeup of the manufacturing sector in the metro, VDL Groep is The metro’s location next to Atlanta provides a strategic 157 creating a $17 million vehicle assembly plant. In order to keep advantage for manufacturers integrating into supply chains. up with local labor demands, Lanier Technical College moved The poultry processors have the largest economic footprint 158 Japan-based manufacturing to a new $130 million facility. among manufacturers in Gainesville. The metro should see company Kubota, which has operations in the metro, donated increased interest from outside investors in coming years thanks 152 159 $1 million to job placement services at the college. to three IRS-designated opportunity zones in the region. Due to the metro’s location near Atlanta, Gainesville has been able to attract people willing to commute in order to take 153 advantage of the lower cost of living. Gainesville’s population growth has contributed to gains in consumer sectors and increased interest in its housing market. The metro had 1,184 154 single-family home permits issued in 2017. A five-year, five million dollar sewer expansion should help keep up with population growth and increased demand for 155 manufacturing space. BEST-PERFORMING CITIES 2018 34

40 ELKHART-GOSHEN, IN # Gained 2 spots 4 ASSETS 5TH JOB GROWTH (2012-17) • Affordable cost of living and business, and a highly specialized workforce JOB GROWTH (2016-17) 6TH for RV manufacturing help to keep the metro competitive. 3RD WAGE GROWTH (2011-16) WAGE GROWTH (2015-16) 4TH LIABILITIES 13TH SHORT-TERM JOB GROWTH (8/2017-8/2018) Tariffs on steel and aluminum may have an impact on the overall cost of • HIGH-TECH GDP GROWTH (2012-17) 114TH RV production. HIGH-TECH GDP GROWTH (2016-17) 39TH • North American supply chains might be impacted from new trade policies. HIGH-TECH GDP CONCENTRATION (2017) 157TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 44TH Elkhart-Goshen, IN , increases its rank from sixth to fourth in The metro saw a 35.5 percent increase in issued single- family housing permits from 2015 to 2017. Elkhart-Goshen’s this year’s index. The one- and five-year job and wage growth indicators all rank in the Top 10. Five-year wage growth growth has left construction-related employers struggling 165 Elkhart homebuilder Skyline merged to fill labor demand. reached 22 percent and ranked third. One-year high-tech 166 with Champion Enterprises and will operate in the area. GDP increased in rank by 90 places. Six of the nine variables The construction boom in the region should continue due improved this year, propelling the metro up the index. to plans for a new medical center, which will cost $175 The metro has seen wage growth because of a tight labor 167 These are not the only development plans; million to build. 160 Elkhart- market with an unemployment rate of 2.6 percent. a $30 million dollar investment in public infrastructure Goshen’s major industry is RV manufacturing. The largest 168 improvements has also been proposed. 161 RV manufacturer is Thor Industries with 13,622 employees. The company has agreed to purchase Erwin Hymer Group 162 Elkhart for $2.5 billion to grow its international presence. RV parts-maker Patrick Industries has acquired both Indiana Marine Products and Dehco for $18.5 million and $53 million, 163 A $10 million respectively, further consolidating the industry. investment from the RV Association will create the RV Technical Institute to help fill the skills gaps and address 164 labor shortages in the industry. COEUR D’ALENE, ID # 5 Gained 24 spots JOB GROWTH (2012-17) 9TH ASSETS • Low cost of living should help to bring people into the metro sustaining 10TH JOB GROWTH (2016-17) population in-flows and benefit health-care providers. 24TH WAGE GROWTH (2011-16) 10TH WAGE GROWTH (2015-16) LIABILITIES SHORT-TERM JOB GROWTH (8/2017-8/2018) 16TH Young talent has left for larger cities, leaving the metro with an aging • HIGH-TECH GDP GROWTH (2012-17) 120TH population. 36TH HIGH-TECH GDP GROWTH (2016-17) 101ST HIGH-TECH GDP CONCENTRATION (2017) 44TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) Coeur d’Alene, ID , breaks into the Top 10 for the first time, This metro has benefited from proximity to Spokane, WA, landing at No. 5. The metro was added in 2012 and briefly and has carved out space to provide professional services to dropped to the high 90s only to see dramatic increases in the region. This has been possible because of low office rents 171 recent years. Coeur d’Alene has both one- and five-year job in Coeur d’Alene. Business and professional services have growth in the Top 10, as well as one-year wage growth. The seen 6.3 percent job growth in the last year; the two largest leisure and hospitality sectors in conjunction with a lower subsectors, professional, scientific, and technical services, cost of living in the metro have created an additional appeal and administrative and support services, employing 6,170 172 169 as a retiree community. people. The metro has shown signs of looking to diversify their economy by taking advantage of their service sector. From 2014 to 2017 single-family housing permits increased The Innovation Den is a new co-working space intended to 71.7 percent in Coeur d’Alene. Over the same time frame 173 The banking support the metro’s nascent tech industry. the metro saw an 11,000-person population increase. Total sector has also seen interest from outside parties. Idaho net migration into the metro was 3,047 in 2016. The speed Independent Bank has been purchased for $181.3 million by of economic development in the metro has led the FCC First Interstate Bank, and Idaho Credit Union is constructing to award $11.5 million to Coeur d’Alene-based Intermix 174 an $8.6 million building in the metro. Networks to build broadband internet infrastructure to 170 connect rural areas in the region. TOP 10 BEST-PERFORMING SMALL CITIES 35

41 SAN RAFAEL, CA # 6 Dropped 2 spots 45TH ASSETS JOB GROWTH (2012-17) As part of the Bay Area economic cluster, the metro is deeply entrenched • JOB GROWTH (2016-17) 75TH in the innovation economy, providing long-term economic opportunity. WAGE GROWTH (2011-16) 19TH WAGE GROWTH (2015-16) 36TH LIABILITIES SHORT-TERM JOB GROWTH (8/2017-8/2018) 32ND • Rising cost of living in the metro will reduce its appeal and take away 6TH HIGH-TECH GDP GROWTH (2012-17) some past advantages. 29TH HIGH-TECH GDP GROWTH (2016-17) 3RD HIGH-TECH GDP CONCENTRATION (2017) 20TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) San Rafael, CA The metro has been pushing for larger-scale use of renewable , drops two ranks from last year’s BPC Small Cities index to land at sixth. The metro is located in the energy and has put incentives in place to move from traditional fuels to electric options. Sausalito-based CleanFund has northern Bay Area and is part of the greater economic provided financing for Seagate Properties to install solar cluster that dominates the region. Five-year high-tech GDP 179 The clean energy panels on their existing building. growth ranks sixth, registering 33.8 percent growth. As part industry has seen interest from other Southern California of the Bay Area, the anchor industries are biotech, computer counties, as well. Marin Clean Energy (MCE) is one of the science, and health care. The relative price difference largest clean energy companies in the nation and is well- between the North Bay and South Bay has a fifth of metro 175 However, positioned to take advantage of continued regional interest residents commuting to San Francisco for work. due to low construction activity for both residential and in renewable energy. A long-term contract with renewable 176 The number commercial real estate, prices are increasing. energy developer BayWa r.e. has MCE providing power to 180 of single-family housing permits issued has fallen 53.2 percent its customers from BayWa r.e.’s Santa Barbara wind farm. and the total number of multi-family housing permits has MCE has started operations on the Solar One farm in 181 177 The demand for low-cost dropped to zero from 2015 to 2017. Richmond, CA, as well. housing and the lack of supply has pushed people who work 178 in the metro to commute from Santa Rosa and Oakland. MEDFORD, OR # 7 Gained 21 spots 15TH ASSETS JOB GROWTH (2012-17) • Low cost of living is helping population growth and boosting sectors JOB GROWTH (2016-17) 30TH like health-care. 13TH WAGE GROWTH (2011-16) 16TH WAGE GROWTH (2015-16) LIABILITIES SHORT-TERM JOB GROWTH (8/2017-8/2018) 26TH Local employment has few high-wage options. • HIGH-TECH GDP GROWTH (2012-17) 174TH HIGH-TECH GDP GROWTH (2016-17) 60TH HIGH-TECH GDP CONCENTRATION (2017) 42ND NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 12TH Medford, OR , jumps into the Top 10 for the first time, landing Population growth and in-migration have spurred housing at No. 7. The 21 rank increase is the highest the metro has demand. The number of single-family home permits issued reached since 2004. Short-term job growth increased 80 increased by 96.7 percent from 2012 to 2017. Even with the places from last year’s edition. Medford has a long history boom in housing, supply is being outstripped by demand, of commodities being an integral part of the local economy. giving impetus to projects like the Central Point Affordable Housing Development, which has received $2.2 million in The metro’s economy has evolved from timber products 186 state funding. to wine and now, after Oregon legalized recreational use, Vacancy rates for homes stand around one 182 187 cannabis is the new major crop in the region. percent as of 2016. Price increases have also hit renters, 188 Residents have with vacancy rates less than two percent. The metro is a major health-care provider for the region 189 seen rental prices increase by large double-digit percentages. and the health-care industry accounts for 17.1 percent of The growth in the metro should be supported by a 2018 183 employment in the area. Medford has a lower cost of 190 expansion of the urban growth boundary. 184 For this reason, the living than the national average. metro attracts retirees, which leads to economic activity in housing and health-care sectors. A proposal currently being considered to expand the Lawrence Memorial Hospital in Medford could bring a $16 million 17,500 square foot facility offering outpatient services to keep up with increased 185 demand for health care. BEST-PERFORMING CITIES 2018 36

42 ATHENS-CLARKE COUNTY, GA # 8 Gained 34 spots JOB GROWTH (2012-17) 31ST ASSETS • A highly educated population provides a foundation for future economic 16TH JOB GROWTH (2016-17) development. WAGE GROWTH (2011-16) 30TH WAGE GROWTH (2015-16) 8TH LIABILITIES 33RD SHORT-TERM JOB GROWTH (8/2017-8/2018) • Lack of economic diversity leaves the metro exposed to changes to state HIGH-TECH GDP GROWTH (2012-17) 62ND education funding. HIGH-TECH GDP GROWTH (2016-17) 28TH HIGH-TECH GDP CONCENTRATION (2017) 87TH 82ND NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) , jumps 34 places to land at No. 8. Athens-Clarke County, GA Manufacturing remains a key sector for the metro with A major driver for the metro is the University of Georgia, one companies like Accurus investing $15 million into a local 195 of the state’s leading higher education institutions and the On an entirely plant that builds parts for F-35 fighter planes. 191 metro’s largest employer with 10,655 staff. The university is different side of the manufacturing spectrum, Creature well placed because of its capacity for research; a university Comfort Brewery opened a new facility in the metro and 196 A project redeveloping a 100,000 spinout, ArunA Bio, recently received $5.3 million to fund began production in 2018. square foot building will include some event space but R&D of drugs to treat neurological disorders but an ongoing 197 192 the majority will house Terrapin Beer Co.’s operations. obstacle will be retaining graduates in the metro. Issues with retaining graduates is, in part, due to the proximity to Atlanta. In addition, a 100-unit apartment complex has been proposed 198 as a multi-purpose building near the redevelopment project. To address this challenge the university has been reaching out to the community to develop workforce and work-based 193 These programs will involve university learning programs. 194 internships and programs targeting high school students. A growing student population is a welcome sign and will provide some growth. ALBANY, OR # 9 Gained 13 spots JOB GROWTH (2012-17) 20TH ASSETS The metro has a lower cost for businesses and is well situated on • 32ND JOB GROWTH (2016-17) transportation routes both north-south and east-west. WAGE GROWTH (2011-16) 28TH WAGE GROWTH (2015-16) 7TH LIABILITIES 8TH SHORT-TERM JOB GROWTH (8/2017-8/2018) • Impacts of new trade policies on the large concentration of metal 191ST HIGH-TECH GDP GROWTH (2012-17) manufactures is uncertain in a less diverse economic landscape. 20TH HIGH-TECH GDP GROWTH (2016-17) HIGH-TECH GDP CONCENTRATION (2017) 83RD NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 12TH Though the area does not have the most diverse economy, Albany, OR , is the third metro in the state to make an there are signs of new industries taking hold. Agility Robotics appearance in the Top 10 this year. The region ranks No. 9, raised $8 million to develop biped robots, AlgoteK is developing a 13-rank increase from the last release. One-year high-tech a biodegradable plastic, and Arauco acquired Panolam’s GDP growth jumped by 177 places, growing four 4 percent. Albany production facilities to continue to expand into U.S. The sectors fueling Albany’s growth are housing and 204 wood products. manufacturing. Single-family home permits have more than doubled since 2012 and prices continue to increase as 199 well. The metro’s growth is also evident in infrastructure 200 investments, such as a $13 million sewer project. Logistics and metal manufacturing have a large presence in the metro. Albany has nearly 30 percent of its manufacturing employment in primary metal production, which is 27 percentage points higher when compared to national 201 figures. Radiator Supply House received two loans totaling $60,000 to renovate an old lumber mill for new 202 production space. The logistics sector in the metro looks like it will be getting support from the local economic development agency, which is providing a $400,000 grant 203 to convert an old paper mill into a logistics facility. TOP 10 BEST-PERFORMING SMALL CITIES 37

43 LOGAN, UT-ID # Gained 14 spots 10 JOB GROWTH (2012-17) 24TH ASSETS • Utah State University is an active research university providing the metro 39TH JOB GROWTH (2016-17) with a highly skilled workforce. WAGE GROWTH (2011-16) 46TH WAGE GROWTH (2015-16) 21ST LIABILITIES 43RD SHORT-TERM JOB GROWTH (8/2017-8/2018) Net out-migration reduces the metro’s ability to maintain its workforce. • HIGH-TECH GDP GROWTH (2012-17) 125TH HIGH-TECH GDP GROWTH (2016-17) 57TH HIGH-TECH GDP CONCENTRATION (2017) 12TH NUMBER OF HIGH-TECH INDUSTRIES (LQ>=1) (2017) 4TH Logan, UT-ID , rounds out the Top 10 for this edition of BPC The metro depends on manufacturing, which represents 208 Food processing companies 18.6 percent of employment. Small Cities index. The metro has a diverse high-tech industry, 209 are the most prominent of manufacturing employers. and ranks fourth for the number of high-tech location quotients There is also a sizeable number of durable goods manufacturers greater than one. Logan is home to Utah State University, in the metro. Electric Power Systems is going to open which provides a stabilizing economic anchor. The school operations to build batteries for the aerospace industry and will expand program offerings with a $1.8 million barn to 205 estimates bringing 128 jobs to the metro with an $11.6 million increase the capacity of the veterinary medicine program. 210 GE has plans to double its manufacturing The university is looking to maximize its R&D capacity and investment. 206 has opened an innovation campus to draw in companies. footprint in Logan with its powdered cell cultures used in 2 11 The school had weak enrollment in 2017, which will put Two opportunity zones have biopharmaceutical products. 212 These two zones pressure on economic growth. Educational and health-care been designated by the IRS in the metro. might help offset some of the risks Logan is facing in its beef services make up 12 percent of employment and account for and dairy industries due to increased tariffs. the two largest employers in the metro. The Logan Regional Hospital is investing $1.2 million in new surgical robots to 207 expand ability to perform less-invasive procedures. BEST-PERFORMING CITIES 2018 38

44 COMPLETE RESULTS: 2018 BEST-PERFORMING SMALL CITIES RANKINGS BY COMPONENT Job Grow th Job Grow th (2012-17) Wage Growth 2017 Rank (2 015 -16) Wage Growth (2 016 -17) (2 011-16) 12-month Job Grow th (8/2017-8/2018) High Tech GDP Grow th (2 016 -17) High Tech GDP Grow th (2012-17) High Tech GDP Concentration Number of Industries with LQ >1 (2017) 2018 Rank Rank Change Metropolitan Statistical Area/Metropolitan Division Bend-Redmond, OR 1 1 2 1 18 19 15 18 12 0 1 7 44 2 2 1 4 9 4 11 68 82 2 0 St. George, UT 3 Gainesville, GA 8 6 41 15 0 27 24 109 82 3 12 6 Elkhart-Goshen, IN 6 5 4 3 13 39 114 157 44 2 4 36 5 9 10 24 16 10 120 101 44 29 Coeur d'Alene, ID 24 6 San Rafael, CA 75 45 36 19 -2 29 6 3 20 4 32 28 Medford, OR 30 15 16 13 7 60 174 42 12 21 26 42 8 Athens-Clarke Count y, GA 16 31 8 30 33 28 62 87 82 34 22 13 32 20 7 28 8 20 191 83 12 9 Albany, OR 57 10 24 21 46 43 39 125 12 4 24 Logan, UT-ID 14 11 Daphne-Fairhope-Foley, AL 20 7 26 16 1 33 112 159 82 12 17 26 Prescot t, A Z 26 12 14 21 12 49 63 127 20 14 77 14 13 Sebastian-Vero Beach, FL 36 22 31 20 68 51 57 73 82 1 36 22 13 10 37 34 45 40 19 161 126 14 Hilton Head Island-Bluffton-Beaufort, SC 11 15 35 30 86 38 Charlottesville, VA 125 22 34 44 0 15 5 16 Wenatchee, WA 47 11 49 18 54 30 4 115 126 -11 51 8 Bellingham, WA 34 28 44 17 39 76 147 -9 2 17 19 37 18 Mankato-North Mankato, MN 58 68 68 42 15 107 18 21 20 -9 10 Auburn-Opelika, AL 14 8 18 14 161 98 12 126 44 19 13 20 11 4 9 5 145 93 9 146 126 -7 The Villages, FL 21 69 67 33 38 11 32 59 41 67 126 11 Sioux Falls, SD 44 18 25 13 114 31 College Station-Bryan, T X 42 61 62 126 -4 22 17 23 Grants Pass, OR 24 16 22 36 83 177 173 24 20 -6 40 64 Idaho Falls, ID 22 19 13 94 35 112 160 6 126 24 156 7 12 17 63 43 Yuba Cit y, CA 66 47 76 4 -18 25 77 26 Kankakee, IL 19 88 137 51 2 14 50 10 44 85 0 27 Barnstable Town, MA 52 56 70 27 58 53 97 26 20 57 39 66 28 Madera, CA 17 49 6 27 22 147 155 156 82 24 53 Yakima, WA 33 38 20 35 3 29 92 147 161 126 55 30 64 51 86 103 Bremerton-Silverdale, WA 12 20 60 82 56 34 43 31 Missoula, MT 46 12 25 45 98 32 54 90 82 54 -12 32 Redding, CA 60 27 40 20 21 171 66 103 44 65 -3 30 33 Lake Charles, L A 2 3 3 2 53 167 168 185 173 12 5 Kahului-Wailuku-Lahaina, HI 44 25 15 34 38 169 65 193 126 39 -10 25 35 Janesville-Beloit, WI 57 41 62 40 122 65 5 64 44 33 -25 36 Chico, CA 31 14 11 17 29 193 136 122 126 44 -14 23 37 Mount Vernon-Anacortes, WA 43 32 57 22 116 73 53 119 39

45 RANKINGS BY COMPONENT (2 016 -17) Job Grow th Metropolitan Statistical Area/Metropolitan Division (2012-17) Wage Growth Job Grow th (2 015 -16) Wage Growth Rank Change (2 011-16) 12-month Job Grow th (8/2017-8/2018) High Tech GDP Grow th (2 016 -17) High Tech GDP Grow th (2012-17) High Tech GDP Concentration Number of Industries with LQ >1 (2017) 2017 Rank 2018 Rank 38 Lewiston, ID-WA 29 30 56 105 83 55 123 82 -3 34 23 Bowling Green, K Y 18 36 23 26 24 39 150 188 173 -4 35 50 26 40 18 17 25 95 76 31 165 173 16 -24 Punta Gorda, FL 41 Longview, WA 45 52 121 37 27 43 71 107 82 62 103 108 42 49 58 51 49 61 90 82 143 82 66 Sheboygan, WI 96 43 23 39 50 75 18 157 163 126 46 Jonesboro, AR 3 44 Winchester, VA-W V 40 37 53 64 16 129 48 158 173 60 31 44 Hattiesburg, MS 41 47 95 84 45 35 21 169 44 -1 79 41 46 Lawrence, KS 152 85 73 76 4 113 1 27 44 -5 22 47 Sherman-Denison, TX 53 55 94 115 40 71 42 30 126 69 49 48 48 90 177 78 36 21 30 56 20 1 Morgantown, W V 49 34 111 74 79 74 121 6 13 149 82 72 Dover, DE 148 31 89 105 43 33 Columbia, MO 50 60 32 20 -19 50 18 51 Kokomo, IN 90 48 132 75 6 95 119 43 44 -33 11 63 Gettysburg, PA 63 69 77 79 25 144 115 99 20 =52 10 9 78 53 157 23 Columbus, IN 166 113 63 20 -43 =52 33 54 Ames, IA 69 40 142 -21 52 160 36 77 44 44 4 55 Lake Havasu Cit y-Kingman, A Z 15 34 88 59 20 118 146 164 82 106 51 107 56 Dalton, GA 136 70 29 47 67 74 152 31 82 61 -10 47 57 Iowa Cit y, IA 81 46 48 150 61 111 54 44 -1 57 St. Cloud, MN 55 67 50 29 90 140 117 129 82 58 73 59 62 84 19 92 14 185 79 140 126 14 Walla Walla, WA 135 60 39 45 100 165 21 199 1 1 78 Corvallis, OR 18 61 Hammond, L A 9 92 60 188 106 1 2 117 126 167 76 38 Napa, CA 38 21 66 7 62 119 121 95 173 -24 162 141 63 Carson Cit y, NV 3 57 112 78 50 124 124 93 20 150 23 64 Greenville, NC 92 103 81 61 89 115 58 2 82 87 19 52 96 60 126 80 Tyler, T X 126 88 104 44 -13 65 89 66 Pocatello, ID 29 35 59 23 42 118 142 171 173 84 10 123 Midland, TX 1 56 198 67 1 116 190 198 173 26 -47 21 68 Fargo, ND-MN 113 44 124 9 123 138 95 51 44 -15 54 Appleton, WI 148 75 47 58 80 58 104 102 82 69 86 61 112 100 89 59 Fond du Lac, WI 179 34 39 20 -9 70 76 71 Panama Cit y, FL 84 43 58 5 46 176 183 80 126 71 -25 72 Brunswick, GA 106 59 27 47 165 146 38 84 44 73 8 81 73 Burlington, NC 107 110 11 90 85 199 123 44 4 -24 50 Jackson, MI 131 65 35 52 193 2 10 130 82 74 107 27 Chambersburg-Waynesboro, PA 118 97 123 75 37 10 70 70 82 102 -4 72 76 Manhattan, KS 99 141 119 113 7 9 64 128 44 117 -19 77 Ithaca, NY 144 91 58 122 5 121 107 15 12 59 44 1 79 78 Pueblo, CO 108 71 82 104 115 137 16 BEST-PERFORMING CITIES 2018 40

46 RANKINGS BY COMPONENT (2 016 -17) Job Grow th Metropolitan Statistical Area/Metropolitan Division (2012-17) Wage Growth Job Grow th (2 015 -16) Wage Growth Rank Change (2 011-16) 12-month Job Grow th (8/2017-8/2018) High Tech GDP Grow th (2 016 -17) High Tech GDP Grow th (2012-17) High Tech GDP Concentration Number of Industries with LQ >1 (2017) 2017 Rank 2018 Rank 79 Valdosta, GA 106 87 114 48 150 8 22 44 15 94 143 Staunton-Waynesboro, VA 130 114 67 81 73 80 46 53 20 -18 62 156 168 81 82 48 55 178 72 149 28 20 68 -13 Rochester, MN 82 Oshkosh-Neenah, WI 85 112 42 91 139 102 91 61 44 19 101 84 83 91 111 84 83 126 127 101 16 4 1 State College, PA 114 84 62 138 62 84 54 154 66 126 71 Flagstaff, A Z -13 85 Jackson, TN 139 78 32 77 5 70 76 196 173 90 47 96 Lebanon, PA 71 126 76 157 86 48 17 7 4 10 165 115 87 Pit tsfield, MA 115 150 78 111 41 64 139 29 44 29 -43 88 Lafayette-West Lafayette, IN 83 76 72 67 164 62 172 88 20 45 109 89 114 115 61 72 59 97 129 139 82 20 La Crosse-Onalaska, WI-MN 90 151 66 87 64 70 82 15 3 83 138 44 -8 Rapid Cit y, SD 23 80 130 73 160 41 Wausau, WI 117 32 172 126 -11 91 83 92 Rome, GA 88 81 83 125 97 109 134 75 44 -9 -23 70 Harrisonburg, VA 80 80 75 96 137 82 59 124 126 93 129 120 79 89 24 95 Yuma, A Z 75 189 110 126 26 94 85 95 Amarillo, TX 171 120 113 -10 28 8 37 106 126 97 14 96 Eau Claire, WI 134 124 130 110 81 72 126 49 44 54 25 122 97 Muskegon, MI 61 86 155 108 127 105 23 98 44 122 62 160 98 Albany, GA 51 55 168 107 106 102 55 82 -44 55 Monroe, MI 169 77 166 60 87 85 3 65 82 99 67 100 102 63 85 102 56 180 67 194 126 -33 Morristown, TN 143 101 119 91 88 65 116 171 35 82 113 St. Joseph, MO-KS 12 102 Decatur, A L 82 159 104 167 59 13 28 142 44 161 71 99 El Centro, CA 42 66 128 87 103 84 184 187 173 -4 62 97 104 Hanford-Corcoran, CA 56 72 152 -7 119 68 44 184 173 68 26 105 Champaign-Urbana, IL 94 94 161 109 110 108 105 38 20 131 124 100 200 131 12 8 Sioux Cit y, IA-NE-SD 77 90 170 126 -6 106 93 107 Tuscaloosa, AL 74 50 159 -14 101 123 11 195 173 33 131 126 Kingston, NY 101 18 100 108 60 154 144 91 44 109 5 114 109 Sumter, SC 122 96 156 99 119 56 80 82 44 23 133 Warner Robins, GA 65 121 54 173 103 86 192 69 82 110 78 74 95 83 146 105 Florence, SC 131 116 125 82 -37 111 126 112 Niles-Benton Harbor, MI 105 113 120 14 125 67 81 148 126 66 63 113 Wichita Falls, TX 59 165 109 176 113 3 110 40 126 162 -8 106 114 Lewiston-Auburn, ME 73 93 103 112 135 132 26 134 173 4 119 Bloomington, IN 98 144 69 86 201 63 194 4 44 115 144 53 Cape Girardeau, MO-IL 120 162 102 116 74 136 69 89 44 169 -52 65 117 Blacksburg-Christiansburg-Radford, VA 159 129 144 98 72 145 141 52 4 133 -63 118 Billings, MT 125 99 55 53 154 148 56 97 126 86 44 -21 98 119 Hagerstown-Martinsburg, MD-WV 121 107 135 127 93 162 99 COMPLETE RESULTS: 2018 BEST-PERFORMING SMALL CITIES 41

47 RANKINGS BY COMPONENT (2 016 -17) Job Grow th Metropolitan Statistical Area/Metropolitan Division (2012-17) Wage Growth Job Grow th (2 015 -16) Wage Growth Rank Change (2 011-16) 12-month Job Grow th (8/2017-8/2018) High Tech GDP Grow th (2 016 -17) High Tech GDP Grow th (2012-17) High Tech GDP Concentration Number of Industries with LQ >1 (2017) 2017 Rank 2018 Rank 120 Bat tle Creek, MI 98 65 63 146 4 151 166 126 -9 111 183 Jefferson Cit y, MO 69 148 52 132 130 121 87 74 126 19 140 140 151 122 132 5 181 96 132 106 131 82 179 57 Jacksonville, NC 123 Lynchburg, VA 137 147 147 146 49 87 167 45 12 51 174 105 124 119 64 149 195 88 38 68 108 126 -19 Elizabethtown-Fort Knox, K Y 41 125 156 167 151 132 129 27 14 20 139 Altoona, PA 14 126 Monroe, L A 175 15 3 122 124 -14 99 7 41 44 112 118 154 Glens Falls, NY 104 161 15 3 139 127 133 166 37 82 27 30 130 128 Grand Island, NE 103 166 108 89 108 78 109 190 82 2 -1 129 East Stroudsburg, PA 68 130 80 178 158 149 93 13 126 128 51 130 128 46 28 128 197 170 45 173 173 -79 Sebring, FL 131 63 28 104 185 169 187 22 176 154 173 56 Grand Junction, CO 179 118 109 127 110 140 Johnson City, TN 120 128 46 20 -14 132 75 133 Macon, GA 127 102 162 110 133 196 89 48 44 -58 -8 125 Burlington-South Burlington, V T 168 123 97 93 187 92 186 11 20 134 121 134 149 164 125 143 Joplin, MO 45 75 105 20 -1 135 150 136 Ocean Cit y, NJ 37 79 98 14 195 128 73 174 173 145 -21 137 Gadsden, AL 138 101 99 116 117 80 85 180 126 142 32 170 138 Odessa, TX 5 154 199 149 51 17 161 199 173 117 32 171 139 Abilene, TX 70 178 121 56 182 148 133 126 -36 104 Grand Forks, ND-MN 174 155 90 32 165 111 52 15 3 126 140 135 141 166 171 127 163 165 34 29 19 12 -6 Cumberland, MD-W V 79 142 118 172 116 138 157 25 92 82 146 Cheyenne, W Y 4 143 Muncie, IN 87 137 164 119 -11 31 86 94 82 132 191 91 Owensboro, KY 100 128 141 69 144 190 98 189 126 -53 109 95 145 Bismarck, ND 191 95 181 -50 128 165 131 121 82 6 1 146 Bloomsburg-Berwick, PA 93 174 93 126 155 7 193 100 126 147 157 117 179 142 56 136 Saginaw, MI 164 49 79 82 -30 147 148 148 Midland, MI 182 138 71 0 152 156 184 58 44 43 134 155 Dothan, AL 97 6 96 149 131 155 74 183 126 140 -13 137 150 Santa Fe, NM 178 152 174 164 82 91 35 72 44 5 156 San Angelo, T X 124 108 189 82 64 191 188 111 126 151 106 123 117 145 118 154 Vineland-Bridgeton, NJ 110 135 155 82 -29 152 143 153 Terre Haute, IN 158 169 151 -10 112 46 181 25 12 161 -62 154 Carbondale-Marion, IL 164 125 139 92 198 89 14 116 20 138 10 165 155 Lima, OH 77 136 74 129 182 198 163 137 82 12 168 Great Falls, MT 123 160 106 130 99 55 185 152 173 156 39 -117 Cleveland, TN 180 42 111 157 165 181 200 191 173 40 -16 142 158 California-Lexington Park, MD 161 146 148 170 111 158 170 8 20 101 22 159 Anniston-Oxford-Jacksonville, AL 86 177 181 197 104 152 145 120 82 96 82 -72 88 160 Hot Springs, AR 110 143 107 120 175 174 175 BEST-PERFORMING CITIES 2018 42

48 RANKINGS BY COMPONENT (2 016 -17) Job Grow th Metropolitan Statistical Area/Metropolitan Division (2012-17) Wage Growth Job Grow th (2 015 -16) Wage Growth Rank Change (2 011-16) 12-month Job Grow th (8/2017-8/2018) High Tech GDP Grow th (2 016 -17) High Tech GDP Grow th (2012-17) High Tech GDP Concentration Number of Industries with LQ >1 (2017) 2017 Rank 2018 Rank 161 Hinesville, GA 149 187 199 66 134 178 145 126 17 178 27 Topeka, K S 157 134 92 141 136 162 78 144 126 -26 136 170 54 163 196 182 192 94 189 96 9 12 173 10 Johnstown, PA 164 Dubuque, IA 126 135 163 101 159 94 195 150 82 -15 149 158 165 181 173 105 175 91 5 143 179 126 -7 Texarkana, T X-AR 159 166 186 131 179 165 142 142 5 4 164 Binghamton, NY -2 167 Racine, WI 135 133 165 155 -15 103 94 136 82 152 165 151 New Bern, NC 146 116 145 171 168 156 103 141 173 -17 100 162 169 Mansfield, OH 176 167 143 160 92 195 197 50 20 -7 -26 170 Florence-Muscle Shoals, AL 15 3 139 158 135 181 23 40 182 173 144 138 171 177 170 134 137 143 122 77 118 126 -33 Bangor, ME 172 102 167 157 186 191 183 16 39 175 173 11 Lawton, OK 199 129 194 158 116 152 Las Cruces, NM 183 162 23 4 -44 173 192 174 Farmington, NM 145 183 196 190 70 25 100 197 126 18 -3 172 Longview, T X 163 188 193 182 147 100 72 81 20 175 149 166 155 168 140 176 Homosassa Springs, FL 104 138 132 126 -10 176 157 177 Williamsport, PA 147 192 195 -20 194 81 130 47 44 184 -19 178 Rocky Mount, NC 190 181 179 159 142 187 165 20 2 185 -26 15 3 179 Bay Cit y, MI 197 184 169 159 114 201 127 33 126 180 9 189 180 Michigan Cit y-La Porte, IN 172 150 172 189 101 182 114 20 -1 180 Wheeling, W V-OH 151 172 192 117 183 47 132 176 173 181 197 182 187 198 180 200 177 37 122 36 82 15 Sierra Vista-Douglas, AZ 200 183 179 154 177 15 3 150 159 135 44 182 Goldsboro, NC -1 184 Springfield, IL 186 151 173 147 -39 175 108 71 126 145 188 190 Elmira, NY 173 193 190 187 185 88 137 57 44 5 200 175 186 Charleston, WV 192 194 184 -11 190 24 51 112 126 193 4 187 Watertown-Fort Drum, NY 165 163 188 198 134 188 140 78 126 191 180 184 199 190 191 183 Parkersburg-Vienna, W V 52 133 85 82 -4 188 195 189 Springfield, OH 133 175 136 6 140 15 3 197 201 173 201 148 185 Waterloo-Cedar Falls, IA 162 -5 175 190 163 139 15 3 186 126 176 -14 177 191 Decatur, IL 154 187 183 166 141 186 187 151 82 7 199 Alexandria, L A 198 178 115 165 160 172 177 168 126 192 144 188 193 189 176 174 Danville, IL 194 156 113 82 -5 193 194 194 Casper, W Y 185 197 201 0 186 15 158 192 82 194 -9 195 Bloomington, IL 141 182 168 186 192 192 169 181 173 158 -33 163 196 Victoria, TX 195 185 197 133 196 163 118 162 173 -4 193 Fairbanks, AK 184 191 171 180 176 173 180 177 173 197 196 3 Pine Bluff, AR 188 200 129 198 165 189 198 200 173 201 -1 198 199 Weirton-Steubenville, W V-OH 196 195 170 186 185 123 179 178 173 200 -4 200 Houma-Thibodaux, L A 201 201 196 189 174 178 164 167 82 160 173 -1 200 201 Beckley, WV 160 199 194 201 184 141 196 COMPLETE RESULTS: 2018 BEST-PERFORMING SMALL CITIES 43

49 ENDNOTES 1. This report draws on text and methodology from previous editions of the Milken Institute’s Best-Performing Cities series. The latest 12-month job performance calculates the percentage change from the same month in the previous year 2. (e.g., the change in jobs from August 2017 to August 2018). The percentage change is a measure of recent momentum, capturing which metropolitan areas have improved their performance in recent months. Except in the case of the wage-related indicators, the annual growth rate measures the percentage change from calendar year 2016 to 2017. While the annual growth rate does not indicate whether high growth was achieved in the first or latter half of the year, the 12-month growth rate captures that aspect. Employment, wage, and gross metro product data are compiled from various government agencies, including the Bureau of Labor Statistics, the Bureau of Economic Analysis, and the U.S. Census Bureau. More detailed coverage on individual sectors is derived from Moody’s Analytics at economy.com. 3. University of California, Merced. “Merced 2020.” Accessed November 28, 2018. https://merced2020.ucmerced.edu/. Nichols, Thomas. “Moody’s Analytics’ Précis® U.S. Metro for Merced, CA.” Moody’s Analytics. July 2018. 4. 5. “Facts and Figures.” BYU News. Accessed October 13, 2018. https://news.byu.edu/byu-numbers. Raymond, Art. “Utah-Based Domo on the Rebound After a Rough Run-Up to Its IPO.” , September 10, 6. Deseret News 2018. https://www.deseretnews.com/article/900031147/domo-on-the-rebound-after-a-rough-run-up-to-its-ipo.html. 7. Bloomberg , November 11, 2018. Barkinka, Alex and Mark Milian. “How One Family Built $8 Billion Startup Far from Silicon Valley.” https://www.bloomberg.com/news/articles/2018-11-12/how-one-family-built-8-billion-startup-far-from-silicon-valley. 8. Neely, Karissa. “Podium Opens Large Headquarters in Lehi, Posts Significant Growth.” Daily Herald , August 17, 2018. https://www.heraldextra.com/business/local/podium-opens-large-headquarters-in-lehi-posts-significant-growth/article_ cdaccd2e-71f0-53ed-a03c-2d23ba8fa4cd.html. 9. “Inc. 5000 2018: Filtered List.” Inc. Accessed November 1, 2018. https://www.inc.com/inc5000/list/2018/state/ut. 10. Moody’s Economics, Cost of Living, (Index IUSA=100) for the Provo-Orem Metropolitan Statistical Area. 11. U.S. Census Bureau (BOC). “Population Estimates,” and Moody’s Analytics, “Calculated Population Estimates: Component of change - Total Net Migration, (Ths.).” 12. Pugmire, Genelle. “Provo Municipal Council names its top five priorities for next two years.” Daily Herald , August 30, 2018. https://www.heraldextra.com/news/local/central/provo/provo-municipal-council-names-its-top-five-priorities-for-next/ article_952680e7-9c82-58a3-9ccb-8514869ee214.html. 13. Pugmire, Genelle. “Provo’s new occupancy law now in effect.” Daily Herald , August 1, 2018. https://www.heraldextra.com/ news/local/central/provo/provo-s-new-occupancy-law-now-in-effect/article_7f3890c9-4e3a-56e2-82d0-5b7a6155bc51.html. 14. Neely, Karissa. “Utah Construction Industry Not Only Area Feeling the Pinch.” Daily Herald , September 2, 2018. https://www.heraldextra.com/business/local/utah-construction-industry-not-only-area-feeling-the-pinch/ article_0fe7de51-7131-5cee-85a3-4809a7654639.html. 15. Pugmire, Genelle. “Why Jobs Come to Provo, then Leave to Go Elsewhere.” Daily Herald , July 30, 2017. https://www.heraldextra.com/business/local/why-jobs-come-to-provo-then-leave-to-go-elsewhere/article_f91194b2-1588- 537b-832c-f3d5667feaa0.html. 16. Nielsen, Liesl. “Could Tech Company Entrata Become a Utah Unicorn?” KSL.com , June 14, 2017. https://www.ksl.com/?nid=1012&sid=44646297. 1 7. Davidson, Lee. “Feds Give $2.5M Loan to Provo for Airport Upgrades to Attract Jet Maintenance Company and Up to The Salt Lake Tribune , July 25, 2018. 800 New Jobs.” Darrow, Barb. “Here’s Why Cisco Is Paying Nearly $2 Billion for BroadSoft.” , October 24, 2017. Fortune 18. http://fortune.com/2017/10/24/cisco-buys-broadsoft/. Wolverton, Troy. “San Jose Gets New, Potentially Revolutionary Chip Fab.” The Mercury News , May 8, 2017. 19. https://www.mercurynews.com/2017/05/08/san-jose-gets-new-potentially-revolutionary-chip-fab/. 20. U.S. Bureau of Labor Statistics (BLS). “Current Employment Statistics (CES)” and “Quarterly Census of Employment and Wages (QCEW),” and Moody’s Analytics “Estimated Employment in high-wage jobs, (Ths. #, SA) for San Jose- Sunnyvale-Santa Clara, CA.” 21. U.S. Census Bureau (BOC). “Population Estimates,” and Moody’s Analytics, “Calculated Population Estimates: Component of change - Total Net Migration, (Ths.).” 22. Salinas, Sara. “Facebook Says It Needs to Address High-Priced Housing ‘If We’re Going to Remain a Company in Silicon Valley’.” CNBC, May 31, 2018. https://www.cnbc.com/2018/05/31/facebook-on-silicon-valley-housing-this-is-an-existential-issue.html. 23. DeRuy, Emily. “5 Things to Know About San Jose’s Rising Home Prices, Unemployment and More.” The Mercury News , October 10, 2018. https://www.mercurynews.com/2018/10/10/5-things-to-know-about-san-joses-rising-home-prices- unemployment-and-more/. 24. The Mercury Avalos, George. “Big Expansion: Adobe’s New Downtown San Jose Office Tower Would Rise 18 Stories.” News , August 17, 2018. https://www.mercurynews.com/2018/08/16/big-expansion-adobe-proposes-new-downtown-san- jose-office-tower/. 25. Luck, Marissa. “The Cloud Gets Bigger: Oracle Is ‘Accelerating’ Expansion of Its Austin Campus.” Austin Business Journal , September 28, 2018. https://www.bizjournals.com/austin/news/2018/09/28/the-cloud-gets-bigger-oracle-poised- to-greatly-add.html. , October 11, 26. Cronin, Mike. “Oracle Picks 6 Promising Austin Startups for First U.S. Accelerator.” Austin Business Journal 2018. https://www.bizjournals.com/austin/news/2018/10/11/oracle-picks-6-promising-austin-startups-for-first.html. BEST-PERFORMING CITIES 2018 44

50 27. “IRRIS Home.” Spotlight on Data | Institutional Reporting, Research, and Information Systems (IRRIS) | The University of Texas at Austin. Accessed October 13, 2018. https://reports.utexas.edu/. 28. The University of Texas at Austin, Office of Technology Commercialization. “FY2016 Metrics at a Glance.” https://research.utexas.edu/wp-content/uploads/sites/6/2018/02/OTC-FY16-Quick-Facts.pdf. Gwynne, Sam. “Dell’s Great Success Story.” Texas Monthly , February 7, 2013. 29. https://www.texasmonthly.com/the-culture/dells-great-success-story/. 30. Press release. “Samsung North America CEO Highlights Company’s Commitment to Texas.” Samsung Newsroom, June 28, 2018. https://news.samsung.com/us/samsung-north-america-ceo-highlights-companys-commitment-texas/. Salazar, Daniel. “Inside Austin’s Incentives Overhaul: Examining Pros, Cons of Shifting Focus to Smaller Businesses.” 31. , September 6, 2018. https://www.bizjournals.com/austin/news/2018/09/06/inside-austins- Austin Business Journal incentives-overhaul-examining-pros.html. 32. Sawers, Paul. “Pay-Per-Mile Car Insurance Company Metromile Raises $90 Million to Automate the Claims Process.” Venture Beat , July 24, 2018. https://venturebeat.com/2018/07/24/pay-per-mile-car-insurance-company-metromile-raises-90- million-to-automate-the-claims-process/. Fagan, Kevin. “SF Prop. C Homeless Tax — Measure to Raise $300 Million a Year Wins with 60%.” San Francisco Chronicle , 33. November 7, 2018. https://www.sfchronicle.com/politics/article/SF-Prop-C-homeless-tax-measure-to-raise-300-13369555.php. 34. Streitfeld, David. “Protesters Block Google Buses in San Francisco, Citing ‘Techsploitation’.” The New York Times , May 31, 2018. https://www.nytimes.com/2018/05/31/us/google-bus-protest.html. 35. Bluestein, Adam. “After A Comeback, 23andMe Faces Its Next Test.” Fast Company, August 9, 2017. https://www.fastcompany.com/40438376/after-a-comeback-23andme-faces-its-next-test. 36. Farley, Pete. “UCSF Receives $500M Commitment from Helen Diller Foundation to Begin Planning New Hospital.” UCSF Press Release, February 8, 2018. https://www.ucsf.edu/news/2018/02/409741/ucsf-receives-500m-commitment-helen-diller- foundation-begin-planning-new. 37. Repko, Melissa. “With New Irving Campus, Health Care Giant McKesson Looks to Add Almost 1,000 Employees.” The Dallas Morning News , April 2017. https://www.dallasnews.com/business/health-care/2017/04/05/new-irving-campus- healthcare-giant-mckesson-looks-add-almost-1000-employees. 38. Hoopfer, Evan. “Southwest Airlines Adds to Its Dallas Campus with Massive Facility.” Dallas Business Journal , April 4, 2018. https://www.bizjournals.com/dallas/news/2018/04/04/southwest-airlines-dallas-campus.html. 39. Womack, Brian. “AT&T’s Headquarters Will Feature a Massive Screen, Other Amenities.” Dallas Business Journal , May 21, 2018. https://www.bizjournals.com/dallas/news/2018/05/21/at-ts-headquarterswill-feature-a-massive-screen.html. 40. Brown, Steve “Liberty Mutual’s Towering Plano Regional Campus Is Almost Half Full.” The Dallas Morning News , May 24, 2018. https://www.dallasnews.com/business/real-estate/2018/05/24/liberty-mutuals-towering-plano-regional-campus- almost-half-full. 41. The Dallas Morning News , May O’Donnell, Paul. “State Farm’s Massive CityLine Campus Could Get Even More Workers.” 2017. https://www.dallasnews.com/business/business/2017/05/05/state-farms-massive-cityline-campus-geteven-workers. 42. The Dallas Morning Brown, Steve. “Amazon Lands in Southern Dallas County with Huge New Distribution Center” News , October 2017. https://www.dallasnews.com/business/real-estate/2017/10/06/amazon-lands-lancaster-huge-new- distribution-center. Morra, James. “Texas Instruments Signals Slowing Demand for Chips.” Electronic Design , October 24, 2018. 43. https://www.electronicdesign.com/analog/texas-instruments-signals-slowing-demand-chips. 44. Infosys Press Release , August 22, 2018. “Infosys Opens North Carolina Technology and Innovation Hub.” https://www.infosys.com/newsroom/press-releases/Pages/opens-technology-innovation-hub-nc.aspx. 45. CNBC , March 27, 2017. Associated Press, “’Bathroom bill’ to cost North Carolina $3.76 billion,” https://www.cnbc.com/2017/03/27/bathroom-bill-to-cost-north-carolina-376-billion.html. 46. Moody’s Analytics, August 2018, “Raleigh, NC,” Précis® U.S. Metro. 47. “Raleigh Startup Map.” Office of Economic Development of the City of Raleigh. Accessed November 27, 2018. https://openmaps.raleighnc.gov/startup-map/#. 48. Moody’s Analytics, August 2018, “Orlando-Kissimmee-Sanford, FL,” Précis® U.S. Metro. Santana, Marco. “UCF, Siemens Partner to Research How to Make Homes More Energy Efficient Through Smart Tech,” 49. , October 19, 2018. https://www.orlandosentinel.com/business/technology/os-bz-siemens-ucf-partner- Orlando Sentinel 20181019-story.html. “Global Attractions Attendance Report 2017,” Themed Entertainment Association (TEA) and the Economics practice at 50. AECOM, May 2017. http://www.teaconnect.org/images/files/TEA_268_653730_180517.pdf. 51. Moody’s Analytics, August 2018, “Seattle-Bellevue-Everett, WA,” Précis® U.S. Metro. 52. Soper, Taylor. “Trucking Startup Convoy Reaches $1B Valuation after Huge $185M Investment Led by Google VC Arm.” GeekWire , September 21, 2018. https://www.geekwire.com/2018/trucking-startup-convoy-reaches-1b-valuation-huge- 198m-investment-led-google-vc-arm/. Moody’s Analytics, August 2018, “Seattle-Bellevue-Everett, WA,” Précis® U.S. Metro. 53. 54. Ewalt, David M. “Reuters Top 100: World’s Most Innovative Universities-2018.” Reuters , October 10, 2018. https://www.reuters.com/innovative-universities-2018/profile?uid=5. 55. Tougaw, Ryan. “CSU must update old facilities or pay for it later.” The Rocky Mountain Collegian , August 28, 2018. https://collegian.com/2018/08/tougaw-csu-must-update-old-facilities-or-pay-for-it-later/. 56. Moody’s Analytics, August 2018, “Fort Collins, CO,” Précis® U.S. Metro. ENDNOTES 45

51 57. Ferrier, Pat. “Innosphere plans $18M expansion in Fort Collins, Denver.” , December 8, 2017. Coloradoan https://www.coloradoan.com/story/money/business/2017/12/08/innosphere-plans-18-m-expansion-fort-collins- denver/922755001/. 58. Ibid. Moody’s Analytics, August 2018, “Fort Collins, CO,” Précis® U.S. Metro. 59. 60. Ibid. Sisson, Patrick. “Salt Lake City, Downtown Booming, Brushes Off Conservative Image.” Curbed , March 20, 2018. 61. https://www.curbed.com/2018/3/20/17142760/salt-lake-city-downtown-development-hot-market. 62. “Lawmakers Fund Engineering Initiative.” University of Utah Engineering, March 10, 2017, accessed October 18, 2018. https://www.coe.utah.edu/2017/03/10/lawmakers-fund-engineering-initiative/. 63. The Salt Davidson, Lee. “First Phase of New $3.6 Billion Salt Lake City International Airport Reaching Halfway Mark.” Lake Tribune , August 1, 2018. https://www.sltrib.com/news/politics/2018/08/01/first-phase-new-billion/. 64. Ibid. 65. Davidson, Lee. “A Decade After the Big Delta-Northwest Merger, the Airline Says Its Salt Lake City Hub Has Prospered.” The Salt Lake City Tribune , October 25, 2018. https://www.sltrib.com/news/politics/2018/10/25/decade-after-big-delta/. 66. Carroll, Rory. “’All Humanity Has Left the Area: Paying for Tesla’s Gigafactory.” The Guardian , July 3, 2018. https://www.theguardian.com/cities/2018/jul/03/all-humanity-has-left-the-area-the-cities-paying-for-tesla-gigafactory. 67. Teslarati , October Alvarez, Simon. “Tesla Is Looking to Build Onsite Housing for Gigafactory 1 Employees, Says Elon Musk.” 11, 2018. https://www.teslarati.com/tesla-is-looking-to-build-on-site-housing-for-gigafactory-1-employees-says-elon-musk/. 68. Spillman, Benjamin. “Musk Plunges Tesla into Nevada’s Housing Crisis.” , October 12, 2018. Reno Gazette Journal https://www.rgj.com/story/news/2018/10/12/elon-musk-tesla-gigafactory-nevada-housing-crisis/1619609002/. 69. Alvarez, Simon. “Tesla Is Looking to Build Onsite Housing for Gigafactory 1 Employees, Says Elon Musk.” Teslarati , October 11, 2018. https://www.teslarati.com/tesla-is-looking-to-build-on-site-housing-for-gigafactory-1-employees-says-elon-musk/. 70. “Nevada’s Manufacturing Industry Continues to Grow; Students Tour Local Facility,” KTVN News, October 18, 2018. http://www.ktvn.com/story/39316517/nevadas-manufacturing-industry-continues-to-grow-students-tour-local-facility. 71. Ibid. 72. Holley, Don. “Booming Boise: Idaho City Is Growing at a Feverish Pace.” The Hill , April 24, 2018. https://thehill.com/opinion/finance/384630-booming-boise-idaho-city-is-growing-at-a-feverish-pace. 73. Oland, Dana. “Outside Investors Are Driving Growth in the Valley. ‘It Will Go on for the Next Few Years.’” Idaho Statesman , January 22, 2018. https://www.idahostatesman.com/news/business/business-insider/article195346584.html. 74. , December 17, 2016. Marfice, Christina. “10 Startups from Boise Showing Off Idaho’s Technology Prowess.” Geektime https://www.geektime.com/2016/12/17/10-startups-from-boise-showing-off-idahos-technology-prowess/. 75. Moody’s Analytics, August 2018, “Boise City, ID,” Précis® U.S. Metro. PYMNTS 76. , March 31, 2017. https://www. “Bank of America Investing $1.5M In Fintech Hub Efforts In Charlotte, NC.” pymnts.com/news/investment-tracker/2017/bank-of-america-investing-1-5m-in-fintech-hub-efforts-in-charlotte-nc-boa/. 77. Moody’s Analytics, August 2018, “Charlotte-Concord-Gastonia, NC-SC,” Précis® U.S. Metro. 78. Moody’s Analytics, August 2018, “Raleigh, NC,” Précis® U.S. Metro. “Bank of America Investing $1.5M In Fintech Hub Efforts In Charlotte, NC.” PYMNTS , March 31, 2017. https://www. 79. pymnts.com/news/investment-tracker/2017/bank-of-america-investing-1-5m-in-fintech-hub-efforts-in-charlotte-nc-boa/. Ibid. 80. Associated Press. “’Bathroom Bill’ to Cost North Carolina $3.76 Billion.” CNBC, March 27, 2017. 81. https://www.cnbc.com/2017/03/27/bathroom-bill-to-cost-north-carolina-376-billion.html. Bing, Jeb. “Pleasanton 2018: Soaring to New Highs.” Pleasanton Weekly , January 11, 2018. 82. https://www.pleasantonweekly.com/news/2018/01/11/pleasanton-2018-soaring-to-new-highs. 83. Cavitt, Mark. “Oakland County’s Economic Forecast Shows Job Growth, Talent Gap and Wage Increases.” The Oakland Press , April 27, 2018. https://www.theoaklandpress.com/news/nation-world-news/oakland-county-s-economic-forecast- shows-job-growth-talent-gap/article_06018c6f-e730-5f16-8797-3e4f79d9f187.html. 84. The Mercury News , June 4, 2018. Baron, Ethan. “Tesla Fails in Bid to Push Racism lawsuit into arbitration.” https://www.mercurynews.com/2018/06/04/tesla-fails-in-bid-to-push-racism-lawsuit-into-arbitration/. Moody’s Analytics, August 2018, “Oakland-Hayward-Berkeley, CA,” Précis® U.S. Metro. 85. 86. Global Ranking of Academic Subjects (GRAS) 2017. ShanghaiRanking, June 28, 2017, accessed October 24, 2018. http://www.shanghairanking.com/ShanghaiRankings-Global-Ranking-of-Academic-Subjects-2017-Press-Release.html. 87. Smith, Kevin. “Amazon Says It Invested $4.7 Billion in the Inland Empire.” Daily Bulletin , April 27, 2018. https://www.dailybulletin.com/2018/04/27/amazon-says-it-invested-4-7-billion-in-the-inland-empire/. Ibid. 88. 89. Calculated by the authors based on the data from Bureau of Labor Statistics and Moody’s Analytics. “Moody’s Analytics’ Précis® U.S. Metro for Charleston-North Charleston, SC.” Moody’s Analytics. August, 2018. 90. Bomey, Nathan. “Volvo’s CEO Hopes All Vehicle Tariffs Are Wiped Out, a Possible Win for Trump.” USA Today , June 20, 2018. https://www.usatoday.com/story/money/cars/2018/06/20/volvo-charleston-south-carolina-plant-hakan- samuelsson/717299002/. , March 6, 2015. 91. The Associated Press. “Daimler Announces $500M Expansion in North Charleston.” abc4 News https://abcnews4.com/news/business-news/daimler-expected-to-make-industrial-announcement-in-sc. BEST-PERFORMING CITIES 2018 46

52 92. Data for this metro are from U.S. Census Bureau (BOC): Population Estimates, Projections; Moody’s Analytics Estimated. The U.S. average is calculated based on the 2017 Population Estimates of the Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2017. The data for Median Family Income (USD) for Charleston-North Charleston, SC are from U.S. Census Bureau (BOC): 93. American Community Survey (ACS) - Table B19113 (Moody’s Mnemonic: ACSYFMMEDA.IUSA_MCHS). Data from Bureau of Labor Statistics and Moody’s Analytics. “Moody’s Analytics’ Précis® U.S. Metro for Atlanta-Sandy 94. Springs-Rosewell, GA.” August, 2018. 95. Tan, Huileng. “If You’re Surprised that Atlanta Has the Busiest Airport on Earth, You’re not Alone.” CNBC, December 19, 2017. https://www.cnbc.com/2017/12/19/why-the-atlanta-airport-the-busiest-in-the-world.html. 96. Data from Bureau of Labor Statistics and Moody’s Analytics. “Moody’s Analytics’ Précis® U.S. Metro for Atlanta-Sandy Springs-Rosewell, GA.” August, 2018. Atlanta Business Chronicle , August 6, 2018. 97. “Atlanta Is Becoming the High-Tech Hub Other Cities Dream About.” https://www.bizjournals.com/atlanta/news/2018/08/06/atlanta-is-becoming-the-high-tech-hub-other-cities.html. 98. Sweeney, Cynthia. “Sonoma County’s Organic, Artisanal Food Future Looks Bright.” North Bay Business Journal , February 14, 2017. https://www.northbaybusinessjournal.com/northbay/sonomacounty/6639440-181/sonoma-organic- artisanal-food-manufacturing. 99. Calculated by the authors based on the data from the Bureau of Labor Statistics and Moody’s Analytics; “Moody’s Analytics’ Précis® U.S. Metro for Santa Rosa, CA.” July 2018. Sulek, Julia Prodis. “One Year After Tubbs Fire, Coffey Park Coalesces, Fountaingrove Struggles to Rebuild.” 100. The Mercury News , October 8, 2018. https://www.mercurynews.com/2018/10/07/one-year-after-tubbs-fire-coffey-park-coalesces- around-neighborhoods-rebirth/. Data from U.S. Census Bureau (BOC): Form C-404; Moody’s Analytics Estimated. 101. 102. Data from the Bureau of Labor Statistics and Moody’s Analytics; “Moody’s Analytics’ Précis® U.S. Metro for Olympia- Tumwater, WA.” July 2018. 103. Data are from the U.S. Census Bureau (BOC): Population Estimates, Projections; Moody’s Analytics Estimated. U.S. Census Bureau, ACS, and Moody’s Analytics; “Moody’s Analytics’ Précis® U.S. Metro for Olympia-Tumwater, WA.” 104. July 2018. 105. Calculated by the authors based on the data from the IRS, Census Bureau, and Moody’s Analytics; “Moody’s Analytics’ Précis® U.S. Metro for Olympia-Tumwater, WA.” July 2018. 106. Wiles, Russ. “Bank of the West Unveils Major Tempe Office, Plans Up to 1,000 Jobs.” azcentral , October 6, 2017. https://www.azcentral.com/story/money/business/jobs/2017/10/06/bank-west-unveils-major-tempe-office-plans-up-1-000- jobs/737085001/. 107. Intel Newsroom. “Intel Supports American Innovation with $7 Billion Investment in Next-Generation Semiconductor Factory in Arizona.” February 8, 2017. https://newsroom.intel.com/news-releases/intel-supports-american-innovation-7- billion-investment-next-generation-semiconductor-factory-arizona/. Wiles, Russ. “Fortune 500 Tech-Services Firm Cognizant Announces Mesa Expansion, Hiring 500.” azcentral 108. , August 10, 2018. https://www.azcentral.com/story/money/business/jobs/2018/08/10/technology-services-company-cognizant- expanding-mesa-500-jobs/940721002/. 109. Calculated by the authors based on data from the Bureau of Labor Statistics and Moody’s Analytics; “Moody’s Analytics’ Précis® U.S. Metro for Phoenix-Mesa-Scottsdale, AZ.” August 2018. 110. Arizona State University, “Phoenix City Council approves $13.5 million investment for downtown ASU expansion.” https://asunow.asu.edu/content/phoenix-city-council-approves-135-million-investment-downtown-asu-expansion. 111. Hill Air Force Base. “Hill Releases 2017 Economic Impact.” January 24, 2018. https://www.hill.af.mil/News/Article-Display/Article/1422592/hill-releases-2017-economic-impact/. 112. Data from the Bureau of Labor Statistics and Moody’s Analytics; “Moody’s Analytics’ Précis® U.S. Metro for Odgen- Clearfield, UT.” July 2018. 113. Utah Governor’s Office of Economic Development. “Parker Hannifin to Move Additional Repair Operations to Utah.” January 11, 2018. https://business.utah.gov/news/parker-hannifin-move-additional-repair-operations-utah/. 114. Calculated by the authors based on the data from the Bureau of Labor Statistics and Moody’s Analytics; “Moody’s Analytics’ Précis® U.S. Metro for Odgen-Clearfield, UT.” July 2018. 115. McCann, Adam. “2018’s Best & Worst Small Cities to Start a Business.” , April 16, 2018. Wallet Hub https://wallethub.com/edu/best-small-cities-to-start-a-business/20180/. 116. Calculated by the authors based on the data from the Bureau of Labor Statistics and Moody’s Analytics; “Moody’s Analytics’ Précis® U.S. Metro for North Port-Sarasota-Bradenton, FL.” August 2018. 11 7. Sarasota County. “Atlanta Braves Spring Training Site Construction.” September 21, 2018. https://www.scgov.net/government/economic-development/links-of-interest/atlanta-braves-spring-training#ad-image-2. 118. Census Bureau and Moody’s Analytics; “Moody’s Analytics’ Précis® U.S. Metro for North Port-Sarasoto, FL.” August 2018. 119. Herald-Tribune , March 12, 2018. Hielscher, John. “Which Are the Biggest Sarasota-Manatee Manufacturing Operations?” https://www.heraldtribune.com/news/20180312/which-are-biggest-sarasota-manatee-manufacturing-operations. 120. Chen, Jess. “Future Job Automation to Hit Hardest in Low Wage Metropolitan Areas Like Las Vegas, Orlando and Riverside-San Bernadine.” ISEA Publish , May 3, 2017. https://www.iseapublish.com/index.php/2017/05/03/future-job- automation-to-hit-hardest-in-low-wage-metropolitan-areas-like-las-vegas-orlando-and-riverside-san-bernardino/. Las Vegas Review-Journal 121. Marroquin, Art. “Las Vegas Airport Sets Record with 48.5M Passengers in 2017.” , January 22, 2018. https://www.reviewjournal.com/business/tourism/las-vegas-airport-sets-record-with-48-5m-passengers-in-2017/. ENDNOTES 47

53 122. “Amazon Creates 1,000 Jobs with New Facility in North Las Vegas.” fox5vegas.com, April 4, 2018. https://www.fox5vegas.com/news/amazon-creates-jobs-with-new-facility-in-north-las-vegas/video_c132576d-dea8-5c52-9ff6- 79548896fa69.html. LasVegasNOW.com , July 12, 2018. 123. Manna, Orko. “Sephora Opening Distribution Center in North Las Vegas.” https://www.lasvegasnow.com/news/sephora-opening-distribution-center-in-north-las-vegas/1299245312. Sauter, Michael B. “Population migration patterns: US cities we are flocking to.” , October 4, 2018. 124. USA Today https://www.usatoday.com/story/money/economy/2018/07/05/cities-americans-growing-population-migration/35801343/. 125. Census Bureau, ACS, and Moody’s Analytics; “Moody’s Analytics’ Précis® U.S. Metro for Las Vegas-Henderson-Paradise, NV.” July 2018. The Denver 126. Chuang, Tamara. “Washington Insurance Technology Firm Moving HQ to Denver and Plans to Hire 300 Workers.” , May 22, 2017. https://www.denverpost.com/2017/05/22/vertafore-moving-headquarters-denver/. Post 127. Chuang, Tamara. “Silicon Valley’s Marketo Plants Office in Denver to Help Develop Marketing Messages People Want to Hear.” , January 3, 2018. https://www.denverpost.com/2018/01/03/silicon-valley-marketo-denver/. The Denver Post 128. The Denver Post , March Chuang, Tamara. “Facebook Confirms It’s Expanding in Denver But Says No Lease Has Been Signed.” 13, 2018. https://www.denverpost.com/2018/03/13/facebook-denver-expansion/. Svaldi, Aldo. “Slack Says It Will Open Denver Office After Receiving $10.6 Million in State Economic Incentives.” 129. The Denver Post , May 17, 2018. https://www.denverpost.com/2018/05/17/slack-headquarters-denver-incentives/. Chuang, Tamara. “Building the Stanford of Denver at the Speed of an Entrepreneur.” The Denver Pos 130. t, March 26, 2016. https://www.denverpost.com/2016/03/26/building-the-stanford-of-denver-at-the-speed-of-an-entrepreneur/. Unemployment Rate (%, SA) for Nashville-Davidson-Murfreesboro-Franklin, TN is derived from the Bureau of Labor Statistics 131. (BLS): Local Area Unemployment Statistics (LAUS); Moody’s Analytics Adjusted. Kotkin, Joel and Michael Shires. “The Cities Creating the Most High-Wage Jobs.” Forbes , June 26, 2017. 132. https://www.forbes.com/sites/joelkotkin/2017/06/26/the-cities-that-are-creating-the-most-high-wage-jobs/#127499d54e9e. McGee, Jamie. “Philips to Bring 800 New Jobs to Nashville Area.” 133. , August 24, 2017. Tennessean https://www.tennessean.com/story/money/2017/08/24/philips-bring-800-new-jobs-nashville-area/597650001/. 134. Vanderbilt University. “Vanderbilt Injects $9.5 Billion into Tennessee Economy, Report Says.” , March 27, 2017. Vanderbilt News https://news.vanderbilt.edu/2017/03/27/vanderbilt-injects-9-5-billion-into-tennessee-economy/. 135. Stefanini, Melissa and Lydia McCoy. “Census: Nashville Continues to Lead State’s Population Growth.” The University of Tennessee, Knoxville News , March 22, 2018. https://news.utk.edu/2018/03/22/census-nashville-continues-to-lead-states- population-growth/. 136. KTVZ COM news sources. “Redmond Airport Gets $5.2 Million Expansion Grant.” KTVZ, August 23, 2018. https://www.ktvz.com/news/redmond-airport-gets-52-million-expansion-grant/784893252. 137. KTVZ COM news sources. “OSU-Cascades Class of 2018 Totals 368 Graduates,” KTVZ, June 11, 2018. https://www.ktvz.com/news/osu-cascades-class-of-2018-totals-368-graduates/751819590. Matsiras, Paul. “Bend-Redmond, OR.” Metro-Précis, Moody’s Analytics, October 07, 2018. 138. 139. The Bulletin , September 25, 2018. McLaughlin, Kathleen. “Snoop Dogg’s Venture Fund Invests in Bend Startup.” http://www.bendbulletin.com/business/6547158-151/snoop-doggs-venture-fund-invests-in-bend-startup. McLaughlin, Kathleen. “Venture Capitalists’ Gift Supports Computer Science at OSU-Cascades.” 140. , October 19, The Bulletin 2018. http://www.bendbulletin.com/business/6608378-151/venture-capitalists-gift-supports-computer-science-at-osu-cascades. Portland Business Journal “Bend’s Early-Stage Backers Seven Peaks Ventures Close $28M Fund.” , September 13, 2018. https://www.bizjournals.com/portland/news/2018/09/13/bends-early-stage-backers-close-28m-fund.html. 141. Matsiras, Paul. “Bend-Redmond, OR.” Metro-Précis, Moody’s Analytics, October 7, 2018. 142. Ibid. 143. Ibid. 144. Ibid. 145. Ibid. Ibid. 146. “NPS: Utah National Parks, Monuments a $1 Billion-Plus Economic Powerhouse.” The Spectrum & Daily News , April 26, 2018. 147. https://www.thespectrum.com/story/news/2018/04/26/nps-zion-bryce-rest-utah-national-parks-and-monuments-worth-1- 7-billion-economy/554035002/. “Local Leaders Stand for Ovation at New 300-Unit Senior Living Campus Groundbreaking.” St George News , September 28, 2018. 148. https://www.stgeorgeutah.com/news/archive/2018/09/29/ajp-local-leaders-stand-for-ovation-at-new-300-unit-senior- living-campus-groundbreaking/. 149. “Construction Starts on $40 Million ‘City View’ Downtown Project.” The Spectrum & Daily News , December 20, 2017. https://www.thespectrum.com/story/news/2017/12/20/construction-starts-40-million-city-view-downtown- project/969927001/. 150. “Dixie Regional Medical Center to Hold Grand Opening Celebration, Concert Featuring the Piano Guys.” St George News , August 17, 2018. https://www.stgeorgeutah.com/news/archive/2018/08/17/mks-spc-dixie-regional-medical-center-to-hold- grand-opening-celebration-concert-featuring-the-piano-guys/. 151. Raymond, Art. “Ridge Overlooking St. George Poised to Become Mini-Mecca of Tech Companies.” Deseret News , February 19, 2018. https://www.deseretnews.com/article/900010796/ridge-overlooking-st-george-poised-to-become-mini-mecca-of-tech- companies.html. “Spread the Word: PrinterLogic Is No. 317 on the Inc. 5000 This Year!” Inc. Accessed November 28, 2018. https://www.inc.com/profile/printerlogic. BEST-PERFORMING CITIES 2018 48

54 152. “Opportunity Zones Resources.” U.S. Department of the Treasury CDFI Fund. Accessed October 30, 2018. https://www.cdfifund.gov/Pages/Opportunity-Zones.aspx. 153. Kuranova, Olga. ”Gainesville, GA.” Metro-Précis, Moody’s Analytics, September 30, 2018. 154. Ibid. 155. Bowman, Nick. “Completed Ga. 365 Sewer Lines Make Way for More Growth.” Gainesville Times , March 27, 2018. https://www.gainesvilletimes.com/news/completed-ga-365-sewer-lines-make-way-more-growth/. 156. “Elastron to Launch $10 Million TPE Manufacturing Plant in Gainesville, US.” Plastics Insight, May 15, 2018. https://www.plasticsinsight.com/elastron-to-launch-10-million-tpe-manufacturing-plant-in-gainesville-us/. Williams, Trevor. “Dutch Firm Picks Hall County for $17 Million Factory.” 157. , June 13, 2018. Global Atlanta https://www.globalatlanta.com/dutch-firm-picks-hall-county-for-17-million-factory/. Bluestein, Greg. “Deal Cements Hometown Legacy with Sparkling New Hall County Campus.” Politically Georgi a, 158. October 19, 2018. https://politics.myajc.com/blog/politics/deal-cements-hometown-legacy-with-sparkling-new-hall- county-campus/haVJhZUJgeGYBkWsWYkxlI/. 159. Bolton, Phil. “Kubota’s $1 Million Gift to Lanier Technical College to Provide State-of-the-Art Equipment.” Global Atlanta , May 17, 2018. https://www.globalatlanta.com/kubotas-1million-gift-to-lanier-technical-college-to-provide-state-of-the-art- equipment/. 160. Muresan, Adela. “Elkhart-Goshen, IN.” Metro-Précis, Moody’s Analytics, July 29, 2018. Ibid. 161. Zacks Equity Research. “Thor (THO) to Acquire Erwin Hymer Group for $2.5 Billion.” Nasdaq, September 19, 2018. 162. https://www.nasdaq.com/article/thor-tho-to-acquire-erwin-hymer-group-for-25-billion-cm1024982. 163. Patrick Industries Inc. “Patrick Industries, Inc. Completes Acquisition of Dehco, Inc.” Cision PR Newswire, April 30, 2018. https://www.prnewswire.com/news-releases/patrick-industries-inc-completes-acquisition-of-dehco-inc-300638884.html. Patrick Industries Inc. “Patrick Industries, Inc. Completes Acquisition of Indiana Marine Products Holdings.” Cision PR Newswire, March 5, 2018. https://www.prnewswire.com/news-releases/patrick-industries-inc-completes-acquisition- of-indiana-marine-products-holdings-300608007.html. Parker, Reed. “Patrick Completes Purchase of Indiana Marine Products.” Inside Indiana Business , March 5, 2018. http://www.insideindianabusiness.com/story/37647906/patrick- completes-purchase-of-indiana-marine-products. Brown, Alex. “Elkhart Institute to Address RV Technician Shortage.” Inside Indiana Business , July 5, 2018. 164. http://www.insideindianabusiness.com/story/38582572/elkhart-institute-to-address-rv-technician-shortage. 165. Ambrose, Aimee. “Labor Shortage Hammers Builders amid Housing Demand.” Goshen News , October 6, 2018. https://www.goshennews.com/news/local_news/labor-shortage-hammers-builders-amid-housing-demand/ article_2271a3a8-638e-5d4c-b206-0193408e0643.html. Inside Indiana Business 166. Brown, Alex. “Skyline, Champion Merger Complete.” , June 4, 2018. http://www.insideindianabusiness.com/story/38342429/skyline-champion-merger-complete. 167. Peterson, Mark. “$175M Medical Campus Project Planned for Elkhart.” WNDU16, April 16, 2018. https://www.wndu.com/content/news/175-m-medical-campus-project-planned-for-Elkhart-479919523.html. McGowan, Dan. “Vision For $300M Elkhart River District Coming Together.” , April 16, 2018. Inside Indiana Business 168. http://www.insideindianabusiness.com/story/38860823/vision-for-300m-elkhart-river-district-coming-together. 169. “Coeur d’Alene, ID.” Data USA. Accessed October 25, 2018. https://datausa.io/profile/geo/coeur-d’alene-id/#housing. Post Falls Press , September 24, 2018. Kennedy, Mike. “Internet Contract Represents Big Win for All of North Idaho.” 170. https://www.cdapress.com/north_idaho_business_journal/20180924/internet_contract_representsbig_win_for_all_of_north_idaho. Muresan, Adela. “Coeur d’Alene, ID,” Metro-Précis, Moody’s Analytics, September 13, 2018. 171. Ibid. 172. McLean, Mike. “Innovation Collective Brings Coeur d’Alene Edifice to Life.” Spokane Journal of Business , May 11, 2018. 173. https://www.spokanejournal.com/local-news/innovation-collective-brings-coeur-dalene-edifice-to-life/. Rogers, Rob. “First Interstate Bank Buys 2 Idaho-Based Banks.” Montana Standard , October 11, 2018. https://mtstandard. 174. com/news/state-and-regional/montana/first-interstate-bank-buys-idaho-based-banks/article_80be71f0-fbb3-5162-be24- addb54a2a772.html. Peone, Samantha. “Idaho Central Credit Union to Build Second Facility in Cd’A.” Spokane Journal of Business , April 26, 2018. https://www.spokanejournal.com/local-news/idaho-central-credit-union-to-build-second-facility-in-cda/. Muresan, Adela. “San Rafael, CA,” Metro-Précis, Moody’s Analytics, August 27, 2018. 175. Ibid. 176. Ibid. 177. Ibid. 178. 179. CleanFund Commercial PACE Capital, Inc. “CleanFund’s C-PACE Financing Enables Seagate Properties to Make Energy Improvements on Suburban Office Buildings.” Cision PR Newswire, April 26, 2018. https://www.prnewswire.com/news- releases/cleanfunds-c-pace-financing-enables-seagate-properties-to-make-energy-improvements-on-suburban-office- buildings-300644087.html. Roth, Sammy. “California Bill Would Require More Solar, Wind and Geothermal—Possibly at the Salton Sea.” Desert Sun , 180. August 21, 2018. https://www.desertsun.com/story/tech/science/energy/2018/08/21/california-energy-bill-would-require- more-solar-wind-and-geothermal/1052396002/. 181. Davis, Aaron. “New 10.5 Megawatt Solar Farm Opens on Site of Former Chevron Landfill in Richmond.” East Bay Times , April 18, 2018. https://www.eastbaytimes.com/2018/04/18/new-10-5-megawatt-solar-farm-opens-on-site-of-former- chevron-landfill-in-richmond/. , May 20, 2018. 182. Mann, Damian. “Local Pot Industry Surpasses Wine.” Mail Tribune http://mailtribune.com/news/top-stories/local-pot-industry-surpasses-wine. ENDNOTES 49

55 183. Kuranova, Olga. “Medford, OR,” Metro-Précis, Moody’s Analytics, August 29, 2018. Ibid. 184. Medford Transcript , 185. Willson, Miranda. “Ambulatory Center, Outpatient Services Proposed for Lawrence Memorial.” August 20, 2018. http://medford.wickedlocal.com/news/20180820/ambulatory-center-outpatient-services-proposed-for- lawrence-memorial. 186. “State Awards Over $2.2 Million to Central Point Affordable Housing Development.” KDRV News, August 9, 2018. https://www.kdrv.com/content/news/State-Awards-Over-22-Million-to-Central-Point-Affordable-Housing- Development-490512811.html. 187. Kuranova, Olga. ”Medford, OR,” Metro-Précis, Moody’s Analytics, August 29, 2018. Ibid. 188. Mann, Damian. “Medford-Area Renters Struggle with Steep Rent Hikes.” 189. , December 8, 2017. U.S. News & World Report https://www.usnews.com/news/best-states/oregon/articles/2017-12-08/medford-area-renters-struggle-with-steep-rent-hikes. 190. Kolliner, Kimberly. “Medford Has the Green Light on a 20-Year Growth Plan.” KTVL, June 13, 2018. http://ktvl.com/news/local/medford-has-the-green-light-on-a-20-year-growth-plan. Hysa, Llir. “Atlanta-Sandy Springs-Roswell, GA,” Metro-Précis, Moody’s Analytics, September 10, 2018. 191. 192. ArunA Bio. “ArunA Bio Raises $5.3 Million to Fuel Growth and Innovation for Its Neural Exosome Therapeutic Platform.” Business Wire, September 27, 2018. https://www.businesswire.com/news/home/20180927005452/en/ArunA-Bio-Raises- 5.3-Million-Fuel-Growth. 193. Amodeo, Kellyn. “UGA to Support Athens Youth through Career Development Partnership.” UGA Today , August 21, 2017. https://news.uga.edu/youth-career-development-partnership/. Ibid. 194. 195. Thompson, Jim. “Lockheed Martin Defends F-35 during Program at Athens Manufacturer.” Athens Banner , August 21, 2017. http://www.onlineathens.com/local-news/national-news/2017-04-18/lockheed-martin-defends-f-35-during-program- athens-manufacturer. 196. Holland, Maggie. “Creature Comforts Opens Second Facility, Increases Beer Production.” The Red and Black , June 12, 2018. https://www.redandblack.com/culture/creature-comforts-opens-second-facility-increases-beer-production/ article_7c1ee82e-6e78-11e8-88ea-57cbb624ecc9.html. 197. Shearer, Lee. “Mixed-Used Development Proposed for General Time Buildings.” Online Athens Banner-Herald , April 26, 2018. http://www.onlineathens.com/news/20180426/mixed-used-development-proposed-for-general-time-buildings. 198. Aued, Blake. “Big Mixed-Use Development Planned for Former Athens Clock Factory.” flagpole , April 13, 2018. https://flagpole.com/news/in-the-loop/big-mixed-use-development-planned-for-former-athens-clock-factory. 199. Kuranova, Olga. ”Albany, OR,” Metro-Précis, Moody’s Analytics, September 13, 2018. 200. Moody, Jennifer. “Albany Plans $13 Million Sewer Project.” , April 13, 2018. Albany Democrat Herald https://democratherald.com/news/local/albany-plans-million-sewer-project/article_645fd132-6ba8-58e5-a119- 0817e565a04d.html. Kuranova, Olga. ”Albany, OR,” Metro-Précis, Moody’s Analytics, September 13, 2018. 201. 202. Paul, Alex. “County Loans to Assist with Radiator Supply House Expansion.” Albany Democrat Herald , August 23, 2018. https://democratherald.com/news/county-loans-to-assist-with-radiator-supply-house-expansion/article_d04a7dac-269c- 583c-ad6e-ed30881be583.html. Paul, Alex. “AMEDC, Commissioners OK $400,000 Mill Site Grant.” Albany Democrat Herald , August 31, 2018. https:// 203. democratherald.com/news/amedc-commissioners-ok-mill-site-grant/article_d641333e-2838-533b-b246-7ca5e867a96f.html. 204. Emerald Media , August 25, 2018. https://www. Lewis, Franklin. “Local Startup AlgoteK Creates Dissolving Plastic.” dailyemerald.com/2018/08/25/local-startup-algotek-creates-dissolving-plastic/. Bradford, Michaelle. “Panolam Sells Albany, Oregon Assets to Arauco.” Woodworking Network, July 23, 2018. https://www.woodworkingnetwork.com/news/ woodworking-industry-news/panolam-sells-albany-oregon-assets-arauco. Spencer, Malia. “Oregon Company Agility Robotics Lands $8M Led by Playground Global.” Portland Business Journal , March 22, 2018. https://www.bizjournals. com/portland/news/2018/03/22/oregon-robotics-company-lands-8m.html. 205. Cortez, Marjorie. “Regents OK $1.8 Million Barn for USU’s Growing Equine Programs, Veterinary School.” Deseret News , July 26, 2018. https://www.deseretnews.com/article/900026070/regents-ok-dollar18-million-barn-for-usus-growing- equine-programs-veterinary-school.html. Opsahl, Kevin. “Inovar Unveils New Headquarters on USU Innovation Campus.” , August 14, 2018. 206. The Herald Journal https://www.hjnews.com/news/business/inovar-unveils-new-headquarters-on-usu-innovation-campus/article_0af25b64- 9eaf-5c77-bf69-9def01a7bf02.html. 207. The Herald Journal , Gefre, Clayton. “Logan Regional Hospital Expands Surgical Services with New Robotic System.” July 28, 2018. https://www.hjnews.com/allaccess/logan-regional-hospital-expands-surgical-services-with-new-robotic- system/article_8d5d9435-70f7-54f0-ac08-6be7a44e7990.html. 208. Shield, Steven. “Logan, UT,” Metro-Précis, Moody’s Analytics, August 23, 2018. 209. Ibid. 210. Dolan, Sean. “Electric Power Systems Announces Expansion to Logan.” The Herald Journal , May 13, 2018. https://www.hjnews.com/allaccess/electric-power-systems-announces-expansion-to-logan/article_50f047b7-e4f8-5307- 9025-db131da33f82.html. 211. “GE Increases Cell Culture Media Production Capacity by Tenfold.” Cell Science from Technology Networks, May 17, 2018. https://www.technologynetworks.com/cell-science/news/ge-increases-cell-culture-media-production-capacity-by-tenfold-303014. “Opportunity Zones Resources.” U.S. Department of the Treasury CDFI Fund. Accessed October 30, 2018. 212. https://www.cdfifund.gov/Pages/Opportunity-Zones.aspx. BEST-PERFORMING CITIES 2018 50

56 ABOUT THE AUTHORS JESSICA JACKSON is a senior research analyst in regional economics at the Milken Institute, conducting research on human capital, innovation, entrepreneurship, and competitiveness. Jackson’s previous work includes the “A Hollywood Update: Changes and Transformations in Hollywood Since the Passage of the 2014 California Filmed Production Incentive,” “Best- Performing Cities 2017: Where America’s Jobs are Created and Sustained,” “Best-Performing Cities Europe,” “New Skills at Work: Keeping Los Angeles at the Cutting Edge in an Evolving Industry,” “Hollywood’s Diversity Problem: It’s Not Just Actors,” “Regional Performance Over Time Case Study: The Bend-Redmond, Ore. Metropolitan Statistical Area,” and “Best-Performing Cities China 2016.” Prior to joining the Institute, Jackson was a teaching fellow at the University of North Texas, teaching courses in macroeconomics. She holds bachelor’s degrees in economics and history from the University of North Texas, where she also earned a master’s degree in economics focusing on applied econometrics. JOE LEE is a research analyst with the Milken Institute on the regional economics team. He specializes in labor economics with a focus in human capital and regional competitiveness. At the Milken Institute, Lee has focused on how the U.S. has been impacted by changes in technology, geography, and opportunity. Lee’s work has contributed to the Center for Regional Economics research on how human capital develops regional economic clusters in the U.S. He has a focus on commercialization of R&D, the development of local labor, and geographic mobility. He recently presented research at the 2018 Western Economic Association International conference where he showcased work on academic research and development of local high-tech labor. Lee received his master’s in economics from California State University, Long Beach, and his undergraduate degree is from The Evergreen State College. MICHAEL C.Y. LIN is a senior associate in regional economics at the Milken Institute. His current research focuses on urban and regional economic development in Asia and the United States. Prior to joining the Institute, Lin was a teaching associate at the University of Southern California (USC) focusing on quantitative methods and analysis. Dr. Lin’s articles have been published in such academic outlets as the Annals of Regional Science , and he has published two book chapters about community planning and shrinking cities. He was also involved in writing several reports on green buildings, informal housing, sustainable community development, and urban and regional economic development. He has also participated in peer reviews for academic journal articles. Lin holds a bachelor’s degree in architecture and a master’s degree in urban design, both from the National Taipei University of Technology in Taiwan, and a Ph.D. in policy, planning, and development with a specialization in urban economics from USC. 51

57 MINOLI RATNATUNGA is an economist and the director of regional economics research at the Milken Institute Center for Regional Economics. With her team, she investigates the key economic development issues facing regions, including competitiveness, fostering innovation and entrepreneurship, and building human capital. Ratnatunga’s publications include “Concept to Commercialization: The Best Universities for Technology Transfer,” “Building a Knowledge Economy—How Academic R&D Supports High- Tech Employment,” “Regional Performance Over Time: Thriving and Reviving Amid Economic Challenges,” and “California’s Innovation-Based Economy: Policies to Maintain and Enhance It.” She has also coauthored multiple editions of the State Technology and Science Index and the Best-Performing Cities series. Before joining the Institute, she worked for eight years at the Allegheny Conference on Community Development, a regional economic development organization focused on the Pittsburgh area’s competitiveness and quality of life. There she focused her research on energy policy, transportation and infrastructure funding, and state tax competitiveness, working with civic and business leaders to help key decision-makers make better policy choices. Ratnatunga has a bachelor’s degree in philosophy and economics from the London School of Economics and a master’s degree in public policy and management from Carnegie Mellon University. BEST-PERFORMING CITIES 2018 52

58 NEW YORK SANTA MONICA WASHINGTON | | | LONDON | SINGAPORE

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