Forbes ranks Boise No. 2 for businesses- Spokane is 100th- Seattle 89th

Surprise, Boise!

Even through layoffs, a war and the struggling economy, the Boise area on Thursday was named the second best place in the country for business and careers by Forbes Magazine.

Julie Howard
The Idaho Statesman

Boise isn´t new to this list, ranking sixth last year and as high as fifth in 2000.

But coming in just behind dynamic Austin, Texas — a metropolitan area with a population of 1.3 million — was reason for local leaders to celebrate.

“It´s a surprise, a pleasant surprise,” said Shirl Boyce, vice president of the Boise Metro Economic Development Council. “Yes, indeed, we have been affected by a downturn in the economy, but we haven´t been affected as much as some other areas.”

And Boyce certainly will be sure to pass the message on — especially to executives from a firm that will be visiting the Treasure Valley next week seeking a new location for their 500-employee technology firm.

“There´s a lot of competition for this kind of stuff,” said Boyce, who declined to name the firm. “This ranking sends a signal that this is a pretty good place to be. So, it´s something we´ll mention.”

The magazine´s fifth annual survey acknowledged the troubled economy by giving special attention to the cost of doing business, an area where Boise ranked high.

For the first time, the survey also included factors such as crime rates and housing costs.

Forbes did not disclose how those factors affected the rankings. The list included 150 U.S. metropolitan areas.

“With costs 14 percent below the national average, Boise has been able to attract and keep tech titans Micron Technology and Hewlett-Packard,” said the report, which showed the Treasure Valley with a 3.3 percent job growth and a 2.9 percent income growth since the previous year. “The tight labor supply has loosened over the past three years, with unemployment jumping to 5.8 percent from 3.3 percent.”

The Boise area has a tremendous draw for businesses and workers, said Ed Zimmer, president and CEO of ECCO, an electronics firm that has been in the valley since 1972.

“If we were located near most of our customers, we´d be in Peoria, Ill.,” Zimmer said.

“We´re here because of the lifestyle,” he said. “This is where we wanted to be and where we wanted to raise our families. Our employees are paid according to industry standards, and they can get a better lifestyle here and better recreational opportunities.”

To offer story ideas or comments, contact Julie Howard
[email protected] or 373-6618

http://www.idahostatesman.com/Business/story.asp?ID=39358

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Spokane ranked 100th for business climate
Magazine puts Seattle at 89th while Boise moves up to No. 2

Tom Sowa
Staff writer Spokesman Review

Forbes magazine’s annual survey of cities ranked Spokane at No. 100 this year, a drop of two spots from 2002.

The survey attempts to measure the nation’s top 150 metros according to affordability, job growth and cost of doing business.

This year’s top city is Austin, Texas, according to the magazine.

At No. 2 is Boise, which soared from its 6th-place ranking last year.

Seattle rose slightly from 92 last year to 89 this year, according to the magazine’s Web site.

Tacoma, the only other Washington city in the group of 150, fell from 102 to 135.

Portland, ranked 55th last year, fell to 68th this year.

The annual Forbes rankings produce varied reactions; some economic development officials feel they don’t account for the key components of a city’s growth or prosperity. Others contend the rankings rely on solid data and apply the same formula for all 150 U.S. metros surveyed.

"The main reaction I have is relief that we didn’t drop another 25 spots," said Avista Corp. chief economist Randy Barcus.

The area’s economy has clearly been struggling, Barcus said, with numerous layoffs and reductions in key industries.

Spokane didn’t drop more than two places in the survey due in part to a generally stable and diverse economy compared with other parts of the country, Barcus added.

Researcher Perry Wong, who is an economist for the Milken Institute of California, and who collaborated on research for the rankings, agreed.

"Compared to other cities, Spokane didn’t really do as bad. It sort of held up OK," Wong said.

Spokane’s worst ranking came in 1999 — the first year of the survey — when it ranked 161st out of 162 cities. After that year, the survey was divided into large and small cities.

Last year’s ranking of 98 was Spokane’s best effort.

The other top 10 cities in this year’s survey are: Raleigh-Durham, N.C.; Atlanta; Madison, Wis.; Provo, Utah; Omaha, Neb.; Des Moines, Iowa; Dallas; and Washington, D.C.

Boise’s ascent to second place stems from a still healthy economy that has been supported by several key components, including government spending, said a Boise-area official.

A study of Boise’s job growth showed only a 0.9 of a percent decline in employment from 2002 to 2003, said Shiryl Boyce, vice president of the Boise Metro Economic Development Council.

In the past year, Boise has lost more than 13,000 jobs, including about 1,000 from tech company Micron in the past year. Even so, the community is showing no signs of economic distress, Boyce said.

"We have four medical centers in the valley here. Plus, with the military presence we have, that’s an extra impact of $700 million (per year)," he said.

The military impact derives from Mountain Home Air Force Base and from Idaho Air and Army National Guard units stationed there.

Those units train about 30,000 armored troops in the Boise area per year, he added.

"So, yeah, we definitely look at the Forbes rankings," he said. "We agree with the general view they use, that the most successful economies are the ones that are the most diverse."

The magazine also compiled a ranking of smaller cities. The full list of larger and smaller metros is at http://www.forbes.com.

Business writer Tom Sowa can be reached at (509) 459-5492 or at [email protected]

Forbes rankings
Forbes Magazine’s assigned 2003 rankings for Best Places to Do Business:

City. . . . . . 2003 rank….. 2002 rank

Seattle….. 89. . . . . . . . . . 92

Spokane..100. . . . . . . . . .98

Tacoma…135. . . . . . . . . 102

http://www.spokesmanreview.com/news-story.asp?date=051003&ID=s1348562&cat=section.business