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8/4/2019 BFJulyAug11 Metro Rankings
1/9
T
his year, weve focused ourMetro growth potential evalu-
ation on some regional hubsdeveloping around severalmid-sized locations that are brim-ming with job-creating activitiesbuilt around sure-growth industries.Topping the list of Metro leaders inour Economic Growth Potentialranking is Austin, TX.
The cosmopolitan capital of theLone Star State may be known out-side of Texas for its hip music
scene, which can be enjoyednationally on public TVs AustinCity Limits, but there seems to beno limit to the growth sectors that
have been persuaded to put downroots in Austin.
Austin has established itself as oneof the leading semiconductor hubs inthe U.S., built around Samsung
Austin Semiconductors (SAS) hugechip fab facility. The Texas capitalhas made it clear in recent monthsthat it intends to defend its turf inthe chip-making wars against up-and-comers.
The $3.6-billion expansion ofSAS in Texas was selected as our
2010 Economic Development Dealof the Year Gold Award winner. Thesemiconductor fabrication plantproject was submitted by Greater
Austin Chamber of Commerce, which also credited the Governors
Office of Economic Developmentand Tourism and the City of Austinfor their help in sealing the deal.
The expansion of SAS 12-inchsemiconductor fabrication plant in
Austin is expected to create up to7,600 direct and indirect jobs for the
Austin Metro Area. The addedinvestment in the Austin fab buildson $5.6 billion the Korean tech gianthas previously committed to the SAS
facility over the past 14 years, bring-ing the total investment to approxi-mately $9.2 billion.
The company is in the midst of
4 6 J U L Y / A U G U S T 2 0 1 1
(Continued from page 31)
1. DALLAS/FT. WORTH, TX
2. MILWAUKEE, WI
3. HOUSTON, TX
4. AUSTIN/SAN MARCOS, TX
5. ORLANDO, FL
6. SAN JOSE, CA
7. SEATTLE, WA
8. PITTSBURGH, PA
9. SAN DIEGO, CA
10. COLUMBUS, OH
Job Growth Leaders(Average Employment More Than 750,000)
Job Growth Leaders(Average Employment Between 250k and 750k)
1. ROCHESTER, NY
2. RALEIGH, NC
3. AKRON, OH
4. EL PASO, TX
5. HONOLULU, HI
6. OKLAHOMA CITY, OK
7. BRIDGEPORT/STAMFORD/NORWALK, CT
8. LITTLE ROCK, AR
9. TOLEDO, OH
10. CHARLESTON/N CHARLESTON/SUMMERVILLE, SC
Job Growth Leaders(Average Employment Below 250k)
1. SANDUSKY, OH
2. ELIZABETHTOWN, KY
3. ANDERSON, SC
4. KOKOMO, IN
5. SPRINGFIELD, OH
6. HOT SPRINGS, AR
7. CUMBERLAND, MD
8. MYRTLE BEACH/N MYRTLE BEACH/CONWAY, SC
9. PEORIA, IL
10. SHREVEPORT/BOSSIER CITY, LA
8/4/2019 BFJulyAug11 Metro Rankings
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increasing employment at the plantfrom 1,000 to 1,600 this year, with
annual payroll rising from $70 mil-lion to $112 million. Annual opera-tions at SAS currently inject morethan $800 million into the area econ-omy annually; when ripple effects areincluded, SAS is responsible for morethan $1.4 billion each year in localeconomic activity and $296 millionin total worker earnings. Employ-ment at SAS represents more than 13percent of the Austin, TX areas tech-
nology production base. Almost3,000 construction workers arebeing employed in the $633-million
build-out of the fab expansion.The expanded semiconductor fab
will produced 45-nanometer andbelow microchips for Samsungs Sys-tem LSI business. The plant cur-rently produces a variety of NANDFlash memory chips.
As detailed in this months TexasBusiness Report [see page 32], Austinrecently has unveiled some mega-deals involving Internet giants. Thelargest of the deals was the announce-ment by eBay/PayPal that it would
invest $5.1 million to expand its Austin office, creating more than1,000 jobs, after the Texas EnterpriseFund (TEF) program allocated $2.8million for the project. eBay/PayPal isalso receiving a $1.2 million incentivefrom the City of Austin.
The economic developmentgrants from the Texas EnterpriseFund (TEF) and the City of Austin
were instrumental in our decision to
choose Austin as a location forgrowth, said eBay Inc. Senior VicePresident and Chief TechnologyOfficer Mark Carges.
eBay was also attracted to Austinsbudding high-tech economy and
skilled workforce. Our facility therehas room for expansion and the sup-port we have received from the [stateand city] reinforces our commitmentto attracting top talent in regions
where we operate, Carges said.The TEF was also instrumental in
attracting social networking giantFacebook, which opened an Austinoffice in March. Facebook received$1.4 million through the TEF and
an economic incentive package fromthe City of Austin that will provideFacebook with $1,000 for every new
job it creates, with a maximumamount of $200,000 for creating 200
jobs by the end of 2013, for an antic-ipated capital investment of morethan $3.1 million.
One of the emerging high-techhubs that is challenging Austinshegemony in the semiconductor
world also made our top 10 Metrolist for Economic Growth Potential.In the late 1990s, New York State
identified seven industry sectors that
4 8 J U L Y / A U G U S T 2 0 1 1
Emerging Logistics/Distribution Growth Centers
1. GREENVILLE/SPARTANBURG, SC
2. HESPERIA, CA
3. DECATUR, IL
4. ARDMORE, OK
5. VALDOSTA/LOWNDES, GA
6. FINDLAY, OH
7. CALEDON, ONTARIO
8. SIOUX CITY, IA
9. FT. WAYNE, IN
10. JEFFERSON CITY, MO
1. MEMPHIS, TN
2. CHICAGO, IL
3. HOUSTON, TX
4. LOS ANGELES, CA
5. NEW ORLEANS, LA
6. PORT AUTHORITYOF NY/NJ
7. PHILADELPHIA, PA
8. MOBILE, AL
9. CHARLESTON, SC
10.SAVANNAH, GA
Top Logistics/Distribution/
Shipping Hubs
8/4/2019 BFJulyAug11 Metro Rankings
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the state intended to target as centralto its growth strategy, including
semiconductor manufacturing. In2000, as the University of Albanybegan to establish its leadership posi-tion in the emerging science of nan-otechnology, the Hudson Valleyregion zeroed in on the semiconduc-tor industry as a major driver ofregional growth.
The capital region of Upstate NewYork now has attracted so many first-class research facilities that Albany,
NY is now billing itself as the Nan-otech Capital of the World. At theheart of this burgeoning nanotechempire is the College of NanoscaleScience and Engineering (CNSE), aUniversity of Albany research hub
that is part of the SUNY system.The $6.5-billion CNSE complex
is a public-private facility unlike any-thing that can be found elsewhere inthe academic world. Its unique80,000-square-foot cleanroom is ahive of activity for more than 250leading semiconductor players as wellas students honing their high-techskills. CNSE contracts out the use ofits cleanroom to a bevy of semicon-ductor industry giants, includingIntel, Sematech and AMD, who test
prototype tooling and chip design atthe complex. About 20 GF techni-cians currently are working at CNSE,validating the equipment that willeventually be deployed at Fab 8.
Unlike other high-tech initiatives,
in which major advances are guardedby individual companies like state
secrets until they are commercialized,semiconductor design is a collabora-tive enterprise in which major playershave formed research alliances tomove the technology to the next level.This is evidenced not only by thedozens of top industry players work-ing shoulder-to-shoulder in the CNSEcleanroom in Albany, but also by theIBM Technology Alliance that pio-neered 28 nanometers (28nm)
microchip technology.The crown jewel of the regionssemiconductor hub is the $4.2-billionGlobal Foundries (GF) microchipplant in Malta, NY. At the heart of thismega-project stands the emerging shell
B U S I N E S S F A C I L I T I E S 4 9
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of a 300,000-square-foot cleanroomthat soon will begin churning out 300-
mm wide semiconductor wafers withmicrochip circuits as small as 28nanometers (28nm). Shortly aftermanufacturing commences in mid-2012 at GF, the microchip plant willtake a great leap forward and becomethe worlds first facility to produce300-mm microchips with compo-nents as small as 22 nanometers.
GF has begun this summerinstalling nearly $2 billion worth of
highly sophisticated tooling at Fab 8;it will take about 12 months to cali-brate and qualify the tools. Initialmanufacturing runs, utilizing
210,000 square feet of cleanroomspace, are slated to begin in the mid-
dle of 2012. By late 2012, more than1,400 people will be employed at Fab8, a number that could increase sig-nificantly if the foundry decides incoming years to ramp up to fullcapacity60,000 wafers per monthutilizing the entire 300,000 squarefeet of the shell. After commercialproduction starts, the GF complex isexpected to generate an annual pay-roll of more than $88 million; the
project also will create an estimated5,000 indirect jobs in the region,yielding a total annual payroll ofnearly $300 million for all of the jobsassociated with Fab 8. More than2,700 construction jobs have beencreated during the $800-million con-struction phase of Fab 8.
Marylands burgeoning biotechcluster in the area surrounding Fred-erick, MD continues to expand
exponentially, notching fourth placein our Economic Growth Potentialranking. A good example of thistrend is MedImmune, now part of
AstraZeneca, which is completing itsnew 337,000-square-feet FrederickManufacturing Center. The Freder-ick facility will be one of the biggestbulk biotech manufacturing facilitiesin the country. The $600-millionfacility will employ 250 when it
opens and is expected to take fiveyears to ramp up to full production, when the workforce may double.MedImmune also is expanding itsheadquarters complex in Gaithers-burg, investing $200 million andincreasing the lab staff to 600.
KIA RAMPS UP IN GEORGIA
Troup County, GA blazed into thetop 10 of our growth potential cate-gory (in sixth place) with its official
entry into the top tier of U.S. auto-motive manufacturing.
Kia Auto Manufacturing, based inSeoul, Korea, has ramped up its firstNorth American auto manufacturingplant, Kia Motors ManufacturingGeorgia (KMMG) Inc., in WestPoint, GA. At full capacity, the $1billion state-of-the-art facility willhave the ability to produce 300,000vehicles annually.
Kia is proud to call West Point,Georgia home and we look forward
to many years of growing together,said Group President and CEO ofKMMG, Byung-Mo Ahn.
The 2.2 million-square-foot auto-
5 0 J U L Y / A U G U S T 2 0 1 1
Best Cost
of Living
1. TULSA, OK
2. INDIANAPOLIS, IN
3. HOUSTON, TX
4. OMAHA, NE
5. NASHVILLE, TN
6. GREENVILLE, NC
7. MEMPHIS, TN
8. FT. WORTH, TX
9. OKLAHOMA CITY, OK
10. ST. LOUIS, MO
1. AUSTIN TX
2. MIDLAND, MI
3. MCKENZIE COUNTY, ND
4. FREDERICK, MD
5. ALBANY, NY
6. TROUP COUNTY, GA
7. MONTGOMERY, AL
8. WINSTON-SALEM, NC
9. PROVO, UT
10. SPARTANBURG, SC
Economic Growth
Potential
8/4/2019 BFJulyAug11 Metro Rankings
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mobile manufacturing plant sprawlsacross 2,200 acres of land between
Exit 2 and Exit 6 along Interstate 85in West Point. The site consists offour main shops: stamping, welding,paint and assembly, and includes atransmission shop, module shop anda two-mile test track where everyvehicle is tested. The general assemblyarea is outfitted with more than a halfmile of height-adjustable conveyors toachieve the most favorable installationposition for each team member and
reduce physical fatigue. It is outfittedwith wood flooring, which provides amore comfortable and forgiving workenvironment for team members.
Kia eventually expects to employup to 3,400 at the plant. The rippleeffect from the supplier networkbeing established in the area sur-rounding the plant will be evengreater, creating up to 7,500 addi-tional jobs in the region.
Kia Motors supplier Hanil E-Hwahas put a new manufacturing plantin the LaGrange Industrial Park,expected to employ up to 173.
The Korean-based companyinvested $8.45 million in a 178,354-
square-foot building formerly occupiedby Emerson Network Power-Energy
Systems. Hanil E-Hwa makes automo-tive interior parts such as door trim,
seats, head lining, shelf covering andpackage trays. The company uses resin
B U S I N E S S F A C I L I T I E S 5 1
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Top 5
High-Tech Hubs
1. ALBANY, NY
2. AUSTIN, TX
3. COLUMBUS, OH
4. KNOXVILLE, TN
5. MANHATTAN, KS
8/4/2019 BFJulyAug11 Metro Rankings
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pellets and injection molding for thedoor trim, painted interior door parts
and wheel caps.Were real excited to be able to filla building that would have beenempty and provide an opportunity formore people to be employed, said
Jane Fryer, secretary of the LaGrangeDevelopment Authority.
Were excited to expand our U.S.operations and take advantage of thehighly skilled workforce in thisregion to create meaningful opportu-
nities in this community and betterserve our customers, said Hanil E-Hwa spokesman Yang Suk Ryu.
JOBS ARE DEEP IN HEART OF TX
We went out of our way in this
years Rankings Report to create aspecial benchmark to indicate whichlocations are doing the best job ofbouncing back from the depths ofthe Great Recession. So we took aclose look at the Bureau of Labor Sta-tistics job growth numbers and wezeroed in on the communities thathave registered the largest percentageincrease in average employment for a12 month period (April 2010 to
April 2011). We broke this into three Job Growth Leaders categories(small, medium and large, divided byoverall average employment) in our
Metro Rankings. We recognize that,in some cases, placement in the top
10 of these categories may reflect thefirst upward steps out of the employ-ment crater left by the impact of the2008-2009 downturn, while otherson the list may be surging to newheights after a brief dip. As far as
were concerned, everyone on the listdeserves a shout-out for piercing theeconomic gloom with good news.
It should come as no surprise thatthree Metro areas in Texas finished in
the top tier for large MSAsDal-las/Ft. Worth in first place, Houstonin third place and Austin/San Marcosin fourth placeand another Texascity, El Paso, made the top five in themedium category. Thats becauseTexas recently became the first largestate in the nation to brings its jobstotals back to pre-recession levels, ledby a surging oil and gas industry.
The Lone Star State employed
224,200 workers in exploration andproduction in June, according to theTexas Petro Indexmore than the223,200 at the height of the lastenergy boom in October 2008 andnearly 15 percent more than in June2010, according to Karr Ingham, theMidland economist who created andmaintains the index.
Oil production also beat out natu-ral gas as the dominant Texas fossil
fuel product by value during the firstsix months of 2011, reversing a trendthat started in 1997 when natural gasbegan to dominate the states energyproduction.
In the past 12 months, theindustry has added more than28,600 jobs, which is nearly 13 per-cent of all jobs added to the Texaseconomy, Ingham said in announc-ing the result.
The oil and gas industry only
5 2 J U L Y / A U G U S T 2 0 1 1
Top 10
Manufacturing Cities
1. HOUSTON, TX
2. NEW YORK, NY
3. CHICAGO, IL
4. LOS ANGELES, CA
5. ST. LOUIS, MO
6. DALLAS, TX
7. CINCINNATI, OH
8. INDIANAPOLIS, IN
9. PHOENIX, AZ
10. SAN DIEGO, CA
1. WICHITA, KS
2. CHARLESTON, SC
3. HUNTSVILLE, AL
4. FT. WORTH, TX
5. SEATTLE, WA
6. TUCSON, AZ
7. LOS ANGELES, CA
8. PHOENIX, AZ
9. TAMPA/ST. PETERSBURG, FL
10. ORLANDO, FL
Aerospace/DefenseManufacturing
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accounts for about 2 percent of thestates entire workforce payroll, but it
tends to have an oversized impact onthe entire state economy because it isso capital-intensive. By some esti-mates, as much as two-thirds of Texasjob creation in the past year could betied directly and indirectly to the oiland gas exploration business.
Houstons solid jobs bonafideswere amplified by its first place finishin our Top 10 Manufacturing CitiesMetro Ranking, topping New York,
Chicago, Los Angeles, St. Louis , andDallas respectively.The Greater Rochester, NY area,
Raleigh, NC and Akron, OH led the way in our mid-sized Job GrowthLeaders category, while Sandusky,
OH, Elizabethtown, KY and Ander-son, SC topped the leaderboard for
the smaller MSAs.
MEMPHIS: TOP SHIPPING HUB
Memphis, TNa.k.a. AmericasAerotropolisrepeats as our first-place finisher in the Top Logistics/Distribution Shipping Hubs cate-gory on the strength of its unsur-passed combination of air, rail, landand water shipping possibilities.
Memphis, TN is generally consid-
ered North Americas premiere, per-haps its only, aerotropolis. The worldheadquarters of FedEx, MemphisInternational Airport has the distinc-tion of being the busiest cargo air-port in the world and also a major
B U S I N E S S F A C I L I T I E S 5 3
FO R T WAYN E, I N DI AN A
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Top 5 Food Processing
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1. CHICAGO, IL
2. TORONTO, CANADA
3. GENESEE COUNTY, NY
4. SIOUX CITY, IA
5. OMAHA, NE
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passenger airline hub. The airportpumps more than $28 billion into
the regions economy, and airport-related companies are responsible for220,000 jobs, or one in every threein Memphis, according to a recentUniversity of Memphis study.
While the airport is the heart ofthe aerotropolis, it is just one part ofthe robust transportation system thatis crucial to Memphis success.Equally vital to the citys strength as alogistics hub are its superior road and
rail networks and its port on the Mis-sissippi River. All play integral rolesin the economy of a city that is fore-casted to see increased activity in
both freight and passenger traffic inthe years ahead.
A study by IHS Global InsightInc. noted that as the global econ-omy rebounds from the Recession,the U.S. will see an increaseddemand for imports from South
America, Eastern Europe and parts ofAsia, the regions expected to bounceback first. Those goods will go tomarket through container traffic,making Memphis, with its lower-cost
water and rail options, an attractive
distribution point.Memphis has been nurturing itsassets and preparing for an evenbrighter future. The airport itself hasbeen modernized and expanded overthe past 15 years with nearly $1 billionin improvements. One recent accom-plishment was a land exchange thatsaw the Tennessee Air NationalGuards base moved from a 103-acreairport site that was surrounded by
FedEx to another part of the air field where it built a state-of-the-art base. Years in the making, the exchangeallowed FedEx to accomplish a criticalexpansion onto the former base.
Memphis five Class I railroadshave in recent years invested morethan $500 million in new orexpanded rail systems, which alreadybring more than 200 trains throughMemphis each day.
The citys port will also get busieras river traffic increases with theplanned expansion of the PanamaCanal, so more rail connections tothe water are in the works. The high-
way network is also growing. Mem-phis is located at the intersection ofinterstates 40 and 55, which bothcross the Mississippi River, and thecity will be a central location on I-69,nicknamed the NAFTA Superhigh-
way since it will run from Mexico to
Canada. Also, the construction of I-22 from Memphis to Birmingham is
nearly complete, providing yetanother direct connection to majorEast Coast markets. Meanwhile,plans call for the city to gain a thirdbridge across the Mississippi, accom-modating road and rail.
Last year, FedEx won the Instituteof Transport Managements BestGlobal Cargo Hub award for itsMemphis World Hub. The judgingpanel cited the companys achievement
in successfully uniting the disparatecapabilities of the city of Memphisroad, rail, river and air to create alynchpin of tradewithin the U.S.
5 4 J U L Y / A U G U S T 2 0 1 1
Clean Tech
Leaders
1. BOSTON, MA
2. AUSTIN, TX
3. SAN JOSE, CA
4. SAN FRANCISCO, CA
5. CHICAGO, IL
6. SEATTLE, WA
7. PHILADELPHIA, PA
8. PORTLAND, OR
9. PASADENA, CA
10. VANCOUVER, CANADA
Medical Devices
Industry Leaders
1. LOS ANGELES, CA
2. MINNEAPOLIS/
ST. PAUL, MN
3. NEW YORK CITY/NORTHERN NJ
4. BOSTON, MA
5. CHICAGO, IL
6. SAN JOSE, CA
7. SAN FRANCISCO/OAKLAND, CA
8. PHILADELPHIA, PA
9. MIAMI/FT. LAUDERDALE, FL
10. SALT LAKE CITY, UT
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WICHITA STILL RULES THE SKY
It seems that Wichita, KS has taken
up permanent residence atop theannual Aerospace/Defense Manufac-turing category in our Metro Rank-ings, but the Charleston, SC area(ranked second this year) is revving upits jet engines for a dogfight in years tocome, fueled by the growth in aero-space jobs that are expected to followBoeings placement of its 787 assem-bly facility in North Charleston.
Wichita is home to the worlds
best-known aviation cluster, oftenreferred to as the Air Capital of theWorld. For nine decadesalmost aslong as manned flight has existedaircraft and aircraft components havebeen built in the Kansas hub.
The Wichita area hosts four aero-space OEMs (Boeing Integrated
Defense Systems, Bombadier Learjet,Cessna Aircraft and HawkerBeechcraft). Wichita also is the site ofthe Airbus Engineering Design Cen-ter, and some of the most specializedequipment in the world for metaland composite material fabrication.The Wichita area boasts a network ofmore than 200 precision machineshots, tool and die shops, and otheraerospace subcontract manufactur-
ers. There are more than 40 Boeing-certified gold and silver supplierswithin a 200-mile radius of the city.
South Carolina officials hailedBoeings decision to place its 787plant in the Palmetto State instead of
its traditional jet manufacturing hubnear Seattle, WA (our 2009 Economic
Development Deal of the Year Gold Award winner) as the largest invest-ment in the history of the state, com-paring it to BMWs decision to site ahuge assembly facility in Spartanburg,SC, which established the Palmettostate as a major player in automotivemanufacturing. The project is expectedto create more than 4,000 jobs.
Our third-place Aerospace DefenseManufacturing leader, Huntsville, AL,
is known as the Rocket City for itsstatus as the primary hub for thenations missile defense. Huntsville/Madison County is home to the NASAMarshall Space Flight Center and theU.S. Armys Redstone Arsenal.
B U S I N E S S F A C I L I T I E S 5 5
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