by Mike Sharkey
Staff Writer
In a recent list released by Moody’s Economy.com, Jacksonville ranked No. 11 out of 379 metropolitan areas in what the Web site calls its “Business Vitality Index.” Austin, Texas tops the list — Austin is at the top of or near the top of several “best cities” lists these days — but Jacksonville does rank well ahead of such major metropolitan areas as Atlanta 25), Portland (12) and Dallas (27).
Naa Aku Addo, an associate economist with Moody’s Economy.com, researched and compiled the data that went into Jacksonville’s ranking. She said each city’s index is based on final available data from 2005 because some of the 2006 data isn’t available yet. Addo said three main indicators were used — current economic conditions, prospective economic conditions and economic risk.
“Number 11 is pretty darn good, but you have to qualify that with the fact that migration and housing have dropped since the data was compiled,” said Addo.
Each of the three indicators contained several factors, all of which were assigned rankings. Those rankings were averaged to produce each city’s Business Vitality Index. At .607, Jacksonville ranked just .001 behind Fargo, N.D. for No. 10 on the list. Austin’s index is .65 followed by Fort Walton Beach with a .63 index, good for No. 2.
Under current economic conditions, the following factors were measured: recent employment growth, productivity, income by household and capital gains. Prospective economic conditions include the cost of doing business, the cost of living, high-tech employment and others. Economic risk includes employee volatility and the diversity of the economy.
While Jacksonville fared well based on the ‘05 data, Addo said Jacksonville’s overall index number is likely to drop a little when the next list is released.
“The metropolitan gross output will probably drop due to the slumping housing market,” she said. “That will affect all of Florida.”
Jerry Mallot, the executive director of the Cornerstone Regional Development Partnership and executive vice president of the Jacksonville Regional Chamber of Commerce, said ranking that high on the Moody’s list is impressive, especially considering the factors used to determine a city’s index.
“What I like about the ranking is the kind of things it’s measuring,” said Mallot. “Those are the kinds of things that are important. Of course, it has to be taken with a grain of salt because it is just statistical data.”
Mallot said rankings like this are also good marketing tools when dealing with a company looking to expand into or relocate to the Jacksonville market or Northeast Florida region.
“We’ll use that to tell them Jacksonville and the region is on target,” he said. “It’s great for credibility and it reflects very well in our national ranking.
Overall, there are 12 Florida cities in the top 50, by far the most of any state.
“Jacksonville ranked high in total income, capital gains and unemployment is quite low,” said Addo.
According to Addo — who didn’t compile the data for the Texas region, but is familiar with it — Austin fares well on such rankings for several reasons. Those factors include: strong migration of workers, high-paying jobs, a strong university system anchored by the University of Texas (39,000 undergraduate students, 11,000 graduate students and 450,000 alumni) and a highly-educated population.
“Austin is doing really well,” said Addo. “They have great indicators across the board and will stay high for a while.”
Moody’s Economy.com is a subsidiary of Moody’s Corporation and is a leading independent provider of economic analysis, data and forecasting and credit risk services. The company is headquartered in West Chester, Pa. and has 500 clients worldwide with offices in London and Sydney, Australia.
Moody’s Economy.com recently ranked 379 metropolitan areas and developed what it calls a “Business Vitality Index.” Here are the top 50 cities in the country, according to that index. The bottom 10 cities in the country are also listed.
1. Austin, Texas
2. Fort Walton Beach, Fla.
3. Corvallis, Ore
4. Raleigh, N.C.
5. Fort Lauderdale, Fla.
6. Boise City, Idaho
7. Orlando, Fla.
8. Huntsville, Ala.
9. Sioux Falls, S.D.
10. Fargo, N.D.
11. Jacksonville, Fla
12. Portland, Ore.
13. Phoenix, Ariz.
14. Idaho Falls, Idaho
15. Tampa, Fla.
16. Fort Collins, Colo.
17. Bethesda, Md.
18. Billings, Mont.
19. Albuquerque, N.M.
20. Nashville, Tenn.
21. Las Vegas, Nev.
22. Santa Ana, Calif.
23. Washington, D.C.
24. Denver, Colo.
25. Atlanta, Ga.
26. Dover, Del.
27. Dallas, Texas
28. Naples, Fla.
29. Charlotte, N.C.
30. Fort Worth, Texas
31. Charlottesville, Va.
32. Houston, Texas
33. Bend, Ore.
34. Bismarck, N.D.
35. Tallahassee, Fla.
36. Panama City, Fla.
37. Fayetteville, Ariz.
38. Minneapolis, Minn.
39. Salt Lake City, Utah
40. Cape Coral, Fla.
41. Columbia, Mo.
42. Rapid City, S.D.
43. Missoula, Mont.
44. West Palm Beach, Fla.
45. Longview, Texas
46. Port St. Lucie, Fla.
47. Colorado Springs, Colo.
48. Logan, Utah
49. Manchester, N.H.
50. Ocala, Fla.
370. Jackson, Miss.
371. Farmington, N.M.
372. Weirton, Ohio
373. Danville, Va.
374. Anderson, S.C.
375. New Orleans, La.
376. Atlantic City, N.J.
377. Flint, Mich.
378. Houma, La.
379. Gulfport, Miss.