Movers and Shakers
Small cities that blasted up the list
Since 1993 these small metro areas have shown the most improvement in their business climate.
| City |
'93-'94 rank |
'99-'00 rank |
Change |
| Portsmouth-Dover-Rochester, NH |
99 |
31 |
+68 |
| Corpus Christi, TX |
123 |
60 |
+63 |
| Fort Collins-Loveland-Greeley, CO |
88 |
27 |
+61 |
| Flint, MI |
126 |
69 |
+57 |
| Fargo-Moorhead, ND-MN |
55 |
2 |
+53 |
| Portland, ME |
115 |
63 |
+52 |
| Duluth, MN |
121 |
71 |
+50 |
| Brownsville-McAllen, TX |
93 |
43 |
+50 |
| Huntington, WV |
111 |
67 |
+44 |
| Waco, TX |
128 |
85 |
+43 |
Source: Cognetics Inc.
Portsmouth-Dover-Rochester
Rank in 1999-2000: 31
Change in rank since 1993-1994: +68
Big reason for rise: Scenic, lower-cost alternative to Boston's high-tech corridor
As the Boston area fills up, companies are heading north to the "E-coast," where prime office space can cost $20 to $24 a square foot -- as much as 50% below the rates along Boston's famous Route 128 technology belt. But Portsmouth isn't just cheap; it's becoming cool. "If we located down in the Route 128 area, we'd pretty much be just another company somewhere off an exit," says Jack Serfass, cofounder of Bowstreet, an E-commerce software company. "We wanted competitive differentiation to attract the first 100 people, and Portsmouth proved to be a great area to do that." The outdoor lifestyle is a magnet for work-hard-play-hard new-economy employees. -- M.K.
Movers and Shakers
Small cities that plunged down the list
Since 1993, these small metro areas have shown the biggest decline in their business climate.
| City |
'93-'94 rank |
'99-'00 rank |
Change |
| Honolulu, HI |
3 |
105 |
-102 |
| Lancaster, PA |
41 |
116 |
-75 |
| Spokane, WA |
23 |
95 |
-72 |
| Salinas, CA |
56 |
127 |
-51 |
| Reading, PA |
38 |
107 |
-69 |
| Melbourne, FL |
14 |
74 |
-60 |
| Allentown, PA |
80 |
125 |
-45 |
| Hickory, NC |
6 |
48 |
-42 |
| Santa Barbara, CA |
58 |
97 |
-39 |
| Tallahassee, FL |
13 |
51 |
-38 |
Source: Cognetics Inc.
Honolulu
Rank in 1999-2000: 105
Change in rank since 1993-1994: 102
Big reason for drop: Hawaii's economic doldrums
The Hawaiian economy wiped out in the recession of the early 1990s. Then the Asian crisis of 1997 slowed the flow of tourists. "Unlike the mainland, we're not in a boom," says Jim Richardson, associate professor of management at the University of Hawaii at Manoa. Entrepreneurs also face some indigenous challenges: high real estate, energy, and freight costs combined with a small market and labor pool. "If we were in California or Kansas, we could drive further down the road to find new customers. We can't do that here," says Bernie Boltz, founder of Intech Inc., which makes products from recycled paper. But Hawaii is looking to the high-tech sector to diversify its economic base. --Emily Barker
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