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Boomtowns '06: Hottest Midsize Cities

Employment Base of 150,000-450,000.

By: Joel Kotkin and Michael A. Shires

Published May 2006

1 Cape Coral-Fort Myers, Florida
Hurricanes haven't dampened population growth in this Gulf Coast area--it's up 16 percent, to more than 500,000, since 2000. Among the key job generators: tourism, construction, and new service firms, many founded by refugees from cooler climes.

Overall Rank 3 | 1-Year Job Growth 4.8% | 5-Year Job Growth 25.2% | Index Score 97.1

2 McAllen-Edinburg, Texas
Rising trade with Mexico, combined with population growth--up 15.6 percent between 2000 and 2004--have pushed employment up more than 19 percent since 2001. Services, wholesale and retail trade, and education have led the way.

Overall Rank 12 | 1-Year Job Growth 4.7% | 5-Year Job Growth 22.3% | Index Score 93.4

3 Fayetteville, Arkansas
Northwest Arkansas doesn't get much ink, but jobs are up 14 percent since 2001, with growth in services, education, and transportation. Two key drivers: Wal-Mart's headquarters in nearby Bentonville and the University of Arkansas.

Overall Rank 19 | 1-Year Job Growth 3.3% | 5-Year Job Growth 19.9% | Index Score 88.4

4 Sarasota-Bradenton, Florida
Population is expanding and the professional services sector is burgeoning--up nearly 30 percent since 2002. One key reason has been the migration of skilled workers and managers from elsewhere in the country.

Overall Rank 20 | 1-Year Job Growth 4.6% | 5-Year Job Growth 15.1% | Index Score 88.2

5 Reno-Sparks, Nevada
The Reno area continues to suck up more of the Bay Area's companies and people. That's sparked new activity in services, manufacturing, and construction--where employment is up 45 percent since 2002.

Overall Rank 25 | 1-Year Job Growth 4.2% | 5-Year Job Growth 11.9% | Index Score 84.4

6 Palm Bay-Melbourne, Florida
Palm Bay issued more than 3,200 single-family building permits in 2005. The influx of new residents has sparked booms in construction and in business and professional services. Thanks to NASA's Cape Canaveral, the area attracts aerospace and defense firms.

Overall Rank 27 | 1-Year Job Growth 3.1% | 5-Year Job Growth 11.3% | Index Score 84.1

7 Daytona Beach-Ormond Beach, Florida
A half-billion dollars in capital investments has flowed into Volusia County over the past three years. Manufacturers are adding jobs, particularly auto-parts makers, medical-device firms, and boat builders. Service jobs also are plentiful.

Overall Rank 34 | 1-Year Job Growth 3.0% | 5-Year Job Growth 13.4% | Index Score 83.0

8 Lakeland, Florida
With 500 lakes, Lakeland bills itself as the water-skiing capital of the world. It's also a major hub for back-office operations of financial services and insurance firms like Geico and State Farm. Mid-career adults aged 35 to 54, attracted by low housing costs and good schools, have driven recent population growth--a positive sign for companies looking for skilled employees.

Overall Rank 38 | 1-Year Job Growth 2.6% | 5-Year Job Growth 10.3% | Index Score 80.0

9 Provo-Orem, Utah
High-tech firms like Novell are finding a home in Provo, which is completing a $40 million fiber-optic network. Low crime and outdoor activities make it a magnet for young professionals. Brigham Young University adds academic heft, and for celebrity sightings, Sundance Film Festival is just up the road.

Overall Rank 40 | 1-Year Job Growth 3.8% | 5-Year Job Growth 8.6% | Index Score 79.0

10 Bakersfield, California
The fourth-largest agricultural region in California, Bakersfield is home to plenty of food packagers and processors. But it also boasts two major defense research facilities, including Edwards Air Force Base, which has led to an emerging cluster of aerospace companies.

Overall Rank 41 | 1-Year Job Growth 3.1% | 5-Year Job Growth 12.4% | Index Score 78.9

 
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