Quad Cities region ranked top 10 for economic growth in Midwest, top 50 in U.S.
August 05, 2020
The Quad Cities region significantly exceeded its previous economic growth rankings – as well as those of competing communities – in Area Development's 2019 Leading Metro Locations report.
Released in early 2020, the Quad Cities Metropolitan Statistical Area (MSA) ranked No. 7 out of 85 MSAs in the Midwest, No. 21 out of 160 midsized MSAs in the U.S. and No. 50 out of 399 total MSAs in the U.S. in the ninth annual report.
Area Development magazine, considered a leading publication for covering corporate site selection and relocation, ranked 399 MSAs using 16 indicators of economic change and growth attributes, including employment growth, unemployment rates and average hourly earnings.
Previously the Quad Cities ranked No. 280 overall in 2018 and 2017 and No. 344 overall in 2016.
MSAs were scored in four categories of change and growth indicators – economic strength, year-over-year growth, midterm (five-year) growth and prime workforce – that contribute to the overall ranking. The Quad Cities performed best in the economic strength category (No. 6 overall; No. 2 among midsized metros) and the year-over-year growth category (No. 16 overall; No. 5 among midsized metros).
Dr. Christine Chmura, an economist who analyzed Area Development’s report, cited growing manufacturing sectors as the common thread among top metros in the economic strength category.
“Communities that champion their manufacturing sector benefit not only from the success of those firms, but also from the large ripple effect they cause,” she said in a recap of the report. “For every manufacturing job, typically two to three additional jobs are created; that’s a large multiplier for any region of any size.”
The Quad Cities finished at No. 129 overall in midterm growth and No. 229 overall in prime workforce. In addition, the bi-state region fared better overall than any other community in Iowa, finished fourth overall in Illinois and placed second overall behind Fort Wayne, Indiana, among 36 midsized metros in the Midwest.
Liveability also ranked the Quad Cities #3 most diversified metro economy in U.S., meaning these economies have the range of industries, depth and nimbleness needed to overcome turbulent times and come out the other side even stronger.
An important vital sign to check is the diversity of industries within a metro economy. Relying too heavily on a single industry — say, tourism and hospitality in a time of travel restrictions — is detrimental. But a healthy mix of market sectors can help communities better weather economic storms. Madison, Wisc., and Burlington, Vermont, took the top two spots, respectively.