Dayton Lands Back on Top
To be noticed on the nation’s top metro radar is contingent on a variety of factors: Business climate, availability of robust infrastructure, educational offerings, employment opportunities and overall quality of life, to name a few.
Getting there is no walk in the park. Site Selection’s 2024 Top 10 Tier 2 Metros are keenly aware of this. To grow is to change, and while there is no set timeline for getting to the top, the diligence of a region’s leadership is often what sets them apart.
The Dayton-Kettering-Beavercreek metro area in western Ohio is a case in point. For the first time since 2021, the region with an estimated population of over 814,000 has climbed the ranks to take the No. 1 spot among Tier 2 metros. In the words of Dayton Mayor Jeffrey Mims, “Dayton is hot right now.”
As reported by the Dayton Business Journal after the Dayton Development Coalition’s annual meeting in early February, companies working with the Coalition and JobsOhio in 2024 committed to projects totaling $1.2 billion in capital investment and more than $176.7 million in payroll, expected to generate more than 2,500 jobs and retain more than 8,200 jobs.
In Site Selection’s 2024 tally of qualifying projects, the Miami Valley pulled in 44, four more than No. 2 New Orleans-Metairie, Louisiana. Due to recent Core-Based Statistical Area (CBSA) changes, Louisiana’s New Orleans-Metairie metro shifted from a Tier 1 to a Tier 2 following a decline in the region’s population to just under 1 million, according to U.S. Census Bureau updates.
This didn’t set the metro back much as its 40 projects set it above from No. 3 Allentown-Bethlehem-Easton, Pennsylvania, which brought in 30 projects. Heading to the U.S. Southeast, coming in fourth place is Greensboro-High Point, North Carolina, moving up from No. 8 last year. With 29 projects, the region narrowly beat out a plethora of ties seen throughout the remainder of our Top 10.
CBSA changes have moved New Orleans-Metairie, Louisiana, to Tier 2, where the metro claims the No. 2 ranking by projects and No. 8 ranking by projects per capita.
Photo courtesy of New Orleans Tourism
Two South Carolina metros — Charleston-North Charleston and Greenville-Anderson-Greer — round out this year’s top five with 28 projects each. In a tie for seventh are Baton Rouge, Louisiana, and Omaha, Nebraska, which both garnered 26 projects. Tied at No. 9 with 25 projects apiece are Lexington-Fayette, Kentucky; Scranton-Wilkes-Barre, Pennsylvania; Toledo, Ohio, and Wichita, Kansas.
Purposeful Planning
Metro Dayton’s rise in the ranks didn’t happen by chance. It is a product of creating a community residents and businesses want to be a part of.
“Over the past 10 years we’ve benefited from a combination of Dayton citizens making the decision that they were happy with the leadership we have and businesses [being] willing to invest in Dayton,” says Mayor Mims. “Our focus on investing in education, beautifying our city, tearing down vacant lots and properties, supporting our public safety agencies, recreation and housing initiatives seemed to be a good combination.”
Those represent just a few of the indicators that Dayton officials looked at that signaled they were moving in the right direction. Collaboration has been a key factor in positioning the city for success. An abundance of new business investment in and around Montgomery County followed.
This activity includes Clayton, Dubilier & Rice’s acquisition of Shearer’s Foods and subsequent $106 million investment to convert a former General Motors painting facility into a snack foods manufacturing plant, creating 250 jobs by late 2026. A $4.5 million upgrade to Dayton-Phoenix Group’s locomotive components manufacturing plant will create 115 new jobs. Other projects include LI Industries’ new $55 million, 120-job EV battery manufacturing site; Starwin Industries’ $3.5 million, 40,000-sq.-ft. aerospace and aviation components facility expansion; and Sierra Nevada Corporation’s $94 million, 200-job investment to construct two hangars at Dayton International Airport.
“We have a responsibility of providing as many things that we know work by looking at other successful communities and school systems and bring them to Dayton. If you want to have good citizens you have to grow them like a garden, put the seeds out, fertilize them, work with them and continuously adjust where needed.”
— Jeffrey Mims, Mayor of Dayton, Ohio
Aerospace investments have been on the rise in the region, supported by industry giants like Sierra Nevada and Joby Aviation, which also selected Dayton International Airport as the place to construct its $500 million, 2,000-job aircraft production facility, due to become operational in 2025.
Leadership aims to increase future employment opportunity by creating programs that allow youth to explore high-paying career opportunities early. By creating classroom space at the airport, the city has been able to increase and update a number of air camp programs where Dayton Public Schools and community college students can learn about airport operations. This not only makes residents aware of job opportunities available to them but retains skilled talent in the region. Mims says this same model is in use for targeted industries like manufacturing and health care as well.
“It’s a response to not only attracting business but one of the reasons they want to stay as well. We have a responsibility of providing as many things that we know work by looking at other successful communities and school systems and bring them to Dayton,” says Mims. “If you want to have good citizens you have to grow them like a garden, put the seeds out, fertilize them, work with them and continuously adjust where needed.”
Sioux Falls Remains Per Capita Leader
While Sioux Falls, South Dakota, did not snag a Top 10 spot in this year’s Tier 2 Metros rankings by projects, the region was able to once again claim the No. 1 rank for projects per capita in 2024.
Of the region’s 22 total projects, Minnesota-based food manufacturer Schwan’s Company led in overall investment in Sioux Falls. The company announced plans to construct a 700,000-sq.-ft. Asian-style food manufacturing facility on a 142-acre site located at the city’s Foundation Park. This marks Schwan’s first location in the state, supported by a $750 million investment. Furthering its commitment to the metro, the company will also establish a regional office in the city’s downtown district, creating up to 100 jobs. The two projects will introduce a total of 700 jobs once operational.
Three months after the project was announced the South Dakota Governor’s Office of Economic Development approved a Reinvestment Payment Program grant of up to 100% of the state sales and use tax Schwan’s will pay toward the project.
CBSA changes saw the previously Tier 3 metro of Auburn-Opelika, Alabama, level up to Tier 2 in 2024. The metro has added over 20,800 residents and now claims a population of more than 201,500. The region’s 14 projects helped it secure the No. 2 rank behind Sioux Falls. Savannah, Georgia, moved up to third, barely beating out the Dayton-Kettering-Beavercreek metro, which remained firmly in fourth place. Kentucky’s Lexington-Fayette region rounds out the top five, up from No. 7 the year prior.
Per capita leaders not far behind Lexington-Fayette include Macon-Bibb County, Georgia; Lake Charles, Louisiana; Scranton-Wilkes-Barre, Pennsylvania; Toledo, Ohio and New Orleans-Metairie, Louisiana.
Where Young Adults Thrive
An annual Forbes Advisor report, “Best Places for Young Professionals to Live in the U.S. in 2024,” compares the 100 most populated U.S. metros based on 12 metrics across four categories including employment and pay, housing affordability, cost of living and lifestyle. Scoring metros in each category on a scale from zero to 100, Forbes Advisor recorded high scores for a number of Site Selection’s Top Metros. (See national and regional charts.)
The Dayton-Kettering metro ranked fourth in last year’s report, while Omaha-Council Bluffs, Nebraska, followed in sixth place. Just outside the Top 10 at No. 12 was Toledo. Within the four categories considered, Dayton-Kettering scored highly in both housing affordability (95 points) and cost of living (94 points), with 64 points for lifestyle and 47 points for employment and pay. Overall the metro’s combined score was 95 points, placing it in a tie with Columbus, Ohio, and coming in behind Cincinnati, Ohio; Des Moines-West Des Moines, Iowa, and Madison, Wisconsin.
The Omaha-Council Bluffs metro achieved an overall score of 94 points, encompassing 89 points for lifestyle, 79 points for housing affordability, 67 points for employment and pay, and 62 points for cost of living. Toledo excelled in cost of living (97 points) and housing affordability (92 points) but scored lower in lifestyle (67 points) and employment and pay (31 points) for an overall score of 83 points.
