Top Metros of 2001

he Windy City has blown away its challengers for Site Selection‘s No. 1 U.S. metro for new and expanded facility announcements in 2001. Chicago is no stranger to the top spots, finishing in second place last year as the runner-up city for new and expanded facilities. But this year Chicago replaced the four-year reigning metro champion, Detroit, with some pretty impressive numbers. Chicago posted a phenomenal 884 new and expanded facilities in 2001. In an economic downturn, that number is notable and roughly twice what the city reported in new and expanded facilities in 2000. According to Site Selection‘s New Plants database, the Windy City registered 744 new facilities. That’s a lot of jobs and investment in an area of the country that has been hit hard by a slump in manufacturing sectors.

       
Chicago’s Mayor Richard M. Daley agrees. “Chicago has what businesses want: an educated workforce, great location, excellent transportation, a wide variety of business services and suppliers, and a pro-business political environment,” he adds. “But the city isn’t all business, it’s also a great place to live.”


       
According to a report issued by Colliers Bennett & Kahnweiler, “The City of Chicago boasts a solid labor force — 2.8 million employees strong. This employee base is a major contributor for retaining companies in the city.” This strong labor base may be why companies such as Boeing, MRC Polymers and Dantis have all moved corporate headquarters to the Windy City within the last year. “Every day since we made the decision to locate in Chicago, our experiences have only added to the feelings this was a very good decision,” says Boeing senior vice president and CEO John D. Warner.

       
Detroit finishes in the No. 2 spot this year with a reported 678 new and expanded facilities. Motown also reports 453 new plants for the year 2001. That number is still an impressive total over last year’s figures of 139 new facilities. Many of the new Detroit metro investments are related to the automotive industry. Dearborn is the site for Ford’s new $2 billion auto plant which will employ 2,900 workers. Siemens Automotive will build a $67 million facility in Auburn Hills, and DaimlerChrysler and Auto Alliance will both build new auto manufacturing facilities in the metro Detroit area.

       
Detroit may still be the city that the automotive industry built, but high-tech is happening in Detroit, as well. Sequoia Net.com is expanding its software development facility in Auburn Hills, and Vastera Solution Services will employ 150 workers at its Southfield software development center.

       
Minneapolis-St. Paul has made an impressive move towards the top spots. The Twin Cities area was a newcomer to Site Selection‘s list in 2001, finishing in the No. 7 spot for both new and expanded facilities. This year Minneapolis-St. Paul has moved to the No. 3 position, edging out such contenders as New York. The Twin Cities posted 323 new and expanded facilities for 2001, an impressive increase from 216 in 2000. Many of the area’s new investments for 2001 include the insurance industry, client services and real estate development. Medica will build a $77 million office space in Hopkins,and U.S. Bancorp announced it will employ 200 at its new services center in Saint Paul.

       
The Big Apple moves up from its Site Selection‘s No. 5 spot in new expanded facilities last year, to grab the No. 4 spot in both the new facilities and expanded facilities slot. However, New York City’s numbers, 328 new and expanded facilities in 2001 and 339 new and expanded facilities in 2000, reflects the overall downturn in the nation’s economy. Developer Edward Minshkoff will build a 36-story 1.7 million sq. ft. office tower across from Battery Park in lower Manhattan. Reuters America will invest $360 million for a new office facility in Manhattan. And CSFB/Metlife will employ 1,400 workers at its new office facility in downtown.

       
The Golden State logs a winner with the Los Angeles-Long Beach area finishing in the No. 5 spot for both new and expanded facilities. The area finished in the No. 4 spot in 2000 for new metro facilities and in the No.6 position for new and expanded facilities. In 2000, the area posted 332 new and expanded sites locating in the Los Angeles-Long Beach area. This year’s numbers, 312 new and expanded sites, once again reflect the stressed U.S. economy.

       
Newcomer to Site Selection‘s Top Metro list is Houston. Home of major oil and energy concerns, Houston finishes in the No. 6 spot for new and expanded sites and the No. 8 spot for new facilities. In November 2001, Boeing announced they would be moving 760 management jobs during the next three years from California to Houston. City officials were thrilled and claim that Houston’s growth rate is now more than seven times that of the U.S. job growth rate. “Houston has long been known as the human space flight and exploration capital of the world and is now becoming known as a high-tech capital as well,” says Houston Mayor Lee P. Brown.

       
The Grand Rapids-Muskegon-Holland region is no stranger to Site Selection‘s Top Metro list. In 2000, the area finished in the No. 3 spot for new and expanded facilities. This year the region grabs the No. 7 spot for new and expanded facilities, with 223 businesses locating or expanding in the area in 2001. The 2001 numbers, 223 new and expanded facilities, reflect a significant decrease from the previous year, 387 facilities. These numbers may reflect the economic slowdown in the manufacturing sectors more than in any other metro area.

       
Orange County, Calif. falls to the No. 8 spot for new and expanded plants on our list from the No. 4 spot last year. The Orange County area finished in the No. 6 position with new facilities, falling from last year’s No. 3 spot. Cleveland-Lorain-Elyria, Ohio, dropped one slot to the No. 9 position from last year for new and expanded facilities. The area also dropped from the No. 8 position for just new facilities to the No. 10 spot in 2001.

       
An additional newcomer to Site Selection‘s list is an additional southern city, Atlanta. The metro Atlanta area earned the No. 10 spot for both new and expanded facilities and posted 117 new plant announcement to earn the No. 9 spot for new facilities.