The 10 Most Diversified Metro Economies in the US
Curious which regional job markets are fundamentally structured to survive systemic shocks? An important vital sign to check is the absolute density and diversity of industry sectors within a regional footprint.
Relying too heavily on a single industry – say, tourism and hospitality in a time of increased living costs – is detrimental and can leave a city vulnerable during unexpected downturns. But a healthy mix of market sectors can help communities better weather economic storms.
What is a Knowledge-Based Economy?
To measure structural health, economic groups look at how evenly distributed employment is across a city’s footprint. If one sector crashes, another can absorb the displaced labor force.
“Every market and industry has been impacted either directly or indirectly,” explains Meredith Metsker, a content marketing specialist with labor market analytics firm Lightcast (formerly Emsi). “However, some communities are more resilient than others, particularly if they have a diversified, knowledge-based economy.”
1. Madison, Wisconsin
Madison is a lot of things: a college town, state capital and, since it’s nestled between two lakes, a paradise for outdoors enthusiasts. The Wisconsin city also has the most diverse economy in the country, with advanced manufacturing, agriculture, healthcare, information technology and life sciences among the key industries. Plus, those looking to launch a career in Madison have access to unique programs, such as SCORE, a group of retired executives dedicated to helping small businesses get off the ground.
2. Burlington, Vermont
Thinking about starting a new chapter? Turn your attention to Vermont. The state is looking to grow its workforce and offers incentives for those who move there, including grants and a Stay to Stay Weekend program that connects visitors interested in moving to Vermont with employers, entrepreneurs and potential neighbors. You already know Vermont for its maple syrup (it produces nearly half of the nation’s maple crop), but manufacturing, software development, financial services, green energy and tourism are among some of the other key industries.
3. Davenport, Iowa
Several Fortune 500 companies call Davenport home, including Kraft Heinz, Sterilite Corporation, Nestle Purina, Sears Manufacturing and John Deere. But Davenport, where the average home is priced around $194,000, is also a magnet for small businesses. Located along the Mississippi River, the Iowa city has several incentives to help grow small businesses and attract new ones, including tax incentives and economic development loans. Key industries in the Quad Cities area include advanced metals and materials, agricultural innovation, corporate operations, defense and logistics.
4. Eugene, Oregon
Eugene is a regular on Livability’s Best Places to Live rankings, thanks in part to the hiking and biking trails that wind through lush forests and showcase gorgeous mountain views. While the University of Oregon and Lane Community College are major employers, this tight-knit college town also has a burgeoning tech scene. Creative types will feel at home here, too, with Eugene commissioning artists to create 22 vibrant outdoor murals to adorn public spaces in this walkable city.
5. Rochester, New York
Beloved family-owned grocer Wegmans is based in Rochester and is one of the area’s largest employers with more than 13,000 local employees. The University of Rochester and Rochester Regional Health are also top employers. Companies that set up shop in the region can hire from a highly educated workforce and benefit from research centers in fields including food and beverage manufacturing, optics, photonics and imaging, biotech and life sciences, software and IT services and energy innovation. For the curious, Rochester has some interesting museums, including the International Center for the History of Electronic Games and the National Toy Hall of Fame, in addition to the George Eastman Museum, dedicated to photography.
6. Johnson City, Tennessee
Johnson City has been investing in its outdoor offerings, including the Tannery Knobs Mountain Bike Park, which spans 40 acres of wooded terrain and offers a ridgeline overlooking the Appalachian Mountains. Affordability is a perk, with the average rent slightly below the state average and home prices at $278,000. Crown Laboratories, which makes skincare and beauty products like Blue Lizard Australian Sunscreen, is a major employer in Johnson City. The county is also positioning itself as a leader in aerospace engineering with its expanding Aerospace Park and as home to Moog Protokraft, which designs and makes electronics used in advanced military aircraft.
7. Eau Claire, Wisconsin
Menard Home Centers, the Mayo Clinic Health System, Eau Claire Area School District and the University of Wisconsin’s Eau Claire campus are among the top employers here, giving this west central Wisconsin city a healthy mix of industries. Recreation is also a key industry here in the Chippewa Valley. Residents here can enjoy walking, biking and kayaking along the Chippewa River State Trail. Eau Claire has also made a name for itself as a creative hotspot, with indie music and funky art galleries.
8. Baton Rouge, Louisiana
Baton Rouge is making a name for itself in audio engineering, with companies like PreSonus developing hardware and software for musicians. Also, Celtic Media Center is home to more than two dozen companies supporting the area’s film industry, and Baton Rouge Community College offers degree programs in entertainment technology. Other industries that thrive here include education, energy and government and big-name employers include Coca-Cola, ExxonMobil, EA Games and IBM. A global food scene, year-round celebrations and affordable housing are among the many reasons to move to Baton Rouge.
9. Lexington-Fayette, Kentucky
Known as the “Horse Capital of the World,” Lexington is filled with beautiful horse farms (roughly 450 of them in the region!). Bourbon distilleries, scenic “timbered tunnels,” and bluegrass music help define Lexington. The University of Kentucky is a major employer in this metropolitan area. But in addition to education, other top industries include healthcare, distribution and manufacturing. Amazon has a fulfillment center in the area and other major employers include laser printer maker Lexmark International and Lockheed Martin. Lexington has made Livability’s list of the best places to live, is one of the best places for antique shopping and has little to no traffic.
10. Portland, Oregon
You may have visited Portland for a concert, to take in the scenery or to sample its “proud to be weird” culture. But have you considered moving there? Portland boasts lots of economic opportunity as its tech industry continues to grow. High-tech employee hiring has reached new heights, and the software side of tech is especially hot. Nike and Columbia Sportswear are headquartered in Portland, and Adidas, Keen, Danner Boots and several other athletic and outdoor apparel companies have North American headquarters in the city. Manufacturing and healthcare are also top industries.
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