Alabama Cities Ranked by Strength of Local Economies: Two in Top 10% Nationally

Policom Corporation has just released its 2012 city rankings.  The firm is an independent economics research organization based in Palm City, Florida, which specializes in analyzing local economies.

Since 1996, Policom has created economic strength rankings for all Metropolitan Statistical Areas in the U.S.  Currently there are 366 Metropolitan Statistical Areas, defined as urban areas of at least 50,000 population.

Policom says it addresses the condition of an economy from the viewpoint of its impact upon the “standard of living” of the people who live and work in an area.  The formulas used to determine economic strength measure how the economy has behaved, not what has caused it to perform.

The highest ranked areas have had rapid, consistent growth in both size and quality for an extended period of time. The lowest ranked areas have been in volatile decline for an extended period of time.

Alabama has two cities, Huntsville and Birmingham, ranked nationally in the top 10 percent of all 366 metro areas.  Huntsville is Alabama’s top ranked economy at number 16 nationally, up from 52 last year.

Birmingham is next and is ranked number 29 out of 366 markets, down one notch from last year’s rank.

Of Alabama four largest cities, Montgomery is third and ranks at 72 nationally which is up from the city’s ranking of 84 last year.

Mobile is the lowest ranked of Alabama’s largest cities at 193 which is actually an improvement over its ranking last year of 205 among all 366 metro economies.

Other metropolitan areas (above 50,000 in population) in Alabama and their national rankings are shown below:

City & National Ranking Among All 366 Markets

  •             Tuscaloosa                                   165
  •             Phenix City-Columbus               166
  •             Auburn-Opelika                          270
  •             Dothan                                          291
  •             Florence-Muscle Shoals             297
  •             Anniston-Oxford                         335

Interestingly, across the country the top five economies were Washington, DC, Des Moines, Seattle, Nashville and Austin, Texas.

The absolute worst were: Muncie, IN; Flint, MI; Danville, VA; Anderson, IN; and in place number 366, dead last, was Danville, IL.

Policom also rates smaller markets for economic strength.  Referred to as micropolitan markets, they are defined as “an urbanized (city) area with a population of at least 10,000 but fewer than 50,000.”  There are currently 576 micropolitan areas in the U.S.

Within Alabama, the highest ranked micropolitan area for economic strength is Enterprise-Ozark which weighs in at number 28 nationally out of the total of the 576 markets.

Not far behind is Daphne-Fairhope-Foley which is ranked at number 42 nationally.  Other Alabama micropolitan markets and their national rankings are:

City & National Ranking Among All 576 Markets

  •             Troy                                         263
  •             Talladega-Sylacauga              310
  •             Cullman                                    407
  •             Albertville                                438
  •             Ft. Payne                                  457
  •             Alexander City                        461
  •             Scottsboro                                485
  •             Eufaula                                      518
  •             Selma                                        522
  •             Tuskegee                                  555
  •             Valley                                        575

For a list of all American markets and details on the methodology used by Policom in this research, readers may visit www.Policom.com.

Clearly, the leaders in some of Alabama’s smaller markets have their work cut out for them.

What do you think?  Do you agree with these rankings?

For a list from another organization of the best and worst states for business in 2012, please visit our recent article by clicking here.

About William Bruce

President, American Business Brokers Association / Business Broker and Accredited Business Intermediary assisting business buyers and sellers with the transfer of ownership since 1986 / Author: How to Buy a Business.
This entry was posted in Alabama's Economy, Gulf Coast Regional & National Economy and tagged , , , , , , , , , , , , , . Bookmark the permalink.

2 Responses to Alabama Cities Ranked by Strength of Local Economies: Two in Top 10% Nationally

  1. This is just what I have been looking for all the time. Don’t quit updating your weblog.

  2. Great post, thnks for providing this info.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s