Packaging Cities

American Demographics, Jan 1, 2002

This push to integrate a city's disparate parts into one cohesive branding approach comes as competition among regions for tourists, conventioneers and skilled workers has increased dramatically over the past 50 years. Alastair Morrison, director of the Purdue University Tourism and Hospitality Research Center, estimates that the number of city or regional visitors bureaus has grown from about 250 to 1,600 since 1950. Among economic development agencies, which specialize in industrial recruitment, the competition is even greater. According to the International Economic Development Council, for any given business relocation or expansion, an estimated 15,000 cities, regions or communities are in contention, and that's only in the U.S. Says Ted Levine, chairman of consulting firm DCI: "If you think about the fact that there are only about a half-dozen car manufacturers, it puts things into perspective. This is an extremely competitive field."

Cities and regions are also vying for permanent bodies, especially those with professional heads on their shoulders. With an estimated 80 percent of jobs and wealth created by privately owned companies or entrepreneurs, there's pressure on cities to keep and attract more educated workers and young entrepreneurs. While only 16 percent of the total U.S. population moved house in 1999, better educated people are more likely to move longer distances, presumably for better paying jobs, according to the Census Bureau's 2000 Current Population Survey. Forty-seven percent of movers with a college degree moved to a new county, either within the same state or in another state, compared with 34 percent of those with less than a high school education who did so. And the younger folks are the most mobile: 34 percent of 20- to 29-year-olds and 22 percent of 30- to 34-year-olds moved, making these demographics the primary target for many cities and regions.

For those doing the moving, whether they are employees looking for new digs or CEOs expanding or relocating their companies, image has become an important deal-breaker. According to Arthur Andersen's "Best Cities 2000" survey of 1,433 senior executives worldwide, conducted June through November 2000, a city's suitability for business is no longer just about geographic location, tax incentives or cheap land. Instead, the top three factors mentioned are: "pro-business attitudes" (20 percent), "local availability of professionals" (12 percent) and "entrepreneurial activity" (10 percent).

"Thirty or 40 years ago you just needed green grass by a railroad to set up shop," says Shari Barnett, senior manager of global location strategies at PricewaterhouseCoopers. Now there are so many variables, and there is never just one city that's right for a business or employee. Barnett says she is working with several companies that nixed her recommendation of a city she thought perfect because decision makers had an impression that its economy was failing or its quality of life was poor, even though the city was actually thriving. "Things like geography and tax incentives will get you on the short list, but at the end of the day, if the client doesn't perceive your city well, they'll move on."