Charleston jumps to 12th place on national economic index

The Charleston-North Charleston metropolitan area jumped up 10 positions in the recently released Best-Performing Cities Index compiled by The Milken Institute, which ranked the area 12th in terms of economic performance among the nation's 200 largest cities.

"I think it speaks to the vitality that the Charleston area has benefited from for many years," said David Desplaces, international business director and assistant professor of entrepreneurship for the School of Business and Economics at the College of Charleston.

In the 2005 report, the Charleston-North Charleston area was ranked 22nd. The index is used to measure metropolitan areas' success in job creation and retention, looking specifically at where jobs are being created and maintained, corresponding salary levels and where economies and businesses are growing and thriving, according to the institute's Web site. The Milken Institute, a nonprofit independent economic think tank, has been compiling these indexes for more than a decade.

The study says the region moved up 10 places after "having posted solid employment and high-tech (gross domestic product) growth in the past year." The index also cited the area's low cost of living compared to other coastal regions, which remains an important draw for retirees, but said the diverse industry base also attracts skilled workers.

Since the last report, the study states, the metro area's employment base outpaced the national average by 7.1% during the past five years.

"Driven by data processing and telecom services, Charleston created jobs at a rapid pace, having grown its employment base by 3.6% in the past 12 months. Key recent developments include the opening of a new DaimlerChrysler van plant and an American LaFrance assembly plant," the study says.

Though not specifically cited in the study, high-tech companies such as Vought Aircraft Industries and Benefitfocus are probably also playing a role in the improved score, Desplaces said, as well as Google's plans to build a data center in Mt. Holly. The region is measuring significant growth in the innovation-based industry, Desplaces said, proving that the area's economics is tied to more than real estate and tourism.

Ranking 11th in the study was the nearby region of Myrtle-Beach-Conway-North Myrtle Beach.

"Obviously, South Carolina has an overall positive climate for location, relocation and for businesses," Desplaces said. "The question is how we handle the allocation of resources and the coordinating effort as it pertains to growth."

As a whole, Southeast states fared particularly well in the study. Receiving the top ranking in the index was the town of Ocala, Fla; Wilmington, N.C., ranked second.

To view the index in full, click here

as provided by Charleston Regional Business Journal - By Molly Parker , Staff Writer