The Quad-Cities' low cost of living has placed it near the top of the heap in Forbes.com's annual ranking of Best Places for Business and Careers.
The rankings, released Thursday on Forbes.com, rated Davenport at No. 2 in the Cost of Living category among the 200 largest metropolitan areas. The area was ranked 97th overall with all categories combined.
Although Forbes.com names Davenport in the ranking, the 377,000 population figure indicates the survey looked at the entire Quad-City metropolitan statistical area.
The Web site's 11th annual ranking also judged metro areas on their colleges and education, crime, culture, income growth, job growth, migration and subprime mortgages. The Quad-Cities' next best showing was in the Cost of Doing Business category, in which it ranked 30th among the 200 cities. The area's lowest rankings were for educational attainment, 155th, and net migration, 156th.
"We're very pleased with the No. 2 ranking. We consider an affordable cost of living to be one of the Quad-City's assets," said Elaine Barreca, the vice president of communications for DavenportOne.
The high placement in the Cost of Doing Business ranking comes as no surprise though, she said. "Iowa has a very affordable cost of doing business. That helps us in retaining our existing businesses and ideally, in recruiting new businesses to our area."
Rick Baker, the president and chief executive officer of the Illinois Quad-City Chamber of Commerce, said the No. 2 affordable ranking is welcomed news, especially for businesses that are recruiting employees here or those considering the Quad-Cities. "Cost of living is a big consideration when you're looking at a move to another community for your career. You have to think ‘am I actually gaining by moving?' "
Likewise, a business considering a relocation "needs to know if it is a high cost-of-living place and how it will impact their employees and them as a business," he said.
But the ranking came as no surprise to Mark Hunt, a project manager at Bi-State Regional Commission, who works closely with providing data for the area's Cost of Living Index.
"We usually have a lower cost of living," he said, adding that index is developed using the costs of various goods such as fuel, groceries and clothing. "I'm happy to see it (the ranking). It shows this area has a lot of value and it's affordable to live here."
Baker agreed, adding that such a distinction will aid in business recruitment and in attracting new residents such as those possibly transferring from Georgia to the Rock Island Arsenal with the 1st Army. "That is good information for them to have. The best thing is it's not us saying this. It's Forbes saying it after their extensive research."
Given the economic climate, he said affordability is more important than ever. "People are very conscientious with their dollar. They realize if they are getting more for their dollar."
Another plus, Baker said is "Our low cost of living does not compromise our quality of life. We have a very high quality of life, but we're getting it at a low cost," he said, pointing to the wide array of cultural and entertainment choices.
"The places we're ahead of in the overall ranking might surprise people - Honolulu, Orlando, Salt Lake City and Milwaukee," Barreca said of the tourism destinations.
Davenport Mayor Bill Gluba said the top ranking is a reflection of the community's ongoing efforts to market and position itself as "the best environment for businesses."
"Our area provides a thriving environment for businesses located here and we are continually exploring opportunities to bring even more businesses to our area and, of course, focus on helping existing businesses, who are the backbone of our job base ...," he said.
Gluba said Davenport's efforts have not gone unrecognized. In 2007, the city received the U.S. Conference of Mayors Most Livable Small City in America Award. In 2008, DavenportOne was named Chamber of the Year. Together with the City of Rock Island, it earned the International Community Sustainability Award from the International City County Management Association.
Forbes.com ranked Raleigh, N.C., as the overall best place for business and careers for the third straight year. According to the Forbes.com report, the city's strengths of job growth, low business costs and a highly educated work force drove in to the top position.
In Iowa, Des Moines is ranked seventh and Cedar Rapids is ranked 42nd. Iowa City is ranked ninth in the Best Small Metros category.