So Olympia is the eighth best place in America to do business and the best in our state. Who knew?
Reading the headline in the local paper prompted a mix of responses.
“Hey, that’s great!”
“Not when the Legislature is in town.”
“Those wacky guys at Forbes are at it again.”
All true. And, although the Olympia business climate merits discussion, I’m more interested in how we respond to these cookie-cutter national assessments, particularly when the news differs from local perceptions.
It puts us in a bind. We would choose to be neither cheerleader nor churl, neither Babbitt nor boor. Yet we’re often both, publicly celebrating undeserved success and privately cringing at capricious fortune.
A victory for the home team, even one produced by the uncalled foul at the buzzer, still goes in the books as a “W.” At the post-game party, no one buys drinks for the guy complaining about the unjust win. Team spirit demands a certain allegiance.
Washington politicians and business leaders believe Boeing was robbed. They’re happy in Alabama. No amount of congressional investigation into the Airbus tanker contract will alter the views of local fans.
It’s ever thus. Last week Forbes magazine produced its annual ranking of the best places for business and careers. Olympia placed eighth, just edging No. 9 Spokane. Seattle (20) and Tacoma (43) were the other Washington communities finishing in the top 50.
These are metro ratings and being the dominant city in a metro area may confer undeserved regional bragging rights. The Olympia metro area embraces most of Thurston County. To the extent we see a dynamic South Sound economy, we must talk about growth outside Olympia, which has yet to step up as the capitol city of a state coveting global acclaim. Similarly, growth in Everett, Snohomish County and east of Lake Washington accounts for much of the job and income gains in the Seattle region.
Community leaders pounced on the recognition.
“It’s a good place to have a career and … build a business,” said a Thurston County (Olympia) planner. In Spokane, the Chamber of Commerce executive said, “I think it’s phenomenal.”
No question, national accolades accelerate marketing momentum. The folks promoting economic development in Olympia, Spokane, and other ranked cities will tout the rankings as validation of community virtue to prospective investors.
Having been among those who questioned last July’s Forbes ranking of Washington as the fifth best state for business, I empathize with the guy missing the free rounds at the post-game party. But I’d like, gently, to raise a few concerns.
“Best places” rankings are invariably gimmicky, easily skewed by slight changes in the elements measured. Forbes looked at nine factors: job and income growth, migration trends, business and living costs, crime, educational attainment, four-year colleges, and cultural/recreational opportunities. It’s not clear how they weight them.
Looking at business costs, high-cost Olympia and Seattle rank No. 100 and No. 158 respectively, well below other top 20 cities. Good job growth and a well-educated population offset the cost liability. So far.
The cheerleader says, don’t cavil. We earned our points.
Maybe. Our relatively strong economy has nurtured an enviable quality of life. But strong economies are built on the decisions of business leaders to invest here, rather than elsewhere. The political environment — public policy — influences their preferences.
These rankings provide a rear-view mirror glimpse at regional vitality. Washington has enjoyed a great five-year run. But past performance is no guarantee of future results, as the investment guys say.
With the nation sliding further into recession, business costs weigh more heavily. Introducing the Forbes’ rankings, Kurt Badenhausen notes the credit crunch, “soaring commodity prices,” and high business taxes. He asks, “What is a chief executive to do?” And he answers, “Head south,” home to many high-ranking metros. Key success factors include low business costs and an educated labor supply.
In churlish response to the cheerleader, a critic notes Washington’s impending $2.4 billion budget shortfall, increased environmental regulation, and expanding, unfunded entitlement programs. Taxes and regulation threaten to handicap us just as the competition intensifies. Too many unearned wins produce complacency, guaranteeing future disappointment. We can’t afford that.
Celebrate the victories, but don’t be misled by them.
Richard S. Davis, vice president-communications of the Association of Washington Business, writes every other Wednesday. His columns do not necessarily reflect the views of AWB. His e-mail address is richardsdavis@gmail.com.
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