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  • 1.RankingsDemystified WithForbesKurtBadenhausen& MorganBrennan Moderator:SteveDuncan, DevelopmentCounsellorsInternational(DCI)

2. #rankingsdemyst PopularRankings BestPlacesforBusiness&Careers BestStatesforBusiness BestPlacestoRetire BestPlacestoLive BestStatesforBusiness BestStatesforBusiness BestCities,States&Places 3. #rankingsdemyst OurGuestsToday KurtBadenhausen Forbes @kbadenhausen SeniorEditor 15YearsatForbes SportsBusiness AuthorofBestPlacesfor Business&Careers&Best StatesforBusiness MorganBrennan Forbes @MorganLBrennan RealEstateReporter 4YearsatForbes FoxNewsContributor AuthorofAmericas CoolestCities&Americas FastestGrowingCities Moderator SteveDuncan,DCI,@sdunc33 AccountDirector 9YearsatDCI Rankings&PRSpecialist 4. #rankingsdemyst 5. #rankingsdemyst BestPlacesforBusiness&Careers Started1999inconjunctionwiththeMilken Institute Introducednewmethodologyin2003 Rank200largestMSAsanddivisionsby population Methodologylooksatjob/income/economic growth,costs,colleges,crime,educational attainment,migrationandculture/recreation Sources:Moodys,USCensus,BertSperling 6. #rankingsdemyst BestPlacesMethodology MoodysBusinessandLivingCostIndexes 1year,5year,3yearprojectedjobgrowth 5yearincomegrowth 3yearprojectedeconomicgrowth 5yearnetmigrationpercapita Crime&culture/recreationfromSperlings 4yearcollegeattainment Highlyranked4yearcollegesinareabasedon Forbescollegerankings 7. ForbesBestMetroAreasforBusiness Business Job Projected Proj. gross Net College costs growth job growth metro prod. migration attainment Population Rank Metro area rank rank rank rank rank rank (000s) 1 Provo, UT 33 30 24 14 54 28 543 2 Raleigh, NC 29 15 10 25 2 13 1,169 3 Fort Collins, CO 66 23 16 30 24 6 306 4 Des Moines, IA 37 34 46 91 43 54 581 5 Denver, CO 130 45 22 62 36 18 2,603 6 Ogden, UT 27 39 62 27 53 73 558 7 Lincoln, NE 9 28 63 52 101 39 307 8 Dallas, TX 160 18 12 5 44 43 4,357 9 Austin, TX 165 3 4 1 3 16 1,789 10 Nashville, TN 32 41 52 63 20 79 1,621 11 Omaha, NE 50 36 86 102 102 45 878 12 Oklahoma City, OK 17 24 85 72 47 109 1,279 12 San Antonio, TX 21 11 11 20 14 130 2,201 14 Durham, NC 94 31 59 48 23 11 514 15 Fort Worth-Arlington, TX 108 16 7 4 27 115 2,187 16 Seattle, WA 161 53 88 24 35 14 2,697 17 Asheville, NC 10 67 84 81 17 82 430 18 Charlotte, NC 92 40 55 26 7 52 1,800 19 Fayetteville, AR 40 59 13 158 18 133 475 20 Houston, TX 185 8 6 3 25 99 6,103 Sources: Moody's Analytics; U.S. Census. 8. #rankingsdemyst TopRankedPlaces 2006:Albuquerque,Raleigh, Houston 2007:Raleigh,Provo,Boise 2008:Raleigh,Boise,FortCollins 2009:Raleigh,FortCollins,Durham 2010:DesMoines,Provo,Raleigh 2011:Raleigh,DesMoines,Provo 2012:Provo,Raleigh,FortCollins 2013:Willappearin9/2issue(8/7 online) 9. #rankingsdemyst 10. #rankingsdemyst BestStatesforBusiness Started2006 Rank50statesacross35metrics 6maincategories:businesscosts,laborsupply, regulatoryenvironment,economicclimate, growthprospects,qualityoflife Sources:Moodys,Census,BertSperling,FBI,Tax Foundation,MercatusCenter,SBA,BEA,BLS, UnitedHealthFoundation,PollinaCorporateReal Estate,Dept.ofEd.,PricewaterhouseCoopers 11. #rankingsdemyst BestStatesMethodology BusinessCosts:MoodysCostIndexonlabor,taxes,energy,plusTax Foundationindex LaborSupply:college/HSattainment,5yearnetmigration,5year projectedpop.growth Regulatory:MercatusFreedominthe50States,Pollinataxincentive study,righttowork,Moodysbondrating,transportation EconomicClimate:5yeargrowthforincomes,jobs,GSP;avg.5 yearunemployment,currentunemployment,#ofbigcompany headquarters GrowthProspects:5yearprojectedgrowthforincomes,jobs,GSP; VCinvestments;businessopeningsandclosings QualityofLife:Poverty&crimerates,costofliving,schooltest performance,healthofthepopulous,colleges,culture/leisure opportunities,temperature. 12. ForbesBestStatesForBusiness Business Labor Regulatory Economic Growth Quality Gross State Product Overall 2011 costs supply environment climate prospects of life 5-year rank rank State rank rank rank rank rank rank ($bil) change 1 1 Utah 12 4 6 6 9 15 $124 2.3% 2 2 Virginia 22 2 1 10 18 4 429 0.7 3 4 North Dakota 3 15 18 2 5 19 40 6.3 4 3 North Carolina 2 3 3 21 12 34 440 0.8 5 5 Colorado 32 1 18 14 4 9 264 1.0 6 8 Nebraska 4 27 8 3 37 16 94 1.4 7 6 Texas 23 12 15 1 3 33 1308 2.5 8 11 Georgia 24 6 2 40 11 37 419 -0.2 9 13 Oklahoma 7 36 14 4 18 42 155 1.1 10 10 Iowa 8 40 9 13 40 13 149 1.2 41 39 California 43 30 40 37 1 25 1,959 -0.1 42 40 Wisconsin 35 39 30 29 43 10 255 -0.1 43 32 New Mexico 30 28 33 32 22 49 79 0.4 44 45 Vermont 45 19 49 31 46 14 26 0.0 45 43 West Virginia 13 49 47 19 48 39 67 1.2 46 46 Mississippi 18 48 27 36 50 47 98 0.3 47 47 Michigan 38 50 21 48 40 24 385 -1.7 48 49 Hawaii 50 21 48 38 35 30 67 -0.3 49 48 Rhode Island 41 38 50 49 28 18 50 -0.6 50 50 Maine 40 34 46 44 49 17 52 -0.6 Sources: Moody's Analytics; Pollina Corporate Real Estate; Tax Foundation; Sperling's Best Places; Mercatus Center; Census Bureau; SBA; FBI; Dept. of Education; Forbes. 13. #rankingsdemyst TopRankedStates 2006:Virginia,Texas,NC,Utah 2007:Virginia,Utah,NC,Texas 2008:Virginia,Utah,Washington, Texas 2009:Virginia,Washington,Utah, Colorado 2010:Utah,Virginia,NC,Colorado 2011:Utah,Virginia,NC,North Dakota 2012:Utah,Virginia,NorthDakota, NC 2013:WillappearinDecember 14. #rankingsdemyst HowCommunitiesCanGetInvolved Placesprofiledinmagazine:Houston(2012); Detroit(2011);collegetowns(2009); Chattanooga,DesMoines(2008),Spokane,Rome (2007);Albuquerque,GrandForks(2008) ReinventingAmericaseriesinmagazineand onlinelaunchedin2012 BestStatestypicallyonlineonly Othercontent:videoswithmayorsorgovernors; opedfromMichiganGov.RickSnyder 15. SoWhatGoes IntoRankings? 16. #rankingsdemyst Definition:Themostimportantaspecttocreatingany rankedlist:Howdoyoudefinethetopicyouarelookingto quantify?Whatkindoffactorsorconceptscontributetothat definition? Data:Howdoyoumeasureyourdefinition?Whatdata existsandhowthoroughisit?Doesitcomefromatrusted source?Isitharddata,meaningnumbersandfactsthat havebeenresearchedandproven?Orisitsoftdatawhichis qualitativeinnature,opinionsorpopularsentiment measuredinsurveysandpolls? 17. #rankingsdemyst Consistency:Isallofyourdatameasuredwithinthesame geographicboundaries?Yourmeasurementsneedtobe standardizedtoensureyouarerankingeverythingevenly acrossthesamesamplesize.(Ex:MSAvs.CityLimits) Accuracy:Areyouutilizingyourdatacorrectly?Areyou readingthefineprintorfootnotes?Mostimportant,have youcontrolledforvariablesthatskewresults(ex:absolute measurementsv.percapitameasurements;rollingaverage foradatasetsubjecttoregularchanges) 18. #rankingsdemyst 19. #rankingsdemyst CoolestCitiesMethodology Definition:CoolisdefinedbyMerriamWebstersdictionaryasvery good;fashionable. Data:Weused7metrics. 1.EntertainmentOptionspercapita(museums,festivals,theaterandconcertvenues) SperlingsBestPlaces 2.RecreationalOpportunitiespercapita(greenspace,thecostandnumberofoutdoor activities,numberofproandcollegesportsteams) SperlingsBestPlaces 3.RestaurantsandBarspercapita(focusingexclusivelyonthelocallyownedbusinesses ratherthanchainrestaurants) SperlingsBestPlaces 4.CulturalDiversity(DiversityIndexmeasuringthelikelihoodofmeetingsomeoneofa differentraceorethnicity) SperlingsBestPlaces 5.MedianAge(higherrankingtiedtolowerages) U.S.CensusBureau 6.NetMigration(numberofpeoplerelocatingin2011) MoodysAnalytics 7. UnemploymentRate BureauofLaborStatistics Consistency:WemeasuredourgeographicentitiesbyMetropolitan StatisticalArea(MSA),asdefinedbytheOfficeofManagement&Budget, lookingatthe65largestMSAs. 20. #rankingsdemyst AmericasCoolestCities 5.Seattle,WA 4.Dallas,TX 3.LosAngeles,CA 2.Washington,D.C. 1.Houston,TX 21. #rankingsdemyst 22. #rankingsdemyst FastestGrowingCitiesMethodology Definition:Socalled Boomtowns,orthefastestgrowinglargemetro areasintermsofbothpopulationandeconomy. Data:Weused6metrics. 1.&2.PopulationGrowth(netgrowthfor2012andprojectedgrowth for2013) MoodysAnalytics 3.JobGrowth(2012) MoodysAnalytics 4.GrossMetroProductGrowth(localeconomicgrowthrate,2012) MoodysAnalytics 5.UnemploymentRate BureauofLaborStatistics 6.Income(mediansalariesforcollegeeducatedworkers) Payscale Consistency:WemeasuredourgeographicentitiesbyMetropolitan StatisticalArea(MSA),asdefinedbytheOfficeofManagement&Budget, lookingatthe100largestMSAs. 23. #rankingsdemyst AmericasFastestGrowingCities 5.SaltLakeCity,UT 4.Raleigh,NC 3.Dallas,TX 2.Houston,TX 1.Austin,TX 24. #rankingsdemyst LessonsLearnedFromRankings ItsAllAboutTheNumbers Yourlistisonlyasgoodasthedatayouuse: 1. Newness. Howfreshthatinformationishasahugeimpact ontheresults(ex:homeprices;Censusdata) 2. Size.Howlargethegeographicentitiesare(NewYorkMSAis vastw.manysuburbsaffectingdatavs.CityDivisionoreven MetropolitanDivision);howlargethesamplesizeis(comparing 100citiesv.20cities) ListsEvolve 1. Subjectivity.Everyranking,nomatterthedata,isgoingtobe subjectivebecauseitrestsonyourdefinition.CoolestCitiesis theultimateexample. 2. Change.Youcanalwaysalterthemethodology orimprove uponitinfutureincarnations.Againagreatexampleis CoolestCities. 25. #rankingsdemyst StandoutCities LoneStarMetros:Houston;Dallas;Austin; SanAntonio FlyoverCountryMetros:Boise,ID;Denver, CO;OklahomaCity,OK;Provo,UT;SaltLake City,UT;Minneapolis,MN;Indianapolis,IN SoutheasternMetros:Raleigh,NC;Charlotte, NC;Washington,D.C. 26. #rankingsdemyst Takeaways Stronglocaleconomicdata:Dominateswhenit comestoBestCitieslists,especiallyforabusiness centricoutletlikeFORBES.Perhapsnotsurprisingly, areasthathavefosteredbusinessfriendly environments,forexamplelowtaxes,Righttowork legislation,lessregulationshavetypicallyperformed bettereconomicallyinthedownturn. Techhubs:Everycitywantstobeoneandthey should.Strongcorrelationbetweencitiesfacilitating localtecheconomies andstartupfriendlybusiness environmentsingeneral andhighrankingsonlists. 27. #rankingsdemyst Takeaways YoungandRestless:Liketech,citieswithlargeyoung c