A boom in Dixie St. George No. 2 for business

Red rocks and recreation are what put St. George on the map, but the Utah city now has something else to brag about.

According to Inc. magazine's "2006 Hottest Cities for Business" list, St. George ranks No. 2 among 393 U.S. cities for the best place to do business.

The magazine's rankings, in the May issue, are based on recent and long-term employment growth rates. St. George posted a one-year job growth rate of 7.9 percent and a five-year job growth rate of 38.2 percent, giving it an index score of 98.8 out of a possible 100, the magazine said.

Yuma, Ariz., ranked first in the nation. Logan came in at No. 21, and the Provo-Orem region was 40th. Muncie, Ind., ranked last at No. 393.

"The nation's newest entrepreneurial hotbeds are smaller communities found in places that have never before registered as business centers," the magazine said in a prepared statement. "Call it the revenge of the boondocks. For several years now, the nation's entrepreneurial hotbeds have been migrating from the major urban centers to smaller cities on the periphery."

Large cities, like New York, which ranked No. 292, did poorly. Boston came in at No. 343, and Philadelphia at No. 392.

Scott Hirschi, director of the Washington County Economic Development Council, said he was surprised at St. George's high ranking.

"I'm not even sure that I expected us to be listed," Hirschi said. "When we are highlighted in some sort of a national publication we can typically measure an increased activity level. I would anticipate the same thing here."

Hirschi said a common misconception of St. George is that the city has just a service-oriented economy.

"The largest employer is the school district," Hirschi said. "The largest private employer is Intermountain Healthcare. The next-largest employer is Wal-Mart. So the three largest employers are as solid as mother and apple pie."

Even as the largest employer, the school district represents only about 2 percent of Washington County jobs. More than 13 percent of Washington County's work force labors in the construction industry.

"To put it another way, we are not a company town," Hirschi said. "The economy is extremely strong."

Hirschi added that the area's senior population adds to the economy's strength. "Those folks' incomes are somewhat immune to what is going on either locally or nationally," Hirschi said. "Their spending power is pretty consistent.

"Certainly our economy is impacted generally in a positive manner by Las Vegas. But I think it goes beyond that. I think the Los Angeles basin, the Phoenix area and Salt Lake also definitely have an impact on us — Vegas probably more than any others because it is closer."