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Meteoric Growth in the West
Recent accolades show Reno, NV as a potential growth center in the only state to gain manufacturing jobs between 2000 and 2003.

By Karim Khan

Nevada, like its regional neighbors Arizona and Colorado, is growing its population at a remarkable rate. Much has been made of the population and housing boom in Las Vegas (The New York Times ran a series on the topic earlier this year), but there are signs that Reno, NV is poised for similar growth.

Men's Journal ranked Reno eighth among cities of similar size in its "America's 50 Best Places to Live" ranking, published in the June 2004 issue.

That ranking was released just days after Forbes named the Reno-Sparks region as the 25th best place to do business in the U.S. In the past year, Reno has come out toward the top of other national rankings; Inc. ranked Reno as sixth among mid-sized cities in its March 2004 "Top Cities for Doing Business" article, and TIME named Reno as among America's hottest cities in which to find jobs in November 2003.

REACHING FOR CALIFORNIA

Pacific Coast Flange, the West Coast's largest importer and manufacturer of steel flanges used by municipal water districts to deliver water, is just one example of a company that has left California for Nevada. According to the Economic Development Authority of Western Nevada (EDAWN), the company cited escalating workers' compensation rates as the top reason for moving from the Golden State for the Silver State. The company is saving more than 300% in its workers' compensation rates by moving its manufacturing operation from Ukiah, CA, to Moundhouse, NV in Lyon County.

The company considered Portland, OR, Seattle, and Las Vegas before deciding on the 25,000-square-foot facility in Moundhouse. "We're moving 20 employees from California, many of whom are qualifying for the first time to purchase homes," says Mike Fite, Pacific Coast Flange president and CEO. "That says a lot about why we chose to move to Nevada." Fite also contends that moving to Nevada will save the company approximately 50% in monthly utilities, and that freight costs will be less.

Companies like Pacific Coast Flange are being targeted by a series of advertising and promotional campaign put on by the state, aimed at capturing dissatisfied California businesses. The latest campaign, unveiled in October, is called "Will Your Business Be Terminated?" From 2003 to the present, 38 California companies relocated or expanded to Nevada. The net result was 1,500 jobs from projects including research and development, manufacturing, and corporate headquarters. According to Bureau of Labor statistics, Nevada is the only state that gained manufacturing jobs from 2000 to 2003 with a 2.1% increase in jobs.

NEVADA FAST FACTS

• Population (2003): 2,241,154
• Largest Cities (2003): Las Vegas, 517,017; Henderson, 214,852; Reno, 193,882; North Las Vegas, 77,295
• Targeted Industries: Plastics, medical technology, high-tech, and manufacturing
• Key Incentives: Business tax abatement, Train Employees Now program