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Central New York’s Rising Star

Syracuse, NY—once known as “The City that Salt Built”—is now building its economy on the services sector, and has experienced substantial growth lately thanks to several major expansions.

Byline: Michelle Janowitz

Syracuse Average Construction CostsLocated in Onondaga County, Syracuse—the geographic center of New York State—stands out as the economic epicenter of the central New York region. The economy in Syracuse was built on the salt industry and later became reliant on the manufacturing sector for much of the city’s history. But as this sector has steadily declined over the past few decades, Syracuse has been working to cultivate the services industry as a key growth sector. Call centers and back office centers, finance, insurance, real estate, and wholesale and retail trade are all growing components of the service industry in the city. Among the fast-growing segments of the service economy in Syracuse are the healthcare industry and the professional and business services industry.

AXA Financial, Inc.’s expansion announcement last year came as a boon to Syracuse’s growing services sector. After taking over Mutual of New York, this financial services company announced it will create around 300 new jobs, as well as retain its established workforce of 700 at its current facility located in downtown Syracuse.

Throughout 2005, Syracuse continued to gain jobs at a faster rate than the previous year, and all sectors grew except for government and manufacturing, though the latter reversed its trend in November by growing slightly (200 jobs net). Non-farm employment increased by 2.3% (11,200 jobs), with goods-producing industries up 5.8% and service-providing industries adding 1.7%.

Several area high-tech and knowledge-based companies reported significant growth, with several among them making major announcements, including Lockheed Martin Naval Electronics and Surveillance Systems-Radar Systems, which won a $625 million contract to design radar systems for a new air defense system. Bristol-Myers Squibb Company also recently completed a $61 million expansion associated with the development of two potential medicines, and Syracuse Research Corporation received a $550 million contract to produce a device that will be used for defense purposes. The latter company added 160 new jobs in 2004, 200 in 2005, and 15,000 square feet to its facility.

Syracuse Fast Facts:
  • Syracuse-Auburn CSA* (2003): $28,041
  • ACCRA Cost of Living Index (3rd Quarter ‘05): 98.6
  • Onondaga County Unemployment Rate (Oct. ‘05): 4.0%
  • Syracuse-Auburn CSA* Unemployment Rate (Oct. ‘05): 4.2%
  • Syracuse-Auburn CSA* Labor Force (Oct. ‘05): 376,200

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