THE ALLURE OF SMALLER CITIES
By - Antony J. Michels

(FORTUNE Magazine) – Companies shopping for locations should consider a lesson car buyers learned years ago: Small to midsize models often do the job more efficiently than bigger, better-known alternatives. As growth of the labor force slows and the need for quality workers intensifies, more companies will place operations in smaller cities. Among those that caught FORTUNE's attention: Albuquerque, New Mexico; Appleton, Wisconsin; Colorado Springs; Fort Myers, Florida; Spokane, Washington; and Wichita, Kansas. Moran Stahl & Boyer surveys reveal that the overall quality and productivity of employees in these cities is significantly higher than in large cities, partly because of superior school systems. In Spokane (metropolitan area pop.: 363,078), schools are among the best in a state noted for exemplary education. Cost concerns also prompt companies to go to midsize cities like Wichita (493,251), where white-collar salaries average just over $19,000 a year, vs. the U.S. average of $25,326. Fort Myers (332,903), Albuquerque (509,950), and Colorado Springs (409,193) are all growing fast and offer ample labor. Fort Myers is diversifying its tourism-based economy; with a large elderly population and low wages, it seems attractive for back-office operations. Companies in small areas where the quality of life is high and the stress level low enjoy a stable work force. Neil Davenport, CEO of Cray Computer in Colorado Springs, says, ''We find that people often would rather stay in Colorado Springs than move to advance their careers -- which at times strikes me as odd.'' Smaller cities often earn high marks for employees' work ethic. In Appleton (317,429) absenteeism is markedly low -- and when Wisconsin's daunting winter sets in, employees have been known to go to work on snowmobiles.