Latest news with #KenanInstituteofPrivateEnterprise
Yahoo
2 days ago
- Business
- Yahoo
Inside the success of America's growing cities like Phoenix, Nashville
Nashville and Phoenix landed high on a list of large U.S. cities expected to continue growing in 2025 even amid fears of a national recession. Controversial tariffs, immigration policies and shrinking federal spending have created uncertainty and may slow growth, but the top performing cities still are expected to continue to make gains, economist Gerald Cohen told the USA TODAY Network. "Job creation continues to look fairly healthy," he said. "Despite a lot of smoke, there wasn't a lot of heat on the economy." Cohen, chief economist of the Kenan Institute of Private Enterprise at the University of North Carolina, led the team of researchers who forecasted the top midsize and large cities that are projected to continue growing in the report "Empowering American Cities." The yearslong project is a partnership between the institute and Fifth Third Bank and, unlike many other published lists of growing cities, it takes a deeper dive into a variety of economic drivers beyond just population increases. Among large cities, Austin tops the institute's list of growing cities, while Nashville is listed as No. 5, largely due to its thriving music and entertainment industry as well as its status as a national health care hub. Phoenix, home to a hearty real estate market, landed at No. 10. Among midsize cities, Amarillo, Texas, took the top spot for projected growth, while Des Moines ranked fourth. Florida's Space Coast, referred to in the study as Palm Bay, took the No. 10 spot. A key driver for Des Moines is its position as a financial hub. The Space Coast is anchored by engineering, manufacturing and defense work. USA TODAY Network reporters who live and work in cities that made the list took a close look at their hometowns' unique paths to success — and how fellow residents have benefited or suffered along the way. The Kenan Institute team defined and analyzed "economic orbits," called Extended Metropolitan Areas, which can reach beyond the geographic borders of the U.S. Census' Metropolitan Statistical Areas. The orbits include cities, towns and counties with interlinked economies. Growing cities — including Phoenix and Nashville — have "exurbs" with jobs, homes and amenities up to 100 miles from the city center to attract a labor force that prefers working from home, according to the institute's findings. That's part of a post-pandemic trend expected to continue. Other factors driving the top cities' growth, according to the institute's findings, include: affordable housing, green space, the absence of a state income tax, walkable neighborhoods and warm weather. Cohen, also a research professor of finance, said it's too early to gauge the impact of ongoing policy changes initiated by President Donald Trump, including significant cuts to scientific research funding through the National Institutes of Health, which could impact Nashville, home to the corporate headquarters of HCA and research hospitals. Evolving immigration policies and historic tariffs, including on goods from Mexico and Canada, could impact supply chains and workforces, helping drive up the costs of cars and other products and slowing consumer spending. "We need foreign-born workers if we want to continue to grow the economy," Cohen said. "Research is very strong in saying that foreign-born workers are additives to the economy. They're doing jobs that we, the native-born population, wouldn't do." The project also examines a city's ability to attract and retain workers as well as their productivity. Nashville, known as Music City, has the nation's highest input-per-worker rate in the leisure and hospitality category, Cohen said. "It's double the U.S. productivity rate, and it's 20% higher than No. 2, which is Las Vegas," the economist said. In Nashville, the economic output, adjusted for inflation, is greater than $100,000 per worker in the leisure and hospitality fields, compared to the U.S. average of $50,000, Cohen said. Productivity gains are typically attributed to three things: better skilled people, either by hiring more skilled workers or by providing additional training for existing staff; upgraded technology or equipment; and innovation. Des Moines beat out New York City as the city with the largest percentage of its gross domestic product, or economic output, coming from the financial sector, Cohen said. Iowa's capital has a thriving market in banking and insurance, driving finance to capture a nearly 26% slice of its GPD, compared to the national average of just over 7%. Des Moines beat out all 150 cities studied. Florida's Space Coast, home to the Kennedy Space Center, is midsized but ranked No. 6 in terms of manufacturing durable goods out of all 150 cities studied. The area makes everything from boats and electronics to explosive-detecting robots for the military and materials for rockets that can withstand extreme environments. During the past decade, the Space Coast's manufacturing sector grew at an annual rate of nearly 9%, compared to the national average of slightly more than 1%, Cohen said. A robust commercial and residential real estate market along with a successful insurance sector help drive the economy in Phoenix. The area has the fifth largest real estate sector of the 50 large cities studied. Commercial and residential real estate constitutes more than 17% of the area's GDP, compared to the national average of less than 14%. April's median home price in the Valley of the Sun came in at $445,000, about $30,000 more than the national median existing-home price. The Phoenix area's population growth rate is more than 4% annually, double that of the national average. "What's notable about the area, it's got a nice combination of both influx of people and increases in productivity, which is driving the economy," Cohen said. "That's been the special sauce there." This article originally appeared on USA TODAY: Why Phoenix, Nashville, Des Moines, Space Coast are still up & coming
Yahoo
2 days ago
- Business
- Yahoo
Reporting on the ground in one of America's Evolving Cities
Anyone who's lived in Nashville for any length of time is familiar with the rapid pace of change here. So it's hardly a surprise the city landed on a list of regions that are projected to continue growing in the report "Empowering American Cities" from the Kenan Institute of Private Enterprise at the University of North Carolina. The report is a yearslong partnership between the institute and Fifth Third Bank, and while there are many lists of growing cities out there, this one goes beyond population statistics and incorporates a variety of economic drivers. Factors driving the top cities' growth, according to the institute's findings, include affordable housing, green space, the absence of a state income tax, walkable neighborhoods and warm weather. And while controversial tariffs, immigration policies and shrinking federal spending have created uncertainty and may slow growth, the top-performing cities still are expected to continue to make gains, according to the institute's chief economist Gerald Cohen. Still, the institute's insights served as a mere jumping off point for the USA TODAY Network project America's Evolving Cities. Journalists from across the country, who live and work in cities that made the list, took a close look at their hometowns' unique paths to success — and how fellow residents have benefited or suffered along the way. The Kenan Institute's report, along with insights from Cohen, provided an overview. Then the journalists filled in the picture from the ground in Phoenix, Des Moines, Nashville and Florida's Space Coast. They crisscrossed the suburbs, spoke with everyone from community leaders to working-class residents, dug through archival photos to illustrate their communities' evolution, and captured residents' connections with their home cities on video. The result is a comprehensive look at what it feels like to live in a growing city — the hope and tension, the nostalgia and excitement. Have a Nashville story to share? Reach city editor Liz Schubauer at lschubauer@ This article originally appeared on Nashville Tennessean: Reporting on the ground in one of America's Evolving Cities
USA Today
2 days ago
- Business
- USA Today
Inside the success of America's growing cities like Phoenix, Nashville
Inside the success of America's growing cities like Phoenix, Nashville Nashville and Phoenix landed high on a list of large U.S. cities expected to continue growing in 2025 even amid fears of a national recession. Controversial tariffs, immigration policies and shrinking federal spending have created uncertainty and may slow growth, but the top performing cities still are expected to continue to make gains, economist Gerald Cohen told the USA TODAY Network. "Job creation continues to look fairly healthy," he said. "Despite a lot of smoke, there wasn't a lot of heat on the economy." Cohen, chief economist of the Kenan Institute of Private Enterprise at the University of North Carolina, led the team of researchers who forecasted the top midsize and large cities that are projected to continue growing in the report "Empowering American Cities." The yearslong project is a partnership between the institute and Fifth Third Bank and, unlike many other published lists of growing cities, it takes a deeper dive into a variety of economic drivers beyond just population increases. Among large cities, Austin tops the institute's list of growing cities, while Nashville is listed as No. 5, largely due to its thriving music and entertainment industry as well as its status as a national health care hub. Phoenix, home to a hearty real estate market, landed at No. 10. Among midsize cities, Amarillo, Texas, took the top spot for projected growth, while Des Moines ranked fourth. Florida's Space Coast, referred to in the study as Palm Bay, took the No. 10 spot. A key driver for Des Moines is its position as a financial hub. The Space Coast is anchored by engineering, manufacturing and defense work. USA TODAY Network reporters who live and work in cities that made the list took a close look at their hometowns' unique paths to success — and how fellow residents have benefited or suffered along the way. Examining broader regions The Kenan Institute team defined and analyzed "economic orbits," called Extended Metropolitan Areas, which can reach beyond the geographic borders of the U.S. Census' Metropolitan Statistical Areas. The orbits include cities, towns and counties with interlinked economies. Growing cities — including Phoenix and Nashville — have "exurbs" with jobs, homes and amenities up to 100 miles from the city center to attract a labor force that prefers working from home, according to the institute's findings. That's part of a post-pandemic trend expected to continue. Other factors driving the top cities' growth, according to the institute's findings, include: affordable housing, green space, the absence of a state income tax, walkable neighborhoods and warm weather. Cohen, also a research professor of finance, said it's too early to gauge the impact of ongoing policy changes initiated by President Donald Trump, including significant cuts to scientific research funding through the National Institutes of Health, which could impact Nashville, home to the corporate headquarters of HCA and research hospitals. Evolving immigration policies and historic tariffs, including on goods from Mexico and Canada, could impact supply chains and workforces, helping drive up the costs of cars and other products and slowing consumer spending. "We need foreign-born workers if we want to continue to grow the economy," Cohen said. "Research is very strong in saying that foreign-born workers are additives to the economy. They're doing jobs that we, the native-born population, wouldn't do." Productive workforces The project also examines a city's ability to attract and retain workers as well as their productivity. Nashville, known as Music City, has the nation's highest input-per-worker rate in the leisure and hospitality category, Cohen said. "It's double the U.S. productivity rate, and it's 20% higher than No. 2, which is Las Vegas," the economist said. In Nashville, the economic output, adjusted for inflation, is greater than $100,000 per worker in the leisure and hospitality fields, compared to the U.S. average of $50,000, Cohen said. Productivity gains are typically attributed to three things: better skilled people, either by hiring more skilled workers or by providing additional training for existing staff; upgraded technology or equipment; and innovation. Surprising finance hub Des Moines beat out New York City as the city with the largest percentage of its gross domestic product, or economic output, coming from the financial sector, Cohen said. Iowa's capital has a thriving market in banking and insurance, driving finance to capture a nearly 26% slice of its GPD, compared to the national average of just over 7%. Des Moines beat out all 150 cities studied. Robots help propel this city's growth Florida's Space Coast, home to the Kennedy Space Center, is midsized but ranked No. 6 in terms of manufacturing durable goods out of all 150 cities studied. The area makes everything from boats and electronics to explosive-detecting robots for the military and materials for rockets that can withstand extreme environments. During the past decade, the Space Coast's manufacturing sector grew at an annual rate of nearly 9%, compared to the national average of slightly more than 1%, Cohen said. Selling the Valley of the Sun A robust commercial and residential real estate market along with a successful insurance sector help drive the economy in Phoenix. The area has the fifth largest real estate sector of the 50 large cities studied. Commercial and residential real estate constitutes more than 17% of the area's GDP, compared to the national average of less than 14%. April's median home price in the Valley of the Sun came in at $445,000, about $30,000 more than the national median existing-home price. The Phoenix area's population growth rate is more than 4% annually, double that of the national average. "What's notable about the area, it's got a nice combination of both influx of people and increases in productivity, which is driving the economy," Cohen said. "That's been the special sauce there."
Miami Herald
04-04-2025
- Business
- Miami Herald
Trump's tariff plan peddles an illusion that will bring real economic pain
Donald Trump's announcement on Wednesday that he will impose high tariffs on imports on virtually all imports sent trading partners into a tizzy and the U.S. stock market into a dive. It should also send Trump supporters back to an Aug. 14 speech on the economy that candidate Trump delivered in Asheville, North Carolina. Before a boisterous audience who greeted him with chants of 'USA!, USA!,' Trump declared, 'From the day I take the oath of office, we will rapidly drive prices down and make America affordable again.' He didn't stop there. 'Vote Trump and your incomes will soar,' he said. 'Your savings will grow. Young people will be able to afford a home and we will bring back the American dream bigger, better and stronger than ever before.' How is that going, USA? The day after Trump unveiled his tariff plan, the Dow fell by 1,300 points, an international trade war began to take shape, and consumers and businesses alike grew nervous about purchases and investments. Meanwhile, the nonpartisan Tax Foundation estimated the tariffs will cost the average U.S. household $2,100 per year. Fears are growing about a rise in inflation, a possible recession and even a combination of the two — stagflation. Trump's reckless commitment to a 19th century notion of walling off the U.S. economy will come with a cost for North Carolina. Gerald Cohen, chief economist of the Kenan Institute of Private Enterprise and a professor at the Kenan-Flagler Business School, gave a two-word summary of the tariffs' impact on North Carolina: 'Not good.' The state's economic diversity will buffer the impact, he said, but some areas are vulnerable. The Triad region, for instance, ranks among the most manufacturing-based metro areas in the nation and will face higher costs from its trade partners, he said. 'This is not the set of policies you want to improve our manufacturing,' he said. 'The costs are going to be higher and the benefits are going to be low.' Cohen said tariffs will affect markets for North Carolina's agricultural products and will increase costs for materials used by the state's biotech industry. But the broader damage, he said, will come from the economic destabilization and confusion Trump has created 'The impact of the uncertainty and the loss of confidence is in some respects more worrying than the direct impact of the tariffs,' he said. 'If you're looking to buy a new house or a new car or a refrigerator and you don't need to buy it, I think people are questioning the necessity of doing that.' Resolute Trump backers are willing to trust his instincts on tariffs, but most economists say his ideas don't fit with a global economy and will only drive up the costs he pledged to bring down. What it will take for those who voted for Trump but are outside the MAGA bubble to realize two things: First, the denigration of Bidenomics was wrong. The economy under President Joe Biden grew strong and stable and likely would still be under a Democratic president. Those who voted to return Trump to office based on their grocery bill may be about to experience much deeper and longer lasting financial hardships. Second, Trump is taking the nation down a ruinous path. His cuts in the federal workforce are crippling vital services and oversight. He's ignoring due process and chilling free speech. He's ended U.S. aid to the world's poorest nations. He's alienated allies. Now he's needlessly damaging the national and global economies. Trump tells us not to see what we see. We should see what he says. In his Rose Garden remarks on Wednesday, he said his tariff plan will yield trillions of dollars and be the golden door to what he proclaims will be a 'golden age.' 'Now it's our turn to prosper and in so doing use trillions and trillions of dollars to reduce our taxes and pay down our national debt and it will all happen very quickly,' he said. 'With today's action we are finally going to be able to make America great again, greater than ever before.' Sure, just like he said in Asheville.
