For some Americans, the mere mention of Utah is reminiscent of images of Mormons and skiing – not a tech boom. That year, the Milken Institute named Provo, Utah, the Top Performing City (BPC) in the United States. And the usual favorites have dried up: San Francisco and San Jose fell from the “Top 5” to 22 and 24 respectively.
Founded in 1991 by Mike Milken, the Milken Institute is primarily a nonprofit that aims to raise funds to help people around the world lead meaningful lives. Since 1999, the institute has published an annual index with the Center for Regional Economics, a research-based organization that seeks ways to encourage job and industry growth. The index divides cities into two sections: large and small. Provo is one of the biggies; The top performing small town is Idaho Falls, Idaho.
How they get on the leaderboard
The BPC explained the ranking of cities as follows: “A results-based set of metrics – including job creation, output growth and wage increases, particularly in high-tech sectors – to assess the relative performance of Metropolitan Statistical Regions (MSAs) and Metropolitan Divisions (MDs) in the United States. The aim of the index is to help readers rate how well these cities are promoting economic vitality compared to their competitors. “In short, the BPC takes several economic factors into account to see how each city compares to others across the country.
In 2020, Provo took second place in the top tier of major cities. This year, however, the city of Utah fought its way to first place. The BPC writes that Provo earned its title because it “ranked number one in both one- and five-year job growth, while also ranking high in high-tech GDP concentration and number of high-tech industries occupies “. The index explains that cities in Central American states boomed as many tech giants migrated from Silicon Valley, including Provo.
The university town is home to bright, ambitious students
The fact that Brigham Young University is in Provo is another success factor. The BPC writes that the university “provides research support, highly skilled graduates, and stable employment,” which enables the city to prosper. Over the past two decades, the region has seen phenomenal growth in the technology sector based on STEM talent graduates from Brigham Young University. “
Large tech companies in the region
The Utah mountains have also helped keep tech freaks out of the California sun. Because of the boom and landscape, Provo has been referred to as the “Silicon Slopes”. Successful companies like Qualtrics, Vivint, and SmartCitizen are some of the biggest names that are taking off near the ski-ready mountains. BPC notes that while Provo is one of the most expensive cities in Utah to rent a property, it is still a lot cheaper than San Francisco.
If Provo is to keep its number 1 spot, they need to find a way to make their home prices more affordable compared to other, less expensive cities. In the meantime, the city should be happy about her performance. Watch out for Silicon Valley, Provo will pick you up.
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