New Economy cities: Huntsville eyes next launchpad for growth

More immediately, though, defense will continue to play a major role as the city prepares for an influx of up to 12,000 people in the next few years as a result of base consolidation by the Pentagon. In this case, Virginia’s loss will be Huntsville’s gain.

Martin Soler, an analyst at Moody’s Economy.com, says the effect of the base realignment will be felt throughout the area as demand increases for new schools, better roads, and more private-sector jobs. As long as living costs remain low, he envisions Huntsville growing “far above the national average” over the next decade.

Still, the federal government makes up 20 percent of the labor pool, leaving the area vulnerable to budget cuts. In addition, manufacturing continues to be a drag as consumers postpone big-ticket purchases like cars.

Location may also play a factor. Whereas Mobile, Ala., is a port city, allowing it to attract businesses like steel giant ThyssenKrupp, Huntsville is “a fairly remote area,” Mr. Soler says. Instead, the “Rocket City” will have to capitalize on its brainpower.

The city is putting $100 million into expanding the airport, $279 million into road projects, and is planning a “green initiative.” “If you look at our growth over the past five to 10 years, that’s exactly what I see on the horizon for the next 10 to 20 years,” says Brian Hilson, head of the local Chamber of Commerce.

Other cities:

1. Boston is magnet for high-skilled workers

2. Fort Collins, Colo., builds on clean tech

3. Houston aims to move beyond the oil age

4. A Seattle slew of advantages

5. The next boom cities overseas

Main story: Five cities that will rise in the New Economy

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