Report ranks Rochester bottom in business, analysts say report is flawed

Analysts say it's a false outlook on Rochester; a report released by “Marketwatch” says Rochester is the least likely place for business. The study ranked Rochester 49th out of 50 U.S. cities, only ahead of New Orleans. The study said if Hurricane Katrina had not ravaged New Orleans, Rochester would rank 50th. The study was based on population growth and job loss.

At a summit on the state of Rochester’s economy on Wednesday, local analysts commented on the Marketwatch study, saying the analysis is flawed. The report did not account for tourism and the job loss in the Rochester area was largely due to Kodak layoffs.

"We all know the manufacturing story and the downsizing of Kodak and other large employees, but I don't know if the story about the other sectors in Rochester, health care, education, business services, financial services is communicated and out there,” says Gary Keith, vice president and regional economist for M & T Bank.

“The focus of this survey is that we've lost a significant amount of jobs, well, where have we lost those jobs from, we lost them from primarily one employer,” says Sandy Parker, chief operating officer of the Rochester Business Alliance.  

“do we have issues in Upstate New York? Absolutely we do.”

But, Parker says Rochester's new economy is no longer Kodak, rather it's based on educational institutions, a strong financial sector and health care.

“The University of Rochester and Via Health, those organizations are hiring like mad.  We are undergoing a shift in our economy to one that is more service-based but also knowledge-based.”

Parker also pointed to Rochester’s continued strong growth among small and mid-sized businesses. Paetec and Harris Communications are both mid-sized businesses which are currently performing at pace with similar businesses across the nation. However, Rochester also has its share of small businesses which are booming, some have become anchors of the community.

“It is unique; it is one-of-a kind. We are an American Craft Gallery. We sell handmade fine craft from all over the US and Canada,” says Nicole Delgrosso, operations manager at Craft Company #6 in Rochester. The store has been in business for 27 years.

“Our focus is and as long as I've been here,” says Delgrosso, ”and as long as the store has been around has been customer service and a level of customer service you don't get at big box kind of stores.”

Craft Company has kept a steady chain of clients over the last two decades and had its customer base further buoyed just a few years ago by the Rochester City initiative “Art Walk”. While the artisan store is an anchor business on University Avenue, it is still a small business, with five to 15 employees depending on the season.

“Your job is never just one job,” says Delgrosso, “customer service and maintain the website and doing operational kind of stuff and office kind of stuff, everybody kind of does a little bit of everything.”  

While there are plenty of incentives for new business owners to start a company in Rochester, leaders say there should be other incentives for businesses like Craft Company #6 that have weathered Rochester economic test of time.

“I think we do need to take a re-look at the incentives that are currently in place and make sure that we do address the needs of existing employers,” says Parker.