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A new analysis suggests the traditional map of U.S. economic opportunity is being redrawn as demographic decline, climate risk and rapid advances in artificial intelligence reshape where businesses can thrive, Harvard Business Review writes.
Researchers behind the “Geography of Prosperity Index,” which evaluates 250 U.S. metro areas, argue that companies can no longer rely on familiar growth hubs or short-term economic indicators when deciding where to invest.
Instead, long-term competitiveness increasingly depends on how well regions align across five systems: population renewal, climate resilience, automation readiness, social cohesion and governance. Cities with strong talent pipelines, digital infrastructure and institutional stability are better positioned to absorb shocks and sustain growth. Others face compounding risks from aging populations, climate exposure and limited capacity to adapt.
The takeaway for executives: Location strategy is becoming a core business decision. Companies that evaluate geographic risk and opportunity as part of long-term planning—rather than an afterthought—will be better positioned to manage disruption and capture emerging growth.
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