{"id":46932,"date":"2021-03-04T16:38:05","date_gmt":"2021-03-05T00:38:05","guid":{"rendered":"\/us\/en\/blog\/?p=46932"},"modified":"2023-01-18T03:28:59","modified_gmt":"2023-01-18T11:28:59","slug":"companies-are-moving-what-does-this-mean-for-work","status":"publish","type":"post","link":"\/us\/en\/blog\/companies-are-moving-what-does-this-mean-for-work\/","title":{"rendered":"Big companies are relocating. What&#8217;s next?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Miami\u2019s mayor <\/span><a href=\"https:\/\/www.nbcnews.com\/business\/business-news\/tech-flight-why-silicon-valley-heading-miami-austin-texas-n1255330\"><span style=\"font-weight: 400;\">Francis Suarez<\/span><\/a><span style=\"font-weight: 400;\"> is suddenly fielding calls from top corporate executives. Recently, he\u2019s spoken with Tesla CEO Elon Musk, Twitter CEO Jack Dorsey, and <\/span><a href=\"https:\/\/www.bloomberg.com\/news\/newsletters\/2021-01-20\/miami-s-mayor-is-trying-to-seize-its-tech-moment?sref=7mwUMHq1\"><span style=\"font-weight: 400;\">Google CEO Eric Schmidt<\/span><\/a><span style=\"font-weight: 400;\">, among others. In addition, Palantir\u2019s Chairman Peter Thiel recently bought a multi-million mansion in Miami. The city also just named its first Chief Technology Officer, who Suarez says will help streamline bureaucratic procedures for high-tech firms in Miami.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Oracle recently announced it\u2019s moving its corporate headquarters from Silicon Valley to Austin. It says the move will position the company for growth and provide a \u201cmore modern approach to work\u201d by offering employees flexibility in where and how they work.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Among others:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Hewlett Packard Enterprise is moving its corporate headquarters from San Jose to outside Houston.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Elon Musk moved to Texas.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Charles Schwab recently moved to Westlake, Texas.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Toyota, Samsung, and McKesson all recently relocated to Dallas-Forth Worth.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.rei.com\/newsroom\/article\/rei-co-op-completes-sale-of-bellevue-washington-headquarters\"><span style=\"font-weight: 400;\">REI Co-op<\/span><\/a><span style=\"font-weight: 400;\"> sold its corporate campus in Bellevue, Washington.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It\u2019s not just the big players either. QuestionPro, a startup from San Francisco, moved its headquarters to Austin. Others are choosing to start there altogether.<\/span><\/p>\n<h2><b>What\u2019s driving companies to relocate?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">There are multiple reasons so many companies are researching and making moves that are taking them beyond Silicon Valley and the Bay Area.<\/span><\/p>\n<p><b>1. Taxes<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Some companies move to lessen their tax burden, which can vary quite a bit around the country. Forty-four states and the District of Columbia levy a state <\/span><a href=\"https:\/\/www.taxpolicycenter.org\/briefing-book\/how-do-state-and-local-corporate-income-taxes-work\"><span style=\"font-weight: 400;\">corporate income tax<\/span><\/a><span style=\"font-weight: 400;\">, ranging from North Carolina\u2019s 2.5 percent to Iowa\u2019s 12 percent. The rest don\u2019t charge a state corporate tax at all.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">California\u2019s personal income tax rates are among the highest in the nation, whereas neither Florida nor Texas have personal income taxes. California is ranked 48<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> in the country in terms of <\/span><a href=\"https:\/\/www.hoover.org\/research\/california-businesses-leave-state-thousands\"><span style=\"font-weight: 400;\">business climate<\/span><\/a><span style=\"font-weight: 400;\"> and regulatory burdens.\u00a0<\/span><\/p>\n<p><b>2. New markets<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Sometimes, a move to a new location is a business opportunity as well as a corporate logistical move. Perhaps business slowed down or even started to decline in the original location. Making a strategic move to a different, carefully chosen location can be a smart response.\u00a0\u00a0<\/span><\/p>\n<p><b>3. Long-term growth<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Other reasons for seeking a new location are the opportunities to overcome various shortcomings that limit a company\u2019s long-term growth.\u00a0Perhaps the company has outgrown its facilities, or its rent has skyrocketed. Other location-related factors may be holding the company back.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then there are state or local regulations that can limit a company\u2019s expansion. \u201c\u2026The freedom to operate without the heavy hand of regulation means a lot,\u201d says Austin Governor <\/span><a href=\"https:\/\/businessfacilities.com\/2020\/12\/oracle-latest-company-to-announce-headquarters-move-to-texas\/\"><span style=\"font-weight: 400;\">Greg Abbott<\/span><\/a><span style=\"font-weight: 400;\">. He points out some companies are looking for a location that allows them the independence, autonomy, and freedom to chart their own course and grow their business.<\/span><\/p>\n<p><b>4. Remote work<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Many businesses have discovered that remote work, accelerated by COVID-19, has been a success, and they\u2019re allowing employees to remote work permanently. Employees like it too, but many also want the flexibility to live where it\u2019s affordable.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Laura Huffman, President and CEO of the Austin Chamber of Commerce, says quality of life is another important consideration that drives remote work. \u201cI think 2020 has taught us all that we have more choice when it comes to where we live,\u201d she says. <\/span><\/p>\n<p><b>5. Population changes<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Not only are major financial centers like the San Francisco Bay Area, Los Angeles, New York, and Chicago seeing fewer companies based there, but populations have dropped in those areas as well. While real estate prices in the San Francisco Bay area have long been sky-high, the departure of workers from California has caused <\/span><a href=\"https:\/\/www.sfgate.com\/realestate\/article\/SF-rent-closes-out-the-year-down-27-15845136.php\"><span style=\"font-weight: 400;\">San Francisco rents<\/span><\/a><span style=\"font-weight: 400;\"> to fall almost 30 percent since January 2020.<\/span><\/p>\n<h2><b>Technology enables work from anywhere<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">For <\/span><span style=\"font-weight: 400;\">now, financial centers such as New York City and San Francisco are still massive work hubs, but the business exodus is indicative of a trend. Workers are no longer tied to location. Remote work, which was already growing steadily before COVID accelerated, has taken off. Many employees who can work from anywhere are now welcome to do so permanently.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Overall, remote work is much more accepted now than it was pre-COVID-19. According to PwC\u2019s extensive <\/span><a href=\"https:\/\/www.pwc.com\/us\/en\/library\/covid-19\/us-remote-work-survey.html\"><span style=\"font-weight: 400;\">U.S. Remote Work Survey<\/span><\/a><span style=\"font-weight: 400;\">, conducted in November and December 2020, 83% of employers and 71% of employees say remote working is successful. It\u2019s telling that 72% of U.S. executives plan to make their largest investments going forward in tools for virtual collaboration such as <\/span><a href=\"https:\/\/www.ringcentral.com\/office\/features\/video-conference\/overview.html\"><span style=\"font-weight: 400;\">video conferencing<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Companies now also have the tools to support a growing distributed workforce. From lightning-fast internet connections to cloud-based tools (<\/span><a href=\"https:\/\/www.ringcentral.com\/office\/how-it-works.html\"><span style=\"font-weight: 400;\">unified communications<\/span><\/a><span style=\"font-weight: 400;\">, for example), businesses have a much easier time allowing employees to <\/span><a href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/whats-it-really-like-to-work-from-anywhere\/\"><span style=\"font-weight: 400;\">work from anywhere<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b>What this means for work<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">As more businesses move or start outside of traditional financial centers, more employees will work from anywhere, hence the trend toward <a href=\"https:\/\/www.ringcentral.com\/2021_state_of_hybrid_work_report.html\" target=\"_blank\" rel=\"noreferrer noopener\">hybrid work models<\/a>. Businesses will see a much more distributed workforce, where teammates can be states or countries apart.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some financial centers may not recover, and new ones will crop up. As we are already seeing, companies will be more open to hiring remotely, and employees will have access to companies they could not have worked for before without relocating.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our methods of working, too, will probably never look the same. While different companies will certainly have various types of work opportunities\u2014at the office, remote, or a hybrid of the two\u2014it\u2019s possible you may soon have a job where you never have to step foot in an office again.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Miami\u2019s mayor Francis Suarez is suddenly fielding calls from top corporate executives. Recently, he\u2019s spoken with Tesla CEO Elon Musk, Twitter CEO Jack Dorsey, and Google CEO Eric Schmidt, among others. In addition, Palantir\u2019s Chairman Peter Thiel recently bought a multi-million mansion in Miami. The city also just named its first Chief Technology Officer, who &#8230;<\/p>\n","protected":false},"author":29,"featured_media":46933,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17901],"tags":[2790],"class_list":["post-46932","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-leadership","tag-future-of-work"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.3 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Big companies are relocating. 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