Posts Tagged ‘Corporate Moving’

Top Metropolitan Areas for Corporate Relocation

Friday, March 23rd, 2012

Houston, now the fastest-growing economy in North American according to Site Selection Magazine, has more corporate real estate projects than any other city in the United States. The greater metropolitan area secured some 195 corporate facility expansion projects, making it the leading corporate growth area according to a new study from the Brookings Institute. This top ranking among other very large and growing metropolitan areas confirms what many corporate executives already know, that Houston is a great location for growing business.

Other growing metropolitan areas with over a million in population include Chicago, Pittsburgh, Dallas/Fort Worth and New York. It’s no real surprise that Texas has two of the top five large cities for corporate relocation, as business owners site the low state taxes and cheap cost of living as important factors for a thriving corporate environment. Many companies are considering cheap domestic corporate relocation instead of Asia because of this.

Large metropolitan areas aren’t’ the only places that are seeing corporate growth. Communities with populations under 200,000 are also seeing the benefits of corporate relocation. Towns like Decatur in Alabama, Springfield in Ohio and Williamsport in Pennsylvania are among the top three towns under 200k to see tremendous growth in the corporate sector. Businesses make the decision to move to these smaller communities for a wide variety of reasons that may include factors such as close connections to the community and a more intimate work force.

The Changed Realities of Corporate Relocation: Part One

Tuesday, March 6th, 2012

Recent research regarding corporate relocation has shown five new realities that have impacted and will continue to impact corporate decisions regarding relocation. Two main areas of consideration are workforce availability and real estate development.  When it comes to the current workforce, the realities are all over the place. The population is getting older but more ethnically diverse. Household incomes are lower and more polarized. The 2000’s was the first decade on record in which real median household income declined.

More than a third of U.S. adults held post-secondary degrees in 2008, up from only a quarter in 1990. This has been an important factor that helped propel U.S. economic growth. Unfortunately, the 2010 Census indicated that younger adults in urban areas are not following suit, which is a disturbing trend that could seriously impact the skill set of the workforce. Emigration from metro areas also continues, growing at the rate of three times that of the urban core. This factor will continue to have a significant impact on corporate moving and associated real estate development.

Another reality of the future U.S. workforce is that the last decade was the slowest decade of population growth in 70 years, slightly less than the 1980’s and significantly below the 13.2 percent growth rate of the 1990s. A golden lining to these developments is that the Sunbelt continued to be the beneficiary of the most growth. The lower 9.7 percent rate could be attributed to a variety of factors including homeland security concerns and an economy in recession that drives workers back to their original homes.

Corporate Relocation to the Far East

Monday, February 6th, 2012

Corporations have been flocking to the far east for the past few decades due to cheap labor costs, friendly governments and lax environmental regulations. The specific countries that businesses are moving to, however, seem to be constantly shifting. China remains a stronghold of cheap plastics manufacturing and some high tech. Taiwan was once a juggernaut in high technology manufacturing but has been eclipsed since the rocket like rise of the mainland. Countries like Singapore and Malaysia have had a long steady presence of foreign firms that have helped those countries develop modern cities.

Manufacturing is not the only thing moving to the far east. With increasing education standards and more college graduates than ever, far east countries are producing an unprecedented number of engineers and designers. This means that American corporations are exporting more than just low skilled labor, they are transferring entire design and engineering departments to places like China and Singapore. Increasingly U.S. employees are acting as ambassadors or communications officers for companies that have shifted nearly all of their production processes across the Pacific ocean. Corporate relocation to these areas of the world sees no sign of slowing in the near future.

What Are the Types of Corporate Relocation

Wednesday, January 25th, 2012

Moving jobs overseas is a big talking point in the ongoing presidential campaign. The most talked about sector of the economy that is involved in these corporate relocations is the manufacturing industry. This is because the manufacturing industry has seen a huge exodus of jobs to places in Southeast Asia, Mexico and Latin America. But manufacturing isn’t the only sector of the economy that is sending its operations overseas. Jobs like customer service, engineers and even creative positions like design and writing have found news homes in other countries.

While international relocation of corporate operations is the most popular topic, many facets of business are moving within the United States. These domestic corporate relocations are really just a microcosm of overseas relocations. Businesses tend to move from places with high labor and operating costs to places with low labor and operating costs. This is why many companies move operations from places in the Northeast and California to cheaper and lower taxed areas like the Midwest and Texas. The regions receiving these businesses typically have lower unemployment during recessions and a much higher growth rate during good economic times. If one thing is true, however, is that no place booms forever, as new places always pop up to compete on prices and taxes.

Speed Is Essential for Corporate Relocation

Monday, January 2nd, 2012

When a company decides to move their operations to a new domestic or international location, there is always a concern about speed. Managers and CEO’s are primarily concerned about business downtime, which can be a huge hindrance to making profits and can be a huge disruption to customers. The primary way to combat this is to make the move go as quickly as possible. This requires a lot of planning, manpower and strict attention to detail. When going ahead with such a corporate relocation, it’s a good idea to consult with a global relocation service that has expertise and extensive knowledge in the area of moving businesses.

There are a variety of approaches that can be taken for a corporate move depending on what type of operations need to be relocated. Moving a manufacturing operation will require a much different plan than simply moving administrative positions. For example, major manufacturing usually requires specialized machinery that can’t be re-bought due to enormous costs, so large machines will need to be physically moved to the location of the new operations. This may require special vehicles and transportation services that are not available to the general public.

Corporations usually take one of two approaches when it comes to employees and corporate moving. They either pay to have their old employees move to their new operations, or hire completely new workers to staff the new location. A corporation’s approach in this situation will depend upon the skill level needed, costs of relocating employees and general labor costs in the new country or region. Moving employees to new operations requires speed, as employees are almost always the lifeblood of any business. The quicker employees are back to work at the new location the quicker the company will be able to bring in revenue and please customers.