The Changed Realities of Corporate Relocation: Part One

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.

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