Texas has once again solidified its position as a national economic powerhouse as shown in a recent report published by the Federal Reserve Bank of Dallas. The data shows, unequivocally, that the Lone Star State has witnessed a remarkable surge in corporate relocations since 2010, outpacing every other state in the nation. This trend not only underscores the vitality of Texas' economy but also highlights the state's unwavering commitment to fostering a business-friendly environment.
The report finds that, from 2010 to 2019, more than 25,000 businesses and 281,000 jobs came to Texas. Of those, more than 44,400 jobs came to Texas due to businesses fleeing from California – approximately 16% of all jobs that came from out of state.
Importantly, Dallas Federal Reserve researchers found that, small businesses – establishments with fewer than five workers – represented about 80 percent of all businesses relocating to Texas. This trend underscores how, while large firms continue to relocate and create more jobs here, entrepreneurs and small business owners know the Lone Star State is the premiere destination to set up shop and grow their operations.
What sets Texas apart and continues to attract businesses of all sizes like a magnet? The reasons are deeply rooted in the state's exceptional economic landscape. Texas boasts a favorable business climate characterized by low taxes and reasonable regulations, making it an enticing destination for companies seeking to thrive and expand. Our growing population, central location, expansive size, and multiple thriving metro areas further enhance our appeal as a prime business hub. Additionally, our accessibility to ports and proximity to our largest trade partner – Mexico – open doors to international trade opportunities, while a diverse industrial structure and abundant energy resources offer a solid foundation for sustained growth and innovation.
The statistics in the report speak volumes: for nearly two decades straight the number of establishments moving into Texas has consistently surpassed those leaving the state. This influx of new enterprises brings tangible benefits to our residents, including new business investments, greater employment opportunities and increased property values, ultimately leading to net gains in economic welfare for all Texans.
Texas' remarkable success in attracting businesses of all sizes is further bolstered by a potent array of state and local economic development tools. Led by Texas' 'Chief Marketing Officer,' Governor Greg Abbott, and his top economic development officer, Adrianna Cruz, the Lone Star State touts an outstanding ecosystem guided and created by these economic powerhouses. Their dedication to showcasing Texas' unparalleled business climate resonates with businesses nationwide and globally, encouraging even more relocation and expansion.
As Governor Abbott has made clear, "Texas is the headquarters of headquarters" with more Fortune 500 companies than any other state. This achievement underscores Texas' allure as a prime destination for already successful corporations looking for new growth opportunities. "With our strong and growing workforce and welcoming business climate, Texas is where businesses find the freedom to flourish, and people find opportunities to prosper,” the Governor said.
This commitment not only attracts major corporations but also fosters an environment where small businesses can thrive. The exodus of smaller businesses from California underscores the realization among entrepreneurs and small business owners that Texas is the premiere destination to set up shop and grow their operations, making it clear that Texas is not just the best place for big businesses, but also for those seeking a dynamic environment conducive to small business success. In fact, more than 139 companies have relocated their headquarters to Texas since 2020 alone, approximately 40% of which came from California, highlighting the Lone Star State's national competitive edge and appeal.
Texas' success story is a testament to our state’s dedication to fostering a pro-business ethos. This steadfast commitment continues to yield positive results for communities statewide, creating hundreds of thousands of new jobs opportunities and laying the foundation for continual economic growth. As we look to the future, Texas stands poised to maintain its position as a national leader in business relocations. With our robust economic principles, entrepreneurial spirit and unwavering commitment to innovation, the Lone Star State is primed to attract even more businesses seeking to expand and succeed in the years to come.
###
Comments