According to a study conducted by Spectrum Location Solutions, LLC, 1,800 companies left California in 2016. While those companies spread across the country, many went to one of the most business-friendly places in the union: the Lone Star state. In fact, Texas has held the first-place position as far as business-friendly states go for more than a decade. Popular municipalities for business relocation include Austin, Dallas, and San Antonio.
Why Texas? 5 Reasons Companies are Moving
Texas is a great place to live and play, but what makes it so business-friendly? Here are a few things corporations love about the state:
1. A Positive Long-Term Economic Forecast
According to economist Ray Perryman, with the Perryman Group, the Texas GDP is projected to increase by 3.2% annually through 2045. The firm also predicts that the state will add 7.2 million net jobs during that time, creating a total employment of 19.8 million by 2045. This strong outlook draws workers to the state and improves investor confidence.
2. Positive Demographic Trends
While the labor shortage affects the entire country, Texas has a younger population than the nation as a whole. This means worker availability is peaking and companies won’t have to struggle as much to find qualified help.
3. Energy and Oil Opportunities
Texas is famous throughout the country for its ample energy and oil stores. Even better, it has the potential for expanded production in coming years. The fact that the energy industry is so strong in Texas is a good sign of long-term prosperity, adequate property values, and ample job opportunities in the state.
4. Plenty of Available Real Estate
If your business property needs growing, Texas is a great place to go. The state has plenty of available commercial and residential real estate, which is ideal for commercial growth. If you’re considering moving your business to Texas, contact Paramount Property Analysts for more information on appraisals for commercial and rural property.
5. Low Taxes
Companies looking to save money on taxes will love Texas. The state provides a competitive tax climate and a host of incentives designed to allow businesses to invest in the things that matter—growing their workforce, improving facilities, and boosting their bottom line.
Currently, Texas doesn’t require corporate or personal income tax. The state also offers sales tax exemptions for companies manufacturing equipment and machinery.
More exemptions are available for companies specializing in R&D-related materials and software. Companies that install solar energy systems, meanwhile, can take advantage of a franchise tax exemption. Finally, companies that want to move to or expand within the state can access property tax abatements, fee waivers for permits, grants and extra local funding.
The Smartest Way to Move Your Company to Texas
Considering moving your company to Texas? Contact Paramount Property Analysts today. Our appraisal services will help you get the best possible property and make a smart financial decision for your company.