Texas is going to need more room in its trophy case…
For the 10th year in a row, Texas has won the coveted Site Selection Magazine Governor’s Cup. Site Selection awards the Governor’s Cup each year to the state with the most qualified economic development projects. This year, Texas took home the hardware (again).
The Governor’s Cup is considered by many to be the Super Bowl of economic development trophies. Specifically, it’s a recognition for the state that lands the most deals for corporate headquarters projects, manufacturing plants, R&D operations and logistics facilities.
Here’s why it’s a big deal:
Every time a company decides to locate part or all of their operations in Texas, economic activity and growth follows. More companies leads to more jobs, which means more income, resulting in more growth. Economic growth in Texas is projected above 3% for the next decade, at least. That’s quite a bit higher than most states in the country.
Texas is crushing the competition. In 2020, Texas landed 781 corporate facilities projects, more than doubling second-place Ohio. New corporate facility projects have a big impact on individual communities and the state economy at large.
Winning the Governor’s Cup for 10 straight years is a sign that Texas’ economy will be growing at a steady rate for the foreseeable future. When a few high-profile names made the move to Texas, other high-profile companies inevitably followed, typically due to the economic benefits of being in Texas, especially with other large corporations.
Austin in particular is seeing an influx of companies. Digital Realty Trust, Rex Teams, and Oracle are just a few of the juggernauts that have chosen to locate in Austin in the past few years.
Why Do So Many Big Companies Want to Relocate to Texas?
Texas is a great place to do business. And we’re not just talking about the cost of living, incentives, fair tax rates, and favorable regulatory environments. We’re also talking about a state government who prioritizes keeping businesses open and a general philosophy of governance that promotes business growth.
From Texas Governor Abbot in 2020:
“Businesses have almost total freedom to run their company the way they see best. We can’t run their businesses better than they can. We get out of their way and let them do what they do best.”
Texas lawmakers relentlessly continue to look for ways to change the tax and regulatory policy to be more competitive. It’s a big reason that the Governor’s Cup goes to Texas so often.
Basically, businesses in Texas can grow quickly while limiting their risk. They can innovate without being shackled. They can expand and iterate faster than anywhere else, and that’s why they are choosing to move to Texas in droves.
From a balance sheet and financial accounting perspective, it makes a lot of sense to locate your business in Texas. But it also makes a lot of sense from a quality of life perspective. Texas offers employees and new arrivals more living for less money.
CEOs, management teams, and employees can live in beautiful communities and take advantage of the same benefits and incentives that brought their company to Texas in the first place. Texas is a great place to live and work, and it’s getting more attractive each year.
Congrats to Texas for 10 years of unrivaled economic expansion! Here’s to 10 more…
Looking for a new home in the Austin area? Crosswinds offers a wonderful place to call home located just south of downtown Austin in Kyle, Texas. Contact the team at Crosswinds to learn more.