Why Companies are Moving to Texas: Key Insights & Benefits

Published: 23 Aug, 2023

Last Updated: 22 Aug, 2023

Serik Baimoldayev

Serik Baimoldayev

Why companies are moving to Texas is a hot topic these days.

The Lone Star State has emerged as a desirable spot for businesses ranging from small to large, spanning numerous industries.

But what’s driving this trend?

We’ll dive into the reasons why companies are moving to Texas, exploring everything from cost-effective business solutions to access to talent.

Table of Contents:

Why Companies are Moving to Texas: Key Insights & Benefits

Learn about the key factors, attractive benefits, and how this fuels economic growth in the Lone Star State.

Cost-Effective Business Solutions

Texas has been making waves as a preferred destination for corporate relocations. The state’s business-friendly environment and attractive benefits have drawn numerous companies, particularly those from the tech sector.

1. Tax Incentives in Texas

The tax structure in Texas is designed to favor businesses significantly. In contrast to states such as California or New York, Texas offers substantial savings for employers and employees through its lack of corporate or personal income taxes.

Beyond this major advantage, the state also offers several programs that provide incentives like sales and use tax exemptions on machinery used during manufacturing processes (source). These initiatives make it considerably more affordable to set up operations compared to other regions across America.

2. Lower Overhead Costs

In addition to favorable taxation policies, overhead costs including office space rentals are much lower than what you’d find elsewhere, especially when comparing with tech hubs like San Jose or Seattle.

This affordability extends beyond just real estate – utilities too tend towards being less expensive due largely to Texas’ dominance in the energy sector.

3. Economic Growth Opportunities

  1. Austin Metro lays claim: This rapidly growing city is attracting big companies looking to expand their footprint while taking advantage of the skilled workforce available locally.
  2. Rapidly Growing Tech Talent Pool: With an increasing number of high-tech firms establishing their presence here (including Apple setting up its second-largest global campus), there’s a surge in demand for technical professionals, thereby creating a vibrant ecosystem conducive to growth.
  3. Growth Beyond Austin: Hewlett Packard Enterprise moving its headquarters symbolizes how cities outside traditional technology hotspots can attract industry giants seeking cost-effective solutions combined with access to talent pools.

Key Takeaway: Companies are flocking to Texas like bees to honey, drawn by the sweet perks of tax incentives, lower overhead costs and robust economic growth opportunities. The Lone Star State’s business-friendly environment is proving a magnet for corporate relocations, especially from the tech sector.

Access to Talent

The appeal of Texas as a hub for corporate relocations is significantly bolstered by its access to an expanding industry that heavily contributes a skilled workforce. This talent pool, rich in diversity and expertise, has been nurtured largely due to the state’s robust educational system.

Educational Institutions: The Cradle of Skilled Workforce

Texas’ prestigious universities such as Texas A&M University and The University of Texas at Austin consistently produce highly qualified graduates across various fields. These institutions serve not only as centers for learning but also as innovation hubs that inject fresh perspectives into the professional landscape.

In addition, these universities offer specialized programs tailored towards meeting specific industry demands, creating a steady stream that feeds directly into growing tech talent pools, among others.

Austin Metro: Tech Talent Hotspot

When it comes to attracting top-notch technical professionals, few places compare with the Austin metro area. According to commercial real estate brokerage CBRE’s annual Scoring Tech Talent report, this city ranks high among North American cities in luring technology experts.

Tech companies moving their operations here can easily tap into this rapidly evolving ecosystem filled with bright minds who bring along innovative ideas, driving economic growth forward.

In fact, many big companies have already made the move from other locations like San Jose just to leverage the local resources available within the Lone Star State itself.

Diversity Breeds Innovation

Beyond technological prowess, another key factor making waves around business circles nationwide is the diversity present within the Texan labor market itself. From the energy sector’s dominance in Texas to medical practitioners and research scientists, you can find proficient individuals working nearby ready to join your team if needed.

Such a broad spectrum offers multiple opportunities for both businesses seeking greener pastures and individuals looking for personal development, thereby fostering the overall socio-economic well-being of the entire region.


Key Takeaway: Texas is a hotbed for companies due to its skilled, diverse workforce cultivated by top-notch universities and industry-specific programs. The state’s tech talent, particularly in Austin, drives innovation and economic growth. This rich labor market offers abundant opportunities for businesses seeking expansion and individuals pursuing personal development.

Strategic Location

The Lone Star State, Texas, is more than just a hub for BBQ and country music. Its strategic location in the heart of America offers companies an edge when considering corporate relocations.

Gateway to Major Markets

Texas’s central position within the United States provides convenient access to numerous bustling cities like Austin, San Antonio, Dallas, and Houston – all teeming with economic growth potential. This geographical advantage allows businesses easy connectivity not only domestically but also internationally due to its proximity to Mexico.

Beyond these local markets, though, lies another attractive benefit: efficient routes towards both coasts. Companies can seamlessly reach consumers from Los Angeles on the west coast to New York or Miami on the east without exorbitant transportation costs or time delays thanks largely to this state’s central positioning nationwide.

A Hub of Transportation Networks

In addition to its prime location, Texas boasts robust infrastructure including airports such as Dallas/Fort Worth International Airport (DFW), one of the world’s busiest air hubs along with extensive highway systems, railroads, plus ports that enhance logistical advantages further, thereby driving corporate relocations here.

This network does not merely facilitate domestic trade; it plays a pivotal role in international commerce too, particularly because Texas shares borders with Mexico, which has been expanding industry heavily contributing towards attracting big companies seeking greener pastures into this region.

Lure For Tech Giants

Silicon Valley giants are increasingly finding value in setting up shop down south. The rapidly growing tech talent pool available locally, coupled with the state’s business-friendly environment, have played key roles influencing their decision-making processes. Austin Metro lays claim as the home base for many leading names like Apple Inc., Google LLC., Facebook Inc., Oracle Corp., Amazon.com Inc., and Tesla Inc.; while others such as Hewlett Packard Enterprise chose Austin over their previous headquarters at San Jose, directly attributing relocation decisions largely due to Texas’ unique offerings overall.


Key Takeaway: Companies are flocking to Texas for its strategic central location, access to major markets, robust transportation networks and a growing tech talent pool. This move is fueled by the state’s business-friendly environment and cost-effective connectivity both domestically and internationally.

Why Companies are Moving to Texas: Key Insights & Benefits

Learn about the key factors, attractive benefits, and how this fuels economic growth in the Lone Star State.

Business-Friendly Environment

The business-friendly environment in Texas is a major draw for companies seeking to relocate. The state’s government policies, strategic location, and growing talent pool are among the key factors driving corporate relocations.

Texas’ Business Policies: A Magnet For Companies

In terms of policy support for businesses, Texas stands out with its low taxes and minimal regulations. Texas’ favorable business policies have drawn many large companies, such as Austin Hewlett Packard Enterprise, to establish their corporate headquarters in the state.

This pro-business stance has been validated by reports from commercial real estate brokerage CBRE which show many businesses moving to numerous Texas cities due to these advantages. It’s evident that the Lone Star State provides an ideal atmosphere for development and invention.

Dominance in Tech And Energy Sectors: Fueling Economic Growth

Beyond favorable policies, another reason why tech companies are flocking to this region lies within its rapidly growing tech talent pool. With several prestigious educational institutions producing skilled professionals annually, areas such as the Austin metro provide fertile ground for technology firms looking forward to expanding industry heavily contributes towards economic growth.

Moreover, Texas’ dominance isn’t just limited within the borders; Houston and San Antonio are making waves globally too. This sector’s expansion further solidifies Texas as a powerhouse of industrial might while attracting more corporations into their fold.

A Destination Of Choice For Corporate Relocations

Cities across Texas offer diverse opportunities tailored specifically towards different types of enterprises planning relocation or expansion strategies – Dallas’ bustling commerce scene filled with Fortune 500 firms or San Jose’s thriving tech industry featuring giants like Apple Inc., there truly is something suitable available no matter what your company specializes in.


Key Takeaway: Companies are hitching their wagons to Texas due to its business-friendly environment, low taxes, minimal regulations, and a rapidly growing talent pool. The Lone Star State’s dominance in tech and energy sectors further fuels economic growth making it an ideal destination for corporate relocations.

Quality Infrastructure: A Key Attraction for Companies Moving to Texas

Texas is well-known for its quality infrastructure that provides a conducive environment for businesses. Texas boasts an extensive array of transportation systems, dependable electricity, and cutting-edge telecoms.

The All-Round Transportation Network Advantage

Texas prides itself on having one of the most comprehensive transport networks among US states. It’s no wonder why so many large firms are relocating their corporate offices to Texas, given the convenience of getting around by car, train or plane between its numerous cities.

  1. The Texas Department of Transportation (TxDOT) oversees an expansive highway system facilitating efficient movement across the state.
  2. Railway lines cater to freight transport needs, ensuring seamless logistics operations within and beyond borders.
  3. Dallas/Fort Worth International Airport and George Bush Intercontinental Airport provide global connectivity, enhancing business opportunities at international levels.

A Reliable Power Supply Fueling Business Operations

These words perfectly describe what makes Texas stand out when it comes to energy provision. With oil & gas, along with renewable energies like wind power, under its belt, this expanding industry heavily contributes towards economic growth while also providing a consistent power supply – vital for uninterrupted business operations.

An Advanced Telecommunications System – The Tech Haven.

An essential factor driving tech companies moving into new territories is undoubtedly advanced telecom infrastructures. In today’s digital era where every second counts, it can be translated as money saved or lost. Hence, a rapidly growing tech talent pool coupled with top-notch broadband services proves extremely beneficial not just in terms of saving time but also costs involved. A perfect example would be Austin Hewlett Packard Enterprise, which relocated their base from San Jose due largely because they recognized how important strong telecoms were key factors driving corporate relocations.


Key Takeaway: Businesses are flocking to Texas for its top-tier infrastructure, including an expansive transportation network, reliable energy supply, and advanced telecommunications systems. These factors not only facilitate efficient operations but also offer cost-saving benefits – a win-win situation for any company looking to relocate.

Proximity to Mexico

Texas, with its geographical closeness to Mexico, provides a significant advantage for businesses. This strategic location allows companies easy access to the Mexican market and abundant resources.

Mexico’s Thriving Economy

The World Bank data highlights that rapid economic growth has positioned Mexico as one of Latin America’s largest economies. Industries such as manufacturing and automotive are thriving there. Texas-based companies can tap into these sectors by leveraging local partnerships or outsourcing parts of their production processes.

Vast Resources: A Key Factor Driving Corporate Relocations

Beyond being just a neighbor, key factors driving corporate relocations include lower costs associated with raw materials procurement due to the vast resources offered by Mexico.

In addition, the well-established trade agreements between the USA, specifically Texas, and Mexico encourage free trade, making trading goods across borders easier. This is especially advantageous for tech companies moving or expanding operations in this region.

Cultural Ties Enhance Business Relations

A deep cultural connection exists between Texas and Mexico which extends beyond shared history or language but also influences business relations positively. This mutual understanding aids communication, a critical aspect when conducting international business transactions. Being culturally sensitive fosters trust, respect, and long-term relationships necessary for successful cross-border collaborations. Chron Small Business explains how cultural sensitivity impacts international business dealings positively.

In conclusion, the proximity of Texas not only offers an opportunity to explore untapped markets but also gives companies access to affordable resource pools, resulting in reduced operational costs. The state’s advantageous position makes it an attractive destination for big company headquarters seeking greener pastures.

Low Regulatory Burden

The low regulatory burden in Texas makes it a magnet for companies seeking to relocate or expand. The low regulatory burden in Texas is a major draw for businesses seeking to relocate or expand their corporate headquarters.

Texas maintains a business-friendly environment by minimizing red tape and bureaucracy, thus fostering economic growth and innovation. The state government’s commitment to creating an atmosphere conducive for all types of industries – from tech companies like Austin Hewlett Packard Enterprise, to the energy sector dominance in Texas, and commercial real estate brokerage CBRE among others – has played a significant role in attracting corporations here.

This light-handed approach gives organizations more room to breathe compared with states that have stringent regulations such as San Jose.

Economic Benefits of Lessened Regulations

A reduced regulatory load often results in financial savings for businesses. It cuts down on administrative costs linked with compliance procedures and legal fees while offering firms greater operational flexibility leading towards increased efficiency and productivity.

Industries expanding heavily contribute towards making numerous Texas cities attractive locations due to its favorable policies which positively impact bottom lines directly. For instance, the Austin metro area lays claim to being home to many big companies who have benefited from relaxed regulations within this region’s borders.

Influence on Workforce Growth

Beyond monetary implications, a less regulated environment also impacts workforce development positively, promoting job creation through new investments and expansions of existing corporations seeking greener pastures in terms of business operation environments offered by Texas. A rapidly growing tech talent pool fostered largely thanks in part to favorable policies attracts skilled workers nationwide, contributing significantly to overall economic growth.

If you are contemplating relocating your company’s base of operations, consider factors beyond just the physical location and take note of how local legislation could potentially affect future prospects too before making a final decision about where to set up shop next time around.


Key Takeaway: Texas’ low regulatory burden, business-friendly climate, and economic benefits are major draws for companies looking to relocate or expand. This light-handed approach results in financial savings and operational flexibility for businesses while fostering job growth. So before setting up shop next time around, consider Texas as your potential greener pasture.

FAQs in Relation to Why Companies Are Moving to Texas

Why do companies keep moving to Texas?

Texas lures companies with its cost-effective business solutions, strategic location, and access to a skilled workforce. The state’s low regulatory burden also facilitates smoother operations.

Why are businesses moving from California to Texas?

Businesses are leaving California for Texas due to lower taxes, affordable living costs, and a more favorable business environment that encourages growth and innovation.

Why are so many companies leaving California for Texas?

The exodus from California is driven by the high cost of doing business there. In contrast, Texas offers lower overheads, quality infrastructure, and proximity to Mexico’s booming economy.

Why are companies moving to Texas and Florida?

Beyond just tax benefits, both states offer robust infrastructures while being strategically located near key markets. This makes them attractive destinations for businesses looking at expansion or relocation.

Conclusion

Unpacking the reasons why companies are moving to Texas, it’s clear that cost-effective business solutions lead the charge.

  • The Lone Star State offers attractive tax incentives and low overhead costs.
  • Texas is also an attractive destination for highly skilled professionals, providing a wealth of talent.
  • Its strategic location in America’s heartland provides easy access to major markets and transportation hubs.
  • A business-friendly environment nurtures growth while quality infrastructure ensures seamless operations.
  • The state’s proximity to Mexico opens up lucrative trade opportunities too.
  • Add in a lower regulatory burden compared to other states, and you have an ideal setting for businesses of all sizes.

SEKA Moving, as your trusted moving and storage partner, can help ease this transition. Whether you’re relocating within Texas or from another state altogether, our professional team will ensure your move is smooth and stress-free.

Experience first-hand why so many companies are choosing Texas as their new home with SEKA Moving by your side.

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