To Texas, and beyond!
Texas is the fastest growing large state in America, with 106,000 people moving to the state in 2012 alone. The state’s main cities, Austin, Dallas and Houston, all fall in the top five fastest growing cities nationally and according to the U.S Census Bureau, one million more people have migrated to Texas than have left since the year 2000.
Geographically Texas is the second largest state in America, but on the surface it doesn’t seem to offer much; property crime rates are relatively high, schools are average to poor, social services are sparse, welfare benefits are meagre, and health insurance is uncommon for residents. Additionally the weather can be tough – spring, summer, autumn and winter bring floods, droughts, hurricanes, and blizzards.
Increased living costs in other major cities in the U.S have drawn residents and businesses to Texas. One of the biggest advantages the state offers to both is the low cost of living. Texas has one of the lowest tax burdens in the country, with no personal income tax or corporate income tax being a huge attraction for businesses. This is particularly beneficial for small companies, and the state regulations are fairly relaxed which gives businesses more room to manoeuvre around the red tape.
Texas’ well developed infrastructure and large civilian workforce, the second largest in the U.S, are additional aspects of its pro-business environment. A workforce more than 12 million strong provides highly skilled and diverse labour across a range of sectors. The state’s unemployment rate is 6% and has contributed to 33% of America’s net job gains over the past ten years. Industries such as manufacturing, energy, electronics, IT, and aerospace in Texas have grown particularly, supported by excellent transport by rail, highway, air, and deepwater ports.
Companies can benefit from certain business funding, with incentives available from the Texas Enterprise Fund (TEF) on high-value business locations. So far the TEF has created over 67,000 new jobs and $20 billion in capital investment from its $500 million venture. In addition, the state’s Skills Development Fund assists companies with employee training costs, investing over $22 million to offset expenditure.
Geographically Texas is well situated for access to both domestic and international markets, as well as transportation. Texas borders Mexico on a 1,250 mile stretch so exports are a significant aspect of Texan business. The state has been America’s top exporter for the past eleven years. Approximately 70% of U.S trade with Mexico goes through Texas, and the state’s global export revenue totalled $249.8 billion last year.
All of these aspects demonstrate why Texas has been developing so well in a volatile domestic and global economy. The state offers a great package to businesses, particularly with regard to exporting, and new business is continually encouraged. If you are setting up an American company, Texas is definitely worth considering.