Silicon Valley has reigned supreme as the heart of the tech industry, but recently more and more businesses are not only leaving the valley but other major technology-focused cities such as San Fransisco. We have even started to see tech industry millionaires such as Elon Musk trading in their Bel Air houses for estates in places such as Texas. Many companies are now following in Musk’s footsteps and moving down to Austin, Texas. Austin has been an up and coming competitor for these other technology-based cities due to a variety of reasons including, but not limited to the percentage of the population that is highly educated, the cheaper costs to operate these businesses, and more diverse clientele that come from areas such as Austin.
A Business Follows Potential Profit
Austin is a very diverse and quick-growing city with lots of potential new employees all around. This mixed with the one hundred and forty-three universities in Texas makes it a prime spot for these businesses to find new potential hires. In turn, these industry leaders such as Elon Musk are not only moving their technology companies but also themselves as well. This shows these potential employees that you don’t have to worry about moving to these big cities such as San Fransisco or Silicon Valley in order to be productive and valued employees of these technology businesses. These business leaders are not only moving for the charisma boost for the company, but also the cheaper production costs that come with places such as Texas.
Everything’s More Expensive In California
California is notorious for the high cost of living, with San Fransisco being one of the most expensive places to live in the entire United States, it only makes sense that these companies move to a place with a lower cost of living. Then comes Texas, one of the cheapest places to live in the United States, while also providing one of the fastest-growing markets. This diverse change to a place halfway across the country means that these employees who work in person at these various offices, no longer feel obligated to pay an arm and a leg for the steep cost these landlords are now charging. This move will benefit not only the company who will now be able to buy and operate their offices for cheaper, but it will also incentivize these employees to move along with the company and be able to have a better standard of living. With these incentives, it will bring a wider variety of employees for these companies.
With Cheaper Living Comes More Diverse Employees
More and more people are realizing that Texas is much cheaper to live in, which has led to more and more people moving to Texas. In turn, Texas has become a very diverse and quick-growing state. As more of these industry leaders move to Texas, we will see even quicker growth, which will lead to a more diverse applicant pool. The diversity will offer a more advanced and creative company, as the company will be drawing from more diverse backgrounds than before.
How the Pandemic Affected the Exodus
With this year affecting so many companies in so many ways, we are bound to see some changes in the way these companies work. Many of these businesses are offering remote work for their employees and this mixed with the infrastructure that has been built over the past few months has led to a decentralization of these companies. With these employees having the ability to work from home, many of these companies could create more spread out groups leading to a more expanded and diverse company.
Where Will this Take the Industry as a Whole?
The technology industry is one of the fastest-growing and most profitable industries, not only in the United States but for the world. With this fast-growing industry come the leaders that are leading the charge to this new frontier. The change from big, expensive mansions to the large Texas estates is bound to bring not only the sea of employees for these various companies but also the consumers. I believe that this shift from California based companies to nationwide, if not international, focused business models was destined to occur after this pandemic. For the first time in modern history, we saw that these companies can not only survive but in some cases thrive with a more remote model. I believe this in addition to the movement of people such as Elon Musk to Texas, will draw in a larger and more expansive era for the tech industry as a whole.