When you think of America’s ‘Big Tech’, you think of Silicon Valley.
California has been home to the headquarters and offices of the nation’s, and the world’s, biggest technology companies for decades. However, it’s now heading towards an unprecedented market shift that few saw coming. Hundreds of technology companies in the state are now relocating to other less bustling states. While commercial relocations aren’t new in California, their rapid growth is the cause of much concern.
Technology business relocations aren’t always a bad thing, though. Making this drastic corporate decision can actually be highly beneficial to tech giants. Let’s have a deeper look into the big tech exodus in California.
How Many Tech Companies Have Left California?
The corporate atmosphere throughout California has been suffering for a few years now. There are various factors at play that are leading tech companies out of the state. A recent research study published by the Hoover Institution showed that over 260 notable firms have relocated their headquarters from California to other states like Texas since 2018. Tech giants like Apple, Oracle, and Tesla were among the companies that underwent business office relocations.
The main reasons cited for this seemingly unanticipated exodus ranged from political shortcomings to microeconomic factors. Industry experts suggest that companies are leaving California because of how strictly regulated the state has become. California has enforced a significant number of regulatory restrictions on the corporate sector in recent years. Companies must abide by these restrictions, making it tougher for them to operate efficiently in the state.
Other important factors at play include rising taxes and a worsening legal landscape. As property taxation rates in California increase, it gets tougher for companies to retain profits. Loose laws and a vulnerability to unnecessary lawsuits are also driving tech companies out of the state.
What are the Future Prospects for California Tech?
New market analyses by experts suggest that the California tech exodus might not be as alarming as it seems. The Los Angeles Times reports that concern about California’s high property taxes is misplaced. It remarks that the state doesn’t have one of the highest property tax rates in the nation. California falls at number 36 on the list of US states with the highest property taxes. Other states where tech companies are relocating to, like Texas, actually have higher property taxes.
The future of California as the nation’s biggest tech capital is relatively secure. Many local businesses might continue to relocate to other states, but those relocating from other states to California should be considered, too. California creates a huge number of jobs every year, particularly in the technology sector. This makes it a great place for big and small businesses to come to life. Not to mention that many tech companies that are faring well in California’s current economic climate often choose to relocate within the state. Their purposes for undergoing business relocations are more along the lines of business expansion and market penetration.
Regardless of why California businesses are relocating, professional moving companies play a significant role in the state.
How Do Business Relocations Work in California?
Business relocations in California typically involve an extensive set of steps. There are also various types of technology moves that you’ll commonly see in the state. Businesses might choose to undergo server room relocations, data center moves, or business office moves. Every technology relocation project has unique requirements, with a few of the steps remaining similar. There are many different aspects that business owners must take into consideration when planning their business moves. The basic steps every technology business relocation project in California involves are listed below.
1. Hiring Professional Movers
Every successful relocation project starts with the right moving company. Tech giants in California can’t afford to incur millions in relocation damages, which is why they always put professionals to the task. When planning a technology move, it’s important to involve skilled technicians and experienced movers in the decision-making process. This is why hiring professional business moversis an essential part of technology relocations in the Golden State.
2. Preparing Business Items
Tech giants typically have large headquarters and offices with hundreds of employees working there. Preparing business items for moving can be a critical task that’s best assigned to professional technology movers. Preparing items entails their disassembly and de-cabling from server racks and computers. Every tech company in California has a server room and/or data center too, which is why actual technicians typically carry out business moves in the state.
3. Packing and Rigging
Tech companies mostly have electronic devices and items to relocate. These items are usually fragile in nature, as even the slightest impact can render them inoperative. This makes reliable packing and rigging services a must-have for tech giants in California.
4. Moving and Installing
Moving companies throughout California offer specialized transportation services for tech companies. They cater to the unique requirements of your relocation project by using specialty moving equipment, specialized vehicles, and tailored services. After the items are safely relocated to their new destination, technology movers then re-install, re-cable, and reassemble them. That typically concludes the main parts of the relocation.
Are You Looking for Technology Movers in California?
ValleyRelocation is one of the most trusted commercial moving companies in California. You can get all of the tailored moving services you need from their team of experienced business movers. They serve commercial customers in many fields like tech, medicine, and hospitality.
