Texas governor says companies moving headquarters to the state has turned into a ‘tidal wave’

Texas Gov. Greg Abbott informed CNBC on Friday that the variety of companies deciding to transfer their headquarters to the Lone Star State has accelerated due partially to the coronavirus pandemic.

The Republican governor’s feedback got here shortly after it was reported that software program large Oracle is moving its company middle from Redwood City, California, in Silicon Valley to Austin, Texas. Hewlett Packard Enterprise additionally mentioned earlier this month it’s moving its headquarters to Houston from San Jose, California. Earlier this fall, actual property large CBRE formally shifted its HQ from Los Angeles to Dallas.

“I have been on the phone on a weekly basis with CEOs across the country, and it’s not just California,” Abbott mentioned on “Fast Money,” referencing his assembly final month with officers from the Nasdaq. “We’re working across the board because the times of Covid have exposed a lot. They’ve exposed … that you really don’t have to be in Manhattan, for example, in order to be involved in the trading business or the investment business.”

In addition to the pandemic demonstrating the feasibility of extra widespread distant work, Abbott mentioned there are different traits attracting companies to Texas. “Cost of business means a lot. No income tax means a lot, but also the freedom to operate without the heavy hand of regulation means a lot,” he mentioned.

“This has turned into an absolute tidal wave,” Abbott added, whereas noting many companies corresponding to Oracle already had a presence in Texas earlier than their official bulletins. “They are looking for a state that gives them the independence, the autonomy and the freedom to chart their own course.”

Abbott additionally pointed to Texas’ relationship with Elon Musk, the chief government of electric-vehicle maker Tesla and SpaceX, as proof of the state’s rising attraction to enterprise leaders.

Musk has personally moved from California to Texas, and earlier this 12 months, Tesla introduced it had chosen a web site close to Austin to construct its subsequent U.S. manufacturing facility. SpaceX additionally has a rising facility in Boca Chica, Texas, alongside the Gulf Coast. “Elon is elated to be here,” Abbott mentioned, including the two males “talk on virtually a weekly basis.”

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