We understand that site selectors and CEOs have to fight restricting state regulations that slow down a relocation process or hinder long-run business growth. However, there’s good news — not all states run that way. Not all state regulations have to be a nightmare.
Texas enables site selectors and CEOs to enjoy doing business in the Lone Star State. When looking to expand, move, or startup a company, we know there’s a lot of research involved to find a state that truly is business friendly. With our state being a top-tiered choice, we’ve outlined eight reasons why the Texas business environment is ripe for the picking.
1. Economic Strength
Texas has been named time and time again for its business-friendly landscape, strong economy, and leading state statistics. At a glance, it hosts over 50 Fortune 500 companies, leads as the No. 1 exporting state in the nation, and was one of the top states for job creation in 2015 with 175,000 new jobs. Enjoying a variety of economic advantages, the Texas business environment boasts an attractive and unmatched location for thriving and progressive companies.
2. Energy Infrastructure
Texas' geography and natural resources leave us well positioned for abundant and sustainable energy production. Our advanced oil and gas production names us the Energy Capital of the World as we’re the only state with its own power grid. Similarly, we boast a strong renewable and sustainable energy generation, being home to six of the ten largest wind power projects in the nation. Our future is bright, as we’re pursuing solar, geothermal, wave/tidal, biomass, methane gas, and hydropower renewable energy technologies.
3. Connected Transportation
Whether by air, rail, road, or sea ... we have you covered! Our dense network of transportation keeps organizations flowing and functioning as imports, exports, and travel take place daily. With 380 airports, including 26 commercial, access to major railways, over 313,210 miles of public roads, 18 interstate highways, and multiple coastal ports, the state is connected for all means of distribution.
4. Low Taxes
Texas boasts an incredibly business-friendly environment when it comes to taxes. Compared to competitor markets, the Lone Star State enjoys low taxes and limited regulations. With no corporate income tax, no property tax at the state level, and no individual income tax, the Texas business environment remains the best in the country, according to Chief Executive Magazine. Texas also ranks a Top 10 Best State in the Tax Foundation's 2015 State Business Tax Index.
5. Skilled Workforce
With a 13-million strong civilian labor force, 50 community college districts, and 36 public universities, there are millions of capable and skilled workers that reside here. The beauty of our workforce landscape is the ability to tap into multiple industry-specific pools of qualified labor. Looking for skilled advanced manufacturers? Texas State Technical College breeds brilliant engineer-minded students ready to jump into the workforce.
Spread across various regions is a wide variety of labor pools that continue to grow a strong Texas business environment, from powerful computer technology pockets to aeronautics and energy markets. Our Skills Development Fund of $48 million helps organizations fund their training needs by partnering with local public community or technical colleges. See how Gerdau has already become involved in the Skills Development Fund.
6. Available Land
While we boast an incredible existing infrastructure, there’s still room to grow. As the largest state in the nation, we have a wide variety of sites still to be filled with headquarters, distribution centers, manufacturing plants, small companies, and more! From industrial and commercial development to retail and hospitality, there’s room to grow in a state that knows business. While urban areas stay dense, smaller growing pockets of Texas are on the horizon for creating the next emerging market and suburban mixed-use destination for companies.
We’re convinced the Texas business environment is great! Are you? If not, download our resource on Texas vs. Competing Markets to learn the hard facts and strong statistics that support why we are so great.
7. Quality of Life
While navigating statewide regulations can be an obvious factor for companies, an employee’s quality of life and well-being is also just as important. When relocating, employees need to know the state can be a livable destination for singles, couples, or families. Luckily, Texas offers a brilliant education system with 146 higher education institutions awarded over 271,000 degrees statewide, and top ranking graduate programs.
From major metros to small towns, we have beautiful communities statewide that offer low housing costs and abundant job opportunities that few states can compete with. Not to mention, a booming and dynamic culture that is home to hundreds of barbecue restaurants, wineries, live music venues, and museums.
8. Fair Legal System
Texas has been highly progressive and proactive to keep a fair and functioning legal system. From major reforms made in 2003, 2005, 2011, 2013, and 2015, Texas keeps businesses, laws, and regulations in check. For instance, in 2005, several laws were passed to limit frivolous lawsuits. And in 2011, Texas passed the R&D Tax Credit legislation which allows companies to deduct certain qualified R&D expenditures from either their sales or franchise tax. If you’d like to see more, Texas Wide Open for Business lists more reforms passed in Texas that has changed our legal landscape.