The Lone Star State has experienced a surge in activity over the last few years, with a wave of new companies and residents choosing to call the state home.
Dallas-Fort Worth, in particular, has drawn people from across the country, especially younger Americans. Dallas was the second most popular city in the United States for millennial relocations in 2021. The city experienced a net increase of over 6,300 individuals from the demographic, in part attracted to the mature coworking industry.
It is not just millennials moving to the region but businesses as well, with North Texas experiencing the second-highest number of relocations in the state in 2021.
This year, at least 23 companies have moved to Texas. While the figure represents a 63% reduction from the 62 businesses that landed in 2021 — including 27 to DFW alone — according to Ed Curtis, CEO of YTexas, last year was an outlier, driven by the unique environment set off by the pandemic.
“2021 was the biggest year for relocation in the history of Texas. … It was all the buildup from Covid, and then 2021 is when they made the move. It is still happening,” stressed Curtis.
Since the beginning of 2020, 110 companies have relocated to Texas, with many landing in Dallas-Fort Worth. Last year’s transplants originated from 17 states and three countries.
According to Curtis, the volume of businesses arriving is a testament to the state’s “diverse” economy.
“It used to just be oil, gas and real estate. Now, it is everything. Not many states have that luxury,” said Curtis.
Earlier this year, Caterpillar announced its headquarters would move from Deerfield, Illinois, to DFW. The massive construction and mining equipment manufacturer — with sales and revenues of $51 billion in 2021 and a headcount of over 107,000 — will make its new home in Irving in the northwest of the Metroplex.
Other notable announced moves to DFW include cloud networking company Aviatrix to Dallas, autonomous robot courier manufacturer Clevon to Fort Worth, and digital infrastructure firm Extenet Systems to Frisco, to name a few.
Businesses continue to be attracted to DFW and the rest of the state for the robust economy, lack of corporate tax, and large pool of skilled residents. According to Curtis, sizable investments by Tesla and Samsung have likely helped increase the region’s profile.
“Supply chain is a big word these days. When you look at Tesla and Samsung supply here, it is generating a lot of momentum,” he said.
“I think the continuous expansion and relocation of these first-, second- and third-tier suppliers is going to be a slow roll,” Curtis added. “I think the next few years is going to be a lot of these small and mid-sized companies.”
Though some companies from other states are relocating to DFW, many opt for the areas of the metroplex surrounding Dallas, rather than the city of Dallas itself. Dallas-based companies are also being pushed out of the city in favor of areas like Fort Worth and Irving, as both local and out-of-state businesses and developers are frustrated by Dallas’ onerous building permit process and its high rates of crime and vagrancy.