The construction business sweeping the country is certainly proof that everything is bigger in Texas. Despite the fact that the boom is occurring in many different states, its impact is more noticeable in Texas. Following the pandemic, many businesses are opening new offices, and Texas has become a popular location for them. Many factors have contributed to the boom, and it’s generally positive for the southern state.
What is a Construction Boom?
A construction boom occurs when a large amount of construction is carried out in one area. These booms often coincide with industrial growth, since not only are new factories and offices being constructed, but also residential areas. Also, they can develop after an industry has been forced to slow down for external reasons, such as an economic depression or a pandemic. The construction boom can boost the economy of a state and create employment opportunities.
Why is it happening in Texas?
A mere glance at Texas is enough to show that it is a great place to live. A booming economy, mild climate, no state income taxes, and an ideal location are among the reasons why companies prefer moving to Texas from all across the U.S.
Furthermore, the state of Texas is business-friendly, making it an excellent location for existing and new businesses alike. Construction boom results from the need for these companies to build offices, and residences. It shouldn’t surprise you to see heavy equipment vehicles in Dallas or man camps in Odessa TX.
In the following essay, we’ll explore why businesses are relocating to Texas in more detail.
1. No State Income Tax
The Texas Constitution prohibits any form of personal income tax. State revenues are instead derived from high sales and taxes. This allows Texas to remain an attractive state for both businesses and employees.
In a report by the Tax Foundation, states without income taxes grew twice as fast as the nation over the past decade, while gross state product increased 56 percent faster there. Tax-free income and a thriving economy make Texas a desirable location for any company.
2. Large Talent Pool
One of the most important aspects of any business is ensuring that the company has access to talented workers. The local universities offer a pool of bright young minds in a variety of fields, ranging from the creative industry to engineering. Texas was recognized as one of the top two states for millennial and boomer entrepreneurs to launch their start-ups because of its vast talent pool.
3. Open to Innovation
Tech is one of the fastest-growing sectors in the country, and its innovations aren’t just restricted to Silicon Valley. Several technology industries thrive in Texas, including advanced tech and manufacturing, aerospace, aviation, and defense, biotechnology, information technology, and petroleum refining. There is no doubt that Texas has put itself on the map with its diversified economy and is a great place for innovative ideas.
4. Friendly Climate for Small Businesses
According to the U.S. Small Business Friendliness Survey, Texas scores an “A” in terms of its business climate. Each state has been graded on factors such as overall friendliness, ease of hiring, regulations, tax code, training programs, and more. If you are beginning your entrepreneurial journey, it is safe to say that there is no better place than Texas. However, having this grade doesn’t guarantee business success in Texas, but it may give you advantages and resources.
5. Great Weather and Food
When a company opens a new office, some employees might need to relocate there for a while. It’s equally important to consider your life outside the office when moving to a new city. Texas has a warm climate that avoids the humidity of California and the bone-chilling winters of New York. Additionally, it has iconic foods like barbeque and Tex-Mex. You’ll find picnic areas, hiking trails, off-road biking, as well as nature preserves, and parks where you can relax.
Is this a Good Thing?
The answer is affirmative from many angles. This bodes well for the state economy since more companies are moving here. When Toyota moved its US headquarters to Texas, it created thousands of jobs that needed to be filled, as well as bringing in California natives who relocated with Toyota. The move led to a surge in the housing market, and demand for houses has been high ever since.
The North Texas construction business industry will also benefit from JPMorgan and Liberty Mutual’s plans to build extensive corporate campuses in Plano. These companies will hire contractors to build state-of-the-art corporate campuses with amenities like gyms, childcare centers, convenience stores, pharmacies, and cafeterias. Plano has such a high concentration of companies that it is known as the “5 Billion Dollar Mile.”
It is likely that you will see man camps or other forms of temporary housing during construction. Man camps are a cheaper alternative to renting apartments when you relocate a large group of construction workers. They are also safer than tents. Installation time is shorter, man camps can be easily adapted to different setups and scaled according to the number of workers, and they are durable. Imagine you need a toilet block, a canteen to provide snacks while working, and storage for tools. You could accomplish all of these things for an affordable price through man camps.
The changes coming to Texas are a sign of improving job opportunities and economic windfalls. With its deep talent pool, favorable personal and corporate tax rates, business-friendly climate, great weather, and innovative thinking, Texas is experiencing a major construction boom. This will ultimately result in significant job growth and industrial development. Whether you are looking for a new job, an entrepreneur about to launch your first business or a high-ranking official at a major corporation, Texas should be on your radar.