Chevron is Moving to Texas With 9 Other Large Companies That Have Left California For Texas
Companies are fleeing California to go to Texas, and Chevron is one of the most recent companies to leave California. Most people can assume why people and companies are leaving California. It is just the environment that Texas offers to these companies. The taxes are lower (no income tax for personal or business), the cost of living is lower, houses cost less, and there is a massive talent pool for tech. The bonus on top of everything is that Texas has great BBQ. That may not be a factor, but it is a good bonus.
Factors That Could Make Companies Move
Many companies are choosing to move for a couple of reasons. One is that Texas offers a bit more land for a lower price to build massive campuses for thriving companies. The tax benefits are also a way for Texas to bring in more companies. When Covid hit, companies needed to think about how to do business differently. These are all factors that affect companies moving from California to Texas. Some of the factors could also be politics.
So let’s break down these nine large companies that have left California for Texas.
1. Chevron
On Friday, Chevron announced relocating from San Ramon, California, to Houston, Texas. They are the second largest oil company in the USA, and they are looking for a place with a laxer and more business-friendly environment.
The relocation has started due to a lawsuit. California started a suit against oil companies for contributing to a climate change issue that has brought about heat waves, fires, and environmental disruptions in California. Chevron will also reunite with more of the company that is already located in Houston, which brings about more continuity as well.
2. Charles Schwab
In 2021, Charles Schwab moved from San Francisco to Westlake, Texas. Chairman and Founder, Charles Schwab, said they are moving to reduce costs. The high taxes in California have put pressure on them to find a place to reduce costs.
3. Tesla
Many new laws have recently been passed that have made billionaire Elon Musk decide to move his companies to Texas. Tesla had already moved to Texas but kept much of their engineering core in California.
4. Space X
Space X, another Musk company, is moving its facilities from California to Texas and parts from Delaware to Texas. Due to politics, Musk is trying to find a place where he and his businesses can thrive more. Not everyone is going to like these politics, but that is Musk’s claim on why they are moving the headquarters.
5. X (Twitter)
Musk has also decided in the last couple of weeks to move X, formerly known as Twitter, to Austin, Texas. The company will leave San Francisco and move its headquarters to Austin. Some other parts of X will be moved in and around the bay area, like San Jose, but the headquarters will be officially moved to Austin. Musk claims it is because of a new law that was passed in California that he claims is harmful to children.
6. Oracle
Oracle moved its headquarters from Redwood City, CA, to Austin, Texas, the year after COVID to give more flexibility to their employees. That was quite short-lived, as Oracle plans to relocate to Nashville. Larry Ellison, the CEO, calls Nashville a “healthcenter.” A panel in the Tennessee government, approved $65 million in incentives to bring Oracle to Tennessee. With it will come jobs and more tech-oriented industries in the area.
7. CBRE
CBRE had been in California for nearly 100 years. It started operations in San Francisco in 1906, and as it grew, it morphed into various different spin-offs. It is one of the largest commercial real estate companies in the U.S.A. After 100 years, it moved to Dallas in 2020. Not everyone was moving to Dallas, but the headquarters were making the move. They already have a large portion of the company located in Dallas, and the president of the company resides there. So it just made sense for the move.
8. Hewlett Packard Enterprise
H.P. was the company that started Silicon valley. A company formed in a garage in Palo Alto (sounds like Apple). During Covid, as people are rethinking office space and many other things when running a business, H.P. needs to make a decision. Their largest employment center was in Houston, and making the move makes sense financially with lesstaxes, and operationally. Some of their offices in California consolidated to their San Jose campus. The whole company did not move, just the headquarters.
9. AECOM
One of the world’s largest and most trusted infrastructure companies moved its headquarters in 2021 from Los Angeles to Dallas. The move allowed the company to come closer to the tech and company hub in North Texas. They left the company pieces in California but moved their headquarters.
10. McKesson
In 2019, McKesson, the largest pharmaceutical company in the USA, moved its headquarters and 76,000 employees to Irving, Texas. Many of the largest companies were relocating to Texas, and this was felt as the right move for McKesson. At that time, they would have been the 22nd of the top 500 companies in the U.S. to move to the North Texas area.
Companies Are Moving Away
Companies moving away from California has been a recent trend. Many people will blame the politics of it all. California still has the 10th largest GDP in the world, but many individuals and companies have started to get a bad taste in their mouths from the high prices of property, high cost of living, and taxes. So they have chosen to leave and relocate. It doesn’t mean California is a wrong place to be, but sometimes things change. Other areas may offer grass, which is a greener place to relocate.
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