Why Corporate Relocations, like Buff City Soap, Keep Coming to Dallas-Fort Worth

Original Article: Dallas Business Journal - September 15, 2020

The COVID-19 pandemic has significantly impacted corporate relocations and expansions, even in Texas, which has earned its long-standing reputation as a hotspot for business growth.

According to Ed Curtis, founder and CEO of YTexas, interviewed by the Dallas Business Journal, Texas, and DFW in particular, remains a prime destination for companies in spite of how the pandemic has reshaped relocation trends.

While high-profile moves, like Tesla’s, make headlines, numerous smaller companies are quietly relocating, especially those in manufacturing and consumer goods sectors. Examples include Buff City Soap, Dasan Zhone Solutions and Eatery Essentials, all of which have announced moves to North Texas.

Smaller companies are making quick relocation decisions to Texas for its favorable business environment, including lower taxes and less regulation. Unlike larger corporations that may have to slow down or adjust major projects due to the pandemic, smaller firms often have more flexibility, allowing them to position themselves near major players like Toyota and Tesla. This allows them to benefit from the ecosystem of larger companies while adapting swiftly to market changes.

Texas’ central location, which facilitates faster supply chain operations, is also a key attraction for companies prioritizing efficiency in delivering products. Post-pandemic, industries that rely heavily on quick product distribution are expected to continue favoring Texas. However, economic development organizations face the dual challenge of not only attracting new companies but also retaining them to ensure long-term success in the region.

These trends show that while COVID-19 has introduced some challenges, it has also accelerated decision-making for smaller companies looking to tap into Texas’ economic advantages.

Curtis highlights that remote work, shifting supply chains and a reevaluation of office space needs are influencing how and where businesses expand. Despite these changes, Texas’ business-friendly environment, favorable tax structure and quality of life continue to attract companies looking to relocate or grow in the state.