Corporate relocation can be a good indicator of the economy’s health. When times are tight, businesses tend to keep people where they are, rather than devote valuable resources to moving its workers. When things are looking a little more flush, on the other hand, companies are a little more apt to ship off or bring in employees in the interest of their expected growth.
Based on how employers expect to manage relocations in the coming year, it appears that the economy might be strengthening. The recently released Employee Mobility Survey reports that 40 percent of companies predict increased relocation activity in the next year, while another 54 percent expect them to stay at the same level.
These results indicate that companies are feeling hopeful about next year’s economic climate. Being willing to spend on employee relocation – for such things as out of state movers and moving van lines – means that they believe business will be good enough to make it worth their while.
Optimism about the economy can lead companies to take more risks not only when offering relocation benefits for employees, but also when it comes to deciding to relocate themselves.
Another recent study on the relative operating costs for corporate headquarters lends insight into how some companies decide where to base their business. The report, called BizCosts, analyzed 55 North American cities and compared the prices associated with maintaining offices in those areas.
Based on such factors as taxes, construction costs and power expenses, the report helps companies decide where to base their operations.
New York City, unsurprisingly, topped the list with a projected cost of $47.2 million for a 100,000-square-foot headquarters with 500 employees. On the other end, Halifax, Nova Scotia, came in at $32.9 million.
With the economy showing signs of recovering, these factors can come into play for a company considering relocating. The expenses of hiring corporate relocation companies or even, in the case of Halifax, an international moving company might seem daunting, but could be worth it when considering the long-term savings associated with a less expensive city.
With a more favorable economic climate expected, next year could be a big time for both employee and corporate relocations.