Cost Of Living As A Factor In Business Relocation

According to the United States Census Bureau, 40as well as lead to lower productivity over time. The
million Americans move each year. There are no hardcost of housing can also affect the ability of
statistics on the number of businesses that relocate,companies to attract and retain quality employees. For
but there is a growing trend towards businessesexample, some employers in Palm Beach County,
relocating outside of major metropolitan areas to cutFlorida, where the median home price is over $450,000
costs for themselves and their employees.There arehave had trouble recently in recruiting employees from
five main reasons why companies decide to relocate,out of state.However, when businesses consider
according to economic development researchers.relocating to less expensive, less congested areas of
They are: access to a quality labor pool, the need tothe country they have to consider access to a quality
upgrade facilities or equipment, the need to reach newlabor pool. There are many cities in the Midwest and
markets, the wish to lower costs and overhead andSouth that are large enough to support a corporate
finally, quality of life issues.It is this last item that affectsheadquarters, but often do not have the highly trained
employees most directly. Cost of living has a largeworkforce required. Community colleges and local
impact on the quality of life for the average American.workforce development agencies are working to
For example, the cost of living in Springfield, Missouri iscorrect this imbalance but it may be many years
estimated to be just 60% of the national average.before skilled labor is available in those places.There
Compare that to a large metropolitan area like Miamiare certain cities that have thrived due to their
where it costs 113% more that the national average.combination of high quality of life and available skilled
Larger cities like New York, Boston and Los Angelesworkforce including Austin and San Antonio, TX;
are almost off the map compared to the nationalOrlando, FL; and Nashua, NH. These cities continue to
average.Quality of life isn't just about money, either.grown economically while larger cities like New York,
Commuting time and costs in larger metropolitan areasBoston and Los Angeles continue to lose businesses
can seriously affect the mood and morale of workersto either suburbs or smaller cities.