Silicon Valley Is Moving to Texas

Big companies and small ones are moving from the oppressive, expensive and hateful Silicon Valley, to the Free State of Texas.

“Companies have been migrating from California to Texas for many years, but I don’t think three such large companies have all made such announcements in such a short time. Hewlett-Packard is listed on the Fortune 500 twice, one as HP (which makes office products) and one as Hewlett-Packard Enterprise (which runs server farms). Combining them would make HP #35 on the list, right behind Dell, which is already headquartered in Texas.

Even before moving its headquarters, Hewlett-Packard had more employees in Houston than any other city. This reflects past trends where Silicon Valley companies kept their highest-paid workers in San Jose but built their factories in other cities where housing was more affordable. Apparently, California taxes and housing prices have now gotten too high even for Silicon Valley executives.”

Newsom has said California could be closed thru the whole of 2021.  By then, few will be working in California, suicides and drug overdoses will skyrocket.  We are well on our way to be one of the worst Third World States in the world.

Silicon Valley Is Moving to Texas

By The Antiplanner, 12/18/20    

On December 1st, Hewlett-Packard–which has been headquartered in Silicon Valley since 1939–announced that its corporate headquarters would move to Houston. On May 9, Elon Musk announced that Tesla was moving its headquarters to “either Texas or Nevada,” but on December 7, he revealed that he personally had moved to Austin. On December 11, Oracle announced that it was also moving its headquarters to Austin.

Companies have been migrating from California to Texas for many years, but I don’t think three such large companies have all made such announcements in such a short time. Hewlett-Packard is listed on the Fortune 500 twice, one as HP (which makes office products) and one as Hewlett-Packard Enterprise (which runs server farms). Combining them would make HP #35 on the list, right behind Dell, which is already headquartered in Texas.

Even before moving its headquarters, Hewlett-Packard had more employees in Houston than any other city. This reflects past trends where Silicon Valley companies kept their highest-paid workers in San Jose but built their factories in other cities where housing was more affordable. Apparently, California taxes and housing prices have now gotten too high even for Silicon Valley executives.

Elon Musk is outspoken, as usual, about the fact that he was moving to avoid regulation, but high taxes and high housing prices must also figure into the moves. This is a bit ironic since California regulations on automobiles have been driving sales of Teslas and other electric cars. Thanks to those rules, California accounts for roughly half of all electric cars sold in this country.

This irony doesn’t apply to HP, Oracle, or other companies moving to Texas. In HP’s case, the irony is that the Packard Foundation, one of the largest foundations in the country, gives money to environmental groups that support the urban-growth boundaries that have made Silicon Valley housing so expensive. That’s something like the irony of the Rockefeller foundations and Pew Charitable Trusts giving money to anti-fossil-fuel groups, since HP doesn’t have any more say over the Packard Foundation than Exxon has a say in how the Rockefeller foundations distribute their funds.

Before these companies moved, more Fortune 500 companies were already headquartered in Texas than California: 50 vs. 49. If a few more companies move to Texas, it could take the top spot from New York, which had 58 Fortune 500 headquarters in 2019.

That could happen, though some companies might be fleeing something other than taxes and regulation. In October, only 10 percent of the one million office workers who normally work in Manhattan were still working in offices and office vacancy rates were the highest since 2009. Marketwatch reports that the commercial property market in New York City is tanking so badly that office building owners have proposed to convert a million square feet of offices to residences. We won’t know for a couple of years how this will affect companies in the long term, but my bet would be that New York will lose a few headquarters to Texas, North Carolina, or other lower density and less regulated states.

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.

Comments

  1. ExCaliExpat says

    How come our jackass Governor isn’t braying about how successful the state is, while its biggest, most successful tech companies expand out of state???

    And don’t fool yourselves, the new kids on the block like Facebook and Google are also expanding out of state in Colorado and Texas as well…

    Newsom is a complete and utter failure and a total buffoon…

    • THE CAPTIVE says

      Even more stupid is that gruesome-newsome wants to tax these companies after they have moved. How much of a tyrannical move is this? It is wrong in each and every way. The criminal bully is the governor and it would be just to depose him and try him for treason. How much more will he ruin CA?

  2. Tis the season for giving. Newsom gives our wealth to Texas, Florida, Nevada, etc.

    Of course these rational states are more than willing to take. The problem is Newsom has already made the State of Calif. a taker.

  3. Does this mean the “stinkin thinking “ leaving as well?

  4. Philip Gallanders says

    The sad thing about all these moves is that so few of the “movers” actually learn to discard their California mind-set. They bring with them, a willingness to impose all of the mind-numbed social justice programs and taxes that have destroyed California. So,, these refugees from California’s socialism begin to destroy the havens of freedom that they moved to.

    Sad!

  5. From this point on, red state people need to scrutinize every candidate for elective office, from school boards to DA’s/judges. Keep the blue poison and social rot out. Invite the blue proponents to go back where they came from.

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