Leaving NYC, Big Red Car, who’s leaving New York now? Financial enterprises.
Big Red Car here in the slightly gray ATX – still, On Earth as it is in Texas, y’all!
A recent announcement that NYC headquartered AllianceBernstein Holding LLC was moving its headquarters and 1,000 jobs to Nashville caught my attention.
It is a phenomenon which is playing out right here in Austin and Texas, in general. Firms and individuals are leaving California, Chicago, and NYC to relocate to Texas and its pro-business, nice weather, no taxes environment.
Nashville has some of that Southern mojo working in its favor, but this is all about money – real estate, taxes (state and city), employment expense, and flight from an ever increasing burden.
It is about the money, y’all.
Recent noteworthy moves
In recent years, the following moves – focusing on financial industry – have occurred.
1. Pacific Investment Management Co is moving to Austin By God Texas.
2. Goldman Sachs is building its operations in Salt Lake City.
3. Jacksonville, Florida snagged Deutsche Bank AG’s expansion in its city.
4. Now, AllianceBernstein Holding LLC is moving to Nashville for music and BBQ.
It is not all bad, though. JPMorgan Chase & Co. has committed to build a new corporate headquarters in NYC on Park Avenue.
So what, Big Red Car?
Fair play to you, dear reader. It is not the end of the world.
NYC is still the epicenter of all things financial but employment is down about six percent, first reduction in financial sector employment in the Big Apple since 2013.
Still, 177,000 people come into Wall Street every day to move the money. After gains in employment in 2014, 2015, 2016, the year of 2017 saw a loss of total jobs.
Why, Big Red Car?
Simple, dear reader, money.
NYC (California, Chicago, please listen in) is just too damn expensive. The rent is too damn high. The wages are not competitive with flyover country.
Follow the money.
Last thing – these are big, influential, powerful companies. Your AllianceBernstein Holding LLC is managing $550,000,000,000 and employs 3,500.
Last one out of town, remember to turn off the lights.