Every month we dig into a project management-related “Top 5” list. This issue, it’s all about company moves—including where, why, and how major brands are pulling up roots. And in fact, there’s no shortage of big-name relocation stories to cover.
The decision to move a company is never easy. Countless factors—including operational expenses, market factors, talent pools, proximity to target customers, etc.—determine if, when, and where corporate relocation makes sense. Learn more about the biggest company moves from the recent past, present, and future. These examples could help you confirm or question your team’s relocation proposal.
1. Burger King Makes a Whopper of a Move…to Canada
In the process of buying Canadian-based Tim Horton’s, Burger King found good reason to relocate. The international move sets the table for a “tax inversion” plan that will effectively lower BK’s U.S. tax responsibilities. And even though many American customers aren’t happy, Burger King shares have risen significantly since the corporate relocation announcement. The combined company—now the third largest fast food chain in the world—will be headquartered in Canada.
2. Hertz Drives Business from New Jersey to Florida
Nobody knows travel and tourism better than the professionals in Florida. Tapping into that massive pool of knowledge and talent is one of the main reasons Hertz opted to relocate its corporate headquarters to Estero, Florida. Although senior leaders at Hertz saw big upsides to making a big trek down south, they will maintain certain divisions (ecommerce and financial departments) in Northern New Jersey.
3. Cadillac Leaves Detroit in the Dust
Despite its longstanding role as America’s “Motor City,” Detroit doesn’t exactly conjure up images of luxury or sophistication. Accordingly, Cadillac is spreading the news about a headquarter move to swanky SoHo, in lower Manhattan. NYC prices and costs of living are often blamed for driving businesses away, but GM leaders say that New York makes sense for Cadillac right now. The proximity to world-class marketing teams and Cadillac’s target buyer segment is a driving force.
4. Bank of America Investing in Boston Brainpower?
Sometimes corporate relocation helps to underscore an entirely new business strategy. In BoA’s case, rumors of a future company move to Boston derive from senior management shifts and capital market opportunities. Analysts believe Bank of America will look to access more top-tier banking talent in Massachusetts’ notoriously well-educated hub. In the last few years, Boston’s Innovation District has attracted more than 200 new companies and added more than 5,000 jobs.
5. FirstEnergy Corp May Bounce from the Rubber City
With their longtime lease about to expire, Akron-based FirstEnergy is a prime candidate for corporate relocation. Akron officials want to keep the company, which no doubt holds an important place in the local economy and community. This will be an interesting case to watch, in terms of weighing relocation pros versus cons. Moving 900 HQ employees from the current, 19-floor facility will certainly be a daunting task. But a newer space with upgraded amenities is often a powerful tool for better recruitment, retention, and overall productivity.
Which states and cities are ideal destinations for corporate relocation? Where are the key players in your industry headed? Stay tuned for a future blog post on how and where American businesses are moving.