California loses 360 companies to Texas exodus

In 2023, numerous companies continued relocating from California to Texas, a trend that has persisted since 2018. Recent reports indicate that over 360 businesses have departed California for Texas as part of a significant exodus. Notably, global tech company Simplilearn moved its headquarters from San Francisco to Plano, Texas, a decision that CEO Krishna Kumar stated was crucial for revenue growth. Other notable companies joining the relocation trend include Resources Connection Inc., which undertook a similar move to Dallas, and ABBYY, which shifted its headquarters from Silicon Valley to Austin. These relocations are indicative of a broader trend wherein businesses seek environments that foster growth and innovation. Texas has become particularly attractive due to its lack of personal income tax, supportive government policies, and thriving job market. Moreover, the demographic shift has seen Texas gain approximately 500,000 new residents in 2023, with over 102,000 of them originating from California. This influx is attributed to various factors, including the state’s strong job creation rates, economic expansion, and the ongoing homeowner insurance crisis faced by Californians, which has pushed many to seek better living conditions elsewhere. As California's population declines for the first time in over a century, the contrast between the two states has deepened, with Texas maintaining its status as the preferred destination for businesses and individuals alike. As a result, California continues to be seen as a state struggling with issues that prompt both personal and corporate exits, while Texas thrives as a leading state for business growth and economic stability.