In a shift that has reshaped the business landscape, the migration of financial firms from Northeast and West Coast capitals has created a r ift in the financial industry's geographic footprint. This phenomenon, often attributed to the allure of lower taxes, milder climates, and reduced living costs, has led to a significant exodus of over 370 investment companies, representing an astonishing $2.7 trillion in combined assets. Southern States like Florida, Texas, Tennessee, and North Carolina have emerged as the favored destination for these financial giants. Leading to a remarkable opportunity for architecture and engineering (A/E) firms to become integral partners in this journey. By recognizing the potential, overcoming the challenges in these new markets, and fostering new relationships, A/E firms can win work that inspires success, innovation, and growth within these emerging financial hubs.
Capitalizing on the Financial Firm Exodus
An opportunity for A/E firms to help shape the future of finance.
At A Glance
The Southern Surge
Decline in NYC's Finance Jobs
Win More Work in New Business Hubs
References
At A Glance
Post Overview
- Financial Exodus: The Southern US is becoming a financial hub as firms migrate from the Northeast and West Coast.
- Opportunity Knocks: Over 370 financial companies, with $2.7 trillion in assets, are relocating.
- Favored Destinations: Florida, Texas, Tennessee, and North Carolina top the list.
- A/E Partnership: Architecture and engineering firms can play a pivotal role in this financial shift.
- A/E Strategies: Win work in the South through media outreach, case studies, social engagement, and industry-specific content.
- Building Trust: Showcase industry knowledge, address financial sector challenges, and demonstrate your problem-solving capabilities.
This surge is particularly evident in Florida, which has eclipsed Connecticut—a long-standing hedge fund capital—in assets under management. However, New York’s leading position is also waning. A comprehensive report by the New York State Comptroller unveiled that NYC’s share of finance jobs has been in steady decline. Dropping to a 33-year low of 17.7%, down from 33% just two decades prior. On the other hand, southern states are growing rapidly, with Goldman Sachs doubling their employment numbers in Dallas over the past three years. These southern states are receptive to new opportunities too, as Goldman Sachs received an $18 million tax break from the Dallas City Council for their new $500 million office tower downtown.
Decline in NYC's Share of Finance Jobs
But what does this mean for A/E leaders like you? There is a huge opportunity to position your firm as a
crucial partner in the transformation of the Southern business landscape.
- Begin pitching stories of relevant work to media outlets in the southern region.
- Share or Reshare project profiles/case studies about impactful existing work in these target areas.
- Start incorporating state-specific hashtags on social media to build the right visibility for your brand.
- Create blogs, social posts, and collateral that are relevant to the nuanced challenges of the financial sector so you’re top of mind when they consider migrating south.
Sharing these kinds of valuable insights proactively can help set your firm apart from others.
Engage financial firms with content that explains your knowledge of their industry to build trust and a reputation of authority. Discussing
current trends in the financial sector can draw interest from this audience, empathizing with their pain points shows you understand their
challenges, and providing proof others points of how you’ve helped other solve them positions you as the right partner.
References:
Office of the New York State
Comptroller
The
City | Reporting to New Yorkers
The Wall Street Journal
US Bureau of Labor Statistics
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