Alot of moves are in the works by corporate headquarters across the U.S., for reasons ranging from cost containment to Asia attainment.
The latter is one of the primary motivators for Fairchild Semiconductor‘s move of its HQ from South Portland, Maine, back to San Jose, Calif., returning to the Silicon Valley roots that cultivated the company in its original location of Mountain View in the 1950s. Fairchild CEO Mark Thompson told Bloomberg that being close to the pool of talent in Silicon Valley was a big reason for moving back. But the company also wanted its leaders literally nearer to operations and customers in Asia. The company’s fabrication plant and corporate offices in Maine, which employ 800, will not be affected.
Fairchild spokesperson Patti Olson says the move further aligns the company with markets and customers in such countries as India and Vietnam. “It also places Fairchild in close proximity to some of our major customers — also located in Silicon Valley,” she says.
According to the company’s most recent 10-K, the only other corporate offices it maintains are in Singapore. Of the 19 major manufacturing, warehouse, design and office locations it maintained around the world as of December 26, 2010, 11 were in Asia, including three in South Korea, two in China, and one each in Cebu, Philippines; Hong Kong; Penang, Malaysia; Taipei, Taiwan; and Tokyo. The firm had been based in South Portland since its spinoff from National Semiconductor in 1997.
The region also recently saw a 97,000-sq.-ft. (9,011-sq.-m.) lease and relocation at Stanford Research Park in Palo Alto by communications software firm Skype, which is consolidating from locations in Brisbane, Calif., and on eBay’s San Jose campus. CresaPartners managed the design, construction, and furniture selection process to support a more creative and collaborative environment. Additional services included budget and schedule development, building activation, and build-out, and now phase two is under way.
“What sets CresaPartners apart is their commitment and their energy to deal effectively with time-critical issues,” said Alex Bruce, Skype’s global head of real estate and facilities, in a press release. “Our North American headquarters project in Palo Alto was no exception, presenting distinct challenges with an aggressive schedule, a tight budget, and complex coordination needs.”
Sweet Spots Down South
Atlanta continues to be a headquarters haven. On April 13, Health Lean Logistics, a healthcare logistics and distribution company, picked the city for its U.S. headquarters and logistics base. A division of Spain‘s Gesaworld Group, the company will create 100 jobs, with the potential for a significant amount of additional indirect jobs through subcontractors and various service providers. The firm has developed a unique system to manage the consumption and supply of materials in healthcare facilities, and save those facilities’ proprietors money in the process. In addition to clients in Spain and Portugal, it has a significant customer base in Latin America.
“Atlanta is a leading international cluster of both applied information technology to the healthcare sector and supply chain logistics, and our arrival is one more proof as to how these living clusters attract best practices players regardless of geographical origin,” said Dr. Albert Tarrats, CEO of Health Lean Logistics. “The advantages gained by having direct flight access to our other international locations in Central and South America, as well as a number of other synergistic variables, separated Georgia from the rest of our choices.”
HLL plans to partner with Georgia Tech’s Supply Chain and Logistics Institute to share mutual expertise, and to collaborate on the institution’s logistics projects in Panama and Costa Rica.
On the same April day that HLL came to town, the Atlanta Development Authority (ADA) announced it was meeting its commitment to aluminum rolled products and can recycling firm Novelis Inc. by providing a $150,000 relocation grant from its Economic Opportunity Fund (EOF). The EOF is a deal-closing fund, created in 2006, that ADA manages on behalf of the City of Atlanta to entice significant business investment and job creation projects.
With the EOF offer in place, Novelis Inc. had announced in February 2010 that it would expand its Atlanta headquarters and consolidate operations from Cleveland, Ohio, adding 135 new jobs over two years to their existing 90 employee headcount.
Novelis has already exceeded its commitment by adding 150 new jobs and retaining 90. In addition, Novelis has invested nearly $14 million in 100,000 sq. ft. (9,290 sq. m.) of leased space in the Two Alliance building located on Lenox Road in Atlanta‘s Buckhead community.
In Florida, marine and aerospace engine component maker Chromalloy is doubling down. First, in early March it chose to invest $35 million in an industrial casting center and ceramic core manufacturing facility in Tampa, choosing to expand at its existing complex rather than build new in Texas or Nevada. In late March, the company, part of the Carlyle Group, announced it was moving its corporate HQ from Orangeburg, N.Y., to Palm Beach Gardens, bringing 70 jobs that pay an average salary of $88,000. Incentives totaling nearly $1 million from the city, Palm Beach County and the State of Florida helped the company pick the location over offices in eight other states.
Finally, it takes a mover to relocate. But sometimes those movers have to relocate themselves to best serve their customers. Such is the case with BuildMyMove, the country’s first provider of instant, binding online moving quotes for full service interstate moves, which in February announced plans to relocate its U.S. headquarters from Akron, Pa., to Overland Park, Kan., creating up to 50 new jobs in the state by the end of 2011 and an estimated 100-plus jobs over a five-year period. A cash infusion from Five Elms Capital and tax credits from the Kansas Department of Commerce helped to facilitate the relocation.
“We believe the Kansas City area is the best location to grow a business given the low cost of living, cultural opportunities and highly educated population,” said Rich Cray, COO for BuildMyMove. “The city ranks first in the United States for engineering talent on a per capita basis.”
According to a release from the state commerce department, Fred Coulson, managing partner of Five Elms Capital, played a significant role in the company’s relocation to Kansas. “Kansas City has been a leader in transportation for decades due to its central location and entrepreneurial culture,” said Coulson. “We are excited to partner with BuildMyMove as it joins the next generation of transportation innovators in the area.”
