How Missouri can become the next tech hub? Check out this article on how after California, Missouri could be the next tech hub. The COVID-19 pandemic altered how people moved throughout the world. Most people’s lives look a lot different now than they did in February 2020, thanks to social separation, ubiquitous disguising, and telecommuting. The tech industry in the United States has not been spared from these changes.
Technology companies have long clustered in heavily populated cities like Seattle, San Francisco, and New York City. The emergence of the coronavirus, on the other hand, offered ideal conditions for business expansion and realignment. Tech employees began finding sanctuary in Midwestern states with more space and lower living costs as a result of remote employment. As labor fled the coasts, so did technological companies.
As a result, states that were previously dismissed as “flyover states” have risen to become some of the country’s most important tech centers. For example, in the first year of the epidemic, St. Louis and Kansas City were among a select group of American cities that experienced positive growth.
They created 14,000 tech jobs in total, along with other leading towns, and St. Louis’ tech growth rate increased by nearly a full percentage point in 2020. The Brookings Institution named Kansas City and St. Louis as “rising stars” for job growth in computer jobs before and during the pandemic, which is unsurprising. Furthermore, they are now two of the greatest cities in the tech business for women.
Why Missouri Is the U.S.’s Next Tech Hub
There are numerous options for technology companies in Missouri when it comes to expanding their operations. For one thing, IT workers are flocking to Missouri in droves: whereas California was the most departing state in 2020, Missouri was among the top ten states in terms of new residents.
Of course, there are a variety of reasons why someone might want to relocate, but Missouri’s attractive 89.8 cost-of-living index is hard to ignore. Homeownership is actually also out of reach for many in coastal cities, where real estate prices are exorbitant. Missouri, on the other hand, is ranked seventh in terms of housing affordability, with a median home value of $168,000.
The Show-Me State is competitive in terms of business benefits. It is ranked sixth in overall business costs and tenth in economic health. With a corporate income tax rate of 4% and extensive tax exemption prospects for data centers, Missouri is also one of the most tax-friendly states in the US. It’s no surprise, then, that Meta chose Kansas City as the location for its $800 million hyperscale data center.
Missouri is also investing in battery-related technologies and electric vehicles. CBI published a report in 2021 claiming that lead batteries could be technically and practically viable for electric car charging. As a result, Missouri published a request for proposals (RFP) for the design, construction, and installation of these prototypes around the state.
Consider These Factors When Choosing a Technology Company’s Location
There’s a lot to be thrilled about when it comes to Missouri’s tech companies. Here are three pointers for entrepreneurs looking to expand their firm in the Show-Me State:
1. Don’t be in a hurry.
It’s vital to weigh all options when considering a business growth or move. Humans are creatures of habit, so they’re more likely to stick to what they know or choose towns with a well-known brand name. However, areas like Columbia, Wentzville, and Springfield, which are among Missouri’s fastest-growing cities, must be considered.
Before deciding on a location, savvy business owners will conduct extensive study. For numerous sites, this includes looking into tax structures, real estate pricing, local rules and regulations, and the local talent pool.
2. Pay attention to the talent.
Go to where the talent is – and is being cultivated. Consider that the Midwest produces a quarter of all computer science graduates in the United States. Missouri is first in on-the-job training and third in apprenticeships, indicating that the state’s workers are well-trained.
One of the workforce development initiatives available in Missouri is the Fast Track Workforce Incentive Grant, which provides financial aid to Missourians who seek education in high-demand industries. Innovative projects such as LaunchCode began in Missouri and have since spread across the country.
3. Speak with state economic development officials for assistance with site selection.
Many governments and areas have dedicated teams ready to assist developing businesses, but entrepreneurs should make sure they got all of their ducks in a row first. For example, they need to know what criteria their technology company require in terms of location to be successful.
A business leader should approach the situation with the idea of forming a relationship. It’s not easy to find a business in a new state. It’s critical that the company and the community establish a good match. After all, these are long-term decisions that will have a long-term impact on many people.
It’s actually all too easy for business owners to ignore “flyover states” like Missouri, but doing so is a mistake. Missouri merits another look when it comes to growing tech centres in the United States. Fortunately, technology companies are beginning to pay attention to it.