“The policies that are focused on job creation and re-skilling will increasingly favor technology, as will infrastructure investments to promote internet access and closing the digital divide.”
“The policies that are focused on job creation and re-skilling will increasingly favor technology, as will infrastructure investments to promote internet access and closing the digital divide,” Perkins said. The development and jobs created by these initiatives are likely to help spread established hubs and startups across a range of locations.
As TechCrunch said, “The future of startups is a decentralized, global ecosystem. Where wealth and knowledge aren’t concentrated, but shared and open – where there aren’t capitals, but networks.” So, what are the factors fueling that future?
What are the factors fueling new hubs?
Where will the new hubs, and the new jobs, be located? And, what are the essential resources that each location must foster to feed the fledgling growth?
The most recent CompTIA Tech Town Index highlights 20 cities with the greatest demand for new tech talent:
There are a few factors enabling the growth of these new hubs across the nation:
It’s not shocking that most companies – and workers – have become accustomed to delivering real results through remote work. The pandemic has forced adaptations that have often proven reliable enough for the long term. And new initiatives to expand remote broadband access could mean that workers could even maintain an always-on presence from a broader range of formerly isolated locations.
Cost of business
If a business can effectively shift its office costs to its remote employees, that makes it hard to argue with the savings. Even if there is a cost to productivity, collaboration or culture, the bottom-line costs look lower at the end. For the companies and work where a central office is essential, Embroker recently highlighted how Denver, Phoenix, Tampa and other cities offer lower business startup costs.
Proximity to customer markets
Many tech companies – especially in the B2B realm – have important customers or markets that are not based in southern California. So, savvy companies might see the opportunity to better position themselves near client hubs or other geographical needs and markets.
Equity and capital growth
What about the essential resource that is private equity and venture capital? As other pieces fall into place for a rising hub, localized successes foster a climate of potential and garner the attention and interest of investors looking for new opportunities.
Cost of living and recruitment
Lower startup costs often go along with a lower cost of living for employees, and Wallethub has highlighted a formula that pairs the cost of living with employment opportunities to show that some non-traditional hubs are making their way to the top.
Broadening tech base
Workers are wise to consider a wider range of locations – although California remains a hotspot for jobs, the span of tech jobs and geographies is ever-broadening as shown in the CompTIA Jobs Report. That means that workers won’t be limited if they want or need to seek other opportunities in the area – and companies won’t be constrained by a lack of local candidates.
Ultimately, Perkins said, the most powerful factor fueling hubs beyond Silicon Valley is demographic. TechRepublic has reported that young talent might not be as married to the tech meccas as was once thought – workers are now actually willing to move to a wider range of locations.