By JLP | August 30, 2010
From Scott Burns’ The Great Migration: Lemons Into Lemonade
Get ready for one of the largest corporate migrations in history. It will happen of necessity as managements try to find ways to do things for employees without increasing payroll costs. The move will be from the expensive coasts to less expensive areas.
This is not a new idea. It has been going on for decades. But the driving force is stronger today because corporations have less pricing power. If they could find a way to make it work, they would offer a move with a pay cut that still increased the workers’ standard of living.
I can see one problem with this theory: supply and demand.
Those who live in higher priced areas of the country have higher prices because their property is in demand. If companies start moving people in droves, the housing market will become saturated and prices will have to come down, making the migration less beneficial to both companies and their employees.
It will probably work for the first movers but I don’t see this happening on a very large scale.