At a recent meeting I attended, technology experts from Connecticut talked about the fact that there are markets – Austin and Chattanooga – where connectivity is much faster than virtually anywhere else in the US. In Austin, Google is installing Google Fiber, which will increase connectivity 100 times. Chattanooga is also moving “lightning fast”, in terms of connectivity.
These individuals believe certain “leading edge” companies, or parts of a business, will want to relocate because of the competitive advantage – the ability to process data quicker than in other places. Enterprises are fleeing the Northeast for business reasons as it is, and now may choose to relocate to cities with Google Fiber and other high speed internet access.
If you are an organization that has bigger and bigger files, you’re looking for the ability to send that data quickly, like Europe can today. In fact, Europe has incredibly fast internet capabilities in virtually every country. In comparison, the US has slow connectivity, even though it’s broadband.
For Connecticut to put in place the infrastructure needed for high-speed connectivity, a huge amount of money (several Billion dollars) would need to be invested. However, this could help CT “leap frog” from 49th in job creation to 2nd or 3rd, simply by adding this game-changing piece. The state government could help by creating a private-public partnership. Alternatively, it could be something that is managed by private industry or regulated, like gas, electricity and water.
You may see a shift in intellectual capital, simply because of better technological infrastructure. This could create a dramatic change for Connecticut’s economic fortune, because enterprises could grow and become economic engines.
A firm that I’m working with has people in Massachusetts, Rhode Island and Connecticut and are considering relocating. They need to consider the tax structure and existing technological infrastructure of each potential area:
- Is the technological infrastructure enough to offset the taxes (because work gets done faster) or
- Should they move to a state with a lower tax rate (but slower connectivity)?
This has become an equity issue because the areas that probably get the least amount of service are those areas that have not quite as many resources. The idea should be that people everywhere should be able to get the same connection speed!
If you are starting and growing a business, or have an existing business and rely on certain technology, does this make you think about relocating a portion of your business? Is there a way we might be able to help you think outside the box? Give me a ring and we can connect to see how NCA might be able to assist with your long-term real estate strategy.
203-461-8711