“Fortune 500” magazine publishes profiles of the top companies in the world, that are not only high money makers but also leading employers. In the last year alone, the top 500 companies globally created $30 trillion and provided employment for over 67.7 million people in over 33 countries around the world.
The Fortune 500 companies in the United States make up over 65 per cent of the Gross Domestic Product. These major companies contribute over $12.8 trillion in revenues in the US alone. These major powerhouse organizations are responsible for employing thousands of workers and can make great impacts on local economies. However, it is questioned as to where the most popular states in the US would be the home for the headquarters of such companies.
Research by RS Components has put together a top 20 list of the best states in the US that are home to a number of Fortune 500 company headquarters that make the most money. The list is compiled using the best-to-worst performing businesses with the best listed states first.
The state that was listed in first place was New York (the Big Apple). New York has an economy of over $1.4 billion each year. With over 58 headquarters of a number of the largest companies in the US. The state is home to companies such as American Express, Goldman Sachs and CBS and generates a collected amount of $1 billion yearly. That amount alone is 1,600 times more than the average national income of the US. New York is known as one of the world’s largest global hub of business and finance in the world.
Next to New York in second place in the Lone Star state, Texas. Texas is home to over 50 large companies and generates a $1.4 billion economy each year. A number of the companies include giants like Dr. Pepper, Vistra Energy and Kimberly-Clark. The state has also become home to several energy companies.
The state of California comes in third place on the list even though the state generates more money through its 49 company’s headquarters that both Texas and New York. The state creates over $1.5 billion in revenue each year. When the top three of these states are combined, house the top 33 percent of the best companies in the United States.
There are many different things that assessors use to determine whether a state or a city is considered to be a business hub. It must meet certain important qualifications. For example, the state must show ongoing investments and development increases. Other areas considered are network facilities that professionals are able to meet and talk about current industry trends.
By providing areas in which business leaders and other professionals can socialize and share ideas, new business can be formed through these new relationships. If a state or even a city is able to accommodate businesses communications between other organizations, then that area is on the right road to becoming a central “hub” in business.
However, with success also comes downfalls. A business hub can also be a hectic and busy place. Such places are normally high in population and increased traffic. The noise generated by normal daily actions may be intense and can make attending meetings or making phone calls more difficult. If cities are unable to grow with the ongoing business expansion, then space for new offices becomes quite limited and therefore quite expensive. A number of the larger businesses have decided to eliminate this effect and moved their HQ to areas that surround the city to manage the growth.
Top 10 states for a number of business headquarters:
- New York – 58 headquarters
- Texas – 50 headquarters
- California – 49 headquarters
- Illinois – 37 headquarters
- Ohio – 25 headquarters
- New Jersey – 22 headquarters
- Virginia – 21 headquarters
- Pennsylvania – 20 headquarters
- Minnesota – 19 headquarters
- Florida – 18 headquarters