The company is attracted to Sun Belt in a tax-friendly environment, “large employee base”

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The company is attracted to Sun Belt in a tax-friendly environment, “large employee base”

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Companies have flocked to the Sun Belt for its favorable business environment, with one executive noting that tax incentives and a “large employee base” have incentivized his materials science firm to operate in Arizona.

Footprint Senior Vice President of Sales Jeff Bassett said in a live interview with FOX Business’ Grady Trimble on “Varney & Co.” Wednesday that the company “needed a solid foundation” and was lured to Arizona as the area had employees trained as materials scientists, engineers, among other roles “all the way down the chain.”

“We found that Arizona had a huge attraction due to the facilities and educational institutions and just a great employee base to begin with,” Bassett explained.

Footprint, based in Phoenix, is a company founded with the goal of “creating a healthier planet,” according to its website, which added that the company invents and manufactures “solutions that replace plastic for use in short term”.

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The company, founded in 2014, noted that it helps retailers and food companies “shift to plant-based solutions, reduce CO2 emissions, reduce landfill waste and meet sustainability goals.”

Phoenix skyline at sunset (iStock / iStock)

Bassett also cited tax incentives as one of the main reasons for the company’s choice to operate in the state.

“Those early start-up costs, getting the training credits and the property tax negotiated in those agreements and incentive plans were really critical and we found that both Arizona and the specific city we’re in had one of the best packages we have found, “he said.

From Arizona to Texas to North Carolina, the Sun Belt is becoming a hotspot for business relocation as companies in the United States are cutting costs by moving south.

Jeff Holzmann, CEO of wealth management firm IRM Services, said moving from the New York-New Jersey area to Dallas saved the company millions of dollars in less than two years.

Holzmann said his company is paying about 60 percent less in Dallas than it would in New Jersey, noting that the figure would be “even less” than in Manhattan.

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He added that the Sun Belt region is “a great place to stay” as “the prices are affordable” and “the talent is around” and seeks opportunities.

Tesla, Apple, and Hewlett Packard Enterprise are some of the tech giants that are also heading south.

Samsung is another major company that relocates some of its operations to Texas. This move alone will open approximately 2,000 jobs in the Austin area.

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Joy Addison of FOX Business contributed to this report.

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