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Another Fortune 500 company is relocating to Memphis

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AmandaHugginkiss Whistle-Stop

AmandaHugginkiss

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In regards of my comment here is how well Memphis and Nashville in Top 10 Southern HQ Relocations. This is why I say the future of Tennessee is very bright. I think its safe to say that the state is beginning to turn the corner. I remember seeing something a while ago pertaining to the many advantages for relocating company HQs to Memphis. It was a two column and about a 6 line list.. Memphis has very good Logistics which leads me to believe that Memphis will always be a force..

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AmandaHugginkiss Whistle-Stop

AmandaHugginkiss

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^ If anyone has anything negative to say about the city in this regard is just a "hater." This is just calling a spade a spade. I will try to find that list so all of the envious haters can get a lil business marketing lecture on how well Memphis is doing and how essential the city of Memphis is to the World..

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Rardy Burg

Rardy

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I thought I'd post the relevant portion of the site AHK linked to above. Quite interesting:

Memphis, Tennessee

Centrally located with a vibrant downtown

Memphis is home to three Fortune 500 companies' global headquarters including FedEx, AutoZone, and International Paper.

The city's prime location has been a major draw for these companies. Adjacent to the Mississippi River and crossed by seven federal and two interstate highways, Memphis also has the world's busiest cargo airport. More major metro areas can be reached overnight from Memphis than any other city in the central U.S.

Memphis also offers reasonable operating costs including some of the least expensive rates in the country and aggressive incentives to bring home corporate headquarters. In addition, the community offers a strong educational system including excellent higher education facilities. Making the city an even better place to live has been a priority in Memphis. The city has invested over $2.3 billion in downtown redevelopment, triggering the 10 th fastest city center population growth in the nation.

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memphismike Unincorporated Area

memphismike

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I actually work at ServiceMaster for one of the larger brands, and based on what I've heard from an "Officer" level executive, this is mainly an attempt to satisfty some antsy investors. For the most part, the investors believe in our new CEO, Pat Spainhour, who used to run Ann Taylor, and are willing to give him the time to turn things around before seriously exploring sellling or making private.

This in no way affects the move to Memphis, so no worries about losing a Fortune 500. Actually, a lot of moves are already in process, and we have a team evaluating the space situation for the rest to move. Most of us have our fingers crossed that they'll build us a true corporate campus on land we own on Forest Hill-Irene. I'd love to have a campus with amenities like FedEx, albeit on a much smaller scale.

ServiceMaster has hired two banks and a law firm to market the company to a buyer. Officials say this won't affect the move to Memphis, but it could hurt our civic pride if we lose a Fortune 500 (which we haven't gained yet). Daily News
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gatesofmemphis Unincorporated Area

gatesofmemphis

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I'd bet that in the FedEx and ServiceMaster case, the person recommending or choosing the location lives within 5 minutes of the location.

I think these choice of locations are very short-sighted. Forest Hill-Irene might be a nice place, but it's not going to get people excited about moving to Memphis. Same with FedEx' HQ and IT campus, even they're both beautiful campuses. In fact, the problem that gaushell mentioned, of FedEx attracting high-tech workers to Memphis, could be more due to their choice of high-tech campus location (Collierville) than any problems with Memphis. You're coming out of college, single, no kids, which is more likely to sell you on moving to Memphis: Downtown or Collierville?

I think FedEx's decision to move their IT Innovation group downtown to Emerge Memphis is very telling.

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Clobber Burg

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I'm curious what the reasons might be that companies like Serivce Master, FedEx, and IP have chosen to build suburban campuses. Why are they never considering downtown. And what is it about AutoZone that they did consider it. Is this because the Memphis government is not stepping up to offer incentives and encourage development in downtown? I really think a fortune 500 building a high rise tower downtown for their headquarters would be such a benefit for Memphis and the the economy. The things that would be brought to downtown by a company having many high paying jobs downtown would be huge. Think of the restaurants, retail, and services that would be developed to cater to them. Why is Memphis failing on this? Downtown should not be for entertainment alone. It should be the center of business and commerce as well.
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northernbizzkit1 Hamlet

northernbizzkit1

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I think you pegged it. That's the reason Clark Tower is where it is, along with the rest of East Memphis. And that's why FedEx and Service Master are in their locations. Corporations always build where their executives live. Just wait -- as DT grows with more high wealth residents (we're growing 10% a year DT), you'll see more and more companies relocating DT. But until then...

But don't forget -- suburban office campuses are nothing new. ServiceMaster in Chicago was suburban. So was IP in Connecticut. It's really not a scorn against DT or Memphis, it's just the way American companies tend to do business.

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tnse Whistle-Stop

tnse

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I'd bet that in the FedEx and ServiceMaster case, the person recommending or choosing the location lives within 5 minutes of the location.

I think these choice of locations are very short-sighted. Forest Hill-Irene might be a nice place, but it's not going to get people excited about moving to Memphis. Same with FedEx' HQ and IT campus, even they're both beautiful campuses. In fact, the problem that gaushell mentioned, of FedEx attracting high-tech workers to Memphis, could be more due to their choice of high-tech campus location (Collierville) than any problems with Memphis. You're coming out of college, single, no kids, which is more likely to sell you on moving to Memphis: Downtown or Collierville?

I think FedEx's decision to move their IT Innovation group downtown to Emerge Memphis is very telling.

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Clobber Burg

Clobber

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I totally agree with gatesofmemphis on this. I think FedEx would have been better served if they had located parts of their employee base downtown. It didn't have to be all of them. They are a huge company. Even 10-20% would be a huge help for Memphis. Why not move FedEx Kinkos from Dallas to Downtown? Why not FedEx Freight? Maybe just the marketing department. FedEx would be the biggest benificiary of more talented young people coming to Memphis. Why can't they see this? They are the premier and dominant global company in Memphis and TN. FedEx more than anyone else, could make a huge difference in the direction of Memphis. Why do they seem to be failing the community who could help benefit them the most? Give young urban professionals who are highly educated a vibrant community and a reason to come here. And give those already here a reason to stay. People in their 20s, 30s, and early 40s, want a community with cuture and a social scene. Granted 100% of them would not choose to live downtown, but they would gladly come to anywhere seen as cool and hip with a buzz about it to spend time and their money. Downtown provides that community and urban setting where they can meet other people and go out after work. What can any of us ever do to get this through the mind of those big companies? Investing in downtown and the urban community is an investment in the future of their companies. It helps their company go up nationally and globally against the rest of the world. How can you ever expect to attract prospective employees from places like Atlanta, Austin, New York, SF, Chicago, DC, Nashville, Dallas, Charlotte, LA, etc? They offer so much more for young professionals and the creative class then Memphis does. It is not because Memphis could not. It is because Memphis so often seems so short sighted. And those Fortune 500s are a part of that. For example, FedEx, IP, Hilton, and Service Master buy equipment from companies like HP, IBM, EMC, Sun, etc. Do you not think these companies would not have to also located their sales and support offices downtown if those big companies were located downtown? THose companies make sales calls and meet with customers to provide support in meetings and such. Do you not think those companies would not locate downtown to be close to their customers rather than having to drive all the way out to downtown from Southwind? Sure they would rather be closer with the ones they meet with all the time. They would locate downtown thereby further creating another group of highly skilled and well paid individuals who would pump money into the Memphis economy, allow more reasons to invest in downtown (in the form of retail, food, hotel, and entertainment) which also in turn increases the tax base of Memphis. It is exponential and synergistic. More hotels (for those from out of town meeting with those Fortune 500s) means bigger conventions. More businesses downtown means more likely people will choose to live downtown or in Memphis. This leads to more retail. Both of these further grows the tax base as property tax and sales tax revenue is increased. Bigger tax base means more revenue. More revenue allows you to further invest in schools. This creates a better educated workforce. More revenue also helps you fight crime with more police. This makes the city safer. All that causes more companies to come and more people to want to come to Memphis to get those jobs. More young people in the creative class therefore are drawn to come to Memphis. This all adds to a more diverse city with more culture. More people dowtown means more investment in public transpotation. This means light rail for the older families in the suburbs to get to their jobs. More public transport means less polution. It all works together to make Memphis a better place to live. It cuts down on urban spprawl. If 2 or 3 or those F500s located 1000-3000 of their employees downtown, how much you want to bet the Grizzlies get more ticket sales becasue people will choose to go since it is easier to get to the game since it is a stop before going home. If they get out at 5:30 and have to wait until 7pm, how much you want to bet they go have dinner and drinks in restaurants downtown? Maybe meet friends out after work at Swig, on Beale, at TJ's in the Pinch, or at Blue Monkey South Main? Same for the Redbirds in the summer or shows at the Canon Center or The Orpheum. How much you want to bet the concert series in Court Square grows to be something unlike anything anyone has imagined? How much you want to bet the South Main Trolley tour get much more visitors to the benefit of artists nad merchants in that district? If people are already working downtown, they are more likey to choose to spend time after work there before going home doing cultural things. Does this not make sense? What can anyone do to help make them (companies and the government) aware of this? They are always complaining of difficulties retaining and attracting talent. They are a part of the reason why. The only big Memphis companies with the heart and courage and vision seem to be Autozone and First Tennessee Bank. Even Suntrust is set to bail. But even with AZ and 1st TN, we still need a critial mass. FedEx, IP, and SM could help that. The Myriad headquarters move is another example of a company that should have been recruited downtown. Where are these failings? Is it the Memphis governmet? City Center Commision? Chamber of Commerce? The big companies are to blame too for their lack of vision.

Does anyone have an idea of the reasons why AutoZone was a sucess and they chose to move downtown and IP and FedEx were not? What reasons did they give? What was offered? What deficiencies did they point out? And what can be done in the future? Is there anything any of us can do? How can we get companies and the government to at the very least cosider some of the insightful thoughts from forums like those expressed in places like this in urbanplanet? How do we get these ideas dicussed and heard by those in position to do something about it?

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cdarr Whistle-Stop

cdarr

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I'd bet that in the FedEx and ServiceMaster case, the person recommending or choosing the location lives within 5 minutes of the location.

I think these choice of locations are very short-sighted. Forest Hill-Irene might be a nice place, but it's not going to get people excited about moving to Memphis. Same with FedEx' HQ and IT campus, even they're both beautiful campuses. In fact, the problem that gaushell mentioned, of FedEx attracting high-tech workers to Memphis, could be more due to their choice of high-tech campus location (Collierville) than any problems with Memphis. You're coming out of college, single, no kids, which is more likely to sell you on moving to Memphis: Downtown or Collierville?

I think FedEx's decision to move their IT Innovation group downtown to Emerge Memphis is very telling.

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tnse Whistle-Stop

tnse

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I'm sure cost of land had a ton to do with it.

I think as I've mentioned in another thread the best you can do is to highlight a groundswell of pride that locals have in their city and their downtown. Unabashed boosterism from a grassroots level from creatives. Gentle pressure on others that they too should be proud of their city and why. You can't force the companies to go downtown, but perhaps either tapping into their own pride, sparking a sense of pride where there once was none, or tapping into their business sense that responding to a burgeoning downtown community means big bucks.

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mandrws1 Hamlet

mandrws1

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I agree that land acquisition costs influence and impcat those decisions. But it is up to the government to provide the proper incentives to mitigate those costs. In addition, as I said earlier, the F500s need to look at it more than just cost to acquire land and invest in real estate and a building. They need to look at it more broadly as an iinvestment in their community and an investment in their pool of talent and workforce. Doing things today to help recruiting and retain talented people only make their companies stronger in the future. Take for instance a wonderful project site like One Beale (which I hope it still happens). What is that? Like $250 million? FedEx recently cancelled an order for Airbus A380 frieghter jets and signed on to purchase 15 Boeing 777 freighter jets. Though FedEx surely doesn't pay list price for aircraft orders, the price for those jets would be $3.48 billion at list price. Even if they got a 50% discount, you can calculate the numbers. How much is one jet worth? FedEx could easily put up some offices downtown. Not taking anything away from FedEx. Cudos to them for investing in naming the FedExForum. But the forum is just a name and what downdown needs is investment in human resources. That is what spurs development. And that it what it means to invest in your community to your own benefit. How can they or any other company in town complain about not being able to retain and attract a talented, creative, and vibrant workforce if they do nothing to help build a place that would go a long way to helping them do just that?
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mandrws1 Hamlet

mandrws1

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Hopefully they'll build downtown or at least stay where they are. I can see new investors willing to spend $120 million on a bland new suburban office park when they have perfectly good digs now that can be expanded for only $10 million. If I were going to spend $120 million, it would be on a tower that would build on the prestige of the company. They are in talks to buy the Concord EFS building that Harrah's already purchased?? :dontknow: Am I missing something?

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