Posted on 07/02/2012 3:38:41 PM PDT by Lorianne
New York’s biggest investment houses are shifting jobs out of the area and expanding in cheaper locales in the United States, threatening the vast middle tier of positions that form the backbone of employment on Wall Street.
The shift comes even as banks consider deeper staff cuts here, which could undermine the state and city tax base long term.
“Places like New York or London will remain financial centers, but most of the players are taking a much harder look and asking whether they can move large numbers of jobs,” said James Malick, a partner at the Boston Consulting Group who advises banks on relocation. In addition to higher taxes in the New York region, employers face real estate and labor costs significantly above the national average
(Excerpt) Read more at nytimes.com ...
The taxes in India are a lot lower....
Goodbye NYC. New York is about to go the way of California.
I don't really know why most retain a presence there anyway.
There couldn't be a "neighborhood" less amenable to pushing a stroller with a baby in it but they do anyway.
The infrastructure and caliber of the workforce are peerless.
Dallas/Fort Worth is full of smart, educated hard workers, many of who are bilingual or multilingual who, while not cheap, would be a lot cheaper than many East Coast workers. Also, corporate taxes are lower, there’s good infrastructure, the business environment is much better and there are no state income taxes.
however, as this (and every other) industry shifts towards black-boxing its intellectual capital, it must be tempting to pay monkeys to press the buttons with bananas. Can’t imagine it being a sound long-term strategy, however.
Both are available anywhere that has a flat spot and a smart phone.
This was inevitable and makes perfect sense. I was born and raised in NYC and now live just outside it. I never go there anymore, it has lost its soul.
But most importantly, there is no reason anymore for people to travel into the City to work. The fact that so many people still do amazes me.
There was a time when labor needed to be concentrated in one place. Today you and your co-worker can be thousands of miles apart and it make no difference. I personally make a good living receiving and delivering work over the internet to people I have never met in person, and I have been doing it for over 10 years. I have good relationships with my clients, I just have no idea what they look like.
So why, then, are people willing to sit in ridiculous traffic, pay $12 to cross a bridge, to go into a concrete jungle where you are not even allow to stop your car, and parking it will cost a minimum of $45 (usually more)?? Because it’s a cool place to be??? Hardly. There is nothing cool about NYC anymore.
In short, the New York City is too expensive, too demanding, and there is no just no longer any reason to pay workers to support the cost of being there.
really? i think you mean you can execute a trade via the internet.
buying the product isn't quite the same thing as manufacturing it.
The attachment to face-to-face business models is rapidly disappearing and taxes and regulations increase.
If this divorce from 19th and 20th century business models wasn't cost and product effective how come eBay, Amazon, Peal and other such businesses are not only surviving but actually growing.
/SS/ Thank you Al Gore for inventing the Internet! /SS/
you can't duplicate that just anywhere, and you can't do it overnight. not even with the internet.
You've narrowed it down. The reality is that it can be duplicated and it won't happen overnight, but it's already happening. Once you get good restaurants in Florida why live in NYC?
The functions that require face-to-face contact stay, along with their direct support staff. As for why people want to meet in a place with a lousy climate, aging infrastructure, corruption and high costs, I think the answer is force of habit. At least London retains its status because of a cultural tradition in the City. Manhattan, however, is just an accident of history and location on century-old immigration routes. If you are a state pension fund CIO, where would you prefer to meet the banker who is pitching an investment? ... Manhattan, your office in Austin, say, or Miami, Newport Beach, etc.? There is no reason to meet in Manhattan other than habit and intransigence. They still rib Bill Gross for his 'beach' location as if he is a dilettante. Give it time.
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