“Large companies are turning to many-geographies to get the same job done,” Scott proposed. “There is still a core site strategy in many of these companies, but they’re so much more centralized around big cities, big development centers such as Silicon Valley, Frankfurt . . . [and many more].”
Our observations have become major concerns for the hiring technology sector. Salesforce.com, for example, face major challenges in recruiting talent to work in the costly Bay Area (northern California).
Laura Weber reported a year ago , “Facing a tight labor market and a shortage of skilled workers, many large companies say that a city or region’s population of desirable workers is now the top factor in location decisions.”
In a tip of the hat to the clichéd “People are our strength,” Scott adds that location decisions are not just tied to top-notch talent, but also getting closer to an important customer base. After working for three different telecom companies, including Cerent-Cisco, Scott notes, “They’re all driving towards these big city hubs with a big customer base.”
Laura penned, “Fifty years ago, companies opened new locations to be near lumber, copper, or resources needed for their businesses.” Her research led her to Meredith Amdur, an analytics expert at advisory firm CEB, who said, “Today, people are the natural resources.”
Indeed, in the twenty-first century, a world perspective is needed for finding top-notch talent for one’s firm.
What About Sonoma County’s Telecom Valley?
On the resurrection of Telecom Valley, centered in the relatively small population center of Petaluma, California, Scott is pessimistic, “I don’t see it, Rob. I’ve been through three site consolidation efforts with three different companies [during the past decade] and they’re all driving towards these big city hubs with a big customer base.”
 Companies Flock to Cities With Top Talent, Lauren Weber, The Wall Street Journal. April 12, 2016.