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Headquarters of $3B Company Finds Its Niche in Texas

Headquarters of $3B Company Finds Its Niche in Texas

January 11, 2019

There are many in North Texas who are excited!  This part of the Lone Star State is preparing to embrace the relocation of a $3B company, DJO, a global medical technologies giant.  This mammoth company provides products used by medical professionals such as orthopedic surgeons, athletic trainers, pain-management specialists and others.  The company states that $1.2B in sales was recorded during a 12-month period ending in September 2018, with the figure reflecting the company's 18 global locations.Hundreds of new job positions will be opened in the Dallas area; and a new distribution center for DJO opened its doors in Ft. Worth a few months, ago, with over 200 employees.

Good-Bye, Golden State

San Diego-based DJO will keep its 'Bracing and Supports and Consumer' units in Southern California but the company is packing its bags to relocate its corporate headquarters to the city of Lewisville, Texas about 25 miles from Dallas.

DJO is one many companies who have chosen to leave the Golden State which has lost a lot of its luster for companies, both large and small.  DJO is the latest in a string of California-to-Texas defections; and one shouldn't be too surprised.  California is one of the most expensive states, in which, to conduct business – this, according to Joseph Vranich, President of Spectrum Locations Solutions.  Vranich states that businesses have become weary with strict adherence to California's burdensome compliance regulations.  He goes on to say:  “Texas is an easier place to conduct business due to being a much friendlier regulatory environment.”

During the first few months of 2019, a lot of activity will be taking place as DJO settles into its new surroundings which will be located at 2900 Lake Vista Drive.  Brady Shirley, DJO's President and Chief Executive Officer, tells us:  “We made the strategic decision to move our headquarters to the Dallas area to expand our presence into a market with a strong and larger pool of talent, gain greater and more-efficient customer access, and take advantage of what we believe is a better corporate environment for our company as we continue to grow”. 

A Fortune 500 health-care giant – McKesson Corp. – announced plans, just recently, to move from San Francisco to Irving, Texas in April of 2019.  McKesson is the nation's largest pharmaceutical distributor. Prior to McKesson Corp., Core Mark Holding Co. Inc. revealed its plans to move its headquarters from San Francisco to upscale Westlake, located in the northwest area of Dallas-Fort Worth.  It is here where the company was attracted to the central location, favorable operating costs and lower taxes.  Core Mark, which supplies food and tobacco products to a variety of retailers, is another Fortune 500 company.  According to Jordana Kammerud, Core Mark's Chief Human Resources Officer, half of the employees in the new Texas location will be newly-hired North Texans; and hiring will continue through June of 2019.

The Dallas Business Journal states that every week brings news of yet another Bay Area company that is planning to move its headquarters out of the region – essentially saying, enough is enough.  Also, with 75 companies from around the country that have moved their headquarters to Dallas-Fort Worth in the last seven years, it can't be argued that North Texas has a lot to offer businesses of all kinds! 

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