The ‘Fortune 500’ profiles the top global companies around the world – not only are the companies always very high in revenue but they also employ lots of people. Last year the world’s 500 largest companies generated $30 trillion in revenues, and employed 67.7 million people worldwide, being represented by 33 countries.
However, whilst the largest corporations change a great deal year on year, the cities in which their headquarters can be found change less so.
In total, Fortune 500 companies represent two-thirds of the US GDP with $12.8 trillion in revenues. But where do the likes of these successful Fortune 500 companies HQ their businesses?
RS Components have analysed the Fortune 500 list and pulled out the top 20 US states that are home to the highest number of headquarters and that are making the most revenue.
Coming in first place is, of course, the big apple; New York City. New York is home to 58 headquarters and has yearly revenue of $1.4 billion. Goldman Sachs, American Express and CBS are all based in New York and have a collective revenue of nearly $1 billion ($92,547 million). That’s roughly 1,600 (1,637) times the average US national income. New York is not only a business hub, but it is a global hub and is home to some of the financial centres of the world.
Closely following New York is Texas, with 50 headquarters based there – Texas businesses also pull in $1.4 billion worth of revenue. Big businesses such as Kimberly-Clark, Dr Pepper and Vistra Energy – there are lots of companies that sit within the energy sector, too.
California comes in third place with 49 headquarters in the state – although it ranks third place, the yearly revenue is more than both New York and Texas, with $1.5 billion in revenue. Combined, these top three states house nearly one third of America’s top companies.
Businesses often set up in cities that are easily commutable and have great surroundings such as living space and green space – this is because employees need to be able to get to and from work efficiently. There is much more to a state or city for qualifying as a business hub than the business itself, for example, development in the area with lots of investment going into the cities, as well as networking facilities for professionals to meet up and discuss industry ongoings. If a city or state has the possibility to put businesses in contact with other valuable businesses, then it is working toward the future and appearing as a ‘hub’.
With every success, there will be a downfall. Business hubs can often be very busy, hectic and noisy which make difficult for phone calls and getting to meetings on time. Office space can often be limited too if cities haven’t planned for growth – however, we often find businesses setting up HQ’s on the outskirts of cities to help manage this growth.
One thing that business hubs work well for is start-ups. This is because they can easily hire offices, get online and get to their office on public transport. The difficulty comes when scaling-up and finding new bigger offices to facilitate business growth.
US states have many business headquarters – below are the top 10 states that host the most headquarters in:
New York – 58 headquarters, $1.4 billion yearly revenue
Texas – 50 headquarters, $1.4 billion yearly revenue
California – 49 headquarters, $1.5 billion yearly revenue
Illinois – 37 headquarters, $867.7 million yearly revenue
Ohio – 25 headquarters, $644.5 million yearly revenue
New Jersey – 22 headquarters, $404.5 million yearly revenue
Virginia – 21 headquarters, $353.1 million yearly revenue
Pennsylvania – 20 headquarters, $461.6 million yearly revenue
Minnesota – 19 headquarters, $542.6 million yearly revenue
Florida – 18 headquarters, $277.2 million yearly revenue
FIVE REASONS WHY YOUR BUSINESS’ PROCUREMENT TEAM SHOULD BE USING A CONTRACT MANAGEMENT SYSTEM
By Daniel Ball, business development director at Wax Digital
Even in today’s digital-first environment some businesses are still storing documents, such as contracts, in filing cabinets making it labour intensive to retrieve, manage and even identify important paperwork. In fact, it is calculated that poor contract management practices are costing companies an average of nine percent of their annual revenues.
Moving to a contract management system online can speed up the retrieval process and help decrease the amount of time and resources required to manage contracts. Using a CMS companies can create an online database to centralise information and store documents. Not only does this help ensure contracts are well managed and kept up-to-date, but it can also help businesses save up to 20 percent of overall costs per year.
From legal departments overseeing regulation compliance to finance teams ensuring payment deadlines are met, contract management technology benefits many areas of an organisation. So, how can a good CMS help your procurement team?
How will a good CMS help your procurement team?
The number of suppliers your procurement team must oversee varies depending on the size of your business. It’s not uncommon for large enterprises to be working with thousands of suppliers at one time. A CMS will use automation to record, manage and streamline data, providing procurement teams with important contract details including time and location information, as well as real time alerts such as contract breaches.
Here are five reasons why your business should be using an online contract management platform:
- Increased spend visibility
Using a CMS can give procurement professionals full visibility of suppliers, including the company name and location of where a product is coming from and in what quantity. This transparency will also help contribute to the risk management strategy of your business as it enables you to spot vendors who may be prone to environmental, economic and political uncertainty. In the current environment, for example, suppliers’ may have decreased or ceased production due to COVID-19 or could have been heavily impacted by the negative price of oil, making visibility increasingly important for businesses.
- Eliminates maverick spend
Centralising and streamlining contract documents will ensure that buyers can instantly access up-to-date information to see if a contract already exists. This helps buyers avoid simple and common mistakes that often occur when using manual filing systems, such as onboarding new vendors when existing agreements are in place with another supplier.
- Keeps track of contract renewals
It’s easy to forget about contract renewals or sign up for another term without ending an existing agreement, especially when using a traditional filing system. Businesses using an online CMS can set up renewal alerts in advance, allowing buyers sufficient time to source new vendors or negotiate better prices.
- Improves spend management
A centralised database means that all negotiated prices, contract conditions and other important transactions can be accessed in one place, making it easier to analyse spend. A CMS can help identify discrepancies, find where contract violations have occurred and deal with any associated problems.
- Adhering to regulatory and legislative compliance
It’s important to ensure that all suppliers are meeting the terms of their contracts. A CMS will automatically audit supplier information, meaning that any failures are immediately raised to procurement teams. The platform will also provide notifications if any new data is required or updates need to be made, avoiding potential legal issues.
It’s clear that using an online CMS will benefit your business and procurement teams by increasing spend visibility, enabling access to up to date information, ensuring contracts are closely monitored while contributing to the reduction of unnecessary spend. So, now’s the time to stop relying on those dusty old filing cabinets and start using a CMS.
PROTECTING YOURSELF AGAINST A RECESSION
James Turner, Director at Turner Little
The coronavirus outbreak has spread to businesses, leaving many around the world counting costs. Notoriously, known as the Great Lockdown, it’s been affecting the world economy since early this year. The predicted recession is considered to be the steepest economic downturn since the Great Depression.
So, what does that mean for you? James Turner, Director at company formation specialists, Turner Little, suggests “While there’s no fool proof way to ‘recession-proof’ your finances, establishing a solid base now will put you in a better position to weather the storm.”
“Whilst the future of the global economic landscape is simply too complex to predict, it’s not hard to spot imbalances that have built up, as central banks and governments around the world talk about introducing further fiscal stimulus and monetary expansion, the consequences could be significant,” adds James.
A good wealth management agent will recommend starting by saving a substantial cash emergency fund in a high-yield savings account, understanding your spending habits and where you could cut back if you needed to, and establishing your long-term investing strategy now, so you can stick to it.
If you were to solely invest based on the inevitability of a recession, you are likely to miss returns that are immediately available. If you truly want to recession-proof your assets, the best thing to do is develop a long-term strategy and invest wisely.
Diversification still matters
It’s dangerous to pile all your investments into a single sector, including consumer staples. Diversification is especially important during a recession when particular companies and industries can get hammered. Creating a diversified portfolio of assets blended across asset classes—such as fixed income and commodities, in addition to equities, sectors, geographies and strategies—can also act as a check on portfolio losses.
Build a reserve
To keep your money protected before, during and after a recession, it’s recommended to have an income generation conversation with a financial advisor. This will cover a lot of different topics, but one of the most important is the emergency fund. You’ve likely heard many times that it’s good to have between three and six months’ worth of living expenses set aside in the event of a job loss, health crisis, or other unforeseen circumstance.
Protect your assets
If you’re interested in talking about protecting your assets and your investment portfolio, do get in touch. We specialise in creating bespoke solutions for individuals and businesses of all sizes. The knowledge and expertise of our specialists will be able to assist with any enquires, no matter how complex.
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