PSCI is an IT staffing firm that has been in business and that has been based out of Delaware since its inception in 1993. Staying in business for that long is no easy feat but we’ve been blessed with great leadership, an amazing staff (from internal members to consultants in the field), and an excellent client base. Though what’s really kept us afloat is opportunity.
While we’ve always known the First State as a great place for employment, recent research has backed that up! According to US News & World Report, Delaware ranks 7th in terms of states with the most opportunity. When measuring economic opportunity, equality and affordability, Delaware has a lot to offer job candidates and their families.
In this blog post, we’ll take a look at why Delaware is both a great place to incorporate a business and build a career.
Corporate Law & Taxes
Beyond being the first state to ratify the Constitution, Delaware is perhaps best known for being a “corporate haven,” largely because of its business-friendly corporation law. Since the early 20th century the Delaware General Corporation Law has been the most important jurisdiction in US corporate law. Designed as a way to attract more businesses to the state, the law has wildly outperformed expectations. Today, over 50% of all publicly traded corporations in the US and more than 60% of Fortune 500 companies are incorporated in Delaware. More information on what the law offers and why it’s so alluring to companies can be found on the state’s website.
Corporations aren’t the only benefactor of state laws, however. Beyond its official nickname, “The First State,” Delaware is also commonly referred to as the “Home of Tax Free Shopping.” That’s right, you’ll never need to account for sales tax when shopping in Delaware. The price listed on the sticker is what you pay. Delaware is one of only five states in the country to offer such an amenity. The others being Alaska, Oregon, Montana, and New Hampshire.
Economically speaking, Delaware boasts the 10th strongest economy in the US according to that same US News & World Report ranking. To generate that ranking, their evaluation assessed three factors: growth, employment, and business environment. With a median household income near $62,000 (2016 figures), Delaware ranks slightly higher than the US average, while also boasting lower than average poverty rates.
When looking at industry, the Delaware economy relies heavily on chemical manufacturing which includes pharmaceuticals plus industrial chemicals and plastics (see: DuPont). However, the state’s largest economic driver is finance and insurance. Next time you receive a credit card offering through the mail, take a look at the return address. There’s a good bet it originated from Delaware. That’s because Delaware is home to the credit card businesses of Chase, Discover, and Barclaycard U.S., as well as certain credit card operations for Bank of America and Citi.
So what does a strong economy mean for business owners and job seekers alike? Opportunity for both.
Geographically speaking, and as realtors would say, Delaware is prime real estate. Located along the Eastern Seaboard, Delaware is in close proximity to some of the largest and most influential cities in the world. The closest being Philadelphia (only 25 miles to the state line). Beyond that, however, is Washington, D.C. which is a mere two hour drive to the south and New York City, two hours to the north. Why is all of this important? Because it’s location lends itself to a large candidate pool. A business operating out of Delaware is able to attract and call on candidates from three of the nation’s largest cities as well as from three surrounding states (Maryland, Pennsylvania, and New Jersey).
Equality & Affordability
In the US, aka the land of opportunity, Delaware has positioned itself well. Despite low foreign population numbers (only about 9%), Delaware is more diverse than most. It also ranks in the top 10 of all states in terms of equality. To generate their ranking, US News and World Report looked at six factors: employment gap by gender, income gap by gender, disability employment gap, education gap by race, employment gap by race, and income gap by race. In all but one (disability employment gap) Delaware ranked in the Top 20. What this proves is that Delaware offers a diverse candidate base; and since diverse work teams generate more revenue, business leaders and entrepreneurs should be seeking out locations that promote it.
When it comes to affordability, Delaware is average, ranking 28th out of 50. However, that ranking can be attributed to where it’s located. All New England and Mid-Atlantic states, besides Pennsylvania, fall in the bottom half of states for affordability. It’s the law of supply and demand. When demand is high, supply tends to be low, resulting in higher prices (in this case, the cost of living and affordable housing). The trade-off, however, means that the population base is educated (Delaware actually ranks first in 4-year college graduation rates) so the candidate pool, for the most part, tends to be well qualified.
All in all, however, the opportunity that Delaware offers far outweighs the cost of living or the cost of operating a business here. So whether you’re looking for a place to incorporate a business or looking for a location to build a career, you can’t do much better than the great state of Delaware.