According to U.S. News and World Report, of the top 25 places people moved to in the U.S. in 2018, 20 were in the South. Of those 20, nine are located in Florida. “It’s still a retirement mecca, but now we’re seeing a lot of different ages,” says Patrick Black, president/CEO of Perfect Imprints (asi/293567) in Fort Walton Beach, on the Panhandle. “There are lots of restaurants and new businesses like laser tag and rope climbing.”

A similar transformation is occurring throughout the South – an influx of high-profile corporations, a boom in travel and tourism and heightened attention paid to cities long ignored.

Miami boasts the second-best nightlife scene in the U.S. (according to U.S. News and World Report), and is a part of the South’s growing tourism appeal.

With five of the top 10 fastest-growing states by number of residents, the South and its cities are attracting a revived workforce, in large part because of lower startup costs. In fact, according to the Business Journals media group, many major companies have either moved entirely out of the West (specifically California’s Bay Area) to the South, or have opened secondary headquarters there. Companies like Jamba Juice and McKesson have moved to Dallas, while Lyft has opened an HQ2 in Nashville, and Pandora has done the same in Atlanta. Those who move there to take the jobs enjoy a lower cost of living, compared to other regions.

Memphis is also seeing an influx of companies. FedEx’s world hub is there, and has been working with the Greater Memphis Chamber to attract business with incentives. The city is also benefiting from living and hiring costs that have increased in Nashville, says Nicole McNamee, the Memphis-based managing director of global accounts for Top 40 distributor Boundless (asi/143717). “Agriculture companies are also moving in,” says McNamee. Indigo Ag, a $1 billion agriculture tech startup with headquarters in Boston, set up shop in December.

Sarah Whitaker, director of business development at Williams Advertising (asi/360402) in Hopkinsville, KY, says people appreciate the combination of open space, lower cost of living and proximity to growing cities. “We’re seeing a lot of startups, retail locations and hotels cropping up,” she says.

Meanwhile, the job market is getting increasingly competitive. Kimble Bosworth, president and COO of Proforma Printelligence (asi/300094) in Nashville, says her clients are under pressure to provide a work environment that attracts and keeps employees, because “workers can easily find another job,” she says.

To foster a desirable workplace atmosphere, management gives gifts to acknowledge not only new hires and top performers, but also life events. Bosworth has put together gift sets for weddings, new babies, higher education degrees and more. “They’re engaging in their employees’ lives,” says Bosworth. “They’re part of their personal stories.”

Click here for a larger image of the map above. 

It’s also an employee’s market in Atlanta. According to CapRelo, a relocation services site, the construction industry had 15,000 job openings there last year. Jordy Gamson, CEO of The Ice Box (asi/229395), estimates that 90% of Atlantans are transplants, and there’s been a rash of construction and infrastructure changes there, creating steady demand for uniforms, safety items and promo products. “Relo and professional service companies are growing because people are moving here for work,” says Gamson.

Another booming market is travel and tourism. According to the Federal Aviation Administration (FAA), Dallas Love Field, Austin-Bergstrom International and Louis Armstrong New Orleans International were the top three fastest-growing airports in the country from 2007 to 2017.

Black says Fort Walton Beach, FL, used to be a well-kept secret; now tourists flock to it for its sugar-white sands and emerald waters. “We’re seeing more condos, resorts, hotels and traffic,” he says.

The South is also gaining a reputation for interactive museums, good music, tasty food and unique craft brews and spirits; many of the latter are relocating from saturated locales like California, says Bosworth. “Arkansas, for example, is attracting more tourists because museums are cropping up and they have good farm-to-table restaurants,” says Bosworth. “People want unexpected local experiences.”

Whitaker sits on the staff of her town’s Visitors’ Bureau, so she’s witnessed the growth firsthand. Tourism’s annual economic impact is over $15 billion for the state, according to the Kentucky Travel Industry Association. “Tourism here is the best it’s ever been,” she says. “People come for the horses, bourbon and basketball. They travel here to help on working farms, for a hands-on experience.”

Hot List

Hot Category: Tech Accessories

Tech continues to be a hot category in the South. “Charger technology has improved,” says Kimble Bosworth of Proforma Printelligence in Nashville. “They’re great for tiered giveaways at trade shows.” Nicole McNamee of Boundless has seen demand for smart products, like the Moleskine Smart Writing Set that turns written notes into digital files. “Tech is still solid,” she says.

Hot Products: Brand Names

Clients want brand-name items despite the higher cost, says Patrick Black of Perfect Imprints in Fort Walton Beach, FL. “Clients will spend more even though we have ‘inspired’ items,” he says. “They ask for Columbia, Nike and Under Armour.” McNamee says clients like the Marmot backpacks offered by Prime Line (asi/79530).

Hot Market: Employee Attraction and Retention

Businesses are moving to the South for lower startup costs, but face a competitive job market. “It’s difficult to hire and retain,” says Bosworth. “They’re stretched thin.” She’s been asked for unique welcome, recognition and milestone gifts. “They want more than just a pat on the back,” says Jordy Gamson of The Ice Box in Atlanta. “Companies are doing appreciation and new hire kits with earbuds, T-shirts and messaging that speaks to their values, brand and mission.”

Hot Trend: Online Stores

For busy companies, managing online merch and company stores is challenging. “They often have a ridiculous amount of inventory and messy fulfillment,” Bosworth says. “We streamline it.” Sarah Whitaker, director of business development at Williams Advertising (asi/360402) in Hopkinsville, KY, says so many clients have come to them for help with managing company stores that they launched a service in late 2018. “We make it easy for them,” she says.

Sara Lavenduski is the senior editor for Advantages. Tweet: @SaraLav_ASI. Contact: slavenduski@asicentral.com