TTX, which provides freight cars for major railroads, is moving its headquarters from Chicago to Charlotte, North Carolina, where it has promised to create 150 jobs.
The headquarters loss for Chicago follows similar moves by companies that include Caterpillar, Citadel and Tyson Foods. Boeing also took its headquarters out of town, although it said later that most of its Chicago staff stayed put.
Meanwhile, Chicago has picked up major investments from corporations such as Kellogg, Deere & Co. and Kimberly-Clark, while Allstate and Abbott Laboratories have moved jobs into the city from the suburbs.
Any corporate exit from Chicago causes speculation about crime and taxes, especially after Citadel boss Ken Griffin decamped for Miami, where his hedge fund plans an office tower. Griffin had been critical of lawlessness and tax policies in the Chicago area.
Asked about TTX’s motives for the move, Chief Human Resources Officer Brian Powers declined to criticize Chicago.
“We’ve been in Chicago for over 50 years. Taking all factors in consideration, North Carolina and Charlotte have a more business-friendly environment,” he said.
In announcing the deal this week, North Carolina Gov. Roy Cooper’s office said TTX will invest $14.5 million and set up operations in functions that include finance, information technology and business and product development. The state has agreed to pay the company up to $1.8 million in tax subsidies over the next 12 years.
TTX has been based at 101 N. Wacker Drive, occupying about 100,000 square feet. In 2020, it offered the entire space for sublease just as the pandemic was keeping most office workers at home.
Powers said TTX had about 280 headquarters employees with many working remotely. A large number will stay in Chicago, and TTX hopes to have 150 working in Charlotte within a couple of years.
He estimated TTX has 500 employees in the Chicago area, most of whom will remain because they are assigned to rail yards.
Powers said the company expects to take possession of its new location in June 2024. He said TTX “did not engage” with Illinois government officials about incentives for staying.
The Illinois Department of Commerce and Economic Opportunity had no immediate comment.
“We believe Charlotte presents a unique opportunity for TTX that provides for strategic partnerships to strengthen our business,” President and CEO Thomas Wells said in a news release. He said the company will “look forward to welcoming new local talent to join our existing workforce to continue to drive our long-term success.”
The North Carolina tax subsidy is a grant based on projected growth in tax revenue from the new jobs. Cooper’s office said the average annual salary for the positions to be created will be $162,000, twice the average rate for the Charlotte region.
North Carolina’s Commerce Department said the grants are “awarded only in competitive recruitment or retention situations.”
TTX was founded in 1955 and operates as a co-op for the nation’s leading railroads. It manages 170,000 railcars.
