Welcome to Mobility Minute, a newsletter published every Friday byWorldwide ERC®for the benefit of members and the global mobility and relocation industry. Here’s a quick glimpse of what you’ll find in this week’s issue:
Companies Look to Downsize Office Space as Remote Work Continues
Is U.S. Manufacturing a New Trend?
Celebrating Progress on the Public Policies Supporting Mobility
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Companies Look to Downsize Office Space as Remote Work Continues
The average office usage is approximately 50% of pre-pandemic levels, which may become the new standard, and some landlords may not be able to maintain their properties long enough to witness a significant increase in occupancy. While owners are considering converting offices to housing, this won’t have a significant impact on office supply in the short term due to zoning regulations, high costs, and engineering complexities. Additionally, big companies with traditional large office space portfolios are also struggling with the downturn.
Why is this important?
Office occupancy rates in the U.S. have increased, surpassing 50% for the first time since the pandemic began, with all 10 of the major cities Kastle tracks surpassing 40% for the first time. While some organizations may be reconsidering their office space plans due to low occupancy rates, businesses enthusiastic about returning to the office full-time may have an opportunity to secure office leases at lower rates than usual.
While international manufacturing has started to rebound, supply chain bottlenecks created in 2020 are still posing a problem, exacerbated by Russia’s invasion of Ukraine in 2022. U.S. companies are now considering reshoring manufacturing back to the U.S. as a way to better ensure supply chain resilience. President Biden’s newly announced CHIPS Act aims to revitalize the U.S. as the site for crucially needed semiconductor manufacturing and design, with $39 billion allocated for building new plants and $13 billion for research and development.
Why is this important?
The solar industry’s focus on reshoring is beginning to show success, with initial investments being made and more announcements of large-scale U.S. manufacturing expected in the next few years. This could have a multiplier effect on other industries, such as steel. However, companies considering reshoring need to invest in automation, digitization, employee upskilling, and sustainability to make their supply chain resilient, according to McKinsey’s reshoring report. It’s important to have a well-thought-out, long-term plan aligned with stakeholders to avoid losing out or worsening existing problems.
Celebrating Progress on the Public Policies Supporting Mobility
Despite a divided federal government, progress is being made on Worldwide ERC®’s public policy priorities in the past few months. For example, the U.S. Senate has passed the Moving Americans Privacy Protection Act, and the SECURE Notarization Act, which establishes minimum standards for the use of electronic and remote notarization and requires their recognition across state lines, was recently passed by the House and faces an uncertain future in the Senate. In this article, Lynn Shotwell explains the ways that Worldwide ERC is amplifying the voices of our members.
Women’s History Month Celebration— Join the Corporate Housing Providers Association and Worldwide ERC for a virtual Women’s History Month event on 30 March. With a dynamic keynote and two interactive, breakout sessions, learn while connecting with other industry professionals in this three-hour online event. Learn more and register.
Webinar: Supporting your Expatriate Population Through an Unpredictable Immigration Environment— How can you provide the support required to help your employees navigate the rocky immigration landscape? In this presentation on 19 April, global mobility experts will share tips and strategies to help you lead with empathy and provide support for the unique needs of your expatriate employees. Learn more and register.
Foundation for Workforce Mobility Regional Group Scholarship Partnership Program — Applications are due to the Foundation on 30 April. View full scholarship program details.
Corporate Relocation Council of Chicago (CRC) CRP Exam Review Class— On 9 May, from 8:30 a.m. to 5 p.m. CT in Chicago, learn from and study with mobility experts. Learn more and register.
Mobility Day— Join us for the first Mobility Day event to be held across the United States on 10 May. Worldwide ERC is excited to work with four regional groups to bring you the best content from local to regional to global. We are excited to partner with the Greater Washington Employee Relocation Council (GWERC), North Texas Relocation Professionals (NTRP), Puget Sound Relocation Council (PSRC), and Corporate Relocation Council of Chicago (CRC) to bring this event to life. Learn more and register.
Global Economic Snapshot
The country’s population increased from 38,516,138 to 39,566,248 people, Statistics Canada said. The increase was in part fuelled by government efforts to recruit migrants to the country to ease labor shortages. — BBC
After a lag, the work-from-home revolution is finally starting to show up in the data for office building rental rates. Major markets like San Francisco and Manhattan—where long commute times seem to be driving the durability of the work-from-home lifestyle—have been hit the hardest. — Axios
Argentina and Brazil recently announced preliminary plans to form a common currency known as the sur, meaning south, to be used in bilateral trade-related transactions in Latin America. — World Economic Forum
Declining energy prices go some way toward explaining this year’s unexpectedly strong economic data in the U.S. and Europe, economists say. Supply-chain managers on both sides of the Atlantic are more optimistic than they have been in many months, according to business surveys by S&P Global, a closely watched indicator of future growth. — The Wall Street Journal
In 2022, New York continued to be the priciest place to go on a business trip around the globe. This is due to the increase in business travel and tourism after the pandemic, which caused costs to rise by 8% compared to the previous year. The U.S. dominated the ranking overall, with Washington, D.C., and San Francisco both making the top five on the leaderboard, while Switzerland chimed in with Geneva and Zurich.
Hong Kong was found to be the costliest business travel destination in Asia, with an average daily expense of $520. This was only slightly more expensive than Singapore, which is also a financial center. In the top 10 expensive cities, London and Paris kept their positions, while Luanda in Angola remained the most expensive place in Africa.
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