Fortune 500's 2021 list is officially out, and the Austin metro saw two companies crack the list this year, with two others making the top 1,000.
While the Texas capital doesn't boast as many Fortune 500 headquarters as some other cities, its reputation as a tech hub and a Californian's paradise is still well-represented.
Oracle, which uprooted its headquarters from California to Austin last year, made the top 100 in the 80th slot this year, while Round Rock's own Dell was No. 28. Companies with large ties, including Tesla, Amazon, Apple, Facebook, and Google all cracked the top 100. And despite a tumultuous economic year, each of the Fortune 1,000 companies HQ'ed in Austin saw growth in 2020.
Here's a look at Austin companies that made the Fortune list:
28. Dell Technologies
Dell thrived during the pandemic by helping employees across the country adjust to remote work (Dell/Facebook)
Dell, which has been rooted in Austin since Michael Dell started the company as a University of Texas-Austin student in 1984, made the top 30. The computer manufacturer moved up six slots this year, is listed on the Global 500, and is one of the 100 most profitable corporations in the Fortune 500.
Dell is the second-largest non-oil company in Texas and the sixth biggest company in the state by revenue. As a global power, it is the largest shipper of PC computers in the world.
To cope with the pandemic, Dell decided to double down on work rather than hit the pause button. Dell gained 8,000 more employees in 2020 and employed a record of 165,000 worldwide as it shifted to push 90% of its employees into remote work. The company's emphasis on digitization and mobile technology for consumers during the pandemic paid off—the company had record revenue in 2020.
Dell, with multiple local offices, currently employs around 13,000 people in Central Texas and plans on keeping most of its employees in a remote or hybrid work format.
Oracle's Austin campus, which is now the company's headquarters, opened in 2018. (Oracle/Facebook)
Oracle, a global corporation that sells database, software and cloud technologies, was one of the major tech companies to announce its relocation of its headquarter to Austin from Southern California in 2020, after establishing a half a million-square-foot facility on East Riverside in 2018.
The corporation rose up two spots to No. 80 on the Fortune 500 in 2021 and is one of the 100 most profitable on the list. Oracle also cracks the Global 500 and is one of 71 Fortune 500 companies to have a female CEO, Safra A. Katz.
During the pandemic, Oracle faced big changes. Aside from moving its headquarters across states, the company began using artificial intelligence, augmented reality and voice commands (instead of "Hey, Siri", think "Hey, Oracle") to help companies move into the cloud.
According to Shailesh Singla, Country Head & Senior Director, Employee Experience/HCM Business at Oracle, the pandemic actually sped up digital technology, especially using AI as a human resources function, by many years.
Tesla's newest plant, Giga Texas, is set to be completed by the end of 2021. (Tesla Owners of Austin/Twitter)
While electric car giant Tesla hasn't moved its headquarters to Austin (although teased last year), its CEO Elon Musk, has already made the move. The man who called Austin a "boomtown" has plans to manufacture the company's Cybertruck and Model Y products out of the Giga Texas plant, set to be completed later this year in southeast Travis County.
The electric vehicle company just reaches the top 100 in the Fortune 500 list, rising 24 slots in the rankings. The company has seen job growth as Tesla works to employ nearly 10,000 Austin-area residents at the new Texas plant.
Musk famously had run-ins with COVID policies in California, where he was originally located, spurring him to join the California migration in the summer of 2020. Tesla famously struggled in its first decade of existence, but the EV entity grew more than a cult following during the pandemic. In April, the company reported its third consecutive profitable quarter for the first time, and Musk's net worth swelled to $155 billion.
Musk's former company PayPal also cracked the list at 134 on the Fortune 500. Musk used the funds from when the company went public to create the companies for which he is now famous, including Tesla, SpaceX and Neuralink.
523. Resideo Technologies- Fortune 1,000
Resideo Technologies streamlines home security and climate control worldwide. (Resideo Pro/Facebook)
While not quite cracking the Fortune 500 list, Resideo Technologies nearly made the list as a rising star in smart home technologies. The company is the No. 1 global distributor of home security products and employs over 14,000 worldwide. Resideo combines home necessities, including air conditioning, security systems, and water and energy conservation tools to give consumers a holistic product.
The company saw job growth in 2020 despite the pandemic as more consumers spent time at home. Over 15 million systems were installed last year, accounting for $5.1 billion in sales. Resideo bottomed out at the start of the pandemic but saw revenues rise by 10% from January to November 2020, surprising Wall Street investors.
627. Digital Realty Trust- Fortune 1,000
Digital Realty Trust owns two data centers in Austin and has influence worldwide as a real estate investment corporation. (datacenterdynamics.com)
Digital Realty Trust is another global giant that made its way to Austin during the pandemic. The real estate investment entity, which provides data center services worldwide, moved its headquarters to the Texas capital in January 2021 and has since seen revenue grow 32.4% to $1.1 billion just this year.
Only 5% of the company's investments in retail, energy, travel and lodging were at serious risk due to COVID. Although it only employs about a dozen at its Austin headquarters, it has a major footprint in Texas and owns 30 data centers in the state.
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Whether you’re making the switch out of a gas-powered car or thinking of adding another EV into the mix, tax credits could go away for your desired car.
The climate-health-tax package could become law soon. And while Democrats had aimed to expand consumer tax credits for battery-powered vehicles Sen. Joe Manchin called for some supply chain requirements in order to go along with the broader bill.
The Alliance for Automotive Innovation estimates that’ll cut vehicles eligible for the credits from 72 to 25. Brands eligible for a tax credit include BMW, Ford and Rivian. As Electrek reports, sales can push manufacturers over the predetermined threshold of qualified sales, and Tesla is part of that group.
For some EV owners, however, this incentive wasn’t an influence on their decision anyway.
Anuarbek Imanbaev, VP of the Tesla Owners Club Austin, said the credit played very little role in his decision to get a Tesla.
He views his first Tesla as a more luxurious type of purchase that’s a different approach than what other car shoppers have.
“That's a different segment,” Imanbaev said. “I think in that segment, it was nice to have, but it wasn't anything that affected whether I would buy the vehicle or not.”
Still, Imanbaev thinks for those shopping for vehicles up to about $65,000, the tax credit could increase demand.
Reginald Collins, a sales professional at Onion Creek Volkswagen, has talked to the clients who weigh cost more when buying a vehicle and he said the tax credit is a “huge deal.”
“On top of the fact that you're not paying for any gas. And you're saving Earth, it's not a combustion vehicle,” Collins said, referring to Volkswagen’s ID.4 that people can buy with a $7,500 tax credit.
What’s its appeal over a Tesla or other electric vehicles?
“Just the flexibility of it, it's much less expensive,” Collins said.
And while EVs require some wait—Collins estimates the ID.4 taking about 8 to 10 months— he also said that the plant in Chattanooga, Tennessee is making for faster production.
“If you need parts, you can order them from the states instead of ordering them in Germany,” Collins said. “So if you have customer issues they can get parts quicker.”
So if you’re trying to get a deal on an EV, you may need to act quickly. The Senate sent the plan, known as the Inflation Reduction Act, to the House earlier this week meaning it could be headed to President Biden’s desk soon.
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A chain of plant-based restaurants and wellness centers is getting its start in Austin.
Following time in executive-level positions with Austin-started Whole Foods Market, Betsy Foster, former senior vice president, retiring co-founder and CEO John Mackey and former Whole Foods co-CEO Walter Robb are onto their next project: a startup called Healthy America LLC.
The venture raised $31 million from investors earlier this year to create a national network of wellness centers and vegetarian restaurants.
Bloomberg reported on a now-closed job posting for Healthy America, which described it as “an evidence-based lifestyle company, leading the convergence of culinary, healthcare, and wellness.”
The posting mentions an aim to “meaningfully transform the health and wellbeing of individuals.” Aside from food, educational, fitness and spa services may also be offered.Incorporated in 2020, Healthy America seems to be at an office near 38th Street and Lamar Boulevard, the Austin Business Journal reports.
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