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Toyota bailing on California going to Texas

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Welcome to Hell Texans

4-29-2014

http://finance.yahoo.com/news/boom-time-in-texas--jobs--traffic--water-worries-143250407.html

Boom time in Texas: Jobs, traffic, water worries



As economy prospers, state copes with crowded highways, strained water supplies



Americans have flocked to Texas in search of a piece of the state's booming economy as much of the rest of the country struggled.



Now, the state's largest cities are seeing crowded highways, strained water supplies and other pressures that have come with the growth. And



Texas politicians—protective of the small-government, low-tax policies many of them believe are at the root of the state's success—are grappling with how to pay the price of prosperity.

Aided by the promise of plentiful employment and a low cost of living, Texas added 1.3 million people from 2010 to 2013, more than any other state, according to the U.S. Census Bureau. The Lone Star State's population has pushed past 26 million and is projected to reach 40 million by 2050.

But the size and pace of the population spurt is becoming more difficult to manage, presenting public officials with a challenge: How to beef up public infrastructure without straying from their small-government philosophy.


"We are already straining our systems for water, power, schools and roads," says Texas State Demographer Lloyd Potter, appointed by Mr. Perry in 2010. "And they'll continue to be stressed unless we invest more heavily."

Michelle Dahlenburg, a 35-year-old Chicago transplant, moved to Austin in 2008 to get a graduate theater degree and stayed because of the city's vibrant arts community. But traffic and skyrocketing rents in her adopted hometown have her occasionally longing for home.


"I can't go anywhere in town without bumper-to-bumper traffic," says Ms. Dahlenburg.

"We are in an unenviable pinch point where our congestion is horrific, but it'll be 15 years, at a minimum, before we can provide high-volume alternatives," says Ryan Robinson, Austin's demographer.
 
Also, keep in mind that when the properties are paid off, the CA homeowner will have more actual spending dollars available than the TX homeowner...
I know of people so upside down on what they paid for a house after the bottom dropped out on them vs. what they can actually get for it, they'd throw something at you if you said that in front of them.

That only works IF by the time you want to sell and get the hell out, there's anyone dumb enough to be moving the other way, interested in paying 6x too much to trade places with you. Sure, it can happen- but no guarantee. With this state's future prospects? I wouldn't count on it always being a sure thing.
 
That's venture capital. How many people do you know employed by a startup company?

California is pretty much the birthplace of modern venture capital firms so of course it leads the pack. The firms prefer keeping a close eye on who they give venture capital money to, so you have an advantage being close to them.

But what good is citing venture capital money in CA's favor if once the start up is established and moves up to manufacturing a product (you know, the point where actual jobs are created) and they locate their factories in Texas or Tennessee or even out of the country?

Probably half of my friends work at startups or started their own. Manufacturing is a low value add step. Obviously people living in CA need to contribute high value, such as design and engineering, not manufacturing, to justify our high pay.
 
I'm not talking organic, per se, so much as Slow food. It is, by nature and practice, organic, but that isn't the point. The real issue being that it's easier to find heritage stocks of breeds--not this USDA standard pork shit that doesn't resemble any kind of real pig--lean pig? wtf is that? D:


anyway, back to my initial point: based on some empirical theorizing, our farts very likely do smell better. :colbert:

The pork problem in America is the "all fat is bad, give me a dry piece of garbage chop please" mentality that has almost ruined pork. People are finally starting to come around and realize that bacon isn't the only piece of the pig that needs to have fat on it.

And the farts don't smell better, Californians are just more likely to enjoy the smell of the their own more.
 
Probably a good move for Toyota considering their intent to move everything under one roof and break down internal divisions that hamper the company's operations. The vast majority of their manufacturing is done in the region also so I'm sure that played a major role in this decision.

I don't think this decision really had that much to do with issues in CA's business environment, real or perceived.
 
Probably a good move for Toyota considering their intent to move everything under one roof and break down internal divisions that hamper the company's operations. The vast majority of their manufacturing is done in the region also so I'm sure that played a major role in this decision.

I don't think this decision really had that much to do with issues in CA's business environment, real or perceived.

Taxes and regulation were sited as the big drivers in the press conference.
 
Taxes and regulation were sited as the big drivers in the press conference.

They had already made those decisions for their manufacturing, like most other automakers. Toyota has a stated desire to reorganize how the company functions internally and operate from at least a regionally central location. If it was only about the dollars they probably should have moved to Nevada.
 
Probably half of my friends work at startups or started their own. Manufacturing is a low value add step. Obviously people living in CA need to contribute high value, such as design and engineering, not manufacturing, to justify our high pay.

You know that design and engineering, at the current rate at which the US is falling behind in education, will be outsourced inevitably right? Except no one is going to have much sympathy for silicon valley when it happens.
 
They had already made those decisions for their manufacturing, like most other automakers. Toyota has a stated desire to reorganize how the company functions internally and operate from at least a regionally central location. If it was only about the dollars they probably should have moved to Nevada.

There were many factors listed.
Taxes/regulation and business friendly
Quality of life and housing
Schools
Close to major international airport
Proximity to NAMCs

Face it, California forced them out.
 
There were many factors listed.
Taxes/regulation and business friendly
Quality of life and housing
Schools
Close to major international airport
Proximity to NAMCs

Face it, California forced them out.

Cost of doing business/living in CA (relative to other states) has been high for a long time but it mattered less since the manufacturing was gone. Toyota is kind of notorious for a corp structure that is compartmentalized and doesn't talk to each other. Lentz was tasked with changing that and moving the HQ to where the manufacturing is a natural step. Some reduced cost by employing a cheaper corp labor pool is just gravy.
 
Cost of doing business/living in CA (relative to other states) has been high for a long time but it mattered less since the manufacturing was gone. Toyota is kind of notorious for a corp structure that is compartmentalized and doesn't talk to each other. Lentz was tasked with changing that and moving the HQ to where the manufacturing is a natural step. Some reduced cost by employing a cheaper corp labor pool is just gravy.

They are paying the folks leaving CA the same, no salary decrease.
 
You know that design and engineering, at the current rate at which the US is falling behind in education, will be outsourced inevitably right? Except no one is going to have much sympathy for silicon valley when it happens.

No, I don't know that. I know that companies will look for the best designers and engineers wherever they are, because it determines their success and failure. Engineering and design are fixed costs. If you design a good product, you win in a marketplace and can amortize expensive engineering and design on high volume. If you design a loser, you'll flop and won't even amortize cheap outsourced engineers. Companies know that, that's why they are fighting for the best, not the cheapest designers and engineers. I know people who started companies here, and they know very well the quality and price of engineers all over the world, but choose to hire in Silicon Valley.
They can outsource manufacturing, because as long as you apply uniform QA tests and only pay for passing product, then it's the outsourcing partner's problem to make sure their cheap labor performs to your standards.
 
They are paying the folks leaving CA the same, no salary decrease.


This happened when I lived in Charlotte in the 90s. Nationsbank & Bank of America merged. All of the people from B of A in San Francisco relocated to Charlotte with their CA salaries and drove housing prices through the roof - a 4000 square foot brick mcmansion could be had in Charlotte for the price of a tract home in the bay area. Charlotte is still one of the most expensive home markets in the south.
 
If a house that is worth $600k in CA is only worth $100k in TX, when the homeowner decides to sell the house in CA, s/he can buy six houses in TX. Over the long term, the CA house will net the owner more actual dollars in property appreciation because the starting principal is a lot higher. Also, keep in mind that when the properties are paid off, the CA homeowner will have more actual spending dollars available than the TX homeowner which they can use to buy up cheap property in TX.
Only because the starting principle is higher! The person in texas could have just bought a house that's much bigger and nicer for $600k. The net profit is the same over time if you spent the same amount of money to begin with.
 
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