Reno Gazette-Journal Has Great Story Explaining Site Selection Process for Companies

Posted April 15, 2014 by bizlocate
Categories: Best States for Business, Business Location, Business Relocation, Businesses leave California, Economic Development, Nevada, Reno, Site Selection, Worst States for Business

An article headlined “How Reno is chosen when firms seek new sites” in the city’s newspaper gives an excellent account of what companies look for when considering new locations in which to expand or completely relocate.

Details in the story, including what local Economic Development officials do during site searches, are often found in specialized business magazines. The Reno Gazette-Journal has done a service in letting its readers understand more about how companies select locations for their new facilities.

I admit I was rather pleased to be quoted in the story, particularly when I discussed family-owned businesses:

“Often, company owners like the idea of their employees being able to purchase homes,” Vranich said. “For example, I could move from California to Texas, Nevada, Arizona or Florida, and I could continue to pay my employees the same and they could afford to purchase a home and the cost of living is lower.

“California’s elitists like to make out business owners to be monsters, but the business owners I work with are looking at what’s best for their company and for their employees. Quite a number of heartwarming conversations revolve around healthy employee lifestyles.”

Congratulations to the Economic Development Authority of Western Nevada and its CEO Mike Kazmierski and staff  for their continuing success in attracting growing companies.

Since I have good words for Nevada, I should clarify that I do not represent Economic Development agencies. All my clients are companies and my work for them is conducted on an objective basis.

Joseph Vranich of Spectrum Location Solutions helps companies find great locations in which to grow. Joe also is a keynote speaker on the challenges and benefits of business owners relocating out of high-tax, high-cost, over-regulated states. More information is available at Biography and Speaking Availability.

Editorial Points to Companies Escaping California’s Awful Business Environment

Posted March 29, 2014 by bizlocate
Categories: Best States for Business, Business Location, Business Relocation, Businesses leave California, California taxes, Economic Development, Leaving California, Site Selection, Worst States for Business

Today, in an Orange County Register editorial entitled “Texas messing with California,” the newspaper expressed concern about corporations leaving business-hostile California for other states. They noted three companies founded in California that have selected business-friendly Texas as their new home, namely Fluor Corp. (founded in 1912), Calpine (1984) and Occidental Petroleum (1920).

If the editorial writers had more space, they also could have mentioned Northrop Grumman, founded in California in 1939 as Northrop Aircraft Inc., which relocated its headquarters to Virginia in 2011.

“Under the radar” are smaller privately-owned companies that depart California with little or no notice.

It’s a thought-provoking editorial, and you can find it here (only people with a subscription to the Register will be able to open the link).

Joseph Vranich of Spectrum Location Solutions helps companies find great locations in which to grow. Joe also is a keynote speaker on the challenges and benefits of business owners relocating out of high-tax, high-cost, over-regulated states. More information is available at Biography and Speaking Availability.

Site Location Consultant: “Praise for Pittsburgh”

Posted March 25, 2014 by bizlocate
Categories: Best States for Business, Business Location, Business Relocation, Economic Development, Site Selection

Funny thing about Pittsburgh natives who now live somewhere else. We remain intensely loyal.

Why? Well, we’re proud of the progress that the region has shown. I recall growing up in a city where smoke from the steel mills made the sky “cloudy” on many days. Reflections from some steel mill furnaces made the sky red at night. It was a brawny, dirty city where people made things — things like steel frames for automobiles, railroad freight cars and huge plates for U.S. Navy warships.

The city is so different now. The air is remarkably clean, people are seen boating on the rivers, and former industrial brownfields are coming back to life as sites for research facilities, offices, and retail establishments. The “brawn” today is found in the intellectual prowess on area campuses — Carnegie Mellon, the University of Pittsburgh, and Duquesne University, to name just three.

Lately, I’ve been struck by how many people in Economic Development Agencies in other cities around the country are big boosters of my old home town. Hence, for the Pittsburgh Regional Alliance,  and just for the fun of it, I wrote about the enthusiasm that I witness first hand.

Disclaimer! Although I’m loyal to my home town, I nonetheless remain completely objective when working on site selection projects where I’m comparing different cities and states. That is, after all, part of the job.

“Praise for Pittsburgh” is here.

Joseph Vranich of Spectrum Location Solutions helps companies find great locations in which to grow. Joe also is a keynote speaker on the challenges and benefits of businesses relocating out of high-tax, high-cost, over-regulated states. His recent focus has been on why business enterprises of all types leave California. 

 

Another High-Tech Co. to Ease Out of San Francisco Bay Area?

Posted December 19, 2013 by bizlocate
Categories: Business Location, Business Relocation, Businesses leave California, California Business Environment, California radicals, California taxes, Cupertino, Economic Development, Leaving California, Menlo Park, Millbrae, Milpitas, Mountain View, Palo Alto, Redwood City, San Bruno, San Francisco, San Jose, San Mateo, Site Selection, Sunnyvale, Worst States for Business

Tags:

Word has it that another California high-tech company is looking for an out-of-state location to house a growing part of its business. Depending upon how much more cost-effective the locality proves out to be, it’s possible that later on more jobs will be relocated to the new community.

One specification is that the state and locality must be “friendly” to business – which brings me to some unfriendly targeting of a well-regarded company, Google.

Last week, headlines reflected mean-spiritedness hitting the streets of San Francisco. That’s when protesters blocked a Google bus from taking employees to their jobs at the company’s headquarters in Mountain View. How radical were those who impeded the lawful operation of a shuttle bus? Well, consider the extremists’ demand as illustrated by this headline: “Protesters Block Google Bus, Demand $1 Billion.”

Anti-Business California

The action reinforced my belief that California’s hostility to successful businesses will spill over to hostility to successful employees, who are guilty of, well, doing absolutely nothing wrong.

To Google officials I say – I hope you continue to meet with officials from economic development agencies representing places that show understanding toward job-creating companies. Places where being gracious remains part of the social fabric.

Google already knows plenty about friendly areas. Consider stories that have run this year alone about Google expanding in Pennsylvania (“Google to add hundreds of new employees to Pittsburgh office”), North Carolina (“Google announces $600M Lenoir data center expansion”) and South Carolina (“Google to invest $600 million, add 3rd data center in Berkeley County”).

I for one applaud Google for their elsewhere-in-the-nation expansions. So much of California’s electorate is anti-business, anti-corporate, anti-profit, anti-”rich people,” anti-urbanite, anti-suburbanite, and anti-just about anything that doesn’t fit their peculiar worldview. These less-than-stellar people elect radicalized politicians to public offices, and one result is a harsh business environment.

The protester’s justification for targeting Google? The San Francisco Chronicle says the private buses “have, for some, become a symbol of tech-fueled gentrification, economic inequality and soaring housing prices in the city.”

Fake Google Employee Outed

During the bus incident, someone who was being obnoxious claimed he worked for Google.

The Wall Street Journal reported that a “Google employee” who “jumped off the blocked bus, yelled and cursed at demonstrators, and pretended to blame them for their concerns about housing costs and gentrification” was really a union organizer – and he doesn’t even live in San Francisco. The Daily Mail posted a video of the incident.

KGO-TV in reporting on the protest said, “this may not be the end.” Really? If so, I suggest those who provide private shuttle bus services to their employees – Google, Facebook, Apple, Yahoo and Genentech – to more aggressively examine out-of-state options. Many states are more than suitable for your next facility.

In particular, businesses in San Francisco ought to re-think their location. There are about 3,000 non-California counties in the United States that are welcoming to commercial enterprises – places where protesters won’t insult your employees on public streets. Places where you won’t be “blamed” for bringing more wealth into a community.

Contempt for Bus Owner

One “demand” is that private bus operators be fined $1 billion. And the “crime” that warrants such action? Apparently, the tech industry’s private shuttles use more than 200 MUNI  (San Francisco Municipal Transportation Agency) bus stops, allegedly without contributing funds to support the “public infrastructure” at bus stops.

But private bus companies and their customers do financially support public infrastructure. For example, the owner of that bus pays 76.2 cents per gallon of diesel fuel – 51.8 cents of which goes to California (pdf) – the highest in the entire United States (pdf), a good portion of which is diverted from roads to subsidize transit operations like MUNI, BART, Caltrain’s peninsula commuter service and even bicycle trails.

Private bus operators pay hefty taxes when buying those expensive double-decker vehicles; pay sales taxes on every part down to the smallest bolt required for maintenance; and write checks for annual taxes and fees on business property and business licenses. Oh, and let’s not forget real estate taxes on offices and garages and vehicle registration fees – two taxes that Sacramento would like to increase next year.

Meanwhile, a MUNI, BART or Caltrain vehicle produces no sales or property taxes for the localities or the state. In fact, their purchase and operation requires continual taxpayer subsidies – paid for in part by the owner of the private bus that protesters blocked and the Google employees who were on the bus.

San Francisco’s radicals denounce self-supporting transit operations while advocating tax-absorbing operations. The city’s extremists obstructed a private bus driver who is unlikely to participate in a work stoppage while supporting BART where unions have gone on strike multiple times since 1976. Just how much more irresponsible can the city’s activists become?

High-Tech Companies Due Praise

The companies providing convenient shuttle services for employees generate enormous wealth for California and its counties and municipalities

For example, fat income tax revenue flow to the state as a result of job creation. With the state’s difficult business environment, and with alarming job losses in far northern California and the San Joaquin Valley, thank goodness the tech companies are creating lots of jobs.

Those jobs attract well-educated, highly motivated employees. These are well-compensated workers who pay huge amounts into the state’s “personal income tax” category that amounts to 61 percent of California’s revenues. Such ample funds allow irresponsible politicians in Sacramento – like Senate president pro tem Darrell Steinberg and Assembly Speaker John Perez – to indulge in their worst-in-the nation spending sprees.

Income taxes from well-compensated high-tech employees also underwrite recent pay raises for California legislators – already the most highly paid in the nation.

I won’t get into the real estate taxes, sales taxes and special fees generated by California’s high-tech firms. To mimic MasterCard’s commercial, for the state treasury they are “priceless.”

Protesters who blocked the Google bus either don’t know such facts or don’t care.

Tech Expansions Go Inland

A more reasonable civic environment is what Google found when it expanded in Oklahoma and Pennsylvania. Ditto for Adobe and eBay in Utah, Apple in North Carolina, PayPal and Intel in Arizona, McAfee in Texas, LinkedIn in Nebraska, Hewlett-Packard in Arkansas, Intuit in Nevada, SumTotal Systems in Florida – well, you get the idea.

Finally, the San Francisco area’s traffic congestion is just about the worst in the nation. Virtually everywhere else, an employer doesn’t even need to operate private shuttle buses for its staff. But where they do, the evidence is that the community appreciates it.

Joseph Vranich of Spectrum Location Solutions helps companies find great locations in which to grow. Joe also is a keynote speaker on the challenges and benefits of business owners relocating out of high-tax, high-cost, over-regulated states. More information is available at Biography and Speaking Availability.

© Unauthorized use of this blog is strictly prohibited. Excerpts may be used, but only if expressed permission has been granted. With such approval, attribution must be to “Joseph Vranich of Spectrum Location Solutions in Irvine, Calif.”

Foxconn Selects Central Pa. For High-Tech Plant

Posted November 24, 2013 by bizlocate
Categories: Carnegie Mellon University, Economic Development, Foxconn, Harrisburg, manufacturing, Pennsylvania, Pennsylvania business, Pittsburgh, Research & Development, Site Selection

It’s long been known in site selection circles that Foxconn Technology Group has been looking for a community in the United States in which to locate a new manufacturing facility. Details as to which areas were being evaluated have been known to only a select group of economic development officials.

Now we know. Yesterday Foxconn announced it will invest $30 million in Pennsylvania for a plant to manufacture electronic components. About 500 jobs will be created in a facility expected to be in or near Harrisburg.

Company Chairman Terry Gou said about the new facility: “We’ll go from original component R&D through to a complete high-end production chain. However this is not, as assumed, manufacturing for a specific brand…. We won’t be migrating Chinese production lines, but creating high-precision, high-tech, high value-added manufacturing in the U.S for future technology trends.”

According to the Economic Development BlogGou reportedly met with Gov. Tom Corbett “before deciding on selecting the state for the investment and signing an MOU with Pennsylvania for the project. FoxConn is not asking for any state incentives.” [Emphasis added.]

The Harrisburg Patriot-News cautioned, “It was not immediately clear whether Foxconn will be the company behind the proposed investment of a Apple repair facility near Carlisle.”

The announcement included good news for the western part of the state. Foxconn will invest $10 million in research and development at Carnegie Mellon University.  According to a Pittsburgh Business Times story, the university will be working with Pennsylvania and Foxconn “on a research initiative to bring high-tech manufacturing jobs to the state [and] work with Foxconn to integrate robotics and advanced manufacturing techniques into the company’s manufacturing process.

The company, bowing to pressure to manufacture more of its products in the United States, is believed to have additional domestic locations under study.

Foxconn is the commonly known trade name for Hon Hai Precision Industry, which is based in Taiwan and is the world’s largest contract electronics manufacturer. It’s customers include Apple, Cisco, Dell, Nokia and Sony. Foxconn Electronics currently has an operation in Harrisburg with 30 employees.

Joseph Vranich of Spectrum Location Solutions helps companies find great locations in which to grow. Joe also is a keynote speaker on the challenges and benefits of business owners relocating out of high-tax, high-cost, over-regulated states. More information is available at Biography and Speaking Availability.

California Business Costs to Increase Again

Posted August 25, 2013 by bizlocate
Categories: Businesses leave California, California Business Environment, California Regulations, Workers' Compensation, Worst States for Business

Tags:

Memo to California employers: Start revising upward your 2014 workforce cost budgets.

The headline of a Sacramento Bee story says “Workers compensation hike on California employers proposed.” Those of us who’ve run a business in the state know that “proposed” means, well, it will become fact.

After “reforms” last year, the Workers Compensation Insurance Rating Bureau suggests premiums should rise next year, perhaps by 3.4 percent.

See the story here.

California’s asset seizures through taxes means innovator Bryan Goldberg is starting new company out of state

Posted May 28, 2013 by bizlocate
Categories: Business Location, Business Relocation, Businesses leave California, California Business Environment, California taxes, Income Tax, Leaving California, Retroactive Tax, Site Selection, Tax abuse

Tags: , , , ,
Because of asset seizures, I am starting my new company outside California (via Pando Daily)

By Bryan Goldberg On March 25, 2013Today was a bad day. After meeting with my tax accountant, I am now cutting a very large check to the State of California, all of which resulted from Proposition 30 and the “retroactive tax” that was levied on my 2012 income. This despite the fact that I already…


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