Archive for April 2014

Toyota HQ Leaving California for Texas – A Bit of the Inside Story

April 30, 2014

The news media is filled with stories about Toyota relocating its North American headquarters to Plano, Texas.

After reading several articles, I’ve concluded that a Bloomberg report is the most insightful. See “Toyota Move Depended on Internal Study Rather Than Perry.”

The company conducted traditional methods to find an optimal location by starting the search with about 100 locations in mind. After about 75 locations didn’t meet the company’s specifications, they were eliminated, leaving 25 that received a more in-depth look. Finally, it came down to 7 communities. There is no indication about how many of those were visited by company officials. Whatever the case, Plano came out on top.

It appears that Toyota did an excellent job following a tried-and-true method used by most of us in the site selection community. I’d expect the company to conduct such a thorough process considering the project’s magnitude — 3,000 jobs will be moved.

Also see CNBC’s “California drove Toyota out of state” where Torrance Mayor Frank Scotto says, “The state of California lost Toyota.” He pointed to a number of issues that negatively affect companies’ bottom line: tax structure, workers’ compensation and liability insurance.

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.

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

April 15, 2014

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.