http://www.latimes.com/business/autos/la-fi-hy-autos-toyota-move-texas-jobs-20140428,0,1792462.story#axzz30CzCAwvp

The move creates a new sales HQ in Plano and in all likelihood, moves a lot of jobs there from Torrance.

In related news, many Internet commenters expressed glee.
:hatters

Tesla and Hyundai are probably happy. A larger pool of applicants now to hire from.

pingpong2;842310375 said:

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Tesla and Hyundai are probably happy. A larger pool of applicants now to hire from.

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I think Tesla's angling to setup a factory in Texas and build up a presence there as well actually.

It is moving a substantial part of its operations over three years, while leaving a substantial part in place.

pingpong2;842310375 said:

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Tesla and Hyundai are probably happy. A larger pool of applicants now to hire from.

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I imagine Tesla will be in Texas soon enough, and with a considerable presence.

Wow, my cousin is a spokeswoman/PR hack for Toyota...guess she might be moving, or not.

It's only 3000 jobs. The world is not ending. And yes the south is a better place for a lot of manufacturing than California. Cheap land and air conditioning. Just the way it is.

Why is this posted here?

What does toyota have to do with Cal football, let alone sports?

ColoradoBear1;842310381 said:

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It's only 3000 jobs. The world is not ending. And yes the south is a better place for a lot of manufacturing than California. Cheap land and air conditioning. Just the way it is.

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They're not moving any of their plants there though. Mostly cube jobs and maybe R&D. TRD is still staying in California, and the Kentucky plant is staying put.

dinan3;842310384 said:

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Why is this posted here?

What does toyota have to do with Cal football, let alone sports?

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The same might be said of a lot of OT threads.

dinan3;842310384 said:

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Why is this posted here?

What does toyota have to do with Cal football, let alone sports?

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They do run cars in NASCAR I guess.

Just the latest step in a continuing wave of businesses moving from California to Texas. Wonder how long it will take for California to wake up? In many ways Texas sucks (climate and topography being two that come to mind), but it's a fact that the state is much more business friendly than California and the cost of living for residents is significantly lower than CA.

Best put your flamesuit on, methinks.

Golden One;842310391 said:

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Just the latest step in a continuing wave of businesses moving from California to Texas. Wonder how long it will take for California to wake up? In many ways Texas sucks (climate and topography being two that come to mind), but it's a fact that the state is much more business friendly than California and the cost of living for residents is significantly lower than CA.

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The California business exodus myth

pingpong2;842310392 said:

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Best put your flamesuit on, methinks.

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I wear it permanently!

beelzebear;842310393 said:

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The California business exodus myth

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Unfortunately, the article is light on facts. Talk to the people who have lost high paying manufacturing jobs because the jobs have moved out of state and see what they think. I don't believe they'll say it's a myth. High tech jobs are great, but a lot of middle class people are not qualified to fill them.

dinan3;842310384 said:

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Why is this posted here?

What does toyota have to do with Cal football, let alone sports?

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There's a chance a Toyota plant in Texas may lead to an In N Out opening up on Telegraph.

Golden One;842310396 said:

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Unfortunately, the article is light on facts. Talk to the people who have lost high paying manufacturing jobs because the jobs have moved out of state and see what they think. I don't believe they'll say it's a myth. High tech jobs are great, but a lot of middle class people are not qualified to fill them.

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If you wish you can do another search on this topic, because I'm not. Not saying things are perfect here but the whole skying is falling and businesses are leaving CA scenario is a myth. And lets be honest as to why: propaganda by the business sector to leverage more benefits, lower taxes and all that.

If the business climate was so crappy, CA wouldn't be the eighth largest economy in the world. Keep whining however about taxes and the crappy biz climate...and others, the fit, will simply take your lunch money and punch you out.

Golden One;842310396 said:

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Unfortunately, the article is light on facts. Talk to the people who have lost high paying manufacturing jobs because the jobs have moved out of state and see what they think. I don't believe they'll say it's a myth. High tech jobs are great, but a lot of middle class people are not qualified to fill them.

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Yeah, everyone is moving out of the state, which is why we all have low-paying jobs and affordable housing right?

If people were moving out of California, demand would decrease, not increase don't ya think?

Manufacturing will continue to move out of California for the cost of land alone. However, you simply can't find the upper-echelon talent in Texas that can be found in California and that will continue to be the case as long as California has beautiful coasts, world class wine, and the #1 public university system in the world.

Developers seem to agree. Within the past two years, the Mission Bay plan is worth 1.3 billion and Oaklands China Basin plan is valued at 1.4 billion. Why aren't these developers sinking 1.4 billion into developing the tax-friendly towns of Texas? They have no developments that can touch either aforementioned Bay Area deal and there's obvious reasons for this.

Holmoephobic;842310407 said:

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Yeah, everyone is moving out of the state, which is why we all have low-paying jobs and affordable housing right?

If people were moving out of California, demand would decrease, not increase don't ya think?

Manufacturing will continue to move out of California for the cost of land alone. However, you simply can't find the upper-echelon talent in Texas that can be found in California and that will continue to be the case as long as California has beautiful coasts, world class wine, and the #1 public university system in the world.

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Ergo upper class is safe; middle class gets screwed.

pingpong2;842310408 said:

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Ergo upper class is safe; middle class gets screwed.

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The "middle class" in the Bay Area makes six figures and works at google, apple, sales force, etc." My ditsy friend just picked up a six-figure job as a recruiter at Saleforce because there is so much competition from companies to hire the best talent. Yes, companies are spending tons of money just to scout out hireable talent. Is that not an extremely bullish hiring sign?
I look out my office window right now and see more cranes than I can ever remember seeing in San Fransico. They are building offices and lots of them. Soon enough, the construction will be complete and tens of thousands of workers are going to be paid to work in those offices and all of those fuckers are going to need somewhere to live...

Holmoephobic;842310411 said:

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The "middle class" in the Bay Area makes six figures and works at google, apple, sales force, etc." My ditsy friend just picked up a six-figure job as a recruiter at Saleforce because there is so much competition from companies to hire the best talent. Yes, companies are spending tons of money just to scout out hireable talent. Is that not an extremely bullish hiring sign?
I look out my office window right now and see more cranes than I can ever remember seeing in San Fransico. They are building offices and lots of them. Soon enough, the construction will be complete and tens of thousands of workers are going to be paid to work in those offices and all of those fuckers are going to need somewhere to live...

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What percentage of people in California work in the tech sector? I can promise you it's a lot lower than you think, and this is coming from someone in tech. Silicon Valley is a surprisingly small place.

The high salary for a recruiter is kind of surprising. Generally recruiters have fairly low salaries, and they make the bulk of their income through commission based on the number of candidates they place. Not only that, but they tend to be brought in as contractors, and their contracts rarely get extended once they've tapped out their network.

Meanwhile, entire office towers are being leased out by companies before construction even begins in SF. Places like the Bay Area aren't getting more expensive because jobs are leaving. Just different types of jobs...

If Texas is stealing our business at such a high rate, why have there been 30 California HQ'd IPOs so far this year to Texas' 7? VC financing is still pouring into CA businesses at a much higher rate than Texas. I don't know about the rest of the state, but like Holmoephobic says, things are pretty rose up here in the bay area for high quality jobs.

California's high cost of living is a result of market forces not due to our inept government. Honestly if our government wasn't so bad, our state might be even more desirable to live in which would make it even more expensive.

This Texas myth is mostly confirmation bias - people pay more attention to evidence that jobs are moving to Texas and ignore evidence to the contrary which doesn't support their position. I'm happy for Texas that they're economy is growing (assuming it is, I don't really know) but it doesn't give me any pause.

Unit2Sucks;842310418 said:

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If Texas is stealing our business at such a high rate, why have there been 30 California HQ'd IPOs so far this year to Texas' 7? VC financing is still pouring into CA businesses at a much higher rate than Texas. I don't know about the rest of the state, but like Holmoephobic says, things are pretty rose up here in the bay area for high quality jobs.

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I think that's the concern some folks have. Tech and white collar jobs have staying power here, but the more "disposable" blue collar jobs are heading out. The problem is if those folks don't leave with the jobs, they end up becoming dead weight here if they can't adapt.

Unit2Sucks;842310418 said:

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If Texas is stealing our business at such a high rate, why have there been 30 California HQ'd IPOs so far this year to Texas' 7? VC financing is still pouring into CA businesses at a much higher rate than Texas. I don't know about the rest of the state, but like Holmoephobic says, things are pretty rose up here in the bay area for high quality jobs.

California's high cost of living is a result of market forces not due to our inept government. Honestly if our government wasn't so bad, our state might be even more desirable to live in which would make it even more expensive.

This Texas myth is mostly confirmation bias - people pay more attention to evidence that jobs are moving to Texas and ignore evidence to the contrary which doesn't support their position. I'm happy for Texas that they're economy is growing (assuming it is, I don't really know) but it doesn't give me any pause.

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It's more nuanced. California is still the place for intellectual capital be it tech, medical or otherwise but if you're talking about low tech manufacturing, sales or distribution centers then Texas is a more competitive place. The country is fortunate that we can maintain internal competition between states.

pingpong2;842310412 said:

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What percentage of people in California work in the tech sector? I can promise you it's a lot lower than you think, and this is coming from someone in tech. Silicon Valley is a surprisingly small place.

The high salary for a recruiter is kind of surprising. Generally recruiters have fairly low salaries, and they make the bulk of their income through commission based on the number of candidates they place. Not only that, but they tend to be brought in as contractors, and their contracts rarely get extended once they've tapped out their network.

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If you count middle men and 3rd party businesses, it often seems like half the city is working in or with tech.

You just described the recruiting landscape circa 2010. Far more companies have emerged since then, which has put a premium on talent acquisition (often a far cheaper option than acquiring an entire company is to acquire a few engineers) and this increased the value of recruiters. Turns out businesses are figuring out what college football figured out awhile ago -- investing in good recruiters is a great way to get ahead of the competition.

BTW, Apple's new campus alone will more than double in new employees the # of manufacturing jobs Toyota is moving to Texas. Again, different types of jobs. Both Apple's new campus, and Toyota's move should be complete around the same time.

Of course, Apple will open a new data center in Nevada or Texas and people will harp on that headline while ignoring where all the high paying jobs are actually going . . .

dinan3;842310384 said:

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Why is this posted here?

What does toyota have to do with Cal football, let alone sports?

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They are a sponsor!

Take down those red letters!

Holmoephobic;842310407 said:

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Yeah, everyone is moving out of the state, which is why we all have low-paying jobs and affordable housing right?

If people were moving out of California, demand would decrease, not increase don't ya think?

Manufacturing will continue to move out of California for the cost of land alone. However, you simply can't find the upper-echelon talent in Texas that can be found in California and that will continue to be the case as long as California has beautiful coasts, world class wine, and the #1 public university system in the world.

Developers seem to agree. Within the past two years, the Mission Bay plan is worth 1.3 billion and Oaklands China Basin plan is valued at 1.4 billion. Why aren't these developers sinking 1.4 billion into developing the tax-friendly towns of Texas? They have no developments that can touch either aforementioned Bay Area deal and there's obvious reasons for this.

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These aren't even manufacturing jobs. Toyota does produce vehicles in California, Baja California, to be precise--they produce Tacoma pick-ups in Tijuana.

Some of the other jobs are coming from Kentucky? Is Texas now lower cost than Kentucky?

I have friends who work at Toyota in Torrance, so I feel for them, but this is not about California.

dinan3;842310384 said:

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Why is this posted here?

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Because any time a business decides to leave California, people want to use this as "proof" that our liberal government and its policies drive business away from the state (even though one individual example really proves nothing).

... and the cost of living for residents is significantly lower than CA.[/QUOTE said:

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I've lived in Texas (Dallas), and the cost of living may be less, but you get what you pay for...!

pingpong2;842310419 said:

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I think that's the concern some folks have. Tech and white collar jobs have staying power here, but the more "disposable" blue collar jobs are heading out. The problem is if those folks don't leave with the jobs, they end up becoming dead weight here if they can't adapt.

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Sounds like basic free-market capitalism going on here:

1. California has a booming economy in one type of industry (high tech).

2. This industry booms so much that it starts making land prohibitively expensive around the state.

3. Companies in other industries (like manufacturing) decide to move out because of the rising cost.

4. Lather, rinse, repeat.

It's not so much that "business" is leaving California; it's that one kind of business is very successful and is starting to crowd the other ones out. the other businesses have other places to go (like Texas) where they can better operate, so they do. I do feel for the people who worked in manufacturing and lose their jobs as a result (though perhaps those people might think about moving elsewhere too), but I'm not sure what can be done except for handing a kind of "corporate welfare" to the manufacturing companies (cut taxes for them, strip away regulations, etc.), and what motivation does the state government have to do that?

McUrsine;842310442 said:

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I've lived in Texas (Dallas), and the cost of living may be less, but you get what you pay for...!

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Seriously. If you want cheap, live in Bakersfield or Fresno. At least spectacular mountains and cool, beautiful coastline are only an hour or two drive away. It takes days to drive out of Texas.

sycasey;842310446 said:

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Sounds like basic free-market capitalism going on here:

1. California has a booming economy in one type of industry (high tech).

2. This industry booms so much that it starts making land prohibitively expensive around the state.

3. Companies in other industries (like manufacturing) decide to move out because of the rising cost.

4. Lather, rinse, repeat.

It's not so much that "business" is leaving California; it's that one kind of business is very successful and is starting to crowd the other ones out. the other businesses have other places to go (like Texas) where they can better operate, so they do. I do feel for the people who worked in manufacturing and lose their jobs as a result (though perhaps those people might think about moving elsewhere too), but I'm not sure what can be done except for handing a kind of "corporate welfare" to the manufacturing companies (cut taxes for them, strip away regulations, etc.), and what motivation does the state government have to do that?

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Agree, except that Toyota isn't moving manufacturing jobs from California. They are consolidating white collar jobs in a single location, including from uber-low cost Kentucky. The NUMMI plant in Fremont used to manufacture some Toyotas (more GEO Metros, I think), but is now a Tesla plant.