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Enderle Group Principal Rob Enderle on what drew Samsung from California’s Silicon Valley to Texas.
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Anyway high tech -- delegates at Texas instead of dealing with -- high taxes and massive regulations and a silicon valley California.
He -- Samsung has invested four billion bucks at a factory in Texas.
A state with let's say you're very low taxes almost no regulations and a right to work law the prevents employers from forcing their workers.
To join unions tech expert -- and -- says.
Smart got money sends ago to the best business environment I guess than in this case bubbles so the cheaper -- what do you make us.
Yachts I mean that's the case is the gone someplace where -- it's cheaper mean these companies as we go through what what looks like a recovery yen.
Are looking for a place to be -- -- to do business that is the most financially effective for them and having government not on their back having having government not surprise them whatever more taxes I'm not only means that they can do more for less.
But it means that workers their hiring can also do more fair -- so Texas is pretty cheap to live in as well.
On Texas has been doing this a lot with a lot of companies.
And yet you know from from major food chains to -- -- have been.
Today I know what attracts the jobs but did you always wonder at what cost and -- the -- Florida.
Governor the Texas governor is little battled says disorder outbid each other to woo employers succumbed to their states but what is the limit what is the price would you say.
It's not worth it.
Well certainly if you're bringing folks any not getting a return on that business that I mean major plant sites like Samsung.
Those are fab is they don't move easily so it's not going to be on a -- if you're bringing in businesses.
Warehouses.
That your -- it big in businesses that are mostly just people -- not a lot of time.
Equipment so the next state can be due out the next cycle that's probably not a good way to do what you really want a bid for -- -- -- once they come and we'll be very hard to leave so it's a sustainable revenue source.
A sustainable.
Source of jobs -- don't end up like well like Ireland kind of ended up where they have a lot of businesses and they ended up of a lot of vacant -- factories on that.
When the incentives moved to another country think Poland was next summed up so.
Oh wait wait yeah hello you'll -- very big business.
Bright you know -- -- Obama were to have the highest corporate taxes if rates go up when they don't -- identity -- will be higher still.
Obviously that's -- -- -- -- business growth.
But they are you bid for companies still coming here is that by comparison even went higher rates in Japan and France -- That Dalia.
They stink that there are no the US and -- no draw we are the draw and -- worth the price.
Is that does that make Wednesday.
When you you can sometimes argue that a kind of depends on the -- on the region certainly China's having a lot of issues right now what pollution.
Which is which is make it hard for families to one moved army and aggregate people moving into China for jobs and -- up from -- lot.
For little money and -- even the workers they're bringing in from the farms want to move back.
Now so that so it that has proven not to be a great place to work and and employees do have a choice of a -- -- -- -- but it out with education.
That replaces the world where you can get better education here -- A lot of these are elements that core benefits the kind of quality of life can actually better and other places of the world as well.
What's kind of nice though for us is we still have -- awful lot of the old talent and -- -- and people just don't relocate all that easily.
And much more likely want to rely.
I'm -- -- stimulus but nobody does that -- this -- you know you're right but.
I think if bottle boss and I'm trying to -- -- workers tellem like -- -- use to.
On one location let's say here in California -- -- -- and we're gonna move you to Texas I don't Simpson is starting -- -- uphold our press.
But now I would be the boss saying look even if I don't give you a nickel more.
You don't you're you're gonna go from -- and 8% state tax to paying 0% statements is just got an 8% raise move.
That's a compelling -- better -- Because the housing prices are quite -- floor of the house you've got -- California which might via an apartment you can actually get on a state so -- it's up by housing prices are very different enough.
And Texas now you lose the weather.
Which is one of the things -- you're gonna you're gonna have to make up but but you do get a lot more and money and increasingly a lot of a lot of your peers are gonna be their -- for the jobs are gonna be going forward think you have to consider a lot of that stuff.
Well put Bob oyster -- him -- -- in Mountain View California.
Until he goes to Texas.
