Score one for Texas.
Toyota announced that it is moving its U.S. headquarters from California to a site in Plano, just north of Dallas. The move means an estimated 3,000 job are coming to the Metroplex.
Texas Gov. Rick Perry is touting the state’s business-friendly environment as a reason for the move. Even though I’ve been critical of the governor’s job-poaching forays into other states, I do commend him — and the state — for creating circumstances that attract high-dollar companies, such as Toyota, to set up shop in the Lone Star State.
Texas has no state income tax. It doesn’t place burdensome regulations on businesses. The cost of living in Texas is significantly lower than many other states, such as California. You can get much better housing for the money here than you can in California and that has to be a huge selling point for prospective employers.
However, as the Texas Tribune reports, wages in Texas are lower than they are in other states. We are a “right-to-work” state where unions aren’t particularly strong.
I hasten to note that many of these aspects about doing business in Texas are well-known to Fortune 500 companies throughout the world. Thus, Gov. Perry did not need to venture to California or other so-called “high tax” states to poach jobs.
Still, the news about Toyota is good for Texas and it likely will signal a huge wake-up call to California and other states to do a better job of keeping their own businesses.