Texas Trip Confirms: California Needs a Plan to Create JobsPosted by Jack Stewart, President on April 19, 2011
California has an unemployment rate of 12 percent, lost 11,600 jobs last month and has no plan for creating jobs for the more than two million California workers who are looking for work. Texas has an unemployment rate of 8.1 percent, created 37,200 jobs last month and has an aggressive plan for investment and job creation.
The big take-away from the two days in Austin was the commitment Texas has to providing a positive business climate for its employers and to creating job opportunities for its workers. That commitment appears to start with Governor Rick Perry, who prides himself in saying, “creating and growing employers is his number one job – with a healthy, growing economy other problems become less daunting.”
This is not to say Texas has all the answers or that California doesn’t have its own set of attributes, but the fact is California’s business climate is very unpredictable and investors shy away from unpredictability. Texas places a high premium on a predictable business climate and investors seem to agree.
0 comments | Post your comment
Why not California #15 - More solar manufacturing lossesPosted by Gino DiCaro, Vice President, Communications on Jan. 6, 2011
Add another big loss to the mounting list of solar start-ups that opt to manufacture their product outside of California.
This week, Stion Solar Panels announced it would build it's manufacturing plant in Hattiesburg, Mississippi after getting a $75 million loan from the state and citing lower wages and a more trainable workforce. (CORRECTION: This sentence reads as if California provided the $75 million loan. It was Mississippi that provided the loan.)
California's inability to manufacture it's home grown innovations continues to play out against its own economy and workers. Let's face it, without manufacturing, innovation is just a good idea. California has a tremendous market and we have cutting-edge research & development. We don't, however, have a competitive environment to make our products and employ thousands of workers. And it seems to be getting worse, not better.
The approximate 200 to 300 high-wage jobs that the Mississippi solar plant will produce in 2011 (1,000 by 2017) would have been a blessing to some of the 2.2 million unemployed Californians and a boon to state revenues.
More intriguing is the announcement from many states this month that they should and would more actively recruit companies from California, citing the difficult business climate. Add Mississipi to the list of states taking advantage of California's woes.
1 comments | Post your comment
Why Not California #14Posted by Gino DiCaro, Vice President, Communications on Dec. 1, 2010
As we approach 2011, we took a quick look back at manufacturing growth and decline in the two biggest states in the west in 2010. Looks like Texas grabbed new high wage manufacturing jobs at a clip of 1,100 per one million of its citizens, while California LOST approximately 32 jobs per one million of its own hard workers. Ouch.
These 2010 numbers, combined with California's 34% manufacturing decline over the last decade, and statements like the following in a recent Reuters article should be "ground zero" for the state's new Legislature and Governor in 2011.
"The first order of business for rookie Republican governors taking office in the coming weeks will be to make their states more 'business friendly' by cutting taxes and regulations.
1 comments | Post your comment