Monday, August 22, 2011

Move Your Firm to Texas

Ana Campoy, writing for The Wall Street Journal, has an article in today's journal entitled "For Companies, Texas' Benefits Are Many." Unfortunately, it is not available online to non-subscribers as yet, perhaps in a couple of days. Basically, what she does is document a variety of firms that have moved to Texas and why they did it.

One thing making Texas attractive, that nobody seems to mention, is that dirt is cheap in the Lone Star State. "Dirt" in this context means land or acreage. Why is it cheap? Because Texas has so much of it, most of which is flat and developable.

Inexpensive land means inexpensive plant sites and homes. Inexpensive homes plus no state income tax means you can pay workers much less without degrading their lifestyles. Lower wages are consequential for most firms.

Campoy lists other reasons which are also valid: right-to-work, tort reform, bilingual work force, etc.