Toyota HQ Leaving California for Texas – A Bit of the Inside Story

The news media is filled with stories about Toyota relocating its North American headquarters to Plano, Texas.

After reading several articles, I’ve concluded that a Bloomberg report is the most insightful. See “Toyota Move Depended on Internal Study Rather Than Perry.”

The company conducted traditional methods to find an optimal location by starting the search with about 100 locations in mind. After about 75 locations didn’t meet the company’s specifications, they were eliminated, leaving 25 that received a more in-depth look. Finally, it came down to 7 communities. There is no indication about how many of those were visited by company officials. Whatever the case, Plano came out on top.

It appears that Toyota did an excellent job following a tried-and-true method used by most of us in the site selection community. I’d expect the company to conduct such a thorough process considering the project’s magnitude — 3,000 jobs will be moved.

Also see CNBC’s “California drove Toyota out of state” where Torrance Mayor Frank Scotto says, “The state of California lost Toyota.” He pointed to a number of issues that negatively affect companies’ bottom line: tax structure, workers’ compensation and liability insurance.

One focus of this blog has been to address California’s perennially difficult business environment. Joseph Vranich is known as The Business Relocation Coach while the formal name of his business is Spectrum Location Solutions. Joe helps companies find great locations in which to grow.