Luxury electric carmaker Tesla this week acquired a small, Minnesota-based factory automation company, in hopes of fixing unexpected bottlenecks on its Model 3 production line. Perbix launched in 1976 and employs 150 people in a suburb north of Minneapolis. Tesla said it’s worked with the engineering firm for nearly three years, on a number of projects on the production line at its Fremont car factory and its Gigafactory in Reno. Terms of the deal were not immediately released.
Virtual Guard Inc. will receive about $251,505 in tax abatements and is estimated to generate about $17.1 million in new tax revenue over 10 years. Virtual Guard is a video monitoring company, which plans to relocate its headquarters from Los Angeles, California to a location in Clark County as early as later this year, citing an “unfriendly economic environment” in California in its tax abatement application. The company plans to hire 80 new employees within its first two years of operations, making an average hourly wage of $22.31. The company plans to rent or buy an existing facility, ranging from 5,000 to 10,000 square feet depending on whether the space is leased or bought. Virtual Guard is slated to make a capital investment of just under $356,000, according to its tax abatement application. . . . ERG Aerospace Corp. will receive about $330,288 in tax abatements and is estimated to generate about $3.2 million in new tax revenue over 10 years. The company, researches, designs, develops and manufactures materials and components for the aerospace, national defense, semiconductor manufacturing, biotech, and other high technology industries. ERG currently has facilities in Oakland, California, and Sparks. The company plans to relocate its current operations in Oakland, California, to Nevada and subsequently make Nevada its headquarters. The company plans to invest over $2.1 million in capital equipment for their new facility, and plans to hire 13 employees during their first year of operations at an average wage of $30.92 per hour.
Charles Schwab is emblematic. Since announcing its relocation strategy in early 2013, the company has shrunk its San Francisco headquarters to fewer than 1,300 people, a 45% decrease. Its 47-acre campus south of Denver is now Schwab’s largest office, employing almost 4,000 people. An expanded office in Austin, Texas, will be completed next year, and construction is under way on a new location near Dallas.
. . . While the finance industry has been relocating entry-level jobs since the late 1980s, today’s moves are claiming higher-paid jobs in human resources, compliance and asset management, chipping away at New York City’s middle class, said Kathryn Wylde, president and chief executive of the Partnership for New York City, a nonprofit that represents the city’s business leadership.
Meanwhile, Sacramento’s Aerojet puts its projected annual savings at $230 million for simply leaving California.
It was good of Aerojet to release this number. Expect only platitudes from others. For example, being in Texas will allow Kubota to respond “more quickly” to market changes and “streamline its operations for both dealer and consumer benefit.”
The company [SOLiD] moved into the Sunnyvale space just four years ago, excitedly touting the space then as its new U.S. headquarters and a place to grow. In an interview, an executive cites the Bay Area's expensive real estate as one reason for the move to Texas.