Let’s Get It Together, Team California : Alabama does everything but require German in schools to get Mercedes-Benz
Site search. It’s a game that companies play, shopping from state to state for the best deal for locating a new plant or facility. Putting states in play as potential sites is getting to be a slick and sophisticated endeavor. Is California a player? Just barely.
Certainly the state is new at peddling its wares. Before the federal government’s huge drawdown in defense, California never had to work very hard at getting new business. Those days are gone. In February the state Trade and Commerce Agency launched “Team California,” a collaborative state and local program to put economic development efforts on a par with those of other states.
It’s no mere happenstance that other states have succeeded in luring away many cost-conscious California companies. Some states tailor polished presentations and generous incentives to the whims and interests of those corporate executives who make the final decisions.
Take the hot affair between Alabama and Mercedes-Benz. Several states wooed the German auto maker over two years for its first U.S. auto plant. Even California made preliminary inquiries before it became apparent that Mercedes was not interested in a western U.S. site. To win the $300-million assembly plant, which will make sport utility vehicles, Alabama offered a record $250-million incentive package.
Aggressive marketing pays off. Team California helped to persuade Intel to expand at two California sites. The state, San Diego County and Carlsbad are now trying to induce the Danish toy company, Lego, to build its first U.S. theme park near that city.
The California Legislature removed some of the obstacles to attracting business when it reformed workers’ compensation, streamlined permit procedures and provided tax credits for machine and equipment purchases. The state, however, is playing catch-up.
Restrictions of all sorts--elaborate incentive packages are prohibited--apply to efforts by the state and local governments. Thus private-sector assistance--and real teamwork--is needed to help pitch California. At stake is the state’s economic future.
