US Freedom Capital Blog

1,800 companies left California in a year — with most bound for Texas

Posted by USFC Team on Dec 18, 2018 5:50:52 AM

A record number of companies are leaving California for states with a better business climate, and a new report shows that Texas remains their No. 1 destination.

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Topics: California, Texas, Business, Relocation, Headquarters, D-FW, Bay Area, San Francisco

Relocating companies want 'business-friendly' states, but what does that mean?

Posted by USFC Team on Dec 18, 2018 5:31:40 AM

Texas typically ranks highly in listings of the best states for business. But what factors play into a business-friendly climate, and what states offer the most competition for Texas in the battle for corporate expansions and headquarters relocations?

Site selectors weighed in on that topic among the many discussed at the Dallas Business Journal’s NTX HQ Corporate Relocation Summit held Nov. 5 in Irving.

Brian Corde, co-founder and managing partner of New Jersey-based site selection firm Atlas Insight LLC, said many companies zoom in on right-to-work states and also focus on the ease in which they can get things such as permitting through the government.

“Regulatory environment, setting up a good quality of place, good educational environment, places where people can graduate and then walk back to and live — I think those are the things that keep Texas strong in those rankings,” Corde said.

State and local governments will go to great lengths to cut through red tape for companies.

For example, in an incentive package for Amazon’s HQ2 project, the city of Dallas offered to create a concierge municipal department called the “Amazon Go Team” to expedite and prioritize all things Amazon.

“The 'Amazon Go Team' will be your friends at city hall, reachable by cell phone, obsessed with customer service, and ready to assist with any issue,” the city’s missive to Amazon said.  “A permit is being held up? Got a zoning issue? Need to know where to get the best barbecue in town? Call the Go Team.”

Seattle-based Amazon (Nasdaq: AMZN) initially said its HQ2 project would have 50,000 jobs and $5 billion in investment. The e-retail and tech giant ultimately split its HQ2 between New York City and the Washington, D.C. area.

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Topics: Texas, Dallas, Austin, D-FW, Business, economy, Business Friendly

Will McKesson’s departure trigger a stampede from California

Posted by USFC Team on Dec 18, 2018 4:54:35 AM

McKesson’s decision last week to move its headquarters from San Francisco to North Texas raises the prospect that more companies could decide it’s time to move to lower-cost, lower-tax cities.

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Topics: McKesson's, Bay Area, Texas, Growth, California, Headquarters, D-FW

$3B company relocating HQ from California to North Texas

Posted by USFC Team on Dec 17, 2018 5:22:47 AM

A global medical technologies company is relocating its corporate headquarters from California to North Texas.

The latest in a steady stream of moves from California to Texas, DJO plans to move its operations from San Diego to Lewisville within the first few months of 2019, according to a release.

The corporate office will be located at 2900 Lake Vista Drive.

The company provides products that assist in injury prevention, rehabilitation and more. DJO's product lines include orthopedic bracing, hot and cold therapy, therapeutic shoes and inserts and compression garments, among others.

DJO, which recorded $1.2 billion in sales in a recent 12-month period, said that the move will create hundreds of new job opportunities in the region. The company already employs 200 at a new distribution center in Fort Worth that opened a few months ago.

DJO President and Chief Executive Officer Brady Shirley said the company made the decision to move to the region due to its "strong and larger" talent pool, more efficient access to customers, and to take advantage of Texas' "better" corporate environment.

This relocation comes less than a month after the company announced it was changing ownership. On Nov. 19, Colfax Corporation (NYSE: CFX) said it had entered into an agreement to acquire DJO from Blackstone in a $3.15 billion all-cash deal.

The Maryland-based company, which specializes in technology that provides air and gas handling and fabrication products and services, said the move reflected Colfax's intent to diversify its portfolio at the time of the deal's announcement.

"We see significant opportunities to apply our proven Colfax Business System across DJO to create a continuous improvement culture, further improve productivity and margins, and accelerate innovation and new product development," said Matt Trerotola, president and CEO of Colfax, in the release.

DJO's Bracing and Supports and Consumer units will remain in San Diego. It had EBITDA of $269 million for the twelve-month period ending September 2018. 

DJO is following a Fortune 500 health care giant into Texas.

Two weeks ago, McKesson Corp. (NYSE: MCK) announced plans to move its global headquarters from San Francisco to Las Colinas.

"Making this move will improve efficiency, collaboration and cost-competitiveness, while providing an exceptional work environment for our employees," John H. Hammergren, McKesson’s chairman and CEO, said in a prepared statement.

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Topics: Texas, Dallas, jobs, Employment, economy, Growth

Investment Outlook: December 2018

Posted by David Gunderson on Dec 6, 2018 12:06:51 PM

US Freedom Capital
Investment Outlook
December 2018

From: David Gunderson, Chief Investment Officer

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Topics: Dallas, Texas, Investment, USD, real estate, Hedge, volatility

Dallas-Fort Worth economy remains strong & continues to grow!

Posted by USFC Team on Jul 31, 2018 1:32:01 AM

The Dallas–Fort Worth economy continues to expand. The June jobs report indicated employment growth moderated, with DFW adding jobs at the slowest pace so far this year. Overall, the DFW economy remains strong, with 3.2 percent annualized job growth year to date. The unemployment rate ticked up in Fort Worth but remained flat in Dallas. Business-cycle indexes for both metros pointed to continued expansion. Home sales growth has been essentially flat in the first half of 2018, and inventory has ticked up but remains tight.

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Topics: Dallas, Texas, economy, Employment

Texas to pass Iraq and Iran as world's No. 3 oil powerhouse

Posted by USFC Team on Jul 18, 2018 11:23:06 PM

Don't mess with Texas. It's a global oil superpower.

The shale oil boom has brought a gold rush mentality to the Lone Star State, which is home to not one but two massive oilfields.

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Topics: Texas, Oil, Superpower, OPEC, Employment, Job, Labour

Dallas–Fort Worth economy expands at a torrid pace, 55000 new jobs added this year!

Posted by USFC Team on Jun 26, 2018 6:17:28 AM

The Dallas–Fort Worth economy continued to expand at a torrid pace. The May jobs report showed the metro area growing at a 3.7 percent annualized rate in the first five months of the year, adding a total of 55,500 net new jobs. The unemployment rate remained near record lows, and the Dallas and Fort Worth business-cycle indexes posted above-trend growth. Home-price appreciation moderated in Dallas in the first quarter but stayed strong in Fort Worth. Housing affordability improved slightly in the first quarter but was lower in Dallas relative to other major Texas metros as well as the U.S.

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Topics: Dallas, Texas, economy, jobs, Employment, housing, real estate

Upbeat real estate execs in D-FW are more bullish on 2018

Posted by USFC Team on Apr 24, 2018 3:31:27 AM

Commercial real estate execs are traditionally an upbeat bunch.

The latest read on the industry's mood forecasts another strong year in 2018 -- even better than previously expected six months ago.

Commercial real estate execs credit the federal tax cuts, which benefit many companies and high net worth investors with helping to boost their attitudes about the rest of this year.

The Urban Land Institute surveyed four dozen of the commercial property sector's top economists and analysts for its semi annual economic forecast. 

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Topics: real estate, Dallas, Texas

Proposed corporate tax hike in California could drive more businesses to Texas

Posted by USFC Team on Apr 24, 2018 2:58:39 AM

An attempt by California politicians to raise the state’s corporate income tax rate will drive more businesses from the Golden State to Dallas-Fort Worth and other locales with similarly business-friendly laws and policies, a top site selection consultant and researcher predicts.

“I’ve got to tell you this has just caused an uproar out here,” Joseph Vranich, president of Irvine, California-based Spectrum Location Solutions, told the Dallas Business Journal in an interview Monday. “If anything is representative of cruel and oppressive treatment, this has reached new levels.”

Vranich was referring to an attempt led by Democratic State Assembly members in California to raise the state’s business taxes in response to President Trump’s federal tax overhaul.

The measure would more than double the state’s corporate income tax rate, giving California the nation’s highest rate of 18.84 percent, up from the current rate of 8.84 percent. The legislators who sponsored the California amendment characterized it as “middle class tax justice” and argued that, given federal cuts in the corporate tax rates, businesses could afford to pay more in California taxes.

The proposed California rate would be three times the current median rate nationwide. It would raise corporate taxes on California companies with revenues higher than $1 million. The state tax hike would be for an amount equivalent to half what they received from the federal tax cut.

Vranich in November 2015 released research indicating roughly 9,000 California companies moved their headquarters or diverted projects to out-of-state locations in the prior seven years, and most of those went to Texas.

Vranich said he hasn’t updated the number of California move-outs since the 2015 report, but he senses growing dissatisfaction in the phone calls he gets from companies considering a move.

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Topics: Taxes, Texas, Corporate Tax, California

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