Big Deals in "Big D"
In
the cities surrounding Dallas, company decision-makers have been
influenced by such issues as logistics and quality of life. Sanyo
Energy (USA) Corporation, manufacturer of rechargeable batteries and
solar cells, moved its headquarters to Frisco in fall of 2006. Andrew
Sirjord, the company vice president, says the division had been
headquartered from 1987 to 2006 in San Diego, California. "Since a
significant portion of our revenue was generated east of the
Mississippi, we decided that we needed to get closer to our customer
base in Central or Eastern time zones," he says. In addition, state
corporate income tax rates, costs of living, costs of doing business,
and educational availability were prime factors. "The Dallas area had a
strong wage level and low cost of living, so our employees were able to
buy a lot more for their dollar when they moved here," he says. "I've
been told [by employees with school-age children] that the school
system and level of education provided here was a benefit that has
wowed our employees."
The city of Denton reports diverse economic
development activity. Aircraft maintenance and service company Jet
Works Air Center is doubling its hangar and office space at the Denton
Airport and adding up to 60 aircraft technicians to its existing staff
of 132 people. The privately owned, 13-year-old company is the sole
completion center for the Italian corporate aircraft manufacturer
Piaggio. The company has leased land on which to build a
45,000-square-foot facility that will include 32,000 square feet of
hangar space, with the remainder earmarked for offices and back-shop
activities.
Aldi Inc., a discount grocer, is planning what is
expected to become Denton's largest distribution center within the next
few years. The company purchased a 185-acre tract near the Denton
Municipal Airport for the estimated $40 million, 500,000-square-foot
center that will support 25 stores in the Dallas-Fort Worth area. The
site's advantages include proximity to Interstate 35 North with easy
access to Dallas, Fort Worth, and Oklahoma City. Also in Denton,
jewelry manufacturer Jostens' is completing a 13,000-square-foot
expansion to its facility that will result in the addition of
approximately 175 new jobs to the current 290-employee base, which
increases by approximately 200 seasonal and temporary workers during
the fall peak season.
Insurance company Torchmark Corporation's
long history in McKinney began 14 years ago in 1995, when its
Dallas-based subsidiary outgrew its space. "We wanted to relocate that
subsidiary," says Mark McAndrew, chair and CEO. "We were leaning toward
Oklahoma City, where we already had ample office space, but the city of
McKinney really made us a nice offer of incentives." That deal resulted
in the construction of a 150,000-square-foot office building. More
recently, an incentives package from the state and the city facilitated
another 150,000-square-foot expansion for the relocation of the
corporate headquarters from Birmingham, Alabama, and consolidation of
data center functions from Waco, Texas, as well as Oklahoma City and
Birmingham.
McAndrew says McKinney's location on the edge of the
Dallas metro area encourages employee recruitment from outlying areas.
He also notes that the cost of labor and business is much less than
other places with a concentration of insurance companies. "Much of our
competition is based in New York and Connecticut," he says. "When I
look at their expenses, our expense ratio is about half. By locating
here, we can be competitive in the marketplace but still have a very
acceptable profit margin in our products."
In Irving, Chris
Wallace, president of the Greater Irving-Las Colinas Chamber of
Commerce, notes that over the last eight months, technology, energy,
oil and gas have been very successful sectors, with eight new,
expanded, or retained technology companies and five new or expanded
energy companies. Projects include TXU Energy, which added
approximately 850 employees at its new 247,000-square-foot
headquarters; OptimEnergy's new 61,339-square-foot office, with 245 new
hires; and 167 jobs with Pioneer Natural Resources' 293,000-square-foot
expansion.
One of the secrets to Irving's recruitment success
is the proximity to Dallas-Fort Worth Airport. Irving is also home to
the Las Colinas Development, a master-planned community replete with
corporate tenants, including 32 Fortune 500 companies and the global
headquarters of Exxon Mobil, Fluor Corporation, Kimberly-Clark, and
Commercial Metals. "We lean on our already established companies to
help us attract others," says Wallace. Accessibility, one of the area's
selling points, will become even more convenient when a light rail
system, currently under construction and slated for a December 2011
completion, connects Las Colinas to the airport and downtown Dallas.
Attention
to "speed-to-market" details has garnered the attention of the city's
larger clients who need quick and efficient transitions into their new
facilities. "We were able to recruit Fluor from southern California to
Irving three years ago," says Wallace. "They wanted their building
finished in eight months from an empty piece of land; ground to
move-in. All of the directors that impacted the project were called
around the table at once - the transportation, permitting, building
inspector, water guys, the fire marshal, anyone involved with planning,
grading, building, or move-in." He says gathering the principals
together created a streamlined process that continues today.
