Wednesday, December 11, 2013

Governor "Patty boy" McCrory Ain't Got No Plan

In case you haven't heard, North Carolina Governor Pat McCrory is going around touting a "plan" for bringing an automaker to the Piedmont Triad and all of Greensboro's economic development "gurus" are jumping on the band wagon. Problem is: McCrory's only plan is to build empty industrial parks called megasites.

Among the problems with McCrory's "plan" is the fact that no automaker anywhere in the world has announced intentions to build new plants anywhere in the United States of America. As a matter of fact: even American automakers are announcing intentions to build new plants in India, China, Asia and Mexico.

You see, there exists in the US today more than enough empty auto plants to build all the cars Americans can buy and most North American auto manufacturing is moving to Mexico-- not North Carolina. And building cars for export? Absolute insanity when you consider the cost of American labor vs. foreign labor with shipping cost added in. And remember: those foreign countries play the incentives game every bit as well, if not better, than we do. From the Brookings Institute: 

"Mexico has gone on a tear and increased its share of North American automotive employment by over 50 percent. Since 2010 employment in Mexico’s auto sector has grown at an average rate of 13.7 percent a year. Soon Mexico will account for more than half of North America’s auto manufacturing."

And from the same report:

"In the future, no U.S. state is going to be able to depend solely on low wages as its chief source of comparative advantage. This is of particular concern to Southern states which, in the past, have leveraged low wage structures to increase their share of the continent’s auto sector. Now, that may need to change. Over the coming decade Southern states will be challenged by, on the one hand, Midwestern states that have roared out of the recession with leaner production platforms and more efficient wage and cost structures, and, on the other hand, by an increasingly sophisticated Mexican automotive sector that continues to grow at a breakneck pace and maintains substantial and sustainable wage advantage."


To add insult to injury, if you'll do a bit of research you'll find that every autoplant has a steelmill nearby. There are no steel mills in the Piedmont Triad. If Pat McCrory had a real plan to bring auto manufacturing to the Piedmont Triad he's be touting that steel mill he brought us. Where's the steel mill, Patty boy? From the same Brookings Institute report I cited above:

"Our suggestion: Foster the excellence of local supply chain coordination, cultivate a stellar workforce, and ramp up technology development. These are going to be the new determinants of local advantage in a changing auto sector."

Proves my point, the steel mills and other factories must come first. McCrory isn't talking about that because he has no plan to bring them here preferring instead to put the cart in front of the horse. That's how it happened in every location where auto manufacturing is located throughout the South, North and Midwest. Well guess what, Patty boy, pushing a rope is easy work but it don't accomplish a damned thing.

Now you can say whatever you like about everything else Governor McCrory has done while in office, I'll not comment, but when it comes to economic development McCrory is just another Patsy of TREBIC and the rest of North Carolina's and the nation's powerful real estate development lobby.

Not that it's a good deal-- it isn't-- but haven't you wondered why Patty boy, who is so quick to jump on the automaker bandwagon, is taking a pass on the Boeing deal? Simple really, besides the fact that Greensboro and Charlotte don't have sea ports (not a requirement set in stone) most of the required infrastructure, roads, runways, water, sewer, etc, is already built. There's almost nothing for the developers to do except perhaps a couple of bridges and a few buildings. But in the case of "attracting" an automaker, McCrory is planning multiple 2000 acre megasites right here in the Piedmont Triad, one between Gibsonville and Burlington and the other in northern Randolph county.

The cost of water and sewer alone for the 2 megasites McCrory is promoting will cost Greensboro taxpayers $103 Million Dollars plus cost overruns. And both sites are 20 miles outside of the Greensboro City Limits far from where the jobs are needed most. If McCrory's plan were to somehow susceed it would cause an exodus of taxpayers moving away from Greensboro to live closer to their jobs and devistate the city's tax structure leaving the rest of us to foot the bills. Believe what you like but people are not going to continue long commutes forever-- not when they have better options, better neighborhoods and better schools closer to where they work. Investing in megasites in areas that cannot be annexed is economic suicide for the City of Greensboro. And neither of these locations can be annexed by Greensboro.

Never mind that North Carolina already has 12 completed and empty megasites or that DH Griffin will soon be opening 2 privately owned megasites near Siler City and Ridgeway (Martinsville) Virginia to compete with these taxpayer funded megasites and another 500 acre site not 5 miles from the Project Haystack site near Gibsonville, Patty boy is set to go full steam ahead. Never mind that nationwide there are 180 completed and empty megasites, Patty boy is bought and paid for by real estate developers, construction contractors, utility contractors, paving companies and the like who, like real estate developers, construction contractors, utility contractors, and paving companies nationwide continue to perpetuate the biggest scam ever pulled over on American taxpayers in the history of these united states.

And never mind that Florida has already proved that Governor McCrory ain't got no plan, having persued the exact same "plan" Patty boy plans to bankrupt Greensboro and the Piedmont Triad anyway:

"Scott has pledged $266 million in tax breaks and other incentives in return for 45,258 new jobs. But 96 percent of the jobs have yet to materialize..."

There's something to be learned from the failure of others and the first thing is not to repeat their mistakes. That is: unless that's your intention in the first place. Is that you "plan" Patty boy?

Update: As if I needed more proof, GM, Ford and Toyota are closing auto plants in Australia to move to countries with cheaper labor. Patty boy is selling us a lie.