Maybe The Greensboro-Randolph Megasite Isn't About Attracting Automakers At All

Those who might be reading for the first time or come from somewhere far away may have never heard of a project known as the Greensboro-Randolph Megasite-- a 2,000 acre industrial park being built roughly 20 miles south of Greensboro, North Carolina on the Guilford and Randolph County lines and bordering the town of Liberty, NC.

The project, which is being pitched as a means to lure an automaker to North Carolina, is being funded with roughly $24 Million Dollars from the City of Greensboro, $13 Million from the State owned North Carolina Railroad, $200 Million from the State of North Carolina plus contributions from Guilford County, Randolph County, the City of Asheboro and other local municipalities.

Or as the Greensboro News & Record put it:

"Economic developers estimate construction costs would be upward of $100 million, and that’s not including incentives a company might demand from the state."

But what if, what if this megasite isn't about building cars at all. What if the Greensboro-Randolph Megasite is being built as a major military weapons manufacturing facility instead?

Sound far fetched? What if I told you that the largest petroleum storage facility east of the Mississippi River is located in Greensboro? It is, you know.

Fort Bragg, one of the largest military installations in the world and home of the US Army airborne forces and Special Forces, as well as U.S. Army Forces Command, U.S. Army Reserve Command and Womack Army Medical Center is only 67 miles away via what will soon be all improved 4 lane highway comparable to any Interstate highway in the nation.

Pope Air Force Base is adjacent to Bragg and with the news that Special Ops are getting increased funding while other bases are getting cuts and shut downs it doesn't look as if Bragg is going anywhere anytime soon. And while the Air Force is cutting back on operations at Pope, the air base must remain open as it is used for Army troop transport.

Walmart is closing stores across the country and all over North Carolina but Walmart is quickly adding new stores all around the Fort Bragg area as if they are expecting a huge increase in population the rest of us don't know about.

Purolator Facet in Greensboro and often touted as a major success in economic development by our local economic development agencies and politicians, manufactures OEM parts, filters and valves, for the Air Force's 400 Eisenhower-era KC-135 aircraft, M1 Abrams Tanks, Russian Tanks, Trident Nuclear Submarines, Apache Helicopters and many more.

General Dynamics Missions Systems has 2 plants in Greensboro.

Curtiss-Wright Flight Systems has a plant in Shelby and another in Gastonia where they make all sorts of military hardware.

Blackwater is headquartered in North Carolina.

Dick Cheny's Halliburton has a presence in North Carolina.

Allegheny Technologies in nearby Monroe  "is a world leader in the production of nickel-based and cobalt-based superalloys, titanium-based alloys, and specialty steels for the aerospace, oil & gas..." well you get the picture. The picture above an F-35 I snagged from their website.

North Carolina has a total of 114,654 active duty military personnel and 22,030 civilian military personnel. Only Virginia, Texas and California have more active duty military personnel than North Carolina. If you were a governor of a state that ranked high in active duty military and wanted to keep them in your state, how might you do it? One way might be to lure more military contractors and key military component manufacturers to your state.

Of the Ten Companies Profiting Most from War,

United Technologies has plants in Mebane and Charlotte.  Its Pratt & Whitney division has plants in Mooresville, Charlotte and Goldsboro. And UT operates Sikorsky Aircraft plants in Jacksonville and Cherry Point.

L-3 Communication, the 9th most profitable war contractor has no less than 4 plants in North Carolina.

Finmeccanica, number 8 on the list has plants in North Carolina.

I couldn't find that number 7, EADS, has any North Carolina plants but I did find third party companies who supply parts for EADS.

Raytheon, #6 and "the world’s largest manufacturer of guided missiles" has plants in Raleigh and Fayettville.

And don't forget that for every one of these companies there are dozens of smaller manufacturers making parts for the machines and weapons these companies send to war.

I mentioned General Dynamics earlier. They're #5 on the list.  "Currently, 74% of the company’s sales are arms sales. General Dynamics owns Electric Boat and Bath Iron Works, two of the largest naval vessel builders in the world. General Dynamics is notable known for its Ohio-class ballistic missile submarine, the Seawolf-class submarine, the M1 Abrams tank and the Arleigh-Burke-class destroyer."

General Dynamics has no less than 8 plants in North Carolina.

Northrop Grumman #4 on the list and "...the fourth-largest weapons contractor in the U.S." has no less than 5 North Carolina facilities. Aircraft carriers and drones are their thing.

As far as I can ascertain, Boeing, at #3, doesn't have any manufacturing facilities in North Carolina but they do employ people in military analyst positions here in the state.

The #2 company on the list of the Ten Companies Profiting Most from War, BAE Systems, has no less than 4 plants in North Carolina.

Finally, Lockheed Martin, the #1 "...largest arms-producing and military services company in the world..." has no less than 4 plants in North Carolina.

And from The Economic Impact of the Military on North Carolina by the North Carolina Department of Commerce.

"The military supports 540,000 jobs in North Carolina, $30 billion in state personal income, and $48 billion in gross state product.

 340,000 of military-supported jobs occur in the private sector.

Professional and Technical Services, Administrative and Waste Services, and Construction are the top three military-supported private industry sectors."

As our economy continues to become more and more dependent on military spending, drafting women into military service again becomes a topic of political discourse: We're already hearing it in the Presidential debates. Only a barbaric nation builds an economy dependent on the constant invasion of other nations-- the draft, be it of men or women, is but a consequence of said policy.

Is North Carolina building an economy that will someday force the United States Military to draft women?



Update: Friday Feburary 12, 2016, I have just learned that  Bonnie Renfro of the Randolph County Economic Development Corporation has pushed Randolph County Commissioners to include weapons manufacturing as part of the description of the land use requirements for a recent rezoning of properties within the Greensboro-Randolph Megasite. Don't want your daughters to go to war? Stop this megasite.

So You Still Think The Greensboro-Randolph Megasite Might Still Attract An Automaker?

No if Obama and the majority in Congress have their say. From today's Wall Street Journal, stolen in its entirety:

"Car States Balk at Trade Pact

Opponents say president’s push could cost jobs and not result in a more open Japanese market

By 

WILLIAM MAULDIN

May 18, 2015 6:22 p.m. ET

9 COMMENTS

President Barack Obama’s Pacific trade agreement is raising alarms not only in Michigan and surrounding states dominated by Detroit’s Big Three, but also farther south where backers of Japanese car makers worry about the fate of current and future plants in the region.

The proposed Trans-Pacific Partnership among the U.S. and 11 other countries would lower tariffs on imported cars from Japan as part of a much broader agreement to cut trade barriers and abide by a set of shared commercial rules. At the same time, the U.S. could agree to reduce or eliminate its import tariffs on cars, trucks and parts in 10 years or less.

ENLARGE

While most U.S. industries are unlikely to notice much difference under the TPP, the auto sector is set to see a tangible impact. In the transportation sector, led by cars, the TPP could boost imports by an extra $30.8 billion by 2025, compared with an exports gain of $7.8 billion,according to a study co-written by Peter Petri,professor of international finance at Brandeis University.

“The tariff cuts would help Japan, but 10-plus years is a long time in a dynamic industry,” Mr. Petri said. The auto makers “are looking beyond the TPP, at tough global competition around the bend” in China and other Asian countries.

Disappointed that Japan joined the Pacific talks, the Detroit-centered auto industry is pushing to get as much possible in the deal, even if that means seeing it defeated in Congress. With the dollar’s rise eating into profits, Ford Motor Co. is pressing allies in Congress to include rules cracking down on potential currency manipulation in Japan.

At the same time, unions and lawmakers wary of lowering trade barriers warn the TPP could reduce the appeal of U.S. operations for Japanese producers, which currently avoid a small but significant tariff on cars produced and sold in the U.S.

“In truth, if you eliminate the 2.5% tariffs on imported automobiles, that might reduce the desirability of a foreign country to invest and build a plant in the United States,” Sen. Jeff Sessions (R., Ala.) said in an interview last week. “When they decide to build a plant in the state, they consider a lot of things.”

Because of the foreign car investments in his state and other factors, Mr. Sessions says he may join a small group of Republicans expected to vote against so-called fast-track trade legislation, a procedural measure that would allow the Pacific trade deal to get an up-or-down vote in Congress without amendments.

The White House is seeking the legislation to help conclude the TPP talks and ensure a timely vote on the deal.

Mr. Obama has brushed aside static from Detroit and other defenders of the car makers, promising in an interview last month with The Wall Street Journal “to show that it is a good deal for them.” Indeed, the U.S. is seeking to lower regulatory and other barriers Detroit faces in Japan’s car market as part of the broad trade pact.

But while opponents in Detroit would welcome improved access to Japan and other Asia-Pacific markets, they fear currency manipulation could undermine any benefits. Ford and other Detroit producers want Congress to enact rules to deter currency manipulation, backed by the threat of trade sanctions.

Rep. Sander Levin, a Michigan Democrat who has emerged as one of the top critics of Mr. Obama’s trade policy, is calling for the tariff to be cut in 25 years and phased out over 30 years if Detroit doesn’t gain a foothold in the Japanese car market. Many observers say the deal may erase the duties in 10 years, with potential reductions in auto-parts tariffs sooner. Cutting the main duty on cars could save Japanese producers $1 billion a year.

Mr. Petri, the Brandeis trade expert, said car imports would see less of a jump in that period if the U.S. tariff cut is delayed.

ENLARGE

Some lawmakers and backers of Japanese car makers operating in the U.S. fear the president’s free-trade push could hurt the economics of producing cars in the U.S., at little benefit to the Big Three. Here, a Toyota plant in Blue Springs, Miss., earlier this year.PHOTO: ROGELIO V. SOLIS/ASSOCIATED PRESS

But Mr. Levin—like Sen. Rob Portman, an Ohio Republican who previously served as U.S. trade representative, and many other lawmakers—is backing strong versions of currency rules that the Obama administration and other trading partners oppose. Sen. Debbie Stabenow, another Michigan Democrat, has warned about cutting auto part tariffs, and Sen. Sherrod Brown (D., Ohio) is one of the biggest critics of Mr. Obama’s trade policy over workers’ issues, especially in steel and manufacturing.

“Japan’s one-way street in the automotive industry has cost U.S. jobs for decades,” Mr. Levin said. “Any reductions in the U.S. tariff on Japanese autos and trucks must be tied effectively into the opening of their long-closed markets.”

Many backers of freer trade—including the Japanese auto giants that produce many cars in North America—dismiss the concerns of Detroit and politicians in the region as outdated protectionism. Cutting car duties could benefit consumers through lower sticker prices, they say.

“Because this is a free-trade agreement, we support all auto tariffs in the TPP—cars, parts and trucks—going to zero as soon as possible,” said Ron Bookbinder, the Japan Automobile Manufacturers Association’s U.S. director.

Trade agreements can also lure more investment from companies that want to sell to the broader trade bloc. “In our experience, auto companies invest in Tennessee and elsewhere in the country because of our vibrant market and skilled workforce, and lowering trade barriers would lead to an increase in auto manufacturers in the United States,” said Sen. Bob Corker (R., Tenn.).

Observers say Japan’s auto makers have invested heavily in the U.S. and aren’t likely to move based on the TPP. “There are huge fixed investment costs and firms can’t just pick up and move with every exchange-rate fluctuation or tariff change,” said Douglas Irwin, trade expert and economics professor at Dartmouth College.

Those assurances may not be enough for labor unions and allied Democratic lawmakers worried about the TPP’s effect on Japanese producers in the U.S.

“The reason they came here is because they had to,” said Glenn Johnson, head of local 1112 of the United Auto Workers, which runs the General Motors Co. plant in Lordstown, Ohio. UAW members operate plants that supply Asian producers. “We don’t know what the trickle-down effect could be” if the U.S. tariffs are removed, he said.

Write to William Mauldin at william.mauldin@wsj.com  "

That's right, as Glenn Johnson of Local 1112 is quoted, "...they came here because they had to." Foreign car companies be they Japanese, European or otherwise would all choose to import if that were the cheaper option and with trade deals like the Trans-Pacific Partnership being put together in Washington a megasite in every county in North Carolina still won't bring them here.

Nor will incentive packages unless the packages are designed to pay per every car sold-- something no state can afford to do.

Volvo Isn't Coming To The Greensboro-Randolph Megasite

It's official, just as the Greensboro Partnership announced they have hired the top two men from Mississippi's economic development agency-- the state ranked dead last in economic development-- Volvo announces they aren't coming to North Carolina:

"The Reuters news agency reported April 17 that sources identified South Carolina but did not name the second state.

The Atlanta Journal-Constitution reported on Monday that Georgia is the second state."

Our city is run by morons. Our economic development agencies are run by morons who just hired two morons from the least successful state in the nation. And yet they still plant to spend over $200 Million Dollars in state and local tax dollars to develop a megasite for an automaker that isn't coming here.

In the meantime Madam Mayor Nancy Barakat Vaughan refuses to answer my e-mails concerning Bessemer Aquaponics while over 23% of Greensboro's population lives in poverty:

"77% growth in poor population

65,798 — Poor population in 2000

116,501 — Poor population average from 2008-2012

The percentage of poor people living in Greensboro — home of several universities including Guilford College and a branch of the University of North Carolina — is nearly 19%, higher than both the state and overall U.S. level.

The city and its surrounding areas are part of the 12th Congressional district, which saw the nation’s biggest increase in suburban poor people between 2000 and 2011, according to a previous Brookings Institution report that the Raleigh News & Record reported on last year.

Based on a Brookings report comparing 2008–2012 to 2000."

Read more: http://www.businessinsider.com/cities-poverty-soaring-2014-8?op=1#ixzz3Xwvx0JEi

And Greensboro is ranked #1 in the nation for food insecurity-- the politically correct way of saying hunger in America.

Re: Bessemer Aquaponics And The California Drought

The North Carolina Agricultural Extension Service has 20 plus empty acres next door to the Agricultural Extension Center that has been vacant and county owned for 40 plus years. The Ag Service has agreed to work with Bessemer Aquaponics to bring an Aquaponics institution to Greensboro to address hunger, food deserts and unemployment in Greensboro, the Piedmont Triad and North Carolina.

For 2 years my efforts to make Greensboro a world leader in Aquaponics and a major exporter of organic foods has been completely ignored by Mayor Vaughan and the Greensboro City Council. That includes Tony Wilkins who is talking shit in this Facebook thread.

"This is NOT the list we want to be on top of. Combined with having the highest property tax rate among major cities in NC. What are we doing?
"Gonna change my way of thinking, get myself a different set of rules"...Bob Dylan
http://frac.org/pdf/food_hardship_2014.pdf"

I can provide evidence to the media upon request.

Yesterday it was made public that Greensboro is the hungriest city in America. This was no surprise to regular readers as I've been writing about this since we were ranked #4 over 2 years ago.

Previously I posted No Backroom Dealings For Bessemer Aquaponics and  Bessemer Aquaponics And The California Drought, Today I give you the e-mail I sent to Mayor Vaughan and all of City Council and others just yesterday:

"Mayor Vaughan,
It's in your lap, Mayor Vaughan. I'm showing you the only way out: http://triad-city-beat.com/greensboro-high-point-metro-area-tops-food-hardship-ranking/

Otherwise you're going to have to start City welfare and pass out money on the streets. Keep ignoring me if you like but this problem isn't going away and by the time I meet with Ms Neill Greensboro is going to be enraged that you have spent the last year talking about this while getting nothing done when I brought this problem and the solutions to your attention BEFORE you were elected mayor.

Now do we fix it or continue to play real estate development games?

Ms Neill,

My apologies, I realize you and your staff at the agricultural extension service do the best you can do to promote NC agriculture and that you would jump at the chance to put the 20 acres you have to use to feed Greensboro and promote Modern Aquaponics-- a science that was developed at North Carolina taxpayers expense and proven effective at NC State University 30 plus years ago. And I realize the last thing you want to do is get involved in local politics but Dammit people are starving in Greensboro and for Greensboro and Guilford County to deliberately ignore this problem when it could so easily be solved is tantamount to our politicians leading our people to slaughter-- It cannot be tolerated.

That's why I publish these e-mails to my blog at http://www.ezgreensboro.com

Senator Wade, Representative Harrison and Commissioner Conrad,
That's also why I've included you in this thread. We are now in a state of emergency. Being the hungriest city in America during a down economy is a problem that cannot be ignored.Mayor Vaughan and the City Council have had well over a year to fight this problem. Not only has it gotten worse but they can provide no evidence that they have done anything about it other than have meetings and talk about having more meetings. If they do not act immediately it is incumbent on you to act for them.

I've given you the solution, the NC Agricultural Extension Service has the land, NC State has the experts. It doesn't matter if you like me, I don't like you, just do it now come hell or high water.

Thanks

-Billy Jones"

Will our politicians quit kissing the asses of the elites? Will they stop playing stupid reindeer games? Or must we destroy them as they are destroying us-- slowly and painfully. And don't think we can't do it.

Seriously folks, it's not like they didn't already know, Nancy has simply shown she is either inept or doesn't give a damn about the working classes-- you decide.

Like I Said, Toyota Ain't Coming Here

On Friday, April 3, 2015 I posted, Toyota Ain't Coming To The Greensboro-Randolph Megasite as a warning to Greensboro's "leaders" bent on investing over $200 million dollars in state and local taxpayers' money under the guise of attracting an automaker to North Carolina. As if I needed to prove I'm right, from today's Wall Street Journal:

"Toyota to Invest $1.4 Billion to Meet Growing U.S., China Demand

New plant in Mexico to have annual production capacity of around 200,000 vehicles

By 

YOKO KUBOTA in Tokyo And

DUDLEY ALTHAUS in Mexico City

Updated April 15, 2015 12:40 p.m. ET

0 COMMENTS

Toyota Motor Corp. unveiled its first major production expansion plan in three years, outlining a strategy that puts high priority on growth in the U.S. and takes a more measured approach in China.

The Japanese auto maker on Wednesday said it plans to spend around $1 billion for a new plant in Mexico and another $440 million to add a manufacturing line to an existing facility in China.

RELATED

• Toyota to Resume Plant Building (April 3)
• Toyota Unveils Revamped Manufacturing (March 26)
• Trade Pacts Give Mexico an Edge (March 17)

At its proposed Guanajuato, Mexico, factory, Toyota plans to produce around 200,000 Corolla compact cars a year for the North American market starting in 2019, the Japanese auto maker said. Toyota expects to complete its new Chinese line by 2017 at a plant in Guangzhou, targeting production of about 100,000 vehicles a year.

Toyota, the world’s biggest auto maker, is joining the wave of auto makers building assembly plants in Mexico, which has a low-wage workforce and free-trade agreements with dozens of countries.

The move underscores its intent to stay on the offensive in North America, where for the first time since 2009 Toyota is close to supplanting Ford Motor Co. as the No. 2 supplier by volume in the U.S.

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Toyota forecast a record ¥2.7 trillion ($22.6 billion) operating profit for its fiscal year ended March.

In China, the world’s biggest auto market, Toyota’s tack remains cautious. Even if annual production grows by 100,000 vehicles from the current 1 million vehicles, that would still be far from helping Toyota hit its ambitious goal of doubling sales and production to 2 million vehicles in the future.

“In China, Toyota is a follower. We’re trying to catch up to rivals,” a person at Toyota said. “Instead of chasing [sales and production] volume, we want to focus on Toyota-like products to build our position,” the person added. “There is no way that we can compete by suddenly making huge investments to build excessive production facilities.”

In 2014, Toyota’s China sales rose 12.5% to 1.03 million vehicles, and this year Toyota wants to boost that to 1.1 million vehicles. Like other Japanese auto makers, Toyota’s market share in China has slipped in recent years.

Toyota, Nissan Motor Co. and Honda Motor Co. have failed to win back Chinese market share lost after the diplomatic row that broke out between China and Japan in 2012 and boycotts for Japanese products that followed.

In 2014, Toyota held a 4.4% market share, lower than its 4.8% share in 2011.

But some analysts say Toyota’s strategy could be sensible in light of slowing growth in China and intensifying competition over vehicle pricing.

“At a time when China’s getting more complicated in pricing…having less capacity and having a higher utilization rate is actually a smart idea,” said Robin Zhu, an analyst at banker Sanford C. Bernstein. Pricing competition is increasing in the sedan segment, he said.

China on Wednesday reported economic growth for the quarter ended March of 7%, its slowest rate since 2009. Growth of passenger-vehicle sales is expected to slow this year, too.

German’s Volkswagen AG has been gaining on Toyota’s standing as the world’s best-selling auto maker, helped by solid China sales. In 2014, Volkswagen sold around 3.7 million vehicles there and plans to boost annual production in the country to more than 4 million vehicles by 2018.

One sector where Toyota hopes to gain traction in China: gas-electric hybrid vehicles. The maker of the Prius hybrid will start selling this year locally made gas-electric versions of the Corolla and Levin, which it plans to show at the Shanghai International Automobile Industry Exhibition starting next week.

Toyota follows seven Asian and European auto makers that have either recently begun production in Mexico or announced plans to produce there, since late 2013. Auto makers and their suppliers have invested more than $21 billion in Mexico in little more than two years, government officials say.

U.S. auto makers have announced huge investments to expand their own Mexican plants. Ford is expected to outline $2.5 billion in investments for powertrain factories to be built in Mexico—one in Chihuahua and another in Guanajuato. General Motors Co. in December said it was investing some $5 billion in Mexico production through the next few years.

A Hyundai Motor Co. executive told trade publication Automotive News this week that the Korean auto maker plans to add a plant in Mexico, joining affiliate Kia Motors Corp., which is building a factory in the northern city of Monterrey. The executive didn’t outline a timetable for a Hyundai investment.

Mexico produced 3.2 million light vehicles in 2014, edging out Brazil as the world’s seventh largest automotive power. Although domestic sales have been expanding rapidly in recent months, more than 80% of Mexico’s production is exported, mostly to the U.S. market.

With the arrival of the new plants and expansion of existing ones, Mexico is on course to produce 5 million vehicles a year by decade’s end, according to AMIA, the auto makers’ national association.

As a result of its new Mexico plant, Toyota’s factory in Ontario, Canada, will stop making the Corolla in 2019 and start making midsize sedans. In April 2013, Toyota froze investment in new plants and instead focused on boosting productivity at existing factories. President Akio Toyoda has been vocal about how Toyota was too aggressive in building new plants in the early and mid-2000s, leaving it with excess capacity and high fixed costs after the global financial crisis. Toyota currently has around 9.8 million vehicles in annual global production capacity."

'Splain this one Mayor Nancy Barakat Vaughan. How can you justify over $20 Million in Greensboro tax dollars and an increase in water and sewer rates for a car company you knew would never come? After all, now you can't say you weren't warned?

 

Randolph County As A Developer

An e-mail from Alan E. Ferguson, President Northeast Randolph Property Owners:

"April 10, 2015

Hello Everyone,

Here's the latest in the megasite world.  This week, Randolph County formally took title to properties up in the "primary development area" (the northern portion of the megasite footprint by accepting and recording seven deeds).  According to the tax stamps on these deeds, the County spent about $2,963,000 of the approximate $4,186,000 it resolved to spend over our protests on February 2.

Since one of the reasons given on February 2 by the four commissioners who supported the purchase was that "we need to do something now because our time is running out", I cannot explain the passage of 67 days between then and now, nor why the County still has not spent all of the money which Chairman Frye then stated that the County needed to immediately spend.

The tax stamps also reveal that the County paid a premium of approximately $114,500 more to the Piedmont Triad Partnership than the PTP paid to the property owners who sold their titles to the PTP.  Yes, this means that someone made about $114,500 this week in County funds.  I haven't seen the settlement statements yet, but these are public business and by law should be available to us soon.  We will see.

Do not lose heart from any of this.  This project still has a very long way to go before it is a "done deal".  

In the meantime, our signs are very important, and we need to get more of them out, particularly up toward Greensboro.  Please call me if you can put any out and I will get them to you.  In addition, we have fliers if you would like to distribute these in any way, including electronically.  We need to continue to raise our voices, and let them know that Big does not always win.

Alan E. Ferguson

President Northeast Randolph Property Owners"

So the Piedmont Triad Partnership marked the price up $114,500.... Interestingly enough, someone very, very, very high ranking in Greensboro City government told me just weeks ago that no one was making any money off of this megasite. I didn't believe her then and I don't believe her now.

Toyota Ain't Coming To The Greensboro-Randolph Megasite

From the Wall Street Journal:

"Toyota to Resume Plant Building After Three-Year Hiatus

Factories in Mexico, China to Cost Around $1.25 Billion

 

 

By 

YOKO KUBOTA

April 3, 2015 3:33 a.m. ET

0 COMMENTS

NAGOYA, Japan—Toyota Motor Corp. is set to start building plants again following a three-year freeze, spending around $1.25 billion on factories in Mexico and China, people familiar with the matter said Friday.

The plants are likely to start operating around 2018 or 2019 and will expand Toyota’s production capacity by several hundred thousands of vehicles, the people said. An official decision is expected to be made later this month, they said.

The world’s best-selling auto maker is finally shifting into expansion mode after a period of caution during which President Akio Toyodacalled for an overhaul of manufacturing lines.

Over the last several years, Toyota has been developing new manufacturing equipment and engineering technology that can be used to shrink the size of new plants and make some existing plants more efficient. The auto maker recently said it can cut initial plant investment by 40% compared with 2008 levels.

“We are gradually starting to witness the next stage for new plants,” Mr. Toyoda told investors last month. He said the company had to make a “sweeping change” to “make our plants competitive, instead of merely pursuing volume."

Toyota aggressively built new plants in the early and mid-2000s, leaving it with excess capacity and high fixed costs after the global financial crisis. It hasn’t made a major investment in new factories since 2012, when it announced a new plant in Thailand.

“We truly suffered. We rapidly expanded production, but there was no time for workers to think,” Mitsuru Kawai, a senior managing officer at Toyota, told reporters on Friday in Nagoya, central Japan.

While Toyota froze its investments—a move it has called “a willful pause”—rivals including Volkswagen AG have expanded capacity to meet growing demand. Mexico has developed into an auto manufacturing hub that exports cars to the U.S., while China is the world’s biggest auto market.

“In China, the European and U.S. auto makers like General Motors are leading,” Tetsuo Ogawa, one of Toyota’s managing officers leading the China business, told reporters Friday. He said Toyota holds a 5% to 6% share in the market and is putting priority on quality over sales growth.

The Chinese auto market continues to grow, though the pace of gains is expected to slow this year. The China Association of Automobile Manufacturers said it expected passenger-vehicle sales to rise 8% to 21.3 million vehicles this year, compared with 9.9% growth in 2014 and a 16% increase in 2013. Toyota said last year that it was aiming to double sales in China to around two million vehicles.

Toyota has been working on manufacturing lines that can be quickly adjusted in several hours or less to respond to changes in demand for various models. It has also developed more-efficient laser welding machines and press equipment that helps shorten lines. The new technology is expected to be introduced at the new plants as well as some existing factories.

At the Myochi plant in central Japan, where Toyota makes power train-related parts and other components, one section has shrunk to 12 meters from 27 meters, Mr. Kawai said.

Toyota has said it plans to manufacture 10.21 million vehicles in 2015 and sell 10.15 million vehicles, figures that include group companies Daihatsu Motor Co. and Hino Motors Ltd.

Toyota became the first auto maker world-wide to make and sell more than 10 million vehicles a year. But some analysts say Volkswagen, which has been aggressively expanding sales, could surpass the Japanese auto maker soon."

 And rumors abound as to why David Powell of the Piedmont Triad Partnership is leaving town.

How Are Those PTI Investments Working Out?

Over the years the City of Greensboro has literally pushed hundreds of millions of dollars into development at Piedmont Triad International Airport, an area that forever remains outside of the city's control and cannot be taxed by any city or county in North Carolina.

Today we learn that United is laying off 60 workers:

"United Airlines said Monday it is eliminating the jobs of about 60 employees at Piedmont Triad International Airport in Greensboro as part of transferring its airport operations to an outside service group."

Sure, some of those jobs will remain local with 3rd party contractors but not at the rate of pay United paid. That means less money will be spent locally by the workers who remain.

It's time we looked at investments that don't just up and fly away every time things get tough. It's time we considered the economic costs of economic development and started working on the ground. And folks, airplanes have wings.

The $120 Million Dollar public investment in FedEx promised 1500 jobs, 15 years later FedEx has yet to increase its work force.

Timco Aviation was bought out by a Chinese corporation and has laid off employees nationwide.

How long before Honda Jet flies away?

Will The Greensboro-Randolph Megasite Be Too Late?

The "movers and shakers" are rushing to spend over $200 Million Dollars of State taxpayer dollars, over $21 Million Dollars of Greensboro taxpayer dollars, a chunk from Randolph County, Asheboro, and Guilford County to lure an automaker to the proposed Greensboro-Randolph Megasite located just across the county line in Randolph County but will they be too late?

Not a single stone has been turned, even a blade of grass pushed aside for the proposed project and already Volvo is announcing they will pick from over already 180 available sites in just 30 days. From Fox News:

"Volvo Cars is planning to build an assembly plant in the U.S.

The $500 million plant will be Volvo's first car plant in North America.

The Swedish automaker says it has a short list of possible locations, but didn't reveal them Monday. Spokesman Russell Datz says Volvo will announce the location in about a month."

Will the Greensboro City Council continue to push to build this megasite now that Volvo is almost certainly lost? Would you?

That's right, some say Land Rover is still considering a US location but that's 1 car company with it's pick of 180 completed megasites nationwide. 

The positive economic impact would be greater if $200 Million were simply dropped from helicopters over downtown Greensboro.

Beware Greensboro, The Pitchforks Are Coming

When Billy Jones​ explained Henry Ford to the rest of you, people thought me crazy. Why? My guess is because I'm not already rich. Here one of the founders of Amazon explains Henry Ford and that rich bastard confirms me right..



My posts Feb 5 2015: http://greensboroperformingarts.blogspot.com/2015/02/capitalism-works-best-when-shared.html and previously Sept 13, 2013: http://greensboroperformingarts.blogspot.com/2013/09/why-greensboro-continues-to-die.html

Can Greensboro bear the continued economic costs of continuing business as usual. I don't see any walls around Irving Park.

Alan Ferguson On Last Night's Greensboro City Council Meeting

Or, What The News & Record Won't Tell You:

March 4, 2015

OK everyone, I appeared before another local governing board last night, this time the Greensboro City Council.  I'm here to tell you that standing up to a group who have been drinking the "economic development" kool-aid is not for the faint of heart.

They gave me three minutes to comment on their resolution to run water and sewer down to Randolph County.  At the end of my three minutes, Mayor Vaughan cut me off sharply in mid-sentence.  No one asked me any questions. After my three minutes (and two other comments with us by possible new allies in Greensboro) we listened to about 45 minutes of "here's why the megasite is such a good idea".  They brought in Sam Simpson and Mike Solomon from their homes in North Greensboro to talk about it.  While they were speaking, the three-minute clock which applied to every other speaker during the night was not running.  They were allowed to talk until they were finished.It was like watching cheerleaders practice their routine. 

For the first time last night, we heard last night that any property taxes on the proposed megasite would be "abated" and Randolph would collect nothing.  This was the first time we had heard somebody admit a point that we have been preaching.

Our position was ridiculed at length by a sneering Councilman Matheny.  That is the first time I have been treated to that kind of disrespect.  He, and to an only slightly lesser extent Mayor Vaughan, is a true believer in Greensboro's expansion down into southeastern Guilford County, and heaven help anyone who dares to think otherwise.  

There were numerous remarks from council about annexations, and "development" down 421.

The council seems to have taken as a given that "The Golden Leaf" is going to come in and pay for everything.

Mr. Solomon stated that he had been hired by the Bryan Foundation to do so, and that he had found "the best site in the southeast".  Heard that before? 

We also heard last night that any property taxes on the proposed megasite would be "abated" and Randolph would collect nothing.  That was the first time we had heard somebody admit a point that we have been preaching for many months.

If you live between the county line and Greensboro, you need to bring in any friends who are concerned about water and sewer lines coming their way, with their assessments, well-complications, and assorted other inconveniences.  The resolution the city council approved last night, with a map, is attached.

 Here's the story.

http://www.news-record.com/news/government/greensboro-council-seeks-firm-for-water-project/article_2d55dc2e-c21f-11e4-874f-239f266c378d.html

 

Alan E. Ferguson

President, Northeast Randolph Property Owners

 

Attachment

Remember: This isn't from crazy old Billy Jones, this is from Alan E Ferguson, Attorney, Fisher Park Law, Greensboro.

Greensboro Votes To Subsidize Randolph County Development

Tonight the Greensboro City Council will  vote to accept request for proposals to spend up to $2.2 Million Dollars to go towards the engineering costs of building the Greensboro-Randolph Megasite-- a 2000 acre industrial park designed to attract an auto manufacturer.

On Sunday I pointed out this is one of tens of thousands of acres of industrial properties currently under development within 1 hour of Greensboro including the recently announced 7000 acre Chatham Park in Pittsboro.

A few weeks ago the Randolph County Commissioners approved the building of the Greensboro-Randolph Megasite. From the minutes of their meeting:

"Eric Ward, 510 High Point Street, Randleman,President of and representing the Asheboro- Randolph Home Builders Association, presented a letter of support for the mega site development on behalf of the Association. Mr. Ward explained their reason of support as follows:The proposed site when completed and filled with industry has been estimated to provide 1,750-3,000 directly affiliated new jobs and 4,500 - 11,000 supporting jobs. To take those numbers a step further the National Association of Home Builders (NAHB) in 2012 estimated that for every three new jobs introduced to an area there will be one new house built in that same vicinity. Therefore, if only 3,000 new jobs are created then it can be realistically estimated that 1,000 new homes would be built in order to sustain the growth. NAHB analysis also shows that building 1,000 average single-family homes generates 2,970 full-time jobs, $162 million in wages, $118 million in business income & $111 million in taxes and revenue for state, local & federal governments. Mr. Ward asked for sincere consideration in this matter and to remember that “if nothing ever changes, then nothing will ever change.”

So suppose those numbers are real and everything Eric Ward says is true: How could the Greensboro City Council justify subsidizing that kind of development 20 miles outside of Greensboro, across the county line in Randolph County when Greensboro will never have the right to annex the property? If those numbers are true then wouldn't Greensboro be better off if Greensboro's tax dollars were spent in Greensboro?

And to think, these people want to be reelected come November...

Local Megasites, A Mega Tour

On Tuesday night the Greensboro City Council will vote to give away over $2 Million Dollars to fund engineering for the Greensboro-Randolph Megasite. They'd like for you to believe they're not giving the money to developers but it's $2 Million the developers won't have to spend so no matter how you cut it they're still giving money away to developers and speculators. At a later date they will vote to spend in excess of $21 Million Dollars in the hopes of attracting an automobile manufacturer to the Piedmont Triad. That too, is giving money away to developers and speculators.

But before they do I'd like to point out to you the size, scale and number of existing sites that are proposed, already exist or are already under construction close by. Of course, I'm leaving out a few hundred smaller sites as the Greensboro-High Point Metropolitan Statistical Area is #4 in the nation for empty industrial properties for MSAs between 200,000 and 1 Million residents.

Of course you've heard of plans to build a 2000 acre project at the old Guilford County Farm in Gibsonville so I start our journey there. Mostly I added this first stop to make the map a little clearer.

 Click here to view map full size.

Stop number 2 is Chatham Park in Pittsboro:

"Chatham Park covers more than 7,000 acres adjacent to Jordan Lake and downtown Pittsboro. Chatham Park Investors, a private development group, has submitted a Master Plan for the site; a rezoning request was approved by the Town December 8, 2014 which allows the project to move forward.

Sitting a short distance from Raleigh, Durham, Chapel Hill, the Research Triangle Park and the Raleigh-Durham International Airport the property is the next logical extension for a region whose population is expanding by 50,000 new residents each year."

7000 acres was no typo. If North Carolina gets an automaker Chatham Park will be the site as auto makers prefer cluster locations that allow their vendors to locate their facilities within just a few miles radius.

Stop number 3 is the Proposed Greensboro-Randolph Megasite, 2000 acres of fertile land that is currently being farmed setting right slap dab in the middle of everything else I'm showing you.

Stop number 4 is just 8 minutes from the proposed site where DH Griffin has already completed and recieved Megasite Certification for the  Chatham-Siler City Advanced Manufacturing Site.

"The Chatham-Siler City Advanced Manufacturing Site - named one of the top sites in the South for auto assembly by Southern Business & Development - is strategically located near Highway 421 and south of Interstate 85. The 1,800-acre megasite has 5,000 feet of rail frontage and is less than 50 miles from two international airports, Raleigh-Durham International (RDU) and Piedmont-Triad International (GSO). The land is undeveloped and has two owners, both committed to attracting a large industrial user."

That's right, folks, Chatham County alone already has almost 9000 acres of megasites less than 1 hour away grom Greensboro. And that doesn't include all the old poultry farms, feed mills and poultry processing plants that are sitting empty all over Chatham County.

Stop number 5, the Heart of North Carolina MegaPark in Bisco:

"The Heart of North Carolina MegaPark is a joint collaboration between Moore County and neighboring Montgomery County to develop a 3,000-acre corporate/industrial mega-site located in both counties. With its strategic location in central North Carolina and close proximity to U.S Interstate 73/74, the site offers easy access to markets throughout North Carolina and the Eastern Seaboard. "

That's right folks, 3000 acres less than one hour away from Greensboro. And it has Tier 1 State Tax Incentives. So far we're up to almost 16,000 empty acres of industrial parks all located less than 1 hour from Greensboro.

Get back on the bus, folks, we're off to Davidson County where stop number 6 is the Davidson Industrial Park  in Davidson County just outside of Lexington is projected to be 1200 acres when fully built.

I threw in Triad Business Park located in Kernersville (Stop #7) not because of it's demure 360 acres but because Councilman Zack Matheny has been pushing to use Greensboro tax dollars to expand TBP. Oh, and I left out the 600 acre NC Industrial Center located in Mebane. Like I wrote above, I've literally left out hundreds.

Stop number 8 is the North Carolina-Virginia line:

"Commonwealth Crossing Business Centre is set to open soon in Martinsville - Henry County. The new business park will be developed on 726 acres along the North Carolina border, approximately 30 miles north of Greensboro's Piedmont Triad International Airport. The park is rail served, and will have sites up to 280 acres with 200 acres of construction-ready pad.

Located near US 220 South at the Virginia / North Carolina state line
Four-lane access to nearby interstates
Total Acreage: 726 acres
Tract 1: 280 acres (200 pad acres)
Adjacent to the Norfolk Southern Railway Mainline
Only 33 miles to the Piedmont Triad International Airport and the new
FedEx Mid-Atlantic Hub in Greensboro, NC"

Wow, that's closer to Greensboro major facilities like Piedmont Triad International Airport than the proposed Greensboro-Liberty Megasite. And Commonwealth Crossing Business Centre broke ground last year whereas Greensboro is still years away from breaking ground. I don't know about City Council but I don't need to spend over $2 Million Dollars on consultants to tell me this is looking like a really dumb idea.

Stop number 9, for shits and giggles and just to get us home I thought I bring us by 1203 Freeway Dr, Reidsville, NC where former Mayor Robbie Perkins' company NAI Piedmont is trying to sell an abandoned industrial property. Our area is filled with abandoned industrial properties. You see, Robbie Perkins, Sam Simpson and company stand to profit every time these properties change hands. When the properties are sold to the development agencies they get commissions. And if the properties get sold to end users they get commissions. And if the projects go bankrupt and the properties are sold off they still get commissions.

All in all, as of 2013, North Carolina had 18 empty sites claiming to be megasites. Since that time 2 have actually been certified as megasites but hundreds of thousands of acres of farmlands are being wasted all across the state while nationwide as of 2013 there were 180 megasites all of them vying for that one auto plant that has yet to be built.

If I were in charge of Greensboro's economic development dollars I'd be spending every dime inside the Greensboro City Limits. The odds couldn't possibly be as bad as gambling them on a megasite.

If you're a resident of the City of Greensboro, Guilford County or Randolph County I beg you to please contact your elected representatives with the information I've presented here and share this with other residents.