What’s Reshaping Arizona, New York City And Texas?

CNBC・2 minutes read

Arizona is becoming a popular destination for companies and residents due to its lower cost of living, business-friendly environment, and focus on industries like electric vehicles and semiconductors. Texas is also attracting individuals and businesses from California with its lower taxes, cost of living, and business-friendly regulations, making it an appealing alternative for those looking to relocate.

Insights

Arizona's strategic location, business-friendly environment, and significant investments in electric vehicles, self-driving technology, and semiconductor manufacturing have positioned it as a key player in these industries, attracting major companies and fostering innovation.
Texas' appeal lies in its lower cost of living, business-friendly policies, and lack of income tax, making it an attractive destination for both individuals and companies looking to relocate from states like California, with a robust economy, rich history in tech, and renowned educational institutions further enhancing its allure.

Get key ideas from YouTube videos. It’s free

Recent questions

Why are companies relocating to Arizona?
Due to lower cost of living and business-friendly environment.
What makes Arizona a hub for electric vehicles?
Proximity to Mexico, EV supply chain, and major investments.
How does Arizona manage its water resources?
Through groundwater access, on-site recycling, and conservation efforts.
Why is Texas attractive to businesses and individuals?
Lower cost of living, business-friendly environment, and lack of income tax.
What are the challenges Texas faces?
Extreme weather conditions, population boom, and vulnerability to disasters.

Related videos

Summary

00:00

Arizona: Hub for Tech and Manufacturing Growth

The cost of living in San Francisco is three times that of Arizona, leading to an influx of people relocating to Arizona and working remotely.
Arizona is rapidly becoming a hub for electric vehicles, self-driving technology, and semiconductor manufacturing.
Arizona is considered the semiconductor capital of the world, with major investments from companies like Intel and Taiwan Semiconductor.
Phoenix attracted more residents than any other US city in 2020, with 634 companies relocating or expanding in Arizona between 2015 and 2020.
Arizona's history of manufacturing and business-friendly environment has attracted companies like Apple, Caterpillar, and Infosys.
Arizona's proximity to Mexico and access to the EV supply chain has been a significant factor in attracting companies like Lucid Motors and Nikola.
Arizona offers ideal testing conditions for vehicles, with six major test tracks and proving grounds for car companies to discreetly test their cars.
Arizona is a key player in the development of self-driving technology, with companies like Waymo, Uber, and Cruise testing autonomous vehicles in the state.
Intel's significant investment in Arizona, with plans for two new factories, will make it the company's largest manufacturing site globally by 2023.
Arizona is considered one of the top states in the country for semiconductor talent concentration, further solidifying its position in the industry.

13:07

Arizona's Water Management and Industry Sustainability

Making chips requires an immense amount of water, with a typical fab using 2 to 4 million gallons daily.
Arizona's main water source is groundwater accessed through wells, but excessive use is depleting it faster than it replenishes naturally.
Some manufacturers have implemented on-site water recycling, reclaiming over 80 to 90% of water used.
Intel treats 9 million gallons of water daily, returning much to the local supply for irrigation.
Arizona has a history of reusing grey water for cooling and irrigation, storing water in underground aquifers, and limiting urban irrigation.
Arizona uses less water now than in 1957 despite a six-fold population increase, focusing on water management.
Major canals and tributaries allow 36% of Arizona's water to come from the Colorado River.
Lucid recycles water used in making Air vehicles through a treatment system.
Arizona ranks second in reliable power grade, with energy costs half of California's industry rates.
Arizona's population has grown steadily, with a 13.9% increase from 2010 to 2019, providing a skilled workforce for companies relocating from California.

25:36

New York's Fiscal Outlook: Surplus to Deficit

Fiscal year 2021 projected a surplus of nearly $3.4 billion from income and corporate taxes.
Medium-term outlook anticipates a $15.6 billion deficit for fiscal years 2022 through 2024 due to property tax decline.
Governor Cuomo estimates a $15 billion deficit for fiscal year 2022.
Policymakers advised not to overreact to the current revenue shortfall, as it's manageable.
President Biden's American Rescue Plan includes nearly $24 billion for New York, with $6 billion allocated to the city.
Wealthiest individuals in the city and state saw an $88 billion increase, highlighting the failure to tax them adequately.
New York City's high municipal income tax is a challenge, especially as people move away during Covid.
Property tax slump led to revenue loss, prompting the city to consider raising rates or targeting higher taxes.
Fear of high-income earners leaving due to high taxes is common, but data shows only a small fraction move for tax purposes.
New York City's history of downturns and recoveries showcases resilience, with the current pandemic posing unique challenges.

38:00

Texas: Business Hub with No Income Tax

Texas and California are the two most populous states in the US, with Texas attracting wealthy individuals due to its lack of income tax.
Texas is the ninth largest economy globally and a major business hub, ranking second in CNBC's top states for business.
Texas boasts a significant manufacturing sector in Central Texas and is a major player in oil and energy, being the country's top exporter for 18 years.
Texas is home to 50 Fortune 500 headquarters, over 1600 foreign-owned companies, and 2.7 million small businesses, with a large workforce.
Texas has renowned educational institutions like the University of Texas System and Texas A&M, attracting many companies to the state.
Texas was the second most popular destination for people leaving the Bay Area during the pandemic due to its lower cost of living.
Texas has a rich history in tech, with companies like Texas Instruments, Dell, IBM, and Microsoft having a significant presence in the state.
Austin is becoming a tech hub with companies like Apple, Tesla, and Oracle establishing a presence, prompting comparisons to Silicon Valley.
Texas offers a more hands-off approach to regulations and taxes compared to California, making it attractive for businesses and individuals.
Texas has a lower cost of living and business-friendly environment compared to California, making it a more affordable and attractive place to live and work.

49:25

Tax and Climate Contrasts: California vs. Texas

Moving from California to Texas resulted in a decrease in property tax from 1.25% to 1.7% and the elimination of income tax, making it a net gain in terms of taxes.
In Texas, there is a uniform property tax for everyone, unlike California where there can be significant disparities, especially burdening younger people and newcomers.
The high cost of utilities in Texas, like a $12,000 connection fee for water, can be surprising for those moving from other states.
While housing is cheaper in Texas compared to California, the Texas housing market is experiencing a population boom, leading to increased home sales and low inventory.
Texas faces challenges like extreme heat, humidity, droughts, wildfires, and hurricanes, with recent disasters causing significant damage and loss of life, highlighting the state's vulnerability and political dynamics.

Try it yourself — It’s free.