Today’s Reno Gazette-Journal reported on Reno-Sparks’ ranking in the most recent Milken Institute Best Performing Cities Index. This index ranks US cities’ ability to create and sustain jobs.
Out of 200 of the nation’s largest cities, the Reno-Sparks metro area ranked 196th in job creation and sustainability (incidentally, Las Vegas ranked 164th). See the RGJ’s, Reno area near bottom of national jobs rankings for the story.
On a positive note, this week’s Northern Nevada Business Weekly reports that Nevada ranks 13th among states to which other Americans would like to move; this from a new Harris Poll [see the NNBW’s, Nevada dreamin’]
Paul
This is simply an extrapolation of current trends, just as the previous high ranking was based on the extrapolation of the bubble. Its not a reliable measure of future performance. BTW Huntsville Alabama, Really? Humidity and poisonous watersnakes anyone? I’m not making any major decisions based on the Milken Institute index just yet.
If its Michael Milken, he lives on Lakeshore in Incline Vlg and I haven’t seen any U-Hauls headed for Alabama being loaded up in front of his place lately.
Reno has its issues, but for 160k median home price, clean dry air, proximity to the Bay Area, Skiing, great airport – I’m In.
JinSW
Until Reno gets together a master plan to invest in better educational institutions, and focus on a job sector other than gaming can we advance.
I travel weekly as part of my work, and while I love the area I am always depressed that the civic leaders are so myopic on gaming. Why can;t we have a really strong technology, biomed, healthcare or other think-tank industry like so many other smaller cities.
Gaming is dead city leaders, wakeTFup.
Sully
JimSW, the city leaders are aware of the gaming snag. However, due to budget constraints all they can do is whine about increasing revenues. In other words, don’t cure the disease – just medicate it.
I think there is too much politics involved which is like watching a dog chasing its tail.
A think tank for creating a think tank industry would be more effective. Now can an old dog be taught a new trick?
smarten
Hey Paul –
Hey Paul –
Does Michael Milken actually “live” on Lakeshore Drive, or does he have a house on Lakeshore Drive his family occupies from time-to-time? If the latter, do you know where his principle residence is located?
BTW, our friend Don Kanare [www.insideincline.com] has begun publishing a weekly real estate column in the North Lake Tahoe Bonanza Newspaper. Coincidentally, his article this morning [ http://www.tahoebonanza.com/article/20101018/NEWS/101019935/1061&parentprofile=1050 ] discusses the so called bounce back of Lakeshore Drive/Lake front sales in Incline Village. According to Don, there are only 74 truly Lake front properties in Incline Village [one of which is owned by Mr. Milken].
Smarten's Vanishing Equity
I wouldn’t read a Don Kanare shill piece if my life depended upon it (I am also not frantically defending the imaginary value of my Incline Village shelter), but a “bounce back” in sales of Lakeshore Drive houses would not surprise me in the least. These owners and buyers are the very pigmen who were bailed out at the expense of the taxpayers, and gleaned record bonuses!
Guy Johnson
Paul (and anyone else who may be interested),
I found a Facebook Group yesterday called Re:Know Reno. This newly formed group promotes “a community discussion about what’s right in our region.”
If you’re a FB user, you may check it out here: RE:KNOW RENO
smarten
“frantically defending the imaginary value of my Incline Village shelter?” Well now you’ve definitively identified your true Mr. BB identity which I find ironic since weren’t you the one who decried Derrick for having done what you yourself have done with the SVE moniker [because you just can’t stand to stay away from this blog yet don’t have the guts to use your real bantering identity]? Perhaps I should now start posting under the Mr. BB’s Expanding Hyprocacy moniker?
And while you’re at it Mr. BB, why don’t you come clean and tell us whether you are also MikeZ’s Vanishing Credibility? Inquiring minds want to know.
And BTW, I wouldn’t put the Milkens, Duffields, Ellisons and Hilfigers of Lakeshore Drive into your bailed out “pigmen” category. Sounds to me like you’re jealous of the successes of others.
Carlo
Meanwhile, closer to home, and as further evidence of Reno’s dying gaming industry, the Sienna Hotel and Casino is closing down at noon today.
Gail
The closure of the Siena does not come as a surprise to anybody. It does, however, provide a far more insightful and meaningful indication of the current economic conditions in Reno than how many non-resident multi millionaires own property on Lakeside Drive in Incline Village.
Drive by poster
Huntsville has a highly educated population, NASA, the presence of about 10 universities, a huge research park and tons of aerospace and military contractors.
Reno is Reno.
Guess what the Reno/Sparks and Huntsville metropolitan areas do have in common? About the same size of population.
MikeZ’s Vanishing Credibility
Now that is rude, smarten. I will admit to playing on the panache of the Smarten’s Vanishing Equity moniker to coin my nom de plume (or perhaps that should be nom de clavier in the current modality), but I am not a bear (at least not a permabear), bantering or otherwise. In fact, my thoughts frequently align with yours. And although it pains me to admit such, I often agree with MikeZ’s conclusions (at least the essential elements of his conclusions), but I grow frustrated with his inability to refrain from hyperbole (e.g., median sales prices fall 5% to 10% in winter), his frequent use of orthogonal data to support the aforementioned hyperbole, and his tendency to change premises mid-argument (without acknowledging that his prior premise(s) may have been fallacious). In other words, I agree with many of his conclusions, but find his support thereof unartful, to say the least.
The entire median sales prices “typically” fall in winter fiasco was the final straw for me. His conclusion (like yours, and mine, I might add) was that September’s median of $169,950 is not necessarily meaningful beyond fluctuations of an otherwise stable (albeit less than healthy) market. However, the demonstrable falsity of his assertion that the median typically falls in winter undermines the credibility of any of us who challenge the notion that a lower September median, in and of itself, may not be meaningful with respect to the stability of the market. Surely you have noticed that your own positions are often lumped together with MikeZ’s and attacked not on their merits, but on one of MikeZ’s problematic premises advocated in support of the same or similar position. Thus, my goal is to establish distance between his “Vanishing Credibility” and those of us who might have overlapping positions.
As for Smarten’s Vanishing Equity himself/herself/itself, I agree that there are sufficient similarities to believe that SVE is Bantering Bear, especially after the post above.
smarten
MVE –
Although I didn’t accuse you of being the same poster as Mr. BB aka SVE [I just asked a question – inquiring minds wanted to know], for now I am persuaded the two of you are not one in the same. IMO you write too intelligently to be a college drop out and man of the earth [or fertilizer]. So to the extent you feel my comments were “rude” and unfairly accused you of something you are not, I apologize.
As far as I am concerned, you [and Mr. BB for that matter] can continue to blog away. It’s just that insofar as SVE is concerned, let’s call a spade a spade. Oh BB – I guess you must be jealous of me too [even though I don’t live on Lakeshore Drive] given imitation is your therapist’s code speak for flattery. Thanks.
smarten
Sorry MVC for the MVE reference.
MikeZ’s Vanishing Credibility
Hey smarten,
The “rude” comment was tongue-in-cheek, so no apology necessary. I just wanted to clarify that I am not Mr. BB.
billddrummer
In other news, the Siena Hotel closed today at noon.
http://www.rgj.com/article/20101021/BIZ/101021017
In my opinion, it’s not likely to reopen.
bob_c
where are the jobs going to come from anywhere in this country?
Sully
Good point about the jobs. Another scenario about jobs relocating here is the real estate market. A company I am familiar with, moved the last of its operations here. However, this time around, no jobs came with it. All empl0yees were hired from local pool. This is good for NV, not good for getting companies to move that want to retain employees. It seems real estate in most other states is as much underwater as real estate here. So the prospective transfer doesn’t happen because they can’t sell their house or else have other family members living there that can’t leave.
Paul
As people in southern California know all to well, defense and aerospace industries are quite cyclical. After an 8-year military buildup to support two foreign wars and the “war on terror”, contractors and suppliers have expanded their operations and employment. Given the massive federal deficit and looming entitlement liabilities for the baby boom generation, its hard to imagine military spending continuing at its current pace. Many of these businesses around Huntsville are vulnerable to future cutbacks, just as defense contractors and the aerospace industry shrank severely in SoCal during the spending cutbacks of the Clinton Administration.
navy dude
I have alot of friends in defense. It has come to a screeching halt. Contracts that were supposed to start months ago are still on hold. SoCal and DC contractors are making cuts as we speak.
My buddy is an Aero Engineer with a M.S. from UCLA. 10 years experience. Good guy. Just got laid off from a large defense company.
Nothing to do with Reno, but expect more cuts in defense as we go forward. Probably not a bad thing overall, as we need to one day get our fiscal house in order.
bob_c
obviously reno should try and steal jobs from other american locations, but
if you do your homework you’ll see the massive job losses the USA has allowed
tyo foriegn countries
Sears
Cut defense? Ya think? $700 billion for defense for 2011. As in, defense spends for ONE frickin’ year more money than has actually been allocated to date for all the despised 2008 Wall Street bailouts.
HighlyTrainedRealEstateAnalyst
Cut defense? How are we going to continue dumping depleted uranium on the world if we cut the “defense” budget?
700 billion is a drop in the bucket for bailouts. When you factor in all of the other dubious activities such as Fanie / Freddie bailouts and Fed treasury purchases, the number is easily in the trillions. And, the majority of the money went to the banks – not wall street.
MikeZ
And while you’re at it Mr. BB, why don’t you come clean and tell us whether you are also MikeZ’s Vanishing Credibility? Inquiring minds want to know.
Oooh, I have my own stalker?
Rory
Somewhat off topic but NASA is shuttering it’s operations on the Space Coast of Florida and around many parts of the country, including Alabama.
Reno needs to focus on industries which can thrive here….like being a distribution hub for all types of retail, or as a base of operations for Geothermal Companies and the like. Furthermore, if California elects Dingbat Jerry Brown and sends Boxer back to DC, expect another deluge of Cali businesses to Nevada. We stand to benefit tremendously from the liberal myopia of the average California voter.
Raymond
“another deluge of Cali businesses to Nevada”.
Excuse me, but when was the first deluge? I seemed to have missed the first deluge, what with our 14% unemployment and all.
Perhaps you could refresh my recollection and name some of the bussinesses that comprised the first deluge?
skeptical
the sad fact is that those California businesses that are leaving Cali to find lower taxes and cheaper labor are not heading to Nevada…..they’re going to China….
Rory
I don’t have a comprehensive list for you Raymond, sorry. But off the top of my head….
Zappos.com
Microsoft Licensing
Intuit
etc….they are all big name companies which moved operations from Cali to Nevada in the last 10 years or so. Our 14% unemployment has less to do with professional business and everything to do with homebuilders and construction firms trimming their payroll. Less you forget that in 2007 Reno and Washoe County had one of the lowest unemployment rates in the country which hovered around 4.0% which is darn near full employment.
Engineer
The statement that Microsoft Licensing relocated to Nevada from California is totally inaccurate. Microsoft Licensing was created in 1997 to set up a small Reno office to record the revenue generated by Microsoft Corp. from its licensing operations. The reason is that there is no licensing tax in Nevada as there is in the State of Washington. By locating the licensing entity in Nevada Microsoft saves millions of dollars every year that would otherwise be payable to the State of Washington. So it is accurate to suggest that Microsoft Licensing Corp. is in Nevada because of the state’s more favorable tax climate, but it is simply wrong to say that the company relocated from California as part of some alleged “deluge” of businesses vacating California for Nevada.
Microsoft Licensing never was located in California.
Softwarejockey
It is also inaccurate to state that Intuit relocated from California to Nevada. Absolutely inaccurate. In 1999, Intuit acquired a business known as Computing Resources, Inc. which already was located in Reno. The old CRI was a provider of payroll services and its acquisition by Intuit expanded Intuit’s domain. This business was never located in California. When Intuit bought it it simpy kept it where it was. Intuit’s home base always has been and contiunues to be, the State of California. About 90% of Intuit’s worldwide workforce is in California. The suggestion that Intuit would leave California for Nevada is ludicrous. In fact, Intuit has been reducing its workforce at its Small Business operation in Reno over the past year.
Shelley
Zappos. com is not, and never was in Reno. It is in Las Vegas.
Martin
Lots of people buy into the EDAWN spinjive about how Reno is a mecca for California bussinesses escaping California’s oppressive business climate. Problem is that it is all spinjive that is simply unsupported by reality. But it sure sounds goood to say that Microsoft and Intuit and other “big name companies” (always unidentified)are bailing out of California and coming to Reno. Too bad it is just not true.
The truth, Raymond, is that there has been no such deluge.
Rubiconer
And if Jerry Brown gets elected Governor of California, Intuit is still not going to move to Reno.
bob_c
i heard intel and cisco were in the bag for reno
dmon
So Rory goes 0 for 3.
Smarten's Vanishing Equity
Clearly Rory is either:
a) woefully uninformed
or:
b) a habitual liar.
Grand Wazoo
Intel just committed to a billion dollar investment in Oregon, a state with some serious taxes. Compared to Nevada, taxes in Oregon can only be described as “onerous”. Yet they are building their new fab in Oregon instead of Nevada anyway. Why? Because the taxes in Oregon fund the kinds of things Intel needs – infrastructure, educated workforce, quality of life. These are the exact things lacking in tax-free Nevada, and the reason why companies do not locate here in any numbers. If low taxes were the essential key to business development Nevada would not be the business and financial backwater that it is.
MikeZ
taxes in Oregon fund the kinds of things Intel needs … educated workforce
http://tinyurl.com/38qn82v
The results are in and Oregon is one of only 5 states in the nation to receive a D overall grade across all areas measured in the Education Week’s Quality Counts report just released.
…
1. Oregon is the worst state in the nation for Kindergarten enrollment (rank 50).
2. Oregon is the worst state in the nation for adults in the labor force working full time and year-round, a measurement of the outcome of the education system (rank 50).
3. Oregon is the worst state in the nation for 4th grade math achievement gains (rank 50).
4. Oregon is the second worst state in the nation for 4th grade reading achievement (rank 49)
5. Forty-seven states have early-learning standards – Oregon has none.
6. Oregon does not define college readiness or college preparation.
7. Oregon has no path for industry certification while 40 other states do.
8. Oregon has no requirement for licensing teachers that includes substantial coursework completion in the subject area to be taught. Twenty-seven other states do.
9. Oregon has no test of subject-specific knowledge in order to obtain a teaching license. Forty-two other states do.
10. Oregon does not require formal annual evaluations of all teachers’ performance. Forty-three other states do.
11. Oregon does not publish rankings or results for our teacher-preparation institutions. Thirty other states do.
12. Oregon does not offer an alternative-route program for teacher preparation. Forty-seven other states do.
13. Oregon does not provide incentives for teachers to earn national board certification. Thirty-eight other states do.
14. Oregon does not provide a mentoring program for new teachers. Twenty other states do.
15. Oregon does not provide a mentoring program for administrators. Fourteen other states do.
Grand Wazoo
Nice try with some 2008 data, MikeZ. The 2010 data shows Oregon with a C- overall rating, and Nevada with a D+. Google is your friend.
Oregon may not be good enough for you but it was certainly good enough for Intel.
MikeZ
Wazoo, with Oregon ranked A, possibly B, you’d have a legitimate case to make. But C/D? It’s just silly to claim Intel moved to a C/D state because of the education system.
GrandWazoo
As you know Mike, it is not just the education system of a state that attracts business – it the entire package (so to speak).
So Mister Z, assuming I’m wrong, how did Intel locate to Oregon? Did their facilities just fall out of the sky and land in that state by accident?
Sully
Intel has been in Oregon for almost 20 years. Whats the news?
Sully
correction – they opened first plant in 1976.
Drive by Poster
Companies locate where they feel they have the best environment to succeed. Nevada is filled with gaming companies (for a long time, only place gambling was legal), mining companies (where the minerals are) and warehouses (cheap land and unskilled labor). You only have to look at what is in Nevada to know what Nevada has to offer.
I love Nevada, but it is what it is. Intel, Google, Boeing, etc aren’t going to relocate to Nevada as it is because they already haven’t. If Nevada wants to grow beyond what it currently is, it has to change. You can’t argue that Nevada is just as good as Oregon when it comes to education, because the companies that need educated employees aren’t choosing Nevada, they are choosing Oregon.
FWIW – I know a few people who work at Microsoft Licensing. For the most part, going from Redmond to Reno is considered to be the equivalent as to being sent into exile.
MikeZ's Vanishing Credibility
” It’s just silly to claim Intel moved to a C/D state because of the education system.”
I agree. That would be silly. Almost as silly as MikeZ creating a straw man argument to save face after Grand Wazoo called him on his out of date data. Grand Wazoo never claimed Intel moved to Oregon because of the school system exclusive of other factors, no matter how MikeZ frames his statement to make it seem Grand Wazoo claimed such. Grand Wazoo was trying to make the point that companies consider more factors than just the tax rate, and that they may even locate to communities with a higher tax rate if they believe their business and their employees would benefit from the services funded by those taxes. Seems like a reasonable assertion to me.
And MikeZ, just so we have our terminology correct, I am not your “stalker” — I am your gadfly. And while the position of gadfly has entailed a degree of risk, classically speaking, as long as you do not have the power to make me drink hemlock, I think I will survive.
MikeZ
Grand Wazoo never claimed Intel moved to Oregon because of the school system exclusive of other factors
Straw man right back atcha; I never claimed exclusivity.
MikeZ's Vanishing Credibility
Quite right, you did not use the term “exclusive,” but I did as it fits the implicature manifest by your statements.
Exhibit A: In quoting Grand Wazoo, you focused (exclusively) on his statement on education — “taxes in Oregon fund the kinds of things Intel needs … educated workforce” – while ignoring the rest of the factors he discussed.
Exhibit B: In responding when called (once again) on suspect data, you replied “It’s just silly to claim Intel moved to a C/D state because of the education system.” This is a nice, strong declarative statement. You do not waste time (or thought) on any qualifiers (i.e. weasel words) that might have accurately portrayed Grand Wazoo’s position. However, in framing such a strong statement, the implicature is that you are addressing the silliness as if what was proposed was a monocausal relationship (where as the original claim was that the relationship is polycausal).
Or put another way, you might not have written “exclusive,” but you implied the same. It is akin to a man who never says he is exclusively dating a woman but acts that way until something better comes along, and then says, “but I never said we were exclusive,” as if not saying the “magic” word somehow negates the totality of his actions.
And “atcha”? Seriously?
Raymond
So, uh, Rory, I’m still waiting for you to describe for me the identities of the “big name” companies that comprised what you describe as the “deluge” out of California to Reno.
But this time, please don’t just blow some smoke out of your behind like you did with Intuit, Microsoft Licensing and Zappos. It’s really difficult to run bullsh!t past this blog.
Harvey
MVC,
Please keep up the good work. Your posts are rock solid, and the Z-man’s ignorance just wears me down…
Rory
Is Las Vegas not part of Nevada you morons?? / Of course Zappos is located in Vegas, but the question was asked what companies have relocated from California to Nevada. All three have done just that.
lurker
seems like Rory is off the medication, again. Seemed to make a few good points, but lost me with that last one.