by Mark Malkowski, President of Stag Arms, has an interesting choice to make. According to an announcement he made this past Friday, Malkowski has narrowed the choice for where Stag expands to either Houston, Texas or the Myrtle Beach area of South Carolina. The ultimate decision will be made by the end of this month.
“South Carolina is very competitive,” Mark Malkowski said of what the state has to offer his company versus that put forward by the Lone Star State. “At this point, we’re spending our time evaluating the offers.”
Assuming both states come up with comparable financial incentives, what advantages would Houston offer over Horry County (the H is silent)?
Houston would offer two major airports, two major universities with engineering schools, a number of technically skilled workers available with the downsizing of NASA, and all the amenities of a major metropolitan area including world-class healthcare facilities. The downside is that property taxes are higher, real estate and rents are more expensive, and, most importantly, wages tend to be higher. The overall cost of living as calculated by numerous cost of living calculators is about the same.
What about Myrtle Beach and Horry County?
First and foremost, it is closer to Connecticut. That was one of the deciding factors for PTR Industries when they relocated to Horry County.Workers that relocated from Connecticut are still within a long day’s driving distance of their relatives up north. Horry County officials are hoping that works in their favor.
Brad Lofton, CEO of the Myrtle Beach Regional Economic Development Corp., agreed that Horry County compares favorably in most areas with Texas, but hoped that Horry’s proximity to Stag’s Connecticut plant, quality of life and short distance to customers in Columbia and elsewhere in the Southeast could be the points that will sell Malkowski.
Both states have supportive Republican governors, good gun laws, and a welcoming business climate. Ultimately, I think it will come down to the intangibles such as quality of life. In other words, do they want to live at the beach or live in a major metropolis?
There is a lot of BFE around Houston where it would very cheap to set up shop yet be close enough to the big city.
They could set up south of Houston proper (near JSC) and be about 20 miles from the beach.
1. Houston rarely if ever freezes. 2. Centrally located for shipping 3. NO STATE INCOME TAX 4. IT'S TEXAS!
Or no State income tax in Texas, which also has nearby beaches in Galveston.
The property tax is higher because we don't have state income tax.
Exactly. I had a client who was bitching and moaning about NC's income tax. Then I asked what she paid in property/school tax back in the Dallas area. It was equivalent to what she was paying in income tax in NC.
Yes, the "H" is silent in Horry County. I love Texas and I love South Carolina. Houston is a wonderful place, but Horry has an oceanfront.
Mrytle Beach is, IIRC, slightly more vulnerable to hurricanes, due to geography.
The beach is no more than 30min to an hour away within Harris county. Plus moving a little east of Houston on I-10 towards Winnie gets you lower land prices and even closer to the beach. I wouldn't advise them to even think of moving anywhere south of Houston on I-45. That area is super congested. I mean Northern Virginia I-95 style congestion. Houston has the 2 airports you mention plus the ship channel and is a major hub in the trucking industry as well.
I'm betting they go to Texas…
I'm not taking any bets. The only thing that might change that would be if I knew Mark Malkowski's preferred summer vacation spot. A lot of Northerners – just like us Southerners – like the Grand Strand of SC.
I was more than a little surprised when Myrtle Beach was chosen by PTR and very surprised when I heard that Stag was investigating it.
If Stag Arms exports a lot of their stuff (not necessarily a majority, but at least a sizeable minority), then I would think that Horry County would be a better choice because it would be close to the ports of Charleston and Wilmington, making shipping easier and cheaper.
If, OTOH, they serve primarily/exclusively a domestic US market, then it's Texas all the way. No income tax, reasonably direct access to 2 major interstates (Horry County will get 2 interstates — I-73 and I-74 — in a couple of decades), a major airport, a major seaport, no income taxes, …
You forgot the major East Coast north-south route I-95 which is about an hour away from Horry County.