Instead, the big news on the energy front has been the revolution in fossil fuels, thanks to hydraulic fracturing and other improved energy-exploration tools. This has produced huge new supplies of natural gas in a half-dozen states, sending its price tumbling and prompting major European firms like BASF and Royal Dutch Shell to move manufacturing to the U.S. — something that would have seemed unthinkable a few years ago.
But such European firms have no interest in manufacturing in California. It is simply not cost-competitive with many other areas in the U.S. — a fact the Apple decision underscores.
This should matter to Californians no matter their politics. Our economy needs middle-class jobs in general — and it desperately needs middle-class jobs for those without a college education. Manufacturing has long been a key source of such jobs. A 2009 study found manufacturing jobs paid 70 percent better that nonfarm jobs in California.
Sunday, May 26, 2013
Apple builds in Texas, not California
I mentioned this before. But this article goes into one of the possible reasons.