Energy Industry Layoffs and Strikes (Houston: apartment complexes, renters, renewal)

[TexasTony]

Originally Posted by guesthouston

Not only semiconductor industry, if you look at existing IT departments of energy companies in Houston, they are largely occupied by Indian Outsourcing companies.

There is a reason for this or apparently we have been told that this is due to shortage in skilled professionals but I personally don't buy that. I hold the companies equally responsible rather than the government for trying to exploit this loophole to increase their profits.

Each Company might have different outlook on this issue. But at the end of the day it all comes down to increasing shareholders dividends and increasing profit margins. Unless it is a silicon valley tech organization, IT budget is always the lowest and there is constant pressure from top to cut it down further.
One of the easiest way to cut down costs is to hire cheap labor. Hence go the H-1 B route or outsourcing route. This strategy might not work for marketing, or legal department but its tried and tested in IT.

[Dopo]

Originally Posted by TexasTony

There is a reason for this or apparently we have been told that this is due to shortage in skilled professionals but I personally don't buy that. I hold the companies equally responsible rather than the government for trying to exploit this loophole to increase their profits.

I know conservatives here are going to say that this is not true.... but here it is


Toyota, Moving Northward - July 2005

What made Toyota so sensitive to labor quality issues? Maybe we should discount remarks from the president of the Toronto-based Automotive Parts Manufacturers' Association, who claimed that the educational level in the Southern United States was so low that trainers for Japanese plants in Alabama had to use "pictorials" to teach some illiterate workers how to use high-tech equipment.

But education is only one reason Toyota chose Ontario. Canada's other big selling point is its national health insurance system, which saves auto manufacturers large sums in benefit payments compared with their costs in the United States.


More ...

Spoiler

You might be tempted to say that Canadian taxpayers are, in effect, subsidizing Toyota's move by paying for health coverage. But that's not right, even aside from the fact that Canada's health care system has far lower costs per person than the American system, with its huge administrative expenses. In fact, U.S. taxpayers, not Canadians, will be hurt by the northward movement of auto jobs.

To see why, bear in mind that in the long run decisions like Toyota's probably won't affect the overall number of jobs in either the United States or Canada. But the result of international competition will be to give Canada more jobs in industries like autos, which pay health benefits to their U.S. workers, and fewer jobs in industries that don't provide those benefits. In the U.S. the effect will be just the reverse: fewer jobs with benefits, more jobs without.

So what's the impact on taxpayers? In Canada, there's no impact at all: since all Canadians get government-provided health insurance in any case, the additional auto jobs won't increase government spending.

But U.S. taxpayers will suffer, because the general public ends up picking up much of the cost of health care for workers who don't get insurance through their jobs. Some uninsured workers and their families end up on Medicaid. Others end up depending on emergency rooms, which are heavily subsidized by taxpayers.

[guesthouston]

[quote=Dopo;43130339]I know conservatives here are going to say that this is not true.... but here it is


Toyota, Moving Northward - July 2005

[i]What made Toyota so sensitive to labor quality issues? Maybe we should discount remarks from the president of the Toronto-based Automotive Parts Manufacturers' Association, who claimed that the educational level in the Southern United States was so low that trainers for Japanese plants in Alabama had to use "pictorials" to teach some illiterate workers how to use high-tech equipment.

But education is only one reason Toyota chose Ontario. Canada's other big selling point is its national health insurance system, which saves auto manufacturers large sums in benefit payments compared with their costs in the United States.


July 2005 article ? It is 10 years old article my friend. A lot has happened after that.

[gwarnecke]

Originally Posted by guesthouston

July 2005 article ? It is 10 years old article my friend. A lot has happened after that.

Including Toyota moving their US HQ from California to Texas. They certainly didn't do it for the weather...

[Chicken_of_Bristol]

As expected, Houston is slowing down significantly.

Houston building permits fall 31 percent - Houston Chronicle

[energyminion]

Originally Posted by Chicken_of_Bristol

As expected, Houston is slowing down significantly.

Houston building permits fall 31 percent - Houston Chronicle

This is truly startling. The article says there are 30,000 apartment units under construction. But only 4,380 needed?!?

[Chicken_of_Bristol]

Originally Posted by energyminion

This is truly startling. The article says there are 30,000 apartment units under construction. But only 4,380 needed?!?

Prices are going to drop like a stone and a lot of companies and investors that built those "luxury" apartments assuming $100 oil are going to lose their shirt.

[geolvl]

Let's just hope all the monstrosities get finished. At least they're mostly 1 bedrooms and won't fulfill Section 8 requirements or there goes neighborhood!

[gwarnecke]

It's not like the new $2000/month apartments will start offering $500/month rent overnight.

The $2000/month apartments will drop to $1500/month.
The $1500/month apartments will drop to $1000/month.
The $1000/month apartments will drop to $750/month.

Etc. Things will get ugliest at the lowest end of the apartment market in Houston, but they're usually ugly already.

[Dopo]

Originally Posted by guesthouston

July 2005 article ? It is 10 years old article my friend. A lot has happened after that.

Funny, nobody ever says that when they quote Reagan's policies from 30 years ago