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Merck investing 90MM in San Diego site


By Nomograph   Follow   Thu, 15 Mar 2012, 12:14am PDT   5,461 views   28 comments   Watch (0)   Share   Quote   Permalink   Like   Dislike  

Merck is investing 90MM in a new La Jolla research facility. This is in addition to the recent San Diego expansions at J&J, Pfizer, and Novartis. More investment equals more high-paying jobs and further stabilization of the local housing market.

http://www.utsandiego.com/news/2012/mar/15/merck-invest-90-million-new-research-institute/

I'm convinced that 2009 was the bottom for SD proper. Outlying areas of the county such as near the Mexican border and the eastern deserts may continue to sag, but the city of San Diego is back. Even the city budget is running a surplus for the first time in years...

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elliemae   befriend   ignore   Thu, 15 Mar 2012, 12:28am PDT   Share   Quote   Like (3)   Dislike (1)     Comment 1

Nomograph says

I'm convinced that 2009 was the bottom for SD proper.

Very cool. But to verify, I'd like to see your birth certificate...

San Diego has had its share of problems. It's nice to see jobs coming to town instead of going away.

Nomograph   befriend   ignore   Thu, 15 Mar 2012, 10:29am PDT   Share   Quote   Like (4)   Dislike     Comment 2

elliemae says

I'd like to see your birth certificate...

Nomograph   befriend   ignore   Thu, 15 Mar 2012, 10:30am PDT   Share   Quote   Like (2)   Dislike (1)     Comment 3

According to the people on this site, Merck will be filling this new research institute with burger flippers.

thomas.wong1986   befriend   ignore   Thu, 15 Mar 2012, 10:35am PDT   Share   Quote   Like (2)   Dislike     Comment 4

Nomograph says

Merck is investing 90MM in a new La Jolla research facility. This is in addition to the recent San Diego expansions at J&J, Pfizer, and Novartis. More investment equals more high-paying jobs and further stabilization of the local housing market.

When prices in SD were skyrocketing 10 years ago, and SD already had such R&D facilities, high home prices were said to be justified and would never fall...EVER, BioTech and Qualcom woulld keep prices high forever...

So the same spin again! really pathetic nonsense...

Southland Home Sales Jump in February, Prices Still Down Yr/Yr

http://dqnews.com/Articles/2012/News/California/Southern-CA/RRSCA120314.aspx

San Diego Union Tribune Price per Square Foot Home Sale Chart

http://dqnews.com/Charts/Monthly-Charts/SDUT-Charts/ZIPSDUT%20PPSQ.aspx

freak80   befriend   ignore   Thu, 15 Mar 2012, 10:36am PDT   Share   Quote   Like (2)   Dislike     Comment 5

Can we please give Nomograph some kind of award or something?

CrazyMan   befriend   ignore   Thu, 15 Mar 2012, 10:59am PDT   Share   Quote   Like (3)   Dislike     Comment 6

rofl that site is win.

Nomograph   befriend   ignore   Fri, 16 Mar 2012, 12:13am PDT   Share   Quote   Like (1)   Dislike (1)     Comment 7

thomas.wong1986 says

So the same spin again! really pathetic nonsense...

I'm confused.

You think a new research facility that directly creates 175 high-paying jobs along with a larger number of related support and infrastructure jobs is "spin"?

I think you just like to blurt out negative BS, Mr. Wong.

tatupu70   befriend   ignore   Fri, 16 Mar 2012, 12:19am PDT   Share   Quote   Like   Dislike     Comment 8

Nomograph says

I think you just like to blurt out negative BS, Mr. Wong.

I thought it was Mr. Wongstein.

Nomograph   befriend   ignore   Fri, 16 Mar 2012, 12:19am PDT   Share   Quote   Like   Dislike     Comment 9

BTW, cutting-edge tech and biotech companies flock to San Diego to access the highly skilled labor pool. Here are some examples:


BioNanomatrix Moves HQ and Nano-Scale Analysis Technology to San Diego

http://www.xconomy.com/san-diego/2011/06/15/bionanomatrix-moves-hq-and-nano-scale-analysis-technology-to-san-diego/


JOT Automation Inc. Moves U.S. Headquarters to San Diego
Exhibiting at first U.S. trade shows, Medical Design & Manufacturing West and APEX, in February

http://www.bizjournals.com/prnewswire/press_releases/2012/01/31/LA44120


Applied Proteomics Moves Headquarters to Torrey Pines

http://www.sdbj.com/news/2012/feb/08/applied-proteomics-moves-headquarters-torrey-pines/

You get the picture.

Nomograph   befriend   ignore   Fri, 16 Mar 2012, 12:21am PDT   Share   Quote   Like (3)   Dislike     Comment 10

tatupu70 says

I thought it was Mr. Wongstein.

I demand to see his birth certificate.

zzyzzx   befriend   ignore   Fri, 16 Mar 2012, 4:59am PDT   Share   Quote   Like   Dislike     Comment 11

http://www.breitbart.com/Big-Government/2012/03/13/exodus-california-tax-revenue-plunges-by-22

Compared to last year, State tax collections for February shriveled by $1.2 billion or 22%. The deterioration is more than double the shocking $535 million reported decline for last month. The cumulative fiscal year decline is $6.1 billion or down 11% versus this period in 2011.

California politicians seem delusional in their continued delusion that high taxes have not savaged the State’s economy. Each month’s disappointment is written off as due to some one-time event.

Derisively referred to as “Taxifornia” by the independent Pacific Research

Institute, California wins the booby prize for the highest personal income taxes in the nation and higher sales tax rates than all but four other states. Though Californians benefit from Proposition 13 restrictions on how much their property tax can increase in one year, the state still has the worst state tax burden in the U.S.

California Governor Jerry Brown’s answer to the State’s failing economy and crumbling tax revenue is to place a $6 billion tax increase initiative on the ballot to support K-12 public schools. He promises to only “temporarily” raise personal income rates by 25% on any of the rich folk who haven’t already left.

Spectrum Locations Consultants recorded 254 California companies moved some or all of their work and jobs out of state in 2011, 26% more than in 2010 and five times as many as in 2009. According SLC President, Joe Vranich: the “top ten reasons companies are leaving California: 1) Poor rankings in surveys 2) More adversarial toward business 3) Uncontrollable public spending 4) Unfriendly business climate 5) Provable savings elsewhere 6) Most expensive business locations 7) Unfriendly legal environment for business 8) Worst regulatory burden 9) Severe tax treatment 10) Unprecedented energy costs.

Vranich considers California the worst state in the nation to locate a business and Los Angeles is considered the worst city to start a business. Leaving Los Angeles for another surrounding county can save businesses 20% of costs. Leaving the state for Texas can save up to 40% of costs. This probably explains why California lost 120,000 jobs last year and Texas gained 130,000 jobs.

freak80   befriend   ignore   Fri, 16 Mar 2012, 5:25am PDT   Share   Quote   Like   Dislike     Comment 12

zzyzzx says

Vranich considers California the worst state in the nation to locate a business and Los Angeles is considered the worst city to start a business. Leaving Los Angeles for another surrounding county can save businesses 20% of costs. Leaving the state for Texas can save up to 40% of costs. This probably explains why California lost 120,000 jobs last year and Texas gained 130,000 jobs.

Probably true, but for ultra-high-tech businesses, a pool of highly-educated people is needed. Even with all the negatives, CA still has a few pools of high-skilled labor. Of course, so does Austin, TX and a few other areas of that state.

So yes, CA does need to be aware that there's competition. CA needs to get its house in order. But I think high-tech industry will still be able to thrive there.

thomas.wong1986   befriend   ignore   Fri, 16 Mar 2012, 11:10am PDT   Share   Quote   Like   Dislike     Comment 13

tatupu70 says

I thought it was Mr. Wongstein.

Wongucci!

thomas.wong1986   befriend   ignore   Fri, 16 Mar 2012, 11:21am PDT   Share   Quote   Like   Dislike     Comment 14

Nomograph says

I'm confused.
You think a new research facility that directly creates 175 high-paying jobs along with a larger number of related support and infrastructure jobs is "spin"?
I think you just like to blurt out negative BS, Mr. Wong.

175... those are very impressive numbers!

Apple invests $304 million to add 3,600 new jobs in Austin, Texas

http://9to5mac.com/2012/03/09/apple-invests-304-million-to-add-3600-new-jobs-in-austin-texas/

Apple may not be hosting a temporary store this year at SXSW in Austin, Texas, but it is investing $304 million to increase its presence in the state by up to 3,600 employees. According to a statement from the State of Texas and Gov. Rick Perry, Apple’s new Austin campus will “double the size of Apple’s workforce” in the state for customer support and other administrative positions over the next decade. In exchange, cash-strapped Apple will benefit from $21 million over 10 years through the Texas Enterprise Fund. While it is mainly administrative positions mentioned in the statement, we reported in December that Samsung’s new $3.6 billion factory in Austin is now producing almost only Apple’s A5 chip for iPhone 4S and iPad 2. Gov. Perry said the following about today’s announcement:

thomas.wong1986   befriend   ignore   Fri, 16 Mar 2012, 11:40am PDT   Share   Quote   Like   Dislike     Comment 15

In the mean time we spend most of our corporate expenditures on high salaries due to high home prices and rents... which isnt the case for Texas companies.. Therefore they can save and expand with acquisitions of other companies. They grow we shrink!

Dell Is Said to Pass Over Brocade Before Acquiring Force10
Jul 20, 2011 1:49 PM PT

Dell acquires SonicWall, beefs up security software
March 13, 2012, 5:51am PDT

Summary: With the acquisition of SonicWall, Dell delves into the security software market a bit more.

http://www.zdnet.com/blog/btl/dell-acquires-sonicwall-beefs-up-security-software/71433

thomas.wong1986   befriend   ignore   Fri, 16 Mar 2012, 11:51am PDT   Share   Quote   Like (1)   Dislike     Comment 16

Nomo, your a civilan, you have no idea what is happening.

ON THE RECORD
CARL GUARDINO
Sunday, May 13, 2007
.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/05/13/BUG91PO3US1.DTL&ao=all#ixzz1pKo0Lkn6

Q: So are those really challenges?

A: Unequivocally, yes. Not only to the CEOs in the boardroom, but to any family you talk to in their living room. What we hear time after time from CEOs as well as frontline employees is how incredibly difficult it is to come here and stay here. That truly does have an impact on a company's bottom line when the cost differential is so much higher here than it is in other regions around the state, nation and globe, or the ability to recruit top talent is also impacted.

You mentioned housing. It probably is the top concern we hear about in Silicon Valley from both CEOs and employees in terms of local issues. Does that have an impact? Let me put a finer point on it.

Hewlett-Packard and Dell are the top two computer-makers in the world. Corporate headquarters for HP are located in Palo Alto and Dell is in Round Rock, Texas. Obviously, they both have people and facilities around the globe.

In those two communities where their corporate headquarters are and where a lot of research and development takes place, the median resale price for a home in Palo Alto is about $1.6 million. In Round Rock, Texas, it's about $180,000, except the home and property are bigger.

We hear from HP all the time that a huge deterrent to the ability to recruit and retain people anywhere near Silicon Valley is the housing issue. We don't hear that from Dell, which is also a member company, about their operations in Round Rock. It does continue to plague us and we will continue to sound the alarm

Q: What about looking at Silicon Valley from a global perspective? When you look at a country like China that is growing so quickly -- offering companies extremely cheap labor and manufacturing costs -- how do you compete?

A: It's incredibly difficult. We have to separate the issues around global competitiveness in terms of why companies would be located in China or India or Russia or other points around the globe for sound business reasons, and I'll mention a few of those: access to customers, supply chain, raw materials, etc., which are the traditional reasons why companies would be located around the globe and they are solid reasons.

Then there are other reasons around cost that we can't ignore. A fully loaded engineer in Silicon Valley costs X and it's about a tenth of X in China and close to that in India. And they are often as well educated, entrepreneurial and as hungry as the people who graduate here. Those are tremendous challenges and are one of the reasons why companies continue to place facilities and people around the globe.

Q: How far up the intellectual food chain does this outsourcing go?

A: It is moving further and further up the value chain. Research and development is done primarily here (in the valley), but even that, as it follows manufacturing, is going around the globe as well. Those are very real challenges that are of deep concern to many of our executives. That again diminishes that middle class that has always been the essence of California's and America's strength.

thunderlips11   befriend   ignore   Sat, 17 Mar 2012, 4:37am PDT   Share   Quote   Like (1)   Dislike     Comment 17

Why didn't Merck open up this facility in Mississippi? Low Taxes and Wages there, much better business climate than California. Guess those Merck socialists love paying taxes.

Nomograph   befriend   ignore   Sat, 17 Mar 2012, 9:39am PDT   Share   Quote   Like   Dislike (1)     Comment 18

thomas.wong1986 says

Nomo, your a civilan, you have no idea what is happening.

I'm REALLY confused now, Mr. Wong.

Are you saying that Merck isn't building a brand new research institute in San Diego that will employ 175 scientists and create many more support jobs?

thomas.wong1986   befriend   ignore   Sat, 17 Mar 2012, 1:18pm PDT   Share   Quote   Like (1)   Dislike     Comment 19

San Diego RE agents have been pushing the Biotech will keep prices up in San Diego for a long time..but prices have fallen.. your comments are pretty much akin to that.

MoneySheep   befriend   ignore   Sat, 17 Mar 2012, 1:31pm PDT   Share   Quote   Like   Dislike     Comment 20

tw1986, SD house prices have been holding steady and may be minutely climbing since Mar 2009. Honestly, I have been praying for prices going down. I do agree that those Biotech jobs keep prices afloat.

thomas.wong1986   befriend   ignore   Sat, 17 Mar 2012, 2:32pm PDT   Share   Quote   Like   Dislike     Comment 21

The turn around on BioTech is extremely long. Unlike SV semi software or storage tech which is from 1-3 years, BT can last 10-15 years with FDA testing. So you have to stretch that investment dollar wisely and be frugal.

Nomograph   befriend   ignore   Sat, 17 Mar 2012, 2:48pm PDT   Share   Quote   Like   Dislike     Comment 22

thomas.wong1986 says

San Diego RE agents have been pushing the Biotech will keep prices up in San Diego for a long time.

I'd ask you to provide a single example of this, but we both know you won't.

thomas.wong1986 says

The turn around on BioTech is extremely long. Unlike SV semi software or storage tech which is from 1-3 years, BT can last 10-15 years with FDA testing.

You obviously don't understand biotech, the business models, or the concept of exit points. Try thinking outside of your little semiconductor box.

thomas.wong1986   befriend   ignore   Sat, 17 Mar 2012, 4:57pm PDT   Share   Quote   Like   Dislike     Comment 23

Nomograph says

I'd ask you to provide a single example of this, but we both know you won't.

Read about it ooh too many times... and lots of friends from SD hear the same thing.

Biotech is not a silver buillet which will keep prices higher.. we already seen many go under even in NorCal, not to mention all the lawsuits they lose.

thomas.wong1986   befriend   ignore   Sat, 17 Mar 2012, 5:11pm PDT   Share   Quote   Like   Dislike     Comment 24

Nomograph says

Try thinking outside of your little semiconductor box.

Semi's will be around for a very very long time and will impact every business and industry using computing and telecom products ~ Aerospace, Banking, Commerce, Broadcasting, Medical, Heavy Industry, Defense, Auto, Education, Consumer and many more.

freak80   befriend   ignore   Sat, 17 Mar 2012, 5:22pm PDT   Share   Quote   Like   Dislike     Comment 25

Agree. Without semi's, how is all of the stuff we build going to get shipped around the country? On rickshaws?

Oh wait. Wrong "semi's."

SciLaw   befriend   ignore   Sat, 17 Mar 2012, 5:32pm PDT   Share   Quote   Like (3)   Dislike     Comment 26

There's a lot of BS in this thread.

Since I use to live in Austin, I'm pretty sure I can opine on Round Rock. It's around as nice as living in....Lafayatte or Martinez. Middle of nowhere, on the way to Waco. It may be attractive to middle management but young talent is harder to attract. You think a Harvard, Stanford, MIT grad is chomping at the bit to get to Round Rock? Try again.

If Austin was that attractive, I wonder why Riverbed, Nvidia, Netsuite, Salesforce don't just up and leave. The talent attraction is an issue.

As for biotech (which I'm currently in), there are 6 main cities: Boston, DC, Research Triangle, Seattle, SF, and SD. RTP has the cheapest real estate and yet is also the weakest one in terms of development. Duke can't sustain that area as well as Stanford, UCSF, Berkeley here in SF or UCSD, Scripps, Burnham down in SD, or Harvard/MIT/BU/BC in Boston. Austin will never have biotech since there's no med school in that area. It doesn't matter if a company goes down, others have to take their place for drugs to get developed and they will be mainly be in these cities.

As a long time lurker, I find a lot of the current posters to be fairly myopic and pedantic (like the one poster who keeps on commenting that his rent hasn't been raised in 9 years and he and his wife lives with a roommate that isn't around---so what? Does he think we can post on craigslist that we want a guarantee of no rental increases and a roommate that won't be around). It's amazing to see the folks who are outliers here pretend that they're the norm.

What is very common in the Bay Area are two income highly educated couples that can easily pull in over 200k. No one is going to pull the plug if the talent won't move and a lot of the talent here won't move to cities in Texas.

Nomograph   befriend   ignore   Sun, 18 Mar 2012, 12:33am PDT   Share   Quote   Like   Dislike     Comment 27

thomas.wong1986 says

Nomograph says

I'd ask you to provide a single example of this, but we both know you won't.

Read about it ooh too many times... and lots of friends from SD hear the same thing.

Like I said, asking you to provide an example is just too much.

thomas.wong1986 says

Semi's will be around for a very very long time and will impact every business and industry using computing and telecom products ~ Aerospace, Banking, Commerce, Broadcasting, Medical, Heavy Industry, Defense, Auto, Education, Consumer and many more.

Manufacturing semiconductors is rote and transporting the product is trivial. It will be done cheaply in Asia, which is why production hasn't just left CA, it's left Texas as well.

This isn't the 1960's, Mr. Wong. Time to update your mindset.

Nomograph   befriend   ignore   Sun, 18 Mar 2012, 12:38am PDT   Share   Quote   Like   Dislike     Comment 28

SciLaw says

As a long time lurker, I find a lot of the current posters to be fairly myopic and pedantic

That would be me.

SciLaw says

As for biotech (which I'm currently in), there are 6 main cities: Boston, DC, Research Triangle, Seattle, SF, and SD. RTP has the cheapest real estate and yet is also the weakest one in terms of development. Duke can't sustain that area as well as Stanford, UCSF, Berkeley here in SF or UCSD, Scripps, Burnham down in SD, or Harvard/MIT/BU/BC in Boston. Austin will never have biotech since there's no med school in that area. It doesn't matter if a company goes down, others have to take their place for drugs to get developed and they will be mainly be in these cities.

Bingo. Biotech and other high-tech industries aren't about cheap land, they are about accessing the latest discoveries while recruiting and retaining the best possible talent.

We're not making frisbees here, folks.

SciLaw says

SciLaw

Patent law is another highly lucrative (albeit boring) field that has plenty of opportunity in CA. One doesn't even need a law degree to practice before the USPTO; a BS degree in science or engineering allows you to take the patent bar and practice as a patent agent, although you cannot litigate obviously.

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