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San Antonio:

San Antonio:. Continuing the Toyota Momentum. San Antonio’s Long-Term Commitment to Japan and Toyota. Community decision to target Japanese investment in mid-80s EDF hired Tokyo-based consultant in 1985 Selected key companies with growing U.S. market Sony, Toyota, others.

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San Antonio:

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  1. San Antonio: Continuing the Toyota Momentum

  2. San Antonio’s Long-Term Commitment to Japan and Toyota • Community decision to target Japanese investment in mid-80s • EDF hired Tokyo-based consultant in 1985 • Selected key companies with growing U.S. market • Sony, Toyota, others

  3. February 2003Toyota Selects San Antonio Toyota’s Fujio Cho

  4. State-of-the-art Tundra Plant • $800 million investment by 2006 • Employing 2,000 • Boosting city’s national and international status as manufacturing site

  5. October 2003Toyota Tundra Truck Plant Groundbreaking • Groundbreaking brings new realm of economic development opportunity

  6. EDF Maintains Momentum • Toyota needs on-site suppliers • Efficiency • Quality control • EDF needs on-site suppliers • Fully capitalize on economic development opportunity • Continue development of Southside SA

  7. Developing A Supplier List • EDF identified 500 potential Toyota Tundra parts makers [30,000 Tundra parts] • Helped Toyota identify local opportunities with qualified businesses and service providers • Implemented strategic marketing campaign targeting potential suppliers, telling the San Antonio/Toyota story

  8. Intense Competition • Suppliers could locate up to 1 ½ hours away • Numerous surrounding communities wanted supplier jobs

  9. Strategic Marketing Initiatives • National Advertising Campaign • 2003 – $96,000; 2004 – $102,000; 2005 – $86,000 • 2003 – 19 ads; 2004 – 21 ads; 2005 – 18 ads+ • Direct mail pieces – 2 pieces to more than 700 auto parts manufacturers • Follow-up phone calls • Visits to suppliers’ U.S. headquarters

  10. Workforce Issues • Locating next to Toyota brought concerns • Wage pressures • Losing experienced employees to Toyota and other suppliers • EDF counters concerns • Providing data on the area’s large, available workforce • Emphasizing low cost of doing business • Creating sense of excitement and community for on-site suppliers

  11. Complex Package of Incentives • EDF negotiated incentives with state and local governmental taxing bodies • 100% tax abatement from City and County on real and personal property • Franchise Tax credit • Sales Tax exemption • Financing programs

  12. Incentive Package • Funding for workforce training assistance • Federal Empowerment Zone wage credit • State Enterprise Project Designation

  13. Utilities • EDF assisted with negotiation of special utility agreements • With energy utility City Public Service: • On-site suppliers to buy energy via secondary meters • With San Antonio Water System: • Secondary water metering to eliminate local impact fees

  14. Toyotetsu, supplier of stamped parts “The San Antonio Economic Development Foundation took on many complex tasks involving multiple partners in establishing the on-site supplier park where we decided to locate. The arrangement for secondary utility metering, allowing Toyotestu to benefit from Toyota’s high-use rate, made a big difference in our decision, and made clear the benefits of locating at the plant site.” Herb Krase

  15. Joint Venture Partners: Another Layer • Helping suppliers locate local joint-venture partners • Toyota committed to the community to reflect San Antonio’s diversity • EDF committed to Toyota to assist with identifying minority partners

  16. On-Site Supplier Park • December 16, 2004: EDF joins Toyota, government officials to announce names of on-site suppliers. • Largest concentration at any other North American automotive plant • 50% more local jobs and investment than originally estimated

  17. Supplier Partners • Range from industry giants • Johnson Controls, Inc., Lear, Tenneco, AGC • Regional manufacturers, such as Reyes Automotive and Avanzar Interior Technologies

  18. On-site suppliers AGC Automotive Americas ARK, Inc. Avanzar Interior Technologies Curtis-Maruyasi America, Inc. Futaba Industrial Texas Corp. Green Metals, Inc. HERO Assemblers, LLP HERO Logistics, LLP Metalsa Millennium Steel Service Texas, LLC PPG Industries, Inc. Reyes-Amtex Reyes Automotive Group Takumi Stamping Texas, Inc. Tenneco Automotive Toyoda-Gosei Texas, LLC Toyotetsu Texas Vutex, Inc.

  19. Moving Forward • Continue recruitment of Tier One • Targeting Tier Two suppliers • Focus ads at broader automotive market • Capitalize on manufacturing expertise developing in the San Antonio area

  20. Toyota Motor ManufacturingNorth America, Inc. "Our Texas facility, with its concentration of on-site suppliers, represents a new approach to automotive manufacturing. The San Antonio Economic Development Foundation's role in marketing the city to our suppliers was a major contributor to Toyota attaining our vision of 'Team Texas.' Toyota realized the benefits of San Antonio several years ago, thanks in large part to a lot of hard work from the Foundation. Now our suppliers feel the same way. The Foundation has simply been a great partner for us and our suppliers." Jim Wiseman, Vice President of Corporate Affairs

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