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SEPTEMBER 2005
![]() ![]() Oklahoma: An Editorial Survey (cover) Once They Get Here Textbook Case: Universities and the Telecom Cluster Are on the Same Page (sidebar) Perception Is Not Reality How Innovation Becomes Commercialization (sidebar) Business Climate Brightens Research Campus Key to City's Health Science Hub (sidebar) Reporting for Duty; 'Coopetition' Is Key to Aviation Cluster Success (sidebar) Oklahoma City Re-"MAPS" Its Future (sidebar) Today's Forecast Calls for a New Industry Cluster (sidebar) How Tulsa Is Funding a Metropolitan Makeover (sidebar) Business Cost Advantage Thank You, Texas Distribution Center Locations Abound CSI: Edmond (sidebar) Making the Workforce Competitive Wind Joins the Energy Cluster A New Day for Oil and Gas Pryor Claims Part of the NAFTA Corridor Request Information ![]() |
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Thank You, Texas
Workers in Durant and other communities along the Oklahoma-Texas border need to weigh the cost benefits of working in one state rather than the other. Oklahoma has a 6-percent state income tax, whereas Texas has no state income tax. But property taxes in the Sooner State are significantly lower than those of Texas. "Texas' no-state-income-tax pitch is deceiving, because they get you in a lot of other ways, especially real estate tax," notes Frank Simpson, facility manager at the Big Lots center. "I took an actual pay cut but ended up making more money coming to Oklahoma, because there are so many things, such as automobile insurance, that are less expensive here. If you go south into Sherman, Texas, your auto insurance goes up dramatically, as does your homeowner's insurance."
Cardinal Glass is another major Durant employer and newcomer to the state; it supplies Anderson Windows, Marvin Windows and others with insulated glass for the residential housing market. The plant serves the southern and southwestern markets and is the fourth float glass plant to open in the past several years in the U.S. The plant's proximity to Texas is particularly fortuitous, explains Larry Peck, human resource manager. "The state of Texas helped us immensely by passing legislation that says any new construction or remodeling activities that occur in Texas must be insulated glass units, which is what we do best." Cardinal windows that are coated can result in energy savings of 35 percent, he points out. The plant employs 285 people, and Peck acknowledges working hard to fully staff the facility. "We continue to churn the bottom five to 10 percent," he notes, which is due in part to a shift schedule that requires workers to work nights. Rail access for bringing raw materials into the plant was a key location consideration, given the huge quantities of sand and other materials needed for glass manufacturing. "We were able to find Cardinal a location where their northern property line is the railroad track," says John Cathey, Chairman of the Durant Industrial Authority. "We were able to get a community development block grant to provide the railroad spur to the west side of the building." Equally important is energy, says Peck, which runs about $775,000 per month at the Durant facility. "One of the reasons we're here," adds John Schuster, production manager, "is that this area wanted a plant like this, and they provided a lot of extra financial support to make it attractive to come here as opposed to some Texas locations, which are a bit closer to our main customer. Their tax structure made it such that it would cost us quite a bit more a year about $1 million to be there than to be here," he notes. |
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