In Northern Nevada, they’re getting ready to put on a show bigger than anything in Vegas. This performance is not about cabarets, acrobats, or world-class magicians, and it has nothing to do with belling-ringing jackpots and dice-rolling craps tables. This show is all about business, both small and big, and what happens when a world-class entrepreneur like Elon Musk decides to build a “gigafactory” in your town.
Right now, small businesses across Nevada and the region are making their way to the Reno-Sparks area to get a glimpse — and get in on – the building of what will likely be one of the largest manufacturing plants constructed in recent years. The 5-million-square-foot manufacturing facility will build individual batteries for Tesla Motors vehicles and will employ more than six thousand workers once operational.
Tesla plans on paying its workers about $25 per hour, significantly higher than the average wage in the area for jobs. Some economists think this might speak to a larger trend of manufacturing companies increasing wages for workers in order to reduce turnover and increase retention. Many believe the move to increase wages and payroll funding at the factory will have a ripple effect across the region and beyond.
Invoice Factoring Companies Provide Fast Financing for Construction Projects
Construction of the battery factory has just started. Construction companies and subcontractors have been lining up to put in bids for the massive build. Construction funding is coming from all sorts of places from local and regional banks to invoice factoring companies that can finance the build faster than traditional lending. Because of its position and wealth, Tesla Motors makes an excellent client for the factoring of receivables. Tesla Motors is spending $5 billion in construction and manufacturing financing to build and operate the facility.
Small Business Financing on the Rise as Other Businesses Move in
The building of the colossal manufacturing plant is attracting other businesses to the Northern Nevada area as well. The Regional Economic Development Authority recently stated that the city is averaging more than ten visits per month from prospective companies looking to set up shop. Some local businesses and government officials are concerned about growing too fast and whether the state’s “biggest little city” is ready for it. Most, however, are up for the challenge and are waiting with great anticipation to see how this will all unfold.