69 more firms move jobs, facilities out of California
April 15th, 2011, 3:00 am
So far this year, 69 companies have moved all or part of their California work and jobs to other states or countries, reports Irvine relocation consultant Joe Vranich.
It’s the fastest rate of departures since Vranich started tracking the exodus in 2009, he says. There have been an average of 4.7 moves per week from Jan. 1 through April 12, compared to 3.9 moves in all of 2010.
The numbers are low, Vranich says, estimating that only one in five out-of-state moves is made public.
In what he calls “disinvestment events,” Vranich counts companies that move jobs, facilities or headquarters out of California. He doesn’t count companies that invest outside the state for growth or marketing reasons.
Among the 69 are some big names: CKE Restaurants, which started in Orange County and now is based in Carpinteria; Dunn-Edwards paints in Vernon; and eBay Inc. in San Jose which will add 1,000 high-paying jobs in Austin, Texas after receiving government incentives to locate there.
Eleven Orange County companies are on this latest list:
- Acacia Research Corp in Irvine moved its core business to Frisco, Texas
- AccentCare in Irvine moved its headquarters to Dallas
- Alstyle Apparel Inc. in Anaheim closed its local manufacturing plants and moved the work to Agua Prieta, Mexico
- Biocentric Energy Holdings Inc. in Santa Ana moved its corporate facility and testing center to Salt Lake City
- The new owner of Claim Jumper and Bubba Gump Shrimp Co. restaurants moved the headquarters for both chains to Houston
- Dharma Construction Services in Costa Mesa is moving its headquarters to Louisville, Ky.
- Hyundai Capital America in Irvine is tranferring 71 jobs to Georgia and Texas
- Legacy Electronics is moving from San Clemente to Sioux Falls, S.D.
- Rockwell Collins in Irvine is transferring its electromechanical systems work to Mexico and Florida
- Tickets.com in Costa Mesa closed its Concord office and is moving the call center and customer service work to Texas
- Wells Fargo Bank is moving 59 jobs from Orange County to India.
Why do these and the other companies move out of California? Vranich has updated his top 10 reasons that California companies call the moving van.
No. 10 is new: Energy costs soaring because of new laws and regulations. Commercial electrical rates are already 50% higher than the rest of the country, Vranich says, and Gov. Jerry Brown just signed a new law increasing the amount of power utilities must buy from renewable sources plus regulations for the California Global Warming Solutions Act will start soon.
The other reasons, Vranich says, are:
9. High and unfair tax treatment
8. Regulatory burden
7. Unfriendly legal environment for business
6. Most expensive place to do business
5. Provable savings elsewhere
4. Public policies and taxes create unfriendly business climate
3. Uncontrollable public spending
2. More adversarial toward business than any other state
1. Poor rankings for California on lists ranging from taxes to crime rates to school dropout rates.
9. High and unfair tax treatment
8. Regulatory burden
7. Unfriendly legal environment for business
6. Most expensive place to do business
5. Provable savings elsewhere
4. Public policies and taxes create unfriendly business climate
3. Uncontrollable public spending
2. More adversarial toward business than any other state
1. Poor rankings for California on lists ranging from taxes to crime rates to school dropout rates.
“There is little evidence that California’s business environment will improve considering that the legislature in 2011 has voted down litigation reform, tax-increase plans are underway, and a host of new regulations are to be implemented that will increase costs for literally every business,” Vranich says.
Source: http://jan.ocregister.com/2011/04/15/more-firms-move-jobs-facilities-out-of-california/57653/
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