Archive for December 2015

Another California Company to Expand Big Time – in Texas

December 23, 2015

Breaking news from the Austin American Statesman:

Oracle Corp. will build a huge, new corporate campus on 27 acres in Austin. With the new campus, Oracle plans to grow its Austin workforce by 50 percent over the next few years. The move expands the presence of another rapidly growing California-based technology giant in Central Texas, as companies including Apple Inc., Google and Facebook are aggressively ramping up their workforces there.

Seal_of_Austin,_TXIn addition to its new 560,000-sq. ft. campus, the deal also includes a adjacent 295-unit luxury apartment complex that will be a housing option for Oracle employees. Scott Armour, senior vice president of Oracle Direct, the firm’s cloud sales organization, said, “Our state-of-the-art campus will be designed to inspire, support and attract top talent – with a special focus on the needs of millennials.”

Jobs at the new campus will be primarily sales-oriented, lead qualification, prospecting and technical support. Founded in 1977, Oracle, one of the world’s leading software companies, is based in Redwood City in San Mateo County.

See the full story at: Shonda Novak and Lori Hawkins, Software giant Oracle to build major Austin campus, add employeesAustin American Statesman, Dec. 22, 2015.

One focus of this blog has been to address California’s perennially difficult business environment. Joseph Vranich is known as The Business Relocation Coach while the formal name of his business is Spectrum Location Solutions. Joe helps companies find great locations in which to grow. Also, Joe has been a Keynote Speaker for more than 20 years – see A Speaker Throughout the U.S. and in Europe and Asia.

 

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Top Destination for California Company Relocations: Texas

December 9, 2015

Today, the Dallas Morning News published a big spread online about businesses migrating from California to Texas. The story is based on our new study of 9,000 companies leaving California in the last seven years “with about 15 percent finding a home in the more business-friendly Lone Star state.” (The print version will appear sometime next week.)

California FlagExcerpts:

“This report echoes what businesses that relocate to Texas continue to say – they are sick and tired of being over-taxed and over-regulated and are making the economically sensible choice to move to Texas,” said John Wittman, deputy press secretary for Texas Gov. Greg Abbott’s Office.

Texas Flag“Texas is an easier place in which to conduct a business,” said Joseph Vranich, president of Spectrum Location Solutions in Irvine, Calif. “Why is that so? A lot of people think it’s taxes, but in my view the No. 1 benefit is an easier regulatory environment. California’s regulatory regime is so harsh that it causes companies to look at all kinds of states to go to.”

California … is one of the costliest states in which to do business, with expenses 20 percent to 35 percent higher than other states, Vranich says.

Of all U.S. cities, Austin was No. 1, gaining 86 California corporate sites or expansions. Dallas ranked sixth (20 companies), San Antonio was No. 8 (16), Houston was No. 11 (11), Plano and Irving tied with Hillsboro, Ore., for No. 13 (9) and Fort Worth tied with Tempe, Ariz., for No. 14 (8).

The online version has a drop-down menu that permits searches by year, company, city, industry and product/service.

See the full Dallas Morning News story here.

One focus of this blog has been to address California’s perennially difficult business environment. Joseph Vranich is known as The Business Relocation Coach while the formal name of his business is Spectrum Location Solutions. Joe helps companies find great locations in which to grow. Also, Joe has been a Keynote Speaker for more than 20 years – see A Speaker Throughout the U.S. and in Europe and Asia.

 

IBD: ‘High-Tax California Still Losing Thousands Of Businesses’

December 2, 2015

Investor’s Business Daily, citing our latest study, begins an editorial by stating, “To hear its media and political elites tell it, California is back on its golden path to long-term prosperity. But a new study suggests the state will suffer as thousands of businesses flee. Both can’t be right.” A few excerpts from the editorial:

IBD Graph Nov 2015 editorial with borderAs America’s most populous and wealthy state, California, has a lot going for it. But a new study from business location consultant Joseph Vranich suggests it is hemorrhaging both businesses and jobs at an alarming rate — even as it remains home to an estimated one-third of the nation’s welfare recipients.

“In California, costs to run a business are higher than in other states and nations — largely due to the state’s tax and regulatory policies — and the business climate shows little chance of improving,” Vranich writes.

The study is impressive for its size — nearly 300 pages — and thoroughness. Vranich focuses on what he calls “California divestment events” — decisions by homegrown businesses to move elsewhere or not to expand in-state, plus non-California firms that changed their minds about coming.

Vranich counted some 1,510 such events from 2008 to 2014 and says that figure probably undercounts actual divestment by a factor of 5-to-1. So the real level is likely somewhere north of 9,000….

In some areas today, including Los Angeles, it’s nearly impossible to build a manufacturing facility because of environmental concerns. So those jobs go elsewhere — to low-tax, pro-business Texas, Nevada, Idaho, Utah, Oregon, the Deep South and, increasingly, to foreign countries including Mexico, China and India. …

[Voters would] be much better off if they stopped listening to progressive politicians who are systematically ruining the state and started listening to those more in tune with economic reality. Like Joe Vranich.

See the complete editorial here.

One focus of this blog has been to address California’s perennially difficult business environment. Joseph Vranich is known as The Business Relocation Coach while the formal name of his business is Spectrum Location Solutions. Joe helps companies find great locations in which to grow. Also, Joe has been a Keynote Speaker for more than 20 years – see A Speaker Throughout the U.S. and in Europe and Asia.