Posted tagged ‘California Taxes’

Another Company Moves Headquarters Out of California – This Time it’s Irvine

February 11, 2017

AutoAlert, an Irvine, Calif.-based tech firm, announced today that it’s planning to relocate its headquarters to Kansas City, Missouri. The firm offers automotive software tools for management and communications.

missouri-state-sealWith plans to create 300 area jobs in coming years, AutoAlert CEO Mike Dullea said, “Our company is raising the bar to bring high paying tech jobs right to the heart of Kansas City. AutoAlert’s Kansas City headquarters will be operational in the spring of 2017. It seems the company is wasting no time in heading to the Midwest.

The firm will maintain an office in Irvine, the size of which is unspecified.[1]

“Just got off the phone with the CEO of AutoAlert,” Missouri Gov. Eric Greitens said in a release. “We had a great conversation. He told me that because of new policies like Right to Work, which show our commitment to growing our economy, they are excited to bring their business here and create jobs. This is what you sent me here to do, and I’m proud to say that we are getting results for you.”[2]

Dullea said, “As a tenured CEO I have never received such a personal call from a governor to thank me. The efforts and words of Governor Greitens say a lot about him and the type of leadership we can expect to see moving forward.”[3]

[1] Source: Bobby Burch, “Cali tech firm AutoAlert to create 300 Kansas City jobs, Startland, Feb. 10, 2017 http://www.startlandnews.com/2017/02/cali-tech-firm-autoalert-relocates-kc-creating-300-jobs/

[2] Source: Rob Roberts,”California tech firm will move HQ, create 300 jobs in downtown KC,” Kansas City Business Journal, Feb. 10, 2017 http://www.bizjournals.com/kansascity/news/2017/02/10/california-tech-firm-moving-hq-creating-300-jobs.html

[3] “AutoAlert Corporate Office to Move: Will Expand to Downtown Kansas City, Mo.,” news release, Missouri Department of Economic Development, Feb. 10, 2017 https://ded.mo.gov/content/autoalert-corporate-office-move-will-expand-downtown-kansas-city-mo

* * *

One focus of this blog has been to address California’s difficult business environment, as described in the study, California Business Departures: An Eight-Year Review 2008-2015, (PDF) updated Jan. 14, 2016.

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.

More California Companies Hearing ‘Move to Our State’ Pitches

October 18, 2016

This proves that for every action there is a reaction: New measures by Gov. Jerry Brown and the California legislature that have worsened our business environment have boosted efforts by other states to recruit California companies to their friendlier locations.

Each visiting out-of-state representative outlines how a California company will benefit by relocating to one of their communities. Economic Development agencies also promote the advantages to California firms of placing future expansions in their areas.

california-precip-map-not-copyrightedAlthough no official records exist regarding recruitment activity in California by economic development organizations, I’ve experienced several hundred touchpoints from parties in far-flung locations wishing to discuss the state’s business environment.

California industries being targeted include financial services, manufacturing, robotics, software, e-commerce, food processing, aerospace, pharma and biotech, plastics, electronics, distribution and even family-owned dairy farms.

In the past, officials from a couple of agencies would contact me every month, but now it’s often two or three times per week.

The states with the highest California-related activity are Texas with 62 agencies, Indiana following at 22 and Arizona at 18. I define activity as visits, phone calls or direct-mail campaigns.

But the true level of activity is greater. For example, organizations in Texas, Nevada and Florida – and economic development agencies in Phoenix, Indianapolis and Pittsburgh – make multiple overtures in California.

The representatives are able to project significant operating cost reductions when it comes to labor, workers’ compensation, unemployment insurance, health care, taxes, facility leases or purchases, regulatory compliance and transportation. Affordable housing in other parts of the country also make it easier for companies to attract and retain employees.

Officials in other states follow activity in Sacramento where Gov. Brown enacted about 800 new laws this year, some of which will result in more regulations and higher tax and energy costs for California companies.

They also are struck by the unfairness of California’s new one-size-fits-all minimum wage law, which forces companies in low-cost areas to pay big-city wages as if they were located in the West Coast’s most expensive cities – Los Angeles and San Francisco. The legislature and Gov. Brown put businesses that face competition from foreign companies at quite a disadvantage.

Without a change in California’s political climate, I expect more inquiries to come in from states seeking to grow their economic base.

The identities of the 247 economic development entities that represent touchpoints with Spectrum Location Solutions are as listed below:

Alabama:

  1. Alabama Power, Mobile
  2. Baldwin County Economic Development Alliance, Robertsdale
  3. North Alabama Industrial Development Association, Decatur
  4. Power South Energy Cooperative, Montgomery

Arizona:

  1. Access Arizona, Casa Grande
  2. Apache Junction Economic Development Dept.
  3. Arizona Commerce Authority, Phoenix
  4. Arizona Public Service (utility), Phoenix
  5. Arizona Sun Corridor, Phoenix
  6. Avondale Economic Development Dept.
  7. Central Arizona Regional Economic Development Foundation, Casa Grande
  8. Gilbert Office of Economic Development
  9. Glendale Office of Economic Development
  10. Greater Phoenix Economic Council
  11. Mesa Economic Development Dept.
  12. Queen Creek Mayor
  13. Salt River Project (utility), Phoenix
  14. Scottsdale Economic Development Dept.
  15. Surprise, AZ City Manager
  16. Tempe Economic Development Dept.
  17. Wickenburg Regional Economic Development Partnership
  18. Yuma Economic Development Dept.

Arkansas:

  1. Office of the Governor

Colorado:

  1. Centennial Economic Development
  2. Colorado Springs Regional Economic Development Corp.
  3. Commerce City Economic Development Dept.
  4. Erie Economic Development Dept.
  5. Longmont Economic Development Partnership
  6. Metro Denver Economic Development Corp.
  7. Office of the Governor
  8. Westminster Economic Development Office

Florida:

  1. Brooksville-Tampa Bay Regional Airport
  2. Enterprise Florida, Orlando
  3. Florida East Coast Railway, Jacksonville
  4. Gulf Power, Pensacola
  5. Hernando County Economic Development Dept., Brooksville
  6. Jacksonville Port Authority
  7. Lake Wells Chamber of Commerce & Economic Development Council
  8. Manatee County Port Authority, Palmetto
  9. Office of the Governor
  10. Orange County Economic Development
  11. Orlando Economic Development Commission
  12. Power South Energy Cooperative, Miramar Beach
  13. Santa Rosa County Economic Development, Milton
  14. Sarasota County Economic Development Corp., Sarasota
  15. Petersburg Area Economic Development Corp.
  16. Tampa Bay Partnership, Tampa
  17. Tampa Hillsborough Economic Development Corp., Tampa

Georgia:

  1. Atlanta Economic Development Corp.
  2. Atlanta Economic Development Dept.
  3. Fayette County Development Authority, Fayetteville
  4. Georgia Dept. of Economic Development, Atlanta
  5. Rabun County Economic Development Authority, Rabun Gap

Idaho:

  1. Coeur d’Alene Area Economic Development Corp.
  2. Grow Idaho Falls Inc.

Iowa:

  1. Iowa Economic Development Authority, Des Moines
  2. Office of the Governor

Indiana:

  1. Bloomington Economic Development Corp.
  2. Carmel Community Relations and Economic Development
  3. Delaware County Economic Development Alliance, Muncie
  4. Duke Energy Economic Development, Indianapolis
  5. Duke Energy Economic Development, Plainfield
  6. East Central Indiana Regional Partnership, Muncie
  7. Fishers Economic Development Dept.
  8. Grant County Economic Growth Council, Marion
  9. Harrison County Economic Development Corp., Corydon
  10. Hoosier Energy Economic Development Dept., Bloomington
  11. Indiana Economic Development Corp., Indianapolis
  12. Indiana Municipal Power Agency, Carmel
  13. Indianapolis Chamber of Commerce
  14. Indy Partnership, Indianapolis
  15. Jackson County Industrial Development Corp., Seymour
  16. Madison County Corp. for Economic Development, Anderson
  17. Noblesville Economic Development Dept.
  18. Northeast Indiana Regional Partnership, Fort Wayne
  19. Office of the Governor
  20. Shelby County Development Corp., Shelbyville
  21. Vectren Economic Development (utility), Evansville
  22. Whitley County Economic Development Corp., Columbia City

Kansas:

  1. Black Hills Energy, Wichita
  2. Go Topeka Economic Partnership

Kentucky:

  1. Bowling Green Area Chamber of Commerce
  2. Hopkins County Economic Development Corp., Madisonville
  3. Kyndle Economic Development for Northwest Kentucky, Henderson
  4. South Western Kentucky Economic Development Council, Hopkinsville

Louisiana:

  1. Baton Rouge Area Chamber
  2. Cleco Power, Crowley
  3. Entergy (utility), New Orleans
  4. Livingston Economic Development Council
  5. Louisiana Economic Development, Baton Rouge
  6. North Louisiana Economic Partnership, Shreveport
  7. Southwestern Electric Power Co., Shreveport

Missouri:

  1. Kansas City Area Development Council
  2. Kirksville Regional Economic Development Inc.
  3. Lincoln County Economic Development, Troy
  4. Missouri Partnership, St. Louis
  5. Moberly Area Economic Development Corp.
  6. Nodaway County Economic Development, Maryville
  7. Northeast Missouri Economic Development Council, Hannibal
  8. Springfield Area Chamber of Commerce
  9. Louis Regional Chamber

Michigan:

  1. Lansing Economic Area Partnership

Mississippi:

  1. Jackson County Economic Development Foundation, Inc. Pascagoula
  2. Mississippi Power, Meridian

North Carolina:

  1. Advantage West Economic Development Group, Fletcher
  2. Beaufort County Economic Development, Washington
  3. Charlotte Regional Partnership
  4. Davidson County Economic Development Commission, Lexington
  5. Duke Energy, Charlotte
  6. Greensboro Partnership Economic Development

New Mexico:

  1. Albuquerque Economic Development
  2. Mesilla Valley Economic Development Alliance, Las Cruces
  3. NM Partnership, Albuquerque

Nevada:

  1. Economic Development Authority of Western Nevada, Reno
  2. Henderson Economic Development Dept.
  3. Las Vegas Global Economic Alliance
  4. Nevada Office of Economic Development, Carson City
  5. Northern Nevada Development Authority, Carson City
  6. NV Energy, Reno

Ohio:

  1. Cuyahoga County Dept. of Development, Cleveland
  2. Greater Akron Chamber
  3. Greater Cleveland Partnership
  4. Jobs Ohio, Toledo
  5. Piqua Economic Development Dept.
  6. Team Northeast Ohio, Cleveland
  7. Tipp City Community and Economic Development Dept.
  8. Youngstown-Warren Regional Chamber

Oklahoma:

  1. Greater Oklahoma City Chamber
  2. Norman Economic Development Dept.

Oregon:

  1. Business Oregon, Eugene
  2. Confederated Tribes of the Umatilla Indian Res., Economic Dept., Pendleton
  3. Greater Portland Inc.
  4. Hillsboro Economic Development
  5. Klamath County Economic Development, Klamath Falls
  6. McMinnville Economic Development Partnership
  7. Port of Portland
  8. Southern Oregon Regional Economic Development, Inc. Medford

Pennsylvania:

  1. Altoona-Blair County Development Corp.
  2. Armstrong County Dept. of Economic Development, Kittanning
  3. Governor’s Action Team
  4. Greater Pittsburgh Chamber of Commerce
  5. Greater Reading Economic Partnership
  6. Penn-Northwest Development Corp., Mercer
  7. Pittsburgh Regional Alliance

South Carolina:

  1. Central South Carolina Economic Development, Columbia
  2. Myrtle Beach Regional Economic Development, Conway
  3. Oconee County Economic Development Commission, Walhalla
  4. Richland County Economic Development, Columbia
  5. Santee Cooper (utility), Moncks Corner
  6. Spartanburg County Economic Futures Group

South Dakota:

  1. Governor’s Office of Economic Development

Tennessee:

  1. East Tennessee Economic Development Agency, Knoxville
  2. HTL Advantage (Haywood, Tipton, Lauderdale), ED Coalition, Covington
  3. Knoxville Chamber
  4. Montgomery County Economic Development Council, Clarksville
  5. Nashville Area Chamber of Commerce
  6. Tennessee Economic & Community Development, Nashville
  7. Tennessee Valley Authority, Nashville
  8. Williamson County Economic Development, Franklin

Texas:

  1. Allen Economic Development
  2. Amarillo Economic Development Corp.
  3. Arlington Economic Development Dept.
  4. Athens Economic Development Corp.
  5. Austin Chamber, Economic Development Dept.
  6. Bastrop Economic Development Corp.
  7. Bay Area Houston Economic Partnership
  8. Bowie Economic Development Corp.
  9. Brownsville Economic Development Council
  10. Buda Economic Development Corp.
  11. Burleson Economic Development
  12. Burlington Northern Santa Fe Railway, Economic Development Dept., Fort Worth
  13. Cedar Park Economic Development
  14. CenterPoint Energy, Houston
  15. Copperas Cove Economic Development Corp.
  16. Dallas Regional Chamber
  17. Denton Economic Development
  18. DeSoto Economic Development Corp.
  19. Flower Mound Economic Development Dept.
  20. Fort Worth Chamber, Economic Development Division
  21. Frisco Economic Development Corp.
  22. Georgetown Economic Development
  23. Greater Houston Partnership
  24. Greater Irving-Las Colinas Chamber of Commerce
  25. Greater Waco Chamber Business Development
  26. Harlingen Economic Development Corp.
  27. Houston Port Region Economic Alliance
  28. Hutto Economic Development
  29. Katy Economic Development Council
  30. Kilgore Economic Development Corp.
  31. Kyle Economic Development
  32. Laredo Development Foundation
  33. Levelland Economic Development Corp.
  34. Lockhart Economic Development
  35. Longview Economic Development Corp.
  36. Lubbock Economic Development Alliance
  37. Matagorda County Economic Development Corp., Bay City
  38. McKinney Economic Development Corp.
  39. Midland Development Corp.
  40. Mount Pleasant Economic Development Corp.
  41. Nacogdoches Economic Development Corp.
  42. New Braunfels Economic Development
  43. Office of the Governor
  44. Oncor (utility), Dallas
  45. Pearland Economic Development Corp.
  46. Plano Economic Development
  47. Port of Houston Authority
  48. Richardson Economic Development Partnership
  49. Rio South Texas Economic Council, Edinburg
  50. Rockwall Economic Development Corp.
  51. Round Rock Chamber Economic Development Partnership
  52. Rowlett Economic Development
  53. San Antonio Economic Development Foundation
  54. San Marcos Partnership Economic Development
  55. Seguin Economic Development
  56. Southern Texas Economic Development Foundation, Beaumont
  57. Sugar Land Economic Development
  58. Team Texas, Austin
  59. Texas Economic Development & Tourism Dept., Austin
  60. Texas Secretary of State
  61. Victoria Economic Development Corp.
  62. Wichita Falls Economic Development

Utah:

  1. Cache County Chamber, Economic Development, Logan
  2. Economic Development Corp. of Utah, Salt Lake City
  3. Office of Economic Development, Salt Lake City
  4. Office of the Governor
  5. Ogden Community and Economic Development Dept.
  6. Weber County Economic Development Partnership, Ogden

Virginia:

  1. Fairfax County Economic Development Authority, Tysons Corner
  2. Hampton Economic Development
  3. Hampton Roads Economic Development Alliance, Norfolk
  4. Isle of Wright County Economic Development, Isle of Wright
  5. Office of the Governor
  6. Portsmouth Economic Development Dept.
  7. Roanoke Regional Partnership
  8. Rockingham County Dept. of Community Development, Harrisonburg
  9. Virginia Beach Economic Development
  10. Virginia Economic Development Partnership, Richmond
  11. Virginia Port Authority, Norfolk
  12. Virginia’s 2000 Business and Economic Development Alliance, Lynchburg
  13. Virginia’s Growth Alliance, Keysville
  14. Washington County Economic Development & Community Relations, Abingdon

Washington:

  1. Greater Spokane Inc.
  2. Port of Sunnyside
  3. Yakima County Development Association

West Virginia:

  1. Jefferson County Development Authority, Charles Town
  2. West Virginia Development Office, Charleston

A state-by-state tally is below:

Rank

State

Number of Organizations
1 Texas 62
2 Indiana 22
3 Arizona 18
4 Florida 17
5 Virginia 14
6 Missouri 9
6 Tennessee 9
8 Colorado 8
8 Ohio 8
8 Oregon 8
11 Louisiana 7
11 Pennsylvania 7
13 North Carolina 6
13 Nevada 6
13 South Carolina 6
13 Utah 6
17 Georgia 5
18 Alabama 4
18 Kentucky 4
20 New Mexico 3
20 Washington 3
22 Idaho 2
22 Iowa 2
22 Kansas 2
22 Mississippi 2
22 Oklahoma 2
22 West Virginia 2
28 Arkansas 1
28 Michigan 1
28 South Dakota 1
Total

247

One focus of this blog has been to address California’s difficult business environment, as addressed in the study, California Business Departures: An Eight-Year Review 2008-2015, (PDF) updated Jan. 14, 2016.

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.

Oh-oh! Jerry Brown’s Clone Might Become President

October 15, 2016

A trusted friend asked me this pointed question: “Do more people find Hillary Clinton unreliable, calculating, deceiving, morally bankrupt and lacking in core beliefs or Donald Trump immature, petulant, unqualified, temperamental and egocentric?”

We will know the answer on election night.

But when it comes to serious issues like job creation, I find it easier to have faith in Trump if he is elected president.

I have no faith in Hillary’s predilection for higher taxes, more regulations and soaring energy costs, which could spark countless jobs moving offshore if she is elected. For evidence, let’s look to California because Mrs. Clinton echoes the business-bashing policies of Gov. Jerry Brown that have driven thousands of jobs out of state.

Mexico has been the top foreign destination for California companies for the last eight years. Jobs have also migrated to India, Costa Rica, Malaysia and many other countries.

California isn’t losing just low-paying jobs like seamstresses and clerks. Companies now issue paychecks in Mexico to people who manufacture automobiles, aerospace parts, respiratory products, electronic components and surgical tools.

I’m experiencing an increase in California companies inquiring about relocating to Mexico – a reaction to the contempt that Gov. Brown and Democrat legislators show toward the private sector. Also, more business leaders exploring non-U.S. locations for their facilities probably reflect their fears that Hillary’s campaign will prevail.

If Mrs. Clinton wins, it’s akin to electing Jerry Brown to the presidency. Seriously, look at the similarities.

Both prefer stacking agencies with appointees looking for “villains” in corporate operations while ignoring labor union excesses. Both will expand Al Gore-like carbon cap-and-trade measures despite job losses, particularly in manufacturing. Both will provide never-ending subsidies to their crony capitalist friends as funds are funneled through the U.S. Energy Dept. and three California agencies – GO-Biz and the film and energy commissions.

Hillary is unlikely to shake up inefficient or fraud-prone agencies in Washington, similar to Gov. Brown’s indefensible lack of action in Sacramento. To them, calcified government is okay.

Will a President Clinton fire members of the National Labor Relations Board for their bullying of companies? No. Will she remove officials from the renegade Consumer Financial Protection Bureau for their unilateral regulatory abuses? No. And let’s not even pretend that she will reform the Justice Department or its FBI component, which turned blind eyes to her security violations.

Gov. Brown and Mrs. Clinton openly embrace Big Government, thereby making it nearly impossible to conduct true reforms.

Their conformity extends to minimum wages. Jerry Brown approved a one-size-fits-all minimum wage statewide, which will hurt companies in the San Joaquin Valley that already have difficulty competing with low-cost foreign challengers. Hillary wants to impose a uniform minimum wage nationwide – as if it costs the same to live in Scranton as it does in San Francisco – an irrational act sure to cause factory closings.

When it comes to expenditures, watch out. Mrs. Clinton will spend billions of dollars on labor-backed boondoggles like Gov. Brown’s pet project, the San Francisco-Los Angeles high-speed rail system – which no longer is high speed.

Under a Hillary-imitates-Brown scenario, dysfunctional federal programs will be preserved. Unneeded projects will be funded. Cost overruns will be ignored. Wrongdoers holding office will keep their jobs.

Companies will need to defend their interests with the persistence of Navy Seals to overcome the anti-business, anti-profit, anti-transparency, pro-union, pro-taxes, pro-spending, pro-regulation, super-leftist zealots that monopolize today’s policy debates.

If Jerry Brown-Hillary Clinton policies prevail, then we will see more jobs move to other nations not just from California but from other states, too.

***

One focus of this blog has been to address California’s difficult business environment, as addressed in the study, California Business Departures: An Eight-Year Review 2008-2015, (PDF) updated Jan. 14, 2016.

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.

 

Los Angeles KTTV Editorial – ‘California Losing Companies & Jobs’

October 7, 2016

Now here is an editorial that gets to the point about California’s business departures, saying, “Governor Brown: Your attitude needs to change…. Creating a climate that is business friendly should come from the top and be a priority.”

ch-11-point-of-view-calif-losing-jobsThe piece runs a lengthy news crawl at the bottom of the screen that shows the names of some of the companies that have relocated in full or in part out of California.

The commentary cites my study issued in January, entitled, “California Business Departures: An Eight-Year Review 2008-2015.”

The views expressed by the station’s Vice President and General Manager, Bob Cook, are in concert with the assessments held by business leaders throughout the state.

See KTTV’s “Point of View: California Losing Jobs.”

* * *

One focus of this blog has been to address California’s difficult business environment, which is worsening under the leadership of Gov. Jerry Brown and his friends in the legislature and bureaucracy.

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.

Case Study: How Politicians Like Sen. Connie Leyva Motivate Companies to Leave California

September 13, 2016

Manufacturing is the number one industry in California to pack up and move to states considered to be friendly to business. Since such losses are happening more frequently, let’s take a look at the record of a politician from a district that will soon lose a major employer. In this case, it’s Senator Connie Leyva who represents Colton.

seal_of_san_bernardino_county_california-svgBut, first things first. Ashley Furniture has announced it will stop manufacturing in Colton and furlough 840 employees.

The company didn’t say that California’s difficult tax and regulatory environment figured into its decision, but I can’t see how any business leader could ignore such factors when deciding whether to stay in or leave the state.

A company statement said that closing the facility will strengthen its production capability and cost structure so as to compete effectively.

The work will be transferred to Wisconsin, Mississippi and North Carolina, all of which have reasonable labor rates, lower workers’ compensation costs, a thoughtful regulatory environment, lower energy costs and a merciful litigation environment.

I have no connection with Ashley Furniture. But in my experience I’m confident that the company could reduce costs by 20-35 percent for each job moved, helping it to remain competitive in the dog-eat-dog retail world.

Consider the experience of Bing Energy, a “green” fuel-cell company, that relocated its headquarters and manufacturing from Chino to Florida.

Bing CFO Dean Minardi said the “tipping point” in his decision was Florida’s friendlier laws and its move to phase out the corporate income tax. Minardi said of eliminating the tax, “It’s huge. The more income a company can keep the more people it can hire…. I just can’t imagine any corporation in their right mind would decide to set up in California today.”

My firm completed a study – California Business Departures: An Eight-Year Review 2008-2015 – that estimates more than 3,000 manufacturers diverted capital out of California because of facility relocations, opting for expansions in other states, or deciding to go elsewhere after considering California.

The difficulty of operating here keeps increasing as our politicians (virtually always Democrats) repeatedly pass costly measures. More tax hikes. More regulations. More fees. More penalties. Much of that translates into bureaucratic harassment.

Ashley Furniture gave employees 60 days notice and met regulations governing layoffs. I’m sympathetic and understand why workers organized a protest in front of an Ashley retail store.

But by protesting at the company’s door, the workers drew attention to the effects of Sacramento’s actions.

It would be nice to see protests at the doors of the politicians who support business-killing, economy-killing, job-killing policies. In other words, speak out against the causes of California’s job losses.

The top political figure I hold responsible for our deteriorating business environment is Gov. Jerry Brown. But he has, for want of a better word, collaborators.

Since Colton has lost jobs before, I decided to examine the work done by the state Senator who represents that community, Connie Leyva. Her website focuses on social issues relating to homeless students; the rights of housekeepers, nannies, and caregivers; and safeguarding children from predators.

All are noble causes, but I didn’t see efforts to boost a business’s prospects for success. In fact, Leyva voted for California’s absurd one-size-fits-all minimum wage, requiring employers in her lower-cost district to pay San Francisco-like high wages, especially when veteran employees demand to be paid more than unskilled workers.

I can’t say that the “Leyva minimum wage” caused Ashley Furniture’s decision, but it’s reasonable to suggest a link between it and the upcoming out-of-state relocation.

According to the California Manufacturers & Technology Association’s legislative scorecard for last year, Leyva has a feeble record of supporting job-creating bills. Another report, one by the California Chamber of Commerce, shows that every time she voted for a business-friendly bill, she voted three times for business-hostile legislation.

As President John F. Kennedy proved years ago, lower taxes boost economic vitality. Thus, it was logical for me to scan the scorecard from the Howard Jarvis Taxpayers Association, which gave Leyva an “F.”

Politicians failed to learn from the event seven years ago when CalPortland Cement closed its plant – also in Colton – because of high state-related costs.

Then, company President James Repman testified that staying in business “is becoming increasingly more difficult due to the myriad of regulations and agencies that oversee every aspect of our business…. The next new plant probably won’t be built in California meaning more good, high paying manufacturing jobs will be lost to Nevada or China or somewhere.”

The biographies for Gov. Brown, Sen. Leyva and most Democrats show that they’ve never run a company. Until voters who want good jobs become wiser about who they elect to office, we will see more businesses leave the state.

* * *

One focus of this blog has been to address California’s difficult business environment, as addressed in the study, California Business Departures: An Eight-Year Review 2008-2015, (PDF) updated Jan. 14, 2016.

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.

 

KFI Audio Clip: Leaving California, Leaving San Francisco, Minimum Wage & More

May 9, 2016

ECC MicrophoneYours truly appeared on the ‘John & Ken’ show on KFI Radio, Los Angeles, regarding companies continuing to leave California, why so many people want to move out of San Francisco, and the hidden costs of the state’s new minimum wage. Seems like almost no one understands how it will hit businesses hard  — very hard.

The interview was sparked by the Jamba Juice Inc. announcement that it’s moving its headquarters from Emeryville, Calif. to Frisco, Texas. The Smoothie company has had a long history with California because that is where it opened its first stand 25 years ago.

Two years ago Toyota Motor Corp. announced it will move its Torrance headquarters to Plano, Texas, one of Frisco’s neighboring jurisdictions.

At that time, Gov. Brown revealed his aloofness towards the challenges of running a business in California by saying, “We’ve got a few problems, we have lots of little burdens and regulations and taxes, but smart people figure out how to make it.” The Wall Street Journal came back with this: “California’s problem is that smart people have figured out they can make it better elsewhere.”

The show, which aired on Friday, May 6, also explored some of the reasons that an estimated 10,000 companies have left California during the last eight years for other states or nations.

Because John and Ken have a huge listenership on KFI, which broadcasts at 50,000-watts, the program is the No. 1 local radio talk show in the United States. The audio link to the segment (about 14 minutes long) is here.

*  *  *

One focus of this blog has been to address California’s hostility toward business, as addressed in the new study, California Business Departures: An Eight-Year Review 2008-2015, (PDF) updated Jan. 14, 2016.

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. He offers an introductory consultation at no cost to help company leaders understand the Site Selection process and explore whether a project makes sense. Also, he has established a Confidential One Day Coaching Program for Business Owners as a safe, economical way to explore location options in a more detailed way.

Joe is a keynote speaker on the benefits of relocating out of high-tax, high-cost, over-regulated states to friendlier business environments. For more information, see Biography and Speaking Availability. On Twitter, Joe is known as @LocationConsult.

 

New Option for Companies Wanting to Leave Unfriendly States Like California

April 30, 2016

California Exit

As the business environment in California continues to deteriorate because of the onslaught of new regulations and taxes, I’ve established a new program for business owners to help them determine whether to stay or move out of the state.

Companies located in Illinois, New York, New Jersey and Connecticut – states that also rank high in “business unfriendliness” – may also find the program useful.

Based on my experience as an executive coach, I created a one-day coaching session to demystify the site selection process and help business owners have a better understanding of the many options available to them.

After all, when considering a company relocation or expansion to a new state or community, it’s common in privately owned businesses for uncertainty to prevail. This is normal because such companies generally lack staff experienced in identifying optimum communities. Also, it is common for there to be differences of opinion among co-owners about business and lifestyle factors.

The one-day coaching session is held in a company’s headquarters or off-site location to address three basic questions:

  • “Should we stay or should we go?”
  • “If we go, where do we go?”
  • “How much will a location project cost?”

In the session, I facilitate discussions to determine the current and future priorities of the principals. Coaching can be done in a group setting, in one-on-one sessions, or a mixture of both – and confidentiality is guaranteed.

The coaching follows a structure that encourages productive communications, reveals positive and negative attitudes about various locations, and sparks discussion about business and personal goals.

And I have to say it’s interesting how many times personal concerns become a major part of the conversation.

I also provide value by outlining how consultants gather data from a multitude of far-flung places, in what way taxes and labor rates differ in various locations, what the pros and cons are in obtaining economic incentives from public agencies, and how to work with governments in other states who nearly always are enthusiastic about a company being interested in their communities.

My coaching experience includes serving executives in the aerospace, financial, manufacturing, airline, software and entertainment businesses along with entrepreneurs in start-ups and owners of well-established businesses. Also, I’ve been published by the Professional Coaches & Mentors Association.

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One focus of this blog has been to address California’s hostility toward business, as addressed in the new study, California Business Departures: An Eight-Year Review 2008-2015, (PDF) updated Jan. 14, 2016.

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. He offers an introductory consultation at no cost to help company leaders understand the Site Selection process and explore whether a project makes sense. Also, he has established a Confidential Coaching Program for Business Owners as a safe, economical way to explore location options in a more detailed way.

Joe is a keynote speaker on the benefits of relocating out of high-tax, high-cost, over-regulated states to friendlier business environments. For more information, see Biography and Speaking Availability. On Twitter, Joe is known as @LocationConsult.


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