Levi Strauss left? Hershey is going to Mexico. Buck Knives went to Post Falls, Idaho and General Dynamics went to Arizona. Why are all these companies leaving the Golden State? Not golden anymore?
They're going where they're welcomed and not taxed into near-bankruptcy to support illegals and socialist welfare programs.
....as much as I hate some of the politics in Calif...it still had a GSP of 1.5 Trillion dollars compared to NY and Texas with 899 Billion and 860 Billion respectively in 2006. That is just about twice as much as 2nd and 3rd place. Companies come and go.....but the economic demise that I hear on FR every year is always greatly exaggerated. Calif is still 15% or so of the entire GDP of the U.S. I believe......
No problem in San Diego.
Many of the major Defense contractors are receiving mega million contracts almost weekly.
Also home to Qualcomm, the top international wireless Corp.
Sony, and many other larg corps.
In the top 3 in the U.S. for BioTec and the list could go on. What left was a drop in the bucket, no loss.
Workmen’s Comp is one of the biggest reasons.
Now new legislation requires that ALL business give health insurance to all their employees.
Business cannot squeeze all these costs out of the consumer.
I have a friend who ran a machine shop in Kalifornia for over 50 years. He NEVER had a single workmen’s comp claim in all that time. They were charging him 43% on every $100 of gross wages for workmen’s comp. So- on an annual payroll gross of $100,000, it was costing him $43,000 dollars in workmen’s comp premium.
In addition to running the machine shop, he operates a school with 6 students at a time on a weekly rotation to teach skills to people who are NOT learning them in the taxpayer provided schools anymore. No shop classes, etc. The state of Kalifornia wanted him to pay workmen’s comp on the students!!!! He had a mess of a time convincing them that they were NOT employees and were students!!
He finally said to workmen’s comp that they would have to charge workmen’s comp for every student in the grade, high school, and college campus in the entire state- How about that???
He finally had enough and moved the entire operation to Tennessee. The MAXIMUM workmen’s comp rate in Tennessee is &%, and he is NOT at the maximum rate there.
So, now, Kalifornia lost the earnings of all his employees- who all went with him, BTW- and all the churning of those wages thruout the immediate area.
Another company left Van Nuys, near the VN airport for Las Vegas a few years back. Sold their land, building and built new in Las Vegas area. Took 235 of 250 employees with them, and paid for their moving costs. Moved all their machinery and teardown was Friday PM, and start up was the following Tuesday AM. Saved on state income taxes, got 47% of the previous electricity rates, and dropped workmen’s comp waaaaay down.
They recovered their costs in less than 9 months.
Sherwin-Williams near San Francisco has been reduced to making ONLY one kind of paint/varnish product. Water based latex paint. The enviros have shut them down on everything else. They have built a new plant- also more automated- in Fernley, Nev- east of Reno. They left behind union wages, union strikes, nasty enviros, and provided new jobs here for people happy to see them. I don’t know how long it will take for them to recover the costs of this move, but I don’t think it will be a long time.
San Francisco has voted that all business MUST provide sick leave- even to part-time workers who come and go, especially in the restaurant business. Food business not happy. Ripple effect will show itself within this year.
That is why everyone is leaving Kalifornia.
The state thinks they can run YOUR business better than you can do it, yet the state NEVER had a dime of envestment in the first place. Therefore, small business is fleeing Kalifornia left and right.