Posted on 01/15/2003 9:51:04 AM PST by Robert357
Buck Knives, one of the county's landmark businesses, said yesterday that it is leaving California and will move to Idaho early next year.
President and CEO C.J. Buck said California's rising cost of business forced the hand of the family, which has run the company for 100 years. He said that in April, too, when first discussing a possible move.
Buck said no more than a quarter of his 250 employees will move to the plant in Post Falls, Idaho. He said no layoffs will come this year, and added the company has not set a moving date beyond the first quarter of 2004.
Last year, Buck Knives celebrated its century mark. It was founded in Kansas in 1902, moved to San Diego after World War II and settled in El Cajon in 1968. Its knives are sold internationally and are favorites among outdoorsmen.
Buck, who was 8 when the company moved to El Cajon, said his father, Chuck Buck, made the final decision to leave the city late last week.
C.J. Buck credited local politicians and business leaders with working hard to retain the company in the spring, but said that after November's statewide elections the family didn't envision the business climate getting better in California.
East County Supervisor Diane Jacob said the problems faced by the company are "breaking the backs of businesses in this state."
"I think this is just the beginning of the exodus of businesses in the state unless there are sweeping reforms in the way we treat businesses," Jacob said.
Terry Saverson, head of the East County Regional Chamber of Commerce, said the departure of Buck Knives illustrates all businesses are having trouble with state laws and regulations. She said she knows of several businesses that are feeling pressure to leave.
El Cajon Mayor Mark Lewis said he hoped the departure would not create a domino effect, noting that some local businesses are suppliers to Buck Knives.
The company has struggled over the years, facing increased competition in an international market. Annual sales are off 25 percent since 1995. Twenty years ago, the company had 600 employees, more than twice what it has now.
The 10 acres the company owns near Gillespie Field went up for sale again yesterday at an asking price of $9 million. It was on the market last year, but the family took it off when no one made an offer.
Phil Duckett, the company's vice president of operations, said its new 12-acre home cost about $800,000.
The land price is but one of the incentives that Idaho offered Buck Knives. The company will receive $3,000 per employee from the state for training. In addition, wages, benefits, utilities and workers' compensation costs are much lower than California's, Duckett said.
In Idaho, the company's energy costs could fall 60 percent, workers' compensation costs 40 percent, and wages and benefits 20 percent, compared with here. Executives said they expect to employ the same number of people.
Duckett said the company's annual savings would be in the millions of dollars, but he declined to be more specific.
The company chose Idaho over states, such as Washington and Oregon, because it had the "best long-term, business-friendly legislative environment," Buck said.
He said the news disappointed but did not surprise workers. Buck told them yesterday to give them as much time as possible to find other jobs if they wanted to start looking.
"We ran the risk of giving too much notice and possibly losing people while we still needed them," he said. "That's a chance we decided to take."
The company is considering bonuses and incentives for workers who decide to stay to the end, Buck said.
He summed up his thoughts on the move, saying: "I adore East County, so it's very sad to have to make this decision that we have to relocate. On the other hand, Idaho is beautiful."
Good post, but this idea is incorrect and easily refuted. You should have said, "All real wealth originates in the individual mind."
Of what worth is iron oxide buried 200' below the ground without the knowledge of how to extract it and how to convert it into metallic iron?
Of what worth is fertile bottom land without the knowledge of how to plow, fertilize, plant, and cultivate the crops that might grow there?
In fundamental terms, hatred of business = hatred of the human mind = hatred of life itself. That's the unspoken secret of modern democrats.
You get the idea...
These guys were pictured in the ashes of what used to be the Kalmiopsis Wilderness burn, aka the Biscuit Fire last summer in Oregon.
Thanks for the heads up Jeff
Talk about predictable, bad news posted about California/ns and you're salavating over it.
But you're right, we should be quiet when Republicans introduce new or raise taxes, that way we can continue to elect them and blame the Democrats.
Get a job yet?...I have more work here in California than I can handle...I'm turning down work and my phone is still ringing. As I said, I'd much rather be working, supporting my family even when I'm paying taxes I loathe than not working at all...But hey, that's just the way we are in California.
I'll be looking for the report of Buck moving it's operation to China when it gets too expensive in Idaho for them...but that would be OK with free trade(?) Republicans and not near as interesting as moving from Cal. to another state.
Here's a photo of the group:
North Idaho has attracted another new company. The latest example is Buck Knives, a privately held maker of sports and utility knives. It will move its headquarters from near San Diego to Post Falls in the next year.Electricity costs were a big factor. The company spends $500,000 a year on power in California and expects to cut that by 60 percent in Idaho, according to Marple's Pacific Northwest Letter.
AMERICANS SHOULD TAKE HEED: California is the prime example of the devastating effects of the socialist agenda---businesses cannot survive, they and people are leaving that state in droves. Additionally, California State Board of Education has repeatedly failed to achieve the success in their lab experiment, the "whole langugage" program (instead of time-tested effective phonics).
If the socialist commie rats take over America, as they have more and more in California, there will be no place for any business to run. Why don't Americans see this?
First, interesting how long it takes "news" to make it to the Seatle papers. No wonder I rely upon the internet for my news.
Second, it is kind of interesting that like that quoted from Marples didn't make it into the CA newspaper article. This addition about the relative amount of money that electricity costs differ by is pretty interesting.
There is an LA Times article today about California power costs. The two most interesting paragraphs about cost are as follows:
The implosion of the ambitious power market that California created in 1998 led state regulators to raise electricity rates twice in 2001, so that customers of Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric pay $3 billion more a year than they did before the increases.
Those rates vary for residential, commercial and industrial customers, but are between 52% and 70% higher than the average electricity rate in Arizona, Bowen said.
There is also some interesting stuff where people (Like David Freeman) are posturing about future price spikes and not enough power plants being built. Bottom line is that $3 billion a year is a lot of competitive disadvantage for an economy.
To late, this has gone far beyond the borders of California. It's later than you think.... Just yesterday this was passed in Seattle...
Seattle Times 1-28-2003 | Jim Brunner
To the cheers of immigrant-rights advocates, the Seattle City Council yesterday adopted a "don't ask" policy prohibiting police and other city workers from asking about the immigration status of people they come in contact with.
The ordinance, sponsored by City Councilman Nick Licata, was touted as a symbolic rejoinder to the Bush administration's war on terrorism, which critics argue has eroded important civil liberties, especially for recent immigrants, both legal and illegal.
"It is just an incredibly frightening time," said City Councilwoman Judy Nicastro.
While there was no visible opposition to the ordinance yesterday, some police officers have questioned the wisdom of the measure, saying it is just one more restriction placed on their ability to fight crime.
A mockery is being made of our citizenship, and our sovereignty is now a joke.
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