Buck Knives is moving on to Idaho; costs cited (Energy, Work Comp & Politics)

The San Diego Union-Tribune ^ | January 15, 2003 | Matthew T. Hall

[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."

[Fiddlstix]

Alternate alternate title: American Company Moves Back to America.

I like yours better LOL

[EBUCK]

I still am very suspicious of this guy,

I'm kind of in the same boat...what is he doing? He's acting more conservative than the guy he ran against! His base must be seething, or making excuses like it's a "strategy" in the same fashion we rationalize some of Bush's policy..

I hope Kulon follows thru.

[radioman]

Must not disturb the lives and sensitivities of California state employees...

You hit the nail on the head with that one!

[john316]

I just hope they'll need a unix/firewall geek

[EBUCK]

I was thinking the same thing. I wonder if they are hiring in advance??

I've got a Buck too. But it's got a broken tip (no-one told me it wasn't a screwdriver!! LOL) so it stays home, replaced in my pocked by a knife I bought to fund that missing kids program.

[EBUCK]

Yesterday the teachers union persuaded the states schools to close so they could go to Olympia and protest for an income tax.

Aren't they on Salary, teachers I mean? Law Suit, misuse of tax money!

[Guilliamus]

We moved our family business from California to the Black Hills of South Dakota back in the 1980's and have never regretted it. We moved to escape high taxation and high costs. SD offered us very low initial real estate costs, a special real estate tax incentive that continued for several years after our move, a beautiful environment and great employees. And it did not hurt one bit that SD has no state income tax.

We have found SD to be an easy place to do business where local authorities appreciate anyone who brings jobs.

[elbucko]

I have a Buck in my pocket right now...Always have, Always will..

So do I. The people of California voted for a socialist government. Buck & Co. is voting with its feet for freedom. Both social and economic. I wish them luck.

[wardaddy]

Ain't that the truth.....the only two top grade hunting knives used to be Buck and Gerber.

Now go to any Bass Pro Shop or Cabelas and there are dozens of choices.

I don't blame them for moving. Man, everyday here we see some other sign of Kali falling in the wormhole. Whew!

[Grampa Dave]

Actually, Joe, the enviral whackos who control Club Sierra and other enviral organizations have wanted a large part of California's business to move out for decades.

This is why they have made it basically impossible to build a new power plant while closing the older ones or restricting them to being used a few days per year. They knew over 20 years ago that not allowing new power plants to be built would create expensive electricity. Expensive electricity and taxes have all ways driven business away to lower cost areas.

If they get their way, most businesses will move out except their contributors and most farmers and ranchers will be forced to leave so the salmon and steelhead will have water.

Then only the elite Watermelon Jihadists will be left with about 7 million illegal aliens to be their low wage slaves.

The Watermelon Jihadists are more than glad to see Buck Knives and any other business leave California.

[Grampa Dave]

Actually, Joe, the enviral whackos who control Club Sierra and other enviral organizations have wanted a large part of California's business to move out for decades.

This is why they have made it basically impossible to build a new power plant while closing the older ones or restricting them to being used a few days per year. They knew over 20 years ago that not allowing new power plants to be built would create expensive electricity. Expensive electricity and taxes have all ways driven business away to lower cost areas.

If they get their way, most businesses will move out except their contributors and most farmers and ranchers will be forced to leave so the salmon and steelhead will have water.

Then only the elite Watermelon Jihadists will be left with about 7 million illegal aliens to be their low wage slaves.

The Watermelon Jihadists are more than glad to see Buck Knives and any other business leave California.

[Grampa Dave]

Actually, Joe, the enviral whackos who control Club Sierra and other enviral organizations have wanted a large part of California's business to move out for decades.

This is why they have made it basically impossible to build a new power plant while closing the older ones or restricting them to being used a few days per year. They knew over 20 years ago that not allowing new power plants to be built would create expensive electricity. Expensive electricity and taxes have all ways driven business away to lower cost areas.

If they get their way, most businesses will move out except their contributors and most farmers and ranchers will be forced to leave so the salmon and steelhead will have water.

Then only the elite Watermelon Jihadists will be left with about 7 million illegal aliens to be their low wage slaves.

The Watermelon Jihadists are more than glad to see Buck Knives and any other business leave California.

[EBUCK]

I'm sure they will...if they don't bring their own geeks with them..

Watch for the Californication of your community!!! They did it here and they'll do it there too. They leave a place because it's too expensive, PC, restrictive whatever then attempt to turn their final destination into the utopia that left behind.

[Thorondir]

The problem is that the liberals have nearly finished destroying California, and like the rats that they are, are fleeing the sinking ship to infest and destroy other states.

Liberalism is a disease... and it's killing my nation!

[Grampa Dave]

Ooops, John Rob must be messing with, er, working with his program on the server.

It just hiccupped, and my reply got posted 3 times while I got a message that Free Republic could not be found. When I got back FR,, there were 3 replies.

[Eric in the Ozarks]

I picked up on this a few years ago when my company was trying to develop a dock property in N. Cal. The pollution control folks (looking for oil spills from shipping, etc) carry guns.

[radioman]

My bet would be on Nevada.

LOL...I live in a rural mountain community in northern Cal that has been turned into a ghost town by the socialist regime. Most have already left for Reno, Nevada. The only problem there is the lack of housing. They can't build houses fast enough to handle the influx of California refugees!

[bigfootbob]

The teachers union persuaded the puppet school boards to allow the teachers to TRADE a scheduled in-conference date or extended the school year by a day for this.

There's a state law that mandates school years be 180 days. There's also a law that prevents strikes by teachers, however our socialist governor Gary Locke, didn't enforce the rule this past September when three districts in the Puget Sound region striked for higher pay for 15 or 20 days. They actually had parents on the picket line with them, and others trying to privately raise the million dollars or so the two sides were apart.

They used school buses yesterday to transport the teachers to Olympia. So far I've not seen whether or not the union paid for the use of the buses, but I would bet....

[1Old Pro]

Hundreds of companies have left New York over the years for the same exact reasons yet the pols haven't waken up and Energy, Insurance and taxes have continued to rise astronomically.

[Robert357]

Idaho and Nevada could really become the hot states to move a business to in this decade. As California, Oregone and Washington become economically depressed enviral third world states.

Your comments are right on target! I agree with you. I have and will continue to talk to my elected officials and donate time and money to pro-business republican candidates.

If taxes become too confiscatory, I will move elsewhere.

Actually, I have found Gov. Locke's approach to his budget crisis to be worthy of a chapter in "Profiles in Courage." He has prioritized and balanced the state budget without any major new proposed taxes and has specifically said that any taxes on business will delay economic recovery. There may be hope for Washington State, but time will tell.