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."
The way things are going it would not have been shocking if they announced they were going to move manufacturing to Mexico or China.
As a small businessman, I hear you.
I do see some interesting signs here in WA.
For example, I see what Gov Locke is doing to balance the budget, without insisting on major new taxes as very encouraging. I also see him as recognizing that there needs to be a pro-business approach to get the state economy going again.
I also find it interesting that the Republican Senate leaders are sending an interesting message to the Democrates by appointing a maverick Democrat to head the Senate Economic Development Committee. That message is let's be bi-partisan about the economy and business. I hope the Democrats in this state listen and decide to break ranks a little more in the Senate.
So, while Washington is depressing in its liberalism at times, I still think that there is some hope.
There are many ways to read your comment. Are you suggesting that he is doing other things that are illegal? Are you suggesting that companies not try to lower their costs of doing business? Or are you trying to introduce an irrelevant topic?
If the last is true, have you considered that he might utilize unsafe Mexican trucks to transport his goods? Or that NAFTA and the World Court might prevent him from moving?
I can only speak about my reps from the 23rd district, they won't. They've spoken out in favor of an income tax.
I use the alcoholic analogy, we haven't hit bottom yet. Until we do, or at least the Seattle area does, we have more dire staights ahead.
Did you hear at the top of the hour news that tax to the max Gary Locke has been selected to deliver the dimocRATS response to the State of the Union address?
Alright, let me be the first to point out that it's Buck's customers who are paying those exorbitant California taxes now, and who will be saving "millions of dollars".
Not just the Buck family.
Actually, some of Buck's knives have been produced in Mexico. I have some of their small pocketknives with boxes that say "Mexico." I suspect they were assembled in Mexico with parts produced in the US.
With this upcoming move I wonder whether they will consolidate operations in Idaho?
Now Gerber is owned by a Finnish scissors-maker, and the last Gerber I looked at said "Made in Taiwan" on it!!
Take that away and the state government gets choked off. And that's what I desire, to see the leftist government choke and collapse. No number of illegals will support these extreme leftist. Most send their money southbound and as businesses flee the state, the illegals will follow anyway.
I am looking forward to this, bring it on. It's all predictable, and just what this state needs. The AH from New York, Gray Davis will be left standing in the middle of a disaster. LOL!
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