Businesses Joined by Non-Profits in Leaving California for Friendlier States

Friends in economic development agencies and in the site selection consulting world have asked why I haven’t posted anything in quite awhile. My answer is simple: I’ve been exceptionally busy. It certainly isn’t because there aren’t things to write about.

Another question I’m usually asked is whether businesses are still leaving California.

They are, especially with the state legislature again failing to provide tax or regulatory relief to its home-state companies. Overall, taxes, fees and regulations have gotten worse. Such a difficult business environment, combined with grim treatment by local governments, have caused operating costs to grow faster in the San Francisco Bay Area and Los Angeles than in virtually every other metropolitan area in the nation.

NevadaSo large corporations and small business entities continue to look for ways to partially or fully exit the state. Today alone brought two examples, which by coincidence both involve Nevada.

The first is a loss for Los Angeles with Virtual Guard, Inc. leaving the city’s Sherman Oaks section. The company plans to relocate its headquarters and interactive command and control center to Clark County (Las Vegas area), citing an “unfriendly economic environment” in California. The move is likely to occur later this year.

There, Virtual Guard plans is expected to hire 80 new employees within its first two years of operations. The video monitoring company is also a developer and integrator of technology in the perimeter security sector and its solutions are being used throughout the United States and Canada.

California, which a long time ago was a haven for aerospace companies, will lose another one next year.

ERG Aerospace Corp. plans to relocate its Oakland operations to McCarran, Nevada and make the Silver State its headquarters. The company manufactures materials and components for the aerospace, national defense, semiconductor manufacturing, biotech and other high technology industries. The target date for the move is the second quarter 2018, with operations to commence in the same quarter.

Several months ago a non-profit organization said it would relocate out of state, too. Horizon University, a private, Christian school that started classes in 1993 in San Diego is heading to Indianapolis.

Horizon’s President Bill Goodrich calls the decision “a no-brainer.” He said Indiana offers a “climate” that was slipping away in California, and by that he wasn’t referring to San Diego’s sunny days. Goodrich said that the university helps people “grow academically” while integrating the “strong biblical teachings and we find in Indiana, there’s an openness to that.”

The move will allow the, accredited university to grow on a 97-acre spread – in a state with less “red tape” – and attract more students.

Thanks to high costs, a sizeable non-profit move is upcoming: Toastmasters International will shift its headquarters from its birthplace in Orange County to Colorado.

With about 180 employees, Toastmasters CEO Daniel Rex said costs in California were a concern. “When you look at the availability of workers, when you look at the cost of commerce and real estate, this is something that makes sense.” The organization is spending $19.5 million to buy a building in Englewood, south of Denver. Toastmasters is a legendary California institution, founded in 1924 in Santa Ana. Since 1990 it’s been based in Rancho Santa Margarita.

Business people who endure the decline in California’s business climate and pervasive cost increases can take some comfort knowing that some non-profit brethren are members of the same club.

I’ll write more about how California treats its commercial enterprises. But first I need to see how many business-helpful bills and business-damaging bills Gov. Jerry Brown will sign into law.

One focus of this blog has been to address California’s perennially difficult business environment. 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.

This article was originally published by Fox and Hounds Daily

Comments

  1. Stupid is as Stupid does…. and the Democrats have proven they are incredibly stupid.

    In the Real Estate Industry it is called raking the bones.

    Take anything of value, tax it or sell it and then tax the sale. That is the Democrat slogan. When that has devastated the middle class what is left are the rich. The rich are that because they are smart enough to get out of doge before the grim reaper in government hits them.

    When the technology for reusable space craft really becomes mature places like Vandenberg will become a historic legacy open to the public for tours.

    Did anyone see Tesla is starting to struggle? Did you see where another Brit firm has been working on proprietary battery innovations.

    Go ahead Democrats (the old name for Socialists) rake the bones.

    Hopefully I’ll be dead and gone by the time of the collapse.

  2. retiredxlr8r says

    Every city, every county, every state that is in financial trouble, with unsustainable debt, out of control public employee unions, restrictions and regulations, not to mention fees and taxes beyond any other city, county or state are, wait for it, are all Democratically controlled.
    All lean to socialism, all lean towards fascism (privately owned by state controlled property) and it is the worst in California.
    Solution, immediately it would be to leave, long term, I am sorry to say, is too late. The loons in Sacramento haven’t a clue about managing a state this large, its resources, its tax revenue. All are incompetent Democrats with a selfish attitude on just about everything.
    Worst of all, they are in Sacramento to serve themselves, not the Citizen.
    Sorry, right now I don’t like Democrats very much, pretty close to hating them! And that is their fault not mine.

  3. California resident and the Democrates have let Illegal Mexicans vote by way of Mail-in ballots and have added over 1 million new Illegal Mexican voters to their base. California is on record to add another 1 million Illegal mexicans to their voting rolls in 2017. The fact is Brown and his mexican legislature have one goal only, to protect, harbor and encouraging more to break US Immigration laws….Dems in this state SUCK

  4. No surprise here with the stupid liberals who destroyed this state. Might be onto something if they could rid us of the Hollywood nuts. California is doomed as long as the politicians keeping taking in their illegal families and allowing them to vote. Liberal loon politicians love this because the more that come in the bigger the longer their stay in office, a win win for the Jerks that lead this state down the path of destruction.

  5. J. Richards Garcia says

    The tyrannical left, also-known-as democrats and liberals, are very CUNNING, not stupid. They understand numbers and breaches of fundamental freedoms as well as any of us. They know they are destroying California and the United States, and know they are succeeding.
    Many of us don’t fully realize it is the democrats’ goal to destroy both California and the United States. They are very susceptible to the fatal disease of being willing to do absolutely anything for power and wealth.
    Broadly, they are greenies, destructive Malthusians and left-wingers who have a stronger affinity to those who seek to destroy, rather than build. It is who they are, and who their friends are. To have other goals would be to cutoff social friendships with these demolishers, which are often nihilists. Some nihilists regularly attend Christian churches but are not genuine believers. Unfortunately, many Christian churches are filled with and controlled by nihilists.
    The trick is how to defeat a fully knowing, cunning, totally destructive, toxic democrat party.

  6. Victoria Smith says

    Thanks a lot, Jerry and your brown shirts.

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