Having enjoyed a stroll under the Arc de Triomphe in Paris, I was taken aback by scenes of the police there firing tear gas and water cannon toward “yellow vest” protestors – people who are showing in very public ways their unhappiness with an overbearing government.
While the French resistance is widely broadcast, there is another resistance underway. It is in California and is one that receives scant media coverage. In short, businesses are refusing to accept any more bullying by California state government, which is reflected in the fact that at least 13,000 companies have departed for business-friendly locations in other states over the last nine years.
Well, finally, some attention is being paid to this topic. I know that I’m running the risk of sounding too self-congratulatory; nonetheless I’ll claim a bit of credit for spreading the word about California’s business environment with my new report about the companies and industries that have headed for greener pastures.
I couldn’t bring more attention to the issue without journalists who have a nose for news regarding the business world.
In that vein, I’m grateful to Larry Marino of KRLA Radio News in Los Angeles for his focus on my new report that encourages and provides justification for companies to relocate their facilities out of business-hostile California. I suspect that local business leaders were paying attention to the broadcast because – in addition to difficulties with the state – the City of Los Angeles is known for rude and costly treatment of home-town businesses.
What is the opposite of this revealing KRLA News coverage? Well, consider that the number one county to lose companies to other states was Los Angeles, with Orange County placing second, yet the Los Angeles Times ignored most of those important events.
In the interview with yours truly, Mr. Marino, the host of KRLA’s “Sunday Morning Newsmakers,” asked about taxes, the regulatory environment, business-hostile laws and quality of life comparisons.
I outlined how California politicians demonstrate contempt toward businesses. One reason for their arrogance is because few of them have ever run a business. I added:
“The state of California makes simple mistakes a crime. The politicians are smart enough to know the damage they are doing to businesses, but they don’t care . . . . The majority of them have never run a business. They don’t know what it’s like to meet a payroll, they don’t know what it’s like to meet requirements in a book of employee rules that is two inches thick. They have no clue as to how to run a business.”
I pointed out that enterprises exiting the state include many types of manufacturing and software companies, and believe it or not even “green” companies find it easier to build their solar panels and windmills in states other than California.
I said I didn’t think things would improve because the increasing number of business-clueless people on the left elect more business-clueless people to public office.
I don’t think there would be one iota of improvement to the business climate even if we were somehow magically able to repeat that broadcast dozens of times over the last few years to a captive listening audience consisting of Governors Arnold Schwarzenegger, Jerry Brown and Gavin Newsom, and Los Angeles Mayors Antonio Villaraigosa and Eric Garcetti.
We can expect companies departing California to continue to do so discreetly (except for publicly traded companies that are required to disclose material events). Why? Well, companies that leave quietly, which Thomas Brothers Maps did when they vamoosed from Irvine several years ago, minimize grandstanding by politicians whose “outrage” receives plenty of news coverage.
Unlike their French brethren, California police won’t aim tear gas and water cannon toward a manager closing a factory. But state inspectors will swoop in from Sacramento – surprise! – to nab the last penny possible through fees and fines for even small violations found in a facility before it closes its doors.
For a summary of the comprehensive report about companies leaving California – a distillation of the who, what, when, where and why over a nine-year period – see https://spectrumlocationsolutions.com/california/
You can listen to the KRLA interview here https://omny.fm/shows/sunday-morning-newsmakers/sunday-morning-newsmakers-01-06-19-seg-3-joe-vrani
Note: Anyone purchasing this new study is entitled to a one-hour no-cost, no-obligation phone session with Joe Vranich. The offer applies regardless of whether you are with a Corporation, Small Business or Economic Development Agency.
Joseph Vranich provides location advisory services whose motto is “Helping Businesses Grow in Great Locations.” His company is Spectrum Location Solutions LLC, but he also has been known as the Business Relocation Coach. If you found this posting useful, please forward it to a friend and subscribe to Joe’s blog here.