No Surprise: Still Another Company Leaves Business-Hostile California for Texas

Another manufacturing company is leaving California – namely, Los Angeles. This time it’s Aeromax Industries, Inc., a sophisticated military aircraft parts maker, that is moving its headquarters to the Fort Worth area.

The company has more than 30 years of technical experience in advanced manufacturing, supporting programs for international governments, overhaul facilities, licensees, and trading companies worldwide. Areas of expertise include out-of-production aircraft like Lockheed Martin’s F-16, Northrop’s F-5 and T-38, Bell’s Sikorsky UH-60 and GE’s J-85 jet engine.

“After looking at a few other locations, Fort Worth made perfect sense for us,” said Tom Brizes, chairman and president of Aeromax. “It’s an aerospace-friendly community with many local companies that we’ve been doing business with for years. With no state income tax and reasonable fuel and property prices, we look forward to moving and growing our operation here.”

The three items he mentioned – income taxes, fuel costs and property prices – just happen to be exorbitantly expensive in California and will become even more costly if current legislation is enacted into law by Gov. Gavin Newsom.

In Texas, Aeromax has leased a 12,000 square foot facility in the Aledo Industrial Park in Tarrant County off I-20 (Ronald Reagan Memorial Highway) and Markum Ranch Rd., where it will relocate by September 2019. Operations will include management, shipping and receiving, engineering, marketing and administrative.

Aeromax has a library of over 100,000 blueprints, standards, loft contours and specifications for the manufacture and engineering of parts for legacy aircrafts well after they have been retired.

“When the Chamber received a call from Aeromax, we knew we could find a home for them that is close to their industry peers and provides a trained aerospace workforce for future growth,” said Chris Strayer, senior vice president of Business Attraction, Retention and Expansion. The Chamber worked with the company on real estate, workforce and market validation; its announcement is here

Aeromax is departing Canoga Park, which is in the San Fernando Valley section of the city of Los Angeles.

California’s business-hostile politicians claim that only low-paying jobs move to other states. But the fact is many high-paying headquarters and aerospace jobs have done so.As one who has been an employee of and consultant to aerospace companies, I remember when Southern California was the nation’s top aerospace powerhouse, but now it’s a shadow of its former self.

To understand the who, what, when, where and why more than 13,000 companies in all types of industries have exited the state in recent years, see a summary of the report, “Why Companies Leave California” @ (scroll down). The report also substantiates the view that no end is in sight for California’s toxic business environment and that additional companies will depart in the future.

Joseph Vranich is a site selection consultant providing location advisory services to corporations and small businesses. His motto is “Helping Businesses Grow in Great Locations.” In recent years, he has discussed California’s difficult business environment with more than 100 economic development agencies located in North America and Europe. The name of 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 (see the top right-hand side of page; your email will not used for any marketing purposes whatsoever).

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