California Politicians Oddly Silent as Companies Large & Small Leave the State

What the San Francisco Bay Area and Los Angeles had in common this week is that each lost still another company heading for the Dallas-Fort Worth Metroplex. As a business person, former Californian and new Texan, I can understand why.

Wiley X, which manufactures protective eyewear, will move its headquarters and operations from Livermore in Alameda County to Frisco, which is near Dallas. The company’s new global headquarters, manufacturing and distribution site is set to be located in Frisco’s Star Business Park. The veteran-founded and family-owned company has been providing vision protection equipment to the U.S. military and law enforcement among other markets for more than 30 years. See their news release.

Meanwhile, Ryan Salchert , a reporter for the Dallas Business Journal, wrote that manufacturer Flannery Trim will relocate its headquarters and distribution center from the City of San Fernando in Los Angeles County to Fort Worth. Real estate costs and taxes were selling points for the move. Gary Jane II, general manager of Flannery Trim, said, “We are doubling our warehouse space while only increasing our rent by about 50 percent, which was extremely appealing.” The company manufactures specialty products for wall systems in commercial and residential construction. Subscribers may read the full story, headlined, Behind the deal: Fort Worth company explains why it left California.

Silence From Politicians

We all know that California is unfriendly to businesses because of its high tax rates and harsh regulatory policies. But from what I can see, no political leader is making any effort to ease the business climate. I can only wonder what California Gov. Gavin Newsom thinks of the Wiley X and Flannery Trim departures.

I’m unable to find Newsom expressing concern about major corporations (mentioned below) leaving the state much less the comparatively smaller events mentioned above.

It seems that Newsom has been mum on Hewlett Packard Enterprise (HPE) leaving San Jose for Houston — although I saw a reaction to the loss of this iconic Silicon Valley company by a spokesperson for Newsom’s Economic Development task force. He appeared to be blasé about the historic exit, saying, “Companies come and go.”

Also, we see that Oracle is moving its headquarters from San Mateo County to Austin and CBRE Group is saying adios to Los Angeles for Dallas; note that CBRE is the world’s largest commercial real estate property services firm, so if anyone knows about a business-friendly location, they would. Once again, silence from Newsom and other state leaders.

Update: Oracle is also putting a substantial number of jobs elsewhere. See this mid-April story: “Oracle to bring 8,500 jobs, invest $1.2 billion in Nashville.” The new jobs are expected to have an average salary of $110,000. Oracle also has California offices in Redwood City and Santa Monica.

About Us

Joe Vranich can be reached confidentially at 800-508-5138 to explore whether a location-related move, expansion or consolidation makes sense for your company regardless of what state you are located in. It is a no-fee, no-obligation consultation.

Spectrum Location Solutions provides site-selection consulting services to help companies of all sizes find optimal places to call their new home. Spectrum’s network includes help for business owners through a private equity firm that will finance relocation costs — and also a realtor network to assist company employees with housing searches. By working with Economic Development Agencies nationwide to identify appealing sites and economic incentives, Spectrum has found optimum settings for headquarters, back offices and manufacturing facilities. Joe established the firm more than a decade ago as The Business Relocation Coach with the motto: “Helping Businesses Grow in Great Locations!”