California Gov. Gavin Newsom likes to talk about innovative companies, but he is silent when they pack up and leave California’s hostile business climate. Well, today, we can report on another one that is “hitting the road” – this time for a state that is nearly 2,000 miles away.
Ocean Aero, which builds and services ocean-going autonomous vehicles, is relocating its manufacturing headquarters and operations from San Diego to Gulfport, according to the Mississippi Development Authority. The project is a $4.65 million corporate investment that will create 45 jobs by the end of this year.
The company’s products run exclusively on wind and solar energy and perform missions on the ocean’s surface and underwater. Customers include the U.S. Dept. of Defense, Department of Homeland Security, National Oceanic and Atmospheric Administration and offshore energy companies.
Ocean Aero’s move follows other recent California company exits, such as Montrose Environmental Group Inc. moving from Irvine in Orange County to North Little Rock, Arkansas; the National Hot Rod Association relocating from Glendora in Los Angeles County to Indianapolis; and MD7 leaving San Diego for Allen, Texas, near Dallas.
No signs whatsoever exist that Gov. Newsom or his colleagues in the legislature and bureaucracies will contribute to making the state friendlier to business.
If you’re thinking of having your business move to California, we encourage you to think about the high-tax, harsh regulatory, and brutal legal environments – all of which will multiply your headaches while shrinking your profits. Consider also whether your best employees will want to relocate to California with its declining quality of life as reflected by poor schools, out-of-control crime, traffic congestion, overall high costs, and shockingly unaffordable housing
More information about the Ocean Aero move can be found here.
Spectrum Location Solutions conducts data-driven evaluations to identify optimum locations for company relocations, expansions or consolidations. To explore whether a location-related project makes sense for your company, contact Joe Vranich at 800-508-5138. The no-obligation consultation will be completely confidential.