By Joseph Vranich
California companies moving their headquarters out of state continues. as more relocations were discovered only one day after the Hoover Institution and my firm released the report “Why Company Headquarters Are Leaving California in Unprecedented Numbers.” The announcement and summary is here.
In an interview with the Triangle Business Journal I said that more relocations are likely unless California becomes friendlier to businesses.
Headquarters that Left California after June 30, 2021
Company: California County → Destination Location
Zox LLC: Los Angeles, Agoura Hills → Texas, Austin
AECOM: Los Angeles, Los Angeles → Texas, Dallas
Cangshan Cutlery: San Bernardino, Chino → Texas, Leander
Ocean Aero: San Diego, San Diego → Mississippi, Gulfport
Bedrock Capital Partners LLC: San Francisco → Texas, Austin
Flexible Funding: San Francisco → Texas, Fort Worth
HomeLight: San Francisco → Arizona, Scottsdale
To say that these companies are prosperous would be an understatement. For example, AECOM is a Fortune 500 firm and its Professional Services business had revenue of $13.2 billion in fiscal year 2020.
And HomeLight’s new headquarters in Scottsdale, Ariz. is the company’s largest employment center. “It’s a more favorable cost of living. The environment there is just more conducive to growing businesses,” said founder and CEO Drew Uher. In May, HomeLight got a $100 million credit line from Credit Suisse to expand, according to the San Francisco Business Times.
The Hoover report found during the first six months of this year that the number of companies relocating their headquarters out of California is running at twice the rate of recent years. Meanwhile, Gov. Gavin Newsom and his friends in the state legislature continue to turn deaf ears to the concerns of business leaders.
The full report is available at Why Company Headquarters Are Leaving California in Unprecedented Numbers. The authors of the report are mentioned below.
Joseph Vranich of Spectrum Location Solutions is a site selection consultant providing location advisory services to corporations. In recent years he has discussed California’s business environment with more than 100 economic development agencies located in North America and Europe.
Lee Ohanian is a Senior Fellow, Hoover Institution and Distinguished Professor of Economics, UCLA. He writes for California on Your Mind, a twice-weekly journal published by the Hoover Institution about California politics and economic policies, and how they affect California’s economy.