‘Leaving Cal.’ list grows to 144 firms
 

‘Leaving Cal.’ list grows to 144 firms

September 23rd, 2010

Jan Norman


Update: Although Pipeline Software Inc., co-founder Charlie Sundling has moved to Henderson, Nev., the company itself hasn’t moved. Yet. That’s according to co-founder Ragu Patel.

Irvine consultant Joe Vranich, who has been compiling a list of companies leaving California because of the state’s anti-business environment, is now up to 144 companies that have departed in 2010, including 34 in Orange County.

In addition, he lists 51 companies (8 from Orange County) that left in 2009. That three-fold increase, Vranich says, is the tip of the iceberg that is California’s financial woes.

“Quite clearly, the exodus of businesses out of California continues. It makes sense for companies to reduce their California footprint considering the ample supply of attractive, lower-cost alternative locations. Unless California reduces its hostility toward business, we will see more commercial enterprises seeking friendlier locations in which to relocate entirely or at least place facilities there that used to be located here.”

Among the Orange County companies new to his list are Boeing, Kennametal Inc., Latex International, Multi-Fineline Elextronix Inc., NGK Spark Plug Co., Smith Micro Software Inc. and Witt Heat Transfer Products Group, most of which have been previously reported by the Register. Vranich says Orange County may be over-represented on his list because news reports are one source of his information and the Register reports business comings and goings more than some publications.

Vranich doesn’t include in his list every company that opens a facility elsewhere. Here’s how he explains:

“I’ve excluded countless companies that are attempting to serve new territories or new customers, are expanding because the company is growing, or are acquiring companies located elsewhere. When events appear unrelated to California’s hostile business environment, I give the companies the benefit of the doubt and leave them off the list.

Which locations are benefiting from California’s exodus? Vranich says in a Fox&Hounds article:

* Texas
* Arizona
* Colorado
* Nevada
* Virginia
* Utah
* Other countries

“Businesses are shrinking their California footprint because high taxes and intense regulation damage their ability to compete,” Vranich says.



http://jan.ocregister.com/2010/09/23...4-firms/45696/

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