Agorism
04-20-2011, 07:45 PM
Calif. ‘Disinvestment Events’ Reach New High
As Companies Opt for Other States, Nations
(Updated April 15 to Reflect New Loss)
http://thebusinessrelocationcoach.blogspot.com/2011/04/calif-disinvestment-events-reaches-new.html
California is experiencing the fastest rate of of companies relocating to out-of-state or out-of-country locations since a specialized tracking system was put into place two years ago. The disturbing trend is reflected in a review of activity from Jan. 1 through April 15 of this year when 70 California company disinvestment events occurred, an average of 4.7 per week -- greater than the 3.9 average per week last year.
The tracking system includes companies relocating completely or partially, or those launching capital investments elsewhere to build the types of facilities that used to be built in California. In some instances, company leaders admit that California's business environment motivated expansion elsewhere.
Unfortunately, the stage is set for California to lose additional companies, capital and jobs in the future. That's because the business environment worsened yesterday when Gov. Jerry Brown signed into law a requirement that utilities obtain one-third of the state’s electricity from renewable sources. California companies, which already pay 50% more for electricity than companies in other states, can expect costs to increase by another 19% in some places to a whopping 74% in Los Angeles. Such new burdens along with upcoming regulations stemming from the “California Global Warming Solutions Act” set potentially overwhelming obstacles to companies here as they try to meet competition based in other states and in foreign nations.
Even today’s list, below, understates business losses. It’s estimated that only one out of five losses become public knowledge, if that. Moreover, this list excludes many company investments made outside of California for justifiable growth or marketing reasons. See more about that at "Examples of Companies Excluded From California Disinvestment Event Listings."
As Companies Opt for Other States, Nations
(Updated April 15 to Reflect New Loss)
http://thebusinessrelocationcoach.blogspot.com/2011/04/calif-disinvestment-events-reaches-new.html
California is experiencing the fastest rate of of companies relocating to out-of-state or out-of-country locations since a specialized tracking system was put into place two years ago. The disturbing trend is reflected in a review of activity from Jan. 1 through April 15 of this year when 70 California company disinvestment events occurred, an average of 4.7 per week -- greater than the 3.9 average per week last year.
The tracking system includes companies relocating completely or partially, or those launching capital investments elsewhere to build the types of facilities that used to be built in California. In some instances, company leaders admit that California's business environment motivated expansion elsewhere.
Unfortunately, the stage is set for California to lose additional companies, capital and jobs in the future. That's because the business environment worsened yesterday when Gov. Jerry Brown signed into law a requirement that utilities obtain one-third of the state’s electricity from renewable sources. California companies, which already pay 50% more for electricity than companies in other states, can expect costs to increase by another 19% in some places to a whopping 74% in Los Angeles. Such new burdens along with upcoming regulations stemming from the “California Global Warming Solutions Act” set potentially overwhelming obstacles to companies here as they try to meet competition based in other states and in foreign nations.
Even today’s list, below, understates business losses. It’s estimated that only one out of five losses become public knowledge, if that. Moreover, this list excludes many company investments made outside of California for justifiable growth or marketing reasons. See more about that at "Examples of Companies Excluded From California Disinvestment Event Listings."