13,000 Companies Have Left California in the Last Decade

California’s political environment has attributed to 275,000 jobs being lost and almost $80 Billion in business investment.

Here’s more economic information on this finding:

A record number of companies are leaving California for states with a better business climate, and a new report shows that Texas remains their No. 1 destination.

The study estimates that 1,800 relocation or “disinvestment events” occurred in 2016, the most recent year available, setting a record yearly high going back to 2008. About 13,000 companies left the state during that nine-year period.

“Departures are understandable when year after year CEOs nationwide surveyed by Chief Executive Magazine have declared California the worst state in which to do business,” said Vranich, a corporate relocation expert who jokes that he loves California’s weather, but not its business climate. Until recently, Spectrum and Vranich were based in Irvine, Calif. …

Hostility toward businesses, high utility and labor costs, punitive regulations and worrisome housing affordability for employees are among California’s other negatives, Vranich said. …

“Signs are that California politicians’ contempt for business will persist,” he said.

During the study period, 275,000 jobs and $76.7 billion in capital funds were diverted out of California. The departing companies acquired at least 133 million square feet elsewhere – and probably much more because such information often went unreported in source materials, Vranich said. …

Source: South Star Communities

Published by Hoosier Econ

Located out of Central Indiana. Blogger of economics, politics and societal trends.

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