JOSEPH VRANICH
PRESIDENT
SPECTRUM LOCATION SOLUTIONS
IRVINE, CALIFORNIA
949-551-3150
JOE@SPECTRUMLOCATIONSOLUTIONS.COM
California Business Departures:
An Eight-Year Review 2008-2015
Jan. 14, 2016
(Note: This is an update of the Dec. 31, 2015 report in order to clarify several data
points – major conclusions of the report remain the same.)
Disclaimer
All information published herein can be found in public sources of information. Because of NonDisclosure Agreements, which are standard in the Site Selection community, no confidential or
privileged information is contained in this report. Moreover, a significant number of
disinvestment events are never mentioned in public domain sources. Hence, this report
understates the extent of disinvestment events and migration of companies, capital and jobs to
out-of-California locations.
Copyright Notice
© 2015, © 2016– Commentary and rankings appearing in this report’s Preface through Chapter
15, and in the introduction to Chapter 24 and Appendices A and B may be used, but only if
attribution is given to “Joseph Vranich of Spectrum Location Solutions in Irvine, Calif.”
Table of Contents
Preface: Why Is This Report Necessary?........................................................................ 1
California’s Forty Year Legacy of Hostility to Business ................................................ 1
Three Previous Governors Cited Disinvestment Findings ........................................... 2
Brown Administration Record of Denials ..................................................................... 3
Chief Executive Surveys: California Ranks the Lowest ............................................... 4
Bureau of Labor Statistics: Drop in Number of California Businesses ......................... 4
Tax Analysis: California Third Worst in Nation ............................................................. 5
California’s New Facilities Ranking .............................................................................. 5
California New Facilities Ranking Per Capita .............................................................. 2
Sacramento’s Deaf Ears to Business Concerns .......................................................... 3
To Businesses: ‘You Are on Your Own’ ....................................................................... 3
Executive Summary ........................................................................................................ 4
Chapter 1: California Disinvestment Event Totals 2008 - 2015 ....................................... 9
Overview ...................................................................................................................... 9
How Media Coverage Influenced this Report .............................................................. 9
Why the Number of Disinvestments Is Understated .................................................. 10
Why the Findings in this Report Are Conservative .................................................... 10
Companies Strive to Avoid Publicity....................................................................... 10
Certain Types of Company Expansions Excluded from Report ............................. 11
Companies that Relocate to New York City Are Excluded from Report ................. 11
Only Primary Employers Are Counted ................................................................... 11
WARN Notices: An Incomplete Accounting of Events ............................................ 12
Likely that Offshoring Number Is Understated ....................................................... 12
Google Discontinued its News Archive Function .................................................... 12
Some Current Events May Not be Known for Years .............................................. 12
Clients Omitted from List ........................................................................................ 13
Total Capital Diversion Is Incalculable ....................................................................... 13
Job Losses Are Incalculable ...................................................................................... 13
Philanthropy: The Losses Are Incalculable ................................................................ 13
Chapter 2: It’s Difficult to Track Companies that Quietly Leave California .................... 14
Case Study: Thomas Brothers Maps ......................................................................... 14
Chapter 3: Why Would a Company Retract a Departure Announcement?.................... 15
Case Study: Comcast ................................................................................................ 15
Chapter 4: The Priority that Companies Give to Economic Incentives .......................... 17
‘Temporary’ Incentives Hold Great Appeal ................................................................ 17
‘Permanent’ Incentives Outranked by Other Factors ................................................. 17
How a Site Selection Project Progresses .................................................................. 18
Step 1: Potential Locations .................................................................................... 18
Step 2: Workforce .................................................................................................. 18
Step 3: Taxes, Regulations and Legal Environment .............................................. 18
Step 4: Community Attractiveness ......................................................................... 18
Step 5: The Facility ................................................................................................ 18
Step 6: Finalist Stage – When the Real Incentives Work Begins ........................... 19
Good Incentives Cannot Make Up for a Bad Location ............................................... 19
Location Decisions Can and Do Occur Without Incentives ........................................ 20
Chapter 5: California Offers Wide-Ranging Economic Incentives ................................. 22
Disclaimer .................................................................................................................. 22
Incentives from GO-Biz and Other State Agencies ................................................ 22
Special Incentives to Aerospace Companies ......................................................... 23
California Film Commission Incentives .................................................................. 23
Employment Training Panel Incentives .................................................................. 23
California Energy Commission Incentives .............................................................. 23
California Local Government Incentives ................................................................. 23
California State Incentives Recently Granted ............................................................ 24
Chasing California Incentives Might Not Mitigate Motivation to Relocate .................. 25
Chapter 6: Why California’s Business Environment is Likely to Worsen ....................... 26
New Service Tax Proposed ....................................................................................... 26
Higher Fuel & Motor Vehicle Taxes Proposed ........................................................... 26
Extension of ‘Temporary’ Proposition 30 Taxes Proposed ........................................ 26
Higher Cap-and-Trade Fees on the Horizon .............................................................. 26
Tax Increase on Business Properties Proposed ........................................................ 27
Public Officials Ignore Business Concerns ................................................................ 27
Chapter 7: Summary of Disinvestment Events by California County ............................. 29
Chapter 8: Summary of Disinvestment Events by California Municipality ..................... 32
Chapter 9: States that Gained from California Disinvestment Events ........................... 33
Chapter 10: Metropolitan Areas that Gained from California Disinvestment Events ..... 35
Chapter 11: U.S. Municipalities that Gained from California Disinvestment Events ...... 36
Chapter 12: Foreign Nations that Gained from California Disinvestment Events .......... 37
Chapter 13: Summary by Types of California Disinvestment Events ............................ 38
Chapter 14: Summary by California Industries .............................................................. 39
Chapter 15: Summary by California Functions .............................................................. 41
Chapter 16: Details Regarding 2015 Disinvestment Events .......................................... 42
Chapter 17: Details Regarding 2014 Disinvestment Events .......................................... 84
Chapter 18: Details Regarding 2013 Disinvestment Events ........................................ 128
Chapter 19: Details Regarding 2012 Disinvestment Events ........................................ 162
Chapter 20: Details Regarding 2011 Disinvestment Events ........................................ 200
Chapter 21: Details Regarding 2010 Disinvestment Events ........................................ 246
Chapter 22: Details Regarding 2009 Disinvestment Events ........................................ 278
Chapter 23: Details Regarding 2008 Disinvestment Events ........................................ 303
Chapter 24: Out-of-California Events Excluded from Disinvestment Lists ................... 317
Appendix A: Methodology ........................................................................................... 324
Appendix B: Joseph Vranich Biography ...................................................................... 327
Endnotes ..................................................................................................................... 329
1
Preface: Why Is This Report Necessary?
By Joseph Vranich
In California, costs to run a business are higher than in other states and nations –
largely due to the states tax and regulatory policies – and the business climate shows
little chance of improving. It is understandable that from 2008 through 2015, at least
1,687 California disinvestment events occurred, a count that reflects only those that
became public knowledge. Experts in site selection generally agree that at least five
events fail to become public knowledge for every one that does. Thus it is reasonable to
conclude that a minimum of 10,000 California disinvestment events have occurred
during that period.
The report has been designed to rely only on public sources of information – primarily
news reports and company reports to several government agencies. Each
disinvestment event can be substantiated simply by checking the entries against
sources of information available on the Internet. The nearly 2,600 endnotes in this
report would ease any such effort.
This report provides a catalog of disinvestment events, which is why the bulk of
Chapters 16 through 23 are fact-filled, listing actions by companies large and small. The
entries show that some companies left the state entirely while others declined to grow
their in-state facilities but invested in expansions elsewhere. A few companies that
planned to locate in California decided against doing so – performing a “U-Turn,” so to
speak.
California’s Forty Year Legacy of Hostility to Business
For nearly four decades, California’s economy grew despite the perception of having a
hostile business environment. Growth has been attributable to wonderful scenery and
climate, a workforce with technical expertise, and trade access to Asian nations. Growth
has occurred in spite of California’s policies toward commercial enterprises. It is difficult
to ascertain what the opportunity costs have been to California when businesses
elected to place facilities, capital and jobs to other states or nations.
However, it is not difficult to understand how long California has had business-hostile
policies. Back in 1977, to counter that image, Gov. Brown and his aides began wearing
buttons that read “California Means Business.” The Wall Street Journal, then covering
the Governor’s travels to Japan to promote investment in the state, reported:
“Our economic climate is very good.” Gov. Brown maintains. “I think this is
dissipating a good deal of the political rhetoric surrounding the business-climate
talk.” ... Politics has figured heavily in the business-climate debates. Gov. Brown,
for instance, terms much of the criticism ‘propaganda.’”1
2
Now, in Gov. Brown’s fourth term his Administration still claims that comments about
business departures are “propaganda,” but goes further and alleges that such remarks
are downright false.
I should know. After nearly 20 years living in California, I became weary of hearing
politicians deny that businesses leaving the state is anything to be concerned about.
Hence, some time ago I released findings that showed 254 companies conducted
disinvestment events in California during 2011. The list was widely reported by the news
media.
I was trying to motivate public officials in California to recognize that the state is one of
the costliest in which to do business – often between 20 and 35 percent higher than
other states – and to treat business in a more benign way.
Three Previous Governors Cited Disinvestment Findings
The list of 254 events wasn’t my first. Earlier, I had published a list of 99 companies that
were planning to leave the state in full or in part, findings that were noted in an
approving manner by former Governors Gray Davis, Pete Wilson and George
Deukmejian. They attached the findings in a jointly signed letter in 2010 to the California
Air Resources Board and then-Governor Arnold Schwarzenegger.2 The letter warned:
Since January 2007, more than 2,500 employers have left the state for other
states in the U.S. Approximately 109,000 jobs left with these employers. In
addition, many companies have shifted parts of their business activities out of
state and decided to expand their operations elsewhere. Attached are Dun &
Bradstreet lists detailing some of the losses and a list of specific businesses
which have left or reduced operations here. With two jobs lost for every one we
gain with other states the implications are clear.
California is now rated as the worst state in the Country to do business by
corporate relocation experts. Businesses around the world look closely at this
report to decide where they want to relocate and expand. A CEO from the
semiconductor industry was quoted as saying “The killer factor in California for a
manufacturer to create, say, 1,000 blue-collar jobs, is a hostile government that
doesn’t want you there and demonstrates it in 1,000 ways.”
Do not be misled by the often touted attraction of venture capital to California.
While start ups do occur in the state, when it comes time to ramp up the business
and jobs, all too often these companies heed the advice of business location
experts and head to [other states] who welcome them with open arms.
The letter from former governors Davis, Wilson and Deukmejian included the map
shown in Figure 1, which illustrates locations in the United States and Canada to which
California companies migrated. The D&B analysis covered the 2007-2011 time period.
3
Figure 1
Dun & Bradstreet Map of Locations in U.S. and Canada to which
California Companies Migrated
Brown Administration Record of Denials
Apparently, Gov. Brown’s office ignored that letter and missed the point of the list
regarding 2011 events. His Senior Business Advisor, Michael Rossi – often referred to
as the “jobs czar” – denied the list existed. He appeared before the Commonwealth
Club in San Francisco in 2012 declaring, simply, there “is no list.” He said:
The thing that strikes me as the most egregious is that people who say they have
a stake in California’s success continue to say things that are patently untrue.
One of those is that we have this large unemployment number, and it’s the result
of us not being competitive and a mass exodus from the state of businesses.
This is something that is primarily perpetuated by a gentleman in Orange County
who states the number is 254 companies left the state last year, and number one
we have to realize this gentleman makes his living relocating companies.
Secondly, there is no data anywhere where you can find numbers of companies
that have either entered or left this state. It’s just not kept.... so there is no
justification for the statement that there is this mass exodus from the state of
California.3 (Emphasis added – J.V.)
While it is true that there is no central repository of such information kept by any
government agency, it is also true that the information in the list, based on easily
accessible research, was the very “data” that he denied existed. The list named the
companies, where they were located in California, which out-of-California locations
benefitted from their investments and, when available, statements from companies
about the disinvestment event.
4
In no manner was the list portrayed as an absolute and conclusive document. It was
always clear the list was a “snapshot” of what was occurring in California. That is also
true for this more comprehensive report, which builds on that earlier list.
Moreover, this report shows that the figure of 254 events in 2011 was too conservative
– further research into public information shows there were 302 disinvestment events
that year.
Gov. Brown trivialized overtures to California companies by officials in other states. His
spokesman said that “Reputable studies have shown that businesses are not fleeing the
state for the cold, empty and desolate hinterlands.” Sacramento Bee Columnist Dan
Walters observed, “The response typified the Capitol’s dismissive attitude toward any
suggestion that we have become economically uncompetitive.”4
As if all that weren’t enough, in 2014 when Toyota Motor Corp. announced it will move
its Torrance headquarters to Plano, Texas, Gov. Brown revealed his aloofness towards
business challenges by saying, “We’ve got a few problems, we have lots of little
burdens and regulations and taxes, but smart people figure out how to make it.”5 The
Wall Street Journal came back with this: “California’s problem is that smart people have
figured out they can make it better elsewhere.”6
Chief Executive Surveys: California Ranks the Lowest
For the 11th year in a row, Chief Executive Magazine found California to be the “worst
state for business.”7 CEO’s comments include: “California could hardly do more to
discourage business if that was the goal.” “The state regulates and taxes companies
unreasonably.” “California is getting worse, if that is even possible.”
Bureau of Labor Statistics: Drop in Number of California Businesses
Such views compel that a different metric about business losses also be considered.
Between 2011 and 2012, Bureau of Labor Statistics data compiled by Bloomberg News
indicated that California lost ground in a related category: the number of business
establishments: “There were 1.3 million businesses in California at the end of 2012, 5.2
percent fewer than in the previous year (that’s about 73,000 fewer).” Florida, another
state hard hit by the bursting of the real estate bubble, and the state with the second
most businesses, added new businesses at the nation’s seventh-fastest rate.”8
Admittedly, for both states, the BLS metrics included both primary businesses (national
firms) and secondary businesses (entities such as independent, non-chain retail
stores). Nonetheless, the findings echoed the message in the report about the 2011
disinvestment events of primary employers that Gov. Brown’s office disparaged.
5
Tax Analysis: California Third Worst in Nation
Taxes are a major factor in the cost of doing business. The Tax Foundation’s 2015
State Business Tax Climate Index lists California at No. 48 – the third worst for business
in the nation.9 Also, according to Larry Kosmont, President of Kosmont Companies and
founding publisher of the Kosmont-Rose Institute Cost of Doing Business Survey,
“California continues to have the highest business tax climate on the West Coast. This
reality compels businesses to reconsider their relationship with the State and look
elsewhere for a lower-cost solution.”10
California’s New Facilities Ranking
It has long been understood that many new facilities open in California every year. That
is to be expected in a state as large and populous as California.
Site Selection magazine’s parent company, Conway, Inc., annually examines openings
of large facilities on a state-by-state basis. Of course, when the assessment is based on
the number of projects, the larger states will always come out ahead of smaller states.
California is the nation’s third largest state in area. Also, California remained the
nation’s most populous state in 2014, with 38.8 million residents.11 Nonetheless, the
number of new facilities that opened during 2014 in California – 170 in all – placed the
state in the not-so-illustrious No. 12 position, as Table 1 indicates12:
Table 1: Rankings 2014 Total Facilities
Rank
Number of
New
Facilities
State
1
689
Texas
2
582
Ohio
3
394
Illinois
4
313
North Carolina
5
311
Georgia
6
258
Kentucky
7
230
Michigan
8
227
Pennsylvania
9
200
Louisiana
10
195
Tennessee
11
189
Virginia
12
170
Indiana
12
170
California
14
157
New York
15
149
Florida
16
143
Wisconsin
17
134
South Carolina
18
116
Alabama
19
109
Kansas
20
95
Missouri
21
92
Minnesota
22
90
Arizona
23
88
Iowa
24
81
Maryland
25
75
Oklahoma
26
60
Massachusetts
27
59
New Jersey
28
58
Arkansas
28
58
Utah
30
53
Colorado
31
46
Mississippi
32
33
Washington
33
32
Nevada
34
28
Oregon
35
27
South Dakota
2
35
27
Nebraska
44
9
Vermont
35
27
Connecticut
44
9
Delaware
38
20
North Dakota
47
7
Alaska
39
19
New Mexico
47
7
Rhode Island
40
18
West Virginia
49
5
New Hampshire
41
14
Idaho
50
3
Hawaii
41
14
Maine
51
2
District of Columbia
43
10
Wyoming
44
9
Montana
Source: Conway New Plant Database
California New Facilities Ranking Per Capita
A more relevant assessment is based on an evaluation based on the most qualifying
projects per capita (in this case per 1 million population). According to Site Selection
magazine, “Qualifying projects meet one or more of these criteria: a minimum capital ...
investment of $1 million, 20,000 sq. ft. (1,860 sq. m.) or more of new construction, or
creation of 50 or more new jobs.”13 Under the new facility openings per capita scenario,
during 2014, California was in the unenviable No. 48 position, as Table 2 indicates14:
Table 2: Rankings 2014 Total Facilities
per Capita
Rank
Number of
New
Facilities
State
1
58.5
Kentucky
2
50.2
Ohio
3
43
4
37.5
Kansas
5
31.6
South Dakota
6
31.5
North Carolina
7
30.8
Georgia
8
30.6
Illinois
9
29.8
Tennessee
10
28.3
Iowa
11
27.7
South Carolina
12
27
13
25.8
Indiana
14
25.6
Texas
15
24.8
Wisconsin
16
23.9
Alabama
17
23.2
Michigan
18
22.7
Virginia
Louisiana
North Dakota
19
19.7
Utah
20
19.6
Arkansas
21
19.3
Oklahoma
22
17.8
Pennsylvania
23
17.1
Wyoming
24
16.9
Minnesota
25
15.7
Missouri
26
15.4
Mississippi
27
14.4
Nebraska
27
14.4
Vermont
29
13.6
Maryland
30
13.4
Arizona
31
11.3
Nevada
32
10.5
Maine
33
9.9
Colorado
34
9.7
West Virginia
35
9.6
Delaware
36
9.5
Alaska
37
9.1
New Mexico
38
8.9
Massachusetts
39
8.8
Montana
40
8.6
Idaho
41
8
New York
3
42
7.5
Connecticut
48
4.4
California
42
7.5
Florida
49
3.8
New Hampshire
44
7.1
Oregon
50
3
45
6.7
Rhode Island
51
2.1
46
6.6
New Jersey
47
4.7
Washington
District of Columbia
Hawaii
Source: Conway New Plant Database
Sacramento’s Deaf Ears to Business Concerns
Business interests have provided an encyclopedic accounting of California’s difficult
environment to Gov. Brown and the Legislature to no avail. An example of concerns is
evident in this comment by Ehsan Gharatappeh, Chief Executive Officer of CellPoint
Corp. of Costa Mesa. In early 2015, when launching a new facility in Fort Worth, he said
in testimony in Sacramento:
Even if California were to eliminate the state income taxes tomorrow, that still
would not be enough to put my manufacturing operations back in California.15
To Businesses: ‘You Are on Your Own’
As research reports go, this one is quite long on data and relatively short on
commentary because the facts speak for themselves.
An appropriate conclusion to this Preface is a comment from Joel Kotkin, a professor,
author and observer of California’s political, business and social environment:
“Here’s the bitter reality for business in much of California: there’s no cavalry
riding to rescue you from the state’s regulatory and tax vise. The voters in
California have spoken, and with a definitive, distinctive twist, turned against any
suggestion of reform and confirmed the continued domination of the state by
public employee unions, environmental activists and their crony capitalist allies.
In short, you are on your own.”16
4
Executive Summary
The reason this report is timely and important is outlined in the Preface. For about 40
years California has been viewed as a state in which it is difficult to do business. Gov.
Jerry Brown’s Administration’s less-than-candid approach regarding the business
climate has misled the Legislature, the news media and the public about the flight of
capital, facilities and jobs to other states and nations.
It is time to set the record straight by providing details about the manner in which
companies have disinvested in California in recent years (in this case between 2008
through 2015), with supporting details in every instance.
No private data bases or proprietary tools were used to gather the findings in this report.
This study is based exclusively on public information such as stories published or
broadcast by the news media, company announcements, and company reports to the
U.S. Department of Labor, the Securities and Exchange Commission and the California
Employment Development Department.
As noted in the Preface, similar findings published by Spectrum Location Solutions were
published in years past, findings that former Governors Gray Davis, Pete Wilson and
George Deukmejian cited when warning the California Air Resources Board and thenGovernor Arnold Schwarzenegger about California’s poor business climate. Instead of
claiming otherwise, Gov. Brown should heed such warnings and work to improve the
state’s treatment of businesses.
The tables in the report show conclusively that in the 2008-2015 period, a total of 1,669
California disinvestment events became public knowledge. However, experts in site
selection generally agree that at least five events fail to become public knowledge for
every one that does. Thus it is reasonable to conclude that about 10,000 disinvestment
events occurred during that period.
The following are factors to consider about the estimate and how the report is designed
to avoid overstating its case:

Smaller companies are in a better position than large corporations to avoid
publicity about a relocation; the result is no publicity on companies that comprise
the biggest single category of disinvestment events.

The report omits events that have little to do with California’s business
environment. For example, companies that expand elsewhere in a clear effort to
gain new customers are excluded from the listings.

Only “primary employers” are included – those like Hilton Hotels, Northrop
Grumman and Sony Pictures Imageworks – whose customers are nationwide or
worldwide (such employers bring wealth into a community). All “secondary
employers” (which exchange wealth already in a community) such as retail
5
stores, restaurants, dry cleaners, beauty salons, nurseries – an inexhaustible list
of enterprises – are excluded.

Under the California Worker Adjustment and Retraining Notification Act, a
company is required to file a furlough notice (“WARN Notice”) with the California
Employment Development Department giving notice if it employs 75 employees
or more. A review of WARN Notices indicates the absence of companies with 74
employees and lower that are known through other sources to have closed in
part or completely and moved out of state. In short, WARN Notices represent an
insufficient source of information about disinvestment events.

When it comes to U.S. Department of Labor Trade Adjustment Assistance (TAA)
cases, to be conservative information was extracted from “certified decisions”
only. Information in “denied petitions” was excluded even though evidence was
available that California jobs were lost. Moreover, the status of current TAA
cases is difficult to determine because of the agency’s procedures, and DOL
comprehensiveness is lacking because many cases aren’t filed with the agency.
The bottom line is that offshoring events are under-reported based on DOL data.

Finally, events that occurred in the study period have yet to come to light but
experience shows that some will in the future. Sometimes media stories reveal
events that occurred a year or two earlier, or events come to light in new
speeches and reports.
For all the above reasons, it’s highly likely that California’s losses are understated.
California disinvestment events are defined as companies that (1) relocate entire offices
and facilities to an out-of-state location, (2) remain in the state but expand elsewhere
with facilities that heretofore were built in California, (3) close completely with production
moving to competitors in dispersed locations, (4) shift work to a foreign nation through
offshoring, outsourcing or relocation, (5) cancel a project after it has been announced,
or (6) perform a “U-Turn” – which means considering a California location but rejecting it
after studies favor a location outside of the state’s borders.
The report provides information regarding all California counties that have experienced
disinvestment events. The Top 15 Counties in the order starting with the most events
are:
(1) Los Angeles, (2) Orange, (3) Santa Clara, (4) San Francisco, (5) San Diego,
(6) Alameda, (7) San Mateo, (8) Ventura, (9) Sacramento tied with San
Bernardino, (11) Riverside, (12) Contra Costa tied with Santa Barbara, (14) San
Joaquin and (15) Stanislaus. The ranking ends at the Top 15 because numerous
tied events after that make results less meaningful.
Causes for the top three vary considerably. Los Angeles has the worst ranking in part
because it has so many businesses, but also because doing business is costlier in Los
Angeles than in just about any other California location outside of the San Francisco
Bay Area.
6
In second place is Orange County, an anomaly based on the fact that the Orange
County Register in the past did an exceptional job in reporting on such events. In third
place is Santa Clara County, where disinvestment motivations are more complex and
include shifting capital to many out-of-state projects.
In addition to counties, the report indicates California communities affected by
disinvestment events. The Top 10 Communities in the order starting with the most
events are:
(1) Los Angeles tied with San Francisco, (3) Irvine, (4) San Jose, (5) San Diego,
(6) Santa Clara, (7) Mountain View, (8) Sunnyvale, (9) Fremont and (10) Palo
Alto.
Other states benefit from California disinvestment events. The Top 10 States in the
order starting with those that gained the most are:
Texas retains its long-held No. 1 spot, followed by (2) Nevada, (3) Arizona, (4)
Colorado, (5) Washington, (6) Oregon, (7) North Carolina, (8) Georgia, (9)
Florida, and (10) Utah tied with Virginia. Texas was the top destination for
California companies each year during the eight-year study period.
Out-of-state Metropolitan Statistical Areas (MSAs) benefit from California disinvestment
events. The Top 10 MSAs in the order starting with those that gained the most are:
(1) Austin-Round Rock-San Marcos, (2) Dallas-Fort Worth-Arlington, (3) PhoenixMesa-Scottsdale, (4) Reno-Sparks, (5) Las Vegas-Paradise, (6) Denver-AuroraLakewood tied with Portland-Vancouver (WA)-Hillsboro, (8) Seattle-TacomaBellevue, (9) Atlanta-Sandy Springs-Marietta and (10) Salt Lake City-OgdenClearfield.
This report provides a list municipalities that have benefitted from California
disinvestment events ranging from fast-growth Austin to rural Eagle, Idaho, to techemergent Pittsburgh, and to many others. The Top 15 Municipalities in the order starting
with those that gained the most are:
(1) Austin, (2) Reno, (3) Las Vegas, (4) Seattle, (5) Phoenix, (6) Dallas (7) San
Antonio tied with Portland, Ore. (9) Denver, (10) Scottsdale AZ, (11) Atlanta, (12)
Houston, (13) Plano TX tied with Colorado Springs CO, and (15) Nashville tied
with Irving TX and Salt Lake City.
California experienced 432 disinvestment events that involved international
destinations. The Top 10 Nations in the order starting with those that gained the most
are:
(1) Mexico, (2) India, (3) China, (4) Canada, (5) Costa Rica (6) Malaysia, (7)
Philippines, (8) Singapore, (9) Japan, and (10) Great Britain.
7
Codes are used in each individual Table for 2008 through 2015 events to help identify
what kind of event has occurred. For example, in which industry did events occur –
surpassing all others was manufacturing with more than 550 events during the study
period. Also, what function is affected – in the top spot were headquarters operations
with more than 300 events. Finally, what type of event occurred – and the most
numerous were complete or partial relocations with more than 1,000 investments in a
point outside of California.
The difficulty in tracking disinvestment events is illustrated by how the headquarters for
Thomas Brothers Maps, a California legacy institution since 1915, simply disappeared
from Irvine. No public notice appeared about the event, but a former employee tipped
off an individual working on this study, who investigated and confirmed the event.
Without the caller’s prompting, the departure would probably still be unknown. This
report provides a case study of the event.
California officials can be quick to deny the state’s difficult business environment. They
may even put pressure on companies to understate the extent of their displeasure with
state policies. In one case, Comcast issued a news release about moving California
jobs to Portland, Seattle and Denver because of “high costs.” But it’s likely that some
type of pressure was put on Comcast to tone down its statement to say that other
reasons were responsible; a Silicon Valley Business Journal story about the event was
headlined, “Comcast tones down blame on state for closing call center.”
The story mentioned a call from the Governor’s office about statement from the
Governor’s “jobs czar” that Comcast “inaccurately placed blame on the state but I am
pleased to see the executives at Comcast taking responsibility and correcting the
statement.” There has not been a plausible explanation for why a company with strong
internal controls and a professional Public Relations department would have issued
such a statement and then to have revised the statement, removing all references to
California’s high costs of doing business.
The report provides an outline of how a Site Selection Project proceeds, which
illustrates how many other considerations come to the forefront before a company
considers incentives from other states. In short, incentives rank pretty low on the list – in
fifth, sixth or seventh place – while at the top of the list are workforce availability,
proximity to suppliers and transportation links.
Also, information is provided regarding the types of economic incentives that California
offers to retain existing company facilities and to induce companies to move to the state.
Incentives are available through the state’s GO-Biz program, special legislation for
aerospace companies, California Film Commission, California Energy Commission and
the Employment Training Panel. Other incentives are available from county or municipal
governments and utilities depending upon circumstances and location.
The evidence regarding California disinvestment events is the detail presented for each
year from 2008 through 2015. Details for each event specify the name of the company,
which California county and locality is affected, the destination by nation or state and
municipality, and codes to describe the event.
8
Such factual details constitute the bulk of this report and should be sufficient to convey
the scope of California disinvestment events. Extensive endnotes will ease efforts to
confirm the details of such events.
Finally, California is considering imposing a broad set of new taxes, tax extensions and
fees on businesses in 2016 and 2017 – a “tsunami” that may trigger the worst demands
on private-sector finances ever organized by the state’s politicians. It is highly likely that
one result will be an increasing number of disinvestments in California in favor of
greener domestic or international pastures.
9
Chapter 1: California Disinvestment Event Totals 2008 - 2015
Overview
Overall, in the 2008 through 2015 period, a total of 1,669 California disinvestment
events became public knowledge. That time span was selected because a considerable
amount of work for the years prior to 2011 had been completed, but not released in
conjunction with the 2011 findings and, of course, events through 2015 are relevant.
Those familiar with the 2011 report that showed 254 disinvestment events may wonder
why the number for that year has since grown to 302 events in this report. That is
because “certified decisions” regarding California companies moving jobs and facilities
to foreign nations, as reported in U.S. Department of Labor Trade Adjustment
Assistance Cases, were examined and contributed to the higher number of events.17
The annual breakdown of the 1,687 disinvestment events is shown in Table 3. In
comparing years, there is no discernable pattern in the number of events because of the
irregular nature of media reports and company reports to government agencies.
Nonetheless, the totals represent a reasonable snapshot of events.
Table 3
California
Disinvestment
Events
Year
Totals
2008
123
2009
191
2010
242
2011
302
2012
241
2013
194
2014
218*
2015
176*
Total
1,687
*The 2014 and 2015 totals will grow over time as many events will become public knowledge
after the fact – sometimes one or two years later.
How Media Coverage Influenced this Report
In relying on public sources of information the frequency of media coverage greatly
influenced the findings. In the 2010-2012 period, media reporting on the recession and
the economy included heightened references to disinvestment events, which influenced
10
the higher numbers. If an event fails to become public knowledge, it is impossible for it
to become a part of this report.
Additionally, the media can alter the manner in which it covers such events. To
illustrate, citations in this report for the Orange County Register numbered nineteen in
2010 and twelve in 2011, while there was only one citation in 2014 and two in 2015. The
newspaper’s lower rate of published stories, should it continue, will cause a decline in
known events in Orange County in the future.
Why the Number of Disinvestments Is Understated
All events are based on public sources of information, and as a result this report
substantially understates California disinvestment events because so many are
completed with no public notice or record whatsoever. In preparing this report, site
selection consultants and economic development personnel from across the nation
were asked this question:
For every company that leaves an area – any area, not just California – how
many others make such a move without any media coverage or without having to
file a report with the state or Federal government? In short, how many would you
say are unknown?
Responses generally range from “five,” to “seven,” with a few saying “ten” are unknown.
The smaller the company, the easier it is to disinvest in one area and invest in a new
area without notice.
For purposes of extrapolation, this report will rely on the most conservative estimate –
that information about five events do not become public knowledge for every one that
does. With that accepted multiplier in mind, it is reasonable to conclude that the 1,687
California disinvestment events during the 2008-2015 period translates to 10,000
events.
Why the Findings in this Report Are Conservative
Other factors, noted below, suggest that the compilation of 1,687 events is reasonable
and, indeed, conservative.
Companies Strive to Avoid Publicity
Smaller companies are in a better position than large corporations to avoid publicity
about a relocation. More often than not they avoid issuing an announcement. A quiet
departure can reduce the risks of pressure from politicians or “final inspections” by
regulatory agencies seeking their last opportunity to issue fines (which in California are
transmitted into the account of the agency issuing the fine; not into the general
treasury). The result is no attempt at publicity.
11
Sometimes, the company is not so small. See the Chapter in this report entitled, “It’s
Difficult to Track Companies that Quietly Leave California” – which is about Thomas
Brothers Maps making a quiet departure from Irvine for Illinois and India.
Certain Types of Company Expansions Excluded from Report
For example, companies that expanded elsewhere to serve new territories or gain new
customers – actions that appear to be unrelated to California’s difficult business
environment – are given the benefit of the doubt and are excluded from the list. For a
list of such events, see the Chapter in this report entitled, “Out-of-California Events
Excluded from Disinvestment Lists.”
Companies that Relocate to New York City Are Excluded from Report
It is doubtful that a corporation moving to New York City is doing so because it was
motivated by California’s difficult business environment considering that the city’s
business practices are similar to those found in California. Hence, such moves are not
counted as disinvestment events. Examples of excluded New York City moves can be
found in the Chapter in this report entitled, “Out-of-California Events Excluded from
Disinvestment Lists.”
The one exception to the above is Bustle.com, which left San Francisco for New York
City, because of the comments by company founder, Bryan Goldberg. He said he will
“be leaving California next year and de-establishing residency to be with my new
company. No more 13.3 percent of my income for you, California. How does 0 percent
sound? That sounds good to me.” See more in the Bustle.com 2013 event.
Only Primary Employers Are Counted
This report includes only “primary employers” – e.g., those like Hilton Hotels or Sony
Pictures Imageworks that sell the majority of their goods and services nationwide or
even worldwide. Excluded are “secondary employers” such as retail stores, restaurants,
furniture wholesalers, dry cleaners, beauty salons (an inexhaustible list of enterprises) –
businesses that are dependent on the wages that primary employers provide. Another
way of saying it is that primary employers bring wealth into the community from other
places that increase local prosperity. Generally, the new money circulates within the
community benefiting secondary employers (local businesses) through increased
resident spending.
Generally, the futures of secondary employers rise and fall depending on what happens
with primary employers. This report excludes all events by secondary employers, which,
if tallied, would vastly exceed the number of events published in this report.
12
WARN Notices: An Incomplete Accounting of Events
Under the California Worker Adjustment and Retraining Notification Act, a company is
required to file a furlough notice (“WARN Notice”) with the California Employment
Development Department giving a 60-day notice if it employs 75 employees or more
and lays off 50 or more during any 30-day period. A review of WARN Notices indicates
the absence of companies with 74 employees and lower that are known through other
sources to have closed completely or in part and left the state. Also, the absence of
WARN Notices has permitted events to occur without any publicity.18
Likely that Offshoring Number Is Understated
It is believed that offshoring events are under-reported based U.S. Department of Labor
Trade Adjustment Assistance (TAA) case reports and hearsay evidence that many
employees don’t file for assistance. To be conservative, only “certified decisions” along
with a few reports from other agencies were included in this report. Events described in
petitions denied by the DOL was excluded even though evidence was provided that
California jobs were lost.19
The only commentary on TAA’s comprehensiveness is found in a study more than a
decade old, which states, “According to the estimate of the manufacturing job loss
situation in 2003, less than 40% of potentially eligible workers even applied for TAA –
and only 13% of the potentially eligible workers received benefits.20 Also, the report
excludes all TAA cases that are under consideration by a Court of Appeals and all
cases not yet included in the data base because of delays in the DOL process.
Google Discontinued its News Archive Function
Occasionally, a vague reference would appear that a certain company relocated. When
Google was offering a News Archive search feature, it could at times be fairly easy to
locate a story with particulars about the event. With that feature now gone, the ability to
confirm a sketchy event is difficult and sometimes impossible. Hence, although some
events are known to have occurred, without specifics they are excluded from this report.
Some Current Events May Not be Known for Years
In the future, more events that occurred in the study period will come to light. This most
often occurs when journalists produce stories about company expansions that follow
prior relocations or, in some cases, when speeches are given or new reports are filed.
Admittedly, such events can be difficult to locate unless specific news alerts are
established on Internet search engines. In any event – and this is but one example –
Com Dev USA, a satellite component builder, relocated manufacturing from El Segundo
to Cambridge in Ontario, Canada. This 2014 event was unknown until a 2015 news
story revealed the event21 and allowed for further online investigation.
13
Clients Omitted from List
Clients of Spectrum Location Solutions and The Business Relocation Coach (related
businesses) are covered by strong Non Disclosure Agreements (NDA) and all clients
are excluded from this list, per their expectations and as legally required.
Total Capital Diversion Is Incalculable
The amount of capital diverted to out-of-California locations during the eight-year period
totals about $70.5 billion based on the events cited in this study. However, the amount
is greatly understated because only about 16 percent of reports on disinvestment
events provided information about initial capital investments. Moreover, reports on
capital expenditures for follow-on expansions are even more scarce.
There is no reliable way to estimate the full extent of capital diversion from California
through public documents, but the total would be substantially in excess of the $70.5
billion.
Job Losses Are Incalculable
Few news media reports on disinvestment events contain figures for the number of jobs
lost. Hence, no attempt is made to provide a total by year or for the study period. When
available, job losses are reported in the Tables for the events to help illustrate the extent
of a specific event.
Philanthropy: The Losses Are Incalculable
Public sources of information on disinvestment events virtually never report the extent to
which philanthropic contributions decline in California communities and increase in new
communities.
Anecdotal accounts indicate that the financial amounts are considerable, as are
volunteer contributions for institutions such as Habitat for Humanity, the United Way,
children’s hospitals and other entities. However, since it is impossible to determine a
value in this arena, the report omits references to such projects and does not provide
any financial estimates, nor does it include references for volunteer time dedicated to
projects.
14
Chapter 2: It’s Difficult to Track Companies that Quietly Leave California
Case Study: Thomas Brothers Maps
Thomas Brothers Maps was a legacy California institution. The company was renowned
for its map books that covered the state’s metropolitan areas and counties long before
on-line maps became available. It was founded in Oakland in 1915, moved to Los
Angeles in the 1940s and relocated to Irvine in 1980.22 Despite its high profile, the
company’s headquarters disappeared from Irvine with no public notice.
However, a former employee tipped off an individual working on this study, who then
went to the Thomas Brothers offices and found it empty. Without the caller’s prompting,
the event would probably still be unknown and would not be found in this report.
Hush-hush disinvestment events can be carried out so skillfully that even Thomas
Brothers, with a 94-year history in the state, can pull it off. Rand McNally acquired
Thomas Bros. Maps in the late 1990s for about $30 million and at the time said it
planned to retain its 180 employees and the Irvine headquarters.23 But the company
closed in Irvine around November 2009. Apparently Rand McNally moved some jobs to
Skokie, Illinois, while map production was further solidified in Bangalore, India, where
some production had already been located.
Nearly a year after its departure, the company’s name still appeared on the Irvine
headquarters building, which was available for sale or lease. When asked, a
commercial real estate broker didn’t say much about Thomas Brothers Maps or the
facility, but confirmed “they’re gone.” The listing for the 57,890 square foot structure –
described as a “Manufacturing-Warehouse Building” and “Creative Office Space” – was
“Priced for Immediate Occupancy.”
The former employee said that Thomas Brothers’ Irvine employment was around 200
before the outsourcing to India started in 2003. He said the company was well liked and
he thought Rand McNally didn’t publicize the move since they didn’t want to drive away
California customers. He said, “By the time Irvine closed, it was down to about 20
employees.”
The Orange County Register published a story – the only article appearing anywhere in
the state – about the company’s departure.24 Again, as emphasized earlier, for every
company whose disinvestment event makes the news, countless others are
implemented quietly, with the estimate being five unknown events for every one that
becomes public knowledge.
15
Chapter 3: Why Would a Company Retract a Departure Announcement?
Case Study: Comcast
California officials can be quick to deny the difficulties with the state’s business
environment. They may even put pressure on companies to understate the extent of
their displeasure with state policies. Rarely, however, does such a situation make news,
and it started with a company announcement that was the basis of this San Jose
Mercury-News account:
Comcast will eliminate about 1,000 jobs in Northern California, including more
than 300 in the East Bay and more than 300 in the South Bay, as it closes call
centers in Livermore, Morgan Hill and Sacramento. The telecommunications
giant blamed the cuts on California’s high costs. “We have concluded that the
cost of doing business makes operations in California expensive and very
difficult,” said a company spokesman.25
No politician should have been surprised at what Comcast said about moving jobs to
Portland, Seattle and Denver because the company indicated what many others in
business have said. (Indeed, Comcast has continued to expand elsewhere, too, as is
the case when it created 250 call center jobs in Knoxville and 200 such jobs in
Nashville, both in 2015.26) The same story reported:
“The cost of doing business in California is a well-known problem across the
country and among business owners in the United States,” said Scott Anderson,
chief economist with San Francisco-based Bank of the West. “With the fiscal
problems in California, these expenses will likely get higher. Tax rates may rise in
California.”27
It appears that Sacramento became unhinged by such a politically incorrect statement.
It seems likely that some type of pressure was put on Comcast to tone down its
statement to say that other reasons are responsible for the shutdowns. Diana Samuels,
a reporter for the Silicon Valley Business Journal, wrote a story that was headlined,
“Comcast tones down blame on state for closing call center.”
She wrote that she received a call and email from “Brook Taylor, a deputy director at the
governor’s Office of Business and Economic Development. Taylor said Comcast had
amended its statement and wanted to make sure I saw it.”28
Taylor sent the reporter a quote attributed to Gov. Brown’s Senior Business Advisor,
Michael Rossi – often referred to as the “jobs czar” – which said, “It is unfortunate that
Comcast’s announcement to eliminate jobs in California inaccurately placed blame on
the state, but I am pleased to see the executives at Comcast taking responsibility and
correcting the statement.” Samuels added: “The new statement removes any mention of
California being an expensive place to do business.”29
16
Comcast’s revised statement began as follows:
“The reports carried in the media earlier today attributing Comcast’s decision to
transition to a different model for its call center operations are incorrect. The
reasons for Comcast’s decision are as follows. After careful analysis of the
market and our operations, Comcast has determined that in order to run cost
effective call centers that are focused on the customer experience, our
customers will be served better in the long run by establishing specialized call
centers focused on particular customer needs rather than on geography. 30
In the highly regulated and politically charged environments that large companies
operate in, it is not surprising that announcements on facility relocations are often
couched in language that avoids any sort of political confrontation. Also, it is difficult to
believe that a location decision wasn’t influenced by lower business and employee
costs, taxes and regulations, which could lead to a possible reduction in business
expenses by between 20% and 35%.
There has not been a plausible explanation for why a company with strong internal
controls and a professional Public Relations department would have issued such a
statement, only to revise the statement, removing all references to California’s high
costs of doing business.
Sacramento’s difficult attitudes toward business transcends the Comcast case. As The
Economist put it:
It is boom time again in Silicon Valley.... But beyond the gilded strip of land
between San Francisco and San Jose is another California, an inhospitable place
plagued by over-regulation, mindless bureaucracy, high taxes and endless
lawsuits.31
And high costs all the way around.
17
Chapter 4: The Priority that Companies Give to Economic Incentives
‘Temporary’ Incentives Hold Great Appeal
Some believe that companies are inspired to look favorably upon other states primarily
because of economic incentives that may be available to them.
In only one industry does that observation appear to be true – film and television
production. Hollywood producers have been heard to say they would prefer shooting
their movies in California but “have to go where the incentives are.”32 Moreover, it’s
much easier to “chase incentives” in the film industry because the placement of
activities in other locations is temporary. (These are sometimes called “runaway
productions.”) The story is far different for a company relocating an office or factory –
and its people – to another location permanently.
‘Permanent’ Incentives Outranked by Other Factors
The reality for non-film companies is different. Area Development Online points out that
“it’s still the case that economic incentives rank lower on location-decision lists than
workforce considerations, regulatory hurdles, and infrastructure factors.”33 Experience at
Spectrum Location Solutions with clients verifies that view, with workforce
considerations usually at the top of the list – and lifestyle factors surprisingly high when
it comes to privately owned businesses and companies with healthy work environments.
The motivations to invest outside of California virtually always exist before potentially
available incentives are understood. Deciphering what incentives are available for a
particular company or facility is a significant undertaking considering that statutes,
policies and application procedures vary widely among the 3,141 counties and county
equivalents in the 50 States and the District of Columbia.34 Moreover, there are
separate entities authorized to offer incentives that include state and local economic
development agencies, utility firms and industrial development corporations.
Generally, a site search involves deliberation regarding the objectives of the project, an
agreement upon what variables will be considered, and how the upcoming work can be
done while minimizing time, costs and risks.
The biggest concern in a site selection project isn’t about incentives – it’s about which
locations offer a qualified workforce.
Following are examples of the steps taken before consideration of incentives comes
seriously into play.
18
How a Site Selection Project Progresses
Step 1: Potential Locations




Outline business preferences for certain nations, regions, states or communities.
Specify customers, suppliers, other institutions preferred as neighbors.
Identify the aviation, highway, railroad, seaport or barge services required.
Conduct initial analysis of workforce factors.
Step 2: Workforce

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Inquire about preferred labor-force demographics and ease of recruitment.
Quantify the number of jobs and salary ranges in the new location for each job
description.
Estimate growth – how many jobs will be placed in the new location, and of those
how many will be filled by existing employees that will relocate.
Review employee policies relating to relocation, retention or severance.
Step 3: Taxes, Regulations and Legal Environment

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
Compare state, county, municipal and special district business taxes.
Measure personal taxes to calculate impact on employees.
Evaluate state and local government regulatory requirements.
Assess the legal environment for businesses among candidate locations.
Step 4: Community Attractiveness

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
Differentiate key lifestyle factors preferred in a community and surrounding area,
especially quality of schools and educational attainment.
Evaluate housing affordability for employees relocating to the location.
Anticipate the fit into the local cultural, philanthropic and civic environment.
Examine levels, patterns and types of crime.
Visit and ask the question, “Is this the place I want to live?”
Step 5: The Facility

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
Identify the type of building – clarify desire to build new or buy or lease building.
Determine a range of specifications for the ideal facility and/or land requirements.
Estimate energy requirements, types of energy required and costs.
Develop a timeline for the move.
19
Step 6: Finalist Stage – When the Real Incentives Work Begins
Information about incentives may be gathered at any stage of the process. However,
when finalist communities (usually three) are under evaluation is when the deep
analysis is made of incentives to determine their value and negotiations begin.
Seeking incentives is far from being a casual activity – the activity can involve a great
deal of work, much internal discussion, drawn-out negotiations with multiple agencies,
and a legal review of contract terms and conditions.
The first layer of complexity is determining the potential value of a wide array of
economic incentives – proactive and retroactive – such as Tax Credits, Tax
Abatements, Tax Rebates, Discounted Utility Rates, Industrial Development Bonds,
Fast Track Permitting, Training Grants, Cash Grants, Workforce Recruitment Aid,
Infrastructure Grants, Low-Cost Financing, Fee Waivers and assistance with Foreign
Trade Zones and Enterprise zones.
The second layer of complexity is projecting the nature of incentives at the time in the
future when an event may occur. Doing so can be time-consuming as state and local
granting authorities may revise their policies regarding taxes, type of business,
investment requirements, threshold of jobs created and compliance requirements.
Sometimes even the number of hotel nights that the community expects to gain from the
project will be given a valuation and taken into consideration.
The third layer of complexity is ensuring that the company meets all the requirements to
qualify as part of the cumbersome and potentially lengthy application and approval
process. That must be followed by a compliance program that involves annual
certifications regarding job and investment totals that confirm the company is meeting
its commitments.
Furthermore, incentives may be offered not in the current fiscal year but in the next one
should the agency with granting approval be on the verge of depleting its budget for a
particular incentive. Also, unpredictability comes into play when a legislature or city
council has a say in the matter.
Good Incentives Cannot Make Up for a Bad Location
As outlined above, many factors need to be evaluated before committing to a location in
another state and community. Responsible site selection consultants caution companies
to avoid selecting a location simply because of an attractive incentives package.
Although it’s a cliché, it’s true: “A good incentives package cannot make up for a bad
location.” It is for that reason that companies sometimes select a location where the
incentives package is less attractive than what competing states or localities offered.
20
Location Decisions Can and Do Occur Without Incentives
Companies have been known to relocate completely or expand elsewhere without even
seeking incentives.
David Schultz, a professor at Hamline University in Minnesota said most people think
incentives offered by governments are deciding factors when companies move. Not so,
said Schultz, author of the 2012 book “American Politics in the Age of Ignorance,” which
addresses economic incentives and corporate relocations. “Taxes and incentives
actually rank pretty low on the list – fifth, sixth or seventh,” said Schultz, who studied
surveys of business leaders who disclosed the reasons behind their location decisions.
“At the top of the list are workforce availability, proximity to suppliers and transportation
links.”35
Also, the public has little understanding that in many instances companies with 100 or
fewer jobs involved in the project won’t qualify for incentives. A Los Angeles firm
recently completed the site selection process and in 2015-2016 will relocate 50
positions to out-of-state locations.36 It will do so without receiving a single incentive
whatsoever.
Recently, Area Development Online addressed how highly automated manufacturing
plants operating with fewer people than in years past are at a disadvantage. A jobcreating incentive might require 100 full-time employees, while an advanced
manufacturer today might employ only 25. In such a case, the firm is disqualified even
though the capital investment may run into the millions of dollars.37
Examples of companies that disinvest in California and invest in out-of-state locations
without the benefit of economic incentives are shown below (extracted from other
portions of this report):
Space Exploration Technologies Corp. (SpaceX) will locate a center for satellite development in Redmond, near
Seattle. Summarizing a GeekWire report – Elon Musk said that video-game developers make for attractive employees for
the tasks. The facility is near Microsoft’s Xbox campus and Nintendo of America, and in the midst of many video-game
startups, a great location for luring talent. The office would also put SpaceX in a strong position to recruit engineers from
Boeing and Blue Origin, the venture founded by Amazon. The event will boost the region’s aerospace industry, which has
become a hub for commercial space ventures and space entrepreneurs. It may be three or four years before SpaceX
employs 1,000. The 30,000-sq. ft. building will undergo renovations, the cost for which has yet to be made public. 38
Musk’s plan is to build a network of some 4,000 satellites in space to deliver Internet access anywhere on Earth. Musk is
making his plans without any financial incentives from the state.39 While the office will focus on satellites, Musk said
SpaceX might also hire here some top rocket engineers who “just refuse to live in L.A.”40
Sedgwick LLP, a law firm, will open a back-office in Kansas City as a cost-saving move, continuing a trend where law
firms are moving nonlegal jobs to lower-cost regions. Sedgwick said 100 jobs, mostly in San Francisco, will be moved to
Missouri. The jobs include finance, human resources, information technology, knowledge management, marketing and
new business. The firm decided on the move because, “We think this can be more cost effective for our clients,” said
Bruce Celebrezze, a Sedgwick partner.41 The firm leased a 20,000-sq. ft. office in Crown Center. No economic incentives
were involved in the Missouri project.42
21
Kaiser Permanente began during the Depression in the 1930s in California, where it’s always been headquartered.43 In
2012 it plans for a 120,000-sq. ft. information technology campus in Greenwood Village, Colorado.44 The facility, planned
for 500 employees, opened with 700 employees, which could grow to 900 employees. 45 The company said it selected
Colorado because of workforce and quality of life. “Quite frankly, these jobs – this activity – in Colorado is intended to be
a launch pad for our next wave of innovation,” said Kaiser executive vice president Phil Fasano.46 [Along with the reasons
cited, it’s conceivable that the location decision was influenced by lower business and employee costs, taxes and fewer
regulations in Colorado leading to a reduction in expenses.] Donna Lynne, president of Kaiser Permanente Colorado,
said the company received no financial incentives to locate the IT center in the state.47 It’s noteworthy that Colorado was
selected because in 2014 the distribution of members show more than three times as many in California than are in all
other eight states combined48:
Google, Inc. – Area Development Online did an excellent job assembling a comprehensive picture of Google’s activities
in Iowa. “In 2009 Google invested $600 million in a Council Bluffs data center. Earlier [in 2012], it announced plans to
invest $300 million in another data center, which will be doubled in capacity size with [another] $200 million investment.
With the $900 million worth of existing data center investments in Council Bluffs, Google’s total investment in Iowa now
stands at $1.1 billion.” The firm did not receive a tax incentive for its latest expansion.49 The square footage in Council
Bluffs is 115,000.50 [Note that data centers use significant amounts of electricity and such costs are lower in Iowa than in
California.]
Al Frank Asset Management (AFAM) – The institutional money management company is moving its headquarters to
Austin. It’s being done without any government incentives, but is designed to take advantage of a deeper worker pool and
friendlier business environment. “The costs of doing business in California are prohibitive,” CEO Jeff Montgomery said.
“We’re not in a Texas [incentives] program, but we’re fans of Texas.” AFAM typically competes against national firms
based in Boston and New York. AFAM plans to maintain its California office and operate regional sales offices elsewhere.
Montgomery said he expects to grow the company through buyouts.51
22
Chapter 5: California Offers Wide-Ranging Economic Incentives
Disclaimer
This Chapter is not intended to be critical of California’s state and local incentives
programs. It is intended to illustrate that the California incentive program designed to
retain companies or lure new companies is similar to programs in other states.
Economic incentives are commonplace. In fact, the International Economic
Development Council estimates that about 95% of localities and states in the United
States offer at least one incentive for economic development.52
Incentives from GO-Biz and Other State Agencies
An extensive incentives program exists at the state level, some of which are
administered by the Governor’s Office of Business and Economic Development (GOBiz), Franchise Tax Board, Employment Development Department, California Energy
Commission, Department of General Services, and others. Incentives include the
following53:

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




California Competes Tax Credit
Partial Sales/Use Tax Exemptions on certain purchases
Full Sales/Use Tax Exclusion on certain equipment purchases
New Employment Hiring Tax Credit
Innovation Hubs
Empowerment Zones
Foreign Trade Zones
Net Operating Loss Carryover and Carryback
Research & Development Tax Credit
Cash Reimbursement for Training Costs
Work Opportunity Tax Credit
Industrial Development Bonds
California Capital Access Program
Tax-Exempt Bond Financing Program
Alternative and Renewable Fuel and Vehicle Technology Program
PG&E Enhanced Economic Development Rate
Recycling Market Development Zones and Loans
Small Business Loan Guarantee Program
Capital Access Program (CalCAP) for Small Business
The tentative amount of tax credits in future years that can be allocated by GO-Biz is as
follows:


$151.1 million in fiscal year 2014-2015
$200 million in each fiscal year 2015-16 through 2017-201854
23
Special Incentives to Aerospace Companies
In 2014, special legislative measures were passed and enacted into law by Gov. Brown
to help aerospace companies in their bids to win a $55-billion contract to build the nextgeneration Air Force bombers. Lockheed Martin Corp. received $420-million in tax
incentives from the California Competes program, intended to provide incentives to woo
and keep jobs in California for the first five years. For the next 10 years, the tax credit
will be paid directly from the state general fund.55 Northrop Grumman Corp., competing
for the same Air Force Contract, received tax incentives worth as much as $465 million,
an arrangement comprised of property tax rebates from local governments and a
corporate income tax credit.56 The companies are not headquartered in California, but
all are major employers. Each side said that winning the contract would bring jobs to the
state.57
Lockheed was headquartered in Burbank prior to its 1995 merger with Martin Marietta,
and after that moved its headquarters to Bethesda, Maryland. In 2011, Northrop
Grumman moved its headquarters from Los Angeles to Falls Church, Virginia.
California Film Commission Incentives
Additionally, Gov. Brown signed a program into law that starting in 2015 authorizes the
California Film Commission to provide $1.65 billion in incentives over the next five years
for film and television producers, with $330 million going to producers annually, more
than tripling the previous level.58 The new law enables producers to offset as much as
25% of their production costs.59
Employment Training Panel Incentives
California also offers assistance through another agency, the Employment Training
Panel. An example of its work can be found in when it awarded $11 million to assist 42
training contracts in September 2015.60
California Energy Commission Incentives
The California Energy Commission is another agency that awards incentives. One
instance is a $3 million grant to Proterra, a provider of battery-electric buses. The grant
will fund the design, development, construction and manufacturing of Proterra’s electric
transit buses in the City of Industry.61
California Local Government Incentives
Municipal governments in California also offer incentives.
24
San Francisco gave Twitter a retention incentive that the Securities and Exchange
Commission estimated could be worth up to $56 million. The move followed Twitter
stating that it would relocate outside of the city limits because of a payroll tax. The
company said with plans to double their staff, it couldn’t justify the cost. San Francisco
waived the payroll tax would for all new jobs Twitter creates for six years.62
In Anaheim, The Walt Disney Co., in planning to expand its theme parks, sought and
received from City Council approval for a 30-year ban on a ticket tax. The arrangement
extends a ban on ticket taxes that started in 1996 and was set to expire in 2016. 63
Stockton, which is struggling to recover after two years in Chapter 9 bankruptcy,
approved an incentive to lure from Sacramento the headquarters of Diesel Direct West,
a company that provides fueling services for trucks. Provided will be a sales tax rebate
culled from a 1 percent portion of newly generated sales tax revenue. The measure will
provide a projected $422,500 rebate to Diesel Direct. “It’s a great thing for the city of
Stockton,” Tim Johnson, the vice president of Diesel Direct, said, adding, “Orange
County has been doing this for quite a while.”64
San Diego offered a rebate of up to a total of $1.5 million in sales taxes to the city’s
biggest biotech company, Illumina, in exchange for the company enlarging its
manufacturing operations. Illumina had considered expanding in other locations such as
Memphis, but San Diego made retaining the company a major economic priority. 65
California State Incentives Recently Granted
Since 2014, GO-Biz has awarded $223 million to 330 companies.66 The number of
companies receiving such incentives is far too lengthy to list in this report. One sample
is a mid-2015 list of nearly $50 million in tax credits for companies that plan to create
jobs in California. The state approved all the credits recommended for 63 companies by
the staff of Gov. Jerry Brown’s GO-Biz agency. This entry isn’t intended to be critical but
is included to suggest the type of activity in California’s program. Credits awarded are
shown in Table 467:
Table 4: Examples of Mid-2015 Tax Credit Incentives Awarded to California Companies
Amount
(millions)
$
$
$
15.0
3.0
2.3
Name of Company
Tesla
Riot Games
Beachbody
$
2.0 Ajinomoto Althea
$
2.0 Environmental Systems Research Institute Inc.
$
2.0 National Steel and Shipbuilding Co,
$
1.1 Skechers USA
Only tax credit incentives above $1 million listed
Locations to Benefit
Fremont, Palo Alto, Lathrop, Hawthorne
Los Angeles
Santa Monica
San Diego
Redlands
San Diego
Manhattan Beach
25
New applications for tax credits totaling $43.7 million in tax credits for 89 companies
were approved by in November 2015.68 at the GO-Biz California Competes Tax Credit
Committee meeting. Candidates seeking $1 million or more are shown in Table 569:
Table 5: Examples Tax Credit Incentives Awarded to California Companies in Nov. 2015
Amount
(millions)
Name of Company
Locations to Benefit
$
4.0
Pacific Steel Group
Fairfield, San Diego, Los Angeles
$
$
$
$
$
$
3.2
2.8
2.5
2.1
2.0
1.5
NerdWallet, Inc.
Credit Karma, Inc.
Stripe, Inc.
Orbital ATK, Inc.
CHC Consulting, LLC
Caylym Technologies International, LLC
San Francisco
San Francisco
San Francisco
Los Angeles
Orange, Carlsbad, San Diego
Fresno
$
$
$
$
$
$
1.5
1.5
1.1
1.0
1.0
1.0
Cerner Corp.
International Business Machines Corp.
Ambry Genetics Corp.
BrightSign, LLC
Carlsbad, Garden Grove, Culver City
San Francisco
Aliso Viejo
Los Gatos, Santa Clara
Irvine
Rancho Cordova, San Diego
Dental Ceramics
TriWest Healthcare Alliance Corp.
$
1.0 Wehah Farm, Inc.
Only tax credit incentives above $1 million listed
Richvale
The agenda for the above meeting70 provides details on numerous additional tax credit
requests under consideration.
Chasing California Incentives Might Not Mitigate Motivation to Relocate
If a California company wants to “chase incentives,” they could well remain in the state if
they meet the qualifications for state and local incentive offerings. But the fact is many
will not apply because they already are inclined to take their business to a friendlier outof-California environment.
In short – as stated at the outset of this Chapter – motivations for companies to invest
outside of California virtually always exist before the types and value of potentially
available incentives are understood.
26
Chapter 6: Why California’s Business Environment is Likely to Worsen
California is considering imposing a broad set of taxes on businesses in 2016 and 2017
– a “tsunami” of levies that may trigger the harshest levies on private-sector finances
ever organized by the state. The proposals, if enacted, will worsen California’s business
environment, so much so that a result may be an increasing number of businesses
leaving California for greener domestic or international pastures.
New Service Tax Proposed
Gov. Jerry Brown and legislators will consider several proposals – including a new tax
on previously untaxed services that will force companies to pay more for routine
transactions, such as shipping a FedEx package, conducting bank transactions, hiring a
contractor or relying on an independent auditor. This “let’s tax everything in sight”
measure will be on the backs of enterprises ranging from Fortune 500 corporations
down to one-person operations. Estimated annual cost to businesses: $10 billion,
according to Board of Equalization Member George Runner.71
Higher Fuel & Motor Vehicle Taxes Proposed
Then there is the proposed escalation in fuel and motor vehicle taxes, sure to hit any
company that owns or leases trucks or automobiles. Estimated cost: $4-4.5 billion
annually.72
Extension of ‘Temporary’ Proposition 30 Taxes Proposed
Public employee unions are insisting on an extension of Proposition 30, which pushed
income and sales taxes to the highest in the nation. That ballot provision passed in
2012 after voters were told they were “temporary” taxes that would expire in 2018. The
potential new expiration date will be 2030. Cost: $7-9 billion annually on businesses and
individuals.73
Higher Cap-and-Trade Fees on the Horizon
California operates a cap-and-trade system to limit carbon emissions, which is proving
to be costly to companies in many industries. Here is how the Orange County Register
reported on the overall costs to industry and the program’s effect on just one company:
The auctions brought in $832 million for last year’s state budget and are
projected to account for $2.2 billion in the current year.
27
The world’s largest tomato processor says the program will increase its costs by
about $5 million over seven years, making it more expensive to churn out the
paste that becomes spaghetti sauce, ketchup and pizza. During the hottest
months of the year, the Morning Star Packing Co. cooks more than 2,000 tons of
tomatoes each hour in enormous boilers at three factories in the Central Valley.
All that gas-fired cooking creates emissions that are now capped by the state.
“It’s a regressive tax,” said Morning Star spokesman Nick Kastle, as he led a tour
through a Los Baños processing plant.
Morning Star passes the costs of cap-and-trade on to the companies that buy its
tomato paste to make salsa and sauce, Kastle said. “The only link in that chain
who can’t pass it on is the consumer,” Kastle said. “That is the person who bears
all the additional costs.”74
Such higher taxes will have a “piling on” effect when combined with cost increases
related to the state’s proposed new workplace and environmental regulations.
Tax Increase on Business Properties Proposed
Also worrisome is the potential elimination of Proposition 13’s tax-limiting protections for
companies that own offices, data centers and factories – a “split roll” that would allow
higher taxes on virtually all non-residential properties. That will be another $9 billion
paid annually by commercial enterprises.75 Admittedly, this is one tax that Gov. Brown
opposes. However, considering the growing influence of anti-business zealots in the
state, Brown may come under increasing pressure to modify his position.
And so it goes, even though the state is awash in an unanticipated $6 billion tax surplus
above Gov. Brown’s budget, according to the Howard Jarvis Taxpayers Association.76
Public Officials Ignore Business Concerns
It’s little wonder that companies disinvest in California in full or in part, as reflected in
moves that have been categorized throughout Chapters 16 through 23. After all, the
state’s political establishment routinely ignores concerns expressed by business
leaders.
For example, Ehsan Gharatappeh, CEO of CellPoint Corp. of Costa Mesa, when
launching a new facility in Fort Worth, said in testimony in Sacramento, “Even if
California were to eliminate the state income taxes tomorrow, that still would not be
enough to put my manufacturing operations back in California.”77
Examples abound of companies disinvesting in California and investing in other states –
even in the so-called “Rust Belt” – because of their friendlier business environments.78
28
California’s public officials come across as being uncaring about the damage they inflict
on businesses, investors, employees and their families, and to the towns that lose jobs.
As the California political parade demanding higher taxes becomes longer, look for the
list of companies seeking to leave California to become longer, too.
Updated and expanded from a column by the author originally published in the Orange
County Register and Fox & Hounds Daily.
29
Chapter 7: Summary of Disinvestment Events by California County
California counties in which disinvestment events have occurred are shown in Table 6.
The number for any county may be understated, or counties may be omitted that should
be included, because of instances where there was no California media coverage of or
report to a government agency about an event. Also, news reports in other states
sometimes are unclear about which California community is affected by an event.
Table 6: Disinvestment Events and Ranking by California County 2008 - 2015
Rank
County
Total
Rank
County
Total
1
Los Angeles
347
23
Fresno
7
2
Orange
249
23
Marin
7
3
Santa Clara
247
23
Monterey
7
4
San Francisco
115
26
Tulare
6
5
San Diego
109
27
Napa
5
6
Alameda
98
27
Yolo
5
7
San Mateo
65
29
Shasta
4
8
Ventura
44
30
San Luis Obispo
3
9
Sacramento
42
30
Butte
3
9
San Bernardino
42
32
El Dorado
2
11
Riverside
40
32
Inyo
2
12
Contra Costa
28
32
Mendocino
2
12
Santa Barbara
28
32
Siskiyou
2
14
San Joaquin
22
32
San Benito
2
15
Stanislaus
18
37
Glenn
1
16
Sonoma
16
37
Humboldt
1
17
Santa Cruz
12
37
Imperial
1
18
Solano
11
37
Madera
1
19
Nevada (county)
10
37
Plumas
1
19
Placer
10
37
Tehama
1
19
Merced
10
37
Yuba
1
19
Kern
10
Note: The counties of origin for 45 disinvestment events were unidentified in public sources of
information. Knowledge of the counties likely would have modified the rankings or included
additional counties.
Some counties are omitted from the list because no information about events were
found for them in public sources of information. Those counties are: Alpine, Amador,
Calaveras, Colusa, Del Norte, Kings, Lake, Lassen, Mariposa, Modoc, Mono, Sierra,
Sutter, Trinity and Tuolumne.
30
The county with the highest number of events at 347 was Los Angeles, in part because
it has so many businesses and because doing business is costlier in Los Angeles than
in just about any other county outside of the San Francisco Bay Area. Moreover, the
City of Los Angeles has a dismal attitude toward business, as described in a Wall Street
Journal guest column entitled “Why We’ll Leave L.A.” by Rick Newcombe of Creators
Syndicate.79 Although the article appeared in 2009, it remains relevant because current
reports from company leaders indicate there is little or no improvement in treatment by
city officials, particularly the staff in the city’s Office of Finance.
Los Angeles for decades was one of the strongest engines of California’s growth
economy. Not any longer, according to a 2014 UCLA Anderson economic forecast for
the metropolitan area. One stunning conclusion was that from December 1993 through
December 2013, Los Angeles failed to produce any new jobs.
In fact, Los Angeles lost 3.1% of its jobs, for a ranking of last among the 32 largest
Metro areas in the United States. (By comparison, the Los Angeles metropolitan area
added approximately 1.5 million residents, a growth rate of 13 percent over the 20
years). Being “Last” means performance that was worse than in Cleveland and Detroit,
which have had decades of sub-par economic performance, according to the UCLA
School of Management.80
In second place is Orange County, at 249, which most certainly is an anomaly based on
the fact that the Orange County Register in the past did an exceptional job in reporting
on disinvestment events. The paper carried many more such stories than any other
daily newspaper in the entire state. The Register carries far fewer stories today about
such events, so it is to be expected that the number for Orange County will decline in
the future. This is unfortunate because trends in Orange County indicate a “workforce
gap” in companies being able to fill positions with properly educated employees and
also because homes in the county now cost three times the national average. Such
costs force residents to seek employment elsewhere including skilled young adults who
move out of state to areas with lower housing prices.81
In third place is Santa Clara County, at 247, where motivations for disinvestments tend
to be complex. In fact, serial entrepreneur Mark Cuban said, “I think the growth outside
of [Silicon] Valley will dwarf what happens inside the valley,” and he pointed to
communities in other states as being “better” for his portfolio.82 While companies tend to
remain headquartered in Santa Clara County, many expanded not there but in out-ofstate locations based on a number of factors, notably these four:

Difficulty in recruiting workers. For example, “computer genius” students
graduating from Carnegie Mellon University in Pittsburgh and Massachusetts
Institute of Technology in Boston are often reluctant to relocate to the San
Francisco Bay area with its super-high rents and housing prices. They can enjoy
a better quality of life right where they are, which also is true for software and
hardware engineers and other computer specialists found in numerous
communities throughout the United States.83
31

Labor costs are lower in virtually every other metropolitan area in the United
States, in part because the lower cost of living reflects more affordable housing
costs and lower taxes. In short, when taking additional factors into consideration
such as traffic congestion, crime and secondary school performance, a better
quality of life is available at a more reasonable cost in most of the United States.
Of course, lower labor costs are an important draw in corporate relocations.

Office and industrial real estate costs are significantly less expensive across vast
stretched of the United States. Savings can reach 50 percent in building lease or
purchase costs.

Another factor is that electricity costs for businesses in California are among the
highest in the nation and continue to escalate because of carbon emissionsrelated cap-and-trade costs. Hence, when it’s time to locate facilities that are
heavily reliant on electricity, such as food processing plants and data centers,
states with lower electricity costs have a significant advantage.
There do not seem to be any serious prospects of reversing California’s liabilities in
labor recruitment, labor costs, facility costs or utility rates in a meaningful way.
It’s likely that such disadvantages are spreading outside of Silicon Valley. For example,
an October 2015 report states that Orange County is facing a “skills gap” because of a
shortage of workers for jobs in software, electronics, manufacturing, health care and
information technology – jobs that are key to economic development. The report points
to shortcomings in the education system, including too many students who lack fluency
in English. Also, a dire housing shortage, and the resulting high cost of renting or
owning, is motivating people to consider leaving Orange County.84
32
Chapter 8: Summary of Disinvestment Events by California Municipality
California communities in which the number of disinvestment events occurred in the
study time period are shown in Table 7. It is surprising that San Francisco is tied with
Los Angeles for the No. 1 position considering that it has approximately one-fifth of the
population of Los Angeles and has fewer companies than Los Angeles. The difference
could well reflect variations in local media coverage.
Table 7: Top 10 California Municipalities for
Disinvestment Events
Rank
Municipality
Number
of Events
1
Los Angeles, San Francisco
118
3
Irvine
79
4
San Jose
74
5
San Diego
71
6
Santa Clara
38
7
Mountain View
35
8
Sunnyvale
32
9
Fremont
30
10
Palo Alto
30
33
Chapter 9: States that Gained from California Disinvestment Events
In the study period, Texas was the No. 1 state to benefit from California disinvestment
events – 247 of them – as shown in Table 8. Texas headed the list not only for the
eight-year period overall but for every year during that time span.
Table 8: California Company Investment Events in Destination States
Rank
State
Total
Rank
State
Total
1
Texas
247
24
Mississippi
11
2
Nevada
100
24
Minnesota
11
3
Arizona
73
27
New Jersey
10
4
Colorado
52
27
Arkansas
10
5
Washington
47
29
Kansas
9
6
Oregon
44
30
Wisconsin
7
7
North Carolina
37
30
New Mexico
7
8
Georgia
36
30
Louisiana
7
9
Florida
34
30
Maryland
7
10
Utah
29
34
South Carolina
6
10
Virginia
29
34
Alabama
6
12
New York*
27
36
Connecticut
5
13
Ohio
25
36
Oklahoma
5
14
Indiana
22
36
Nebraska
5
14
Michigan
22
39
Washington, DC
3
16
Tennessee
21
39
West Virginia
3
17
Pennsylvania
17
41
Wyoming
2
18
Massachusetts
15
41
North Dakota
2
19
Iowa
14
43
Montana
1
19
Missouri
14
43
New Hampshire
1
21
Illinois
13
43
Vermont
1
22
South Dakota
12
43
Montana
1
22
Kentucky
12
43
New Hampshire
1
24
Idaho
11
43
Vermont
1
*All events for New York City were excluded from the report except for one
special case.
Note: The destination states for 97 events were unidentified in public
sources of information. Knowledge of the states likely would have modified
the rankings somewhat and also is the reason that Alaska, Delaware,
Hawaii, Maine and Rhode Island are not listed.
Some Californians have belittled the Lone Star state by claiming its employment growth
is in low-paying jobs. In fact, Texas has been an epicenter for new high-paying jobs.
According to Wendell Cox of Demographia, “The number of jobs in Texas has grown by
a truly impressive 31.5% since 1995, compared with just 12% nationwide [and] many of
the new Texas jobs paid well.”
34
From 2002 through 2011, “for industries paying over 150% of the average American
wage, Texas could claim 216,000 extra jobs; the rest of the country added 495,000. In
other words, the Lone Star State, with 8% of the U.S. population, created nearly a third
of the country’s highest-paying positions.”85
It remains to be seen if the Texas downturn in high-paying petroleum jobs will be offset
by the influx of literally thousands of high-paying executive, management and specialist
jobs into the state’s increasingly diversified economy.
35
Chapter 10: Metropolitan Areas that Gained from California Disinvestment Events
This report reviews Metropolitan Statistical Area (MSA) destinations that benefitted from
California disinvestment events. The Top 10 MSAs are listed in Table 9. The number for
any particular MSA is likely to be understated because of instances where news reports
failed to mention a specific destination community.
Table 9: Top 10 United States Destination Metropolitan
Areas Benefitting from California Disinvestment Events
Rank
Metropolitan Statistical Area
Number
of
Events
109
1
Austin-Round Rock-San Marcos
2
Dallas-Fort Worth-Arlington
77
3
Phoenix-Mesa-Scottsdale
67
4
Reno-Sparks
55
5
Las Vegas-Paradise
39
6
Denver-Aurora-Lakewood
32
6
Portland-Vancouver (WA)-Hillsboro
32
8
Seattle-Tacoma-Bellevue
31
9
Atlanta-Sandy Springs-Marietta
27
10
Salt Lake City-Ogden-Clearfield
20
Note: Destination metropolitan areas are insufficiently
represented because the locations for 88 domestic events
were unidentified in public sources of information. Having
such knowledge likely would have modified the rankings.
36
Chapter 11: U.S. Municipalities that Gained from California Disinvestment Events
This report indicates municipalities that have benefitted from California disinvestment
events. The Top 15 municipalities are shown in Table 10. Destination municipalities for
a considerable number of events were unidentified in public sources of information.
Knowledge of the communities likely would have modified the rankings.
Table 10: Top 15 U.S. Destination
Municipalities Benefitting from Ten or More
California Disinvestment Events
Rank
Municipality
Number of
Events
1
Austin TX
94
2
Reno NV
46
3
Las Vegas NV
32
4
Seattle WA
27
5
Phoenix AZ
25
6
Dallas TX
22
7
San Antonio TX
18
7
Portland OR
18
9
Denver CO
16
10
Scottsdale AZ
15
11
Atlanta GA
14
12
Houston TX
12
13
Plano TX
11
13
Colorado Springs CO
11
15
Nashville TN
10
15
Irving TX
10
15
Salt Lake City UT
10
NA
Pittsburgh PA
9
NA
Fort Worth TX
9
NA
Indianapolis IN
9
NA
Hillsboro OR
9
NA
Tempe AZ
8
NA
Chandler AZ
7
NA
Cary NC
6
NA
Kansas City MO
6
NA
Mesa AZ
6
NA
Sparks NV
5
NA
Chicago IL
5
NA
Cedar Park TX
5
NA
Prineville, OR
5
NA
Boston MA
4
NA
Centennial CO
4
NA
Charlotte NC
4
NA
Duluth GA
4
NA
Greenwood Village CO
4
NA
Henderson NV
4
NA
Lewisville TX
4
NA
Peoria AZ
4
NA
Lawrence KS
4
NA
Louisville KY
4
NA
Minden NV
4
NA
Sioux Falls SD
4
Municipalities with three or fewer events are not
listed
The Preface pointed out that Gov. Brown’s office trivialized overtures to California
companies by other states, with a spokesman denigrating other parts of the United
States by stating that “businesses are not fleeing the state for the cold, empty and
desolate hinterlands.”86
Destination municipalities shown in Table 10 to indicate the intensity to which
companies migrate not only to urban areas but to the “hinterlands.” Also, the list
illustrates the wide range of communities that treat businesses in a positive manner and
are able to attract investments and jobs from California companies.
37
Chapter 12: Foreign Nations that Gained from California Disinvestment Events
During the study period, many company disinvestment events involved offshoring,
which is defined as:
Shifting a business function from one country to another. For a business, this can
entail moving product manufacturing, service centers or operations to a different
country. Offshoring is often used to reduce the cost of business, with the
company seeking to move parts of operations to countries with more favorable
economic conditions.87
Whether it is called offshoring, contracting out, relocation or other synonym for
launching or expanding facilities in foreign nations, a prime source for the 432
international events are reports from the U.S. Department of Labor (DOL) Trade
Adjustment Assistance Cases. Only findings from DOL “certified decisions” along with a
few reports from other government agencies were calculated. Unfortunately, DOL
documents in more than 100 cases failed to identify the nation to which jobs were lost.
Findings are summarized in Table 11.
Table 11: Top 10 International Destinations Benefitting from California
Disinvestment Events
Rank
Country
Total
Rank
Country
Total
1
Mexico
112
NA
Argentina
3
2
India
67
NA
Brazil
3
3
China
57
NA
Israel
3
4
Canada
37
NA
Australia
3
5
Costa Rica
21
NA
Switzerland
3
6
Malaysia
16
NA
Czech Republic
2
7
Philippines
15
NA
Finland
2
8
Singapore
12
NA
Uruguay
2
9
Japan
11
NA
Vietnam
2
10
Great Britain
8
NA
Belgium
1
NA
Ireland
7
NA
Estonia
1
NA
Poland
7
NA
Hungary
1
NA
Taiwan
7
NA
Iceland
1
NA
Germany
7
NA
Indonesia
1
NA
Thailand
6
NA
Jamaica
1
NA
Korea
6
NA
Jersey
1
NA
Chile
4
NA
Netherlands
1
NA
Spain
1
Note: The above is only a partial representation. Destinations for more than
100 California events were unidentified by the U.S. Dept. of Labor and in
other sources of information. Such knowledge likely would have modified the
rankings and possibly would have added other nations to the list.
38
Chapter 13: Summary by Types of California Disinvestment Events
A disinvestment event can occur in a number of ways. Outright relocation or offshoring
to a foreign nation are often conspicuous because of the focus by the news media. A
closing of a facility with relocation to unidentified communities generally is reported by
the media as simply a closure, but this report takes a more in-depth view.
Two types of disinvestment events rarely make the news because they are difficult to
uncover. One is a “U-Turn,” where company officials plan to locate in California, but
change their minds and go elsewhere, and the other is the outright cancellation of a
planned California project in favor of another state.
An effort has been made to categorize events as accurately as possible, and the codes
shown in Table 12 were developed to describe the nature of each event. As can be
seen, relocations rank as the most common event.
Table 12: Types & Frequency of California Disinvestment
Events
Rank
Code
Description
Total
1
}REL
Relocation in full or in part to a point
outside of California (but no closure
unless the code }CLO also appears)
2
}OSO
Shifted from California to another country
through offshoring, outsourcing,
relocation or expansion
498
3
}CLO
Closed a facility in California and work
migrated to one or several out-of-state
locations
390
4
}CDO
Capital directed elsewhere that in the
past would likely have been in California,
partly because of lower costs elsewhere
and also at times because job
candidates decline to move to California
388
5
}DSP
Dispersed – indicated when the multiple
locations to which California work
migrated are unknown
98
6
}UTN
U-Turn occurred when a company
considered a California location but opted
for an out-of-state location
65
7
}CAN
Cancelled construction or lease of a
planned California facility
3
1,085
Note: The total of events by categories will exceed the total number
of disinvestment events because a disinvestment event can fall into
two or more categories.
39
Chapter 14: Summary by California Industries
Manufacturing, with more than 560 events, ranks as the No. 1 industry to look for
greener pastures. Also, many companies in aerospace, pharmaceuticals, biotech and
electronics have engaged in disinvestment events. The wide range of industry-relevant
jobs suggest that companies have learned about locations where appropriate workforce
talent is available. Events are categorized by Industry Codes in Table 13.
Table 13: California Disinvestment Events by Industry 2008-2015
Rank
Code
Industry
Total
1
#MA
Manufacturers (including mining of materials for manufacturing)
562
2
#PB
Pharmaceuticals, Medical Devices, Biotech, Health/Dental, Veterinary
171
3
#DO
Digital, Online Retailers, Internet, e-Commerce, Cloud Providers, Online Security
162
4
#EC
Electronics, Communications Equipment, Batteries
129
5
#CP
Consumer Products & Services
105
6
#GR
Green / Renewable Energy Companies
102
7
#DN
Distribution, Warehousing, Logistics
76
8
#AE
Aerospace, Aviation Industry, Components
69
8
#BF
Banking, Financial & Mortgage Services, Venture Capital, Insurance, Bitcoin
69
10
#AU
Auto, Truck, Motor Vehicle Manufacturing, Repair, Parts
66
11
#FP
Food Processors, Food Growers, Nutritional Supplements
64
12
#CH
Computer Hardware, Peripherals, Mobile Devices
57
13
#DF
Defense, Law Enforcement, Fire Suppression, Search & Rescue
48
14
#PA
Printing, Publications, Advertising, Graphic Arts, Artwork
47
15
#PF
Professional Services, Accounting, Law, , Consultants, Marketing Companies
40
16
#SC
Semiconductors
39
17
#ET
Entertainment, Film, Cable TV, Internet Radio
38
18
#RW
Retailers (store closings excluded), Wholesalers
29
19
#GA
Games Online or Electronic
22
20
#SM
Social Media
19
20
#PL
Plastics
19
22
#HC
Hospitality, Lodging, Restaurant Chains, Tourism
18
23
#CL
Clothing, Apparel, Outdoor Gear
16
23
#TP
Transportation, Passenger & Freight, All Modes
16
25
#CS
Construction Suppliers
15
26
#EH
Energy (oil, gas), Chemicals
12
27
#LP
Lumber, Finished Wood, Paper Manufacturing
6
28
#NP
Non-Profit Organization
3
29
#SP
Sports
2
29
#UY
Utility or Related / Traditional Electrical Generation
2
Note: Total industry events at 2,023 exceed total disinvestment events of 1,687 because an event can involve
a company or facility involved in multiple industries
40
Sometimes, an industry code will not appear in the industry column in the tables. Such
an absence occurs when, for example, one facility is being closed and transferred to
more than one out-of-California location. To avoid having an event involving two (or
three or four) locations inflate the number of industries being transferred, a code is
assigned only one time to an event regardless of the number of locations to which it is
being transferred.
41
Chapter 15: Summary by California Functions
In addition to industries, events are also classified by function to offer a sense of what
within a company is affected. Doing so leads to some remarkable findings, such as the
fact that the movement of headquarters exceeds any other function.
As shown in Table 14, combining the headquarters and engineering categories, at 570
events – about one-third of all events – suggests that a considerable number of highcompensation jobs are migrating out of California.
Table 14: California Disinvestment Events by Function 2008 - 2015
Rank
Code
Function
Total
1
#HQ
Headquarters
320
2
#EN
Engineering (all types), Programmers
250
3
#SB
Support Services, Back Offices, Call Centers
244
4
#SO
Software
231
5
#IT
Information Technology
187
6
#RD
Research & Development
125
7
#DC
Data Centers
35
8
#QA
Quality Assurance
32
Note: The total of events by function is lower than the total number of
disinvestment events because vague reports such as an “office being moved”
fail to provide the type of information conveyed in this report.
Sometimes, a function code will not appear in the function column in the tables for
2008-2015. Such an absence occurs when, for example, one function is being closed
and transferred to more than one out-of-California location. To avoid having an event
involving two (or three or four) locations inflate the number of functions being
transferred, a code is assigned only one time to an event regardless of the number of
locations to which work is being transferred.
42
Chapter 16: Details Regarding 2015 Disinvestment Events
California Disinvestment Events for 2015 as shown in Table 15 are self-explanatory. Quite often in public domain sources
information was lacking about jobs, capital investments and square footage. In such cases, the following codes will appear:
NJR – No Job Number Reported
N$R – No Capital Investment Reported
NQF - No Square Footage Reported
Table 15: California Disinvestment Events for 2015
California
County &
Locality
Alameda ↔
Berkeley
Destination
Location
Oregon > Bend
Alameda ↔
Berkeley
Utah > Salt Lake
City
Alameda ↔
Berkeley
Alameda ↔
Berkeley
Alameda ↔
Emeryville
Australia >
Melbourne
Finland >
Helsinki
Utah > Clearfield
Jobs
NJR
71
Private
Capital
(million)
Sq. Ft.
(000)
N$R
NQF
N$R
NQF
Function
or
Industry
Codes
#CP
Event
Type
#EN
#GA
#SO
}CLO
}REL
}REL
}REL
}REL
590
N$R
55
#CP
#SB
}CDO
Information Available through Public Domain Sources
Zealios Skin Care, which produces sunscreen, shampoo and other items for
performance athletes, began making products in 2012 in the San Francisco Bay Area.
Three years later, co-founders Austin Britts and Kevin Fuller are moving the company to
Oregon. Zealios has focused primarily on building a brand and developing e-commerce,
but Britts said products are currently in about 30 stores, with more to come in 2016. The
move will likely be official by early 2016. In the meantime, Britts is working in an office in
The Bridge, a Bend co-working space focused on outdoor products. Why relocate to
Bend? In addition to quality-of-life factors, Fuller said, “The more we dug into it, the more
we realized what a great place it would be for the company. It was very eye-opening how
much support there is for small businesses, and how Bend is really fostering the small
companies.”88 Based on a job opening listed in December 2015, it appears that the
company will retain a presence in the San Francisco Bay Area. It is unclear whether
manufacturing relocated, and if so, where the location would be.
Electronic Arts closed the SimCity studio in Emeryville and all employees lost their jobs.
The company transferred and consolidated Maxis IP development to its studios in Salt
Lake City, Helsinki, Melbourne and Redwood Shores locations.89 A WARN Notice
indicates that 71 employees were furloughed.90
Electronic Arts – See the 2015 Salt Lake City entry for this company for new information
about this event.
Electronic Arts – See the 2015 Salt Lake City entry for this company for new information
about this event.
AAA Northern California, Nevada and Utah, HQ’d in Emeryville, will open a 55,000-sq.
ft. call center bringing nearly 600 new jobs to Utah. Set to open early in 2015, it should be
43
Alameda ↔
Emeryville
Texas > Austin
NJR
N$R
NQF
#HC
#HQ
}REL
Alameda ↔
Emeryville
Utah > Salt Lake
City
NJR
N$R
NQF
#EN
#GA
#SO
}CLO
}REL
Alameda ↔
Emeryville
Alameda ↔
Emeryville
Alameda ↔
Fremont
Australia >
Melbourne
Finland >
Helsinki
Costa Rica >
Unknown
NJR
N$R
NQF
NJR
N$R
NQF
284
N$R
NQF
#EC
#MA
#PB
}CLO
}OSO
}REL
Alameda ↔
Fremont
Unknown >
Dispersed
200
N$R
NQF
#EC
#MA
}CLO
}DSP
}REL
Alameda ↔
Hayward
Mississippi >
Tupelo
200
#FP
#MA
}REL
$10
130
}OSO
}REL
}OSO
}REL
fully operational by January 2016. Staff will dispatch roadside service technicians to 4.2
million AAA members. “Utah is known for its talented, educated workforce and strong
technology infrastructure, so we are confident that Clearfield is the right place to grow our
business...” said Jim Twardos, EVP Member Experience and Road Service Operations
for AAA Northern California, Nevada and Utah. “As we plan our club’s growth for the next
100 years, this hiring initiative will bring the club’s total workforce to more than 2,800
employees – nearly a 30% increase.”91 [Along with the reasons cited, it’s conceivable that
the location decision was influenced by lower business and employee costs, taxes and
fewer regulations in Utah leading to a reduction in expenses.]
Freebirds World Burrito will move its national headquarters from Emeryville to Austin.
Although Freebirds got its start in Santa Barbara in 1987, the company has had a Texas
presence since it opened near Houston in 1991. Now, more than 60 of its 100 locations
are in Texas.92
Maxis Emeryville, the game development studio known for the Sim City, Spore and the
early Sims video games, has been shut down by parent company Electronics Arts (EA).
The company stated that it is “consolidating Maxis IP development to our studios in
Redwood Shores, Salt Lake City, Helsinki and Melbourne locations as we close our
Emeryville location. Maxis continues to support and develop new experiences for current
Sims and SimCity players, while expanding our franchises to new platforms and
developing new cross-platform IP.”93
Maxis Emeryville – See the 2015 Salt Lake City entry for more information about this
event.
Maxis Emeryville – See the 2015 Salt Lake City entry for more information about this
event.
Boston Scientific furloughed employees and on-site leased workers in Fremont and San
Jose engaged in the production of cardiac ablation catheters, intravascular ultrasound
imaging catheters and plastic tubing used as a subcomponent for manufacturing finished
catheters because the company shifted the work to Costa Rica.94 The California EDD
reported that the number of employees affected in Fremont totaled 284 and in San Jose
the number totaled 171, for a total of 455.95 The Fremont facility makes coils, stent
systems, retrieval devices and intravascular ultrasound catheters. San Jose makes
electrophysiology devices and other high-tech devices.96
Plexus Corp., will close its 46,000-sq. ft. Fremont factory, which will result in the loss of
200 jobs. Plexus is a contract manufacturer of electronics and also provides electronics
design and aftermarket services. Work will transition to unnamed Plexus facilities, which
is expected to be completed by the end of the company’s fiscal 3rd quarter in July 2016
and is expected to save $7 million in annual costs.97 The company stated that “We have
evaluated the value proposition and long-term viability of each of our manufacturing
locations and have determined that the future growth prospects of our Fremont facility
were limited.”98
Raybern Foods, which specializes in heat-and-serve sandwiches sold at grocers, is
relocating manufacturing to Mississippi, investing $10 million in a 130,000 sq. ft. facility.
The company will remain HQ’d in California, but some management will relocate. The
200 new jobs are a combination of baking, meat processing and general manufacturing
44
Alameda ↔
Oakland
Nevada > Reno
Alameda ↔
Oakland
Georgia >
Atlanta
70
$42.4
125
#GR
#MA
}CDO
900
$20
150
#DO
#EN
#IT
#PB
}CDO
labor, along with supervisory, quality, maintenance, warehousing and administrative
positions.99
AquaMetals broke ground on a facility for recycling lead batteries at the Tahoe Reno
Industrial Center, which will employ 70 people. Project cost including land purchase and
construction is $42.4 million. AquaMetals will avoid using smelters but will utilize a new
water-based process to remove an estimated 80 tons of lead from batteries each day.
The “AquaRefining” method produces a higher yield, eliminates toxic waste and results in
lead with higher purity. Stephen Clarke, CEO of AquaMetals, said, “High purity lead is
becoming scarce and is essential for the production of more advanced lead acid
batteries.”100 The “green” company said that unlike smelting, its method produces almost
no emissions, consumes less energy and is more cost effective. 101 The 125,000-sq. ft.
building should be completed and begin production in the 2 nd of 2016 and reach full
operating capacity by the 4th quarter of 2016.102
Kaiser Permanente will locate a $20 million information technology campus in Atlanta,
creating about 900 jobs. No mention was made of whether any location in California was
under consideration for the 150,000 sq. ft. project. The new operation is expected to
provide IT services around electronic medical record systems, cybersecurity, mobile,
consumer technologies and back-office infrastructure. Employed will be solutions
architects, business consultants, software developers, project managers and
programming analysts. Average wage: about $107,000. Hiring will be spread over three
years.103 Note: The geographic distribution of members by states show more than three
times as many in California than are in all the other eight states combined, as follows 104:
State(s)
California
Colorado:
Mid-Atlantic States (VA, MD,
DC):
Northwest (Oregon/Washington):
Georgia:
Hawaii:
Other 8 States Combined
* As of Dec. 31, 2014
Alameda ↔
Pleasanton
Tennessee >
Nashville
200
N$R
30
#PF
}CDO
Membership*
7,443,32
6
626,523
530,275
504,403
259,834
231,836
2,152,871
Kaiser Permanente began at the height of the Great Depression in the 1930s in
California, where it has always been headquartered.105
DayNine Consulting, a global human resources and financial consulting firm, 30,000 sq.
ft. of space in Nashville for an office to support its clients worldwide. The company
expects to grow the staff to up to 200 by the end of next year; early job listings show
openings for project managers, integration consultants and a talent acquisition
coordinator. CEO Tim Ramos cited the large number of highly regarded universities such
as Vanderbilt, Nashville’s quality of life and affordable cost of living, and the city’s rising
45
Alameda ↔
San Leandro
Butte ↔
Chico
Unknown >
Dispersed
Unknown >
Dispersed
Contra Costa
↔ Concord
Colorado >
Colorado
Springs
NJR
N$R
NQF
30
N$R
NQF
15
N$R
14
}CLO
}DSP
#CP
#MA
}CLO
}DSP
#EC
#GR
#HQ
}REL
appeal attracting new residents including young professionals. At full staff, the new office
will account for a third of DayNine’s global workforce. DayNine helps clients deploy and
implement new human resources and financial systems using the Workday software
application. With 80% of DayNine’s overall operating cost associated with employees,
Ramos said finding a location where its staff could raise families and enjoy a relatively
high quality of life and affordable cost of living was critical. “All of those things adds up to
make for a happier employee, which results in happier customers,” he said.106 At first
glance, this appeared to be an expansion to meet company growth, but the fact that “at
full staff the new office will account for a third of the company’s workforce,” and in light of
the reference to high quality of life and affordable cost of living (especially in relation to
Pleasanton’s cost-of-living), justifies the placement of this event in this report.
Kraft Heinz will close its plant; see the 2015 Fullerton entry for this company for more
information about this event.
Woof & Poof sells more than 200 handmade Christmas and other products to 600 stores
in the United States and Nordstrom’s. The company, which has been in Chico for 40
years, will close. CEO Roger Hart said a raise in minimum wage and workers
compensation are just a couple of issues that have made it difficult to keep the business
financially afloat here. Hart said, “The high cost of doing business in California coupled
with ridiculous regulatory environment makes it virtually impossible to do business.” At
the company’s work peak, during the summer months, he has 30 employees. A recent
visit by an inspector with the Department of Consumer Affairs set the company back. The
inspector from Sacramento cited him for having the wrong size font on the decorative
pillow labels. He was told to take the labels out, or they would have his inventory
seized.107 Hart asked that his pillows be exempt because they were not bed pillows. “No
one sleeps on those pillows. No one’s been injured.” The state refused. “Not only that,”
said Hart, “they said I should feel lucky that they were not going to fine me. The state told
me that if I didn’t change (the labels) they could come in and seize the inventory.”
Preparing for Christmas sales of the pillows sold in more than 600 stores nationwide,
Hart bought new labels and resewed his inventory. “It cost us thousands,” he said. But
that got him thinking about all the other negatives of being in business in California. With
wages and other costs increasing – including a 40% hike for his workforce’s health
insurance – Hart decided to close down. “I have a great staff and haven’t minded paying
for them,” Hart said, adding that they have paid vacations and don’t work in a sweat
shop, “but this is a domino effect. ... We just can’t continue into 2016 with these kinds of
costs. I’m looking for a job. People may think small business owners make millions, but
they don’t. I haven’t taken a paycheck home in months. If I could make minimum wage, I
would be happy.”108
Calex Manufacturing Co. Inc., plans to move its Green Watt Power division to Colorado
Springs later this year. Green Watt, which sells chargers for electric scooters,
motorcycles and forklifts, will build a 14,000-sq. ft. headquarters, warehouse and
distribution center. Colorado Springs was “the final choice due to the cost of real estate,
quality of life in the area as well as the fact that the cost of doing business in Colorado is
significantly less than the California Bay Area,” said CEO Paul Cuff. The company said it
plans to grow its staff to 15 employees within four years as demand grows for its
46
Humboldt ↔
Korbel
Unknown >
Dispersed
Kern ↔
Bakersfield
Texas > Conroe
Los Angeles
↔ Beverly
Hills
106
N$R
NQF
#LP
#MA
}CLO
}DSP
NJR
N$R
NQF
#EH
#MA
}CLO
}REL
Arizona >
Scottsdale
NJR
N$R
#DO
#HQ
#PF
}CLO
}REL
Los Angeles
↔ City of
Industry
Jamaica >
Unknown
NJR
N$R
#SB
}OSO
}REL
Los Angeles
↔ El
Segundo
Virginia >
Alexandria
NJR
N$R
#DF
#HQ
#PF
#SO
}REL
NQF
NQF
NQF
products. The company sells lithium ion battery chargers manufactured in China for
Segway electric vehicles, Zero electric motorcycles and UniCarrier forklifts and also sells
lighting products.109
California Redwood Company (CRC) harvests Douglas-fir – trees that have the
strength, durability and attractiveness to be used for flooring, cabinets, furniture, boats
and aircraft. With housing construction resurgent and boat sales rising, it is logical to
think that anyone harvesting Douglas-firs would have a going concern. Not necessarily.
The CRC closed its last remaining California sawmill in February 2015, ending the
company’s half-century-long involvement in lumber manufacturing. The sawmill in Korbel
does not make a profit, and while CRC will continue to own assets it will no longer have
operations or employees in California. The facility has been marketed to potential
purchasers, thus far unsuccessfully. The closure of the mill will result in 106 salaried and
hourly employees losing their jobs (this excludes the staff cut last year in which 45
employees were furloughed).110
Team Oil Tools, Inc. consolidated its Bakersfield manufacturing operations with existing
facilities in Texas. “This consolidation improves efficiency and streamlines our
manufacturing process, while still enabling us to provide a complete product line of Liner
Hangers,” said Adam Anderson, Team’s CEO. “The change comes as we prepare to
launch a new line of High Performance Liner Hangers to complement our existing product
line.”111
Transcription 2000 Services, Inc. moved its headquarters to Scottsdale. The company
provides online digital transcription services to its clients.112 About the “seamless” move,
the company blogged: “[W]e accomplished this move, with all its technical and logistical
considerations, without missing a beat! Through each and every day of the transition, our
team of ace transcribers continued to produce and deliver timely, accurate transcripts
and kept our clients smiling. Additional kudos go out to our support team for all of their
invaluable help with this daunting project.”113 The company began operations in
California in 1998.114
Agfa Corp., which manufactures and distributes its imaging technology and industrial
printing equipment products, furloughed employees engaged in customer service and
credit & collections because the company outsourced the work to Jamaica. The Dept. of
Labor determined that “the workers’ firm has acquired from a foreign country services like
or directly competitive with service supplied by the workers which contributed importantly
to worker group separations.” The DOL didn’t report which community in Jamaica, nor the
number of jobs lost.115
Advantage SCI, LLC, a cyber-security company, will relocate its headquarters to Virginia
“after recognizing the high costs related to worker’s compensation, liability, and taxes that
plague businesses in California.” Advantage SCI has more than 150 employees
worldwide and has been a fixture in the Southern California business community since
2000. The relocation will not eliminate any jobs in California, but will translate into
increased efficiencies and cost synergies. CEO Elsa Lee said, “We have enjoyed being in
sunny California with the Pacific Ocean as our backdrop these last 15 years, but it no
longer makes sense for us to be here. Our business strategy now dictates that we move
to a more business-friendly environment .... We have been looking for the right location
47
NJR
NQF
#AE
#DF
#MA
}OSO
}REL
$3.5
50
#AE
#MA
}REL
120
$3
140
#FP
#MA
}CDO
50
$8
30
#AU
#MA
}CLO
}REL
Los Angeles
↔ Gardena
Mexico >
Mexicali
Los Angeles
↔ Irwindale
Florida >
Titusville
150
Los Angeles
↔ Long
Beach
Nevada > Reno
Los Angeles
↔ Long
Beach
West Virginia >
Williamson
N$R
for the last two years to blend our Virginia, Texas, and California corporate teams. Old
Town Alexandria is not only charming but it will enable us to create jobs, introduce new
products, invest in infrastructure and employee programs, and increase growth and
revenue,” Lee said. She added, “The relocation results in a positive financial return to the
company.”116
Chromalloy Gas Turbine, LLC furloughed employees producing pins, bushings, leaf
seals, and various small parts because the firm shifted the work to Mexico. The company
stated, “Employees may be offered positions with other units but not in California.” The
Dept. of Labor didn’t provide a figure for the number of jobs lost, but indicated that
furloughs may have begun as early as April 9, 2015.117 Work includes projects on military
aircraft and commercial airlines.118
Embraer Aero Seating Technologies will build a $3.5 million facility in Florida where
workers will design and manufacture seats for Embraer aircraft and possibly other
aerospace companies. After acquiring Aero Seating Technologies in Irwindale, Embraer
decided to create 150 jobs paying an annual average wage of $48,000 at its new
facility.119 It’s possible the company will move about 50 people from California and fill the
other 100 jobs with local people. The new plant is expected to open in 2016.120 It will be a
50,000-sq. ft. building.121
BI Nutraceuticals, the largest manufacturer of botanical ingredients in the United States,
is opening a new advanced manufacturing plant at the Tahoe-Reno Industrial Center.
The company processes raw materials into extracts, powders and custom blends that are
used on dietary supplements, pharmaceuticals and products including vitamins, teas and
powders. The 140,000-sq. ft. plant is expected to start operations in December, 2015.
“Lower operating costs and a business-friendly environment were key factors in our
decision to move to Northern Nevada,” said George Pontiakos, BI Nutraceuticals
president and CEO. “The new facility ... also allows us to be strategically located to better
meet the demands of our West Coast customers and help us to grow our business.” The
company will invest $3 million there and hire up to 120 new employees. The new plant
further expands the footprint of BI Nutraceuticals, which has operations in California, New
Jersey, New York and China.122
Hino Motors Manufacturing USA – This is an example of an opportunity cost to
California where a company establishes a “footprint” out of state, grows its business, and
then expands that facility. In 2015 Hino will invest up to $8 million at its truck
manufacturing facility in West Virginia, add 30,000 sq. ft. to its existing [194,000-sq. ft.]
building, and build a stand alone Quality Control testing center. “As production and
headcount have increased, we need the additional space to accommodate current
operations, as well as have future flexibility to add various processes to meet a greater
range of customer demands,” said Steve Stalnaker, Hino VP and Plant Manager. Hino
employs about 225 people there and expects to eventually create another 50 full-time
positions.123 The background here is relevant – in 2004, when Hino first began building
trucks in the U.S., the work was performed in Long Beach.124 In 2007, Hino selected
West Virginia for its second U.S. truck manufacturing plant, where it invested $8.6
million.125 Next, Hino ended medium-duty truck production in Long Beach126 and
subsequent growth occurred in West Virginia.
48
100
N$R
Texas > San
Antonio
95
N$R
Los Angeles
↔ Los
Angeles
Minnesota >
Golden Valley
12
Los Angeles
↔ Los
Angeles
Georgia >
Atlanta
Los Angeles
↔ Long
Beach
Texas >
Pflugerville
Los Angeles
↔ Long
Beach
NJR
51
#AE
#MA
#PL
#RD
}CDO
NQF
#AU
#MA
}REL
N$R
NQF
#HQ
#PB
}REL
N$R
NQF
#ET
}UTN
Medway Plastics Corp., a plastic injection molding company, will open a regional
production facility north of Austin. The company committed to creating 100 jobs in
Pflugerville over a five-year period; within the next year, it plans to hire a minimum of 20
full-time employees at an average salary of $40,000 per year. The company has
committed to a lease-purchase of 51,000 sq. ft. of space. Medway is based in Long
Beach, where it employs 200 workers who make plastic parts for the agriculture,
aerospace and other industries. Medway, founded in 1974, will also relocate its R&D
laboratory to Pflugerville. Though it will continue operations in California, the company
may consider relocating its headquarters to Pflugerville within five to eight years. 127 The
41-year-old, family-run business employs about 200 at its Long Beach headquarters. No
jobs are expected to be lost or transferred to the Texas location. While shipping costs are
part of the reason behind the decision, electricity costs are also a significant factor, said
Gerald Hutchinson, Medway’s vice president and head of R&D, because injection
molding uses a lot of it. “The cost of doing business in California is more costly,” he
said.128
Toyota Auto Body California is relocating some production to San Antonio, which could
lead to 95 full-time workers losing their jobs at its manufacturing plant in North Long
Beach. Full-time employment at the plant will decline from about 400 full-time workers to
about 300 people by the end of 2015. Manufacturing for some parts for the Toyota
Tacoma pickup truck will shift to San Antonio, where a Tacoma truck factory is located.
However, the North Long Beach plant will continue to produce Tacoma parts destined for
a factory in Mexico, as well as other parts for the company’s Service Parts Division. The
North Long Beach plant was opened in 1972, which was Toyota’s first manufacturing
facility in North America.129
BioSig Technologies, nearing the approval for its electrophysiology system, is moving
its headquarters to Golden Valley, a Minneapolis suburb, to get closer to the Twin Cities
medical-device talent. [[Along with the reasons cited, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Minnesota leading to a reduction in expenses.] The company will leave its
engineering staff in the Los Angeles area, but move executives to Minnesota and start
hiring locally. The company is developing a computer system that can read the data from
a hospital’s electrophysiology lab and filter out the noise from other machines in the
operating theater. Providing a cleaner signal should allow doctors to improve the
accuracy of procedures in which they burn away part of the heart to correct abnormal
heartbeats. The company expects to hire perhaps 12 people in upcoming months, but as
it approaches commercialization more employees will be brought on board. BioSig plans
to submit for FDA clearance for its Pure EP System, which will compete in the market
against other electrophysiology-recording systems that cost about $250,000 apiece.130
Complexions Contemporary Ballet, in planning to expand from New York, considered
several cities including Los Angeles and San Diego and decided Atlanta was the best
choice. One reason for the move is studio space. Complexions has never had its own
space for classes and rehearsals, but has been “nomadic” for 20 years. With its own
location and school in Atlanta, the organization will have a training ground for the next
generation of performers and hopes to bring in dancers from all over the world.
49
Los Angeles
↔ Los
Angeles
Arizona >
Chandler
Los Angeles
↔ Los
Angeles
Texas > Addison
Los Angeles
↔ Los
Angeles
Texas >
Northlake
Los Angeles
↔ Los
Angeles
Tennessee >
Nashville
550
N$R
76
#PB
}UTN
5
N$R
NQF
#PF
}CDO
500
#DN
#FP
#HQ
#MA
}CLO
}REL
10
#ET
#PF
}REL
350
27
$65
N$R
Complexions, a multiethnic dance troupe, employs dancers for 35 weeks a year and
tours nationally and internationally for more than 20 of those weeks.131 “Atlanta is a
perfect location for Complexions to expand its brand because of the city’s growing
performing arts scene,” said Dwight Rhoden, Co-Founder, Co-Artistic Director and
Choreographer of Complexions.132 Which areas or facilities that were considered in Los
Angeles and San Diego are unknown.
DaVita Rx, a full-service, specialty pharmacy for patients with complex conditions, plans
to open a new 76,000-sq. ft., 550-employee facility in Chandler. “I was familiar with
Arizona from my work with another company and its location here,” said Neil Prezioso,
vice president specialty for DaVita Rx. “Phoenix, specifically Chandler, was the clear
choice for us.” The company had considered Los Angeles for the expansion and new
division. Although it will start hiring late this year and open Jan. 2, 2016, DaVita (Italian
for “giving life”) is going to take two to three years to reach scale.133
Doug Fregolle Promotions opened an office in Addison almost entirely because of
Toyota moving its North American headquarters to Plano. Though the promotional
products agency is still headquartered in L.A., company President Doug Fregolle said the
decision to open in Addison was to get “ahead of the curve” on other companies
expected to move to the area. Having worked with Toyota in California, Fregolle said the
auto manufacturer does millions of dollars in business with his company every year. “Our
business is growing already ... we’re profitable, which is unbelievable; we expected to be
flat for about two years,” Fregolle said. “In California, they’re pushing people away.” As of
this writing, the company isn’t receiving tax incentives for moving into Texas.134
Farmer Bros. Co. will relocate its headquarters to a new $40 million, 500,000-sq. ft.
facility in Northlake, near Fort Worth, where about 300 people will work. The company
has annual sales of more than a half billion dollars for coffee, tea and culinary products;
clients have more 60,000 outlets. The move will result in $12 million to $15 million in
annual savings.135 Proximity to the Port of Houston was a factor in the decision.136 The
company estimates it would cost about $25 million to exit the Torrance facility and
another $35 million to $40 million to build the new facility with up to $25 million in capital
expenditures for machinery, equipment, and furniture and fixtures. The company also is
moving manufacturing and some distribution.137 Farmer Brothers serves food service
establishments – restaurants, hotels, casinos, hospitals – and Quick Serve Restaurants
(“QSR’s”), grocery retailers, drugstores, convenience stores, and coffee houses
nationwide with about 3,000 products. The California facility will close in phases. 138 The
company will lay off more than 350 employees although it will keep a distribution center in
California. Farmer Brothers is in the city of Los Angeles, but having a Torrance mailing
address creates some confusion. It is one of the oldest publicly traded firms in Los
Angeles County – in operation since its 1912 founding.139 This is a blow to middle-class
wages in Southern California; employees may have a hard time matching the $40,000 to
$80,000 jobs they are about to lose.140
Go West Creative. When it opened in Nashville with six employees, the intent wasn’t to
relocate the creative agency’s headquarters from Los Angeles, but that is what
happened. Chairman/CEO David Fischette, who founded the company 30 years ago,
said that doing business in Nashville has been more cost-effective, overall, for the
50
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
Arizona >
Phoenix
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
Ohio > Mason
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
North Carolina >
Wallburg
Florida >
Jacksonville
North Carolina >
Greensboro
North Carolina >
Winston-Salem
NJR
145
NJR
61
NJR
301
N$R
NQF
N$R
NQF
N$R
NQF
N$R
NQF
N$R
NQF
$3.5
NQF
}REL
#FP
#MA
}CLO
}REL
}REL
business. In addition to less expensive physical space, commuting time is down and the
availability of young, upcoming talent is high. Go West moved 18 employees and their
families from the West Coast to their new facility in Nashville’s charming Germantown
neighborhood. The company occupies three floors and roughly 10,000-sq. ft. creative
office and studio space, and its local headcount is up to 27 employees. Fischette is
negotiating for the building next door for production and warehouse space. Currently, the
company rents space near the airport for its video production. Go West which also has
offices in New York City, Las Vegas and (scaled-down) in L.A., produces large-scale
events, conferences, creative content and experiential marketing campaigns. “For me,
[Nashville] is long-term,” said Fischette, who first visited the city when his daughters
began school at Belmont University.141
Greenway Designs, Inc. / Deal-X Technologies – see the Huntington Beach entry for
this company for more details about this event.
H.J. Heinz Co. will close its condiments and sauces plant in the Chatsworth section of
Los Angeles and furlough 145 employees. The food company acquired the plant as part
of its purchase in 1994 of Borden Foodservice Group from Borden Inc. Then, the facility
employed about 370 workers. Today there are about 145 employees. It manufactures
single serve cup and pouch condiments and sauces, as well as bulk sauces and
dressings.142 Production from the factory will shift to locations in Mason, Ohio, and
Jacksonville, Fla., where facilities share the same capabilities as Chatsworth. 143
H.J. Heinz Co. will move production to Ohio; see the 2014 Jacksonville entry for this
company for more information about this event.
#AE
#MA
}CLO
}REL
HAECO Americas (formerly TIMCO Aviation Services, formerly Brice Manufacturing) will
close a 61-job seat fabrication unit in California. Employees will be able to apply for
positions with HAECO in Wallburg (near Winston Salem), where the company houses a
growing, high-volume aircraft seat manufacturing plant that has growth potential. It
employs about 223 workers and is gearing up to make a new lightweight aircraft seat
called Vector that will be launched this year. That plant will eventually employ 500 fulltime workers. Employees may also apply for jobs in Greensboro, in a cabin solutions
facility at the Piedmont Triad International Airport. Other employees who work in
engineering and product support will remain in Pacoima, a section of L.A.144
HAECO Americas – see the Greensboro entry for this company for more information
about this event.
#FP
#IT
#MA
}CDO
Herbalife Ltd. found that the quality of life and workforce in Winston-Salem made it the
best place to relocate key operations. The nutritional company confirmed plans to add
about 300 full-time jobs by the end of 2018, boosting its workforce commitment by 60% to
800 jobs. Some of the additional jobs will be filled by Herbalife employees moving from
California. “Our newest and largest facility in Winston-Salem is integral to our global
growth,” said David Pezzullo, Herbalife’s executive vice president, worldwide operations.
“There is not another facility like this in our industry. Pezzullo said the company expects
little problem in convincing California staff to move to the Triad. “From the people who
51
Los Angeles
↔ Los
Angeles
Nevada > North
Las Vegas
Los Angeles
↔ Los
Angeles
Netherlands >
Amsterdam
NJR
145
N$R
NQF
#EN
#RD
#TP
}CDO
N$R
NQF
#BF
#SB
}OSO
}REL
have already made the move, there is an underground awareness that there are better
real-estate values here, less traffic to deal with and a great quality of life,” Pezzullo said.
“It’s a real attraction to management types who are raising a family. We don’t have to
convince them to move.” When the site selection project was completed, North Carolina
won out over locations in Colorado and Mexico.145 The 301 new jobs are in addition to
the 500 jobs that will have been created by the end of 2015. It also plans to invest an
additional $3.5 million into infrastructure and development by the end of 2016. The
company plans to further expand its manufacturing operations in Winston-Salem, as well
as establish a significant global corporate information technology presence (such IT jobs
are typically located in a company’s headquarters). The new jobs will include production
staff and IT staff.146 (When the plant was first established several years ago, that event
was excluded and still is excluded from this report because of the nature of that event.
However, additional expansions and growing IT for “global” purposes is a different
matter.)
Hyperloop Technologies Inc. The way the Las Vegas Sun put it -- “A new Elon Musk
brainchild is coming to Nevada: Hyperloop. ... Musk calls it the ‘fifth mode’ of
transportation – after aircraft, automobiles, boats and trains – and has described it as a
‘cross between a Concorde and a railgun and an air hockey table.’”147 Hyperloop
Technologies will locate a test track on about 50 acres in an industrial park in the City of
North Las Vegas. Testing is expected to begin early first quarter 2016. “This decision
represents another major milestone in our journey to bring Hyperloop to commercial
reality,” said company CEO Rob Lloyd. Hyperloop is a transportation system in which a
full-length tube is built between destinations, with a controlled environment inside the
tube allowing people or cargo to travel at extremely fast speeds. The testing facility will
include a track of approximately 1 km where the custom-designed linear electric motor
will be tested at speeds of about 335 mph (540 km/hour). The Hyperloop technical team
is pioneering innovations in propulsion, tube design and fabrication, levitation systems,
pod designs and thermodynamics and systems engineering. This milestone is a first step
towards the full Hyperloop system test. Hyperloop Technologies Inc. is financially backed
by leading investors Khosla Ventures, Formation 8, Sherpa Ventures, Zhen Capital,
Caspian VC and more. The company, founded in 2014, has raised $37 million in
financing to date and is currently completing a Series B round of $80m.148 Hyperloop’s
North Las Vegas decision is a first step. The company will select a site for a full-scale,
full-speed prototype by late next 2016 or early 2017. It’s unknown if Nevada is in the
running for that 1.86-mile (3-kilometer) Hyperloop track.149 Note: Elon Musk has been
openly hostile to California’s High-Speed Rail program. He devoted the first substantive
paragraphs of his first Hyperloop whitepaper to a swipe at “California ‘high speed’ rail”
(complete with skeptical scare quotes), which he described as “one of the most
expensive per mile and one of the slowest in the world.”150
International Lease Finance Co. d/b/a AerCap furloughed employees and leased
workers who are engaged in activities related to the leasing of airplanes and shifted the
work to Amsterdam. A filing with the Dept. of Labor indicated a potential furlough of 145
workers.151
52
Los Angeles
↔ Los
Angeles
New York >
Westbury
Los Angeles
↔ Los
Angeles
North Carolina >
Monroe
Los Angeles
↔ Los
Angeles
Michigan >
Southfield
Los Angeles
↔ Los
Angeles
Foreign Nation >
Unknown
Los Angeles
↔ Los
Angeles
Mexico >
Unknown
Los Angeles
↔ Los
Angeles
Nevada > Las
Vegas
57
N$R
65
#AE
#EN
#HQ
#MA
}CLO
}REL
250
$140
120
#DN
#MA
#PA
}CDO
75
$2.5
NQF
#AU
#HQ
}REL
NJR
N$R
NQF
#BF
#IT
}OSO
}REL
70
N$R
NQF
#MA
}OSO
}REL
60
$1.5
#HQ
#PB
}REL
70
Novaria Group will create 57 jobs in Nassau County, when it moves its subsidiary, Sky
Aerospace Products, from Los Angeles to Westbury, Long Island, New York. The
company has 81 employees in the John Hassall facility in Westbury, which Novaria
purchased earlier this year. An undisclosed amount of capital will be invested to upgrade
65,000-sq. ft. factory, which produces aircraft engine fasteners, bolts, rivets, blade locks
and other flight-critical hardware. Long Island, the ‘cradle of aviation,’ has an extensive
aerospace manufacturing history (e.g., 1929 birthplace of the Grumman Aircraft
Engineering Co.) and an educated workforce able to build relevant products.152
Apparently, Sky Aerospace Products facilities in Texas, Florida and Ohio are not being
relocated to Long Island.
O’Neil Digital Solutions plans to buy a 120,000-sq. ft. building to house a print
management, warehouse and fulfillment center with 250 employees, a project expected
to cost $140 million over ten years. The company is a national compositor and publisher
serving businesses in the health-care, finance, publishing, retail, entertainment and
automotive industries.153 Note: There also is a 2011 event where the company will move
part of their office, manufacturing, assembly and distribution operations to Plano, Texas,
a project that involves a unit of Investor’s Business Daily, a part of O’Neil Data Systems.
Superior Industries International, Inc., the largest manufacturer of aluminum wheels
for passenger cars and light-duty vehicles in North America, is relocating its global
headquarters from the Van Nuys section of Los Angeles to the city of Southfield, which is
near Detroit.154 Apparently some administrative functions will remain in California.
Transamerica Life Insurance Co., Enterprise Business Services, furloughed employees
and on-site leased workers in finance, accounting, procurement, project management,
and IT services. One employee’s experience: “She trained the overseas employees with
her daily functions for the last two months. Then she turned over her work to the
overseas employees and answered questions. She then received a company layoff
notice.” The Department of Labor certified that the shift of the work was competitive with
the service supplied by the workers. The DOL didn’t identify the nation, nor did it provide
a figure for the number of jobs lost.155
Triangle Brass Manufacturing Co. Inc. (aka Trimco). The company manufactures
custom door hardware and architectural hardware including door pulls, heavy duty and
anti-vandal products, push and pull plates, kick plates and door stops; it is moving
production to Mexico and about 70 employees will lose their jobs.156 It isn’t clear to which
location in Mexico production will move, however the company has a subsidiary in
Tijuana, Builders Brass de Mexico (BBM), capable of pouring brass, bronze, aluminum
and CuVerro antimicrobial copper. CuVerro is a class of copper-based alloys that
continuously kills harmful bacteria 24 hours a day.157
Trigg Laboratories, a consumer healthcare product manufacturer, will relocate its
headquarters and manufacturing facilities to a 70,000 sq. ft. facility in Las Vegas. The
company expects to create 60 jobs in the area starting in July 2016. Company President
Sean Smith said, “Migrating to a state where manufacturing is encouraged is such a
breath of fresh air compared to the anti-manufacturing climate in California. The
administration actually encourages the success of new business and we were treated like
friends. We are very excited to operate under favorable governmental auspices as they
53
Los Angeles
↔ Los
Angeles
Wisconsin >
Wausau
Los Angeles
↔ Los
Angeles
Kentucky >
Covington
Los Angeles
↔ Torrance
Texas >
Grapevine
NJR
N$R
9
180
N$R
$51
NQF
NQF
190
#GR
#HQ
#MA
#RD
}REL
#HQ
#SO
}REL
#AU
#CS
#HQ
#RD
}CLO
}REL
have provided a platform to help our company continue its success. It was amazing to
have a personal audience with the Governor, Secretary of State and their
administration.”158 Smith also said that the company opted to move because “California is
the grim reaper” with its current tax environment.159 The company will invest $1.5 million
in building improvements into its new operation in Clark County as they set up operations
in the Silver State. Trigg Laboratories will now design, formulate, fulfill, and market their
suite of products to their customers around the world with their products available in 64
countries. “Operating in Nevada will allow us to reduce our operating costs far beyond
what we currently are seeing in California, “said Smith.160
W Solar Group, Inc. The company states: “W Solar will relocate during 2015 and open
its new headquarters and research and development facility in Wisconsin. Manufacturing
operations are planned to open in 2016. Wisconsin ... will be an excellent fit for W Solar’s
relocation and expansion.”161 Several websites show the company with a Wausau
address.162 The company is located in Chatsworth neighborhood in the City of Los
Angeles.
Wyzerr moved from Los Angeles to Covington, Ky., across the Ohio River from
Cincinnati, with help from startup accelerator seed funding, mentors and networking.
Wyzerr, pronounced “wiser,” use neuroscience and learns from mobile games to creates
surveys and analytics tools to help organizations learn from their customers. Wyzerr
currently has 44 pilot projects running with different companies. CEO Natasia Malaihollo
said she expects to grow to nine employees by the end of December, 2015. Wyzerr will
shift its focus and become more of a software as a service company. Malaihollo credits
the Greater Cincinnati’s startup scene and organizations like Brandery and Connetic for
making the decision to locate in Covington easy. “There’s a renaissance going on and
you can feel it. Being part of StartupCincy definitely feels like you’re a part of something
bigger. Here in Cincinnati, there are a lot of people invested in this new tech economy,”
Malaihollo said. “The support we get is 10 times more than what we saw in the Bay Area.
Here it feels like you’re only separated from people you want to talk to by one or two
people.” Her company received investments from Greater Cincinnati funders, Covington’s
Connetic Ventures and Owensboro-based Marshall Ventures.163
Kubota Tractor Corp. and Kubota Credit Corp. will move their headquarters to
Grapevine – expected to create at least 344 new jobs and $51 million in capital
investment in Texas. The tractor maker said construction on the new facility will begin this
year with scheduled completion by the early 2017. Kubota Tractor Corp. President/CEO
Masato Yoshikawa said among the benefits of the move is to “enter new industry
segments and to position our company for long term, sustainable growth in North
America. This is the most significant change we have undertaken during our long and
successful history in the U.S., and there was much thought, deliberation and
consideration that went into our decision.... we look forward to achieving added
operational efficiencies with this move.” Both companies are subsidiaries of Japan-based
Kubota Corp.164 Economic incentives were important, but not the driving factor in the
decision, said Vice President Dan Jones. “Texas’ business friendly climate is a big
factor,” he said. “We focused more on getting closer to our major markets and our
customers. That was more important than the incentives.”165 [Along with the reasons
54
90
Los Angeles
↔ Torrance
Japan >
Tsuyama
Los Angeles
↔ Torrance
Texas > Dallas
100
Los Angeles
↔ Torrance
Texas > Plano
1,000
N$R
NQF
#CP
#MA
}CLO
}OSO
}REL
$4
60
#BF
#HQ
}REL
$350
600
#AU
#EN
#HQ
#SB
}REL
cited, it’s conceivable that the location decision was influenced by lower business and
employee costs, taxes and regulations in Texas leading to a possible reduction in
expenses by between 20% and 35%.] The company is negotiating with the City of
Grapevine to buy up to 25 acres of land; one virtue of the site is its close proximity to
DFW airport.166 The move will affect about 180 employees at the Torrance
headquarters.167 The 190,000-sq. ft. headquarters will house North American executives
plus be a center for R&D.168
Panasonic Disc Manufacturing Corp. of America, a subsidiary of Panasonic North
America, in a cost-cutting move, will close its Torrance manufacturing plant that opened
nearly 20 years ago and once employed more than 400 workers. A company
spokesperson said Panasonic “will cease manufacturing” ROM discs for content owners
in North America; 90 workers were furloughed. A Panasonic factory in Tsuyama, Japan,
will take over production and continue to supply customers with discs. The change will
“reinforce the profitability” of the Storage Business Division’s media business “by
reducing fixed costs and consolidating facilities.”169 The company reported to the Dept. of
Labor that “Production is transferring to Japan by end of April 2015.” This followed a
2014 event where the company transferred some work to Japan, with the Department of
Labor indicating that furloughs may have begun as early as March 4, 2014.170 Since the
events have the appearance of being part of a two-year continuum, and to remain
conservative in this report’s analysis, both actions are being counted as a single event.
Toyota Industries Commercial Finance Inc. selected Dallas for its new headquarters
after looking at potential locations in other U.S. cities. The 60,000-sq. ft. office will open at
the end of 2015. Most of the company’s workers are now in Torrance, Calif. The
company handles financing of vehicles and equipment made by the nearly 90-year-old
Toyota Industries, a sister company of Toyota Motor Corp. that manufactures industrial
equipment.171 The company was formally part of Toyota Motor Credit Corp., but was
spun off from that group last year, and is separate from other Toyota entities, which are
already moving to North Texas as part of Toyota North America’s planned relocation. The
company plans to spend about $4 million on real property improvements to the building
and plans to fill about 150 full-time jobs with an average salary of about $80,000.172 [The
company has given various reasons for its relocations. It’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Texas leading to a reduction in expenses.]
Toyota Motor Corp. – The company’s 2014 announcement about relocating its Torrance
HQ to Texas was widely reported by the news media. Less attention has been given to
how the Texas project has mushroomed in 2015 – so much so that events warrant a
separate 2015 entry, as follows: In 2015 it was learned that Toyota filed plans filed with
the city of Plano that show the new headquarters will be about one-third to twice the size
originally proposed, depending upon whether space or number of employees are
counted. The HQ complex has grown to more than 2.1 million sq. ft. (only 600,000 is
attributed here, to 2015) with about a half dozen buildings plus parking garages on the
99.8-acre site. There will be parking for more than 7,000 cars, further proof that early
estimates of employment were too low. Toyota first said that fewer than 4,000 people
would be working at the office campus by 2017; now, up to another 1,000 contract
55
Los Angeles
↔ Vernon
Texas > Round
Rock
400
$13
Los Angeles
↔ Vernon
Canada >
Toronto
188
Los Angeles
↔ Vernon
Orange ↔
Aliso Viejo
New York >
Cortland
Arizona >
Scottsdale
Orange ↔
Anaheim
Mexico > Tijuana
NJR
N$R
Orange ↔
Costa Mesa
Washington >
Seattle
NJR
N$R
N$R
NQF
#DN
#FP
#MA
#SB
}REL
NQF
#MA
}REL
}REL
15
N$R
NQF
#DO
#PB
#SO
}CLO
}REL
240
#MA
#PB
#PL
#OSO
#REL
NQF
#HQ
#PF
#REL
workers would be located there (the maximum applied in this report to the 2015 event).
The site layout also shows an auto test track on a corner of the property.173 As of May,
the additional capital investment has yet to be announced. [The company has given
various reasons for its relocations. It’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Texas
leading to a reduction in expenses by between 20% and 35%.]
ProPortion Foods LLC, a Los Angeles area-based food service company, will relocate
to Round Rock. The company plans to relocate its office, food processing, storage and
warehouse facility. The total investment will be at least $13 million and the company will
have at least 400 full-time employees there.174
Marietta / KIK Corp., which manufactures personal care products, is shifting production
to the Rexdale neighborhood of Toronto, Canada and to Cortland, New York, according
to a filing with the U.S. Dept. of Labor. As many as 188 workers may be separated from
employment effective June 30, 2016.175 At this time, because it’s unclear whether this is a
complete closure or partial relocation, the event is noted only as the latter.
Marietta / KIK Corp. – See the 2015 Toronto entry for this company for more information
about this event.
Gobiquity Mobile Health produces the application GoCheck Kids, which was launched
last year. It is a program on a smartphone incorporating a cloud-based HIPAA compliant
platform that pediatricians use to screen a child’s eyes for risk factors that lead to vision
loss.176 The software-as-a-service company will move into the “Cure Corridor” in
Scottsdale. The company is relocating all 10 of its current employees and plans to hire
five more soon.177
Parker Hannifin Corp. will reorganize its Medical Systems Division, which will be
integrated with Composite Sealing Systems, based in San Diego. In the process, two
facilities – in Anaheim and Fontana – of the Medical Systems Division will be closed in
the next 18 months while the company will expand operations in Mexico by the end of
2016. The company didn’t confirm how many employees would be affected. The Tijuana
facility totals 160,000-sq. ft. – of which about 23,000 is dedicated to the Medical Systems
Division. The Anaheim operation is listed as the Medical Systems Division’s
headquarters, which includes a Class 8 clean room and a testing lab. It manufactures
precision molded elastomeric components. The Fontana unit houses thermoplastic
injection molding capabilities, including 47 injection molding machines and two Class 8
clean rooms. Parker formed its Medical Systems Division after purchasing the Hi-Tech
Group of companies in 2008.178 Only about a week earlier, the Medical Systems
Business Unit announced plans to expand its manufacturing capabilities in Mexico with
the addition of a new 240,000-sq. ft. building. It will combine silicone, organic elastomer,
thermoplastic molded products and assemblies in one ISO-13485 certified facility and
includes four ISO Class 7 and 8 clean rooms. The new facility will combine molding
technologies and assembly capabilities from “two separate locations” into one vertically
integrated facility.179
iDiscovery Solutions, Inc. (iDS), a legal technology and information governance expert
services firm, will relocate its West Coast headquarters to Seattle. The new office, which
includes a state-of-the-art forensics lab, will allow iDS to expand its service offerings in
56
Orange ↔
Foothill
Ranch
Pennsylvania >
Carlisle
Orange ↔
Fountain
Valley
Texas > Plano
Orange ↔
Fullerton
Great Britain >
Unknown
Orange ↔
Fullerton
Unknown >
Dispersed
Orange ↔
Fullerton
Florida >
Orlando
Orange ↔
Huntington
Beach
Arizona >
Phoenix
Orange ↔
Irvine
New York > East
Amherst
70
NJR
N$R
NQF
#MA
#PB
}CLO
}REL
N$R
15.1
#CP
#DO
#HQ
#RW
}REL
40
N$R
NQF
#MA
}REL
430
N$R
NQF
#FP
#MA
}CLO
}DSP
}REL
85
N$R
#ET
#MA
}REL
#GR
#HQ
}REL
#BF
#HQ
}REL
NJR
50
N$R
N$R
NQF
NQF
17.3
the Pacific Northwest and northern California, while positioning the company for growth
within the region. The company said that “the move will allow us to better serve our
clients in the Pacific Northwest – and throughout the West Coast – as their need for eDiscovery expertise increases.”180 The Seattle office had opened only six weeks prior to
the relocation announcement.181 A company representative confirmed that the West
Coast operations headquarters was moving from Costa Mesa to Seattle.182 [Along with
the reasons cited, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Washington leading to a
reduction in expenses.]
Pfizer closed the plant in Foothill Ranch that it acquired earlier from California-based
Alacer to add to its consumer health business. The plant closes in May, where 70
workers will be furloughed, and manufacturing of the Emergen-C product line will move to
Carlisle, Penna. Pfizer says that Emergen-C products is the largest selling branded
Vitamin C line in the United States.183
RifleGear, an online retailer, will relocate to Texas. It will start with a retail space in Plano
and follow that by moving its headquarters to the location in 2016.184 The company will
start by leasing 15,054 sq. ft. of space, almost half of which will be devoted to their retail
showroom and a training room. They may buy or develop a building after their five-year
lease runs out.185
BI Technologies/TT Electronics, a manufacturer of hybrid electronic components, has
informed the U.S. Dept. of Labor that “production will be shifted” to the United Kingdom in
2017 and that as many as 40 office and manufacturing workers may be separated from
employment. At this time, because it’s unclear whether this is a complete closure or
partial relocation, the event is noted only as the latter.186
Kraft Heinz will close its manufacturing plant and 430 people will lose their jobs. The
170,000-sq. ft. Fullerton plant produces Lunchables, a packaged meal for school-age
children that debuted in 1989. Lunchables have met with huge success, now comes in
more than 50 options, and nets around $500 million in annual sales. Lunchables are
manufactured in other plants as well, but the Fullerton facility is the only one dedicated
entirely to making them. Kraft and Heinz merged earlier in 2015 to form Kraft Heinz.
Heinz was bought by 3G and Berkshire Hathaway in 2013. Another California plant
scheduled to close is located in Alameda County.187
Walt Disney Parks and Resorts will transfer manufacturing of costumes for the
company’s theme park workers from Fullerton to Orlando, furloughing 85 employees in
the process.188
Greenway Designs, Inc. of Huntington Beach – a “green technologies company” – after
acquiring Deal-X Technologies, located in the West Hills neighborhood of Los Angeles,
will relocate its headquarters to a third location -- Phoenix. “The talent pool in the Phoenix
area rivals any area outside of Northern California and Silicon Valley and the spirit of
entrepreneurship is here and it’s a great place to build a tech team,” said CEO Thomas
Gregory.189
Capstone Financial Group, Inc. is relocating its headquarters to a 17,300-sq. ft. office in
East Amherst, near Buffalo. Employees have been relocating from California [apparently
around April 2015]. The company plans to hire 50 more employees, including a COO,
57
Orange ↔
Irvine
Foreign Nation >
Unknown
NJR
N$R
NQF
#QA
}OSO
}REL
Orange ↔
Irvine
Kansas >
Lawrence
NJR
N$R
NQF
#PB
#RD
}REL
Orange ↔
Irvine
Texas > Irving
Orange ↔
Irvine
South Dakota >
Sioux Falls
Orange ↔
Irvine
India > Unknown
Orange ↔
Irvine
Georgia >
Atlanta
141
NJR
N$R
38
#AU
#HQ
}REL
N$R
NQF
#DN
#MA
#PB
#RD
}CDO
#BF
#SB
}OSO
}REL
#HQ
#SO
}REL
68
N$R
450
N$R
NQF
78
controller, treasury staff, fund managers, analysts, valuation experts, investment bankers
and sales staff. Capstone invests in privately-held or illiquid companies, particularly in life
sciences, and help them grow. The move was motivated in part by activity in the region’s
technology and life sciences sectors. It’s also a return for Darin Pastor, CEO of
Capstone, an area resident.190 In 2012, Prudential ranked him as the #1 Managing
Director in the nation measured by sales growth, and he was ranked as the top-selling
Senior Investment Manager in the nation during his tenure at JPMorgan Chase & Co. 191
Prior company news releases state that the HQ was in Irvine. 192
Delphi Connection Systems, LLC, a subsidiary of Delphi Automotive, LLC, furloughed
employees engaged in services related to the testing and inspection of various cable
assemblies and machined components for commercial vehicle and military applications
because the company shifted the work to a foreign nation. The Department of Labor, in
certifying the event, failed to identify the nation and the number of jobs lost. 193
Interactive Medical Technologies (IMT), a unit of Stason Pharmaceuticals Inc. opened
a laboratory in Lawrence in 2014, an event that was not discovered in time to include as
an event for that year. However, in 2015 the company decided to move the remainder of
that operation from Irvine to Lawrence; hence, that event is noted for this year as a
relocation.194
Motorsport Aftermarket Group and MAG Retail headquarters will relocate from Irvine to
the Irving portion of Cypress Waters – a decision made by its new owner, Indianapolisbased Velocity Holding Company Inc. The company will move into a new 38,000-sq. ft.
building in Cypress Waters. Motorsport Aftermarket Group has been ramping up for its
new Texas headquarters by hiring some key leaders, including new CFO Rick Walters, a
McKinney resident who previously worked in Richardson-based Service King’s executive
office. In January, the company named Andy Graves as the president and CEO. The
company plans to hire a minimum of 141 employees with an average wage of $70,000
per year in a move slated to be completed by the end of 2017. 195
NanoBlood LLC, a biotech company and subsidiary of SynZyme Technologies LLC, is
relocating to Sioux Falls, where it will continue the regulatory and commercial
development of its nano red blood cell as a life-saving drug in critical care and transfusion
medicine. Researchers will be splitting time between Sioux Falls and the company’s pilot
scale facility in Georgia to produce the product for clinical trials. Assuming trials are
successful, NanoBlood then plans to build a commercial Sioux Falls manufacturing plant.
The facility would employ up to 200 employees and several hundred additional jobs in
supply chain and distribution operations.196
QBE Americas moved the work of the home owners insurance processing department to
India. The Department of Labor didn’t identify the community in India.197
The California EDD reported that the number of employees affected in Irvine totaled
68.198
Sage, the business management software and services company, is moving its North
America headquarters to Atlanta. There, it also will locate an innovation center to focus
on marketing and product development of Sage Life, a new accounting application, said
Sage North America Chief Financial Officer Marc Scheipe. The company picked Midtown
Atlanta to be close to Georgia Tech, which produces much of the city’s next-generation
58
Orange ↔
Irvine
Kansas >
Lawrence
10
N$R
NQF
#PB
}CDO
Orange ↔
Los Alamitos
India > Unknown
74
N$R
NQF
#PF
}CLO
}OSO
}REL
Orange ↔
Newport
Beach
Louisiana > New
Orleans
50
N$R
#ET
}REL
Orange ↔
San
Clemente
Utah > St.
George
#CP
#HQ
#MA
}REL
NJR
N$R
3.9
NQF
tech workforce.199 [Along with workforce availability, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Georgia leading to a reduction in expenses by between 20% and 35%.]
Sage will occupy up to 78,000-sq. ft. of space and will add to its presence in
Lawrenceville, Ga. Combined, the offices will employ about 1,000.200 Scheipe said the
project happened very quickly.201 The North American unit – which ranks as the sixth
largest software maker in Orange County – accounted for about 34% of the nearly $1.1
billion in revenue posted in the six months through March for U.K.-based parent Sage
PLC. Sage’s software streamlines accounting, purchasing, payroll processing and other
day-to-day tasks. Rivals include Intuit Inc., Microsoft Corp., Oracle Corp. and SAP AG.202
The Sage Midtown Atlanta office is expected to bring 450 jobs to the city over the next
few years.203
Stason Pharmaceuticals Inc. is slowly expanding its presence in Kansas with plans to
make the Kansas City are “a major portion of the company.” It has established a new lab
in the Bioscience and Technology Business Center at the University of Kansas’ Lawrence
campus where ten employees will test Stason-manufactured pharmaceuticals.
Eventually, the company plans to expand there to include personnel responsible for
Stason’s commercial and service efforts, university collaborations and industry
partnerships with the possibility of moving out of the BTBC space and into a separate
facility.204
Dex Media Inc. d/b/a Dex Media Services furloughed employees and on-site leased
workers involved in marketing and advertising services because the company shifted the
work to India. The DOL didn’t identify the community in that country.205 The California
EDD reported that the number of workers affected in Los Alamitos included 49 in one
furlough and 25 in another, for a total of 74 in an event noted as “Closure/Permanent.”206
InXile Entertainment Inc. President Matt Findley and founder Brian Fargo will open a
studio in New Orleans, which will house 50 developers each earning about $75,000 per
year. Fargo, who founded InXile in 2002, said a Louisiana expansion was not part of the
plan until state economic development officials visited him and when he came to
understand the creative culture in New Orleans. Findley and Fargo started seriously
looking into a move in July. By September, plans for the move to a 3,900-sq. ft. office
were in place. “I think that if you’re going to do something you do it,” Fargo said. “So we
did it.” Developers will work on new projects, including a successor to “The Bard’s Tale”
trilogy, a classic fantasy role playing game. The company decided to locate away from
downtown and the Central Business District and selected an area that had the “right
vibe.” Findley said workers will transfer from the company’s Newport Beach headquarters
to establish the studio. Both Findley and Fargo said they were concerned at first that few
of their developers would be willing to leave California for New Orleans. They were
surprised when about a dozen expressed interest in making the move. Findley will sell his
home in California and settle into a place in New Orleans, where he will oversee the
studio. “There are jobs here in New Orleans. Come and get them,” he said.207
Kimberly Parry Organics Corp. has relocated the company and manufacturing to St.
George, Utah, where added space will support growth while maintaining control of quality
and manufacturing practices. The centralized facility offers lower cost of operations and
59
Orange ↔
Tustin
Michigan >
Northvale
Township
Riverside ↔
Corona
Texas >
Unknown
40
N$R
Riverside ↔
Riverside
Mexico > Tijuana
50
N$R
Riverside ↔
Temecula
Costa Rica >
Alajuela
163
N$R
125
$25.9
50
#EN
#HQ
#MA
}REL
#MA
#DN
}CLO
}OSO
}REL
127
#MA
#PL
}OSO
}REL
NQF
#MA
#PB
}OSO
}REL
NQF
an opportunity to partner with the community and college for the company’s employment
needs. Kimberly Parry Organics states that it is the largest USDA Certified Organic
manufacturing company in the world, supporting more than125 organic skin care, spa,
baby and wellness products.208
CW Bearings, USA, Inc. (Parent company: Cixing Group Co. Ltd.) The Chinese
bearing manufacturing company will build a facility in Northville Township to house its
U.S. headquarters, an engineering and technical center, and advanced manufacturing
operations. The project will generate capital investment of $25.9 million. The company
produces bearing components used in electronic power steering systems that are
gradually replacing hydraulic steering systems. Michigan was chosen over competing
sites in other states.209 The 50,000-sq. ft. development, located about 25 miles west of
downtown Detroit, is expected to create 125 jobs.210 The acreage allows for the later
expansion of potentially another 40,000 sq. ft.211 Manta lists the HQ as being in Tustin212
as does Automotive News213 and other sources. The company has been in business in
Tustin since 1994.214
Robertshaw Controls Co., which produces electrical components, furloughed 40
employees including on-site leased workers because the company shifted production to a
foreign country. The Dept. of Labor didn’t identify the nation, nor did it identify where
production was shifted from, but it certified that this particular job loss is related to the
move of warehousing and distribution services to Texas as a result of the offshoring
event. Since the location of the production shutdown isn’t known (it may have been
outside of California), and since the Corona warehouse closed, this is listed as a single
event and is assigned to Texas.215
Trademark Plastics Inc. is adding a location in Tijuana, Mexico, to meet growing
demand from medical device and consumer product customers. [Along with the reason
cited, it’s conceivable that the location decision was influenced by lower business and
employee costs, taxes and regulations leading to a possible reduction in expenses by
between 20% and 35%.] The custom injection molder plans to begin Tijuana operations
this year in a facility that will include a Class 100,000 clean room. Trademark’s initial
effort will involve 15 injection molding machines in the clean room, some assembly work
and up to 50 employees. In starting in Tijuana, Trademark will move some equipment
from Riverside and is likely to acquire newer replacement presses for use in Riverside.
Trademark hopes to have a second phase done by the end of 2016. Additional capacity
is contemplated in a third phase in 2018. Upon completion, the total facility would occupy
127,000 sq. ft. Trademark contracted with a maquiladora operation. Medical device
components account for about 80% of its business. Trademark was founded in Rancho
Cucamonga in 1989 and moved to Riverside in 2002. Trademark is certified as a
women’s business enterprise.216
Abbott Laboratories furloughed 163 workers at its Temecula facility, the latest in a
series of cuts that has dropped the local workforce more than 60%, from a high of 4,000
or so to around 1,500. The Fortune 500 company makes medical devices such as
dissolvable heart stents – the known commercially as Absorb – in Temecula. The jobs
were full-time, fully-benefited jobs that paid between $45,000 and $80,000 in a facility
that previously was run by Guidant Corp., which became part of Abbott in 2006. Abbott
60
Sacramento
↔ Elk Grove
Unknown >
Dispersed
72
N$R
NQF
#CH
#MA
}CLO
}DSP
}REL
San
Bernardino
↔ Chino
Mexico >
Reynosa
71
N$R
NQF
#CP
#MA
}CLO
}OSO
}REL
San
Bernardino
↔ Chino
San
Bernardino
↔ Fontana
Michigan >
Grand Rapids
N$R
NQF
#BF
#SB
}CLO
}REL
N$R
NQF
#CP
#DN
}CLO
}DSP
Unknown >
Dispersed
NJR
36
also eliminated 81 jobs in Santa Clara, according to the California Employment
Development Department.217 Based on other events in earlier years of this report that cite
company announcements and a U.S. Department of Labor finding, the jobs are being
shifted to Costa Rica to a plant that is expected to employ 3,000 people. Note: The 81
jobs lost in Santa Clara are not included in this report because it’s unclear they were
related to this offshoring event.
Isola Group is closing its Elk Grove manufacturing location, which has 72 employees;
the cuts will be effective Dec. 28, 2015. The facility opened in 1998 and expanded in
2004 to 44,000 sq. ft. It had formerly been owned by Polyclad Laminates Inc., which was
bought by Isola in 2006. Isola designs, develops and sells advanced laminate materials
that are used in the fabrication of advanced printed circuit boards. The laminates are the
copper-clad framework to which the micro-electronics, circuits and connections are
attached. Including Elk Grove, Isola has three locations in the U.S. and a total of 10
locations globally.218
ClosetMaid, a subsidiary of Emerson Electric Co., furloughed employees and on-site
leased workers because it shifted manufacturing of wooden closets to Reynosa, Mexico
(across the border from McAllen, Texas).219 The DOL didn’t identify the number of jobs
lost, but the California EDD indicated the number of employees furloughed totaled 71 in
an event it categorized as “Closure Permanent.”220
Farmers Insurance will close in Chino and relocate its print and document management
work to Grand Rapids. The transition isn’t expected to be completed until 2018. The
number of jobs affected is unknown.221
Kallisto Greenhouses closed in response to California’s business environment.
According to owner Kathye Rietkerk, “We owned and operated Kallisto Greenhouses,
Inc. with a peak of 36 employees shipping tropical indoor plants to the 10 western states
and Calgary Canada. We opened our doors in 1977 and sold the land and closed the
business this past summer.” Contributing to the decision to close, she cited “CARB
regulations, requiring heaters that do not work, and the necessity to replace our delivery
truck, combined with the increase in minimum wage and the addition of paid sick leave.
But the nail in the coffin was OSHA. We got a letter saying we had the choice to invite in
a consultation service to correct our manuals or be visited by an inspector. Well of
course, we invited the consultation service which resulted in six months of staff time to
implement corrections to manuals we had, but were deemed not exact enough to suit the
inspector. The day he left we called back the developers who had been seeking to buy
our property for yet another distribution warehouse to serve ‘products imported from
abroad.’” Kallisto Greenhouses have had loyal employees –76% have more than 20
years of service. The company offered health insurance since the early 1980’s, three
weeks vacation to long-term employees, seven paid holidays and flexible working
conditions. “Yet, we were forced to make decisions we never dreamed of because of the
incredibly hostile small business environment in California,” said Rietkerk. “It is sad that
government programs that are ideally intended to protect employees can result in
complete job loss instead.222 For an overhead Google photo of the size of the company’s
former facility at 9988 Redwood Ave., Fontana, see here.
61
San
Bernardino
↔ Fontana
San
Bernardino
↔ Mountain
Pass
Mexico > Tijuana
NJR
N$R
NQF
China >
Unknown
474
N$R
NQF
San
Bernardino
↔ Mountain
Pass
San
Bernardino
↔ Ontario
San
Bernardino
↔ Ontario
Estonia >
Unknown
San
Bernardino
↔ Ontario
Nevada >
Minden
#MA
#OSO
#REL
Parker Hannifin Corp. – See the 2015 entry for Anaheim for this company for more
information about this event.
#OSO
#REL
Molycorp Inc. Because it is experiencing depressed pricing for its rare earth minerals,
the company needed to select one of its three operations where it will suspend
production. The facilities are located in in China, Estonia and California – and the one
selected is in California. Colorado-based Molycorp will transition the California facility to
“care and maintenance” mode by Oct. 20, 2015. The facility, machinery and equipment
will be maintained for safety purposes and to meet regulatory needs. Molycorp facilities in
Estonia and China will continue to supply customers of the company’s rare earth oxide
materials.223 A WARN Notice indicated that 474 employees will be furloughed.224
Molycorp Inc. – See the 2015 entry for China for this company for more information
about this event.
#OSO
#REL
Nebraska >
Fremont
NJR
N$R
NQF
Minnesota >
Cannon Falls
NJR
N$R
NQF
#MA
#PL
}REL
NQF
#MA
#PL
}REL
150
$3.8
}REL
AmesburyTruth has relocated its Bandlock Couplers business to the company’s
Nebraska operations. For more information, see the 2015 entry for the company’s
Cannon Falls event.225
AmesburyTruth, which makes window and door components, agreed to sell its nonfenestration custom extrusion business to VIP Rubber and Plastic Products. In so doing
AmesburyTruth will retain the fenestration (arrangement of windows and doors) custom
extrusion business and the Bandlock Couplers business. Its current facility has
approximately 50 employees. AmesburyTruth will retain two employees to further develop
its fenestration business while it consolidates and relocates certain operations to Cannon
Falls. Significant investments have been made in the Cannon Falls facility to satisfy
future demand.226
VIP Rubber Co., Inc., a rubber and plastics manufacturer, will move its plastic extrusion
division to Nevada, creating up to 60 jobs within the first 12 months of operation. “Our
goal is to increase sales by 10 percent per year and we are on schedule to meet or
exceed that goal,” wrote Howard Vipperman, VIP Rubber president. “Over the next five
years we would expect to bring an additional 150 jobs to the Northern Nevada area.” The
capital investment will be $3.8 million in the facility, which is planned to be operational by
January 2016. Note: Plastic extrusion uses a lot of energy and utility rates are less
expensive in Nevada than in California. If the move goes well, the company will consider
moving its other divisions to Minden or surrounding areas. The company also has aircraft,
sheet goods, molding and fabrication divisions. “It is expected that approximately 90
percent of the product sale in the first five years will be outside the state of Nevada with
the potential for increased exports,” Vipperman said.227 The manufacturer will be doing all
sorts of work, including making bumpers for shopping carts and step-pads for vehicles.228
The event follows VIP’s acquisition of Bandlock – the non-fenestration custom extrusion
division of AmesburyTruth. Founded in 1961, the company is a family owned and
operated business that manufactures molded and extruded rubber and plastic products
for automotive, aerospace, defense and other industries.229
62
San
Bernardino
↔ Rancho
Cucamonga
Georgia >
Atlanta
NJR
N$R
NQF
#CP
#HQ
}REL
San Benito
↔ Hollister
Mexico > Juarez
NJR
N$R
NQF
#MA
}OSO
}REL
San Diego ↔
Carlsbad
Unknown >
Unknown
N$R
NQF
#PB
}REL
San Diego ↔
Carlsbad
Canada >
Toronto
NJR
N$R
NQF
#ET
}OSO
}REL
San Diego ↔
Carlsbad
Washington >
Vancouver
NJR
N$R
NQF
#CP
#HQ
}REL
99
Kumho Tire USA, Inc. – The company’s announcement said that in order to optimize
efficiency it has relocated its corporate headquarters to Atlanta, nearer to its new Georgia
facilities – a factory in Macon and a distribution center in McDonough. The new Atlanta
headquarters will be located on famous Peachtree St.230 after some time spent in a
temporary facility.
MC Electronics, which offers full service assembly capability for harness, cable and
electro-mechanical assemblies, shifted some of the work performed in Hollister to Juarez,
Mexico in 2010231 – an event that went unnoticed and was not included in the 2010
findings in this report. In 2015, additional work was transferred to Mexico, according to
furloughed employees applying for unemployment and seeking assistance from the
America’s Job Center of California (AJCC)232 and a filing with the U.S. Department of
Labor.233
Work remains in Hollister, which also is the location of the company’s headquarters.
Alphatec Spine cut 99 jobs in Carlsbad.234 The action followed a company statement
that “Operational transformation [is] underway to significantly improve our underlying cost
structure and balance sheet by strategically outsourcing manufacturing and distribution –
estimating completion by end of 2015. Partnering with outsourced manufacturing and
distribution suppliers will allow us to repurpose cash into higher value activities such as
integrated design, faster product delivery cycle-times, and efficient distribution of our
products and instruments. We are confident in this approach as we’ve been successfully
using these partners to manufacture both our implants and instruments for several years,
including Arsenal Degen and Arsenal CBX. Expanding our relationship through this
outsourcing initiative will allow us to reach our operational transformation goals quickly
and efficiently.235
Legend3D, Inc. furloughed employees involved in visual effects for movie industry. The
workers provided conversion services of 2D movies to 3D and related VFX and VR work.
Employees reported to the Dept. of Labor that “This started in May 2015 when Toronto
office officially opened and will wrap in October of this year.” The DOL certified that the
shift of the work to Canada was competitive with the service supplied by the workers.236
Solatube Global Marketing, Inc., a licensee for Solatube Tubular Daylighting Devices in
Europe, Latin America, Central Asia and Middle East, will move its HQ from Carlsbad, to
its Vancouver, Wash. SGM President Brett Hanley said the move is a result of evaluating
business goals in light of the company’s values. “We asked ourselves how this move can
help our business, our team, and our ability to reach our goals for 2020 and beyond,”
said Hanley. “Washington and its neighbor, Oregon, are both known for their commitment
to the environment and sustainability, which is directly in-line with our corporate values.”
[Note: California is also known for its “commitment to the environment and
sustainability.”] “It’s our belief that we can change the world and connect people to nature
on a daily basis by offering innovative, sustainable solutions for everyday living,” states
Hanley. Other reasons for the move include the favorable business climate, proximity to
the Portland International airport with flights to Europe and Latin America, and tax
savings advantages for the business and employees. All employees were given the
option to move. The new headquarters will house current employees and provide room
for future expansion.237
63
San Diego ↔
Carlsbad
Florida > Palm
Beach Gardens
San Diego ↔
Chula Vista
Indiana >
Indianapolis
41
San Diego ↔
El Cajon
Florida >
Hollywood
25
San Diego ↔
El Cajon
Mexico > Tijuana
45
San Diego ↔
San Diego
San Diego ↔
San Diego
Georgia >
Atlanta
New York >
Schenectady
279
NJR
20
N$R
NQF
#DN
#HQ
#MA
#PB
}CLO
}REL
NQF
#DF
#EN
#RD
}REL
N$R
NQF
#AE
#MA
}REL
N$R
NQF
#MA
}OSO
}REL
N$R
NQF
$26.3
N$R
}UTN
3
#DO
#HQ
#SM
#SO
}REL
Zimmer Biomet Holdings will furlough 279 employees at the end of October due to the
closure of Zimmer’s Carlsbad dental headquarters, which also has manufacturing and
distribution functions. Zimmer acquired orthopedics company Biomet and the new
company’s dental headquarters will be consolidated into Biomet’s previous dental
headquarters in Florida instead of in California. Carlsbad’s distribution operations will also
be relocated to Palm Beach Gardens, while manufacturing will be transferred to other
company sites and outside suppliers. Zimmer Biomet’s dental business has roughly
doubled in size thanks to the merger.238
Raytheon Co., the aerospace and defense contracting company, will move jobs from
Chula Vista to Indianapolis to consolidate jobs in depot work such as systems
engineering, installation and upgrades and will take up to a year to complete. A small
number of employees will be retained in Chula Vista. “The move allows us to improve our
efficiency and competitiveness for our customers,” said a company statement. The Chula
Vista facility specializes in intelligence, information and services.239 A WARN Notice
indicates that 41 workers for Raytheon Technical Services Co. LLC in Chula Vista were
to be separated from employment in October, 2015.240 The company will expand its
Indianapolis operations, creating 250 jobs to develop national security technology for
military, security and intelligence interests. The expansion represents a 25% increase in
employees there.241 The existing work force is 912 in Indianapolis. Raytheon plans to
invest about $26.3 million in the Indianapolis facility.242
Luchner Tool Engineering has been acquired by Aerospace Precision, an FAA/EASA
repair facility with operations in Hollywood, Florida. Now, Aerospace Precision is moving
Luchner’s tooling, and GSE manufacturing operations from California to Florida. The
move will create up to 25 new jobs in Hollywood, where the company already has 40
employees. The combined company provides component repair and overhaul services
for accessories, hydraulics, electro-mechanical, and pneumatic systems, including
wheels and brakes for manufacturers – e.g., Boeing, Airbus, Embraer, Pratt & Whitney,
General Electric and others.243 The company is headquartered in Federal Way,
Washington.
Brantner & Associates, Inc., subsidiary TE Connectivity, will furlough 45 employees
involved in the production of electrical and fiber optic connectors and cable systems
because such manufacturing will move to the company’s facility in Tijuana.244
Complexions Contemporary Ballet – See the 2015 Los Angeles entry for this
organization for more information about this event.
Furlocity Inc., a pet accommodations online booking platform, launched in San Diego in
2012 and completed a $1.2 million private offering in December 2014.245 In April, 2015
the company said it’s moving its headquarters to Albany. CEO Denise Fernandez
Pallozzi, a company director and Albany resident, was recently appointed CEO, which is
partly why the company has relocated. But Furlocity also was attracted to the opportunity
to partner with Rensselaer Polytechnic Institute in Troy. She stated, “For Furlocity as a
whole, we’re going to be able to grow. We’re going to be able to access some software
engineers, which is one of our primary hiring areas, as well as social media, marketing
and sales.” [Along with the reasons cited, it’s conceivable that the location decision was
influenced by lower business and employee costs and fewer regulations leading to a
64
San Diego ↔
San Diego
North Dakota >
Grand Forks
San Diego ↔
San Diego
Arizona >
Tucson
San Diego ↔
San Diego
Ohio > West
Carrollton
NJR
40
195
$2.5
N$R
$45
19.4
NQF
160
#AE
#SB
}CDO
#PB
#RD
#SB
}CDO
#MA
#PB
}CDO
reduction in expenses in upstate New York – which isn’t applicable for New York City.]
Pallozzi hopes that by 2016 the company will grow to about 20 employees. Five San
Diego employees will telecommute.246 Furlocity signed an 8-year lease for a 3,000-sq. ft.
space in Schenectady’s technology accelerator; it has the option to expand there when it
grows out of its first space.247
General Atomics Aeronautical Systems Inc., a manufacturer of Remotely Piloted
Aircraft (RPA) systems, radars, and electro-optic and related mission systems solutions,
will open a RPA Training Academy in North Dakota. GA-ASI has signed a 10-year lease;
flight crew training will commence in early 2016, and the company expects to welcome its
first Foreign Military Sales (FMS) customers shortly thereafter. Linden P. Blue, CEO, GAASI, said, “The Training Academy will complement our customers’ ... training capabilities
and fill the growing need across our RPA enterprise to address the pilot shortage.”
Operating year-round, the Training Academy will offer courses using U.S. Governmentapproved curricula; the Academy also may conduct RPA airspace integration systems
testing. Frank W. Pace, president, Aircraft Systems, GA-ASI, said, “Uncongested skies,
an optimal training range, and strong support for continued RPA development from local,
state, and federal government representatives ... provide a great environment to support
our customers’ training requirements.” Until now, GA-ASI has trained company and
customer aircrews at facilities near Palmdale, California. The North Dakota Training
Academy is an expansion. GA-ASI will operate from a five-and-a-half acre location within
the Grand Sky business park.248 The $2.5 million, 19,400 sq. ft. academy will train around
100 pilots and crew members a year from the U.S. and abroad. CEO Linden Blue noted
that potential foreign customers include the United Kingdom, Germany, France and
Spain. Two of GA-ASI’s products are the Predator and Reaper series of unmanned
aircraft. Both aircraft models are stationed at the Grand Forks Air Force Base and are
used by the U.S. Customs and Border Protection and North Dakota Air National Guard.
“At this point, I’m really happy that we chose North Dakota,” Blue said. “I think we have a
significant advantage in terms of the aviation focus, particularly an aviation-focused
workforce.” The company is the second tenant to break ground at the Grand Sky
complex. Northrop Grumman, which produces the Global Hawk unmanned aircraft series,
did so last month249 for a 36,000 sq. ft. facility that eventually will employ 100, possibly
more.250
LCMS Laboratories Inc. plans to open a high-complexity lab in Tucson’s Oro Valley,
which will utilize the latest mass spectrometry technologies and will create high-paying
jobs.251 It’s expected that up to 40 laboratory and administrative jobs will be created there
within a few years. The new unit will provide clinical diagnostics, support for contract
research organizations and diagnostic test development using the latest technologies.
The company was founded on the premise of having science support the practice of
medicine, primarily in high-complexity diagnostic testing. The facility fits in with Tucson’s
strategy to further boost the area’s diagnostics industry and provide services for
emerging companies.252
NuVasive, Inc. has selected a site in West Carrollton, Ohio as the location for the buildout of its new medical device facility dedicated to spinal implant and instrument
manufacturing. The company will invest approximately $45 million to build-out and equip
65
San Diego ↔
San Diego
Wyoming >
Laramie
50
San Diego ↔
San Diego
New York >
Buffalo
5
San Diego ↔
Solana
Beach
Massachusetts >
Boston
San
Francisco ↔
San
Francisco
Indiana >
Indianapolis
50
277
N$R
$0.1
N$R
$7.7
NQF
#MA
}CDO
NQF
#PB
#RD
}CDO
8
#SB
#SO
}CDO
12.5
#DO
#HQ
#SO
}REL
the new 160,000-sq. ft. facility, which is scheduled to begin production by year-end 2016.
The new facility is expected to employ about 300 full-time, high-tech positions, including
engineers and skilled machinists, as well as process development and validation
specialists who will work with R&D on product launches. The plant will house state-of-theart equipment, including about 100 computer numerical control (CNC) machine tools and
CMM inspection equipment, as well as clean-room operations.253 The Dayton Daily News
and Dayton Business Journal reported that the jobs “could have gone to Tennessee,
Texas or overseas.” No mention was made of California being in consideration.254
NuVasive plans to relocate 97 jobs from its Fairborn, Ohio, facility and add approximately
195 more jobs during the next few years – with an estimated payroll of $14.2 million by
2018.255
Tungsten Heavy Powder and Parts will relocate the operations of a manufacturing plant
in China to Laramie. The company indicated that the Laramie plant would produce
tungsten components for the military, industrial engineering and medical markets.
Tungsten CEO Joe Sery said he expected the facility to employ about 25 people to start,
mostly in manufacturing, and other positions would likely become available in middlemanagement and administration. Within three years, that number is expected to reach an
estimated 50 positions.256 After Sery looked into 13 locations in Wyoming, Laramie
emerged as his preferred choice.257 The company has been a supplier of tungsten and
moly products for military, industrial engineering, and medical markets worldwide for the
past 15 years.258
Zintera Corp., a company that uses an approximation of the biological human mind to
pursue solutions in healthcare, genomics and life sciences applications, will expand to
Buffalo.259
Seismic, a tech startup that helps sales and marketing teams operate more efficiently
using cloud-based services, plans to expand in Boston. The company intends to double
its headcount to about 50 by the end of the year and move to a new office with 8,000 sq.
ft., eight times the current space.260
Appirio Inc., a cloud services and enterprise crowdsourcing company, is moving its
headquarters from San Francisco and will invest $7.7 million in Indianapolis to build on its
continued growth in the area. Earlier in 2015, Appirio doubled its footprint to 25,000 sq. ft.
(12.5 reported here because 12.5 was reported in 2012 when the company opened in the
city). Appirio’s goal is to employ as many as 577 Hoosiers by 2020 (277 reported here
because 300 was reported in 2012 when the company opened in the city). Appirio invests
heavily in recruiting and hiring Indianapolis-area graduates. The company also
contributes to Indianapolis-area non-profits through its corporate philanthropy program,
Silver Lining. “The designation of Indianapolis as our headquarters reflects the office’s
important role as a global training center and recruiting hub as we look to support our
growing list of customers and partners,” said Appirio CEO Chris Barbin.261 The
company’s customers include Cardinal Health, Yahoo!, Starbucks, Facebook and IBM. 262
Although offices will remain in San Francisco, the event illustrates how when a company
establishes a “footprint” in a new community, it elects to move additional facilities to the
new location.
66
San
Francisco ↔
San
Francisco
Texas >
Westlake
500
San
Francisco ↔
San
Francisco
Indiana >
Indianapolis
167
San
Francisco ↔
San
Francisco
Colorado >
Denver
100
N$R
$3.2
N$R
1,200
#BF
#SB
}CDO
15
#DO
#HQ
#SB
#SO
}UTN
10
#DO
#EN
#RW
#IT
}CDO
Charles Schwab could open up a massive operations center on a corporate campus
planned adjacent to Circle T Ranch, a 2,500-acre mixed-use, master-planned
development in Westlake. The company is expected to buy 74 acres of land by the end
of the year. “We’re very interested in the Dallas area for future growth and have signed a
lease in the Westlake area that can accommodate up to 500 employees,” said a
company spokeswoman. The company signed a five-year lease for 130,000 square feet
of office space in Westlake. Schwab could build a five- to six-building campus totaling 1.2
million square feet of space in a multi-phase development, according to real estate
sources. The firm has been circling North Texas for more than a year, targeting the Lone
Star state as a prime spot for relocating a significant number of San Francisco-based
jobs. (The financial services firm already is in the midst of bringing up to 1,200 jobs to an
expanded facility in Austin and a new operations center in El Paso.) Charles Schwab is
also reportedly looking for a temporary office adjacent to the Westlake site to begin
building a North Texas operations center while its new campus is under construction.
Westlake Town Manager Tom Brymer said the city has been courting a project – called
Project Blizzard – for months, but he was unaware who the firm was. “The initial phase
for the first building is about 225,000 square feet and the development will be built in
phases for Project Blizzard,” Brymer said. “On one half of the site, they are planning to
put in an urban living component with some retail and other amenities, in part because
this is an important component of attracting their workforce.” If developed, the Circle T
Ranch could bring 750 to 850 luxury urban-style homes to the development with the 1.2
million square feet of corporate campus space. Brymer said, “The office portion of the
project is pretty straight forward and we’ve got to decide the urban living aspect of it.” He
added that Westlake has not offered Project Blizzard any economic incentives, as of yet,
for the massive operations facility. Companies are looking for college graduates and think
the Metroplex is an educational magnet with the growth of the University of North Texas,
Texas Christian University, the University of Texas at Dallas and at Arlington and
others.”263
Emarsys, a Vienna, Austria-based company, will locate its North American headquarters
in Indianapolis where it will spend $3.2 million on renovations, creating up to 167 new
jobs by 2020 – including marketing development, sales, customer support and
professional services jobs paying between $75,000 and $100,000. Emarsys sells digital
technology that allows firms to interact with customers using social media, targeted email,
mobile applications and websites. Emarsys is experiencing “intense demand” from
customers for more services. Customers include eBay, Toys R Us, Volvo, Sky and World
Shop Lufthansa. Emarsys has a handful of employees in California, and decided to settle
in Indianapolis after considering San Francisco. In the last decade, 17 digital marketing
firms in the Indianapolis region have either gone public or been acquired, in deals worth a
total of about $5 billion, according to TechPoint, Indiana’s technology growth initiative.264
The global provider of cloud marketing software will lease 15,000 sq. ft. of space.265
FiveStars, a customer loyalty and marketing company for small and medium-sized
businesses, secured 10,000 sq. ft. of office space in Denver with plans to hire more than
100 full-time employees by the end of 2015. After an extensive search evaluating techfriendly cities, Denver became the choice due to its quality of life, affordable cost of living,
and booming tech-scene. Victor Ho, CEO and Co-Founder of FiveStars, said, “We
67
San
Francisco ↔
San
Francisco
Nevada > Reno
San
Francisco ↔
San
Francisco
Oregon >
Portland
San
Francisco ↔
San
Francisco
Ohio > Orrville
200
N$R
NQF
#DO
#PB
#SB
}CDO
50
N$R
NQF
#PF
#SO
}REL
400
$31
NQF
#FP
}REL
wanted to pick a location where employees would have an excellent quality of life and
we’re ecstatic that we found our second home in Colorado.” [Along with the reasons
cited, it’s conceivable that the location decision was influenced by lower business and
employee costs, taxes and fewer regulations in Colorado leading to a reduction in
expenses by between 20% and 35%.] Much of the hiring will occur on the sales front.
The company was founded in 2011 and has raised $45 million from investors. 266
Grand Rounds selected Reno to expand. It’s a healthcare technology business that
centers around guiding patients to the right physicians – and they have a worldwide
network of physicians. The company walks patients step-by-step through the process of
getting the best treatment. CEO and co-founder Owen Tripp says they’re looking to hire
about 200 employees over the next few years, which will bring in between $5 million and
$8 million in annual wages to Reno. The company is interested in people who have
medical backgrounds including nurse practitioners, nurse assistants and medical
assistants.267 The company, whose service covers 1.8 million Americans, calls its South
Reno facility the Sierra Patient Center. “I’m betting big on this place,” said Tripp, who’s
already eyeing a potential expansion of its new facility. “I think we got in early on
something that a lot of companies in the Bay Area are going to figure out soon – that
Reno is a great place to do business and visit.”268 The company is relying heavily on
graduates from the University of Nevada, Reno.269 In August, the company raised $55
million in third round funding, bringing Grand Rounds’ total funding to $106 million. The
company plans to use the funds to build out its technology, care team and analytics
platform in response to increased employer demand. The company was previously
known as ConsultingMD.270
InDinero, a startup that provides accounting and other back-office services to small
businesses and entrepreneurs, will make Portland its “primary office” and hire 50 people
there. While InDinero will retain its San Francisco HQ, CEO Jessica Mah hopes the
center of gravity will gradually move north and hopes to make Portland the headquarters.
“I wanted to be in a place where I could be, potentially, one of the top startups,” said
Mah. Initially focused on accounting software for startups, InDinero now offers more
hands-on help with accounting, payroll and taxes for a wider range of small
organizations. InDinero also has offices in New York and the Philippines. The company
has raised about $10 million in backing. In Portland, InDinero will hire a range of
positions including bookkeepers, accountants, software engineers and full-time
marketers. The company said it received no public incentives to help with the new
Portland office. In San Francisco, Mah said, InDinero competes with Facebook, Google
and other young companies for employees. So she looked for a city where the
competition was less intense but the appeal to entrepreneurs was strong.271
J.M. Smucker Co. will move hundreds of jobs, many San Francisco-based, to Ohio. The
food conglomerate, which acquired San Francisco-based Big Heart Pet Brands in March
2015, plans to relocate 400 Big Heart Pet Brand jobs, and the $40 million annual payroll
that comes with them, to Smucker’s Orrville, Ohio, headquarters. The company will
remodel an existing facility in Orrville into offices in order to accommodate the 400 new
positions. Also, Smucker may build a new R&D center in Orrville for a reported $31
million. California was also courting J.M. Smucker for the R&D project, reports the
68
San
Francisco ↔
San
Francisco
Missouri >
Kansas City
275
San
Francisco ↔
San
Francisco
Tennessee >
Nashville
380
San
Francisco ↔
San
Francisco
Arizona >
Scottsdale
160
San
Francisco ↔
Texas > Houston
NJR
N$R
$5.1
45
#PF
}REL
}UTN
38
#DO
#SB
#TP
}CDO
N$R
NQF
#SO
#SB
}CDO
N$R
NQF
#HQ
#PB
}REL
Cleveland Plain Dealer. Big Heart Pet Brands manufactures popular pet food and treat
brands, such as 9Lives, Milk-Bone, Natural Balance and others.272
Littler Mendelson PC, one of the nation’s largest law firms, founded in 1944 in San
Francisco, is relocating 275 jobs to Missouri. Littler is the largest global employment and
labor law firm representing management, with more than 1,000 attorneys throughout 60
offices in 10 countries. “We looked at virtually every major U.S. city in the Central and
Mountain time zones, as well as San Francisco,” said Tom Bender, co-president and comanaging partner. “It was an exhaustive process. What drove it a lot was client
service.273 [Along with the reasons cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Kansas
leading to a reduction in expenses possibly by 20% to 35%.]
Lyft, Inc. will grow its new customer service headquarters in Nashville, giving Music
City’s tech industry a big name to add to its roster. Lyft will invest $5.1 million in the new
headquarters, which is expected to create 380 jobs. The company plans to hire the first
100 Nashville employees by the end of 2015. Lyft COO Rex Tibbens said, “Our history in
Nashville coupled with our admiration for the community is why we’re so excited to make
downtown Nashville the home of our newest Lyft office, and will be investing in our
growth there for years to come.” Lyft wrote, “This is just the beginning of a long,
prosperous, and rewarding partnership.” In addition to cost considerations, Nashville’s
attitude toward ride-sharing companies likely helped attract Lyft. While some places have
tried to throw up roadblocks, Nashville welcomed ride-sharing companies. Nashville
International Airport claims to be the first U.S. airport to include ride-sharing companies in
its ground-transportation policy.274 Lyft said in a statement to TechCrunch, “We chose
Nashville as the home of our newest office because it is a great city with a lower cost of
living and a growing talent pool.” The move is part of a growing trend in Silicon Valley to
find cheaper space and lower overhead elsewhere. Average office rent in San Francisco
nearly doubled from $30 in 2013 to $70 per sq. ft. today. Compare that to the $18-$22
average per sq. ft. rental price in downtown Nashville.275 Lyft will lease 38,000 sq. ft. of
space.276
Revel Systems expanded operations into Arizona through a new Scottsdale office where
it will create 160 new jobs during the next three years. The focus will be on the Revel
iPad point-of-sale platform, which is based on the company’s software. “Revel is building
a world-class sales team here in Scottsdale, and we cannot wait to get started,” said VPSales, Bobby Marhamat. [Along with finding qualified personnel, it’s conceivable that the
location decision was influenced by lower business and employee costs, taxes and fewer
regulations in Arizona leading to a 20% to 35% reduction in expenses.] Revel Systems
iPad POS was founded in 2010 in San Francisco.277 Note: The company opened an IT
division in Lithuania. It’s unclear if the work to be done there would substitute for work in
the United States along with a focus to serve the European Union. Because of
vagueness, Lithuania is not listed as an event in this report. Whatever the circumstances,
the company admits that it could eventually have 100 employees in Lithuania. 278
Ruga Corp. is a biopharmaceutical company that focuses on targeted cancer treatments,
with two clinical candidates in its pipeline, plans to relocate to Houston. The company has
69
San
Francisco
San
Francisco ↔
San
Francisco
Illinois > Chicago
1,000
N$R
N$R
San
Francisco ↔
San
Francisco
Georgia >
Atlanta
300
San
Francisco ↔
San
Francisco
Missouri > St.
Louis
200
San
Francisco ↔
San
Francisco
Colorado >
Denver
800
San
Francisco ↔
San
Francisco
Pennsylvania >
Pittsburgh
400
#DO
#EN
#IT
#SO
}CDO
50
#DO
#EN
#IT
#SB
#SO
}CDO
17
#BF
#PF
}CDO
N$R
35
#EN
#GR
#SB
}CDO
N$R
53
#CP
#DO
#EC
#EN
#RD
#SO
}CDO
$0.8
NQF
two California-based investors – Astellas Venture Management and Stanford
Management Group – and Australia-based Brandon Capital.279
Salesforce.com Inc. has plans to expand its Chicago workforce to 1,000, making it one
of the larger tech companies in the city. A Salesforce spokeswoman would not confirm
how many employees currently work at the company’s office, but World Business
Chicago indicated there are more than 500 employees there.280 Normally an expansion
that was related to an earlier merger would be excluded from this report, but the job
growth figure is so substantial that it’s clear Salesforce has elected to expand the facility
in a major way.
Salesforce.com Inc. will double its space in Atlanta to more than 50,000 sq. ft. It also
plans to add more than 300 jobs to the 250 it already has in the location as a result of
acquiring Pardot, a B2B e-mail marketing company. Normally, a merger that results in
out-of-state operations might not warrant a listing in this report. However, the significant
expansions in employee count and space indicate a major commitment to Atlanta.
Apparently, the expansion includes engineering, sales and support jobs, including
customer service. Jon Hallett an investor in several cloud software companies, said,
“There is more talent available at a lower price point than [in Silicon] Valley,” Engineers in
Atlanta cost about 40 percent less than in New York and 50 percent less than in Silicon
Valley, Hallett said.281
Square, Inc. will open a new St. Louis office, where it plans to hire more than 40 full-time
employees and grow to more than 200 over the next five years. “St. Louis is an important
part of Square’s history,” said Jack Dorsey, CEO. “It’s an incredible city and my
hometown, and we’re excited to further invest in the community.” Jim McKelvey, cofounder of Square, said, “There’s talent all over the country, not just on the coasts.” St.
Louis is a prime location for Square’s new office because of its wealth of talent from top
universities, research centers, and training programs. Employees there will span multiple
job functions, including Compliance Operations, Customer Support, IT Tech, Recruiting,
and Office Experience. Square is a technology company that provides tools for every part
of running a business, from accepting credit cards and tracking inventory, to real-time
analytics and invoicing and financial and marketing services. Square also has offices
Canada, Japan, and Australia.282 Investment in the new St. Louis facility will total
$850,000 for 17,000-sq. ft. of office space.283
Sunrun, a residential solar company, announced Denver as the location for its newest
corporate office. The company expects to open there by the end of 2015 and hire up to
800 employees within a few years. It will help advance Colorado’s cleantech industry by
offering employment opportunities in operations, project planning and design
engineering. Sunrun’s new office expands the company’s geographic footprint nationwide
to support consumer demand for home solar into 2016.284 Sunrun, which went public in a
$251 million offering in August, leased about 35,000 sq. ft. and plans to include a variety
of positions project planning, design engineering and customer care.285
Uber Technologies, Inc. entered into a strategic partnership with Carnegie Mellon
University (CMU) to create the Uber Advanced Technologies Center (ATC) in Pittsburgh
to develop autonomous cars. It also will provide a forum for Uber technology leaders to
work closely with CMU faculty, staff, and students – both on campus and at CMU’s
70
#TP
San
Francisco ↔
San
Francisco
Arizona >
Phoenix
300
San
Francisco ↔
San
Francisco
Colorado >
Denver
1,000
N$R
$40
NQF
40
#CP
#DO
#EN
#SB
#SO
#TP
}CDO
#BF
#DO
#IT
#PF
#SB
#SO
}CDO
National Robotics Engineering Center – to do R&D primarily in mapping, vehicle safety
and autonomy technology. The agreement includes Uber funding for faculty chairs and
graduate fellowships. Andrew Moore, Dean of CMU’s School of Computer Science, said
he is looking forward to “working together on real-world applications, which offer very
interesting new challenges at the intersections of technology, mobility, and human
interactions.”286 TechCrunch reported: “In the past, Uber CEO Travis Kalanick has said
he would replace human drivers with self-driving cars. The decision to run the facility in
Pittsburgh makes perfect sense, given the proximity to CMU and the potential secrecy
afforded by moving research out of Silicon Valley.”287 The center primarily will house
Uber employees, many with ties to CMU. 288 For the center, Uber leased a 53,000-sq. ft.
facility in the city’s Lawrenceville neighborhood not only because of the National Robotics
Engineering Center, but also because of the clustering of robotics companies such as
Carnegie Robotics and RedZone Robotics.289 At its opening in April, 2016, Uber expects
400 people to be in its Advanced Technologies Center.290 Uber is working to add a
second floor to the 53,000-square-foot building for the new facility, nearly doubling its
size, and has also leased neighboring property to use as staff parking.291
Uber Technologies, Inc. opened its Center for Excellence in Phoenix, with the company
praising the area’s talent pool and support of technology and innovation. The support
center, which will serve as a 24-hour aid for drivers and riders, will have 130 positions
initially and 300 by the end of the year, serving U.S. customers and Uber users
worldwide. Uber operates in three Arizona cities -- Phoenix, Tucson and Flagstaff -- and
will be entering Yuma. Jobs include community support positions, data analysts and
managers and supervisors. The center also will have workers focusing on improving
other parts of the company, in areas such as information technology, infrastructure
systems, processes for support and tools for professional development.292 This is the
second Uber office in Phoenix. The first, a few blocks away from the Center for
Excellence, already employs 100.293 Reportedly, the company is not using incentives
available from the Arizona Commerce Authority.294
ZenPayroll, a cloud-based payroll system, has opened a new office in Denver as it
expands its business and company plans to hire more than 100 full-time employees there
immediately and 1,000 people in the next few years. The company launched in 2012 and
currently processes billions of dollars in annual payroll for tens of thousands of small
businesses nationwide. The Denver office will be the main hub for its customer service
teams. The announcement came after a $60 million round of funding led by Google
Capital and with participation from Emergence Capital Partners, Ribbit Capital, Thiel
Capital, and others, as well as existing investors including General Catalyst, Kleiner
Perkins Caufield & Byers, and Google Ventures. Investors also include CEOs of Yelp,
Dropbox, Evernote, Instagram, Eventbrite, WordPress, Box, and Stripe, among others.295
The Denver Post reported a higher hiring figure, citing plans to hire 1,750 workers in the
next eight years. ZenPayroll is in lease negotiations for up to 50,000 sq. ft. of space. Jobs
available immediately in Denver include customer service, engineering and human
resources positions. As ZenPayroll ramps up its hiring, the positions in Denver will span
every job function.296 Postings in late July are in IT, Engineering and compliance.
71
101
N$R
NQF
#EC
#MA
}CLO
}DSP
Nevada > Reno
10
N$R
NQF
#CP
#DN
}REL
}UTN
San Mateo ↔
Belmont
Nevada >
Dayton
70
N$R
NQF
#HQ
#MA
#PL
}CLO
}REL
San Mateo ↔
Redwood
City
Arizona >
Phoenix
50
N$R
NQF
#DO
#SO
}CDO
San Joaquin
↔ Stockton
Unknown >
Dispersed
San Mateo ↔
Belmont
ASCO Power Technologies will permanently close its plant and move production to
unknown other locations, putting 101 people out of work. The subsidiary of Emerson
Electric Co. manufactures electric power control systems for industrial applications,
including customers in health care, financial and telecommunications. The closure, which
is part of a decision to consolidate operations for power transfer and control technologies,
was expected to be completed by Sept. 30, 2015.297
Meri Meri, which designs and distributes party supplies, stationery, greeting cards and
gift items worldwide, is opening a new distribution center in Reno. The company is
headquartered in the San Francisco Bay area and operates a European sales and design
office in England. “Meri Meri outgrew its current distribution facility in Silicon Valley a few
years ago. In looking at options that included many different parts of California as well as
Las Vegas and Reno, we decided on moving our distribution center to Reno to realize a
significant cost savings over all of the sites in California,” said Jeff Schalk, CEO. “Some
of our employees plan to make the move to Reno along with our new facility, motivated
by a better standard of living compared to the Bay Area.”298
Peterson Products is moving it headquarters and manufacturing facility to Dayton,
Nevada where it plans to create up to 70 jobs. Peterson Products is a family owned,
reinforced plastic composite manufacturer that has been in business for more than 72
years. The company specializes in polyester laminates, epoxy laminates, phenolic
laminates, carbon fiber laminates, and aramid laminates and can create custom molds
and patterns. Peterson Products supplies parts to many industries including the
transportation, electronics, architectural, marine, entertainment and medical industries.
“Northern Nevada has a quality of life that is simply unachievable in the Bay Area
between the high cost, congestion and crime,” said Todd Peterson, Owner and President
of Peterson Products. “I chose Nevada because the regulatory environment and labor
market are much better.” The company has 30 employees that have been with the firm
20 years or more and expects around 30 of its current employees to move with the
company. Peterson Products will be hiring up to 40 employees locally and looks to begin
production in December 2015.299
Gainsight Inc. is opening its corporate marketing headquarters in Phoenix, days after
receiving $50 million in Series D funding. Anthony Kennada, vice president of Gainsight,
called the pick a “no-brainer.” “We chose downtown because we wanted to be in the
middle of what we see as the place for ‘Generation 3’ technology companies. The
company, which creates applications to track information from CRM applications and
other data sources to provide business intelligence, considers itself among the next
generation of technology companies. The company is staffing up with marketing and
account management team members; initial year hires will be around 50. “Every role in
this company has an equity package,” Kennada said. He said the office will not be a call
center. Gainsight also is opening its first international office, and global marketing efforts
will be supported in Phoenix. The company doubled its book value to $400 million since
last year. There are no state incentives in the first phase of the Gainsight deal. A drawing
factor for the company’s decision was that it had a key hire who didn’t want to leave the
region.300
72
San Mateo ↔
Redwood
City
Texas > Cedar
Park
San Mateo ↔
Redwood
City
Texas > Austin
San Mateo ↔
San Carlos
Texas >
Marshall
25
N$R
San Mateo ↔
San Mateo
Ohio >
Cleveland
25
N$R
155
NJR
$5
N$R
25
#DO
#HQ
}REL
560
#SB
#SO
}CDO
NQF
#EN
#HQ
#SO
}REL
NQF
#PF
#SO
}CDO
LiveOps, a cloud contact center and customer service solutions provider, will move its
corporate headquarters to Texas, replacing the Redwood City HQ. Relocation should be
complete by Sept. 1, 2015. CEO Vasili Triant said, “Texas has become a respected
international technology hub and maintains a vibrant community of technology talent in
the Cedar Park area. We believe that this new location not only supports our
organizational plans, but that it also affords our valued staff a family-oriented environment
with a greatly reduced cost of living.” [Along with the reasons cited, it’s conceivable that
the location decision was influenced by lower business and employee costs, taxes and
fewer regulations in Texas leading to a reduction in expenses by between 20% and
35%.] All of the 80 Redwood City employees were offered positions at the Texas location
or at a new Silicon Valley satellite office. LiveOps plans to hire 155 new employees in
Texas over the next three years. LiveOps will maintain its Ohio and Arizona facilities as
well as offices in Australia, Canada, the United Kingdom and New Zealand. With more
than 14 years of cloud experience, LiveOps supports a wide range of industries, including
financial, health care, insurance, retail and high tech. A new, 25,000 sq. ft. facility will be
built in Cedar Park,301 where the company will make a $5 million capital investment.302
Oracle Corp. will build a new corporate campus on 27 acres in Austin where it plans to
grow its workforce by 50% over the next few years. The move expands the presence of
another rapidly growing California-based technology giant in Central Texas, as
companies including Apple Inc., Google and Facebook aggressively ramp up their
workforces. In addition to its new 560,000-sq. ft. campus, the deal also includes an
adjacent 295-unit luxury apartment complex that will be a housing option for Oracle
employees. Scott Armour, senior VP of Oracle Direct, the firm’s cloud sales organization,
said, “Our state-of-the-art campus will be designed to inspire, support and attract top
talent – with a special focus on the needs of millennials.” Jobs at the campus will be
primarily sales-oriented, lead qualification, prospecting and technical support.303 Oracle is
the second largest software company in the world.304
SEVEN Networks, which develops mobile device management and optimization
software, is relocating its headquarters to Marshall, Texas. The company selected
Marshall for multiple reasons, one of the most important of which was the local talent and
community of future professionals provided by East Texas Baptist University and Texas
State Technical College. The company plans to hire up to 25 full-time staff, including five
to seven software engineers; its software has been used on more than 100 million mobile
devices and the company has more than four hundred patents and patents pending. 305
The company, founded in 2000, is privately held and has R&D centers in California and
Finland. Dr. Ross Bott, President and CEO, said that if SEVEN can show success in this
region, there’s a chance for more high-tech companies to make their homes in East
Texas. “I think the momentum can shift back to people coming back here because they
know it’s a good place to live,” Bott said. “They just need to find those high tech jobs.”306
BrightEdge, a Silicon Valley-based software company, plans to build a sales office in
downtown Cleveland that is expected to have 25 to 50 employees in the next six months
(from November 2015). Brad Mattick, VP of marketing and products, said Cleveland is
attractive for many reasons including the talent pool, quality universities, transportation
ease and inexpensive downtown real estate. BrightEdge clients include both small, mid-
73
San Mateo ↔
San Mateo
Utah > Salt Lake
City
4,000
N$R
NQF
#HQ
}CDO
NJR
N$R
NQF
#PF
}REL
#MA
#PB
#RD
}REL
Utah > Draper
Santa
Barbara ↔
Santa
Barbara
Georgia >
Atlanta
Santa Clara
↔ Campbell
Tennessee >
Chattanooga
40
N$R
50
size companies and major corporations such as Microsoft and Home Depot. “We thought
a lot about how we’re going to grow and scale our business. Silicon Valley is not a great
place to build a sales force. We looked at a number of locations and Cleveland stood out
as the clear choice for BrightEdge,” he said. BrightEdge is a seven-year-old private
company with sales of about $50 million, has about 200 employees in San Mateo and
about another 100 worldwide. BrightEdge is among companies worldwide that are
benefiting from larger marketing budgets being spent on content marketing.307
SolarCity, a solar power provider, plans to open a regional corporate headquarters in
Utah that could create 4,000 jobs and $94 million in capital investment. Upon completion,
its new facility will house its regional corporate headquarters and support functions
including human resources, finance, legal, accounting, marketing and sales. “We’ve
chosen Utah as a regional headquarters because of its educated workforce and
affordable cost of living for those in the professional roles we will create in the Beehive
State,” Brendon Merkley, executive vice president of customer operations for SolarCity,
said. If SolarCity generates a minimum of 4,500 jobs and meets additional criteria, the
firm may earn certain tax credits.308 The company is hiring at a temporary location initially
as it scouts for a location for a large corporate campus. SolarCity expects to create
thousands of new jobs over the next ten years, primarily in professional services
functions such as accounting, finance, human resources, legal, marketing and sales
support. The company’s news release said, “In addition to an educated talent pool and
favorable economic conditions, Utah was ranked #1 in Forbes Magazine’s annual The
Best States for Business Study in 2014. SolarCity also chose the Beehive State for the
high quality of life and year-round outdoor sports culture.”309 Also, SolarCity has opened
a new corporate office in Draper, Utah. Since opening its downtown Salt Lake City
corporate office earlier this summer, SolarCity has hired 220 employees in Utah and
expects to create thousands of new jobs over the next ten years.310
Select Family of Staffing Companies, one of the 10 largest staffing firms in the nation,
plans to merge with EmployBridge, a staffing company based in Atlanta. The merger
comes less than a year after Select restructured itself after declaring Chapter 11
bankruptcy; it will permanently relocate the company’s headquarters to Atlanta. Both
firms will continue to operate under their brand names. The company stated that some
operations will remain in Santa Barbara.311 [In addition to merger-related efficiencies, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Georgia leading to a reduction in expenses by
between 20% and 35%.]
Fillauer, the largest orthotics and prosthetics manufacturer in the U.S., will relocate a
division to Chattanooga as the company embarks on one of the biggest expansions in its
101-year history. Fillauer will bolster its workforce there by more than a third, creating up
to 40 new jobs. Also, the company will add 50,000 sq. ft. of space in a multimillion-dollar
project where it will manufacture prosthetic hooks and an innovative ankle-foot product
now made in California. New opportunities involve 3-D printing of some of its products,
which is seen as saving both time and money. The new site also will house R&D. “It just
makes sense,” Fillauer President Dennis Williams said. Consolidating manufacturing in
Chattanooga will help reduce costs312 [perhaps by between 20% and 35%].
74
90
Santa Clara
↔ Campbell
Ohio >
Columbus
Santa Clara
↔ Cupertino
Arizona > Mesa
Santa Clara
↔ Cupertino
Oregon >
Prineville
Santa Clara
↔ Cupertino
Texas > Dallas
200
Santa Clara
↔ Menlo
Park
Washington >
Seattle
800
150
NJR
N$R
NQF
#DO
#SO
}CDO
$2,000
1,300
#DO
#EN
#IT
#RW
}CDO
$500
338
#DC
#DO
#IT
#RW
}CDO
#DO
#HQ
#IT
#SO
}UTN
#DO
#EN
#GA
#IT
#SO
#SM
}CDO
$0.5
N$R
13.4
274
Saama Technologies, Inc., a Silicon Valley data solutions company, announced in June
that it was exploring an expansion in the Columbus region. The push followed Saama’s
announcement of $35 million in funding.313 The company said that with a significant
number of positions to fill, it needed to expand in a location that provides an abundance
of high-quality data analytics talent. [Along with the reason cited, it’s conceivable that the
location decision was influenced by lower business and employee costs, taxes and fewer
regulations in Ohio leading to a reduction in expenses by between 20% and 35%.]
Saama recently invested as a member of the Data Analytics Cluster at Ohio State’s
Fisher College of Business.314 The company expects to hire 90 full-time employees
generating $7.2 million in annual payroll over the next three years, while retaining five
positions, which already existed in Worthington.315
Apple Inc. will establish a command center for its global data networks in Mesa,
promising to invest $2 billion over 10 years and create 150 full-time Apple jobs. As part of
the deal, Apple is expected to build and finance solar projects that provide enough
energy to power more than 14,000 Arizona homes.316 The facility will be more than a data
center – it will oversee other remote and co-located data centers Apple uses across the
country. The Phoenix Business Journal reported, “The mission-critical role of a command
center vs. a data center was confirmed by Arnold Maltz, an associate professor of supply
chain management at the W.P. Carey School of Business at Arizona State University....
‘A command center is going to be staffed by Apple employees rather than contractors,’
he said. ‘It’s likely that a higher-level management team will be in place, perhaps at the
vice president level.’”317 Apple will move into a 1.3 million sq. ft. building.318 [Note that
data centers use significant amounts of electricity and such costs are lower in Arizona
than in California.]
Apple is expanding its Prineville data center by building a second 338,000-sq. ft.
facility.319 This will double current capacity [Note that data centers use significant
amounts of electricity and such costs are lower in Oregon than in California.]
COMPAREX, a global license solution provider and IT services firm, established a new
headquarters in Dallas where it plans to hire up to 200 employees in the end of 2015. It is
outfitting a 13,449-sq. ft. location in the city’s downtown.320 Tenant improvements
exceeding $500,000 are underway. The company evaluated Northern California as an
area to locate its North American headquarters and sales and operations center, but
decided to locate in Dallas, instead. Average compensation will total $85,000 annually. 321
Facebook has expanded big-time and now has more than 500 employees in Seattle four
years after it opened a small office. Paul Carduner, head of the office, said, “We love it
here. We’re here to stay.” The company plans to relocate to a new building with room for
perhaps 2,000 employees. Facebook leased 274,000 sq. ft. with an option to add 62,000
more. Meanwhile, Facebook has been expanding its existing facility by making room for
up to 800 employees. “At some point you start feeling a little bit like sardines,” Carduner
said, explaining how Facebook keeps filling up its offices and needing more space. In
Seattle, employees work on Facebook’s search, messaging, video, groups, platform, ads
and mobile products and also develops games and experiences for the Oculus VR
virtual-reality platform.322
75
Santa Clara
↔ Menlo
Park
Texas > Fort
Worth
Santa Clara
↔ Menlo
Park
Oregon >
Prineville
Santa Clara
↔ Mountain
View
Alabama >
Stevenson
Santa Clara
↔ Palo Alto
Washington >
Seattle
100
NJR
100
NJR
$1,000
750
#DO
#EN
#IT
#SO
#SM
}CDO
$200
487
#DO
#EN
#IT
#SO
#SM
}CDO
NQF
#DC
#DO
#EN
#IT
#SO
}CDO
NQF
#DF
#EN
#SO
}CDO
$600
N$R
Facebook will build a data center in Fort Worth, a project consisting of three 250,000-sq.
ft. buildings on a 110-acre site for a total of $750,000 sq. ft.323 The $1 billion facility will
eventually have more than 100 employees and the jobs will pay an annual salary of at
least $70,000. The selection process was extensive. Fort Worth was a candidate among
220 cities, then to a smaller group of about 20, and then to four finalists. The new data
center will be fully operated by wind power from a 202-megawatt wind farm on 17,000
acres in Clay County, about 100 miles away. Facebook will not own the wind farm, but
will buy the power. Local officials said Facebook was attracted to Fort Worth for the site’s
location, the availability of an employee talent pool, as well as electricity and water
capabilities.324 The Fort Worth Star-Telegram reported that “Facebook officials seemed a
little overwhelmed by the huge Texas welcome they received Tuesday at a
groundbreaking ceremony at the north Fort Worth site.... ‘We’ve done groundbreakings
before and typically they’re not quite this large,’ said Tom Furlong, Facebook’s vice
president of infrastructure. ‘Everyone’s been great to work with. We want a long-term
relationship. This is a great welcome.’”325 [Note: Data centers use significant amounts of
electricity and such costs are lower in Texas than in California.]
Facebook will build a third full-sized data center in Prineville, which will be Oregon’s
largest data center to date, at 487,000 sq. ft. That’s 40% larger than Facebook’s last
Prineville data center; the company says the extra space makes room for more
computers and more electrical equipment. For comparison, the average Costco retail
warehouse is 144,000 sq. ft. Facebook’s investment in Prineville totals $780 million thus
far.326 The company intends to invest at least $200 million in this expansion of its site. 327
[Note: Data centers use significant amounts of electricity and such costs are lower in
Oregon than in California.]
Google, Inc. will build a $600 million data center in northeast Alabama’s Jackson
County, creating up to 100 jobs at a state-of-the-art facility designed for efficiency and
powered by renewable energy. The center will be located the banks of the Tennessee
River on 350 acres of land owned by the Tennessee Valley Authority (TVA) at Widows
Creek, a power plant that is being shut down. Gary Demasi, Director of Global
Infrastructure at Google, said, “We see a lot of potential in redeveloping large industrial
sites like former coal plants.”328 A Google data center manager, Patrick Gammons, wrote,
“Data centers need a lot of infrastructure to run 24/7.... Decades of investment shouldn’t
go to waste just because a site has closed; we can repurpose existing electric and other
infrastructure.... we can use the plants’ many electric transmission lines to bring in lots of
renewable energy to power our new data center.” The goal is for the center to be
powered by 100% renewable energy.329 The center – Google’s seventh in the U.S. – will
bring 75-100 “high-paying” jobs to Jackson County; construction will begin in 2016. In
recent times, well-known companies such as Mercedes-Benz, Airbus, Hyundai, and
ArcelorMittal Steel have moved into Alabama.330 [Note that data centers use significant
amounts of electricity and such costs are lower in Alabama than in California.]
Palantir Technologies, a big data analytics company, is advertising for software
engineers for a new Seattle office. The expected size and focus of the facility are unclear.
The company develops technologies used by governmental agencies and large
companies to glean insights from large sets of data. Palantir made its mark developing
76
Santa Clara
↔ San Jose
Oregon >
Eugene
250
$21
Santa Clara
↔ San Jose
Costa Rica >
Coyol
171
N$R
Santa Clara
↔ San Jose
Mexico > Tijuana
2,400
N$R
1.200
#CH
#EN
#MA
}CDO
NQF
#MA
#PB
530
#MA
}CLO
}OSO
}REL
}CDO
data solutions for the U.S. intelligence community and has since expanded into corporate
work. Responsibilities listed in a Seattle engineering job post include “prototyping new
products for globally impactful institutions” and developing “data integrations,
customization to the Palantir platform and entirely new services as part of your regular
work.”331 The company opens some offices based on proximity to customers, such as a
New York outpost that’s close to financial companies, and a Washington, D.C., office to
serve government clients. But in the case of Seattle, it was the proximity to a deep talent
pool.332 [Along with the reason cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in
Washington leading to a reduction in expenses.] The New York Times said the
company’s technology is “deeply geeky” and work is secretive: “Founded in 2004, in part
with $2 million from the Central Intelligence Agency’s venture capital arm, Palantir makes
software that has illuminated terror networks and figured out safe driving routes through a
war-torn Baghdad. It has also tracked car thieves, helped in disaster recovery and traced
salmonella outbreaks.... has been used at JPMorgan Chase to spot cyberfraud and to
sell foreclosed homes; at Bridgewater Associates to help figure out investments for its
$157 billion under management, and at Hershey to increase chocolate profits.”333
Avago Technologies, a publicly traded company, purchased the former Hynix facility for
$21 million. The global supplier of analog semiconductor products said it will use the
plant to produce cell phone components. It will hire engineers, technicians, and other
positions from the Eugene area. Avago says it will begin designing plant changes next
year, with construction expected to begin in 2017; production isn’t expected to start until
2019.334 City officials say Avago will employ 250 to 300 local employees initially, with the
possibility of more later on. (A plant of similar size in Fort Collins, Colo., employs about
1,300 workers, according to the city’s daily newspaper, The Coloradoan.) Avago has
evolved beyond recognition since its beginnings as HP Associates in 1961, an affiliate of
Hewlett-Packard Co.335 It’s a 1.2-million-sq. ft. factory. In May Avago agreed to pay $37
billion to buy Broadcom Corp. -- the biggest takeover in the history of the semiconductor
industry. The deal will make Avago the world’s sixth-largest chipmaker.336
Boston Scientific – the company shifted the work to Costa Rica.337 See the 2015
Fremont entry for this company for more information about this event.
Flextronics International Ltd. (Flex), a company that designs and builds intelligent
products for a connected world, opened its new medical device manufacturing facility and
Center of Excellence in Tijuana, dedicated to the innovative development and
manufacturing of medical devices. The new facility will serve as the showcase location for
Flex medical operations, employing 2,400 workers and spanning more than 530,000 sq.
ft. (which includes 120,000 sq. ft. of class 7 and class 8 level clean room space). Devices
produced there for Flex’s OEM customers will help to diagnose and treat a wide variety of
medical conditions, ranging from cardiovascular diseases and diabetes, to hearing
impairment, neurological diseases and skin ailments. Flex’s facility is dedicated
exclusively to medical device manufacturing and is staffed with a highly skilled team, led
by a seasoned management team from medical device manufacturing and engineering
backgrounds. The plant, with plans for additional expansion, is executing high speed,
high volume, high mix, zero defect, lean manufacturing solutions for some of the world’s
77
Santa Clara
↔ San Jose
Texas > Austin
NJR
N$R
NQF
#GR
#HQ
#SO
}REL
Santa Clara
↔ San Jose
Texas > Austin
NJR
N$R
NQF
#PF
}CDO
Santa Clara
↔ Santa
Clara
Nevada > Reno
N$R
NQF
#DF
#EN
#HQ
#SO
}REL
Santa Clara
↔ Santa
Clara
New York >
Malta
#CH
#MA
#RD
#SC
}CDO
30
1,000
$2,000
500
leading medical healthcare companies. Flex has maintained a strong presence in Mexico
over the past 17 years, with more than 20,000 employees throughout the country and
facilities in Tijuana, Ciudad Juarez, Aguascalientes, Reynosa and Guadalajara. Flex
provides support for the Technological University of Tijuana (Universidad Tecnológica de
Tijuana) through grants for engineering scholarships, as well as for the purchase of
manufacturing equipment for students studying industrial processes and operations. 338
GreenRoad Technologies, a provider of Software-as-a-Service (SaaS) driver behavior
and fleet performance solutions, is substantially expanding activity in the North American
fleet market. In so doing, it’s appointing new individuals to executive positions in its “new
headquarters in Austin, Texas.” The company, also has offices in the UK, Israel and San
Jose. Zeev Braude, GreenRoad CEO, stated: “[O]ur new Austin headquarters has
already begun to serve as a center of excellence for increasing fleet operating efficiency
by leveraging cutting edge telematics data and creating a positive safety culture.” With
more than 8 billion miles monitored and 600,000 driving years logged, GreenRoad serves
companies across many industries, including trucking, construction, food service,
delivery, public safety and buses.339 Among others, Al Gore is a backer of GreenRoad –
his Generation IM Climate Solutions Fund invested $10 million in the company. 340
GreenRoad recently raised $26 million in Series G funding to expand its sales and
marketing forces.341
Silicon Valley Research Group – The technology marketing company is opening an
office in Austin in 2015. In a Wall Street Journal comment, Company CEO Alan Nazarelli
said, “I am very much looking forward to our expansion in Texas, but more importantly
having the Texas spirit permeate our company culture.”342 Earlier, he said that he will
“personally spearhead the expansion.”343
BlackRidge Technology, a cyber-security company that protects enterprise networks
and cloud resources from unidentified and unauthorized users, will relocate its
headquarters and operations to Reno. The company plans to initially hire 30 full-time
employees. CEO Bob Graham said, “We are pleased with the level of talented local
resources that are available to support the growth of our operations and the creation of a
new cyber security solutions lab.”[Along with the reason cited, it’s conceivable that the
location decision was influenced by lower business and employee costs, taxes and fewer
regulations in Nevada leading to a reduction in expenses by between 20% and 35%.]
The company was founded in 2010 and recently leased space in Reno where the new
cyber lab is scheduled to be operational in the second quarter of 2015.344 The company
will keep an engineering office in San Jose.
GlobalFoundries received approval in 2015 to start construction on a $2 billion
Technology Development Center in addition to the facilities it already has in Malta. The
company will build a central utilities building, six 3,000-ton chillers and six cooling towers,
a high-voltage electrical yard and a bulk gas yard at its existing $10 billion computer chip
manufacturing site. GlobalFoundries and Samsung are expected to manufacture a new
generation of chips for smartphones and tablets at the lab.345The new facility will be
500,000 sq. ft. in size where 1,000 employees will be added.346 (Silicon Valley used to be
the epicenter for companies producing computer chips in the U.S.)
78
45
N$R
Santa Clara
↔ Santa
Clara
Texas > Austin
Santa Clara
↔ Santa
Clara
Unknown >
Dispersed
292
N$R
Santa Clara
↔ Sunnyvale
Texas > Austin
NJR
N$R
Santa Clara
↔ Sunnyvale
Oregon > Bend
25
N$R
Santa Clara
↔ Sunnyvale
Unknown >
Dispersed
57
N$R
10.6
#CH
#EC
}REL
NQF
#MA
#SC
}REL
}DSP
NQF
#HQ
#PB
}REL
#DO
#EN
#HQ
#SO
}REL
#FP
#MA
#QA
}CLO
}DSP
4
NQF
Volex PLC, an electrical, fiber optic and power cord supplier, is moving its U.S. data
division headquarters from Santa Clara to Austin, where it plans to grow to a headcount
of about 45 in a 10,600-sq. ft. space. The Austin Business Journal reported that “The
move illustrates a common theme heard lately -- some California companies faced with a
decision about where to grow are looking to states with lower costs of doing business
and fewer regulations.” Matt Becker, CEO of Volex’s data division, said, “I started looking
into moving about a year or so ago based on cost and retention difficulties.” Volex’s
history in California stretches back two years. Volex, which is traded on the London Stock
Exchange, will continue to have a presence in Santa Clara, but its data division
headquarters now is officially Austin.347
Vishay Intertechnology Inc., a semiconductor manufacturer, is laying off 292 workers in
Santa Clara effective March 31, 2016. The event has the appearance of a jobs transfer.
Argus Research analyst Jim Kelleher said Vishay’s discreet semiconductors and passive
components are low-margin products by nature, and the company is always looking for
ways to cut costs. “I think it’s just ongoing recalibrating ... moving headcounts into lower
cost geographies,” Kelleher said. The layoffs come after disappointing financial results for
the company.348 A WARN Notice refers to the company as Vishay Siliconix, which
confirms 292 worker separations in Santa Clara.349
Aerin Medical in August was relocating its headquarters from California to Austin. It filed
a Form D with the Securities and Exchange Commission to raise $14.36 million in
funding. The company focuses on solving breathing problems with a device that lessen
the need for surgery to breathe easier.350
Kollective Technology. The cost of living and quality of life lured the Silicon Valley
company to Bend. CEO Dan Vetras said the cloud-computing firm will be moving part of
its staff to Bend in July. “It’s pretty amazing to wake up in Bend, as opposed to Silicon
Valley, quite honestly,” Vetras said. The company employs around 60 people worldwide,
including 35 in the San Francisco Bay Area. Vetras speculated that about half of the
Silicon Valley staff would relocate with him to Bend. Vetras said lower costs were a major
reason for the move to Central Oregon – relative to the Bay Area, building and hiring
costs were fairly reasonable. Additionally, the smaller market, would generate less
competition for employees. Kollective has leased 4,000 sq. ft. and plans to hire at least
10 people in the next year. Kollective specializes in software and services for Nestle, Fiat,
American Airlines and others. Vetras said he offered employees who were uncertain
about relocating to Bend an opportunity to visit the city at the company’s expense. Most
of the employees who took him up on the offer liked the region.351 Apparently an office
will remain in Sunnyvale
Unilever closed a plant in Sunnyvale that produced Imperial Margarine and Country
Crock products352 and in the process furloughed 57 employees.353 For an idea of the
extensive nature of machinery that can be found in a food processing plant, see the
YouTube presentation by EquipNet of the products auctioned in conjunction with the
“complete liquidation” of the facility. Auctioned were “Gerstenberg & Agger Perfectors
and Pin Rotor Machines, Fillers, Cartoners, Case Packers, Churning and Milking Tanks,
CIP Systems, Toptier TTL20 Palletizers & More!”354
79
100
$170
Santa Clara
↔ Sunnyvale
New York >
Lockport
Solano ↔
Benicia
Wisconsin >
Unknown
124
N$R
Sonoma ↔
Petaluma
Oregon > Bend
NJR
N$R
Unknown ↔
Silicon Valley
Florida > Fort
Lauderdale
Unknown ↔
Unknown
Illinois > Gurnee
200
NJR
$5
N$R
150
#DO
#EN
#IT
#SB
}CDO
NQF
#FP
#MA
#QA
}CLO
}REL
NQF
#CP
#DN
#HQ
}CLO
}REL
NQF
#HQ
#SO
}UTN
NQF
#MA
#SC
}REL
Yahoo Inc. opened its new call center and expanded data center. David Filo, Yahoo’s
co-founder, said the company originally wasn’t planning to put as many jobs in Lockport.
When Yahoo went looking for a site for a data center, it was interested in the availability
of “green power,” such as that from the Niagara Power Project, and a cool climate. “I
don’t think any of us envisioned so many critical functions here,” Filo said. However, the
company placed a network operations center and a “customer care center” there as well,
which account for more than half of the jobs on the campus. Yahoo had to construct its
own power substation to handle the data center’s electricity demand. Yahoo has invested
$170 million in its Lockport project so far. There could be more development – and more
incentives – in the future, as Yahoo bought 18 acres of adjacent land. The company
created about 200 jobs in Lockport with its development.355 (Since the 2010 entry for the
original event totaled 100 jobs, only 100 jobs are credited to this event as new jobs.) A
contract gives Yahoo until 2021 to build something on that new portion of its campus,
which now totals 61 acres.356 The new facility occupies 150,000 sq. ft. of space,357 which
is in addition to the square footage it already occupies. [Note that data centers use
significant amounts of electricity and such costs are lower in upstate New York than in
California – such is unlikely to be the case in New York City.]
Hormel Foods will close a CytoSport manufacturing facility in Benicia in June. The
company will be moving production to its Century Foods plant in Wisconsin and to a thirdparty facility near Benicia. CytoSport is a manufacturer of sports-oriented nutritional
products. The company said it incurred a US$4.5m charge during the second quarter of
fiscal 2015 in relation to the planned closure.358 A WARN Notice indicated that 124
employees were furloughed due to the permanent closure.359
Maverick Leather Co. will relocate its warehouse and expand its headquarters to a new
facility in Oregon. The business owners “fell in love” with Bend during a visit to see their
son in college and decided to see what the rest of their team would think about relocating
to the area. After a few trips, the entire staff was sold on move. The location is ideal for
the team; they are avid outdoor enthusiasts. The new warehouse has twice the amount
of space and the headquarters will have new features. Maverick Leather hopes to
incorporate a leatherwork retail space in the future.360
Sato Global Solutions, a new software division of Tokyo-based Sato Holdings, will
invest $5 million and plans to employ about 200 people in three years at its new global
headquarters in Fort Lauderdale. The company will develop and market software for
hospitals, retailers and others to track items ranging from hip implants to mobile devices.
Sato considered creating an HQ in Silicon Valley before choosing Fort Lauderdale. South
Florida was chosen because the area was less expensive and more business-friendly
than Silicon Valley. Apparently, the first 35 jobs will have average salaries of nearly
$88,000 annually.361 Sato is among some 200 Japanese companies operating in Florida
that employ more than 20,000 people in the state, said Japan’s deputy consul general in
Miami.362
AKHAN Semiconductor Inc., which expects growth for its cutting-edge diamond film
semiconductors, will relocate its HQ from one Illinois location to another Illinois site and
move an unspecified number of jobs “from California.”363
80
Unknown ↔
Unknown
Nevada > Reno
160
$1
Unknown ↔
Unknown
Nevada > North
Las Vegas
4,500
$1,000
Unknown ↔
Unknown
Arizona >
Tucson
910
Unknown ↔
Unknown
Nevada > Reno
20
NQF
#DN
#FP
#MA
}UTN
3,000
#AU
#CP
#EN
#GR
#MA
#RD
}CDO
}UTN
$80
800
#CP
#DN
#RW
}UTN
$2.7
145
#DN
}UTN
Angie’s Artisan Treats, LLC, is the producer of the fast-growing Boomchickapop brand
of natural popcorn, considered part of the healthy snacks category. The company looked
at California as a potential location for its new manufacturing and distribution center but
selected Nevada, in part for its “business friendly attitude” [which most likely means lower
business and employee costs, lower taxes and fewer regulations in Nevada leading to a
reduction in expenses by between 20% and 35%.] The company expects to create up to
160 jobs, offer a competitive benefit package to all employees, and invest more than $1
million in capital expenditures. The firm plans to ship their first products from Reno by
mid-September 2015.364
Faraday Future selected Nevada in which to locate its new $1 billion manufacturing
plant, a 3 million sq. ft. factory for which it has set an ambitious goal of producing cars by
2017.365 As of this writing it’s widely assumed that it will be a “100% electric” car and
therefore a “green” product.366 In searching for a location for its first U.S. factory, it was
natural to consider California considering that (1) the company is headquartered in the
state, (2) a number of California-based employees were lured from Tesla, (3) some
shipping will occur through the Ports of Los Angeles and Long Beach, and (4) California
officials were trying to convince the company to select an in-state location and were
offering economic incentives. However, after Faraday Future also considered Nevada,
Louisiana and Georgia, the company selected a site in North Las Vegas for the $1 billion,
3 million-sq. ft. assembly-line facility. The venture is backed by Jia Yueting, a Chinese
billionaire, entrepreneur, and founder and CEO of Beijing-based holding company LeTV.
The company has been called “mysterious.” In an unusual take on the story, Matthew
DeBord, Business Insider’s transportation editor, wrote, “Faraday Future could be
building ... anything. An electric car. An infotainment system. A self-driving electric car. A
self-driving electric car with an infotainment system. Or ... not even a car! Maybe a selfdriving-electric-car-sharing service!” State officials project the plant will employ 4,500
people when it reaches maturity in 2023, with jobs paying an average of $22 per hour. At
its peak, the project is expected to employ 3,000 construction workers. Improvement
projects include upgrading roads and building Union Pacific railroad freight access to the
park.367
HomeGoods, a home accessories store and a division of TJX Companies Inc., selected
Tucson for the site of its new $80 million West Coast distribution center. The company
expects to build an 800,000 sq. ft. facility on about 100 acres of land. HomeGoods
considered sites in California to build the new warehouse, which would be fully
operational in 2017.368 It would serve the retail outlets for HomeGoods, TJ Maxx and
Marshall’s in the western United States and will eventually have 910 jobs.369
Hubert Company, an international supplier of non-food items to grocery stores and
restaurants, selected Reno for its second U.S. western region distribution center; its first
is located in Ohio. it will allow one-day service to California. “Reno provides the best
combination of logistics infrastructure, service time, and cost to best serve the western
marketplace and improve our penetration in this region,” stated GM Rodger Reed. The
company initially plans to hire up to 20 full time employees and expects to spend about
$2.7 million on the 145,000 sq. ft. facility.370 “We provide anything that might be in a
restaurant or grocery store, except for the food,” he said. “[We have] 55,000 products,
81
Unknown ↔
Unknown
Kansas >
Lawrence
51
N$R
700
#HQ
#RD
}UTN
Unknown ↔
Unknown
New Jersey >
Vineland
80
N$R
10
#MA
}REL
Unknown ↔
Unknown
Nevada > Reno
50
N$R
75
#CP
#DN
}UTN
Unknown ↔
Unknown
Pennsylvania >
Pittsburgh
#HQ
#SO
}UTN
NJR
N$R
NQF
everything from a teaspoon to a large freezer.” Reed said they do a lot of business in
California, but chose Nevada because it’s more business-friendly, adding, “We do expect
this project to give us incremental sales growth.”371
Integrated Animal Health (IAH) will increase its footprint in the Kansas Animal Health
Corridor and move its global headquarters to Lawrence. The formerly Australia-based
animal health company announced a permanent location at the Bioscience & Technology
Business Center at the University of Kansas. Among the options considered were
locations in California, which were unspecified. The company will initially lease 700 sq. ft.
with options to expand; it expects to employ 51 within the next five years. IAH is a
privately owned and funded Australian company, which develops technology that delivers
medicine and supplements both orally and through the skin. A notable creation is a
topical pain relief patch for racehorses with shin soreness.372
Nature Labs LLC, a four-year-old cosmetics company, moved manufacturing from
California to Vineland. The liquid cosmetics and private-label manufacturing company
recently opened a 10,000-sq. ft. facility where they plan to have a total of 80 jobs by the
end of March 2016.373 They reconverted a warehouse that will be used for contract
manufacturing for cosmetics, personal care products and private label formulations. 374
Quality Bicycle Products (QBP), an international wholesale distributor of bicycle
components and outdoor gear, will open a new western distribution center in Reno in
December 2015. QBP plans to fill up to 50 warehouse, customer service and sales
positions. The new 75,000 sq. ft. facility is strategically located for expansion of one-day
delivery service to its network of independent retailers in California, Nevada, Arizona,
Idaho, Oregon and Washington. The warehouse will stock QBP in-house brands and
other well-known brands for the cycling enthusiast. “Offering an expanded level of service
to our western U.S. dealers is a huge step forward in our ongoing commitment to serving
the local bike shop,” said QBP’s president, Rich Tauer. OnTrac, a local delivery service
provider in Reno was instrumental in QBP’s decision to move to the community. QBP is
partnering with OnTrac for their over-night ground service.375 Nevada? Note California’s
ranking when it comes to retail bicycle sales in the states served by the Reno distribution
center: California, $770.8 million; Arizona, $157.7 million; Oregon, $113.7 million; Nevada
$62 million; Idaho, $56.9 million, and Washington $154.9 million.376 In that context, it’s
difficult to believe that California would not have been at least initially considered for the
distribution center. It would not be the first time that QBP opted for a non-California
location. In 1997, QBP purchased California-based Salsa Cycles377 and at some point
folded Salsa’s Petaluma headquarters into its Minnesota site where it remains located
today.378
Digital Dream Labs, whose educational game system Puzzlets has received rave
reviews from The Wall Street Journal and Popular Mechanics, turned down an offer from
a Silicon Valley firm to move to California. Jacob Hanchar, CEO, of Digital Dream Labs,
which grew out of Carnegie Mellon University, said “Pittsburgh definitely has a really
vibrant and supportive entrepreneurship space. ... I have roots here. I have a family. I’m
not going to be moving anytime soon. I don’t see any reason to pick up and move or
disrupt our lives.”379 Puzzlets is an interactive game that fuses learning in STEAM
(Science, Technology, Engineering, Arts, and Math) fields and game play into a seamless
82
Unknown ↔
Unknown
Tennessee >
Franklin
Ventura ↔
Simi Valley
Arizona > Mesa
NJR
Ventura ↔
Ventura
Texas > Austin
NJR
Yolo ↔
Woodland
Unknown >
Dispersed
20
50
N$R
$5.5
N$R
N$R
3.1
#AU
#CP
#HQ
}UTN
64
#AU
#MA
}CDO
90
#CL
#CP
#HQ
#REL
#DN
}CLO
}DSP
NQF
experience that teaches children new ways of thinking. Digital Dream Labs was cofounded by Matt Stewart, Peter Kinney and Justin Sabo, graduates of Carnegie Mellon
University’s Entertainment Technology program. Founded on collaborative graduate work
at the university and the Children’s Museum of Pittsburgh, the company is committed to
making learning more accessible through fun, tactile technology. 380
Triangle Tire USA LLC. Franklin landed the U.S. headquarters of China’s largest private
tiremaker. Manny Cicero, potential CEO of the company, sees the Franklin staff
increasing to as many as 20 employees over the next year. Hired will be executives and
managers to oversee sales and marketing, finance, engineering, logistics, customer
service, order entry and other functions. Cicero expects further growth as the world’s
14th-largest tiremaker looks to establish a foothold in a U.S. market that is the biggest
consumer of tires. Executives of Weihai, China-based Triangle Tire Group said they’re
exploring the feasibility of opening the company’s first manufacturing plant outside of
China, but didn’t specify where. The office will work along with a R&D center that Triangle
Tire opened in Akron, Ohio, two years ago. The company, which counts Caterpillar and
General Motors among its partners and clients, plans to pursue business with more U.S.
car and equipment manufacturers. California was on Triangle Tire’s radar before
Nashville was selected.381
Special Devices Inc. (SDI), an international manufacturer that makes parts for airbags,
bought 19.6 acres of land in Mesa for a new production facility for $5.5 million. The
company has an airbag plant in Mesa and the new land is near that facility, which also
will keep operating. It will build 64,000 sq. ft. assembly building and more buildings could
follow.382 As far back as 1994 the company explored an outright move to Arizona. In the
Arizona versus California competition, Moorpark Councilman Scott Montgomery said, “All
the processing fees for Mesa add up to about $62,000. Here in California, the county and
city fees alone add up to about $1.6 million. In addition, because of the environmental
review process, it would take them about 10 months longer to build here. And we wonder
why businesses are moving out of state?”383
Fashion Forms is relocating to Austin. It’s not quite the kind of tech-focused business
that typically has been moving there in recent years, but it’s considered high-tech in
another way. Fashion Forms is a specialty bra and accessories company that holds 14
patents and trademarks. The company will move to a large warehouse-flex space in
Northwest Austin.384 “I am moving my headquarters and have bought a home in Austin as
well, so I will be working out of there,” CEO Ann Deal said. Deal started the company in
her garage in 1993. The company will move to a 90,000-sq. ft. space in Austin. Fashion
Forms has products in 9,500 stores around the world.385 In 2012, the Los Angeles Daily
News reported that the company’s stateside payroll had about 140 employees, which
rises to around a seasonal 170 as proms, outdoor weddings and warm weather increase
demand. It also has operations in Canada and Europe, and most of her manufacturing is
done in China and Taiwan.386 Also in 2012, the Ventura Chamber of Commerce said the
company’s annual revenues are “well above” $30 million.387
Genco, a logistics company, is closing its consumer return center in Woodland in March,
furloughing 50 employees. The closure is not a seasonal move or a temporary move,
said a Genco spokesman from company headquarters in Pittsburgh. A customer whose
83
products were received there is closing the site; the spokesperson declined to name the
company.388
84
Chapter 17: Details Regarding 2014 Disinvestment Events
California Disinvestment Events for 2014 as shown in Table 16 are self-explanatory. Quite often in public domain sources
information was lacking about jobs, capital invested and square footage. In such cases, the following codes will appear:
NJR – No Job Number Reported
N$R – No Capital Investment Reported
NQF - No Square Footage Reported
Table 16: California Disinvestment Events for 2014
Jobs
Private
Capital
(million)
Function
or
Industry
Codes
Event
Type
NQF
#CP
#DF
#SO
}CDO
N$R
NQF
#HQ
#SO
}REL
N$R
NQF
#EC
#GR
}REL
California
County &
Locality
Destination
Location
Alameda ↔
Berkeley
Texas > Austin
60
N$R
Alameda ↔
Dublin
Texas > Austin
NJR
Alameda ↔
Fremont
Massachusetts >
Waltham
NJR
Sq. Ft.
(000)
Information Available through Public Domain Sources
3D Robotics, a fast-growing drone designer and manufacturer, opened a new office in
Texas, “highlighted by the onboarding of a dozen-person, Austin-based creative media and
marketing team, each with years of experience in the high-tech industry.” The focus of the
talent acquisition is on pivoting from predominately the B2B and sophisticated hobbyists
sectors to more out-of-the-box-ready products for everyday consumers. The actions
coincide with launching new consumer products (including the drone IRIS+) and upgraded
software to include industry-first feature sets. 3D Robotics platforms enabling mapping,
surveying and 3D modeling are used by multiple industries around the world, including
agriculture, photography, construction, search and rescue and ecological study. Their
Pixhawk is the most widely-used autopilot on the market. As of September 2014, it has
more than 28,000 customers worldwide.389
Epicor Software Corp. – The company said that effective immediately its “worldwide
corporate office” will be in Austin. Some personnel will remain in Dublin, Calif.390 Since the
relocation the company has continued to grow; in December 2014, Epicor agreed to
purchase Atlanta-based ShopVisible LLC., a provider of proven cloud retail order
management and digital commerce solutions.391 392 It’s unclear how many jobs will be
moved, although a count in 2011 showed that 360 jobs shifted when the company
relocated from Livermore to Dublin.393 Epicor has a global presence with customers in
more than 150 countries.394
A123 Systems LLC – After Wanxiang Group Corp. bought the company, it relocated some
employees from California to A123’s research facility in Massachusetts.395 The advanced
85
Alameda ↔
Hayward
Nevada > Sparks
Alameda ↔
Oakland
30
N$R
NQF
#HQ
#MA
}CLO
}REL
Israel >
Jerusalem
NJR
N$R
NQF
#GR
#IT
#MA
}OSO
}REL
Alameda ↔
Oakland
Michigan >
Bloomfield Hills
NJR
N$R
NQF
#CL
}REL
Alameda ↔
Oakland
Missouri >
Kansas City
595
$0.8
30
#EN
#GR
#SB
}CDO
Alameda ↔
Pleasanton
Texas > Austin
NJR
N$R
3
#EC
#EN
#GR
#SB
}REL
energy storage company provides lithium ion energy batteries to help bring nextgeneration products to market. For example, it has built and deployed more lithium ion
systems for transit buses than any other such company in the world. 396
Tecno Display, which specializes in display showcases and custom store designs, will
relocate its headquarters and manufacturing to Nevada, creating 30 jobs. Founded in
1976, the company has extensive production and display experience and is heavily
invested in modern machinery and technology.397
BrightSource Energy (a/k/a TriNet HR Corp.), which builds solar energy technology,
shifted its sales and operational focus outside of the United States because of regulatory
and environmental hurdles and the loss of the investment tax credit. Also, to reduce costs,
the company shifted most of its information technology operations from Oakland to its
Israeli subsidiary. The Dept. of Labor didn’t provide a figure for the number of jobs lost, but
did indicate that furloughs may have begun as early as Jan. 13, 2014. 398
Nanotex, a technology-focused textile company, was purchased by Crypton Fabric, which
moved the company to Bloomfield Hills, Michigan, in early 2014 while maintaining
operations in Asia, Europe, and the rest of the United States.399 Crypton closed Dec. 31,
2013 on the purchase of Nanotex. 400
Sungevity Inc., a residential solar services company, will open a national sales/service
center in Kansas City after conducting a year-long location review that started with 50
cities. The company is planning a “fun, techie business environment that Kansas City can
show off to other companies interested in coming here.” Sungevity’s jobs will include sales
and operations managers, trainers, sales consultants and design engineers to work with
homeowners on designing and financing solar energy equipment and installation. It’s the
company’s first expansion outside of Oakland.401 CEO Andrew Birch said: “Kansas City’s
geographical location, depth of professional talent and inviting business climate make it the
ideal location for our new sales and service center.” Sungevity expects to create 595 jobs
over the next five years in Kansas City.402 The company will occupy 82,000- sq. ft. of
space403 for which it will commit $750,000 in renovations.404 [Along with the reasons cited,
it’s conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Missouri leading to a reduction in expenses.]
PowerbyProxi Ltd., is a New Zealand pioneer in electronics technology that develops
wireless power technology that enables charging without a physical connection –
producing wireless power to do things efficiently “in a green world where we care about the
efficient use of energy.”405 The company isn’t locating its U.S. headquarters where it has
an office in Pleasanton, but selected Austin.406 The number of new jobs is unknown, but
positions include field application engineering, technical support and customer program
management. The Austin location is the ideal location for access to great tech talent.407
Pleasanton has been in the dateline for announcements such as gaining $4 million in
funding,408 the appointment of a California Ph.D. to its board of directors,409 and new
products and specifications.410 The dateline changed to Austin when it opened its office
there.411 The company is considering a lease for a 3,000-sq. ft. space.412 [Along with the
reason cited, it’s conceivable that the location decision was influenced by lower business
and employee costs, taxes and fewer regulations in Texas leading to a reduction in
expenses.]
86
Alameda ↔
Pleasanton
Contra Costa
↔ Martinez
Texas > Frisco
Contra Costa
↔ Unknown
(Danville or
Orinda)
NJR
N$R
NQF
#HQ
}CLO
}REL
20
N$R
NQF
#EN
#PB
#SO
}OSO
}REL
Ohio > Akron
NJR
N$R
NQF
#HQ
#PB
}REL
Fresno ↔
Fresno
Idaho > Jerome
NJR
$2
30
#MA
#PB
}CDO
Kern ↔
Tehachapi
Florida >
Pensacola
37
N$R
NQF
#GR
#MA
}REL
Los Angeles
↔ Beverly
Hills
Washington, DC
> Washington,
DC
NJR
N$R
NQF
#HQ
#PB
}REL
Germany >
Unknown
Salvatori-Scott, Inc. – The food broker relocated its headquarters during April, based on
information on the company’s LinkedIn page.413
Siemens Medical Solutions USA, Radiation Oncology Division, furloughed employees
and on-site leased workers involved in developing design specs, engineering and software
for the development of the Linear Accelerator because the company shifted the work to
Germany. The company stated, “Future development will occur in Germany and remaining
U.S. staff will not be needed.” The Dept. of Labor didn’t identify the community in that
country, but indicated that furloughs may have begun as early as April 6, 2014. 414
Nervive Inc. The biomedical company is relocating operations and opening its
headquarters in Akron. The company initially will be housed in the Akron Global Business
Accelerator, an incubator for technology-related startups. Nervive is developing an
emergency treatment for stroke patients – a noninvasive device called the VitalFlow
stimulator that uses electromagnetic energy to help increase blood flow to the brain
immediately after a stroke.415 It is unclear exactly where in the “San Francisco Bay Area”
the company was founded because the U.S. Trademark Office shows a registration in
Orinda while a business registration form shows an address in Danville.416
Specialty Sales LLC will invest $2 million in a 30,000-sq. ft. facility for a warehouse,
processing equipment, offices, and space for trucks and a railroad spur. The company
develops products for dairy cows hoof health. Greg Petersen, company president, said,
“Jerome is an ideal location offering close freeway access, skilled labor and the key to our
business, rail spur access. [The] facility will ... improve the health of dairy cows for our
customers in Idaho, Oregon, Washington, Utah and Nevada.” He said the railroad spur is
“central to our operations, allowing us to most efficiently receive raw materials in and
finished products out to our customers. This new rail spur ... will serve as the foundation of
our operation, allowing us to remain competitive in the marketplace.” Jobs will pay $ 70K $85K annually, with excellent medical benefits and a company-sponsored 401K plan.
Specialty Sales supports more than 400 dairies with about 700,000 cows. The
manufacturing process requires few municipal services and offers a zero discharge of
sewer waste.417
General Electric will shut down manufacturing in November, impacting about 37 jobs, as it
streamlines production for wind turbine components. GE will move the work to Florida. A
GE statement said, “When constructing a wind farm, delivering the most advanced
technology at the lowest landed cost is a commitment that GE makes to our customers.
Manufacturing location, component type and ease of logistics are key levers to achieving
this metric.” About 14 jobs will remain in Tehachapi to support technology testing and
services.418 [Along with the reasons cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Florida
leading to a reduction in expenses.]
ImmunoClin Corporation (IMCL), a U.S. healthcare company, relocated its corporate
headquarters to Washington, DC. The company stated that the location is attractive for
strategic regulatory and business reasons.419 [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations leading to a possible reduction in expenses.]
87
NJR
N$R
13.3
#EN
#ET
#HQ
#SO
}REL
80
N$R
10
#HQ
#TP
}REL
100
N$R
NQF
#ET
}OSO
}REL
Mississippi >
Belmont
75
$0.3
60
#CP
#MA
}REL
Los Angeles
↔ Commerce
New Mexico >
Rio Rancho
50
N$R
25
#HQ
#MA
#PB
}REL
Los Angeles
↔ Commerce
Texas > Austin
NJR
N$R
20
#AU
#CP
#HQ
}REL
Los Angeles
↔ Beverly
Hills
Missouri > St.
Louis
Los Angeles
↔ Burbank
Texas > Dallas
Los Angeles
↔ Burbank
Canada >
Ontario, Toronto
Los Angeles
↔ Cerritos
StationDigital, Inc. – The Internet radio and digital broadcast platform provider, with a
library of more than 20 million songs, is moving its headquarters from Beverly Hills to St.
Louis. StationDigital chose St. Louis for its low cost of living and its abundance of quality
software developers; it will lease 13,268 sq. ft. of space. The company will retain a
presence in its former headquarters to maintain ties to the entertainment and music
industries.420
Ameriflight LLC, an international air cargo carrier, will relocate its headquarters to DFW
Airport. The carrier employs 41 people, including 10 pilots, and parks 10 planes at DFW.
There, the number of aircraft will double and employee count will reach 80 within two
years. (Ameriflight will retain about 45 employees in Burbank.) Owner Jim Martell said
many of the company’s executives, such as the COO and VP-Maintenance, will move to
Texas.421 It’s remodeling 10,000 sq. ft. on the top floor of DFW’s Kitty Hawk building and is
also relocating its maintenance department to DFW from Bob Hope Airport in Burbank.422
Stereo D, a Burbank visual effects company that converts movies to 3-D, will move a
significant portion of its workforce to Toronto. In July, workers were told they had until next
month to decide whether they would relocate. Stereo D will keep its Burbank headquarters
but with a smaller crew, said William Sherak, company president. Referring to Toronto, he
said, “It’s a great artist’s city that has a huge film business,” The Toronto office is expected
to open in November and employ about 100 workers. Stereo D is owned by Deluxe
Entertainment Services Group. The company’s high-profile projects have included “Titanic
3D,” “The Avengers,” “Captain America” and “Jurassic Park 3D.” The company recently
added offices in London and Sydney, Australia.423 The company held a Toronto
recruitment event in December 2014.424
Villa International is moving its manufacturing of luxury furniture for motor homes to
Belmont, Mississippi, creating 75 jobs. The company supplies more than 30 motor home
manufacturers including Airstream, Fleetwood, Foretravel, Forest River, Gulf Stream,
Jayco, Newell, Newmar, Tiffin and Winnebago. Andrew Greenthal, president of Villa
International, said Mississippi’s “business friendly perspective was a breath of fresh air.”
The company will invest $250K in the project,425 which includes a 60-000-sq. ft. facility.426
DHF Technical Products, which specializes in precious metal manufacturing and refining,
will relocate its manufacturing. It provides metal products as well as smelting and refining
services to the jewelry, electronics, dental, high tech and mining industries and also
supplies the automotive industry. DHF President Dan Castilleja said there is great potential
to expand in Rio Rancho. “That’s part of what hampers us in California right now. We are
hampered by everything from payroll to taxes to regulation.” DHF Technical Products ships
to customers worldwide and is a subsidiary of David H. Fell & Company. 427 DHF will lease
and purchase a 25,000-sq. ft. office and manufacturing building for its headquarters and
production facility.428
Roadwire Inc., a provider of auto accessories, relocated its headquarters to a 20,000-sq.
ft. space in Austin, now the hub for global operations that include the U.S., Mexico and
China. Roadwire and its subsidiaries – Roadwire Leather Interiors, Signature Sunroofs,
Distinctive Industries and Classic Soft Trim – are experiencing significant growth.429
Roadwire moved into a 20,000-sq. ft. facility.430 It is difficult to determine the location from
which the HQ was relocated. A company history states that the company was born in Los
88
Los Angeles
↔ Culver City
Washington >
Seattle
NJR
N$R
NQF
#RD
#SO
}CDO
Los Angeles
↔ Culver City
Canada > British
Columbia,
Vancouver
700
N$R
74
#ET
#HQ
#SO
}CLO
}OSO
}REL
Los Angeles
↔ El
Segundo
Canada >
Ontario,
Cambridge
55
N$R
NQF
#AE
#DF
#MA
}CLO
}OSO
}REL
Angeles in 1969 as Distinctive Industries.431 Internet postings indicate that the company’s
HQ was in Commerce in 2009,432 but a 2010 Facebook posting stated that “Roadwire is
moving its office, warehouse and manufacturing center in Commerce to a larger facility [in]
Santa Fe Springs.”433 As of 2015, registration for the domain name roadwire.com, shows
the Vail Ave., Commerce address -- it’s longtime HQ location.434 The California locations in
which the company maintains warehouses are Hayward and Santa Fe Springs.435 Since
most references are to a headquarters in Commerce, this list attributes the event to
Commerce.
Belkin International, creator of the WeMo home automation system (“Use your
smartphone to control your lights and other home electronics from anywhere”), will expand
its Seattle-based software group and create a new R&D team. Dubbed WeMo Labs, the
expanded team will work with the University of Washington on developing sensing and
machine learning technologies for the growing Internet of Things market. Belkin has built a
connection with the Pacific Northwest in recent years. In 2013 it acquired a small local
software team through the purchase of wireless networking company Linksys and in 2010
acquired Seattle tech start-up Zensi. The company stated, “With a thriving tech industry
and an immense talent pool surrounding UW’s world-renowned computer science &
engineering and electrical engineering programs, Seattle is ground zero for recruiting the
top data scientists, software engineers, and developers in the country.”436 [Along with the
reasons cited, it’s conceivable that the location decision was influenced by lower business
and employee costs, taxes and fewer regulations in Washington leading to a reduction in
expenses.]
Sony Pictures Imageworks – The visual effects company (also known as a VFX house),
which worked on “The Amazing Spider-Man 2” and Warner’s “Edge of Tomorrow,” will
relocate in two phases. First, to cut costs, it transferred part of its Culver City HQ staff to
Vancouver. Variety reported the number of jobs is about three dozen, mostly in software
development. Trying to “remain cost competitive” the company will trim $250 million in
costs.437 A bigger announcement came later – a complete HQ relocation to Vancouver and
move to a new 74,000 sq. ft. facility housing up to 700 employees. Vancouver will become
the new head office almost immediately, with a representative saying, “We’re going to start
referring to Vancouver as our headquarters as of now, even though we’re not in the new
space yet.” The California office employs about 270 workers and it remains unclear how
many people will be retained there.438 Vancouver will work on Columbia’s “Pixels” and
Sony’s “Hotel Transylvania 2,” both in 2015, and Rovio’s “Angry Birds,” the “Untitled
Smurfs” movie and “The Amazing Spider-Man 3” – all slated for 2016.439 The Los Angeles
Times reported that “The move will allow the company to cut costs by capitalizing on
generous tax breaks that aren’t available in California.”440
Com Dev USA. The satellite component builder furloughed employees and on-site leased
workers engaged in the production of passive microwave components and subsystems for
satellites. The company reports that 55 employees will be furloughed. Operating costs in
Canada where production moved to are lower. The Dept. of Labor indicated that furloughs
may have begun as early as Jan. 28, 2014.441 Total Com Dev 2014 revenue of 208.2
million (Canadian $) was down 3% from the previous year, with the California operation
responsible for the decline. The company is closing its El Segundo plant.442
89
Los Angeles
↔ El
Segundo
Texas > Farmers
Branch
26
N$R
13
#CP
}REL
Los Angeles
↔ Gardena
Michigan > Ann
Arbor
85
$126
45
##AU
#MA
}REL
}UTN
Los Angeles
↔ Glendora
Mexico >
Mexicali
25
N$R
NQF
#MA
#PB
}OSO
}REL
Los Angeles
↔ Hawthorne
Texas > Briggs
NJR
N$R
7.5
#AE
#EN
#RD
}CDO
Los Angeles
↔ Hawthorne
Texas > Cedar
Park
200
$7.5
20
#AE
#EN
#HQ
}REL
Los Angeles
↔ Hawthorne
Mississippi >
Hancock County
NJR
N$R
NQF
#AE
#RD
}CDO
Los Angeles
↔ Hawthorne
Washington >
Redmond
1,000
N$R
30
#AE
#EN
#IT
}CDO
Ironclad Performance Wear Corp. – The work clothes and athletic wear manufacturer will
relocate to 13,000 sq. ft. of office space in Texas. President/CEO Jeff Cordes said,
“Positioning our corporate headquarters in Farmers Branch and the North Texas region
provides greater access to our expanding customer base and quality of life for our team
members.”443 [Along with the reasons cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Texas
leading to a reduction in expenses.]
Toyota Motor Engineering & Manufacturing North America Inc. will add 85 jobs and
add about 45,000 sq. ft. to expand powertrain engineering operations at its Ann Arbor
Township facility. Toyota evaluated sites in California for powertrain expansion before
making its decision.444 It is part of a $126 million investment at its Technical Center.445
About 85 jobs will relocate to Ann Arbor from Gardena.446 [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Michigan leading to a reduction in expenses.]
Ormco Corp., subsidiary of Sybron Dental Specialties, Inc., furloughed employees
producing custom orthodontic appliances because the company shifted the work to
Mexico. The California EDD reported to the Department of Labor that 25-30 jobs could be
affected. The DOL indicated that furloughs may have begun as early as March 27, 2014. 447
Firefly Space Systems purchased 200 acres in Briggs, an unincorporated area of Burnet
County, to build small rockets designed to transport satellites into space. The private
California-based company specializes in customized technology primarily used to launch
small satellites. The company touts the “rise of the boutique rocket firms” inspired by
SpaceX. Firefly will build a 7,500-sq. ft. building and a test pad at the site.448
Firefly Space Systems will relocate its headquarters from Hawthorne to Cedar Park, near
Austin, where it will develop rocket engines in collaboration with the University of Texas.
P.J. King, the company’s COO, expects to hire up to 200 workers (Some may be in Burnet
County), mostly engineers in “high-paying jobs.” King said Firefly was attracted to Texas
partly because of its business and regulatory climate.449 CEO Tom Markusic reiterated that
view when he said, “I’ve found that Texas provides the best environment for both business
and for the employees, and that’s why we chose to bring the business back here.”450 The
company plans to invest about $7.5 million in infrastructure.451 In October, 2014 Firefly was
finalizing plans to build the 20,000-sq. ft. building.452 By October 2014, under the name
Firefly Systems Inc., received $3 million in financing from 36 investors.453 The company
also built an engineering facility in Cedar Park.454 Some employees will remain in
Hawthorne.
Space Exploration Technologies Corp. (SpaceX) – Launched a facility within the
Stennis Space Center to test its methane-fueled Raptor rocket engine. The Raptor is
reusable in a heavy-lift launch vehicle for the commercial space program. Hancock County
is in South Mississippi near its border with Louisiana.455 Note: California was the birthplace
of rocket design and test flights when North American Aviation (later known as
Rocketdyne) fired its first rocket engine near what is now LAX and developed a permanent
test side in the Santa Susana Mountains near Canoga Park.456
Space Exploration Technologies Corp. (SpaceX) will locate a center for satellite
development in Redmond, near Seattle. Summarizing a GeekWire report – Elon Musk said
90
#SO
Los Angeles
↔ Hawthorne
Texas >
McGregor
300
$46.3
NQF
#AE
#EN
}CDO
Los Angeles
↔ La Mirada
Mexico >
Unknown
NJR
N$R
NQF
#EC
#MA
}OSO
}REL
Los Angeles
↔ Long
Beach
Utah > Ogden
20
N$R
108
#CP
#DN
}UTN
Los Angeles
↔ Long
Beach
Washington >
Everett
NJR
$3,000
1,300
#AE
#EC
#EN
#MA
#QA
#RD
}CDO
that video-game developers make for attractive employees for the tasks. The facility is
near Microsoft’s Xbox campus and Nintendo of America, and in the midst of many videogame startups, a great location for luring talent. The office would also put SpaceX in a
strong position to recruit engineers from Boeing and Blue Origin, the venture founded by
Amazon. The event will boost the region’s aerospace industry, which has become a hub
for commercial space ventures and space entrepreneurs. It may be three or four years
before SpaceX employs 1,000. The 30,000-sq. ft. building will undergo renovations, the
cost for which has yet to be made public.457 Musk’s plan is to build a network of some
4,000 satellites in space to deliver Internet access anywhere on Earth. Musk is making his
plans without any financial incentives from the state.458 While the office will focus on
satellites, Musk said SpaceX might also hire here some top rocket engineers who “just
refuse to live in L.A.”459
Space Exploration Technologies Corp. (SpaceX) is expanding its rocket development
facility in Texas, where it will add 300 jobs to the 250 already employed there. The
improvements will more than double full-time employment at the McGregor site.460
Employees will make an average of $60,000 annually.461 The capital expenditure for the
project will total $46.3 million.462 This is separate from the event where SpaceX first
established its McGregor facility.
Kyees Aluminum, Manitowoc Food Service Group, a division of Manitowoc Corp.
furloughed employees and on-site leased workers producing electrical equipment
(aluminum heat exchangers) because the company shifted the work to Mexico. The Dept.
of Labor didn’t identify the community in that country, nor did it provide a figure for the
number of jobs lost, but did indicate that furloughs may have begun as early as Feb. 3,
2014.463
Osprey Packs – The Colorado-based company that makes backpacks and travel gear will
relocate a distribution center to the Wasatch Front in Utah, although it considered Long
Beach. The company currently receives and distributes by truck, but after the move will
also use the national rail network. Also, the company’s founder will relocate from
California, back to Colorado. Osprey will continue to maintain a Mill Valley, Calif. office. 464
Later, the company selected Ogden for the 108,000-sq. ft. facility.465
Boeing Co. was solicited by California to place 777X jetliner manufacturing in Long Beach,
where the company has facilities. The attempt followed Boeing’s announcement that it
would cease production of its C-17 Globemaster III military cargo jet in 2015 and close its
Long Beach facility, which provides 3,000 jobs. Richard Aboulafia, an aerospace analyst
with the Teal Group, said California might have an uphill battle landing the 777X deal: “You
have expensive real estate, tight labor supply, union issues, environmental regulations and
geographic constraints. No one’s really thinking, Oh, it’s perfect for large, heavy scale
manufacturing. It doesn’t quite add up.” California offered a “strong” economic incentive
package, although the value doesn’t seem to have been made public.466 We don’t know
the full extent of incentives the state offered, as not all incentives would be subject to
public disclosure.467 Boeing decided to build the 777X and its composite wings in the Puget
Sound area, with work to include fuselage build, final assembly and fabrication of major
components.468 The project was exceptionally alluring because of the 777X’s early market
success. In 2013 orders for the new jetliner exceeded a combined value of more than $95
91
Los Angeles
↔ Long
Beach
Texas > Dallas
NJR
N$R
NQF
#CP
#DO
#EC
}REL
Los Angeles
↔ Long
Beach
Nevada > Las
Vegas
200
N$R
NQF
#CP
#EC
}UTN
Los Angeles
↔ Los
Angeles
Unknown >
Dispersed
50
N$R
NQF
#AU
#EC
#GR
#MA
}CLO
}DSP
billion at list prices, placing the 777X as the largest product launch in commercial jetliner
history by value.469 (Note: All figures following this point are for the wing-fabrication facility
only; figures relating to other 777X manufacturing haven’t been released as of this
writing..) Boeing wasted little time getting Washington state wing facilities ready. Starting
May 1, 2014, it began demolishing four buildings in Everett to allow for construction of a
building to house autoclaves – among the largest in the world – to cure the carbon fiber
wings. The cost estimate for the building ranges up to $3 billion.470 The factory is to be
ready for occupancy in 2016, with production scheduled to start in 2017.471 First delivery is
targeted for 2020.472 Update: Boeing’s decision is attracting new companies to the area.
Germany’s Kuka Robotics it will build a 29,000 sq. ft. factory to provide robots that will rivet
together the 777X’s fuselage. About 30 companies in the area are looking to expand or are
overseas firms wanting to come to be near Boeing. The firms range from a three-person
engineering office to others that employ several hundred people. Also, Boeing revealed
that its new wing factory will occupy 1.3 million sq. ft. of space. 473 Note: The number of
aerospace workers in Los Angeles County fell to 56,780 in 2012, a nearly 70% drop from
the 189,035 workers employed in 1990.474
True Mileage – The startup company, which markets a device that tracks miles driven by a
motorist – which may eventually help bring about lower car insurance rates – moved to
Dallas because of the region’s startup activity and business resources including
AccelerateNFC. “The startup scene in Dallas is very vibrant, and you can develop many
contacts,” said Ryan Morrison, president of True Mileage, in explaining the relocation from
Long Beach.475 [Along with the reasons cited, it’s conceivable that the location decision
was influenced by lower business and employee costs, taxes and fewer regulations in
Texas leading to a reduction in expenses.]
Wirelessor – The wireless technology provider launched operations in the Rob Roy
InNEVation Center. Gary Lee, CEO, said, “My customers and logistic providers are on the
west coast, so a North American Headquarters in Las Vegas makes a lot of sense. I was
considering opening my North American operation in Long Beach, but after comparing the
region’s political, tax, and economic climates, I decided that Las Vegas was the better
option. We [expect to] build a manufacturing and distribution plant in Las Vegas in the next
18 to 24 months.”476 The Shenzhen, China-based technology provider plans to hire
hundreds within the next 24 months.477
Boulder Electric Vehicle closed its assembly plant in the Chatsworth section of L.A. and
laid off about 50 workers. The startup company received a $3 million California Energy
Commission grant from the Alternative and Renewable Fuel and Vehicle Technology
Program to produce delivery vans, flatbeds and service trucks.478 When the plant opened
in 2012, Los Angeles Mayor Antonio Villaraigosa said, “Boulder EV’s manufacturing facility
will bring a new edge to our growing electric vehicle industry and much needed jobs.”
Reportedly, employment could reach up to 150 people at full production of 1,000 vehicles a
year.479 (Mayor Villaraigosa doesn’t appear to have said anything about this Solyndra-type
failure.) During Villaraigosa’s term, he worsened the Los Angeles business environment as
the city launched an unjustified campaign to change the tax status of companies in order to
extract higher taxes from them. This caused one company, Creators Syndicate, to leave
92
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
Georgia >
Atlanta
NJR
N$R
NQF
#ET
}REL
North Carolina >
Cary
NJR
N$R
NQF
#ET
#HQ
}REL
Los Angeles
↔ Los
Angeles
New York >
Syracuse
350
$150
52
#DN
#DO
#ET
#HQ
}CLO
}REL
Los Angeles
↔ Los
Angeles
North Carolina >
Siler City
55
N$R
NQF
#CP
#MA
}CLO
}REL
Los Angeles
↔ Los
Angeles
New Mexico >
Albuquerque
300
N$R
79
#MA
#FP
}REL
L.A. for nearby Hermosa Beach – after exposing the city’s activities in a Wall Street
Journal column.480
Cinipix, “a new Hollywood studio,”481 relocated to Georgia.482 The company is part of
Toast & Jam Holdings LLC, which was created a year earlier. 483
DreamQuest Productions, a film-making company, relocated in June 2014 after its owner
Allan Smith said he saw living and working conditions worsen in Los Angeles and improve
in North Carolina. “The cost of living was a definite factor. It’s much cheaper (in Cary) than
it is to live and produce in Los Angeles.” Apart from Cary having a low crime rate and
“beautiful” greenways, Smith said the Research Triangle offers a well of resources such as
local media agencies, universities and tech companies. Smith carved out a niche for
DreamQuest Productions as a crew that specializes in documentary and adventure films.
“If it involves jumping out of an airplane or trekking through a jungle, that’s what we love to
do,” he said. One of the company’s best-known and award-winning films is “Rescue Men:
The Story of the Pea Island Lifesavers,” a remarkable documentary about black lifesavers
who worked along North Carolina’s Outer Banks484 in the late 1800s.
Film House will move its headquarters, production, post-production and distribution
operations to Syracuse, which could ultimately create at least 350 jobs, and include a
minimum private investment of more than $150 million to build a 52,000-sq. ft. building.
The relocation is an outgrowth of the creation of the Central New York Hub for Emerging
Nano Industries.485 The company sources, develops, shoots, produces and distributes
properties domestically and internationally. In addition to traditional media, it’s focused on
emerging mobile technologies, including iOS (iPhone, iPad) and Android platforms (cell
phones, tablets) and other devices.486
Lazar Industries will close its Los Angeles furniture manufacturing plant, shift all
production to North Carolina and expand a facility there. President Rob Luce said, “We
began as a West Coast producer and our long-term loyal Western customers will continue
to get great product and service from our North Carolina facility. We have put together
programs to deliver product quickly and affordably to all Western U.S. destinations by
expanding production capacity in North Carolina, where the climate for upholstery
manufacturing is much more business friendly.”487 A WARN notice indicates that 55 jobs
will end on Sept. 26, 2014.488 Costs in California have long been a concern. The late Barry
J. Lazar, president of Lazar Industries, said in the early 1990s that he paid $400,000 a
year in workers’ compensation coverage for 110 employees in Los Angeles. But his bill in
North Carolina, where the company had about 50 to 55 employees doing similar work, was
$4,000.489
Flagship Food Group will launch a manufacturing plant next year in Albuquerque to make
505 products (a brand), as well as other foods from its Comida del Sol line. The factory –
which will be at a 79,000-sq. ft. facility – will hire 125 employees at the outset. Flagship
CEO Rob W. Holland said the new Albuquerque site could employ as many as 300 people
within the next few years. It will be Flagship’s largest manufacturing plant. The company
sells products to major retailers like Whole Foods and Trader Joe’s and restaurant chains
like Domino’s. “What this business needed is a marquee global manufacturing
headquarters, and this is it,” Holland said.490 He added that the site will be used “for
93
Los Angeles
↔ Los
Angeles
Kentucky > Mt.
Sterling
360
$13
NQF
#FP
#MA
}REL
Los Angeles
↔ Los
Angeles
Texas > Houston
NJR
N$R
NQF
#EH
#HQ
}REL
Los Angeles
↔ Los
Angeles
Texas > Midland
20
N$R
19
#AE
#MA
}CLO
}REL
everything that we do” and the facility will be the company’s U.S. headquarters for all food
distribution.491 One report was vague, stating that “Flagship is relocating an [unspecified]
out-of-state operation to a new location in Albuquerque, where it will consolidate both the
existing and new operations.492 Another more specifically stated: “Flagship Food Group is
closing its San Fernando Valley location and laying off 123 employees, according to the
state’s Employment Development Department. The jobs are going to New Mexico.”493 The
plant was in Chatsworth (part of the City of Los Angeles).494
Nestle USA will no longer manufacture Hot Pockets sandwiches in Chatsworth, a part of
Los Angeles, in a facility that has made them since 1988. About 360 employees will be
impacted. Production will move to a Kentucky facility, which has doubled in size since 1996
and can be further expanded. Nestle will invest $13 million in Mt. Sterling, and hire 150
new employees there as the operation converts to a 24/7 schedule. Nestle USA, whose
HQ is in Glendale, Calif., is part of Nestlé S.A. in Vevey, Switzerland – the world’s largest
food company.495 The company said the consolidation allows it to be more efficient in
making and shipping the frozen sandwiches to vendors and customers.496 [Along with the
reasons cited, it’s conceivable that the location decision was influenced by lower business
and employee costs, taxes and fewer regulations in Kentucky leading to a reduction in
expenses.]
Occidental Petroleum – According to the Los Angeles Times, the energy company’s
headquarters move “signals the end of a storied run for Occidental in Los Angeles, where it
was founded nearly a century ago and grew into the nation’s fourth-largest oil company.”497
Corporate HQ will relocate to Houston, although a separate company will be formed in
California to oversee assets in the state. The new Texas HQ will have exploration and
production operations worldwide, marketing offices, and a chemical subsidiary,
OxyChem.498 The California assets have been “hard to grow” and suffers from severe
regulatory constraints, said Leo Mariani, an analyst with RBC Capital Markets.499
Information about new jobs created, additional space needed, and new capital
expenditures are difficult to determine since over time the company has moved jobs from
Los Angeles to Houston and has periodically increased space in Houston. [Although some
efficiency factors were cited, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes and fewer regulations in Texas leading to a
reduction in expenses.]
Orbital Outfitters, Ltd. will move its corporate headquarters from the North Hollywood
neighborhood in Los Angeles to Texas to expand and broaden its business. The firm was
established in 2006 to provide spacesuits for the emerging commercial space industry. 500
The manufacturer broke ground on its 18,998 sq. ft. space test, production and HQ facility
at the newly licensed Midland Air & Space Port. The company also will expand its mockup
fabrication work there.501 Its customers include XCOR Aerospace, a suborbital launch
vehicle developer that announced plans in 2012 to move from Mojave, California, to
Midland. This represents the aftermath of one company moving and others in the same
industry following, creating a “clustering effect.”502 Note: Also this year, the FAA issued a
commercial spaceport license to Midland International Airport, the first such license issued
to a facility that also hosts commercial passenger airline flights.503 Update (2015): Orbital
Outfitter’s CEO Jeff Feige said the company is in the process of shutting down its Los
94
Los Angeles
↔ Los
Angeles
Washington, DC
> Washington,
DC
24
N$R
NQF
#ET
#HQ
}UTN
Los Angeles
↔ Los
Angeles
Texas > Austin
10
N$R
NQF
#PF
#RD
}CDO
Los Angeles
↔ Los
Angeles
Texas > Plano
NJR
N$R
NQF
#PF
}REL
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
Unknown >
Dispersed
160
N$R
NQF
#CP
#MA
}CLO
}DSP
Nevada > Reno
25
N$R
NQF
#DO
#HQ
#PF
}REL
Los Angeles
↔ Pasadena
Nevada > Reno
400
N$R
NQF
#AE
#DF
#EN
#HQ
}REL
Angeles facility and moving operations and staff to Midland. “It’s just shockingly more
reasonable to do business in Midland than it is in California,” Feige said with a chuckle.
The move will bring up to 20 employees with it.504
Pigmental Studios – The digital animation start-up considered locating in Los Angeles,
but instead will put its headquarters in D.C. There, it will provide creative direction and
animation modeling on two multimillion-dollar films, one of which is the 3D animated film,
“Kong.” “D.C. is an international community and we are expanding into an international
market with our first picture for China,” said co-founder Adam Miller. “We’re not a
Hollywood company. We’re an international company. So to be in a place that helps foster
that growth and encourage it is incredible.” The company has plans to open with an initial
staff of 24, which could grow to 60 in coming years.505 [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations leading to a reduction in expenses.]
Precision Health Economics (PHE) will open in Austin as part of its expansion plan. The
office will house research and executive administrative functions. The company said it “will
draw on the city’s fertile recruitment pool of highly educated science and technology
experts to grow its research operations.” Among the reasons cited was that Austin has
lured more than 300 businesses from innovation hubs in California and elsewhere in the
last nine years. “We need to be based close to the talent, and provide office locations
where people would want to move,” said Glenn Bilawsky, PHE CEO.506 The health care
economics and policy consultancy expects to hire 10-15 employees within a year, with
room on site to grow.507 [Along with the reasons cited, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Texas leading to a reduction in expenses.]
Saatchi LA, Toyota’s longtime advertising agency, will move an undisclosed number of
employees to Plano in response to the automaker’s planned relocation. Saatchi LA, a
division of Publicis Groupe’s Saatchi & Saatchi agency, has been associated with Toyota
for nearly 40 years. “This was not a decision made on a whim,” Chuck Maguy, president of
Saatchi LA, said in a statement to Advertising Age.508 Saatchi L.A. employs more than 400
people. Toyota is the ninth-largest advertiser in the U.S. and the third largest auto
advertiser in the country.509
Trinity Sports Inc., specializing in premium denim manufacturing since its start in 1993,is
closing a plant in Los Angeles.510 The company will furlough 160 workers in a WARN
notice that states “Closure Permanent.”511
White Rabbit, a full-service agency and venture studio, will move its headquarters to
Reno. The company initially moved into a downtown Reno location and already has a new
site under construction, the “Rabbit Den,” that will also serve as a media studio and
fulfillment center for clients. Derek Sine, White Rabbit’s CEO cited cost-savings and
business-friendly environment as the primary reasons for the company’s move to Northern
Nevada. Rabbit’s plan is to hire up to 25 employees.512 An office will remain in Los
Angeles.
Ashima Devices – The company, known for breakthroughs in advanced autonomous
aerial vehicles (drones), will move its headquarters and open a research, testing and
assembly facility in Reno. The company started in 2011 as a merging of NASA/Jet
95
#RD
#MA
Los Angeles
↔ Pomona
Utah > St.
George
25
$11.2
52
#HQ
#MA
}CLO
}REL
Los Angeles
↔ Pomona
Unknown >
Dispersed
25
N$R
NQF
#PA
}CLO
}DSP
Los Angeles
↔ Rancho
Dominguez
Mexico >
Unknown
11
N$R
NQF
#MA
#PB
}OSO
}REL
Los Angeles
↔ Santa
Monica
Arizona >
Scottsdale
500
N$R
36
#HQ
#PB
#SO
}CDO
Propulsion Laboratory Scientists, professors from Caltech, military officers and law
enforcement personnel who focused on robust, affordable, short-range, unmanned aerial
vehicles (UAVs).513 Such drones help first responders gain situational awareness during
emergencies. Ashima will start delivering products this fall. Work will be done at the RenoStead (general aviation) Airport until a manufacturing plant is built. The company is
partnering with the University of Nevada, Reno and Truckee Meadows Community College
to develop courses to prepare students for the industry. Ashima employs 25 people, but
will expand by hiring scientists, engineers and general office workers.514 About 400 new
jobs, with a reported average salary of $70,000, are expected by 2018.515 Ashima’s drone
is named Hexpuck.
Industrial Brush Corp. – The manufacturer of heavy-duty industrial brushes is building a
52,000-sq. ft. plant to replace its Pomona plant. “We’ve become increasingly dissatisfied
with the business environment in California, and the overall costs of operating a business
and living expenses for our employees,” said company President John Cottam. “We were
looking for a place that had a favorable business climate, and more reasonable taxation
and regulation requirements.” Employees stay with the business an average of 25 years
and numerous workers are relocating. Products are shipped worldwide. In its first year
doing business in the St. George area, the company will commit about $4 million for the
purchase of the property and construction, a capital investment of about $6 million and
$1.2 million in purchases of supplies and services from existing local businesses, totaling
$11.2 million.516 Employees will receive average annual wage and benefits equal to 175%
of the local average.517
Quad/Graphics Inc. will close the Pomona facility. After acquiring another company, it is
integrating operations that “involves shutting down equipment and consolidating work into
plants where we believe we can achieve the greatest manufacturing and distribution
efficiencies.” The company prints catalogs, magazines and other commercial products.518
A WARN Notice indicated that 25 jobs will be eliminated.519 [Along with the reason cited,
it’s conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations leading to a possible reduction in expenses.]
Avalon Laboratories LCC, a subsidiary of Avalon Holding Ltd, furloughed employees
producing medical catheters because it shifted the work to Mexico. The Dept. of Labor
didn’t identify the community in that country, nor did it provide a figure for the number of
jobs lost, but it indicated that furloughs may have begun as early as Jan. 28, 2014. 520
Orion Health, a New Zealand company with its U.S “head office” in Santa Monica521
selected Scottsdale for the North American and United Kingdom headquarters of its health
care populations division. The company will hire up to 400 people in the next three years
and house them in a “Center of Excellence” that will occupy 36,000 sq. ft.; Orion also has
an option on an adjoining data center. The average salary will be about $88,000 annually.
Dave Bennett, EVP of the division, said, “We are doing cutting-edge big data analytics, and
this is very attractive to graduates from (Arizona State University) and (Grand Canyon
University health care IT program) .... I’m competing with Silicon Valley for these
graduates, and when they see the type of software as a service we want to develop,
they’re staying here.” The presence of the Mayo Clinic and Dignity Healthcare means “the
talent we need is right here in the Valley.” The company will be hiring more software
96
25
N$R
NQF
#BF
}CLO
}REL
Arizona >
Phoenix
200
N$R
90
#CP
#EN
#HQ
#MA
#QA
#RD
}CLO
}REL
Los Angeles
↔ Torrance
Indiana > Fishers
134
N$R
10
#CP
#DN
#DO
#HQ
}REL
Los Angeles
↔ Torrance
Texas > Plano
3,000
$350
2,000
#AU
#EN
#HQ
#SB
}CLO
}REL
Los Angeles
↔ Santa
Monica
Florida > Miami
Los Angeles
↔ South
Gate
engineers, application specialists and clinicians.522 [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Arizona leading to a reduction in expenses.]
Universa Investments – The hedge fund’s Founder and Chief Investment Officer, Mark
Spitznagel, said of the relocation to Miami’s Coconut Grove neighborhood, “Florida’s
business-friendly policies, which are so different from California’s, offer the perfect
environment for us as we expand.” The firm has about $2 billion in assets under
management and 12 employees, with plans to grow to 25 employees. They are high
paying jobs that will lead to spending in the area, including when they bring clients in for
meetings.523
ProMag Industries, producer of aftermarket firearm magazines and gun accessories, left
California because of new regulations. It employed more than 200 employees in its South
Gate facility, “forced out after 25 years” because the company was no longer able to sell its
products from California. More than 150 tons of equipment on 40 over-sized trucks shipped
to the new 90,000 sq. ft. facility in Phoenix. All products will be made in house in Arizona.
Only a small handful of California employees were selected to move to Arizona. The new
team includes hand-picked hires from all over the US, including product designers, quality
control experts and an assembly staff. Products carry a “Made in Arizona” label.524
Memory Ventures – The co-founders, in looking for a location for the growing company’s
new headquarters, knew it wouldn’t be in Los Angeles, where they created predecessor
ScanDigital in 2007. “The business environment in California is very challenging,” CEO
Anderson Schoenrock said, citing the tax structure, government regulation and the high
cost of living. “Over time, that grinds on you and your employees.”525 The portfolio of directto-consumer e-commerce brands will relocate its to Indiana, creating up to 134 new jobs in
a 10,000 sq. ft. office. The company was founded in 2007 with its first brand, ScanDigital,
and has been featured on the Inc. 500 and Deloitte’s Technology Fast 500 lists. The
company also is launching a business incubator called Eureka!, where it seeks to partner
with entrepreneurs who wish to create new businesses under Memory Ventures’
platform.526 It appears that an office will remain in Torrance.
Toyota Motor Corp. – the world’s largest automaker will move most of its U.S.
headquarters to Texas, involving sales, finance, marketing, engineering and product
planning.527 Toyota’s U.S. sales unit has been based in Southern California since 1957.528
The company has indicated that it’s seeking efficiencies through consolidation and left
unmentioned California’s cost, tax and regulatory factors. Perhaps that is because the
company will continue to have about 2,300 employees in California529 and there is nothing
to gain by irritating state officials. While efficiencies certainly are an important factor,
observers note that “the cost savings will be huge”530 and “The move is expected to realize
massive cost savings for Toyota, including in areas of taxation, real estate and employee
cost of living.”531 Investor’s Business Daily proclaimed: “ The impetus for the move: cutting
costs.”532 [Along with the reasons cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Texas
leading to a reduction in expenses.] With the relocation, the Lone Star State is emerging as
a major player in the American auto industry.533 Torrance officials are trying to determine
how to fill the 101-acre hole the company will leave behind when it vacates its sprawling
97
Merced ↔
Atwater
Colorado >
Unknown
397
N$R
NQF
Merced ↔
Atwater
Merced ↔
Atwater
Merced ↔
Merced
Iowa > Unknown
NA
N$R
NQF
}REL
campus and moves 3,000 jobs away. 534 U.S. sales for Toyota last year totaled 2.24 million
cars and light trucks.535 The plan is for Toyota to build offices with up to 1.5 million sq. ft.536
The Dallas Morning News found that the Torrance operation is a $2.3-billion investment.
Being in Texas would likely bring major cost savings and improved contact with its US
manufacturing operations, which are increasingly located in the South.537 A Toyota
spokesperson said, “For recruiting purposes, there’s high caliber talent here, and we know
that from some of the other companies that are located here. There’s a good diverse base
to choose from, which is very important to us.... to attract and hire top talent for the
business.”538 The cost for the new campus is estimated at $350 million.539 UPDATE:
According to a Dallas Business Journal story in December 2015, A “main driver” in Toyota
deciding to move “was housing costs, according to Albert Niemi Jr., dean of the Cox
School of Business at Southern Methodist University, who has inside knowledge about the
move. Niemi shared the anecdote at an SMU Cox Economic Outlook Panel” on Dec. 11,
2015. “It wasn’t so much that we don’t tax income,” he said. “It was really about affordable
housing. ... They had focus groups with their employees. Their people said, ‘We’re willing
to move. We just want to live the American Dream.’” Toyota did the math and found that
housing costs in Los Angeles County, where Torrance is located, are three times per
square foot the cost of a house in Dallas-Fort Worth. “They’re paying the same salary,”
Niemi said. “So in real terms, they’re going to triple the affordability of housing they can
buy if they move to Texas.” In North Texas, median home prices are three to four times the
median income, said Chuck Dannis, real estate adjunct professor at SMU and senior
managing director of National Valuation Consultants. In Torrance, homes cost about seven
times the median income. The median home in Dallas-Fort Worth costs about $210,000,
and the median income is roughly $58,000, Dannis said. In Torrance the median home
price is $508,000 and the median income is $76,000.540
AT&T will close two call centers by the end of August, the largest private sector layoff in
Merced County in more than two decades. As many as 397 people would lose their jobs.
Employees are being offered a $5,000 incentive if willing to “follow the work” to call centers
in Colorado, Iowa and Washington, depending on each person’s position; also, severance
packages will be available. AT&T’s nationwide employee headcount will not change as
jobs have opened up in other places. Finding jobs in Merced County could be difficult; the
county unemployment rate is 12.5%.541 The center closed on Aug. 25, 2014.542
AT&T – For more information on this event, see the AT&T entry for Colorado.
Washington >
Unknown
Nevada >
McCarran (not to
be confused with
the Las Vegas
airport)
NA
N$R
NQF
}REL
AT&T – For more information on this event, see the AT&T entry for Colorado.
6,500
$5,000
5,000
}UTN
Tesla Motors, Inc. selected Nevada to place its $5 billion, 5-million-sq. ft. gigafactory that
will manufacture lithium-ion batteries. The project will produce 3,000 construction jobs in
the near term and 6,500 full-time employees to be paid an average wage of $25 an hour
with benefits. It’s expected to generate another 16,000 indirect jobs from related
businesses. Tesla CEO Elon Musk said, “This was not just about incentives. Nevada can
be very agile. It’s a real get-things-done state. That was a really important part of the
decision. The gigafactory is really vital for the future of mass-market car (production).
Where do we have high confidence that it can be ready on time, and can we operate cost-
#SB
#AU
#EC
#GR
#MA
}CLO
}REL
98
70
N$R
60
#DN
#GR
#HQ
#MA
#SB
}CLO
}REL
Nevada > Reno
400
$1.7
14
#BF
#HQ
}REL
Orange ↔
Anaheim
Mississippi >
Greenwood
126
N$R
NQF
Orange ↔
Anaheim
Nevada > Las
Vegas
52
$1.4
7.4
Nevada
County ↔
Grass Valley
Texas > San
Antonio
Nevada
County ↔
Truckee
}REL
}CP
}REL
)UTN
effectively. That’s the state you have.” Musk indicated that the gigafactory will be
independent of outside energy sources by operating on geothermal, wind and solar within
its confines. “We’re making sure it looks good. We’ll make sure people can visit it. It will be
worth seeing,” Musk said. Tesla promises to commit to hiring Nevada residents, as well as
military veterans; provide $37.5 million to K-12 education in Nevada; and partner with
UNLV in battery research.543 The California site that made the finalist list was the Castle
Commerce Center where the old Castle Air Force Base is located on unincorporated
county land near Merced.544 Panasonic Corp. and Tesla have signed an agreement that
lays out their roles on the construction and operation of the plant. The factory will produce
products for Tesla’s electric vehicles and also for the stationary storage market.545
KACO new energy, a Germany-based maker of solar electrical equipment, will close its
facility in Grass Valley, Calif., which was its headquarters for the Americas, and the San
Antonio production center will become its HQ for the Americas. The company produces
inverters to maximize the efficiency and reliability of power flowing from solar plants. KACO
plans to employ about 70 in San Antonio in finance manufacturing, distribution,
procurement and customer service. The San Antonio facility will to serve customers in the
United States, Canada and Mexico; it also will expand production to make residential
inverters546 in a 60,000 sq. ft. space that it moved into just last year.547
Clear Capital, a provider of real estate valuations and analytics for the mortgage/lending
industries, will relocate its headquarters and operations to Nevada. Company president
Kevin Marshall said, “The bittersweet part is that we do love Truckee. We love the whole
Tahoe/Truckee scene.” About 40% of the Truckee-based staff commute from Reno. The
decision was made in order to remain healthy and competitive in the industry, he said. “For
a number of years we were able to be competitive ... and be able to pay more to be in
Truckee,” Marshall said. “But as we grow and we diversify into different products, we
realize that Truckee doesn’t have the options for a financial-type corporation like ours that
our competitors have, so often we find ourselves at a disadvantage because our cost
structure is more than our competitors.” Clear Capital will continue to look for available
space in Truckee to house a portion of its staff. “If we can afford the logistics of keeping
two functional offices, that will be ideal for us,” he said. If a spot can’t be found or it doesn’t
prove to be cost-effective, Clear Capital could expand its new Reno space to house all its
Truckee employees.548 Clear Capital is investing $1.7 million in a building and equipment.
and is expected to add up to 400 jobs to Northern Nevada.549 It will start by occupying a
14,000-sq. ft. space while consideration is being given to additional space.550
Milwaukee Electric Tool Corp. is relocating its Anaheim repair and reconditioning
operation to Mississippi where, in Greenwood, it’s expanding and adding as many as 126
jobs in the coming months. The company first located at the Greenwood-Leflore Industrial
Park in 2001.551 This is an example of a company establishing a “footprint” elsewhere and
then directs expansion to that location.
Security Partners LLC, will relocate an alarm monitoring complex to Las Vegas.
Company founder/CEO Patrick Egan said when the company lost its lease in Anaheim it
“forced an opportunity” to relocate. The company looked at locations in California and
elsewhere but selected Nevada. Security Partners, which is HQ’d in Lancaster, Pa., is
licensed in 37 states and monitors alarms at 200,000 sites. The company will provide 52
99
Orange ↔
Buena Park
Arkansas > West
Memphis
35
$6
NQF
#MA
}CDO
Orange ↔
Buena Park
Mexico > Tijuana
NJR
N$R
NQF
#EC
#MA
}OSO
}REL
Orange ↔
Costa Mesa
Utah > Park City
56
$0.5
NQF
#CL
#DN
#HQ
#RD
}REL
Orange ↔
Costa Mesa
Texas > Fort
Worth
NJR
N$R
NQF
#MA
}CDO
Orange ↔
Costa Mesa
Mexico >
Unknown
NJR
N$R
NQF
#EC
#MA
}OSO
}REL
jobs and will invest $1.4 million552 in a new 7,424-sq. ft. facility in Las Vegas, which
company officials referred to as a “jewel” and a “fortress.”553
Awesome Products Inc., produces items that appeal to California’s eco-friendly
population. They are packaged in containers made from recycled material, and neither acid
nor ammonia is present in the company’s inventory. No product is derived from animals or
tested on them. Manufacturing is in Arkansas where a $6 million expansion occurred
during 2014. Work included installing a 600,000-gallon tank farm. The tanks, which
increased the plant’s production, contain up to 10 million pounds of water extracted from
the municipal system during off-peak hours. The tanks were once milk silos purchased
from the dairy industry. The project added 35 jobs and seven production lines, which
improved the manufacturing rate by 40%. Between the West Memphis location and the
280,000 square-foot-facility in Marked Tree, Arkansas, the company owns and operates
over 1 million square feet of space in the state. L.D. Hardas, founder and CEO, launched
the company 1984.554 “We have accomplished all this growth with zero debt,” Hardas says.
“We could easily have a $20 million line of credit, but we don’t borrow money. Our strength
is in how we pay.”555
Leach International North America, subsidiary of Esterline Corp., furloughed employees
and on-site leased workers producing relays, contactors and power distribution units. The
California EDD reported to the Dept. of Labor that furloughs occurred “due to the
production of the H Line being moved from Buena Park, CA facility to the Tijuana, Mexico
facility.” The DOL didn’t provide a figure for the number of jobs lost, but did indicate that
furloughs may have begun as early as April 9, 2014.556
Armada Skis, Inc., a skiing gear retailer, is moving its headquarters. CEO Erik Snyder
said, “The combination of Utah’s business environment and abundance of world-class
skiing make Summit County the ideal home for Armada’s future.” The HQ will house a
warehouse, distribution center, showroom and R&D. The company, founded in 2002,
expects to create 56 jobs in Summit County over the next eight years. Projected state tax
revenues due to the relocation are in excess of $1.7 million.557 The expected capital
investment is $500,000. Its products are distributed in more than 40 countries.558 The
privately held company was founded in 2002 by a group of professional skiers. 559
CellPoint Corp. opened a new state-of-the-art LCD display facility in Texas. Specializing
in repairing and refurbishing LCDs, touchpanels, and LCMs, the facility takes in scrap
displays and repairs to “like new” at a lower cost than buying new. The firm has more than
100 employees in two factories it owns in Shanghai, PRC, and Ft. Worth560 In testimony in
Sacramento, Cellpoint CEO Ehsan Gharatappeh said, “Even if California were to eliminate
the state income taxes tomorrow, that still would not be enough to put my manufacturing
operations back in California.”561
Sabritec, Smiths Connectors Division, a subsidiary of Smiths Group, furloughed
employees and on-site leased workers producing electrical connectors, high speed
quadrax and twimax for fiber channel, ethernet and IEE firewire biber optic, coax, triax high
power and high density miniature circular connectors and contacts and cable assemblies
because the company shifted the work to Mexico. The Dept. of Labor didn’t identify the
community in that country, nor did it provide a figure for the number of jobs lost, but did
indicate that furloughs may have begun as early as March 24, 2014.562
100
Orange ↔
Fountain
Valley
Mississippi >
Hattiesburg
Orange ↔
Garden
Grove
30
N$R
35
#MA
#PL
}CDO
Georgia > Duluth
150
$30
100
#AE
#DF
#HQ
#MA
}REL
Orange ↔
Huntington
Beach
Tennessee >
Springfield
100
$10.1
118
#DN
#GR
#MA
}CDO
Orange ↔
Irvine
Texas > Austin
276
$35
250
#HQ
#MA
#SB
#SO
}REL
Hybrid Plastics – When the nanotechnology firm relocated it also found a global market
for its products. In 2014, Hybrid is expanding its 35,000 sq. ft. plant to accommodate new
products, an opportunity cost to California. The expansion was executed in three phases,
the construction phase is underway, and Hybrid hopes to have the new line operating in
November 2014. When the company moved to Mississippi, Company President Joe
Lichtenhan said, “(Newspapers) wrote we were moving to the boondocks, and that we
would never be heard from again. It was a bunch of hot air.” He said Hybrid used “really
great engineering, design and installation people in Mississippi” for the expansion; the
company is near the University of Southern Mississippi’s School of Polymers and High
Performance Materials, a ready source of new talent for the company. 563 Prior news
releases show that the company’s headquarters was in Fountain Valley.564
Dasan USA Inc., a unit of Korea’s Dasan Machineries Co., Ltd. will locate its United States
headquarters and manufacturing facility in the City of Duluth, Gwinnett County, Georgia,
and relocate in part out of California. The event represents 150 new jobs and $30 million in
investment for the metro Atlanta community. For many years, Dasan has been a highprecision producer of steel parts and components for the defense, auto and avionic
industries. The new facility represents Dasan’s first U.S. production operation and also will
house operations previously located in Orange County, Calif.565 “We were drawn to
Gwinnett County and the state of Georgia because of the pro-business environment,
skilled workforce and existing infrastructure that is available in the region,” said Jin Noh,
president of Dasan USA. “We were further excited to learn that Duluth is the center of
Georgia’s Korean-American community. As a family-owned business, we place a high
value on being locally involved and hope to positively contribute to the area’s growth and
success for years to come.” There are now more than 60 South Korean companies with
operations in Georgia.566 The company will lease a 100,000-sq. ft. building.567
Airtech International, Inc., a provider of aeronautical, wind energy, space and marine
products, will invest $10.1 million in a new manufacturing and distribution facility in
Tennessee that is expected to create more than 100 jobs in three years. The company
purchased a 118,000 sq. ft. facility. Airtech President/CEO Jeff Dahlgren said, “Being
family-owned and operated, we instantly felt at home with the government and business
environment Tennessee has to offer.” The company’s HQ is in Huntington Beach, where it
also has a manufacturing facility.568
HID Global – The security identities company relocated its world headquarters and North
American operations center to Austin. When completed in 2015, the building, designed to
accommodate growth, will feature 250,000 sq. ft. of manufacturing, office and warehouse
space on 22 acres. The facility was recognized as Austin’s best industrial development
project of the year in an award from the Austin Business Journal.569 “The robust business
climate and positive economic conditions in Austin were strong considerations in our final
site selection,” said Denis Hébert, company president and CEO.570 HID Global
manufactures smart cards, ID access cards and other secure identity solutions. Four other
manufacturing facilities in Connecticut, Minnesota and California will be combined into the
Austin location. In 2014, HID Global will create 147 new jobs and another 129 jobs in 2015
while making a $35 million capital investment in the building and equipment. 571 HID Global
is owned by Assa Abloy, a Swedish company.
101
Orange ↔
Irvine
Nevada > Las
Vegas
Orange ↔
Irvine
Ohio > Gahanna
Orange ↔
Irvine
Oregon >
Portland
Orange ↔ La
Habra
Orange ↔
Laguna
Beach
100
N$R
NQF
#PB
#SB
#SO
}CDO
50
N$R
10
#DN
#SB
}CDO
NJR
N$R
NQF
#DO
#HQ
#SM
#SO
}REL
Texas > Austin
80
N$R
NQF
#HQ
#SO
}CDO
Texas > Austin
100
N$R
24.2
#EC
#GR
}CDO
Kareo Inc., a cloud-based medical office software and solutions provider for small
practices, opened of a new operations center in the Summerlin section of Las Vegas. It
projects more than 100 employees by year-end and several hundred by the end of 2015.
CEO/Founder Dan Rodrigues said about Las Vegas: “This is an ideal location for our
operations center due to the availability of a highly skilled, customer-focused workforce.”
Kareo serves more than 22,000 medical providers.572 ‘[W]e were looking for a market that
had a great technology community and had a strong workforce, and Las Vegas quickly
moved to the top of the list,” said founder/CEO Dan Rodrigues. “If you’re a tech company
and you’re looking to tap into a market with a really highly educated work force, with a very
favorable business environment , we think Las Vegas is a great market for that and we’re
really committed to Las Vegas for the long term.”573
MNX Global Logistics, a provider of time-critical transportation and logistics services,
opened its Global Customer Excellence Center near Columbus. The 10,000-sq. ft. state-ofthe-art facility adds more than 50 professional-level logistics service jobs to the area. The
center – with system redundancies to ensure that it remains operational even during major
weather emergencies – will house dedicated teams to serve Life Sciences, Aviation and
Secure Custody & Control customers. The company has recruited students from Ohio
State University’s Fisher School of Business’ Logistics Management to work in the center.
Headquartered in Irvine, MNX maintains regional HQs in Singapore and London and
serves more than 190 countries in the South America, Asia and EMEA (Europe, Middle
East and Africa) markets.574
TigerLogic moved its Irvine headquarters to Portland and will settle within the offices of
Postano, a social media engagement tool that TigerLogic had purchased in January 2013.
Starting in the autumn of 2014, TigerLogic began shifting its executive team, naming
Portlanders to its highest levels. The company has around 60 total employees.
TigerLogic’s corporate functions as well as its Postano brand are in Portland and account
for about 30 employees. Another 25 people work in the company’s three European offices
that work on the company’s Omnis software development tool. TigerLogic is traded on the
Nasdaq Capital Markets, an exchange for small cap companies.575
Project Manager Online Ltd., a New Zealand software company, isn’t putting its U.S.
headquarters in its current facility in La Habra – it selected Austin. The United States is
home to 56% of its customers, which will be served by a marketing and customer service
office in the new facility. Also known as projectmanagement.com, the company is recruiting
VPs to flesh out its executive team and expects to employ up to 80 local workers within two
years. CEO Jason Westland said the company could relocate its global headquarters in
New Zealand to Austin if growth plans pan out.576 Westland said he’s planning to move to
Central Texas.577 Note: According to zoominfo, the La Habra office has 29 employees, one
categorized as “C level.”578
Axium Nanofibers has conducted research on developing materials for batteries at
Cornell University and later had its corporate registration listed in Laguna Beach. In 2014,
it is building a pilot manufacturing and R&D facility in Austin to accelerate
commercialization efforts.579 A February 2014 event showed that Axium Nanofibers will
create 100 jobs involved in lithiumion battery development in Austin and that the “origin
city” was Laguna Beach.580 The California Secretary of State reports that Axium
102
Orange ↔
Los Alamitos
Nevada > Reno
22
N$R
NQF
#HQ
#MA
Orange ↔
Mission Viejo
Massachusetts >
Cambridge
80
N$R
NQF
#HQ
#SO
Orange ↔
Rancho
Santa
Margarita
Unknown >
Dispersed
150
N$R
NQF
#SB
}REL
}DSP
Orange ↔
Rancho
Santa
Margarita
Arizona >
Phoenix
30
N$R
33
#CP
#DN
#HQ
#RD
}CLO
}REL
Orange ↔
San
Clemente
Florida >
Pembroke Pines
90
$1.35
NQF
#HQ
}CLO
}REL
Orange ↔
Santa Ana
Mexico >
Nogales
94
N$R
NQF
#EC
#MA
}CLO
}OSO
}REL
}REL
Nanofibers, LLC and companies with similar names based in Laguna Beach have a
“Canceled” status.581 The company is leasing 24,230 sq. ft. in Austin.582
One World Science had an opportunity to expand its California operation and instead
chose to expand into Reno – moving its headquarters there – which involved improving an
existing facility and investing in new capital equipment. The expanded plant will require a
range of staff from facility managers and production employees to marketing and sales
professionals. Citing many of the strategic reasons for selecting growth in Nevada versus
California, CEO Adam Michelin said, “The decision to relocate some of the operation to
Reno was due to several factors, including the business tax structure, cost of living and
logistic advantages offered by the region.”583
Cortex MCP – The mobile payments software startup relocated its headquarters and will
grow its staff of 20 to more than 100. CEO Shaunt Sarkissian said it has been angel
funded since 2012 and is raising a “much larger round” that would be “north of seven
figures.” Sarkissian said the move makes sense: “I’m a Silicon Valley guy born and raised.
It’s becoming very evident you don’t need to be there anymore.” Sarkissian mentioned the
energy in Kendall Square, and Boston in general, as a big reason he decided to relocate
here. “You feel an energy that Silicon Valley used to have before a combination of political
and social issues that are sort of plaguing the Valley,” he said.584 Sarkissian also said that,
for mobile payments/wallets, the Boston area is now ground zero. 585
Cox Communications – The cable and internet service provider will furlough about 150
people as the company reduces the number of centers. The remaining locations will grow
to accommodate more people. The closure starts in Rancho Santa Margarita in May. 586
The expanded call centers are in Las Vegas; Phoenix; Omaha, Oklahoma City; Wichita,
Hampton Roads and Baton Rouge, where hundreds of job openings exist.587 It’s unclear to
which of those locations the Rancho Santa Margarita jobs will migrate. Hence, this event is
listed as one “dispersed” entry.
Serfas – The bicycle accessories firm relocated to a larger headquarters and warehouse.
According to Bicycle Retailer, John Denson, GM, indicated that the company reaps cost
and tax advantages and gains a friendlier regulatory environment in Arizona. He said,
“With California and all the red tape, we couldn’t see ourselves expanding. We couldn’t
even do our parking lot sale at the end of the year. Some of the objections we had from the
city and state, we felt, limited our opportunity for growth.” The company has distributors in
41 nations. The company lost only 3 of its 30 employees in the move 588
Stemtech International, a innovative stem cell nutrition company, moved its headquarters
to Florida, where it will create 90 jobs; the average salary will be $65,849 and $1.35 million
will be invested in its new facility. The company referred to Pembroke Pines as a
“business-friendly location.” Stemtech was founded in 2005 and named to Inc. Magazine’s
list of 5,000 fastest growing private companies in the U.S. in 2013.589
ITT Cannon, a subsidiary of ITT Interconnect Solutions, itself a subsidiary of ITT Corp,, is
moving manufacturing of electronic connectors to Nogales, Mexico, about 1:15 south of
Tucson. Denise L. Ramos, ITT’s CEO and President, said in a Q3 2014 Earnings Call:
“The move out of Santa Ana into Nogales is going to be completed, I think, sometime
around the first quarter of next year [2015].”590 Thomas M. Scalera, ITT’s CFO, discussed
Santa Ana’s “production moving into Nogales next year” as part of “cost structure
103
Riverside ↔
Calimesa
Kentucky > Park
City
10
$0.6
10
#CP
#DN
#HQ
#MA
}CLO
}REL
Riverside ↔
Corona
Nevada >
Henderson
30
$9.8
NQF
#FP
#HQ
#MA
}CLO
}REL
Riverside ↔
Corona
Texas > Allen
200
$30
261
#CP
#DN
#DO
#HQ
#RW
}REL
Riverside ↔
Temecula
Costa Rica
>Alajuela
200
N$R
NQF
Riverside ↔
Temecula
Texas >
Rockwall
245
$20
175
}OSO
}REL
#EC
#HQ
#MA
}REL
rebalancing.”591 Although there are references to “next year,” the relocation has already
begun. During 2014, many jobs have been eliminated in Santa Ana. Perhaps the reason
the layoffs have escaped attention is that they are scattered in time. In 2014, for example,
22 jobs were listed in one WARN report,592 19 in a separate report,593 and a third reflected
7, 5, and 41 layoffs (for a subtotal of 53)594 – or 94 in all. To observe how high-tech the
south-of-the-border operation is, the company has a video clip entitled, “See how our 500
plus employees at our manufacturing center of excellence in Nogales, Mexico are utilizing
the latest technologies and best in class processes to help connect the world!”595
Nemesis Arms, a precision firearms manufacturer, will relocate to a 10,000 sq. ft. space in
the Edmonson County Industrial Park, creating 10 jobs and investing $600,500 in the first
year. The family-owned business began in Calimesa, Calif., in 2007. Its dealers are in
Arizona, California, Colorado, Florida, Idaho, Missouri, Texas and Canada. 596 President
and owner David Ives said. “We have always felt that our ability to grow and continue to
innovate was limited by the social and political dynamic of the state of California.”597 Note:
Some reports indicated the move was to Bowling Green, Ky., but the company’s address is
in Park City,598 about 30 miles away.
Living Ecology, which produces organic fruit bars sold in supermarkets, will relocate to
Nevada, creating more than 30 jobs; it will spend $9.8 million for land and equipment for a
manufacturing plant and move its corporate headquarters to Henderson by late October.
Among other items, the company manufactures U.S. Department of Agriculture-certified
organic, kosher and gluten-free products.599
MonkeySports Inc. will relocate its headquarters and distribution center. President Tom
Arnold said, “We were seeking a more favorable business climate. Texas, and Allen in
particular, rate highly in consideration of economic climate, growth prospects, available
labor, regulatory environment and quality of life.” The company purchased a 261,000-sq. ft.
building with a warehouse large enough to allow for expansion and also “magnificent office
space.” In business since 1999, it’s an online retailer of hockey and lacrosse merchandise
with superstores in California, Massachusetts, New Jersey and Sweden and plans such
outlets in Texas.600 MonkeySports plans to relocate 25 employees from Corona, with plans
to hire more than 200 logistics employees in the next two years.601 It’s unclear if some jobs
will remain in Corona, which is why this event isn’t listed as a Closure. Capital investment
will total $30 million.602
Abbott Vascular furloughed 100 employees in its medical device plant.603 Based on other
events in this report that cite company announcements and a U.S. Department of Labor
finding, the jobs are being shifted to Costa Rica to a plant that is expected to employ 3,000
people.
Channell Commercial Corp. – The nearly 100-year old family owned company will
relocate its headquarters and manufacturing to a new 175,000-sq. ft. facility in Texas. CEO
Bill Channell said, “From a quality of life perspective, we believe Rockwall will allow us an
advantage in recruiting top talent nationally.” Also, Texas A&M University offers
opportunities to find engineering talent. The company, with facilities in Canada, United
Kingdom, Australia and Malaysia,604 is big in fiber optics and products for the
communications industry. The Temecula facility will remain open, but may be downsized.
Bill Channell said, “We found an exit strategy for future expansion outside the state” and
104
NJR
N$R
NQF
#BF
}REL
}DSP
Nevada > Reno
15
N$R
NQF
#HQ
#PB
}REL
Sacramento
↔
Sacramento
Texas > Frisco
50
N$R
3.5
#HQ
#MA
}CLO
}REL
Sacramento
↔
Sacramento
Nevada > Reno
20
N$R
NQF
#DF
}REL
Sacramento
↔
Sacramento
Minnesota >
Minneapolis
NJR
N$R
NQF
#BF
#HQ
}REL
Sacramento
↔ Rancho
Cordova
Unknown >
Dispersed
Sacramento
↔
Sacramento
blamed California for an oppressive business climate and said costs have made expansion
in the state no longer feasible. “At one time in Temecula, we had over 800 people working
in the factory.”605 The company is a fourth generation family-run business established in
1922 by James Channell. When it opens in Rockwall, Channell will start with 245
employees.606
Well Fargo Insurance Services Inc. will transfer small-business accounts from its
Rancho Cordova regional office to call centers in other states, although it is difficult to
determine just which states will receive new jobs. A spokesperson commented, “when we
pull all [the work] together in two locations” service will improve, adding “This is a really
important segment for us.”607 [Although the reasons for the event are vague, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations leading to a possible reduction in expenses.]
Cuco, LLC has relocated its headquarters from California to Reno and plans to create up
to 15 jobs in five years. The company designs, manufactures and distributes products that
utilize the bactericidal properties of copper to counter the harmful effects of bacteria in
three specific areas: Diabetic Health, Outdoor-Activity Wear and Institutional/Facility
Care.608
Curls, a hair products company, relocated its headquarters from Sacramento to Frisco,
Texas. It employs 10 people in its new 3,500 sq. ft. office in Frisco and could hire up to 40
more once it begins manufacturing; Garland is a possible site for the first plant. The
company currently outsources all its production. CEO Mahisha Dellinger said that among
the reasons for relocating is that Texas is much more business friendly with fewer
regulations and taxes. “I lost out in so many ways by launching in California. I could’ve
saved a lot if I was in a business-friendly climate.” Curls launched in 2002, boasting a hair
product line for curly hair.609
The Coulson Group, a Canadian-owned aviation firm, relocated operations to Reno in
April.”610 Coulson COO Jim Messer said about Reno: “We were blown away by the
relationship we felt with the area. For us, the real cornerstone is the can-do attitude we got
with this community. We’re moving to a very hospitable business environment here. This
gives us the opportunity to grow our fleet.” The company will employ up to 20 people
initially and jobs could increase with possibly as many as 7 more planes.611 Its operations
are now out of the Atlantic Aviation Hangar at the Reno-Tahoe International Airport. The
C130, a massive air tanker, has been modified specifically to fight wildland fires. Coulson
is under a five-year contract with the U.S. Forest Service to respond to wildfires wherever
the agency needs help in the U.S.612
Vilicus Ventures, a venture capital firm targeting health care technology startups, moved
its headquarters from Sacramento to Minneapolis. Vilicus plans to raise its own capital and
create a health-IT focused fund worth about $50 million, said Matt Otterstatter, a general
partner at the firm who relocated to the Twin Cities. Vilicus’ funds are invested in more
than a dozen tech companies, including FireEye Inc., a cybersecurity tech company that
went public last year, and fraud-detection firm 41st Parameter. It recently made a seed
investment in Spire, which makes a wearable device that tracks breathing. Vilicus’ focus
won’t be limited to the Midwest.613
105
200
N$R
141
#AU
#MA
}CDO
1,550
$1,500
2,950
#MA
}CAN
}DSP
Mexico >
Unknown
NJR
N$R
NQF
#MA
#PB
}OSO
}REL
San
Bernardino ↔
Ontario
Mexico >
Unknown
300
N$R
NQF
#AU
#MA
}OSO
}REL
San
Bernardino ↔
Rancho
Cucamonga
San
Bernardino ↔
San
Bernardino
Mexico >
Tiajuana
100
N$R
NQF
#CP
#MA
}OSO
}REL
Nevada >
Henderson
550
$25
134
#HQ
#MA
}CLO
}REL
San
Bernardino ↔
Adelanto
San
Bernardino ↔
Barstow
Texas > Graham
San
Bernardino ↔
Ontario
Unknown >
Dispersed
Valew Quality Truck Bodies, a custom truck manufacturer founded in 1954, purchased a
141,066-sq. ft. industrial property for its first manufacturing facility outside of California.614
The company plans to have 200 people working there, in Texas, in about two years.615
China Zhongwang Holdings Ltd. / Scuderia Development – Barstow City Council
approved action to bring a $1.5 billion aluminum manufacturing facility and up to 2,000 jobs
to the area. The proposal by Scuderia Development to build one of the largest aluminum
production factories in the world – a 2.95 million-sq. ft. facility – for China Zhongwang had
been discussed since mid-2013. Pay for the expected jobs would have averaged $40,000
a year. China Zhongwang enlisted Scuderia, which owns about 258 acres of land at the
proposed site, to handle the project.616 But the project won’t happen, in part because of the
state’s high cost of electricity even though Southern California Edison offered “substantial
savings” for the project. An economist said California’s electricity costs were 50% higher
than the second-most expensive state west of the Mississippi River, and the state’s
regulatory requirements and renewable energy policy is creating an uncompetitive
environment.617 Update: By March of 2015, Scuderia outlined plans to construct a scaleddown plant that could employ up to 450 people and cost in excess of $120 million. 618 The
proposal doesn’t seem to have changed the view of Barstow’s City Manager, who has
downgraded prospects of the plant to “unlikely.”619
CareFusion Resources, LLC, a subsidiary of CareFusion Corp., furloughed employees
and on-site leased workers producing surgical and medical products because the company
shifted the work to Mexico. The Dept. of Labor didn’t identify the community in that country,
nor did it provide a figure for the number of jobs lost, but did indicate that furloughs may
have begun as early as Jan. 30, 2014.620
Safariland, LLC, Automotive Division, furloughed employees producing molded and cut
and sew automotive accessories because the company shifted the work to Mexico. The
Dept. of Labor failed to indicate which community in Mexico. The California EDD indicated
to the Department of Labor that “Partial automotive production has been shifted to Mexico”
and that 300 jobs would be affected. The DOL didn’t identify the community in that country,
but did indicate that furloughs may have begun as early as Feb. 10, 2014. 621
Pacer Technology furloughed employees and on-site leased workers producing bottled
super glue because the company shifted the work to Mexico. The California EDD reported
to the Department of Labor that “100+” jobs could be lost. The DOL indicated that
furloughs may have begun as early as Jan. 22, 2014. 622
Cannon Safe, Inc. – One of the nation’s largest manufacturers of safes will buy 8.1 acres
of vacant, city-owned land and build a 134,000-sq. ft. facility for its headquarters and
manufacturing. A financial analyst said the project will bring an economic impact of $200
million with Cannon providing $35 million in annual payroll by the 10th year. The company
plans to grow its employees from 100 to 550 workers over that period. At a Henderson city
council meeting, CEO Aaron Baker was greeted by applause from nearly 30 employees
and their families who have already relocated from California. The company has been in
business since 1965.623 Earlier, Baker said California’s business climate was not friendly
so he intended to move the company out of state. Cannon Safe, which has grown by 30-to40% a year during the past four years, will invest $25 million to build a plant and buy
equipment in the area.624
106
San Diego ↔
Carlsbad
Georgia >
Eatonton
80
$9
91
#HQ
#MA
#PB
#SB
}REL
San Diego ↔
Carlsbad
Iowa > Cedar
Rapids
16
N$R
NQF
#IT
#PF
#SB
}CDO
San Diego ↔
Carlsbad
Canada >
Montreal
NJR
N$R
NQF
#PB
}OSO
}REL
San Diego ↔
Carlsbad
Arizona > Tempe
150
N$R
46.4
#DF
#EC
#EN
#IT
#MA
}CDO
San Diego ↔
Poway
Unknown >
Dispersed
33
N$R
NQF
#AE
#EC
#EN
}CLO
}DSP
Aalto Scientific Ltd., a biotechnology company, will triple manufacturing capacity and
customer support via a site transition from Carlsbad to Eatonton, Georgia. Aalto’s COO
Jeffrey Mauro stated that “The new corporate headquarters and manufacturing facility will
be located on 26 acres in Putnam County, Georgia. This new facility will improve logistics,
turn-around-time and capacity; everyone wins with this site transition.” The facility’s design
is optimized to manufacture in vitro diagnostic products.625 The corporation, founded in
1979, manufactures and supplies purified human proteins and bulk processed human and
animal sera to the in vitro diagnostics community worldwide. With its new $9 million facility,
the company will join more than 400 life science companies in the state.626 “We are moving
our corporate headquarters and manufacturing facility to Georgia in order to grow our
business,” said Steve Mauro, owner of Aalto Scientific.627 [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Georgia leading to a reduction in expenses.] Under
construction is a 91,000 sq. ft. production and warehouse facility to house the company
and its subsidiary AUDIT MicroControls.628 It appears that the company has retained a
presence in Carlsbad.
Expense Reduction Analysts Inc., also known as ERA-USA, will relocate its support
services office from Carlsbad to Cedar Rapids. ERA-USA supports franchisees that help
organizations improve profitability through cost, purchase and supplier management. The
project is expected to create 16 new jobs likely in training, marketing, information
technology support and finance.629`
Medtronic Ablation Frontiers, Inc., Cardio Vascular Group, subsidiary of Medtronic, Inc.,
furloughed employees and on-site leased workers producing medical devices because the
company shifted the work to Canada. The Dept. of Labor didn’t provide a figure for the
number of jobs lost, but did indicate that furloughs may have begun as early as Jan. 13,
2014.630
ViaSat has begun construction on a new campus at the Arizona State University Research
Park in Tempe. The campus will consist of a manufacturing and office building. The
company will move about 200 Arizona employees, now located in two smaller facilities in
Gilbert, into the new facility. Despite the consolidation, the event qualifies as an expansion
because the new offices will have space to expand to 350 employees (noted as 150 for the
purposes of this report). Moreover, ViaSat plans to add space in the future to increase
headcount capacity beyond 400. In Arizona, the company specializes in design and
manufacturing of advanced microwave communication and radar products, radio frequency
systems, and cybersecurity. Technology developments encompass semiconductors,
encryption technologies and more.631 Of the new 116,000 sq. ft. facility, only 40% is
included in this report, considering that existing Arizona employees will occupy more of the
space. Headquarters remains in Carlsbad.
Sierra Nevada Corp. (SNC) is closing a Poway facility that worked on hybrid propulsion
systems as part of a plan to consolidate such work. The facility previously served as the
headquarters of SpaceDev, which SNC acquired in 2008. SpaceDev also developed hybrid
rocket motors there. In June, SNC acquired Madison, Wisc.-based Orbital Technologies
Corp., or ORBITEC, which also develops rocket engines. According to a company
statement, “As a result of the 2014 acquisition of ORBITEC, which specializes in
107
San Diego ↔
San Diego
Texas > Dallas
San Diego ↔
San Diego
Unknown >
Dispersed
San Diego ↔
San Diego
San Diego ↔
San Diego
1,000
$13
200
#DO
#EN
#HQ
#RD
}REL
500
N$R
NQF
#SB
}CLO
}DSP
}REL
Texas > Austin
12
N$R
NQF
#HQ
#PB
}CLO
}REL
Britain > Deeside
30
N$R
NQF
#MA
}OSO
}REL
propulsion systems, SNC is consolidating all of its propulsion related activities, including
our hybrid motor technology, into one operating business unit.”632 A WARN Notice
indicates that 33 employees were furloughed on Nov. 18, 2014.633 [Along with the
efficiencies resulting from the acquisition, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations leading to a
reduction in expenses.]
Active Network, LLC, a specialist in cloud-based software that powers more than 47,000
customers worldwide in managing activities, events and organizations, will relocate its
global headquarters to Dallas. The transition will begin in mid-2014 and last through next
year. Moving will be jobs in many fields – engineering, R&D and administration. Active
Network has committed to being a sponsor of the US Open Triathlon, to be held in the
Dallas/Fort Worth area. It’s inviting employees to engage in the event on behalf of its
Charity Challenge program, which helps underprivileged children participate in sports. 634
Active Network will lease 200,000 sq. ft. in downtown Dallas.635 As of Dec. 1, 2014, the
company hired 400 people and is on track to hire 1,000 employees through next year.636
The company has more than 30 offices worldwide.
Cox Communications – The internet and cable service provider is closing a San Diego
call center, eliminating 500 jobs, as it consolidates centers. The expanded call centers are
in Las Vegas, Phoenix, Omaha, Oklahoma City, Wichita, Hampton Roads, and Baton
Rouge. There are hundreds of jobs available at the other call centers.637 It’s unclear to
which of those locations the San Diego jobs will migrate. Hence, this event is listed as one
“dispersed” entry.
Curtana Pharmaceuticals Inc. will relocate to Austin following a $7.6 million grant from
the Cancer Prevention and Research Institute of Texas (CPRIT) to fund the company’s
lead cancer therapy. (The agency received nearly 600 applications, and Curtana was one
of two grant recipients.) Senior management will move to Texas, where CEO and Cofounder Greg Stein will set up a lab and work with local scientists; about a dozen
employees will work in Austin.638 The early-stage preclinical company, which is developing
treatments for adult and pediatric brain cancer tumors, is nearing completion of an equity
round of funding for at least $3.8 million, which it expects to close by the time it opens shop
in Texas.639 [Along with the reasons cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Texas
leading to a reduction in expenses.]
Cytori Therapeutics Inc., a U.S. firm that develops novel cell therapy treatments, will
relocate a portion of its operations and manufacturing to Wales, creating up to 30 jobs
there. The life science sector in Wales is growing and this move “builds on the growing
expertise within Wales in cell therapy and regenerative medicine.” Doug Arm, Cytori’s SVP
of Operations, said, “We are delighted to have found an ideal location to set up our
manufacturing HQ.... support from the Welsh Government, the good engineering and life
sciences skills base, the benefits of locating on Deeside Enterprise Zone and its good
logistical connections and proximity to Manchester Airport were the key factors in our
decision to consolidate our manufacturing operations to Wales.” The company has
invested heavily in research, product development and clinical trials over the past decade.
Systems manufactured in Wales will be shipped worldwide.640 Note that the move is of a
108
San Diego ↔
San Diego
New Mexico >
Las Cruces
San Diego ↔
San Diego
Mississippi >
Shannon
San Diego ↔
San Diego
San Diego ↔
San Diego
San Diego ↔
San Diego
160
N$R
40
#FP
#MA
}CDO
80
$11
87.7
#DF
#EC
#EH
#MA
}CDO
Poland >
Unknown
400
N$R
NQF
#AE
#MA
}OSO
}REL
Canada >
Unknown
Texas > Dallas
NJR
N$R
NQF
450
$10
100
}OSO
}REL
#DO
#DN
#HQ
}REL
“Manufacturing HQ” – a news report of a relocation of the corporate HQ was incorrect.
[Along with the reasons cited, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes and fewer regulations leading to a possible
reduction in expenses.]
Franco Whole Foods LLC – The company opened a new 160-job food processing center
that supplies a wide area in the U.S. The facility will produce uncooked flour, corn and
whole wheat tortillas, which will be shipped to stores across the nation641 including to
Whole Foods and Costco. Gus Franco, president of Franco Whole Foods LLC, said, “New
Mexico has become especially welcoming to manufacturers through reforms made in the
state’s tax policies that encouraged us to set up shop and grow here.” A state official said
Franco Whole Foods is a producer and exporter of tortillas which means they don’t
compete with local tortilla makers “and they bring dollars into New Mexico from out of
state.”642 The company will occupy a 40,000-sq. ft. space.643
General Atomics Electromagnetic Systems Group – Even as it moves into its newly
expanded manufacturing facility, the company is planning to grow it again. The Northeast
Mississippi Daily Journal reports that the “technology company and defense contractor
revealed its latest move, an $11 million investment that will more than double its workforce
here. General Atomics, which broke ground on its state-of-the-art manufacturing facility in
the Tupelo Lee Industrial Park South in 2004, has now expanded its operations here eight
times.” [Emphasis added.] It’s now opening a newly renovated 87,650-sq. ft. facility. A
company VP said, “I think this is just the beginning” and he hopes to be around for the
ninth, 10th and 11th expansions.644 The latest project will create 80 jobs.645 The square
footage mentioned here is in addition to the space occupied in previous years. [With repeat
expansions, it’s conceivable that those decisions were influenced by lower business and
employee costs, taxes and fewer regulations in Mississippi leading to a reduction in
expenses.]
Hamilton Sundstrand, Pratt & Whitney Aeropower Division, a subsidiary of United
Technologies Corp., furloughed employees and on-site leased workers producing gas
turbine engines. The company indicated to the Department of Labor that “Work will be
transferring to Poland and Canada” and that 400 employees may be separated as a result
of the event. The DOL didn’t identify the communities in those countries, but did indicate
that furloughs may have begun as early as May 23, 2014.646
Hamilton Sundstrand – See the 2014 Poland entry for this company for more information
about this event.
Omnitracs LLC – The provider of fleet management software and solutions to
transportation and logistics companies (tracking 500,000 vehicles around the globe) will
relocate its headquarters to Texas. The company stated that “As a major transportation
hub with a technology-savvy workforce, we believe Dallas offers great advantages that
align with our long-term business vision.” [Along with the reasons cited, it’s conceivable
that the location decision was influenced by lower business and employee costs, taxes and
fewer regulations in Texas leading to a reduction in expenses.] Omnitracs will retain a
presence in San Diego.647 The move will create 450 jobs and $10 million in capital
investments.648 The company will lease 100,000 sq. ft. in downtown Dallas.649 John
Graham, CEO of Omnitracs, said that since the early stages of conversations with the
109
12
N$R
NQF
#HQ
#PB
}REL
Florida >
Unknown
530
N$R
NQF
#DF
#EC
#MA
}CL0
}REL
San Diego ↔
San Diego
San Diego ↔
San Diego
San Diego ↔
San Diego
San Diego ↔
San Diego
San Diego ↔
San Diego
Georgia >
Unknown
Texas >
Unknown
Canada >
Unknown
Poland >
Unknown
Unknown >
Dispersed
NA
N$R
NQF
}REL
Texas officials, “we were convinced of the merits of establishing our new corporate
headquarters in this thriving business-friendly community.”650
Peak Health Solutions is moving its headquarters to Tennessee. The remote medical
coding company works primarily with health systems.651 The company’s total employee
footprint includes about 350 remote medical coders working from home across 48 states
and some office employees in San Diego and Atlanta.652
Pratt & Whitney AeroPower – The company manufactures aircraft auxiliary power units.
The military business will move to P&W’s Military Engines organization, potentially to
facilities in Florida, Georgia and Texas. The commercial operation will move to P&W
Canada, with much work shifted to Poland. P&W did not apply for the California Competes
tax credit, incentives to try to keep companies from relocating. 653 Most of the commercial
work will be moved to P&W’s plant in Rzeszow, Poland.654 P&W is a United Technologies
Corp. subsidiary.
Pratt & Whitney AeroPower – See the 2014 Florida entry for a summary of this event.
NA
N$R
NQF
}REL
Pratt & Whitney AeroPower – See the 2014 Florida entry for a summary of this event.
NA
N$R
NQF
}OSO
}REL
Pratt & Whitney AeroPower – See the 2014 Florida entry for a summary of this event.
NA
N$R
NQF
}OSO
}REL
Pratt & Whitney AeroPower – See the 2014 Florida entry for a summary of this event.
200
N$R
NQF
#PB
}CLO
}DSP
San Diego ↔
San Diego
Tennessee >
Nashville
NJR
N$R
16
#FP
#MA
}CLO
}REL
San
Francisco ↔
Texas > Dallas
NJR
N$R
NQF
#SO
#CD
#SO
Santarus, Inc. was acquired by Salix Pharmaceuticals for $2.6 billion. Santarus, a
developer of drugs and devices to fight gastrointestinal diseases, laid off 200 employees in
March at the San Diego site that was Santarus’ home before the Salix deal closed in
January. The company said it notified state officials that “Salix will be discontinuing
substantially all of Santarus’ operations in the state of California.”655`
TailGate Beer, a San Diego craft brewer that was founded in 2007, relocated to
Nashville.656 The company distributes beer across 14 states and ships internationally.
Founder Wesley Keegan said, “I’m happy to share we’ve found a home for our brewery
and tasting room! We have just signed on a 16,000 sq. ft. building, on 7.3 acres of land in
Nashville.... this site search has been a long process, we’re still a small company (but
more than doubling every year) and I’ve been committed for a long time to doing this – and
doing it right.... Our goal is to open up the outdoors as a craft beer hall, picnic, tailgate and
event space.... We’re converting what once was baseball diamond into an acoustic-musiconly, outdoor concert venue. We’ll be gardening hops and working with local artists on
murals in and around the property. Our primary focus is brewing.... Here we’ll expand on
small batch, experimental brewing. We’ll hire a local brewmaster to replace me, and he or
she will have carte blanche. Brew what you want. Experiment. Grow. Create.... I’m looking
forward to joining the local brewers guild and participating in the community.... Every
employee will earn a living wage. We at TailGate Beer live a culture of community and
family. With the amount of hiring we expect to do over the next 12 months, I’m most
excited to meet our new family.”657
UpCounsel, after raising $2.4 million in seed funding, selected Dallas in which to expand.
The company offers free software that matches attorneys to clients and works with more
San Diego ↔
San Diego
Tennessee >
Franklin
San Diego ↔
San Diego
110
San
Francisco
San
Francisco ↔
San
Francisco
Florida >
Jacksonville
123
N$R
NQF
#DO
#SO
}CDO
San
Francisco ↔
San
Francisco
Oregon >
Portland
220
N$R
37
#CP
#DO
#SB
#SO
}CDO
San
Francisco ↔
San
Francisco
Texas > El Paso
445
$21.5
NQF
#SB
}REL
San
Francisco ↔
San
Francisco
Texas > Austin
1,000
$210
487
#BF
#SB
#SO
}REL
than 1,000 businesses. “Dallas and Texas as a whole are bastions of business and
innovation,” said Matt Faustman, founder and CEO of UpCounsel. “When you see how
Dallas is leading in business and job growth, it’s exciting to expand not only into the state
but also into the city. Secondarily, there has been a lot of organic demand coming to us
from Dallas and Texas as a whole, so this is an obvious choice for a move.”658 “We knew
the next step for UpCounsel was to launch in Texas,” said CDO Matthew Faustman. “We
pick states and cities with a booming tech and business community and Texas is the
perfect example of that.”659 The number of new jobs is uncertain. [Along with the reasons
cited, it’s conceivable that the location decision was influenced by lower business and
employee costs, taxes and fewer regulations in Texas leading to a reduction in expenses.]
Advent Software – The software company selected Northeast Florida to grow and expand
after acquiring Black Diamond Performance, a cloud-based portfolio management
platform.660 The company will grow the workforce by 123 workers, about double the current
employee count, and also expand the facility to 42,000 sq. ft. The average annual salary
for the new technology services and administrative workers will be about $67,000. 661
[Along with the reasons cited, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes and fewer regulations in Florida leading to a
reduction in expenses.]
Airbnb, the software company whose online listings turn homeowners’ space into vacation
rentals, will open a Portland office and at first planned to hire 160 employees to focus on
customer service and support work. Portland will be Airbnb’s operational headquarters for
North America, overseeing service for customers across the continent. The company has a
similar office in Dublin for European operations. Ironically, current Portland regulations
generally don’t allow the kind of short-term rental that Airbnb’s business enables. The
company is lobbying to change those rules, but Airbnb said those talks are “totally
independent” of its decision to open its Portland office. Airbnb picked a 27,000-sq. ft. office
near a University of Oregon facility,662 but has expanded past that space. As of the end of
2014, the company had hired 220 in Portland and its footprint grew to 37,000 sq. ft.,
spilling out into nearby buildings.663
Charles Schwab Corp. – The brokerage firm will bring 445 jobs and $21.5 million in
capital investment over the next 10 years to El Paso. The company purchased a building
for its new Operations Center. Schwab has about 2,000 employees in San Francisco and
said earlier this year it plans to move a significant number to other locations over the next
three to five years. “We are very pleased to be expanding our footprint in Texas,” Joseph
Martinetto, Schwab’s CFO, said.664 [Along with the reasons cited, it’s conceivable that the
location decision was influenced by lower business and employee costs, taxes and fewer
regulations in Texas leading to a reduction in expenses.]
Charles Schwab Corp. is expanding big time in Austin, investing $196 million in plans to
occupy an existing 187,000-sq. ft. building and also construct a new building up to 300,000
sq. ft.665 Also, it will double jobs from about 1,000 to 2,000. Schwab CEO Walt Bettinger
says, “The talent pool is highly educated here and it’s growing. Austin is very attractive for
us, adding that Schwab will reduce its San Francisco headquarters workforce from 2,400
employees to about 1,200. He blames the high cost of living in the city, along with other
issues. “It’s difficult for talent to relocate to San Francisco given the housing costs.” said
111
San
Francisco ↔
San
Francisco
Washington >
Seattle
San
Francisco ↔
San
Francisco
Tennessee >
Nashville
San
Francisco ↔
San
Francisco
Colorado >
Denver
NJR
N$R
NQF
#DO
#EN
#SO
}CDO
45
N$R
3
#DO
#SB
#SO
}CDO
221
N$R
NQF
#DO
#HQ
#SO
}REL
Bettinger. “And the business climate in San Francisco, you’ve got to watch.”666 Former
Schwab CEO David Pottruck said he’s concerned to see how the city’s political leadership,
specifically the Board of Supervisors, treats the business community. Pottruck said the
high cost of doing business in San Francisco was a key factor that prompted him to
expand Schwab’s operations outside of California during his tenure. Those efforts continue
under Bettinger, with major projects underway in Austin and Denver. When Pottruck was
asked whether he thought Schwab might one day relocate to a less expensive locale, he
said. “I wouldn’t be surprised to see Schwab’s headquarters leave San Francisco
sometime in the next 20 years.”667 Schwab has operated in Austin for 20 years and will add
to workforce there.
Dropbox, a software and cloud storage company, opened its first West Coast office
outside of San Francisco and its “our first engineering-led office opening.”668 Aditya
Agarwal, VP-Engineering, said, “The incredible density of talent in Seattle … means that
this is going to be a big, long-term presence for us.” the company isn’t saying how large it
expects the Seattle office to become.669 [Along with the reason cited, it’s conceivable that
the location decision was influenced by lower business and employee costs, taxes and
fewer regulations in Washington leading to a reduction in expenses.]
Eventbrite, an online event planning, promoting and ticketing company, plans to hire 45
employees in its new Nashville office and future growth is possible. Nashville was one of
several cities that were in the running for the project (it wasn’t stated whether California
locations were in consideration). A company spokeswoman said, “Nashville is a hotbed for
tech savvy talent, culture, and the ‘make it happen spirit’ we look for when hiring.”670 [Along
with the reason cited, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Tennessee leading to a
reduction in expenses.] Reflecting flexible work schedules, the employees will have a
choice to either work from their homes or a co-working 3,000 sq. ft. office.671
Granicus, a cloud-computing provider, will create 221 new jobs over the next eight years
as it relocates to Denver. There, it will grow its business of managing content and
technology, such as webcasting, for state and local governments. A West Coast venture
firm purchased the business and decided to move its main center of operations out of
California to become more cost-effective.672 Granicus CEO Jason Fletcher said about the
migration: “San Francisco is an amazing city. If you are a startup or one of the large,
globally known players – Google, LinkedIn or Salesforce, for example – there isn’t a better
city on the planet in which to be located. However, for those companies focused on a
specific market vertical, as we are, and have been around a while – and growth is no
longer greater than 50 percent year over year – San Francisco can become challenging. It
is not simply the high cost of employees and real estate, although that’s part of it.... It is
much more about long-term stability. You literally can’t pay some key roles enough salary
when you are competing against the next hot advertising or marketing software startup
with buckets of equity options to dole out.... [I]n San Francisco there was too much
turnover, and we want to increase average tenure on key teams. One great example is
Customer Care. That team had an average tenure of 1.3 years in San Francisco. 673
112
NJR
N$R
NQF
10
N$R
NQF
4
N$R
Indiana >
Edinburgh
NJR
San
Francisco ↔
San
Francisco
San
Francisco ↔
San
Francisco
San
Francisco ↔
San
Francisco
Texas > San
Antonio
Texas > Austin
San
Francisco ↔
San
Francisco
Oregon >
Portland
San
Francisco ↔
San
Francisco
San
Francisco ↔
San
Francisco
Texas > San
Antonio
San
Francisco ↔
San
Francisco
Washington >
Seattle
San
Francisco ↔
San
Francisco
Kentucky >
Lexington
Utah > Salt Lake
City
}REL
Gravitas, a startup medical company, will relocate to San Antonio as part of an agreement
to aid in the creation of Covalor Medical LLC., a new medical device company, to be
headquartered there.674
#DN
#DO
#HQ
}REL
NQF
#CP
#DO
}CLO
}REL
N$R
NQF
#CP
#HQ
#LP
#MA
}CLO
}OSO
}REL
NJR
N$R
NQF
#PB
}REL
NJR
N$R
12.3
#DO
#FP
}REL
hydra, a manufacturer of aromatherapy and bath products serving more than 2,000
retailers worldwide, moved its headquarters to Lexington, creating 10 new jobs with plans
for growth. According to hydra Partner and GM William Kyle, the move is paying off
through increased shipping capabilities, a more productive workforce, and lower costs of
doing business. “Lexington’s affordable business costs have created a real advantage for
our company and will allow us to reinvest the dollars we save into our business and focus
on growth. We are excited to be in a place where our contribution to the community and
business environment is appreciated and respected,” said Kyle.675 The company has been
called “One of the best smelling businesses in Lexington.”676
Kitchenbowl, a food recipe startup founded by Ryan Waliany and his wife, Serena Wu,
avoided locating in San Francisco based on the cost of living and ultra-competitive hiring
market and moved north. Waliany said. “The quality of talent here is completely untapped,
and the quality of life is far superior to that of San Francisco.” Kitchenbowl provides photos
that show users on their mobile device how to cook a meal and is being used by people in
more than 1,500 cities around the globe. “We want to let you learn how to cook ramen from
someone in Tokyo, and learn how to make croissants from someone in Paris,” Waliany
said. The owners have raised an undisclosed seed round from Seattle-based Chasing
Unicorns and a few angel investors.677
MacBeath Hardwood Co. will relocate corporate headquarters from San Francisco to
Edinburgh, Indiana, near Indianapolis. While its four distribution centers in California are
unaffected, the company said “ongoing challenges in conducting business in the state”
were factors contributing to the move. MacBeath Hardwood was established in 1954 in
California.678
Mimetix Bioengineering, a startup company, will relocate to San Antonio as part of an
economic development agreement to aid in the creation of Covalor Medical LLC., a new
medical device company, to be headquartered there.679 Mimetix has a focus on “Stem cell
stimulation treating Osteoporosis.”680
Mix Party, a specialty cocktail distributor, leased 12,337 sq. ft. at Harris Ridge Business
Center. The Austin Business Journal reported that “The company is relocating to Austin
from San Francisco.”681
40
$5
4
#DO
#SB
#SO
}CDO
155
N$R
19.5
#DO
#EN
#SO
}CDO
My Time, a software company specializing in online scheduling of appointments, is
establishing a sales center in Salt Lake City that will create 40 jobs and involve a $5 million
capital investment. The company allows consumers to book appointments on its website
and mobile app with more than two billion businesses across the U.S.682 It will occupy
4,000 sq. ft.683
New Relic, which has had a Portland presence for three years, in 2014 is nearly
quadrupling its space by moving into 19,482 sq. ft. space. The firm currently employs a 45person engineering team, but plans to increase the headcount by another 155 in the
coming years. New Relic’s software monitors the performance of clients’ web
113
San
Francisco ↔
San
Francisco
Texas > San
Antonio
NJR
N$R
NQF
#HQ
#PB
#RD
}REL
San
Francisco ↔
San
Francisco
Arizona >
Phoenix
150
N$R
NQF
#BF
#DO
}CDO
San
Francisco ↔
San
Francisco
Missouri >
Kansas City
100
N$R
20
#IT
#PF
#SB
}REL
San
Francisco ↔
San
Francisco
Tennessee >
Nashville
400
N$R
120.7
#DO
#SB
#SO
}CDO
San
Francisco ↔
Colorado >
Boulder
30
N$R
NQF
#DO
#EN
#HQ
}REL
applications.684 The company provides software analytics that makes sense of billions of
metrics across millions of apps.
Perikinetics, a startup company, will relocate to San Antonio as part of an agreement to
aid in the creation of Covalor Medical LLC., a medical device company, to be
headquartered there. Covalor will work primarily with entrepreneurs on Class II and Class
III medical devices. Dan Burnett, who will serve as Covalor’s chairman, sees an
opportunity to positively impact treatment in a number of critical areas, including diabetes,
regenerative medicine, cancer, trauma, and wound healing. Covalor is owned by
TheraNova LLC of San Francisco. The U.S. Army Institute of Surgical Research at Fort
Sam Houston, which works on medical device technologies with start-ups, is also involved
in the project.685 TheraNova, which describes itself as a medical device development
company,686 could shift some manufacturing work to San Antonio.687
Prosper Marketplace, a peer-to-peer lending company, will open a new office in Phoenix,
the first outside of its San Francisco HQ. The program is similar to the Arizona-born,
eMoneyPool. The facility, near Phoenix Sky Harbor International Airport, plans to
eventually employ 150 people there. Chief Risk Officer Josh Tonderys said the company is
experiencing high growth. “Phoenix is a thriving city with a talented work force to draw
from, and we’re very excited to open an office here to support this growth,” he said.688
[Along with the reason cited, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes and fewer regulations in Arizona leading to a
reduction in expenses.]
Sedgwick LLP, a law firm, will open a back-office in Kansas City as a cost-saving move,
continuing a trend where law firms are moving nonlegal jobs to lower-cost regions.
Sedgwick said 100 jobs, mostly in San Francisco, will be moved to Missouri. The jobs
include finance, human resources, information technology, knowledge management,
marketing and new business. The firm decided on the move because, “We think this can
be more cost effective for our clients,” said Bruce Celebrezze, a Sedgwick partner.689 The
firm leased a 20,000-sq. ft. office in Crown Center. No economic incentives were involved
in the project.690
ServiceSource , a cloud-based recurring revenue management solutions provider, is
again expanding in Nashville by adding another 100 full-time jobs. Now with more than 800
jobs, the company is the third largest technology employer in the greater Nashville area.
The new employees will include sales representatives and other support staff that provide
services to more than 40 hardware, software, SaaS, and healthcare technology
companies. Customers supported from Nashville include Adobe, Affymetrix, Beckman
Coulter, Cardiac Science, Gerber, Google and Siemens. As Nashville emerges as a
technology innovation hub, ServiceSource provides a unique connection with many
prominent tech brands based in Silicon Valley and the San Francisco Bay Area. The
Nashville office represents ServiceSource’s largest sales center, occupying 120,685 sq.
ft.691 Note: The number of new jobs created is for 2014; it excludes the numbers created in
prior expansions. Space now totals 120,685 sq. ft.
sovrn Holdings, Inc., a unique online advertising and publisher platform, is moving its
headquarters to Boulder while retaining offices in San Francisco and New York. Sovrn has
30 job openings, from engineering to publisher development to demand operations. The
114
San
Francisco
20
N$R
NQF
#DO
#EN
#SO
}CDO
Utah > Sandy
200
N$R
18
#DO
#SB
}CDO
San
Francisco ↔
San
Francisco
Washington >
Seattle
50
N$R
NQF
#DO
#EN
#RD
#SO
#TP
}CDO
San
Francisco ↔
San
Francisco
Arizona >
Scottsdale
250
N$R
25
#SB
}CDO
San
Francisco ↔
San
Francisco
Arizona >
Scottsdale
1,300
N$R
100
#DO
#PF
#SB
#SO
}CDO
San
Francisco ↔
San
Francisco
Texas > Austin
San
Francisco ↔
San
Francisco
fast-growing advertising technology businesses works with online publishers –
newspapers, magazines, bloggers, etc. – to sell their unsold advertising inventory to ad
agencies that purchase the spaces through real-time auctions run by sovrn. The company
has nearly 20,000 publishers in its network representing more than 2 million websites. 692
Taulia opened an Austin office to target engineering talent in the city. Founded five years
ago, the company develops software that helps suppliers more quickly collect payments
from the companies they serve. Austin will serve as the company’s second engineering
hub, said Joe Hyland, chief marketing officer. “Early on we decided if we were going to
continue our growth rate we couldn’t rely on just one location,” he said. “Our plan is to
select other regions that have great talent pools, so Austin fits that perfectly for us.” The
company has 10 employees in Austin and plans to double that in upcoming months.693
[Along with the reasons cited, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes and fewer regulations in Texas leading to a
reduction in expenses.]
Thumbtack, Inc. opened a new Customer Support and Sales office in Utah, hiring at least
200 people in Sandy. One reason for the selection is “the ability to tap into a high quality
talent pool,” according to Sander Daniels, one of Thumbtack’s founders.694 Thumbtack
signed a 41-month lease for about 18,000 sq. ft. feet of office space.695 [Along with the
reason cited, it’s conceivable that the location decision was influenced by lower business
and employee costs, taxes and fewer regulations in Utah leading to a reduction in
expenses.]
Uber Technologies, Inc. is looking to hire up to 50 engineers in an office that should be
up and running by April, 2015.696 GeekWire first reported news of the new facility in
December, based on a post seeking an engineering manager in the city. 697 The job posting
states that “Uber is looking for experienced Software Engineers to join our Scalability
Engineering team. This group is perfect for those engineers looking to tackle the types of
distributed systems programming that allows Uber to scale. The ... team is composed of
experts in data-structures, algorithms, distributed systems, distributed consensus and
consistency, consistent hashing, sharding, system performance and analysis. We need
people with a solid computer science background.... The software that we write needs to
be horizontally scalable, fault-tolerant.”698
Weebly, Inc., a global service that enables people to create websites and other online
resources, signed a 25,000-sq. ft. office lease in Scottsdale, which will serve as the
company’s North American customer operations HQ to support a growing customer base.
The company plans to bring more than 250 new positions to the city over the next three
years, and will support more than two million customers from its Scottsdale location. Every
month, 175 million people visit more than 20 million Weebly sites worldwide.699
Zenefits, a human resources tech company, selected Scottsdale for its first major
expansion outside of its San Francisco HQ. It will occupy a nearly 100,000 sq. ft. office and
hire more than 1,300 employees over the next three years. The Scottsdale office will be
larger than the one in San Francisco by the end of 2015. The fast-growing company
(launched May 2013) offers a free, software-as-a-service, cloud-based HR platform that
automates benefits for businesses. “I see Phoenix as the next major tech hub in the U.S.,”
said CEO Parker Conrad. “There’s so much talent here with other well-known tech
115
San Joaquin
↔ Lodi
Unknown >
Dispersed
430
N$R
NQF
#FP
#MA
}CLO
}DSP
San Joaquin
↔ Stockton
Unknown >
Dispersed
110
N$R
NQF
#FP
#MA
}CLO
}DSP
San Joaquin
↔ Stockton
Tennessee >
Morristown
182
$10
65
#DF
#DN
#MA
}CDO
companies. We decided Phoenix was really the place to be.” The company is hiring for HR
specialists, sales representatives, account managers and executives, and client support.700
Compared to the San Francisco Bay Area, buildings are larger, cheaper and easier to
come by in Arizona.701
General Mills Inc. will close its 430-employee cereal plant in Lodi by the end of 2015. The
plant pays an average wage of $24 an hour, plus benefits, which means a loss of good
middle-class jobs,702 The plant began operations in 1948 and has long been associated
with Wheaties, Cheerios and Lucky Charms. The smell of cereals and other goods created
a sweet aroma and often wafted over the community.703 A Lodi Chamber of Commerce
representative said the cost of doing business in California is higher than New York or
Missouri where they General Mills has facilities; he also remembers speaking to late
General Mills plant manager Bob Wheeler who told him the Lodi facility operated at a
higher employee cost than any others in the company.704 Other issues are the high cost of
power in California and increased regulations.
Hormel Foods Corp. food processing plant in Stockton, which manufactures Dinty Moore
stew and Hormel Chili, will close – 110 workers will lose their jobs – with work shifted to
other facilities. It’s had a plant in Stockton for 65 years. The new came as Hormel reported
poor results in its grocery products and specialty foods segments, which declined 21%,
while sales slipped 3% on record high prices for meat and soft sales. The age of the facility
was a factor in the decision to cease operations. President and CEO Jeffrey Ettinger said,
“We really had to make a determination: do we pour more money into that facility, or could
we utilize the capacities we have available in more modern grocery facilities elsewhere in
the US? And so we made that difficult decision for that reason.”705 The statement avoided
the “elephant in the room,” which is California law AB32, the “Global Warming Solutions
Act.” It’s likely that the law, which created the state’s costly cap-and-trade carbon-reducing
regulations, influenced the plant closure decision. The regulations are enormously costly
for food manufacturing plants because they increase the cost of energy used to bring in
raw food products, process and cook them at high temperatures, package the products
individually, cool and even freeze them, package them again for shipment, and ship to
customers. Left unsaid was need to retrofit the plant with new equipment required to more
easily endure the costs of the new regulations. See also a 2010 closure of a Hormel plant
in Turlock that also produced canned meat products.
Original Footware will begin new manufacturing operations in Tennessee where it will
invest $10 million and create 182 jobs. Original Footwear has facilities overseas, but as a
result of this project, a portion of the company’s production will be brought back to the U.S.
and housed in Morristown. Original Footwear recently acquired Tactical Holdings and
Operations, Inc. in Morristown. The company plans to capitalize on Tactical Holdings’
existing 110,000 square foot facility and add another 65,000 sq. ft. Original Footwear
supplies tactical footwear that combines a high level of performance and comfort for
members of the military, law enforcement, and emergency medical and service
professionals around the world.706 [Along with the reasons cited, it’s conceivable that the
location decision was influenced by lower business and employee costs, taxes and fewer
regulations in Tennessee leading to a reduction in expenses.]
116
San Mateo ↔
Burlingame
Arkansas >
Osceola
50
$35
NQF
#GR
#MA
}CDO
San Mateo ↔
Menlo Park
Colorado >
Louisville
NJR
N$R
27
#MA
#PB
#RD
}CDO
San Mateo ↔
Menlo Park
Iowa > Altoona
(near Des
Moines)
75
$500
476
#DC
#DO
#EN
#IT
#SM
}CDO
San Mateo ↔
Menlo Park
China >
Unknown
NJR
N$R
NQF
#EC
#MA
}OSO
}REL
San Mateo ↔
Menlo Park
Mexico > Tecate
40
N$R
NQF
#MA
#PB
}OSO
}REL
San Mateo ↔
Menlo Park
San Mateo ↔
Redwood City
Czech Republic
> Unknown
Louisiana >
Baton Rouge
NJR
N$R
NQF
600
N$R
30
#DO
#EN
#GA
#RD
#SO
}CDO
San Mateo ↔
Redwood City
Nevada > Reno
12
$1
NQF
#MA
}CLO
}REL
}OSO
}REL
BlueOak Resources – The company has broken ground for the first “urban mining
refinery” in the U.S. – one capable of retrieving valuable metals including gold, silver,
copper and palladium from e-waste. One of the speakers at the event was former Vice
President Al Gore, a partner at existing BlueOak investor, Kleiner Perkins. The Arkansas
facility will initially process 15 million lbs. of electronic scrap per year, with plans for
expansion, bringing 50 high-paying technical jobs to the area. Circuit boards, cell phones
and other electronics are made with sizable amounts of high-value metals that are
currently lost to landfills or handled in a hazardous manner overseas.707 It’s curious that
this facility wasn’t located in California, which presumably creates more such e-waste than
that area of the U.S. [It’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Arkansas leading to a
reduction in expenses.]
AntriaBio, Inc. – The biopharmaceutical company leased a 27,000-sq. ft. “comprehensive
facility which will allow the Company to conduct research as well as manufacture
microspheres for its lead product candidate AB101, a once-weekly basal insulin for the
treatment of diabetes.” Although its primary manufacturing and laboratory facility is now in
Colorado, the company’s HQ will remain in Menlo Park.708
Facebook will begin construction of the second phase of its $1 billion data center project in
Altoona, Iowa. The second building will be roughly the same size as the first, 476,000 sq.
ft., structure.709 As of 2014, 75 employees worked there.710 Note: Media reports about
Facebook’s capital investment in Altoona range from $1 billion to $1.5 billion. This report
takes the conservative approach and limits the calculation to $1 billion, spread evenly
between 2013 and 2014. [Note that data centers use significant amounts of electricity and
such costs are lower in Iowa than in California.]
TE Connectivity furloughed employees producing circuit protection components because
the company shifted the work to China. The Dept. of Labor didn’t identify the community in
that country, nor did it provide a figure for the number of jobs lost, but did indicate that
furloughs may have begun as early as Feb. 2, 2014. 711
Teleflex Inc. The Arrow International Division will move jobs from California to Mexico and
the Czech Republic over the next three years. Teleflex manufactures central venous
access catheters in Menlo Park.712 The California EDD reported to the Department of
Labor that an estimated 40 jobs could be affected. The DOT indicated that furloughs may
have begun as early as Feb. 23, 2014.713
Teleflex Inc. Division of Arrow International – See Teleflex Mexico 2014 entry for more
information regarding this event.
Electronic Arts, Inc. will significantly expand employment at their North American Test
Center at the Louisiana Digital Media Center on LSU’S Main Campus. The hub serves as
the permanent home of EA’s North American Test Center, or NATC, and the LSU Center
for Computation and Technology. EA will be the major private-sector tenant and occupy
30,000 sq. ft., roughly a third of the new space. Employment is expected to reach up to
600 people in the years ahead, with seasonal fluctuations corresponding to demand. EA
will occupy 30,000 sq. ft. of the 94,000-sq. ft. facility.714
Innovative Drive Corp. will relocate manufacturing and R&D to Reno. The company helps
start-ups realize their goals. When resources are stretched thin their team can provide
117
San Mateo ↔
Redwood City
Texas > San
Antonio
200
$3.5
30
#CH
#IT
#SB
#SO
}CDO
San Mateo ↔
Redwood City
Utah > Lehi
351
$6.1
46
#EN
#IT
#SB
}CDO
San Mateo ↔
Redwood City
Washington >
Seattle
100
N$R
17
#EN
#IT
}CDO
San Mateo ↔
Redwood City
Arizona > Tempe
150
N$R
20
}CDO
San Mateo ↔
Redwood City
Britain > London
NJR
N$R
NQF
#DO
#EN
#IT
#SB
#SO
}OSO
}REL
expertise in areas including creative design, complex FEA analysis and in-house
manufacturing. President Luke Clauson said tax savings, Nevada’s business-friendly
climate and talent pool as reasons for the relocation. Capital investment will exceed $1
million.715
Oracle Corp. plans to bring 200 jobs to San Antonio in the next two years and develop a
new operations center. The computer hardware and software developer already employs
workers in Texas and plans to add finance and contractual support service positions in San
Antonio. Oracle VP Randy Smith said the new facility will “serve a critical financial function
for our North America and Latin American businesses.”716 According to the Texas
Workforce Commission, the information technology industry in San Antonio continues to
grow steadily.717 The corporation will also spend $3.5 million “finishing off” 30,000 square
feet of office space, where it plans to locate internal financial management for its global
operations.718 [Along with the reasons cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Texas
leading to a reduction in expenses.]
Oracle Corp. plans to create about 351 jobs over the next 10 years and will also open a
new customer software support center in Lehi in Salt Lake County. Oracle enables its
400,000 customers in more than 145 countries eliminate complexity and simplify IT. “We
have been impressed by the high-tech growth in Utah and we’re pleased to be expanding
our presence here,” said Oracle VP of Real Estate and Facilities Randy Smith, calling the
state “the right place for us to grow.” The facility has an expected capital investment of
$6,142,500.719 Oracle will take a 46,000-sq. ft. space at the Traverse Ridge Center.720
[Along with the reasons cited, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes and fewer regulations in Utah leading to a
reduction in expenses.]
Oracle Corp., is opening a Cloud Development Center in Seattle, the first outside
California, where it will hire about 100 engineers to start; it expects to hire hundreds more
in the coming months and years. Prashant Ketkar, VP-Product Management for Oracle
Cloud, said that Cloud services is one of Oracle’s fastest growing divisions. Engineers in
the center will work on a broad range of cloud services including computing and big data
analytics for enterprise customers.721 The new office totals more than 17,000 sq. ft.722
[Along with the reasons cited, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes and fewer regulations in Washington leading to
a reduction in expenses.]
Reputation.com, a company specializing in online reputation management and digital
privacy technologies, is expanding its operations to a 20,000-sq. ft. facility in Tempe,
where it intends to hire 150 people in sales, publishing, IT and engineering. 723
Vodafone – The company is relocating its product and services innovation base designed
to help technology and software start-ups, known as Vodafone xone, from Silicon Valley to
London. The unit builds and tests prototype devices and apps. Vodafone hopes to tap into
the “wealth of technology skills and talent” in the UK and Europe.724 (Nearly simultaneously
with the California closure announcement, Vodafone launched a NZ$50m research
operation in Christchurch, NZ.) While Vodafone will retain a California presence, the
closure is “something of a U-turn for the company. The office was opened in September
118
San Mateo ↔
San Carlos
Minnesota >
Worthington
Santa Clara
↔ Cupertino
20
N$R
NQF
#HQ
#PB
#RD
}REL
Taiwan >
Unknown
NJR
N$R
NQF
#CH
#CP
#EN
#MA
#SC
}OSO
Santa Clara
↔ Cupertino
Oregon >
Prineville
NJR
N$R
NQF
#DC
#DO
#IT
#SO
}CDO
Santa Clara
↔ Cupertino
Washington >
Seattle
30
N$R
NQF
#DO
#IT
#SO
}CDO
Santa Clara
↔ Los Altos
Texas > Austin
200
N$R
20.8
#DO
#IT
#SO
}CDO
2011, with a brief to incubate startups and fast track their ideas.” Five staff were employed
in Redwood, and the London team is to expand from 12 to 20 people. The action was not
linked to last year’s sale of Vodafone’s 45% in America’s largest mobile phone network,
Verizon Wireless.725 The transatlantic move will allow Vodafone to reach a “pool of
technology talent in the U.K. and Europe” and “simplify” product development.726
Grazix Animal Health, a family of next-generation natural animal health products, will join
the Biotechnology Advancement Center in Minnesota and eventually move its entire
operation there. Randy Simonson, Grazix CEO, said, “We have distribution centers in
Europe, and are in talks with China and Brazil.” Plans are to expand in the new location.
“Right now the manufacturing and developing part of the product is still in San Carlos, but
the long-term goal is to bring the manufacturing to Worthington,” Simonson said.727 Grazix
expects to expand the facility and have 20 full-time positions in the future.728 Note: The
company relocated its HQ to Worthington, but with the date of the move being unclear that
event is combined with this one.729
Apple Inc. continues to look overseas as the company diversifies its suppliers. Under a
new contract, Taiwan Semiconductor Manufacturing Co. (TSMC) has begun shipping
microprocessors used in Apple’s smartphones and tablets. It’s unclear how many units
TSMC has shipped to Apple thus far. It’s likely the work will boost TSMC’s revenue as
Apple’s new microprocessor orders may account for 10% of revenue in 2014. Last year,
TSMC posted revenue of $19.87 billion. TSMC now supplants South Korea’s Samsung
Electronics, which had a lock on the orders. Apple and TSMC have also agreed to work
together on more advanced chips next year. Through the deal, TSMC adds a high-profile
customer that could help support expensive research investments in more advanced
technology. Apple’s technology will allow TSMC to produce more powerful and energyefficient chips to support increasingly sophisticated mobile-device functions.730
Apple has taken over a small hydroelectric project EBD Hydro near its new data center.
(See separate event in 2012.) The Oregonian reports: “Big data centers like the one Apple
has just opened in Prineville use huge volumes of electricity – as much as a small city – to
power thousands of computers....” It’s not clear if the facility is operating yet. Prior
proposals had described the project as generating 3 to 5 megawatts. That’s enough to
power roughly 2,000 to 3,500 homes, but big data centers can exceed 30 megawatts – and
really large complexes require significantly more than that.731 [Considering that data
centers use such significant amounts of electricity, note that costs for such are lower in
Oregon than in California.]
Apple Inc. confirmed that it is setting up a permanent software outpost in Seattle. At least
30 engineers are working for Apple in the area.732 One recruiting pitch said: “Ever wanted
to work at Apple, but didn’t want to live in Cupertino?”733 (The headline has since been
removed.) Update: As of November, Apple doesn’t have a permanent office quite yet, but
appears to be working out of a temporary space in Seattle’s Ballard neighborhood of
Seattle.734
Box Inc. (formerly Box.net) – The online file sharing and cloud content management
company selected Austin to expand its operations, its first U.S. location outside of the Bay
Area. The company spent more than a year on its site selection process and will move into
a 20,800 sq. ft. facility.735 The jobs will be in customer experience, finance and technical
119
350
N$R
2.2
#EN
#IT
#SO
}CDO
30
N$R
NQF
#MA
}CLO
}REL
Costa Rica >
Heredia
350
N$R
NQF
#MA
#QA
#RD
}CDO
}OSO
Santa Clara
↔ Mountain
View
Pennsylvania >
Pittsburgh
NJR
N$R
66
#DO
#EN
#IT
#SO
#SM
}CDO
Santa Clara
↔ Palo Alto
Puerto Rico >
San Jose
400
N$R
NQF
#IT
#SB
}CDO
}OSO
Santa Clara
↔ Milpitas
Louisiana >
Lafayette
Santa Clara
↔ Morgan
Hill
Illinois >
Galesburg
Santa Clara
↔ Mountain
View
operations. It plans to eventually employ 200 workers. The company claims more than 25
million users and operates offices in San Francisco, London and Japan. In March, Box
disclosed plans to raise up to $250 million in an initial public offering.736
Enquero Inc. plans to build its first Agile Delivery Center in Louisiana to provide enterprise
software products and services to commercial clients. Company executive Hemant Asher
said, “In evaluating various locations as potential homes to incubate Enquero’s first Agile
Delivery Center, we defined cultural fit, availability of relevant talent and infrastructure
readiness as our major criteria, Lafayette and the State of Louisiana far exceeded our
expectations from all dimensions.” The center is expected to create 350 new direct jobs
with an average salary of $64,300, plus benefits. Enquero will occupy about 2,200 sq. ft. of
space.737 It’s been said it’s the company’s “first bricks-and-mortar domestic outsourcing
site beyond Silicon Valley.”738
Pegasus Manufacturing Inc. – The precision-machinery manufacturing firm began hiring
in Galesburg with 15 employees beginning in March and another 15 later.739 CEO Ruth
Whitehead said, “Doing business in California – it just wasn’t a very business-friendly
environment. We had always wanted to move out of state.”740
Intel Corp. will consolidate it presence in Costa Rica and establish a Mega Laboratory for
testing new products, a “first of its kind” facility that will employ 350 people. Costa Rican
technicians and engineers will be responsible for authorizing and determining the efficiency
and quality of new Intel products prior to their manufacturing and distribution. Intel said that
this mega laboratory is unique for the company since it will concentrate most of the testing
activities and research in a single location, which will interact with the different plants and
operations of Intel around the world. The new project joins Intel Shared Services Center
and the Center for Engineering and Development, all together employing 1,500 people in
the country.741
Google Inc. will again grow in Pittsburgh, leasing an additional 66,000 sq. ft. in a new
office building, where software engineers and product managers work on search, ads and
ads-shopping products and core engineering infrastructure. (The new lease will put
Google’s Pittsburgh presence at more than 200,000 sq. ft.) Included will be a sky bridge,
allowing a convenient connection between the new space and existing Bakery Square
office and a 900-plus space parking garage.742 The expansion means room for up to
hundreds of new jobs,743 although as of September 2014 Google has yet to provide a
number. Also, an apartment complex totaling 350 units as well as mixed-use buildings will
be built as part of the complex.744 The group’s newest work is to detect and deter on-line
scams and also a project to enable automatic recognition of faces to ‘face unlock’ Android
phones.745
VMware, a worldwide provider in virtualization software, started operations in Costa Rica
in 2012 with three people in a shared services center. The number was expected to grow
in 2014 to about 250 employees, and continued growth means that by 2015 it will employ
more than 400 Costa Ricans. General Manager of VMware Costa Rica, Ariel Vargas, said
the company has specific plans to increase operations in the country over the coming
years. The announcement was made after an official promotion trip to the United States to
promote Costa Rica as a strategic hub for investment projects.746
120
Santa Clara
↔ Palo Alto
Washington >
Seattle
200
N$R
NQF
#EN
}CDO
Santa Clara
↔ Palo Alto
Arkansas >
Conway
200
N$R
NQF
#EN
#SB
#SO
}CDO
Santa Clara
↔ Palo Alto
Oregon >
Portland
100
N$R
38.3
#DO
#EN
#SB
}CDO
Santa Clara
↔ San Jose
Texas > Austin
50
N$R
NQF
#DO
#EN
#SO
}REL
Santa Clara
↔ San Jose
Canada >
Ontario, Toronto
1,700
$100
NQF
#EN
#IT
#RD
#SO
}CDO
}OSO
Santa Clara
↔ San Jose
Washington >
Bellevue
140
N$R
53
#DO
#EN
#RW
#SB
}CDO
Hewlett-Packard Co. is launching a broad cloud computing initiative in Seattle, where it
employs about 70 people and aims to hire as many as 200 more over the next 18 months.
Bill Hilf, HP’s SVP for cloud products and services, a Microsoft veteran, said, “We’re hiring
like gangbusters.” HP says it will invest $1 billion over the next two years “in R&D, cloudrelated product and engineering initiatives, professional services and expanding the global
reach of HP Helion.”747
Hewlett-Packard Co. will expand in Conway by establishing a regional Industry
Development Center, adding about 200 jobs to an existing facility. John Herzog of HP said,
“These new employees will fill important technical roles in software engineering, business
analysis and management in support of HP’s growing government and commercial
healthcare business across the United States.” The company cited the presence of three
colleges and universities, high-quality workforce and hundreds of existing HP employees
as drivers for the project.748 [Along with the reasons cited, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Arkansas leading to a reduction in expenses.]
SurveyMonkey, which had about 50 employees last year, today is at 80 people and plans
for another 20 new hires. So the company leased an additional 38,288 sq. ft. of office
space. “The Portland market is serving us well. We get good talent here,” said a
spokeswoman. All told, SurveyMonkey employs more than 300 workers. Portland
employees are mostly in customer operations, although there are some engineering jobs,
too. With the expansion comes the possibility of adding sales staff.749 SurveyMonkey
started in Portland but sold the business in 2009 and moved its headquarters to California.
Since then, SurveyMonkey has greatly expanded its Portland office.750 (An office
expansion in 2013 is excluded from this report because it appears to be a space
adjustment for a facility established earlier in Portland.)
Cyphre Inc., a.k.a. SVY Co. Inc. a.k.a. Servergy, an encrypted file-sharing company,
opened in Austin in September with plans to relocate its headquarters to the city,
employing 50-60 local workers by late 2016. “Our activities in Austin have really shaped
Cyphre,” CEO Lance Smith said. Cyphre has raised $28 million in investment capital in
three funding rounds from 400 private investors, requiring Smith to provide company
updates to his backers. “It’s like running a public company,” he said.751 The California
location appears to have been San Jose.752 By July 27, 2015, all personnel “have already
moved from California.”753
Cisco selected Toronto to locate an “Internet of Everything Innovation Centre,” a planned
investment of up to $100 million. The decision builds on its investments in Canada
including up to $4 billion over the next decade to expand its footprint in Ontario, create up
to 1,700 jobs, and establish research chairs, professorships and innovation centers at ten
Canadian universities. Cisco will occupy space in what is being called North America’s
“smartest office tower,” which will also be home to Cisco’s new Canadian headquarters.754
eBay in Bellevue has grown from 200 employees last fall to more than 340 employees
today. The online retailer acquired Seattle startup Decide.com last September, and the
Decide.com crew helped expand eBay’s presence at its new Bellevue location. The
company leased a 53,000-sq. ft. space in One Bellevue Center, and the new office
operates as one of the company’s “Centers of Excellence.”755
121
220
N$R
70
#EN
#SO
}CDO
7
N$R
NQF
#DN
}CLO
}REL
100
$22
138
#MA
#SC
}CDO
Washington >
Seattle
30
N$R
NQF
#DO
#EN
#IT
#SB
#SO
}CDO
North Carolina >
Durham
60
N$R
16.5
#DO
#EN
#IT
#SB
#SO
}CDO
Santa Clara
↔ San Jose
Oregon >
Portland
Santa Clara
↔ San Jose
Nevada > Reno
Santa Clara
↔ San Jose
Texas > Farmers
Branch
Santa Clara
↔ San Jose
Santa Clara
↔ San Jose
eBay, after acquiring Critical Path Software in 2010, will expand in Portland by adding
engineers. The Portland office is designated an eBay Center of Excellence, and staff there
will identify best practices there that can be tested and implemented in offices around the
world, including development centers in Seattle, Austin and Israel. The 70,000 sq. ft.
facility has become a hub for eBay’s mobile applications (including Andropid and iPhone)
and services for eBay’s Marketplaces, Classifieds, StubHub and Enterprise business
divisions.756 The office has grown to 200 employees, has 20 active job openings, and is
expanding space to accommodate another 122 employees.757 [Along with the efficiencies
resulting from the acquisition, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes and fewer regulations in Oregon leading to a
reduction in expenses.
Independent Salon Services – The wholesale distributor of hair care products and
cosmetics will relocate to Nevada. In so doing it will hire for full-time jobs in marketing,
customer service and boutique management.758 The company will continue to operate a
boutique store and distribution facility in San Jose. “I am excited to be relocating my
corporate office to Reno. This area offers major advantages to being a local resident as
well as a business owner. The significant tax benefits as well as the superior quality of life
have brought me back to the place I have always called home,” said Kymberly Helser,
company owner.759
Maxim Integrated Products Inc., a semiconductor manufacturer, expanded its Farmers
Branch campus by another 138,000 sq. ft., which could lead to more than 100 new jobs.
The 18.5-acre campus is the company’s second-largest in the country and will house about
500 of its 800 North Texas employees.760 To eliminate some confusion, note that
previously the company moved its HQ from Sunnyvale to San Jose.
Nutanix, a data storage and server company valued at more than $2 billion and has hinted
at an IPO in 2015, is opening an engineering office in Seattle where it plans to hire 30
employees dedicated to engineering efforts. “We know that Seattle has become another
hub of innovation and we want to be able to tap into the talent in the region,” said Kevin
O’Kane, director of talent acquisition at Nutanix. “We’re looking to make a big splash in
Seattle.” Nutanix is a B2B company that sells “converged infrastructure” solutions to more
than 800 enterprise customers like eBay, USPS, Concur, and the Department of Justice. 761
[Along with the reasons cited, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes and fewer regulations in Washington leading to
a reduction in expenses.]
Nutanix, a Silicon Valley-based tech storage firm, has moved into its new Durham facility
and is already planning an expansion that will double its local headcount. About 30
employees are at the office currently, and Kevin O’Kane, the San Jose-based director of
talent acquisition, said he expects that number to double in the next 14 months. “[Durham]
is a phenomenal hub for technologists and folks that are in our space,” O’Kane said. “So,
rather than try to uproot folks from North Carolina, we thought, ‘Hey, let’s bring an office to
them.’” The company already had a small office in Durham, but outgrew it. So it leased a
full floor, more than 16,500 sq. ft., space in another building.762 The new operation will
have a little bit of everything – from sales to research and development; an asset is the
facility’s proximity to the universities and tech talent at NetApp, IBM and EMC.763 [Along
122
Santa Clara
↔ San Jose
Nevada > Las
Vegas
80
N$R
63
#FP
#MA
}CDO
Santa Clara
↔ San Jose
Iceland >
Grundartangi
400
N$R
NQF
#GR
#MA
}CDO
}OSO
Santa Clara
↔ San Jose
Mississippi >
Hattiesburg
NJR
N$R
NQF
#GR
#MA
}CDO
Santa Clara
↔ Santa
Clara
Malaysia >
Penang
NJR
N$R
NQF
#MA
}OSO
}REL
Santa Clara
↔ Santa
Clara
Santa Clara
↔ Santa
Clara
Texas >
Grapevine
NJR
N$R
101.8
#DN
}CDO
Oregon >
Hillsboro
NJR
N$R
NQF
#CH
#MA
#RD
}CDO
Santa Clara
↔ Santa
Clara
Arizona > Tempe
250
N$R
25.6
#BF
#IT
#SB
}CDO
with the reasons cited, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in North Carolina leading to a
reduction in expenses.]
RW Garcia, a family-owned corn-based chip and snack maker founded in 1982, opened a
63,000-sq. ft. manufacturing plant in unincorporated Clark County near North Las Vegas.
“The business environment in Las Vegas really drew us in,” said Robert Garcia, RW
Garcia president and CEO.764 The new facility will enable the full production rate to
increase from 11 million pounds of chips per year to more than 62 million.765
Silicor Materials, Inc. (formerly Calisolar) – The company selected a site in Iceland for
its first large-scale solar silicon manufacturing facility. Silicor has engaged Iceland’s Arion
Bank to lead the debt financing for the plant, which would create as many as 400 full-time
jobs plus up to 100 construction jobs. Centra Corporate Finance will raise equity for the
project. The facility will have a capacity of 16,000 metric tons, with the ability to yield up to
19,000 metric tons of solar silicon each year. The Ministry for the Environment and Natural
Resources rapidly completed all environmental permitting.766
Stion Corp. is expanding in Hattiesburg where it will hire more employees, expand
operations from five days a week to seven, and schedule more shifts. Doing so will more
than double production capacity. Stion has invested more than $150 million so far in the
plant.767 That capital investment isn’t recorded in this event because it appears to be part
of the amount shown in the 2011 entry for this company in Hattiesburg.
Coherent, Inc., Laser Machining Tools (LMT) Business Unit, furloughed employees
involved in production of laser machining tools because the company shifted the work to
Malaysia. The Dept. of Labor didn’t provide a figure for the number of jobs lost, but did
indicate that furloughs may have begun as early as March 2, 2014.768
Hoya Vision Care, an optical lens firm, moved its distribution center to North Texas, into a
101,817-sq. ft. space near DFW. Hoya Vision Care is a U.S. firm owned by Hoya Corp. of
Japan.769
Intel Corp. reached proposed agreements with government agencies for the microchip
company to invest $100 billion in its Portland-area plants and facilities during the next 30
years. “That’s billion with a ‘B,’” said an elected official. The agreement is considered a jobretention program and the $100 billion represents new money that Intel expects to invest in
research, development and manufacturing on its Washington County campuses. Intel
began manufacturing in Oregon in 1974, and it’s now the largest for-profit employer in the
state with 17,500 employees. Oregon’s Intel sites are the largest the company operates.
The project is focused on investments for equipment replacement and on retaining
employees. The multimillion-dollar machinery used in its manufacturing process can
become obsolete within a few years as technology evolves.770 Note: It’s difficult to
determine how much of the $100 billion can be attributable to this report considering Intel’s
long-standing involvement in Oregon. Hence, the capital figure is excluded from this report.
SVB (Silicon Valley Bank) will launch a major expansion of the facility that it set up in
Tempe two years ago to support its global business. The bank will hire another 250
employees in finance and IT in the next three years. Over the next five years, SVB will lend
or invest $100 million to technology and life sciences companies in Arizona. The bank has
more than $29 billion in assets. Arizona is the top-ranked state in the country for
123
Santa Clara
↔ Saratoga
Texas > Austin
Santa Clara
↔ Sunnyvale
Oregon >
Portland
Santa Clara
↔ Sunnyvale
North Carolina >
Cary
Santa Clara
↔ Sunnyvale
Unknown >
Dispersed
Shasta ↔
Redding
Canada >
Unknown
50
N$R
NQF
#EN
}CDO
100
N$R
NQF
#EN
#IT
#RD
#SB
#SO
}CDO
1,237
$9
124.8
#EN
#IT
#RD
}CDO
52
N$R
NQF
#EN
#SO
}CLO
}DSP
NJR
N$R
NQF
#DO
#DN
}CLO
}OSO
}REL
entrepreneurial activity, according to the business magazine Fast Company.771 Tempe is
now home to the bank’s largest office outside of Silicon Valley.772 For its expansion, SVB
leased an additional 25,579-sq. ft. space in the Hayden Ferry Lakeside I office building in
Tempe.773 Startups in the area are supported by many accelerators and incubators that
work to provide technical expertise, mentoring and funding to support entrepreneurship
and growth.
Roku Inc. – The streaming-media company will open a development center in West
Austin. It could employ up to 50 software and hardware engineers. “We’re here to expand
our engineering efforts,” Scott de Haas, VP of the hardware engineering department, said.
“We have had difficulty hiring as many people as we want to hire in the Bay Area.”774 Roku,
meaning “six” in Japanese, was founded in 2002 by Anthony Wood, who, by the way,
invented the DVR.775 [Along with the reasons cited, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Texas leading to a reduction in expenses.]
Aruba Networks, which specializes in wireless enterprise network infrastructure,
expanded corporate functions in Portland including R&D, IT and sales support, with up to
100 employees. It will become a “substantial office” and Aruba intends to expand
“aggressively” with several hundred employees over time. Incentives weren’t the driving
factor for the location decision. Aruba was exposed to the Portland tech community while
purchasing Portland-based app maker Meridian and retained its team and Portland office
after the acquisition. Next, the company grew Portland operations and also is seeing a
strong pipeline of talent. “Portland is a desirable place, it’s an area that people want to
move,” said a company spokesperson, adding that employees in Sunnyvale have
expressed interest in moving up. It’s likely that some senior executive functions will also be
moved to the Portland office.776 [Along with the efficiencies resulting from the acquisition,
it’s conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Oregon leading to a reduction in expenses.]
HCL Technologies, an Indian IT services company with its U.S. HQ in Sunnyvale, is
placing a 1,237-job expansion while setting up a Global Development Center in North
Carolina. The center will be where staff will both research and develop software
applications. The jobs will average $51,653 in annual salaries. The move means a $9
million investment.777 HCL Technologies entered into a lease of more than 10 years to
occupy all of the space in a 124,800-sq. ft. office building.778
NARUS, a software company involved in cybersecurity, and a Boeing subsidiary,
furloughed 17 in November and 35 in December, for a total of 52 employees. The WARN
notice states “Closure Permanent.”779 One former employee stated, “Narus closed its
doors in December 2014.”780 Another wrote, “Company was dissolved.”781
XO Group Inc. – On Oct. 24, 2014, the company filed a Form 8-K announcing its plan to
cease operations at its Redding warehouse, a closure expected to be complete by the end
of the first quarter of 2015.782 A company filing with the Labor Department said the
eCommerce section furloughed employees and on-site leased workers producing
personalized wedding supplies because the company shifted the work to a foreign country.
It estimated that 94 jobs would be affected.783 The company’s flagship brand, The Knot, “is
124
Sonoma ↔
Petaluma
Idaho >
Pocatello
Sonoma ↔
Petaluma
Dispersed >
Unknown
Stanislaus ↔
Oakdale
Nevada > Sparks
Stanislaus ↔
Riverbank
Oregon >
Eugene
Stanislaus ↔
Salida
Unknown >
Dispersed
200
$75
500
#FP
#MA
}UTN
85
N$R
NQF
#MA
}CLO
}DSP
159
N$R
NQF
#MA
}REL
3
N$R
NQF
#DO
}REL
200
N$R
NQF
#SB
}CLO
}DSP
}REL
the authority on all things weddings, providing stylish planning information with a patented
registry search tool.”784
Amy’s Kitchen, a maker of organic, non-genetically modified convenience food, is
investing $75 million to upgrade a vacant plant in Idaho. Local manufacturing of macaroni
and cheese dinners should start in December, 2014. The company will initially staff the
500,000-sq. ft. facility with 200 full-time workers, but the workforce could eventually reach
1,000. Amy’s CFO and VP- Business Development Mark Rudolph said Amy’s considered
locating the new plant in California but wanted an existing facility to expedite its plans. The
company was founded in 1988.785 Amy’s offers many benefits to employees including
healthcare insurance coverage, on-site Family Health Centers for employees and their
families at production facilities, and scholarships for employees’ children.786
Brooks Automation, which produces equipment that allows cryogenic processes at
extremely low temperatures for semiconductor manufacturers and life science companies,
is shutting down its Petaluma facility. The plant is one of seven Brooks manufacturing
facilities in the United States, Mexico, South Korea and England. One reason given for the
Petaluma closure is that “nearly all the semiconductor makers today are based in Asia and
it has become too costly to install, modify and service such complex products so far from
where they are made.”787 Unfortunately, the statement obscures the cause-and-effect
nature of the situation – namely, what caused California to lose its leading position in
semiconductor manufacturing the point where the work is a shadow of its former self?
Petaluma has lost jobs in the past to offshoring when the company shifted work to
Malaysia, which is listed in this report as a 2012 event.788
Ball Corp. is the company that furloughed employees, but the event was sparked by
ConAgra. Details: Ball Corp cut 159 jobs at its can manufacturing plant where more than
half of the production was for a nearby ConAgra Foods facility. Cans have been
transported conveniently on a designated paved path from the Ball plant to ConAgra with
no effect on city traffic. However, ConAgra contracted with the Ardaugh Group of
Luxembourg and cans will now come from the Reno area where, last August, Ardaugh
opened a new plant. It’s estimated that the shift in production will result in 24 to 36
additional trucks per day on Oakdale’s roads due to the volume of cans being trucked in
from Nevada.789
Agent Evolution, a provider of real-estate themed website designs, has been acquired by
IDX, a real estate technology firm based in Oregon. With just three employees, Agent
Evolution is a small company, but IDX co-founder and CEO Chad Barczak said the
acquisition “will help us grow a whole new revenue stream.... We are not currently planning
to relocate existing employees, but we will only hire new employees in Eugene for this
company moving forward.”790
American Medical Response will close a medical billing operation in Salida and lay off
about 200 employees. The AMR center has handled billing for the company’s emergency
services in Northern California, Hawaii, Washington, Oregon, Nevada, North Dakota and
Idaho. In the future, most of such functions will be managed by Centrex Revenue
Solutions, a Florida-based outsourcing firm with offices in five states, India and the
Philippines. AMR is doing so partly because of the higher costs of business operations in
California, a spokesman said.791
125
Tehama ↔
Red Bluff
Nevada > Reno
NJR
N$R
NQF
#HQ
}REL
Unknown ↔
Unknown
New York >
Henrietta
103
$0.8
10
#BF
}UTN
Unknown ↔
Unknown
Idaho > Goodling
and Twin Falls
50
$82
NQF
#FP
#MA
}UTN
Unknown ↔
Unknown
Arizona >
Phoenix
100
$50
NQF
#FP
#MA
}UTN
Unknown ↔
Unknown
New York >
Poughkeepsie
1,000
$100
1,000
#GR
#HQ
#MA
}UTN
Unknown ↔
Unknown
Nevada > Reno
350
N$R
NQF
#DN
#FP
#MA
}UTN
VCSi a, canine services and training business, will relocate its global headquarters and
training center to Reno. Vigilant Canine Services International, or VCSi, cited proximity to
Reno-Tahoe International Airport for canine and handler transportation needs as well as
the state’s business-friendly atmosphere as factors contributing to its decision. The
company employs about 150 people with operations in 18 states and a regional training
center in Afghanistan, a breeding center in South Africa and a training academy in the
Philippines.792 Operations will remain in California and elsewhere.
Coast Professional – The Louisiana-based company was considering an expansion on
either coast, and chose New York over California.793 The student loan receivables firm will
lease a 10,000 sq. ft. space in Henrietta and add 103 full-time workers. One advantage of
the location is its proximity to another company facility. The company provides collection
services to 200 colleges, universities and guaranty agencies, and is a small-business
contractor for the U.S. Department of Education.794
Glanbia Foods, based in Ireland, will expand in Idaho and will hire about 50 more
workers.795 It will be an $82 million project for its cheese manufacturing and production
plants in Goodlina and Twin Falls, in the Magic Valley region of Idaho. Setting up a facility
in California was an option, but in December the company selected Idaho in part because
of its pro-business attitude.796
Leclerc Foods USA, a family-owned Canadian snack-food maker, will build a plant in
Phoenix and create 100 jobs. The company purchased a 165,000-sq. ft. building for its
sixth manufacturing factory where it will make organic and GMO-free nutritional bars. The
110-year-old food business also makes crackers and cookies. Phoenix will serve as a
strategic location to reach markets on the West Coast and in Mexico and South
America.”797 The company plans to invest about $50 million in the facility during the next
three years.798 After the plant was purchased for about US$45 a square foot, it was up and
running in six months. Leclerc Foods apparently had some discussions about locating in
California. Jean-Sébastien Leclerc, the U.S. director of sales, said, “We wanted to be close
to California, but not in it” even though the state represents a huge market. There are
about 350 Canadian businesses operating out of Arizona, up from about 80 just 10 years
ago.799 [It’s conceivable that the location decision was influenced by lower business and
employee costs, taxes and fewer regulations in Arizona leading to a reduction in
expenses.]
Linuo Solar Group Co., the Chinese company visited California before deciding to
establish its U.S. headquarters and manufacturing facility in Poughkeepsie, where former
IBM facilities were available. Initial plans included hiring up to 1,000 people and investing
$100 million in the operation, which will make solar panels, solar cells and solar hot-water
systems.800 This event was excluded from previous reports because as Linuo was buying
the 157-acre site and nearly 1 million sq. ft. of buildings, the solar industry was heading
into a time of overcapacity and plunging prices for panels and construction was delayed. It
was unclear whether the project would proceed. However, demolition and structural work
began in 2014, making it an active project.801
OLE Mexican Foods expanded and chose Reno as its central location for distribution to
their West Coast customers. It will open a new manufacturing facility and bring about 350
jobs to Reno in the next few years. Setting the stage for more growth, President Veronica
126
Unknown ↔
Unknown
Virginia >
Chesterfield
County
Unknown ↔
Unknown
2,000
$2,000
NQF
#GR
#MA
}UTN
Virginia >
Petersburg
376
$22.5
96
#PB
#MA
}UTN
Unknown ↔
Unknown
Georgia >
Atlanta
NJR
N$R
NQF
#BF
}UTN
Unknown ↔
Unknown
Colorado >
Denver
100
N$R
11.3
#BF
#HQ
}UTN
Ventura ↔
Oxnard
Virginia > Salem
50
$5.7
NQF
#EC
#MA
}REL
Moreno said, “We currently employ approximately 2,000 people, we hope to build a great
production facility and employ more than 500 people in Nevada. And while there is a lot to
do before we reach that number, we did it in Dallas and Atlanta, and we can do it in
Nevada.”802 Apparently, California sites were ruled out in favor of Nevada.
Shandong Tranlin Paper Co. Ltd. – The China-based company will build $2-billion ecofriendly paper manufacturing plant expected to employ 2,000 people by 2020. Its first U.S.
operation will boost area agriculture by using organic waste. The company takes wheat
straw and corn stalks and turn them into paper towels, toilet tissue, boxes and organic
fertilizers, and more. The company says the process does not expel an odor like paper
plants with older technology. Jim Cheng, a former Virginia Commerce Secretary, said the
company looked at California versus Virginia.803 The company bought 60 acres for $3
million as it begins to assemble an 850-acre facility.804
UniTao Pharmaceuticals LLC, a China-based pharmaceutical company, purchased a
plant in Petersburg where it will invest $22.5 million in a manufacturing operation and
create 376 jobs. A state official stated that Virginia competed against California for the
project. UniTao is a subsidiary of Shanghai-based Tenry Pharmaceutical Co., Ltd., which is
engaged in R&D, production and sales of pharmaceutical drugs, active pharmaceutical
ingredients, dietary supplements and food additives.805
Worldpay US, a payment processor, will expand in Atlanta. Earlier this year, CEO Tony
Catalfano said he had planned to put an important innovation arm of the company in
Silicon Valley (the community wasn’t disclosed) because of its mass of technology
workers. But he said Atlanta convinced him the city offered a robust tech community, too,
so the jobs will be in Atlanta. [Along with the reasons cited, it’s conceivable that the
location decision was influenced by lower business and employee costs, taxes and fewer
regulations in Georgia leading to a reduction in expenses.] The company plans to expand
from 600 employees to more than 1,200.806 For the purposes of this report, since it’s
unclear how much of the work had been intended for Silicon Valley, no jobs or capital
investment numbers are given here.
WorldRemit, a startup money transfer provider, will open a North American headquarters
and operations center in Denver. The London-based company plans to hire 100 there and
218 people by early 2020. According to CEO Ismail Ahmed, Denver is “gaining a
reputation as a go-to destination for the financial tech sector and stealing the thunder of
New York and Silicon Valley.” The firm received $40 million year from Palo Alto-based
Accel Partners, which also has backed Facebook, Spotify and Dropbox. It has leased
11,126 square feet of office space at in Denver. The new jobs are expected to pay an
average wage of $71,536. The company considered locations in California.807 [Along with
the reasons cited, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Colorado leading to a
reduction in expenses.]
Mersen USA, a subsidiary of Mersen SA, a graphite and electrical specialty company, will
invest $5.7 million in Virginia, will move its reactive metal equipment manufacturing
business from California, and will create 50 jobs. The company will add another large
production building as a result of the expansion. “Mersen is one of those companies tucked
away on the fringes of our city that goes about its daily business turning out million-dollar
127
Ventura ↔
Simi Valley
Washington >
Seattle
Yolo ↔
Woodland
Idaho > Caldwell
Jobs
Adjustment
6
N$R
NQF
#EC
#SO
71
$25
162
#HQ
#MA
132
}CLO
}REL
equipment with very few people knowing what they actually do,” said the City Manager.
Established in 1940, Mersen USA has nine production sites in seven states. Its customers
include chemical and pharmaceutical companies.808
MicaSense, a start-up that has developed a high-tech camera attached to small drone
aircraft, named RedEdge, is relocating. The company recently raised $2 million in initial
funding from French technology company Parrot. MicaSense developed software to
process satellite-quality imagery collected by the camera so growers will know more about
conditions that affect their crops. Data collected will allow early detection of stresses to
crops, including the effects of pests, fertilizer, lack of water, over-irrigation, excessive heat,
or early frost. Co-founder Gabriel Torres, who has a Ph.D. in aerospace engineering, said
there’s a substantial market in the agricultural sector, where low-cost unmanned drones
can easily access expansive fields and remote rural areas. MicaSense has some early
customers in Canada, where there is “a permitting process with very loose restrictions that
allows commercial operations.” The company is advertising five software engineering
openings in Seattle and hopes to expand later.809
Gayle Manufacturing Co. will move its manufacturing and headquarters to Idaho.810 The
company, which fashions steel beams for use in commercial buildings, will replace a
California plant with a bigger one in Idaho. Founder and CFO Jim DeBlasio plans to open a
$25 million plant near Caldwell. Gayle Manufacturing already employs more than 30
workers in a nearby Nampa plant, which will continue operating. Compensation, including
health and retirement benefits, averages about $82,000 per employee per year. The new
Caldwell plant would replace the California operation with more modern equipment,
doubled capacity and room to grow. DeBlasio started the company in his Sacramento
garage in 1968. He shares ownership with workers through an employee stock ownership
plan. Site selection is tricky, DeBlasio said, requiring rail access for receiving raw beams
and shipping finished beams.811 Gayle will offer its 71 California employees a chance to
relocate from California, will replace employees who don’t move, then hire 40 additional
workers over the next two years.812 The new fabrication plant would comprise 154,836 sq.
ft. and a future office building involving to offer was also planned, comprising 7,200 sq. ft.,
for a total space of 162,036 sq. ft. The plant is scheduled to start operations in 2016 with
50 employees; at capacity would employ 100. A 12-car rail spur will provide access for rail
shipping and receiving.813 [Along with the reasons cited, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Idaho leading to a reduction in expenses.]
Fisher Investments job growth in Camus, Washington – see note in 2010 entry.
128
Chapter 18: Details Regarding 2013 Disinvestment Events
California Disinvestment Events for 2013 as shown in Table 17 are self-explanatory. Quite often in public domain sources
information was lacking about jobs, capital investments and square footage. In such cases, the following codes will appear:
NJR – No Job Number Reported
N$R – No Capital Investment Reported
NQF - No Square Footage Reported
Table 17: California Disinvestment Events for 2013
Jobs
Private
Capital
(million)
Function
or
Industry
Codes
Event
Type
22
#EC
#HQ
}REL
$90
275
#FP
#MA
}CDO
60
$3.2
60
#MA
}REL
221
N$R
NQF
#PB
#RD
}REL
California
County &
Locality
Destination
Location
Alameda ↔
Emeryville
Texas > Dallas
NJR
N$R
Alameda ↔
Emeryville
Idaho > Twin
Falls
250
Alameda ↔
Emeryville
Nevada >
Minden
Alameda ↔
Emeryville
Massachusetts >
Cambridge
Sq. Ft.
(000)
Information Available through Public Domain Sources
Ciao Telecom, a global telecommunications provider, will relocate its North American
headquarters to Dallas to a 22,000 sq. ft. space. The company also has offices in New
York, Miami and San Francisco, as well as in Italy, Brazil and England. 814
Clif Bar & Co. – The family- and employee-owned maker of organic food and drinks will
build a new state-of-the-art bakery in Idaho to make CLIF Bars and CLIF Kid Zbars. The
facility will be constructed on nearly 90 acres and cost an estimated $90 million; when fully
operational, it will create 250 jobs. The bakery is being designed to scale over time with the
total capital investment potentially reaching $160 million, while providing up to 450 highquality full-time employment opportunities. “From the moment that we first stepped foot in
Twin Falls, we felt an immediate connection with the city’s people, natural surroundings
and community,” said Kit Crawford, co-owner and co-chief visionary officer of Clif Bar &
Co.815 It will be a 275,000-sq. ft. facility.816
New Logic Research Inc. – The maker of industrial filtration systems is moving
manufacturing to Nevada, into a 60,000 sq. ft. building that will start operating before the
end of 2013. It may employ as many as 60 people within five years.817 The company will
invest an estimated $3.2 million in capital equipment and purchasing a facility. New Logic
Research employs many engineers and their relations with the University of Nevada, Reno
and the head of their Engineering Department played a major role in their decision to move
to Nevada.818 The 25-year-old company’s products are sold internationally.
Novartis AG, a pharmaceutical firm, will cut employment in California while adding 175
jobs at the Novartis Institutes for BioMedical Research in Cambridge. The jobs will include
new hires along with researchers moving from Emeryville, where it is shutting down a
129
Alameda ↔
Emeryville
Texas > Austin
NJR
N$R
NQF
#GA
#SO
}CDO
Alameda ↔
Fremont
Colorado >
Pueblo
NJR
N$R
NQF
#MA
}CLO
}REL
Alameda ↔
Fremont
Nevada > Sparks
12
$2.8
NQF
#DN
#HQ
#PB
#MA
}CLO
}REL
Alameda ↔
Fremont
New York >
Buffalo
475
$700
137.5
#GR
#MA
}CDO
Alameda ↔
Fremont
New York >
Buffalo
375
$750
137.5
#GR
#MA
}CDO
Alameda ↔
Fremont
Costa Rica >
Coyol
NJR
N$R
NQF
#MA
#PA
}OSO
}REL
Alameda ↔
Fremont
Minnesota >
Maple Grove
NJR
N$R
NQF
}REL
cancer research program. The company may begin adding researchers again – in
Massachusetts and elsewhere – as early as 2014.819 A total of 221 California employees
were furloughed.820
Wargaming America, Inc. – The software developer of free multi-player online games
selected Austin as its global services hub, which will “house heads of business intelligence,
global design services and central technology, with the option to expand in other areas.”821
Brett Close, SVP engineering and GM of the Austin office, said, “It’s much cheaper than
most other game development hubs like San Francisco and a great place to live and
work.”822
KMG Chemicals, Inc. – The provider of specialty chemicals will close its Fremont site and
shift manufacturing to Colorado and also to Hollister, Calif. The Fremont site, acquired
when KMG purchased OM Group’s Ultra Pure Chemicals, makes and packages a variety
of chemicals for the semiconductor industry under the Cyantek name. The transfer of
production to other locations will begin by the end of 2013.823
Neo Medical, Inc. – Will relocate headquarters, manufacturing and distribution to Nevada.
President, Tim Duvall cited Nevada tax savings, specifically after the imposition of the
Affordable Care Act Medical Device Tax to begin in 2013 as a main reason for the move.
The company is known for its safety needle technologies, long-term and products for
neonatal, pediatric and adult patients. In five years, Duvall projects capital investment will
reach $2.8 million, adding 12 full-time employees in Sparks, with operations underway by
March 2013.824
Silevo (later acquired by SolarCity) will locate a major part of its operations in Buffalo.
The company, which produces silicon solar cells and modules, has an established
manufacturing plant in China. Phase 1 of Silevo’s project, a more than $700 million
investment, will create at least 475 jobs in a 200 megawatt production facility. It will be its
sole North American manufacturing operation. Cooperating in the project is the State
University of New York Research Foundation. Silevo will share a 275,000-sq. ft. facility
with Soraa,825 but it’s unclear how much space will be dedicated to which company; hence,
for the purpose of this report, it’s split 50-50.
Soraa – The manufacturer will invest $750 million to build a LED (lighting) fabrication plant
where the company’s capabilities will expand as will product innovation. The company has
a partnership with the SUNY College of Nanoscale Science and Engineering. Soraa was
founded in 2008 and continues to operate an LED fabrication plant in Fremont,
California.826 The new facility is expected to employ 375 employees. Sorra will share a
275,000-sq. ft. facility with Silevo,827 but it’s unclear how much space will be dedicated to
which company; hence, for the purpose of this report, it’s split 50-50.
Boston Scientific Corp., a Massachusetts-based company, will move assembly work to
plants in Costa Rica and Maple Grove, Minn., near Minneapolis-Saint Paul. The company
stated that it’s “continuing to find ways to reduce our manufacturing footprint. We’re looking
for ways to run the company as lean as we can while we invest in new markets.”828 The
Costa Rica facility manufactures products the company’s cardiology, urology, endoscopy
and peripheral intervention divisions.829
Boston Scientific Corp., relocated work to Minnesota. See the 2013 entry for this
company for Costa Rica for more information about this event.
130
Alameda ↔
Livermore
Mexico >
Monterrey
46
N$R
NQF
#EC
#MA
}OSO
}REL
Alameda ↔
Pleasanton
Nevada > Reno
60
N$R
15
#BF
#CP
#DO
#SB
}CDO
Butte ↔
Chico
Contra Costa
↔ Richmond
Iowa > Iowa City
5
N$R
NQF
NJR
N$R
NQF
#GR
#HQ
#MA
#PL
}CLO
}OSO
}REL
Contra Costa
↔ Walnut
Creek
Nevada > Reno
41
N$R
NQF
#HQ
#SB
}REL
Fresno ↔
Fresno
Unknown >
Dispersed
543
N$R
NQF
#BF
}CLO
}DSP
Los Angeles
↔ Azusa
Arkansas >
Arkadelphia
172
$5.4
NQF
#FP
#MA
}CLO
}REL
Los Angeles
↔ Beverly
Hills
Colorado >
Denver
12
N$R
NQF
#FP
}CLO
}REL
Great Britain >
Worksop
}REL
Valmark Interface Solutions, subsidiary of Nidec Motor Corp., furloughed employees
producing labels, panel overlays, and membrane switches because the company shifted
the work to Mexico. The Dept. of Labor indicated that furloughs may have begun as early
as Feb. 20, 2013.830
Blackhawk Network opened a 130-seat support center in Reno to house three divisions.
“It’s the company’s first service center in the United States,” said CEO Bill Tauscher, a
“flagship site.” It will also house the risk division and desktop support division.831 The
company supports the management and distribution of financial products, gift cards and
prepaid telecom products across a global network of financial service providers, retailers
and mobile wallets. It services the T-Mobile Visa Prepaid Card, issued by Bancorp Bank.832
Apparently 60 jobs were created833 in the 15,000-sq. ft. facility.834 Blackhawk Network
Holdings, Inc. is owned by Pleasanton-based Safeway Inc.835
Shasta QA – For more information, see the Redding entry for this event.
MBA Polymers – The durable goods recycler is closing its headquarters and pilot-scale
plant in California and moving operations to its facility in England. Along with hosting the
R&D work, Worksop will become the company’s new headquarters. The company has
reprocessing plants in England, Austria and China.836 As an aside, the President and
Founder of MBA Polymers, Dr. Mike Biddle, gave an extraordinary TED Talk on the
company’s story regarding its plastics recycling solutions for sustainability.837
4506-Transcripts.com – The division of Private Eyes, Inc. relocated its headquarters,
stating: The company noted: “Reno is only a few hours from major California markets, yet
provides the pro-business and quality of life balance necessary for most business owners.”
The service provider will hire 41 new employees; the labor pool including university
students with customer management and technology skills influenced the move. The
transcripts company verifies income through the IRS for mortgage brokers, banks, lenders,
and employers on candidates and borrowers.838
Bank of America – The bank will close a call center in northwest Fresno in August of next
year. The facility fielded calls from the bank’s consumer-banking customers. The call
center opened in 2000 with 475 employees.839 A notice to the state showed 543
employees in Fresno furloughed as of Aug. 31, 2013.840
Vikon Farms – The poultry processing company will move all operations – hatching,
growing and processing – to southwest Arkansas, where it will invest $5.4 million. A sales
office will remain in California. President/CEO Quan Phu declined to say how many
workers will lose their jobs when the company relocates its business away from the west
coast, but he said they will add more jobs in Arkansas (172) than are being lost in
California.841 Vikon produces a specialty breed of chicken that serves Asian markets.842
Some call the product “Buddhist-style poultry” – “It is pretty much the most organic, freerange chicken you can come by,” said a customer.843
Marley Coffee – The company will move headquarters to Colorado. Rohan Marley, the
founder and chairman of Marley Coffee and a son of reggae singer Bob Marley, said,
“Denver has the pulse on the organic movement It’s always been my vision to bring all our
people together and Denver was on the top of our list. It’s centrally located and the
sustainable vibe of the city resonates with what we’re trying to achieve.” With the move, 12
131
800
N$R
NQF
#AE
#DF
#RD
}CLO
}DSP
}REL
Mexico >
Tiajuana
20
N$R
NQF
#CL
#MA
}OSO
Los Angeles
↔ El
Segundo
Indiana >
Seymour
9
N$R
NQF
#HQ
}CLO
}REL
Los Angeles
↔ El
Segundo
Texas >
McKinney
170
N$R
500
#AE
#DF
#EC
#HQ
}CLO
}REL
Los Angeles
↔ Long
Beach
Thailand >
Unknown
160
N$R
NQF
#EC
#MA
}OSO
}REL
Los Angeles
↔ Long
Beach
Multiple
Locations – See
separate entries
250
N$R
NQF
#AE
#DF
#EC
#EN
#RD
#SO
}REL
Los Angeles
↔ Carson
Unknown >
Dispersed
Los Angeles
↔ Commerce
Los Angeles
↔ El
Segundo
Orange ↔
Seal Beach
employees will be added in sales, marketing, design, business development and human
resources. In July 2009, the company’s name was changed to “Jammin Java Corp.,” with a
d/b/a of Marley Coffee.844 [Along with the reasons cited, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Colorado leading to a reduction in expenses.]
Northrop Grumman will close its Carson as the company works to reduce facilities and
cut costs. The work will be moved to other facilities in phases starting this year. Almost 800
workers, including engineers and scientists, will be affected by the move. The company
said hundreds of positions are being relocated to points in California, Alabama, Virginia
and Maryland, but it’s unclear how many positions would be shifted to which locations.845
The campus, often referred to as the Dominguez Hills facility, was built in 1987 for TRW
Inc. Northrop acquired TRW in 2002.846
Passion Splash LLC furloughed employees producing screen printed apparel/silkscreening because the company shifted the work to Mexico. The Dept. of Labor didn’t
indicated that furloughs may have begun as early as Aug. 7, 2013.847
Cereplast Inc. – The headquarters will close in May, resulting in a savings of $600,000
annually, a “substantial” amount for the company. “At this stage of the game, it definitely
makes sense to concentrate all of our operations under one roof, and cost is a big factor,”
CEO Frederic Scheer said. “Indiana is definitely less costly than California. The cost of
[California] real estate is very high, and because of the cost of real estate being high it
definitely has an impact on the cost of employment.” Cereplast has been a California
company since 2001.848
Raytheon Space and Airborne Systems – The headquarters of this $6 billion business
unit of Raytheon will relocate. The Waltham, Mass.-based electronics, mission systems
and aerospace technology parent company already has a presence in McKinney. The
company didn’t provide details on the number of jobs. Real estate sources say the move
will bring about 170 jobs, which have an average salary of $250,000.849 It’s building a
500,000-sq. ft. facility in the area.850
M/A-Com Technology Solutions furloughed employees in Long Beach and on-site
leased employees producing RF power semiconductors and modules used in
communications, avionics, and radar because according to the California EDD the
company shifted the work to Thailand. The Dept. of Labor didn’t identify the community in
that country, nor did it provide a figure for the number of jobs lost, but it indicated that
furloughs may have begun as early as July 9, 2013.851
Boeing Co. / Boeing Research & Technology (BR&T) divisions in Southern California
are expected to lose nearly 300 of their 700 employees over the next two years. Affected
sites include El Segundo, Long Beach [in Los Angeles County] and Seal Beach and
Huntington Beach [in Orange County].852 As the centers are established, employee totals
are expected to grow between 300-400 each in Alabama, Missouri and South Carolina
while jobs in California are expected to decrease.853 According to Boeing, the new
research centers will consolidate technology development of strategic importance to the
company over the long-term – up to 30 years into the future. Note: This entry has a
different format because the relationship is unclear between the four California locations
that lost jobs and the three out-of-state locations that gained those jobs. For example, did
132
Orange ↔
Huntington
Beach
Los Angeles
↔ Los
Angeles
the Long Beach jobs go to North Carolina, Alabama or Missouri? Or were they spread
among all three states? WARN notices fail to specify such detail. Hence, these events are
reported in a generalized manner.
Texas > Dallas
300
N$R
30
#SB
}CDO
Los Angeles
↔ Los
Angeles
Unknown >
Dispersed
270
N$R
NQF
#GR
#MA
}CLO
}DSP
Los Angeles
↔ Los
Angeles
New Hampshire
> Salem
24
N$R
8
#PB
#RD
}REL
Los Angeles
↔ Los
Angeles
Georgia >
Bloomingdale
1,000
$90
NQF
#ET
}CDO
Account Control Technology Inc. (ACT) – The debt management and recovery solutions
firm located in the Canoga Park section of L.A. will expand operations to Dallas with a new
30,000-sq. ft. call center. It will hire up to 300 agents. ACT selected Dallas for its latest
office in part because of the company’s positive experience conducting business in Texas.
Also, ACT will continue to maintain its existing call center in San Angelo, which is in west
Texas.854 [Along with the reason cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Texas
leading to a reduction in expenses.]
Coda Automotive went bankrupt and closed its Los Angeles headquarters after having
been showered with praise, and money, by California politicians. Gov. Jerry Brown
traveled to Los Angeles for the opening of the headquarters of the company that was
introducing the CODA Sedan, which had new battery that would supposedly deliver
superior performance. About 650 high-tech jobs were expected to be created in Los
Angeles. “To the naysayers, we’re saying yes to solar, yes to CODA,” Brown said. “We’re
saying yes to a Los Angeles that’s on the move.” City Council President Eric Garcetti had
been influential in offering $1 million in city funds to lure CODA’s HQ from nearby Santa
Monica even as he received contributions from CODA executives and their spouses. An
excellent LA Weekly story reported that the company “never got close to its goal of 650
employees, topping out at about 270 before it began laying off workers.... It appears the
company has sold fewer than 100 cars .... John Gartner, an analyst at Pike Research,
[said], ‘On the automotive side, it seems like there’s not much of a future for them.’ The
city’s contract calls for CODA to refund its money in full if it moves to another city within
five years. But the contract makes no provision for reimbursement if CODA goes
bankrupt.”855
Gamma Medica Inc. (formerly Gamma Medica Ideas) – The breast imaging company,
located in the Northridge section of Los Angeles, was in bankruptcy. Jim Calandra, a New
Hampshire consultant, who was hired to turn it around, brought it back to New Hampshire,
where he is now the CEO of 24 employees, going on 30. It has FDA approval for its
technology, $16 million in financing through a health-care equity firm, and occupies 8,000sq. ft. of leased space.856 A year earlier, the company was a winner of the Los Angeles
Business Journal’s 2012 Patrick Soon-Shiong Innovation Award, which honors and
acknowledges people and organizations in the area that continue to stretch boundaries.857
Medient Studios, Inc. – The company, located in the Hollywood section of L.A., will
develop a movie studio, entertainment facility and campus about 15 miles from the
Savannah-Hilton Head International airport.858 The $90 million cost includes everything
needed to make movies, including $10 million to lease the land, $40 million for equipment
and $40 million for buildings.859 The company stated that it is a global film production and
distribution company with a presence in North America, Europe and India and has
produced or financed in excess of 250 movies. It received approval for beneficial
133
100
N$R
NQF
#MA
35
$8
12
#DO
Mexico >
Chihuahua
NJR
$135
NQF
#AU
#MA
}CDO
}OSO
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Montebello
Arizona >
Phoenix
NJR
N$R
NQF
#MA
}CDO
Mexico > Tijuana
73
N$R
NQF
#AU
#MA
}OSO
Los Angeles
↔ Pacoima
Georgia >
Norcross
92
N$R
NQF
#MA
}CLO
}REL
Los Angeles
↔ Palmdale
Texas > Weir
NJR
N$R
34
#DN
#SB
}REL
Los Angeles
↔ Los
Angeles
China >
Unknown
Los Angeles
↔ Los
Angeles
Texas > Austin
Los Angeles
↔ Los
Angeles
}OSO
ownership of 1,560 acres of property in Effingham County, with an option to purchase title
to the property.860
Paramount Fitness Corp., subsidiary of National Credit Corp., furloughed employees
producing commercial exercise equipment because the company shifted the work to
China. The California EDD reported an estimate of 100 jobs to be lost to the Department of
Labor. The DOL didn’t identify the community in that country, but indicated that furloughs
may have begun as early as March 21, 2013.861
Resignation Media is moving its headquarters from the Venice Beach section of Los
Angeles to Austin. The company will renovate a 12,000-sq. ft. building and will spend $8
million in the next five years to do so. Co-founder/CEO Leo Resig said, “We needed to find
a location that could support the expansion of our brand.... Austin’s pro-business climate,
decent cost of living, tax structure and dedication to its growing technology community are
what drew us to the city,” The company is also ramping up its e-commerce site,
TheChivery.com. Brothers John and Leo Resig created Resignation Media in 2008. They
now own several websites including theCHIVE.com, theBERRY.com, theTHROTTLE.com,
theBRIGADE.com and an e-commerce site, TheChivery.com.862 A total of 35 employees
will relocate to Austin.863
Superior Industries International Inc. – The automotive wheel manufacturer will break
ground on a new facility in Mexico, a move that will increase its wheel production
capabilities 15% to 20%. CEO Steven J. Borick said, “margins in the United States
continue to be a difficult task.” That’s one reason the company decided to build
manufacturing space in Mexico instead of in the United States, he said. “It makes a lot
more sense economically to build new capacity in Mexico, where we know we have greater
margin opportunities.”864 Investment in the plant will be up to $135 million.865
Villa Dolce Gelato – Manufacturing expanded to Phoenix around March 2013.866 The
types of jobs in Phoenix listed on a job board are in manufacturing.867
Katzkin Leather, Inc. furloughed employees and on-site leased workers producing leather
interiors for car and light trucks because the company shifted some of the work to Mexico.
The Dept. of Labor indicated that furloughs may have begun as early as Sept. 8, 2013. 868
Natural Balance Pet Foods Inc. is ending manufacturing in Pacoima to move it out of
state now that the company has been acquired by Del Monte Corp. The end of operations
means 92 employees will lose their jobs. The company’s nearby corporate headquarters
and distribution center are remaining and are unaffected. Pacoima has been the site of
Natural Balance’s operations since the it was founded in 1989. Natural Balance will move
production to a more advanced contract facility in Georgia, but for competitive reasons
won’t disclose the location.869 By 2014, it became apparent it had selected Norcross,
Georgia.870 [Along with efficiencies resulting from the acquisition, it’s conceivable that the
location decision was influenced by lower business and employee costs, taxes and fewer
regulations in Georgia leading to a reduction in expenses.]
Ace Canopy – The subhead in the company’s news release said it all: “Leading California
canopy tent, manufacture and supplier Ace Canopy moves to Texas in order to save
money and expand.” The decision was based on several factors, including state income
tax and business logistics. Ninety percent of the business will be moving to Weir, about 20
134
170
N$R
NQF
#CP
#DN
}CLO
}REL
Nevada > Las
Vegas
75
$2.2
20.2
#HQ
#PA
}REL
Florida > Miami
15
$3
NQF
#CL
#HQ
}REL
Malaysia >
Unknown
114
N$R
NQF
#MA
#PB
}OSO
Los Angeles
↔ Torrance
Michigan >
Pontiac
114
$50
34.5
#AU
#EN
#GR
#MA
}REL
Los Angeles
↔ Torrance
Ohio > Marysville
50
N$R
NQF
#AU
#MA
#SB
}REL
Los Angeles
↔ Pasadena
Ohio > Zanesville
Los Angeles
↔ Santa Fe
Springs
Los Angeles
↔ Santa
Monica
Los Angeles
↔ Slymar
miles North of Austin. The new 34,000 sq. ft. facility will accommodate the warehouse, a
retail store and office. References in the company’s announcement about taxes – e.g.,
“Texas also does not have state income tax. California’s maximum state income tax is
currently 10.3% -- suggest that the HQ also is relocating.871 However, Ace Canopy is a
division of Abadak Inc., which is also based in Palmdale.872 Perhaps a co-location is the
reason the future site of Ace Canopy’s HQ was left vague in its announcement.
Avon Products Inc. will close its 353,000-sq. ft. distribution center that employs about 170
workers plus support staff in HR, administration and finance. It’s unlikely they will be able
to stay on with Avon; orders will transition to Zanesville to be processed. The Pasadena
center opened in 1946. With $11 billion in annual revenue, Avon is the world’s largest
direct seller, marketing in more than 100 countries through more than 6 million
independent sales representatives.873
Shears Litho, Inc. – The custom printing company relocated its headquarters to Southern
Nevada where it will invest $2.2 million in equipment and expand to 75 jobs. An estimated
75% of its market is outside Nevada.874 The company leased 26,206 sq. ft. of space.875
Sundek – The international swimwear company relocated its U.S. headquarters.876
St. Jude Medical Inc., Pacesetter Inc. furloughed employees and on-site leased workers
producing cardiovascular medical devices and related devices because the company
shifted the work to Malaysia. The furlough figure is from a Los Angeles city employee
report to the Dept. of Labor. The Dept. of Labor didn’t identify the community in that
country, but did indicate that furloughs may have begun as early as June 23, 2013.877
General Motors will relocate its Torrance plant dedicated to alternative-fuel vehicles to
Michigan. The Advanced Technology Center, which employs 114 people, will move by the
end of 2014. The center helped create the technology used in GM’s EV1, a massproduced electric vehicle. Certain testing will remain in California.878 The project will
require GM to spend $200 million on a new 138,000 sq. ft. test wing at its Global
Powertrain Engineering Headquarters.879 When the consolidation of facilities from several
locations is complete, GM will have added about 400 jobs to the Pontiac campus.880 With
Torrance employment making up about 25% of that total. [Along with efficiencies resulting
from consolidation, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Michigan leading to a
reduction in expenses.]
Honda, the Japanese automaker, will relocate about 50 leadership and support jobs to
Marysville, Ohio, near Columbus where it makes the Accord and other vehicles. Last year
the company announced plans to have its North American operation play a greater role in
the global business, and the move to Ohio is a next step in that process. The move will
“more efficiently group our regional executive management in one location close to our
major manufacturing, purchasing and R&D centers in the region,” said a spokesperson.
“So, in that sense the North American regional leadership function of Honda’s North
American management will be in Ohio.” Sales, marketing and other operations will stay in
Torrance. Honda also will form a new services company based in Marysville. The move will
start April 1, 2013 and continue through next year. In the last four years the company has
135
Los Angeles
↔ Vernon
Texas > San
Antonio
Los Angeles
↔ Walnut
Washington >
Bellingham
Marin ↔
Novato
Wyoming >
Jackson
Mendocino ↔
Ukiah
Nevada > Reno
Merced ↔
Livingston
Texas > Irving
25
$3
NQF
#FP
#MA
}CLO
}REL
NJR
$3
NQF
#EN
#IT
}REL
20
N$R
NQF
NJR
N$R
NQF
#HQ
#MA
}CLO
}REL
37
N$R
NQF
#MA
#PB
}OSO
}REL
invested more than $1 billion in Ohio.881 Honda has been low-key about the move of some
headquarters-type jobs from Torrance to Marysville.882 [Along with efficiencies resulting
from reorganization, it’s conceivable [that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Ohio leading to a reduction in
expenses.]
Lulu’s Dessert Corp. – Maria de Lourdes Sobrino, CEO of Lulu’s Dessert Corp., started
the company, which makes gelatin dessert products, in California about 30 years ago. She
relocated it to San Antonio. Manufacturing will start with 25 to 30 workers in January,
2013.883 The Orange County Business Journal honored her as an Outstanding Business
Leader at its Annual Women in Business Awards event in 2000.884
CyberWatch West – A consortium of West Coast organizations – which include Cal Poly
Pomona, Cal State Dominquez Hills, and Cal State San Bernardino – was awarded a $3
million grant from the National Science Foundation to establish a cybersecurity center.
similar to what is already in effect on the East Coast. The CyberWatch West center will
move from its current California location to the Whatcom Community College campus in
Bellingham. WCC President Kathi Hiyane-Brown said, “Naming Whatcom as the lead
institution acknowledges our expertise in the field of cybersecurity education and the ability
of our faculty and staff to advance the NSF-funded project.”885
William E. Wecker Associates – The high-powered consulting firm has been relocating
from Marin County to Wyoming. Twenty employees, most of whom have doctoral degrees
in mathematics or master’s degrees from prestigious schools such as MIT, are following.
This is an example of how a location doesn’t require much more than a good airport and a
fast Internet connection. The company, founded in 1990, bills itself as providing “statistical
and mathematical consulting services” and “data analysis.” It works with pharmaceutical
companies and also has worked on safety and environmental issues. “We happen to be a
company that can do our business from anywhere in the world,” company President
William Wecker said. External factors, such as taxes and regulations, and Wyoming’s
conservative spending policies and healthy budget, were attractive, and played a part in
the relocation. But Wecker said the decision was based largely on an attraction to Jackson.
The move has been a quiet one. “We’re kind of as exciting as a roomful of librarians,”
Wecker said.886
Flaresun Fire Group Inc. – “When you get out of the research-and-development phases,
California is right on you,” said Lisa Mortimeyer, CEO of the company that develops
specialized fire and rescue equipment. After citing Nevada’s tax advantages as the reason
to relocate the company’s headquarters, she says the two-year-old company now is
looking to consolidate its operations in Reno.887 “Nevada has welcomed us with open
arms,” she said. “Reno has a friendly vibe, not the standoffish arrogance California has
when you’re trying to start a business.”888
Fresenius Manufacturing USA, f/k/a Fresenius Medical Care NA. The Merced Sun-Star
reported the company will close its plant, which produces a concentrate that’s used for
dialysis therapy, after 22 years in Livingston; 37 workers will be furloughed, and in 2014
the manufacturing will move to Texas. The work is being consolidated to better leverage
company resources and operational processes.889 [Along with the reasons cited, it’s
136
Merced ↔
Merced
Texas >
Lampasas
10
$1
13
#CS
#HQ
}CLO
}REL
Monterey ↔
Monterey
Minnesota >
Bloomington
18
N$R
NQF
#DO
#IT
#SM
}REL
Monterey ↔
Monterey
Illinois > Chicago
20
$2.35
16.1
#HQ
#MA
}CLO
}REL
Napa ↔
Napa
India > Unknown
NJR
N$R
NQF
#PA
}OSO
Nevada
County ↔
Grass Valley
Canada >
Montreal
37
N$R
NQF
#EC
#MA
}OSO
Nevada
County ↔
Truckee
Nevada > Incline
Village
20
N$R
NQF
#IT
}CLO
}REL
Orange ↔
Aliso Viejo
Orange ↔
Aliso Viejo
North Carolina >
Cary
North Carolina >
Charlotte
NJR
N$R
NQF
NJR
N$R
NQF
}REL
#BF
#SB
}CLO
}REL
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Texas leading to a reduction in expenses.]
Lampasas Trucking & Ready Mix – A full-service crane and heavy equipment company
will relocate three of its five divisions, along with a cement division and headquarters, to
Texas. In the process the company changed its name (news accounts are unclear about
what the former name was in California). Company owner and president Mike Jones said
“We’re California natives” and the move was motivated by his home state’s taxes and
regulations. He plans to hire a crew of 10 to 15 people.890 The company estimates it will
invest $1 million in Lampasas, in part to purchase a 13,000 sq. ft. commercial building.891
Byte Technology, which specializes in website parallax design for non-profit
organizations, moved its headquarters to Minnesota, although some employees will remain
in California. Its clients include AT&T, Chevron, GE, Comcast, National Geographic and
Colgate-Palmolive.892
Century Aluminum, which has production facilities in Iceland, Kentucky, West Virginia
and South Carolina, will move headquarters into a 16,146-sq. ft. space in Chicago. In a
November filing with the Securities and Exchange Commission, Century expected to open
its new office by the midway point of 2013.893
Napa Valley Register furloughed employees and on-site leased workers involved
newspaper production, specifically advertising graphic design, because the company
shifted the work to India. The Dept. of Labor didn’t identify the community in that country,
nor did it provide a figure for the number of jobs lost, but did indicate that furloughs may
have begun as early as July 25, 2013.894
Grass Valley USA, LLC, GVD Division, a subsidiary of Belden, Inc., furloughed
employees and on-site leased workers producing broadcast equipment because the
company shifted the work to Canada. The Dept. of Labor indicated that furloughs may
have begun as early as June 12, 2013.895
First Tracks Media (Xplorit), an immersive web and mobile technology company, will
relocate headquarters to Nevada, creating 20 jobs in Reno-Sparks-Tahoe area over five
years. Company Chairman Doug Swanson said, “Nevada offers some real competitive
advantages from where we’ve been in California. From the extensive tax benefits to the
great quality of life and a diverse employee pool, it made real economic sense for us to
make the move to Nevada.” Advertising Age granted XplorIt the Media Vanguard Award for
the best innovation in virtual technology.896
MetLife Inc. – See the entry under Aliso Viejo - Charlotte for this company for information
about the Cary event.
MetLife Inc. – The life insurance and employee benefits company will move jobs from
Aliso Viejo and Irvine to lower-cost locations in North Carolina. The company will establish
hubs for its U.S. Retail Business in Charlotte and for its Global Technology & Operations
organization in Cary, which is near Raleigh. Positions will include product management,
marketing, sales and customer support in Charlotte and IT positions in Cary.897 MetLife
didn’t provide employee counts for the California offices, nor did it indicate how many jobs
were transferred to which North Carolina location.898 A WARN notice listed the furloughs
from the Irvine office at 118, but no number was given for Aliso Viejo.899
137
Orange ↔
Aliso Viejo
Texas > Shiner
6
N$R
NQF
Orange ↔
Aliso Viejo
Texas > Austin
360
N$R
14
#EN
#IT
#SO
#SB
}CDO
Orange ↔
Anaheim
Nevada >
Minden
50
N$R
10
#AE
#DF
#EC
#MA
}REL
Orange ↔
Brea
South Dakota >
Sturgis
30
N$R
45
#HQ
#MA
}REL
Orange ↔
Buena Park
North Carolina >
Mount Airy
140
$22
NQF
#MA
}CDO
Orange ↔
Buena Park
Unknown >
Dispersed
NJR
N$R
NQF
#FP
#MA
Orange ↔
Costa Mesa
Oklahoma >
Tulsa
120
N$R
NQF
#AE
#AU
#DF
#GR
#MA
#PB
}CLO
}DSP
}REL
}CLO
}REL
}REL
Shield Tactical is relocating to Shiner, bringing six employees, but eventually may grow to
25 employees. (By the way, Shiner is where Shiner beer is brewed.) For now, owner John
W. Harrington says the training division will stay in California. 900
Telogis Inc., a location-based software company, established an Austin “footprint” in 2012
when it opened an office there. Next, it enlisted additional employees for sales, marketing,
customer support and technical support.901 By 2013 it employed 400 people in Austin (only
360 listed here because 40 were listed in a 2012 event). It also received $93 million in
funding to put it in a position for an IPO, and an undisclosed number of additional workers
will be needed.902
Cristek Interconnects Inc. – A well-known businesswomen will relocate headquarters to
Nevada. Cristi Cristich is CEO of a company that makes electronic components for the
military and aerospace. She started the company in 1985. Her family enjoys hunting and
rural living, have long visited Carson Valley, and planned to retire there. An opportunity
came up to buy a 10,000-sq. ft. building, and she decided it was the time to make the
move. She will maintain Anaheim operations, where 140 employees work. She has served
as Orange County and California president of the National Association of Women Business
Owners and in 2004 ran for the Republican nomination for the Assembly. 903 It’s estimated
that the plant will grow to at least 50 employees.904 [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Nevada leading to a reduction in expenses.]
Samson Motorcycle Products, Inc. / Samson Exhaust – After many years
manufacturing exhaust systems in California, the company relocated to Sturgis.905 Samson
moved into a 45,000-sq. ft. building in the Sturgis Industrial Park.906 The 21-year old
company manufacturers exhaust systems, mufflers and accessories for Harley-Davidson,
Honda, Kawasaki, Suzuki, Yamaha, Indian and Metric motorcycles. Apparently some
employees will remain in California.
Awesome Products Inc., a laundry detergent and cleaning products manufacturer, will
locate a facility in North Carolina where it will invest $22 million over the next three years
and create up to 140 jobs. The company currently operates production and distribution
centers in Arkansas and California.907 See other events in 2011 and 2014 regarding the
company’s expansions in West Memphis, Arkansas.
Dean Foods – The company closed its California fluid milk plant as part of the company’s
focus on cutting costs. Dean Foods owns about 79 fresh dairy plants across the U.S.908
Cytec Industries – The New Jersey-based composites maker, after purchasing Umeco
last year, will close three of its plants in California, which are in Costa Mesa, Adelanto and
Huntington Beach, by mid-2015. About 120 jobs will be eliminated as a result of the
closings, although it’s uncertain how many are in each plant. Work will be moved to Cytec
sites in Tulsa, Oklahoma and Winona, Minnesota. The affected plants make films and
similar products based on epoxies, phenolics and other thermosets for aerospace and
related industries.909 It is a diversified company operating in many industries: Aerospace,
Agriculture, Agrochemical, Automotive, Motorsport, Defense, Energy (inducing
sustainable), Medical / Pharmaceutical, and Mining. [Along with efficiencies resulting from
the acquisition, it’s conceivable that the location decision was influenced by lower business
138
Orange ↔
Costa Mesa
Orange ↔
Foothill
Ranch
Japan > Tokyo
NJR
N$R
NQF
#CL
}CLO
}REL
Texas > Plano
1,000
N$R
50
#BF
#HQ
}REL
Orange ↔
Fountain
Valley
China >
Unknown
80
N$R
NQF
#CH
#EN
#IT
#MA
#SB
}OSO
}REL
Orange ↔
Huntington
Beach
Orange ↔
Irvine
Minnesota >
Winona
NJR
N$R
NQF
Indiana >
Indianapolis
40
$3.3
196
#GA
}CDO
Orange ↔
Irvine
Texas > Austin
40
N$R
7
#DO
#RW
#SB
}CDO
}REL
and employee costs, taxes and fewer regulations in Oklahoma leading to a reduction in
expenses.]
Gravis, which mainly sells footwear, will move to Tokyo and will only be available in Asian
markets. The change will be effective fall 2013.910
loanDepot.com LLC, a retail mortgage lender, opened its co-headquarters office in Plano,
where it anticipates hiring 250 employees in the first nine months and have a total of up to
1,000 employees in three years. The company is hiring for all functions, including
mortgage sales, operations, technology, human resources and other corporate roles.911
“With the combination of the availability of talent and the work ethic and experience level of
the talent force, it makes sense for us to allocate a higher percentage of our workforce in
the Dallas area,” LoanDepot CEO Anthony Hsieh said. He added that “Dallas is in the
middle of the country, and it’s centrally located for financial services companies that are
national” and Texas has a “favorable business environment and favorable tax rates.” He
added, “California is where we started. We will maintain a fairly significant presence out
there. “But our Texas operations will continue to increase as far as our overall percentage”
of employees is concerned. LoanDepot has rented 50,000 sq. ft. of office space.912
Company expansions into Scottsdale, Ariz., and Brentwood, Tenn. are excluded from this
list because they appear to be market-driven projects. A substantial number of employees
will remain in California.
Kingston Technology is laying off 80 workers involved in DRAM and Flash memory
products because “our company has been and continues to shift primarily production work
from the U.S. to China,” writes a company HR manager. Groups affected include
production, shipping, warehouse workers and to a lesser degree, finance, engineering and
IT positions.”913
Cytec Industries – See the entry under Tulsa for this company for more information about
this event.
Solutions 2 GO, LLC, a specialized video game products distributor, will locate a new
facility in Indianapolis, creating up to 40 new jobs and investing $3.3 million to lease and
equip a 196,000 sq. ft. facility. The company will utilize warehouse management software
that allows it to remotely monitor and direct production from its California headquarters.
Founded in 2009, Solutions 2 GO distributes video games, software, related hardware and
accessory bundles to retail and e-commerce clients across the country. The company
provides special promotions and unique packaging for Sony PlayStation, Activision and
Nintendo, serving customers including Walmart, Kmart and Target. 914
Auction.com LLC – The real-estate online auctioning company moved into a 7,000 sq. ft.
space where it will provide client management and business development services. “Austin
was our first choice as a location since it offers an excellent talent pool of professionals
from leading technology companies who have the experience to help us better serve our
customers and enhance the current teams in our Irvine headquarters,” stated John Hood,
EVP of C2C Inside Sales. The company has sold more than $26 billion in assets since
2007.915 [Along with the reasons cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Texas
leading to a reduction in expenses.]
139
Orange ↔
Irvine
Nevada > Las
Vegas
76
$1.02
NQF
#BF
#SB
}CDO
Orange ↔
Irvine
Nevada > Las
Vegas
163
N$R
NQF
#BF
}REL
Orange ↔
Irvine
Orange ↔
Irvine
Orange ↔
Irvine
North Carolina >
Charlotte
North Carolina >
Cary
Texas > Dallas
118
N$R
NQF
}REL
NJR
N$R
NQF
}REL
NJR
N$R
NQF
#HC
#HQ
#SB
}REL
Orange ↔
Irvine
Texas > Austin
NJR
N$R
NQF
#SP
}CLO
}REL
Orange ↔
Irvine
Colorado >
Greenwood
Village
25
N$R
10.5
#SO
}CLO
}REL
Orange ↔
Irvine
Kansas >
Kansas City
15
N$R
NQF
#PB
#RD
}REL
Orange ↔
Irvine
Hungary >
Debrecen
400
N$R
NQF
#PB
#MA
}OSO
}REL
California Republic Bank will invest $1.02 million in opening operations in Las Vegas,
creating 76 jobs. It operates four branches in Southern California, as well as an autofinance division in Irvine that purchases contracts from auto dealers in California, Arizona
and Texas.916 The jobs include those in an auto finance call center.917
Consumer Portfolio Services, a finance company that provides auto loans, expanded in
Las Vegas. At first, it expected to bring 75 jobs to Las Vegas, but later grew that number to
163 employees.918 It appears that this announcement was a precursor to an actual
relocation of its executive staff. Later, the company states that its “headquarters” is in
Irvine.919 While it is incorporated in California, the entry is puzzling because the company’s
“principal executive offices” moved to 3800 Howard Hughes Pkwy. in Las Vegas920 from its
“principal executive offices” at 19500 Jamboree Road in Irvine.921 Hence, this is counted as
a relocation even though some employees remain in Irvine.
MetLife Inc. – See the entry under Aliso Viejo - Charlotte for this company for information
about the Cary event; part of the Irvine office remained opened.
MetLife Inc. – See the entry under Aliso Viejo - Charlotte for this company for information
about the Cary event; part of the Irvine office remained opened.
Mimi’s Café – The restaurant chain is moving its headquarters and support center to
Texas, ending a 35-year corporate history in Orange County. The new owner, Le Duff
America, said some employees will remain behind – notably the culinary team, West Coast
operations, human resources and quality assurance. Mimi’s operates 143 restaurants in 24
states.922 [Along with the reasons cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Texas
leading to a reduction in expenses.]
Orange County Breakers – The Orange County Breakers of Mylan World TeamTennis
relocated in 2013 to Texas to become the Austin Aces. The team will become the league’s
second franchise in Texas, joining the Texas Wild of Irving, a Dallas suburb. The move
marks the end of professional coed TeamTennis in California,923 at least for now.
Precision Discovery Inc. – The COO of the employee-owned software company, Thomas
Avery, said, “There were a lot of cost benefits to moving to Denver.” Attractions included
reasonable taxes and state recognition of an ESOP [employee stock ownership program].
“It is notable that when the company announced the potential move to its employees,
approximately two-thirds of the work force volunteered to move to Denver,” said a broker
involved in the project. In the move, the company upgraded from space in an industrial
park to Class A office space in a Denver suburban area with substantial savings on rent. 924
About 25 Orange County-based employees chose to relocate.925
Stason Pharmaceuticals Inc. – The company will move its Brand Division to Kansas,
apparently being given a new name, KC Specialty Therapeutics LLC, which will focus on
R&D of new chemical entities for humans. Stason will continue to grow its Kansas City
presence,926 expecting to hire as many as 15 people locally during the next year. 927
Teva Pharmaceutical Industries – The company is selling its Irvine drug manufacturing
plant to save $1.5 to $2 billion over the next four years. Teva’s president/CEO, Jeremy
Levin, noted that the company is not selling its business in Irvine, just the physical plant.
He said Teva has five other FDA-approved manufacturing sites, including one in Hungary
that can take over production of the medicines currently manufactured in Irvine. The
140
Orange ↔
Irvine
Indiana >
Columbus
50
$4.6
21.4
#AU
#HQ
#MA
}REL
Orange ↔
Laguna Hills
Texas > Athens
20
$1
NQF
#HQ
#MA
#PB
}REL
Orange ↔
Newport
Beach
Texas > Houston
NJR
N$R
NQF
#HQ
#PF
#SO
}REL
Orange ↔
Orange
Nevada > Reno
50
N$R
NQF
#BF
#SB
}CDO
Orange ↔
San
Clemente
Orange ↔
San
Clemente
Ireland >
Unknown
NJR
N$R
NQF
#MA
#PB
}OSO
}REL
Utah > Park City
30
N$R
NQF
#EC
#MA
}CLO
}REL
Orange ↔
Santa Ana
Florida > Ocala
37
$700K
18.5
#HQ
#SB
}REL
company is looking for a buyer “with a strategic long-term interest in the facility” that will
produce for Teva until it can move products elsewhere. The factory employs about 400
people, roughly half the number who worked there in 2010.928 [Along with efficiencies
resulting from the apparent consolidation, it’s conceivable that the location decisions were
influenced by lower business and employee costs, taxes and fewer regulations leading to a
reduction in expenses.]
Toyota Material Handling U.S.A. Inc. – The sales and distribution arm for Toyota lift
trucks and industrial equipment (e.g., forklifts) moved its North American headquarters to
Indiana to align sales and marketing with manufacturing. Many California-based
employees chose to move to rural Columbus. The new HQ represents a $4.6 million
investment and adds another 21,400 sq. ft. to the existing campus.929 The move created
50 jobs in Indiana.930 [Along with the reasons cited, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Indiana leading to a reduction in expenses.]
Med-Logics, Inc., a provider of state-of-the-art medical devices used in Lasik, Dsaek and
cataract surgeries, will build a new headquarters and manufacturing facility on a four-acre
site in Athens. Med-Logics chose Texas because of the state’s low tax burden and Athens’
existing ancillary medical device industry, workforce and location.931
Varun Jain Inc. – The provider of enterprise software and consulting services was
founded in 2006 in Newport Beach. A company statement about its headquarters
relocation said, “In order to support [our strategic] vision, the decision was made in 2013 to
relocate from Newport Beach to Houston, Texas. This decision enabled us to grow our
workforce, obtain excellent offices to expand, and charge our customers lower bill rates
while maintaining the best consultants on the market.”932
International City Mortgage (ICM) opened a new Regional Operations and Production
Center to support the company’s growth, provide redundancy, and also to serve the
Northern Nevada market. ICM has also become a corporate partner of the UNR College of
Business, which will provide the company with a “wonderful pool from which to draw
employees and access to some of the best young minds anywhere.”933 ICM will create 50
jobs in Reno.934 [Along with the reasons cited, it’s conceivable that the location decision
was influenced by lower business and employee costs, taxes and fewer regulations in
Nevada leading to a reduction in expenses.]
Boston Scientific Corp., Cameron Health Division, furloughed employees and on-site
leased workers producing subcutaneous implantable defibrillator (S-ICD) devices for
medical use because the company shifted the work to Ireland.935
Skullcandy – The audio accessories manufacturer is closing its San Clemente office and
restructuring amid slowing sales. Involved will be moving its marketing, creative, business
development and legal departments to its Utah HQ along with certain sales and
international personnel.936
Ansafone Contact Centers LLC will open its headquarters in Ocala, although its Santa
Ana office will not be closed because the company will maintain support for western
clients. President/CEO Randy Harmat said the company has been “hiring the corporate
headquarters people for the last six-seven months. We continue to be grateful for Florida
for being a pro-business environment” which has allowed the company to expand.937
141
Orange ↔
Tustin
Canada >
Unknown
12
N$R
NQF
#EC
#MA
}OSO
REL
Orange ↔
Tustin
Washington >
Port Orchard
40
$2.74
41
#AE
#HQ
#MA
}CLO
}REL
Placer ↔
Roseville
Texas > Irving
NJR
N$R
NQF
#HQ
#PF
#SO
}REL
Riverside ↔
Temecula
Costa Rica >
Alajuela
650
N$R
NQF
Sacramento
↔ Elk Grove
Unknown >
Dispersed
128
N$R
NQF
#FP
#MA
}CLO
}DSP
}REL
Sacramento
↔ Folsom
Nevada > Reno
10
N$R
NQF
#AE
#RD
#SO
}REL
}OSO
}REL
(Apparently the company’s experience with a local call center has been positive and
influenced the selection of Ocala for the HQ.) Ansafone bought the former Maslow
Insurance building with 18,500-sq. ft. of space and a parking garage.938
Graymark International, Inc., subsidiary of Festo Didactic Inc., furloughed employees
producing hands-on technology training equipment because the company shifted the work
to Canada. The Dept. of Labor indicated that furloughs may have begun as early as May 8,
2013.939
Omohundro Corp. – California lost another aerospace supplier when a composites
manufacturer relocated to Port Orchard in Kitsap County – buying a 41,000-sq. ft. building
for $2.74 million. It hired 10 local workers who are being trained at the plant in Tustin, and
when operations begin in Port Orchard the company expects to employ at least 40 people.
The company has been in business for 50 years.940
Daegis Inc., an information-management firm that specializes in electronic discovery for
civil litigation, disclosed it will relocate its HQ. CEO Tim Bacci said, “As we evaluate the
business and optimize our cost structure to accelerate on strategies where we see the
most opportunity, we have decided to open an office in Dallas, Texas, and relocate the
company’s headquarters there.” The executive team and senior management will move to
the new facility. A smaller presence will remain in Roseville. The company, long known as
Unify Corp., renamed itself in 2011 after it spent $38 million to buy San Francisco software
maker Daegis. The move isn’t being called a “tax-driven relocation” because the company
has years worth of tax losses to carry forward but nonetheless was designed to “optimize
its cost structure.”941
Abbott Laboratories is furloughing 200 positions from a plant in Temecula that produces
cardiovascular stents and other devices, coming off the elimination of 450 jobs at the
facility in February.942 Based on other events in this report that cite company
announcements and a U.S. Department of Labor finding, the jobs are being shifted to
Costa Rica to a plant that is expected to employ 3,000 people.
Bimbo Bakeries USA, Inc. closed and shifted work to other bakeries in its network,
locations unknown. Regional VP Joe Dangelmaier said, “[A]fter careful analysis and
consideration, it was apparent that the facility did not have the infrastructure and
manufacturing capability to compete in the marketplace.” Employees are represented by
the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union Local
85 and the International Brotherhood of Teamsters Local 150. 943 [Along with the reasons
cited, it’s conceivable that the location decisions were influenced by lower business and
employee costs, taxes and fewer regulations leading to a reduction in expenses.] The
event will be the second major bakery closing in the Sacramento area in less than a year.
Last fall, the Hostess Brands Inc. closed its plant after it went out of business.944
Valley Tech Systems Inc. / Rock Hill Propulsion, an aerospace supplier, will relocate its
rocket group and high-paying jobs to Reno. President Russell Carlson said Reno was
selected because the area offers advantages in location, business climate, infrastructure
and work force.945 Later, a new president, Michael O’Brien, said that Nevada laws are less
restrictive on material storage and experimentation. Among other things, the company
produces custom software.946
142
Sacramento
↔ Rancho
Cordova
Washington >
Ridgefield
10
N$R
6.8
#DO
#HQ
#RW
}CLO
}REL
Sacramento
↔
Sacramento
Unknown >
Dispersed
60
N$R
NQF
#FP
#MA
}CLO
}DSP
Sacramento
↔
Sacramento
Missouri >
Columbia
30
N$R
NQF
#PB
#RD
}REL
San
Bernardino ↔
Adelanto
San
Bernardino ↔
Etiwanda
San
Bernardino ↔
Victorville
Oklahoma >
Tulsa
NJR
N$R
NQF
Mexico >
Unknown
75
N$R
NQF
#CS
#MA
}OSO
}REL
New Mexico >
Albuquerque
10
N$R
7.6
#HQ
#DF
}REL
San Diego ↔
Carlsbad
Florida > Vero
Beach
18
N$R
NQF
#EN
#SO
}REL
}REL
Ammo Depot Inc. will relocate its corporate headquarters and warehouse, while retaining
a California retail presence. Finding the right environment for the founders’ families was
the most important aspect in determining where to move the business. “The Ridgefield
area seems to be very community-minded,” co-owner Brandon Lungren said. “Bringing our
families to a great place to live was our highest priority. It feels like a perfect match for
us.”947 [Along with the reasons cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in
Washington leading to a reduction in expenses.]
Coca-Cola will close its production plant by mid-summer, costing 60 jobs. When CocaCola bought Sacramento Coca-Cola Bottling Co. Inc. two months earlier, the company said
it would assess the ability of the plant to expand production capability. After a 75-day
assessment, Coca-Cola determined the capacity isn’t there. The plant produces about nine
to 10 million cases a year. The operation distributes Coke products in nine counties. The
closure won’t affect Coke’s workforce of 400 in nearby Natomas, where it has
administration, distribution, warehousing, sales and merchandising jobs.948
Morse Labs – ABC Laboratories will move operations of its Morse Laboratories subsidiary
in Sacramento to ABC’s campus in Columbia, Missouri.949 ABC CEO John Bucksath said,
“Demand for our services is increasing, and we had to address the Sacramento facilities.
We evaluated a number of scenarios, and relocation just made the most sense.” The move
affects about 30 employees. Morse Laboratories was founded in Sacramento years ago, in
1935. It was sold to ABC in 2009. Both companies specialize in residue chemistry, which is
used in product development and analytical testing for pharmaceutical, biotech, agriculture
and chemical industries. It generally operates as a contract researcher for other
companies.950 [It’s conceivable that the location decision was influenced by lower business
and employee costs, taxes and fewer regulations in Missouri leading to a reduction in
expenses.]
Cytec Industries – See the entry for this company under Tulsa for more information about
this event.
Ameron International, subsidiary of National Oilwell Varco, furloughed employees
producing concrete and steel pipes, and wind towers, because the company shifted work
to Mexico.951
10 Tanker Air Carrier – The company, which operates DC-10 air tankers to fight wildfires,
moved its corporate headquarters from Victorville to Albuquerque. CEO Rick Hatton said,
“We surveyed a number of sites in the Rocky Mountain West, wanting to have more of a
national presence versus being perceived as a ‘California Only’ or Region 5 resource.
Albuquerque topped the list due to a combination of off-season weather, business
environment, and airport facilities.” One of their on-airport buildings is a 7,600 sq. ft.
space.952 He also said, “The dry, high desert climate and favorable weather make this a
good place to work on aircraft during the off-fire season, and the tax and business
environment here are favorable.” The move also helps to increase Albuquerque’s revenue
stream from non-passenger aviation companies, something the city has been pursuing.953
Next Level Security Systems – The security software firm will expand to Florida,
providing 10 jobs to start followed by hiring eight software engineers with an annual salary
143
San Diego ↔
Carlsbad
Georgia > Duluth
275
$10.5
60
#AE
#EC
#EN
#SO
}CDO
San Diego ↔
Chula Vista
Pennsylvania >
Lancaster
NJR
N$R
NQF
#SP
}REL
San Diego ↔
Chula Vista
Mexico >
Mexicali
69
N$R
NQF
#AE
#MA
}OSO
}REL
San Diego ↔
Oceanside
Alabama >
Anniston
NJR
N$R
NQF
#CP
}REL
San Diego ↔
Poway
Georgia >
Suwanee
NJR
N$R
NQF
#HQ
#MA
#PB
}REL
of $80,000 each.954 Peter Jankowski, company founder, said he had many business
reasons to expand the company he started in California into Florida, but it was his wife who
decided the family should live in Indian River County. “My wife and kids picked the place,”
Jankowski said. “My wife fell in love with the small-town feeling and no traffic in Vero
Beach.” He said his two teenage children are certified divers and into water spots, so
“coming to Vero is a dream for them,” reminiscent of the 18 months the family lived on St.
John in the Caribbean. “The quality of life is the biggest thing.” So he is leaving behind his
34 employees of the company he founded in 2004, to open a new Vero Beach office. “Any
future growth for the company will be in Florida,” he said. Jankowski said California is less
business-friendly than Florida because of higher business and personal income taxes. He
also said that because of the proximity to the Space Coast, “it’s a good spot for pulling
people with software skills.”955
ViaSat, Inc. The high-tech firm produces satellite and digital communication products for
government and commercial customers, develops antennas that allow for in-flight Wi-Fi,
and has worked with aerospace companies. ViaSat will add about 275 jobs at its Georgia
campus, more than doubling that workforce. The jobs include software and mechanical
engineers, programmers and analysts, with an average salary of about $90,000
annually.956 The 60,000-sq. ft. facility represents a $10.5 million company investment.957
U.S. Women’s National Field Hockey Team – Nook Sports and USA Field Hockey
announced a partnership to move the home of the team from California to Pennsylvania.
USA Field Hockey Executive Director Steve Locke said, “When we weighed them all –
Lancaster vs. Chula Vista – the greater [financial] advantage was to be here in Lancaster.”
The relocation will benefit from a transformation of a former Lancaster distribution center
into what is being called the nation’s largest indoor sports complex. For Nook Sports, it’s
the beginning of a new, state-of-the-art, family-centric facility to which some staff will
transfer from Chula Vista. The team will have its own private entrance to the facility, along
with a team-only weight-training area, locker rooms and indoor and outdoor fields. The
squad will use a water-based artificial turf field under a climate-controlled dome for yearround training.958
United Technologies, f/k/a Goodrich Corp., furloughed employees and on-site leased
workers producing aerospace parts because the company shifted the work to Mexico. The
Dept. of Labor indicated that furloughs may have begun as early as Jan. 17, 2013 .959
Creedmoor Sports, Inc. will cease all operations at its Oceanside location and relocate to
new facilities in Alabama. The company said, “The decision to move was based on several
factors including: business climate, proximity to greater number of customers, employee
pool, and growth potential.... Many of our employees key to production and operations will
be moving with us, thereby minimizing any potential disruption to service.”960
Digirad is a company that manufactures solid-state systems for nuclear cardiology and
ultrasound imaging uses. The Atlanta Business Chronicle reported that “A San Diego areabased digital imaging company will relocate its headquarters to Atlanta..... Digirad, which
reported $50 million in revenue last year.... declined to disclose how many jobs the
relocation would bring to Atlanta.”961 Also, a company news release stated: “Digirad’s
headquarters will move to Atlanta, GA from Poway, CA in order to reduce costs and better
align with the company’s new strategic focus going forward.”962 Digirad negotiated an exit
144
San Diego ↔
Poway
China >
Unknown
NJR
N$R
NQF
#CP
#MA
}OSO
}REL
San Diego ↔
Poway
Canada >
Ontario >
Mississauga
NJR
N$R
NQF
#AE
#MA
}OSO
}REL
San Diego ↔
Poway
New York >
Saratoga Springs
NJR
N$R
NQF
#MA
}CLO
}REL
San Diego ↔
San Diego
Indiana > Carmel
300
$10
72.3
#HQ
#PB
}REL
San Diego ↔
San Diego
Unknown >
Dispersed
420
N$R
NQF
#PB
#RD
}CLO
}DSP
from the lease of its former Poway HQ in January 2014 and in doing so stated that “As part
of its new, expanding imaging services-oriented business model, the Digirad headquarters
moved to the Atlanta area in mid-2013.”963 Finally, a “Contact Us” page lists a Suwanee
address,964 which is why this move is credited to that community. Apparently some
employees will remain in the San Diego area. [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Georgia leading to a reduction in expenses.]
Harmonic Design, Inc., which appears to be a unit of Somfy Group, furloughed
employees and on-site leased workers manufacturing motors for awnings, shutters, blinds,
projection screens, garage doors and gates because the company shifted such work to
China. The Dept. of Labor didn’t identify the community in that country, nor did it provide a
figure for the number of jobs lost, but did indicate that furloughs may have begun as early
as June 30, 2013. The Design Center in Poway would remain open.965
Honeywell International, Honeywell Aerospace Division, furloughed employees and onsite leased workers producing condition-based maintenance (CBM) systems because the
company shifted the work to Canada. The Dept. of Labor didn’t provide a figure for the
number of jobs lost, but did indicate that furloughs may have begun as early as May 2,
2013.966
Serotta Custom Bicycles, Inc. – The premier manufacturer of handcrafted, highperformance bicycles merged into the Divine Cycling Group (DCG). When DCG didn’t
renew the lease at Serotta’s Poway factory, it closed, employees were laid off and Serotta
went out of business. However, DCG aims to expand production at the Saratoga Springs
facility by producing bikes for other companies.967 [Along with probable efficiencies
resulting from the merger, it’s conceivable that the location decision was influenced by
lower business and employee costs leading to a possible reduction in expenses in upstate
New York – not New York City.]
American Specialty Health Inc. (ASH) – The health services company, founded in
California more than 25 years ago, will relocate its headquarters to Indiana next year,
creating upwards of 300 jobs for the Indianapolis region in 2014 growing to 675 positions
by 2016. ASH will occupy a 72,693-sq. ft. space. Chairman/CEO George DeVries said the
decision is more than about Indiana’s friendly business environment – “The low cost of
housing and living, as well as a family-oriented environment in Carmel and Indianapolis,
offer our employees a great place to live and work.” A smaller office will remain in San
Diego, which had been its corporate office location for more than 25 years. 968
Amylin Pharmaceuticals Inc. Bristol-Myers Squibb, which bought Amylin, will cease San
Diego operations by the end of 2014, which closes the books on one of the city’s most
famous biotech companies. “By the end of 2014, we plan to have all work being done in
San Diego transitioned to other Bristol-Myers Squibb sites,” spokesman Frederick Egenolf
said. “Beyond that, we will likely have a small number of people working on closing the San
Diego facilities by the end of (March) 2015.” About 420 people now work at Amylin in San
Diego. When appropriate, these employees will be considered for relocation if they are
interested.969 Amylin was founded in 1987.970 The company offered transfers to some
personnel971 – but it’s unclear whether the destinations were to company facilities in New
Jersey or Ohio, or both.
145
San Diego ↔
San Diego
Texas > Austin
San Diego ↔
San Diego
San Diego ↔
San Diego
40
N$R
NQF
#DO
#SO
}REL
Malaysia >
Unknown
China >
Unknown
NJR
N$R
NQF
NJR
N$R
NQF
#CH
#EC
#EN
#MA
}OSO
}REL
San Diego ↔
San Diego
Nevada > Las
Vegas
NJR
N$R
NQF
#CP
#DO
#HQ
#RW
}CLO
}REL
San Diego ↔
San Diego
Nevada > Reno
400
$1
20
#EC
#IT
#SB
}CDO
San Diego ↔
San Diego
Arizona > Peoria
45
$26
120
#EC
#EN
#GR
}CDO
}OSO
}REL
Blackbaud Inc. – a South Carolina-based software developer for nonprofit groups –
bought its San Diego competitor Kintera for $46 million in 2008. By 2013, the publicly
traded Blackbaud planned to furlough 40 of the 130 remaining employees in what’s now its
San Diego regional office. An additional 60 will be asked to work from home or relocate.
None of the company’s services is expected to be impacted. Blackbaud bought Kintera in
May 2008, after Kintera had already trimmed its staff by 16%. At the time, Blackbaud had
19,000 customers for its software services to help nonprofits increase donations.972 The
company planned to transition most operations to Austin by June 2013 when the San
Diego lease matures.”973 [Along with efficiencies resulting from the acquisition, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Texas leading to a reduction in expenses.]
Continuous Computing Inc. (CCPU) shifted jobs to Malaysia. See the 2013 entry for
China for this company for more information.
Continuous Computing Inc. (CCPU), a subsidiary of RadiSys Corp. furloughed
employees and on-site leased workers producing PCB boards, telecommunication systems
and medical systems and the supply of engineering design services because the company
shifted the work to a foreign country. The company indicated that jobs were being shifted
to China and Malaysia.974
Famous Names LLC – The online retailer in the professional nail and beauty industry sells
and distributes products worldwide. company owner Jim Nordstrom said this about moving
to Nevada: “One week after the last election [November 2012], Linda and I decided to put
our house up for sale and it closed in late May. San Diego is considered one the nicest
places in the world to live, why would we leave it? In very simple terms, we believe
California has completely disconnected from the free market system. The amount of
regulation, control and bizarre legislation coming from the ‘Golden State’ is increasing, and
it’s all adding up to something we don’t understand and we choose not to participate in....
We can basically live anywhere as long as we have an internet connection and are close to
an airport.”975
GreatCall will establish a facility in in Reno, bringing a projected 400 jobs into the area
within the next five years. It’s a fast-growing wireless provider known for a suite of mobile
services aimed at seniors, including the Jitterbug phone, a collection of health and medical
apps, and the 5Star Urgent Response service. Positions will be for call center personnel,
quality assurance, IT support, HR professionals and on-site management. “We’re also
going to have an emergency response center featuring staff trained to provide medical
dispatch support … including CPR and other emergency medical protocols,” said David
Inns, GreatCall CEO. “Our 5Star agents are actually certified by the National Academies of
Emergency Dispatch.” The office will be located in a 20,000-sq. ft. facility with opportunities
for further expansion. The estimated 400 jobs represent a significant investment for a
company that currently has 500 employees. GreatCall jobs pay above the industry average
for the service support sector and also come with good benefits.976 GreatCall will invest
more than $1 million in the Reno facility.977 The event isn’t expected to impact GreatCall’s
current call center in Carlsbad.978
Maxwell Technologies, Inc., which produces energy storage and power devices to green
industries, will build a new $26 million manufacturing facility in Arizona.979 CEO David
146
#MA
#RD
San Diego ↔
San Diego
Arizona > Peoria
NJR
N$R
NQF
#PB
}CDO
San Diego ↔
San Diego
Unknown >
Dispersed
100
N$R
NQF
#PB
#RD
}CLO
}DSP
San Diego ↔
San Diego
Texas > Austin
470
$10
90
#DO
#EN
#HQ
#IT
}REL
San
Francisco ↔
San
Francisco
Texas > Austin
24
N$R
2
#SO
#RD
}CDO
Schramm said, “Peoria has everything we were looking for in an expansion site.”980 He
added, “Peoria will be the first experience of us bringing our crown jewel – our intellectual
property – out of San Diego.” He said Peoria was close to San Diego and headquarters
visitors were only a few hours away. 981 The plant will produce ultracapacitors that will
double the company’s current electrode capacity, which are purchased by the wind, solar
power and hybrid vehicle industries. The median salary for Arizona employees will be
about $50,000. Arizona’s universities, a favorable business climate, and low electric rates
helped the company make its decision.982 Upon opening the 120,000-sq. ft., facility, it was
learned that 45 employees will be hired in the first year in production, followed by
engineering, research and product development functions.983
Nasseo, Inc., a medical device company, closed its $520K seed financing round at
BioInspire, a medical technology incubator in Peoria, Ariz. The company is developing The
Nasseo TiArray Dental Implant system for people seeking implants but have limited
treatment options with today’s technology. Dr. Garrett Cale Smith, Co-Founder/ CEO of
Nasseo, says, “We are honored to be selected as a BioInspire portfolio company and to be
identified as a medtech company that is poised for investment based upon the unmet
clinical need that our enabling technology is addressing.” Nasseo’s technology has
received enthusiastic reception from members across the scientific and investment
community. Kayvon Pourmirzaie, Nasseo’s Co-Founder/COO, stated, “Our inclusion in
BioInspire is a significant milestone as it gives us access to a wealth of resources and
opportunities that will support moving forward aggressively with our go-to-market
strategy.”984 It appears that the company maintains a San Diego presence; hence, this is
not coded as a relocation.
Pfizer eliminated 100 jobs in San Diego by closing its CovX unit. The pharmaceutical
company’s statement said, “There has been no change in the amount we invest in R&D,
but rather in the way that we invest it. As a result of this, we have announced the closure of
the CovX Research Unit in San Diego.” Pfizer purchased CovX, then an independent
biotech company in San Diego, in 2008. Several drugs from CovX have entered human
clinical trials.985
Websense, which protects businesses from cyberattacks, will move its headquarters and
create at least 470 jobs with an average salary of $82,000; capital investment will total $10
million. “Websense projected it would hire 23 executives – 50% local hires – at an average
wage of $250,000; additional potential is 48 managers at $150,000 annually with 75 %
hired locally, 92 supervisors at $95,000 annually with 80 % hired locally, 123 staff at
$70,000 annually with 80 % hired locally and 184 entry level workers at $45,000 with 85 %
hired locally.” The company was founded in 1994.986 The new Austin HQ will be in a
90,000-sq. ft. leased space.987 Industry website Xconomy reported that the company move
is because Texas has no state income tax while California’s is among the nation’s
highest.988
Boundary Inc., a developer of technology management software, opened a 2,000 sq. ft.
office that quickly grew to 12 workers with plans to double that by the end of 2013.
Boundary didn’t plan on establishing a major presence in Austin, but the number of local
workers qualified in such software fueled the hiring increase. CEO Gary Read said, “As we
sort of got into it we noticed the quality of folks we were getting so we continued to go
147
San
Francisco ↔
San
Francisco
New York > New
York
NJR
$6.5
NQF
#DO
#HQ
}REL
San
Francisco ↔
San
Francisco
Colorado > Lone
Tree
480
$230
650
#BF
}CDO
San
Francisco ↔
San
Francisco
Oregon >
Portland
12
N$R
NQF
#EN
#IT
#SO
}CLO
}REL
San
Francisco ↔
San
Francisco
Alabama >
Huntsville
20
N$R
NQF
#EN
#GA
#HQ
}REL
down that path,” he said. “It will be our largest R&D location.” The company’s customers
include Netflix Inc., Rackspace Hosting Inc. and Bonobos Inc.989 [Along with the reasons
cited, it’s conceivable that the location decision was influenced by lower business and
employee costs, taxes and fewer regulations in Texas leading to a reduction in expenses.]
Bustle.com – The company’s founder, Bryan Goldberg, who also founded Bleacher
Report, declared California’s retroactive taxes nothing less than “asset seizures” and said,
“I am moving my new company – which is now closing a round of venture funding from
world-class investors – to the East Coast. Because my last company created almost 200
jobs, most of which were in San Francisco, this is not good news for the State of California.
As I write this, I am hiring people on the East Coast who might otherwise have been hired
in California. Some have already been hired. My California employees will be relocating to
New York by early next year. I will also be leaving California next year and de-establishing
residency to be with my new company. No more 13.3 percent of my income for you,
California. How does 0 percent sound? That sounds good to me.” 990 Even before the
launch, the new company raised $6.5 million.991 Note: This report generally excludes
moves to New York City because its difficult to see how the city’s business policies are
better than in California. However, individual circumstances are different and because of
Mr. Goldberg’s comments this remains categorized as a disinvestment event.
Charles Schwab Corp. advanced its investment in the area with another $230 million in
real estate. Schwab has about 2,000 employees in the Denver area and will relocate its
workforce to a consolidated campus to be built in in Lone Tree. The potential exists to
create up to 480 new jobs by 2017.992 Employees will move into a 650,000-sq. ft., 47-acre
campus.993
Cozy, a real estate startup that builds rental management software, relocated. “We found
that after we raised seed funding, we were having a hard time finding top-notch Ruby
engineers. We decided to look in Portland, just because we knew of conferences they had
there before, and we immediately found three people,” Cozy founder and CEO Gino Zahnd
said. “Over the course of 2013 and 2014, we hired people from all over the country and
gave them the choice between living in San Francisco or Portland,” he said. “100% chose
Portland.” About housing, Zahnd said: “San Francisco has a stigma for being so
expensive. The number I like to use as a base line is that in San Francisco, the median
price for a single family home is $1 million. In Portland, it’s under $300,000.”994 In mid-2013
the company had 12 employees and had more jobs available on a new jobs page.995
Curse Inc. – The operator of an online game portal that was named one of Inc.
magazine’s 500 Fastest Growing Companies in 2011 relocated its headquarters and
content team to Huntsville. The company provides editorials, videos, wikis, databases,
forums, add-ons, blogs, and guild website hosting for massively multiplayer online (MMO)
gamers. CEO/Founder Hubert Thieblot said, “We were looking for a place that was friendly
and beneficial to our employees and our company. Huntsville provided that. In addition to
being a friendly environment for our company, we have been really pleased with the
amount of high-quality talent in the area.” Curse has 100 employees worldwide, with
offices in Germany, France, United Kingdom, Australia, Ireland and Canada. Accounting
and administration functions will remain in San Francisco. Curse has more than 14 million
unique visitors a month.996 Curse serves more than 22 million online gamers worldwide. 997
148
40
N$R
112.0
#DC
#EN
#IT
}CDO
Virginia >
Ashburn
NJR
N$R
214
#DC
#EN
#IT
}CDO
San
Francisco ↔
San
Francisco
Texas > Austin
200
$5.5
40
#SO
#SB
}CDO
San
Francisco ↔
San
Francisco
Canada > British
Columbia,
Vancouver
30
N$R
NQF
#EN
#GA
#IT
#SO
}CDO
San
Francisco ↔
San
Francisco
Georgia >
Suwanee
NJR
N$R
10
#DC
#DO
#EN
#IT
#SO
}CDO
San
Francisco ↔
San
Francisco
Oregon >
Hillsboro
205
N$R
115
#DO
#EN
#IT
#SO
}CDO
San
Francisco ↔
San
Francisco
Texas > Houston
San
Francisco ↔
San
Francisco
An office in San Francisco remains open. (Note: This company should not be confused
with and is separate from Curse Gaming, which has merged into a company named Team
Liquid.998) [Along with the reasons cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Alabama
leading to a reduction in expenses.]
Digital Realty Trust, Inc. – The company added two new data center buildings totaling
112,000 sq. ft. to its 21-acre campus in Greenspoint. Houston’s data center market is on
the rise because many companies are expanding. It isn’t just the oil and gas companies
with increased data-storage requirements. Growth also is seen in medical companies in
records storage and telecommunications companies expanding their Internet services. 999
[Note that data centers use significant amounts of electricity and such costs are lower in
Texas than in California.]
Digital Realty Trust, Inc. – The data center company broke ground on a major expansion
of its Ashburn campus. The 214,000-sq. ft. data center facility is the fourth building to be
developed there. The first three 1.125 megawatt, purpose-built data centers will be
available in the second quarter of 2013.1000 [Note that data centers use significant amounts
of electricity and such costs are lower in Virginia than in California.]
Dropbox, a software and cloud storage company, opened a 30-person Austin office for
sales and customer support, planning to grow it to 200 employees in a larger office in the
city. The expansion could put up to one-third of its total workforce in a 40,000 sq. ft. facility.
The jobs pay an average annual wage of about $59,000; 145 entry-level jobs at $52,500,
24 managerial positions at $100,000 and one executive post at $155,000. The company
has proposed a $5.5 million investment.1001 A later report shows that, indeed, the company
has an aggressive expansion underway in the Texas Capital, creating 200 jobs. 1002
FunPlus, a Beijing-based company, had its first North American office in San Francisco.
But to expand the company selected Vancouver, BC (believed to have been in 2013) for a
full-fledged studio with designers and engineers. This occurred just as the company had
raised $74 million in venture capital funding. Ji Gu, studio director in Vancouver, said, “The
atmosphere and the amount of talent here already built up a good foundation for us to set
up such a studio,” she said, adding that working in the same time zone as the San
Francisco office – a 2.5-hour flight away – is a factor. The company looked for a new
facility that could accommodate as many as 30 employees.1003
Salesforce.com Inc. will place a data center operation in metro Atlanta, in Suwanee.
While the company is starting out small – at about 10,000 sq. ft.; it may be the start of a
larger expansion. A Suwanee data center would help Salesforce do more product
development and testing locally. The region has a reliable power grid and the cost of
power in Georgia is about half that of the national average.1004 [Note that data centers use
significant amounts of electricity and such costs are lower in Georgia than in California.]
Salesforce.com Inc., a B2B software company, will move into a space in Hillsboro. The
company won’t disclose the number of people it will hire for the new office, but said it will
employ “hundreds.”1005 It later became evident that it was on a trajectory to employ 500
people in five years time, more than twice the 205 jobs it committed to earlier in the year. It
occupies 115,000 sq. ft. in Hillsboro, where it also found more affordable housing (than in
Portland) and high-tech companies it prefers as neighbors.1006
149
NJR
N$R
NQF
#DO
#EN
#IT
#SO
}CLO
}REL
5
N$R
NQF
#EN
#PF
#SO
}CLO
}REL
250
N$R
42
#BF
}CDO
2,500
$70
410
#BF
#SB
}CDO
Unknown >
Dispersed
115
N$R
NQF
#AU
#MA
}CLO
}DSP
Mexico >
Unknown
NJR
N$R
NQF
#AU
#MA
}OSO
}REL
San
Francisco ↔
San
Francisco
Nevada > Las
Vegas
San
Francisco ↔
San
Francisco
Oregon >
Portland
San
Francisco ↔
San
Francisco
San
Francisco ↔
San
Francisco
Arizona > Tempe
San Joaquin
↔ Lathrop
San Joaquin
↔ Stockton
Arizona >
Chandler
Teamly Inc. – The enterprise productivity software company participated in the 500
Startups accelerator in 2012, and worked out of San Francisco for the rest of the year. But
after a few visits to downtown Las Vegas, they decided to join the city’s growing startup
community.1007 Co-founder/CEO Scott Allison said about Las Vegas: “Already we’re seeing
the benefits of being part of such a tight knit community.”1008 [Along with the reason cited,
it’s conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Nevada leading to a reduction in expenses.]
Tilde, an open-source-centric software startup, moved from San Francisco to Portland, a
smaller city with affordable real estate. In part because of the rising cost of living, some
startup founders have left San Francisco. All five Tilde cofounders were renters, but four
were able to buy homes when they moved to Portland. “I have a mortgage payment that’s
half of what my rent was in San Francisco,” co-founder Leah Silber said. Last year, cofounder Tom Dale said in a blog post, “The recent BART strikes are just a single data point
in a larger trend: we’re alienating everyone who isn’t in technology. It’s not sustainable.
The stomach-turning coverage of the BART strikes should throw into stark contrast just
how bad things have gotten. Even I, who make a decent salary, have seen the great
American dream of home ownership recede into the distance.”1009 “I have to say, the vast
majority of people I’ve spoken to have been so welcoming and so kind,” Dale said. “People
I don’t really even know have offered to drive me around and show me all the
neighborhoods.”1010
Union Bank, N.A. placed a new 42,000-sq. ft. mortgage operations center in Tempe,
ultimately employing mortgage professionals, including processors, underwriters, and other
financial services positions.1011
Wells Fargo & Co. – Will build a 410,000-sq. ft. office facility that will double the size and
employee base of its regional campus in Chandler. It marks the campus’s second phase,
where about 2,500 employees currently are housed. Building a new four-story parking
garage for more than 2,500 spaces suggests that more employees will be hired. The
Arizona Builder¹s Exchange first reported the news, stating that the cost of the project
could range between $70 million and $90 million. (Wells Fargo may build another 920,000sq.ft. of space on another portion of the site in the future. If so, that would bring the
campus size to more than 1.74 million square feet and nearly 10,000 employees – those
figures are excluded from this report.)1012
NSG Group (Nippon Sheet Glass) – The company announced in 2013 that the
automotive glass plant will close after 51 years of operations and 115 employees will lose
their jobs. A statement by the United Steelworkers union local representing plant
employees said, “It’s a shame that real good manufacturing jobs like we had here will be
gone forever.”1013 Some history: In 2008, the company announced that the plant would
undergo a $100 million dollar repair. But, in addition to the recession, additional
government pollution requirements made it extremely difficult to implement. While the
company obtained a three year variance in 2011, time ran out and the company shut the
plant down.1014 It was at one time a Libbey-Owens-Ford plant.
BBB Industries LLC, a/k/a QBR Brake Co., furloughed employees and on-site leased
workers producing brake calipers because the company shifted the work to Mexico. 1015
150
San Luis
Obispo ↔
San Luis
Obispo
Texas > Austin
15
N$R
NQF
#TP
}CLO
}REL
San Mateo ↔
Menlo Park
Iowa > Altoona
(near Des
Moines)
31
$500
1,400
#DC
#EN
#IT
#SM
}CDO
San Mateo ↔
Redwood
City
San Mateo ↔
Redwood
City
Ireland >
Clonmel
175
N$R
NQF
#MA
#PB
}OSO
}REL
Texas > Austin
200
$5.4
50
#CH
#SO
}CDO
San Mateo ↔
San Carlos
Texas > Plano
NJR
N$R
NQF
#CP
#EC
#MA
}CDO
San Mateo ↔
San Mateo
Nevada > Las
Vegas
130
$3.3
NQF
#GR
#SB
}CDO
NeighborFavor Inc., provides a courier service based on a mobile app that allows users
to order items from stores and restaurants in their area, then delivers the ordered items.
The company moved to Austin in June 2013.1016 Since, it’s raised $2 million in seed
funding to grow beyond the college campuses and restaurants where it has mostly focused
so far. The startup, which has 15 full-time employees, originally came up through an
incubator called Boost, in San Mateo. Kip McClanahan, a partner at Silverton Partners in
Austin, says he appreciated the “critical mass” of customers, delivery professionals and
restaurant relationships the startup gained after moving from California to Texas. 1017 Favor
chose to relocate to Austin because of its strong tech community and its great food. The
drivers wear bright blue tuxedo shirts and drive cars outfitted with oversized blue
bowties.1018 [Along with the reasons cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Texas
leading to a reduction in expenses.]
Facebook will build a data center in Altoona, Iowa.1019 The company evaluated several
other sites before choosing the location for its 1.4 million sq. ft. facility, where it will locate
at least 31 jobs. The 194-acre site could accommodate up to two additional data center
buildings that may be constructed in future phases.1020 Altoona is prime real estate for data
farms because it provides access to an extensive interstate fiber optic cable system,
proximity to adequate power and water utilities, open and affordable land, and excellent
highway access.1021 (Note: Facebook’s HQ city changed – on Dec. 11, 2011 the HQ left
Palo Alto in Santa Clara County to a larger facility in Menlo Park, in San Mateo
County.1022) [Note that data centers use significant amounts of electricity and such costs
are lower in Iowa than in California.]
Abbott Vascular furloughed employees and on-site leased workers producing vascular
closure devices because the company shifted the work to Ireland.1023
Oracle Corp. – The provider of business-oriented hardware and software is expanding in
Austin, establishing an additional office, investing $5.4 million and creating 200 jobs. The
company employs workers across Texas, including many based in Austin in sales,
marketing, management, data center operations and software development roles. The new
expansion will add sales and marketing personnel to its Austin workforce to support
growth.1024 It will be a 50,000-sq. ft. office.1025 [Note that data centers use significant
amounts of electricity and such costs are lower in Texas than in California.]
Bulldog Lighting – California’s legislature ignored company requests to amend the “Made
in USA” label requirements to follow the more realistic Federal standard. The company
stated its manufacturing is moving to Texas because California’s “Made in the USA
labeling law was passed in 1961 when imports were 8%. Today they are over 64%....
California has a very specific law that states that 100% of the product must be made in the
USA. Many businesses are unaware of this law until they are sued .... California places an
unfair disadvantage on firms in special labeling because there are some products that
have components which are not available in the United States.”1026 An office remains in
San Carlos; production relocated to Plano.1027
SolarCity, Inc. – The solar company will open a considerable management facility in
Nevada, which initially will house expansions of key administrative divisions including
151
San Mateo ↔
South San
Francisco
Texas > Austin
10
N$R
10
#IT
#PB
#RD
}CDO
Santa
Barbara ↔
Santa
Barbara
Texas > Austin
30
N$R
12.4
#EC
#HQ
}REL
Santa
Barbara ↔
Santa
Barbara
Arizona > Peoria
NJR
N$R
NQF
#PB
}CDO
Santa Clara
↔ Cupertino
Texas > Austin
879
$100
NQF
#CH
#CP
#MA
}CDO
portions of the sales, asset management and customer care groups.1028 The company has
hired about 130 employees locally, and is hiring more, with plans to double its workforce
each year. While its HQ will remain in California, CEO Lyndon Rive says he wants to make
Las Vegas an important hub for the company, which has locations in 14 other states.
SolarCity employees, many of whom moved from California, attended the opening
ceremony. SolarCity’s chairman is entrepreneur Elon Musk, who founded several other
high-profile companies.1029 The company has begun working with the College of Southern
Nevada, UNLV and others to develop programs to build an educated workforce in
renewable energy. The company will eventually create 900 jobs in Las Vegas 1030 and
invest $3.3 million in capital equipment.1031
Veracyte Inc. – The medical diagnostics company leased about 10,000 sq. ft. with 10
employees initially, a job number that could jump with expansion. Co-founder/CEO Bonnie
Anderson said there were several reasons for selecting Austin. “We were drawn to the
high-quality workforce in Austin and its central location,” she said. Moreover, the company
works closely with another biomedical company based in Austin, Thyroid Cytopathology
Partners. Apparently, the proximity to the University of Texas and other educational
institutions also factored in.1032 Veracyte’s open Austin jobs include laboratory
management and IT systems and application support positions.1033 [Along with the reasons
cited, it’s conceivable that the location decision was influenced by lower business and
employee costs, taxes and fewer regulations in Texas leading to a reduction in expenses.]
R2Sonic LLC – The high-growth sonar technology company is establishing its new
headquarters in Texas. Demand for R2Sonic sonar products has quadrupled in the past
three years. R2Sonic will occupy an advanced manufacturing facility in Oak Hill, which
triples the square footage of their former Santa Barbara facility. President Jens R.
Steenstrup added that Austin is ideal for tapping into the dynamic high-technology
community and the Sonar Research Center at the Applied Research Labs at the University
of Texas. The company will recruit additional engineering talent.1034 R2 Sonic leased
12,411-sq. ft. of space.1035 Another report said the square footage was 20,000; for
purposes of this report, the lower number is used. [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Texas leading to a reduction in expenses.]
Verve Medical Inc., relocated from Santa Barbara to the BioInspire accelerator in Peoria,
Arizona.1036 Companies chosen for the accelerator have access to a laboratory and
opportunities to collaborate with other tenants. They also are connected to interns from
local colleges and universities. The company is creating a medical device to use radio
frequency energy to stop certain nerves from causing high blood pressure. “If we can do
this in the clinic, in the office setting, the cost is going to go way down as far as procedure
costs go,” said Terry Buelna, president/CEO of Verve. Clinical trials have begun in
India.1037
Apple Inc. is building the new Mac Pro personal computer in Texas as part of CEO Tim
Cook’s Made-in-the-USA push. “We have begun manufacturing the Mac Pro in Austin,”
Cook wrote.1038 Assembly is done by Flextronics International Ltd.1039 In October,
Flextronics disclosed that it planned to add 879 jobs for a “next generation desktop
computer.” Earlier, Apple had announced plans to spend about $100 million to move the
152
220
N$R
51
#HQ
#SO
}REL
Texas >
Georgetown
65
N$R
15
#HQ
#MA
#PB
}CLO
}REL
Santa Clara
↔ Los Gatos
Nevada > Las
Vegas
54
N$R
NQF
#EC
#RD
}REL
Santa Clara
↔ Milpitas
India >
Bangalore
50
$50
NQF
#EN
#RD
#SO
}CDO
}OSO
Santa Clara
↔ Cupertino
Texas > Irving
Santa Clara
↔ Gilroy
Mac Pro manufacturing to Texas, and siting production in Northwest Austin also would put
Apple’s domestic manufacturing within 1 mile of its new Americas Operations Center.1040
The San Diego Union-Tribune asked, “Why was the Golden State shut out? A likely big
reason is because the cost of energy is absolutely crucial to making manufacturing
profitable, and California is on track to have the highest energy costs of any state.”1041
Trend Micro, a Japanese security and software company, will relocate its “global
operations headquarters” to Irving to house finance, legal, customer support, commercial
sales and marketing, HR and research. Kevin Simzer, SVP, said Dallas-Fort Worth gives
“access to an exceptional talent pool and the ability to travel anywhere in the world with
ease.” The company was founded in 1988 in Los Angeles.1042 The company will bring
about 25-35 employees from its California office1043 to its 51,000-sq. ft. facility, which will
total 220 employees.1044
Radiation Detection Co., a manufacturer of radiation detection equipment mostly for
medical customers, is relocating to a new 15,000 sq. ft. facility in Georgetown. President
Barrie Laing said he wanted to relocate to Texas because of the state’s economy and
business-friendly attitude. “We started [looking to relocate] four years ago. With the
changes in California’s regulations and taxation, it was motivation to come here. Some of
the reasons were less tangible. Everyone we met here was very friendly.” He hopes to
continue the company’s tradition of aiding local nonprofits, which now will be in Texas. 1045
Of the company’s 65 employees, 33 will relocate from California and the rest will be hired
locally.1046 The company will build a 15,000-sq. ft. facility near the non-profit Texas LifeSciences Collaboration Center in Georgetown.1047
Pathion – The company that makes advanced lithium batteries is relocating a portion of its
operation from the Bay Area, in part because of a researcher who works at UNLV, Dr.
Yusheng Zhao, and because the state has lithium resources. Pathion partnered with K2
batteries and UNLV to get a competitive ARPA-E grant from the Department of Energy’s
Advanced Research Projects agency. They will hire post-docs from UNLV.1048 CEO
Michael Liddle said a goal for the facility is to not only train employees in assembly, testing
and material processing, but also to sponsor positions within the UNLV to train additional
PhDs, thus increasing the footprint within the electrical, chemical and physics
departments.1049 The HQ, will remain in Los Gatos. [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Nevada regulations leading to a reduction in
expenses.]
FireEye – The cyber attack security firm is planning a new R&D center in India. The facility
will serve as a hub for the development and testing of new FireEye products. The center
will employ approximately 50 specialists by the end of 2013. Founder/ CTO Ashar Aziz
said, “The Bangalore office is an important milestone for FireEye’s global expansion. We
expect the new Bangalore office to play a key role in maintaining cutting-edge technology
and innovation in the FireEye line of security products.”1050 “We will invest $50 million in
our R&D activities in India in the next 4-5 years to develop cutting-edge cyber security
solutions,” Aziz said in New Delhi.1051
153
Santa Clara
↔ Milpitas
Utah > Salt Lake
City
250
$2
NQF
#EN
#SO
}CDO
Santa Clara
↔ Milpitas
Foreign Nation >
Unknown
NJR
N$R
NQF
#EC
#MA
}OSO
}REL
Santa Clara
↔ Mountain
View
Arizona >
Phoenix
200
N$R
NQF
#SO
}CDO
Santa Clara
↔ Mountain
View
Oregon > The
Dalles
10
$600
164
#DC
#DO
#EN
#IT
#SO
}CDO
Santa Clara
↔ Mountain
View
South Carolina >
Berkeley County
NJR
$600
NQF
#DC
#DO
#EN
#IT
#SO
}CDO
Santa Clara
↔ Mountain
View
North Carolina >
Lenoir
NJR
$600
NQF
#DC
#DO
#EN
#IT
#SO
}CDO
Santa Clara
↔ Mountain
View
Nevada > Reno
25
N$R
NQF
#DN
#EN
#HQ
#RD
#SB
}CLO
}REL
FireEye – The cyber security threat protection firm plans to invest more than $2 million to
expand to Salt Lake City and plans to create approximately 250 jobs in a new Americas
Customer Support Group.1052
JDS Uniphase, Communications and Commercial Optical Products Division, furloughed
employees and on-site leased workers engaged in the production of optical amplifier
modules because the company shifted the work to a foreign country. The company
indicated some uncertainty in its Department of Labor filing, stating that “Future OA module
product development will occur in Ottawa or Shenzhen.” The DOL failed to specify what
country, but indicated that furloughs may have begun as early as Nov. 24, 2013.1053
Gigya Inc., a B2B provider of data/online software services, has opened Phoenix offices
where it expects to add up to 200 jobs, the latest expansion from its Mountain View
headquarters.1054 After Gigya raised $25 million in new venture capital, it made plans to
double its workforce. CEO Patrick Salyer said, “We realized that we were going to have to
look beyond Silicon Valley to find what we needed.” Arizona’s business-friendly climate
meant Gigya secured permits to open a new office within a matter of days rather than
months. Salyer added, “We were up and running within a month, hired 40 employees
within a few months, and we are already seeing results in less than a year.” The prices
were also right: Office spaces can rent for over $100 per square foot in Silicon Valley; in
Phoenix prime space can go for as little as $25 per square foot. Likewise, employees will
find that the median home price in the upscale suburb of Scottsdale is just $272K
compared with the Bay Area’s $585K. Also, taxes are lower than in California.1055
Google, Inc. will start work on a $600 million expansion of its data center in The Dalles,
doubling its investment there. Google built its first data center in The Dalles in 2006 and
the company said it has invested $600 million in the site to date. The expansion will bring
its total investment to $1.2 billion. The expansion is for a two-story, 164,000 sq. ft.
building.1056 Data centers can operate with few people; the minimum number of new jobs
to be added will be ten, but the actual number is likely to be higher. [Note that data centers
use significant amounts of electricity and such costs are lower in Oregon than in
California.]
Google, Inc. again increased its investment in Berkeley County by committing additional
financing to create a third data center. The data center houses computer systems and
associated components that support services such as Google search, Gmail, Google+ and
YouTube.1057 (This is different from Google’s earlier events in the Palmetto State.) [Note
that data centers use significant amounts of electricity and such costs are lower in South
Carolina than in California.]
Google, Inc. announced a $600 million expansion of its Lenoir data center. The company,
which had said it planned to expand on its initial $600 million investment, broke ground on
a third building. The expansion brings Google’s North Carolina investment to $1.2
billion.1058 See the separate Lenoir event in 2008. [Note that data centers use significant
amounts of electricity and such costs are lower in North Carolina than in California.]
Zuvo Water LLC – The fast-growing water filtration products company will relocate
headquarters to Reno. Zuvo plans to hire 25 employees at a wage above the county’s
average. Zuvo was created in an incubator, and has since been spun-out to expand
independently. The company’s new space is more than twice the size of the previous
154
Santa Clara
↔ Palo Alto
Taiwan > Taipei
NJR
N$R
NQF
#EC
#GR
#MA
}CDO
}OSO
Santa Clara
↔ Palo Alto
Texas > Austin
140
N$R
27
#EC
#GR
#MA
#SB
}CDO
Santa Clara
↔ Palo Alto
Missouri >
Kansas City
8
N$R
NQF
#CH
#DO
#EC
#EN
#RD
}CDO
Santa Clara
↔ Palo Alto
Indiana >
Bloomington
NJR
N$R
NQF
#EN
#PF
#SO
}CDO
Santa Clara
↔ San Jose
Costa Rica >
San Rafael
NJR
N$R
20
#PB
#MA
}CDO
#OSO
Mountain View facility and accommodates an expansion of the engineering, customer
service and shipping departments. A water lab will be built in the new location to
accommodate the water science and technology research arm of the company.1059
Nest Labs – Little is known about the company’s activities in Taiwan except a cryptic note
stating that it “launched an office in Taiwan to help with manufacturing.”1060 (The best
estimate is that the event occurred in 2013.) At one point job descriptions stated: “We are
looking to create a Taiwan-based design and validation team to compliment the team
currently in California.... Our new Taiwan team is going to be an integral part of the entire
process, especially involved in the system design, factory bring up, and test/validation
cycles of the project.”1061
Nest Labs, Inc. – The programmable thermostat maker will open a technical support and
customer service center in Austin. The company is teaming with Spot BPO LLC on the
27,000 sq. ft. facility, where 140 employees will work.1062 In 2014, Google paid $3.2 billion
to purchase Nest Labs.1063
Suitable Technologies, Inc. – CEO Scott Hassan said the company would open a
support center with eight or nine employees in Kansas City. The Kansas City Business
Journal summarized the event quite well: “CEO Scott Hassan ... reported that Suitable
Technologies would be opening an international support office with eight or nine
employees.... Hassan said Kansas City also will provide Suitable Technologies with access
to tech talent emerging from 20 universities in the region [and] the government climate is
different in Palo Alto. ‘Kansas City welcomed us with open arms; they are helping us,’ he
said. ‘You would never see that here [in Palo Alto].’... Hassan said the new Beam
technology erupted at Willow Garage, another Silicon Valley firm he founded. Suitable
Technologies was spun off from that personal robotics firm to focus on advanced remote
presence technology.”1064 One reason the company was attracted to the Kansas City
market was the ability to easily expand to accommodate the 40-to-50 employees that may
eventually be on board.1065
WSO2 – The software development company expanded into a new facility in Indiana after
a substantial year increase in new customer bookings in 2012. Initially, the Bloomington
office will focus on providing technical support, technical sales, and solution architecture
consulting and services. Dr. Sanjiva Weerawarana, chairman, founder and president, said,
“We have long been attracted to Bloomington by the possibility for interaction and
recruitment from Indiana University Bloomington. As one of the leading public research
universities in the United States, it is fostering a new generation of talented technology
experts to meet today’s opportunities and challenges.”1066 At the time, the company’s US
operation was based in Palo Alto, but that has since shifted to Mountain View. [Along with
the reasons cited, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Indiana leading to a
reduction in expenses by between.]
AdvancedCath Technologies opened its new 20,000-sq. ft. manufacturing facility in
Costa Rica, where it will produce medical devices such as sophisticated guidewires,
advanced catheters components and complete balloon catheter solutions. “We are pleased
with the support we received from the Costa Rican government and the infrastructure they
created that enabled the rapid build-out and opening of our new facility,” said Randall
155
150
N$R
NQF
#DO
#PF
#RW
#SB
#SO
}CDO
1,000
$8
66
#DO
#EN
#RW
#SB
#SO
}CDO
India >
Hyderabad
NJR
N$R
NQF
#EC
#SO
}OSO
}REL
Santa Clara
↔ San Jose
Poland > Krakow
NJR
N$R
NQF
#EC
#MA
}OSO
}REL
Santa Clara
↔ San Jose
Unknown >
Dispersed
170
N$R
NQF
#GR
#MA
}CLO
}DSP
Santa Clara
↔ San Jose
Oregon >
Portland
92
N$R
NQF
#GR
#HQ
}CLO
}REL
Santa Clara
↔ San Jose
Kentucky >
Louisville
Santa Clara
↔ San Jose
Texas > Austin
Santa Clara
↔ San Jose
Sword, President and CEO of AdvancedCath, who also referred to “the favorable business
environment in Costa Rica.”1067 The timeline on the Costa Rica event can be confusing. It
appears that TechDevice Holdings acquired AdvancedCath after it broke ground on the
Costa Rica facility, which brought to TechDevice “a high volume manufacturing option in
Costa Rica.” In a rebranding initiative, the TechDevice platform renamed itself
AdvancedCath.1068 The addition of the facility extends AdvancedCath’s services by offering
custom manufacturing solutions throughout the product lifecycle from prototype fabrication,
to pilot production and high volume manufacturing.1069 Planning for the facility began in
2013.1070 Since all this, TE Connectivity Ltd. has acquired the company,1071 but
AdvancedCath’s headquarters remains in San Jose, Calif.1072
eBay Enterprise – The eBay, Inc. unit will invest up to $45 million to expand its Louisville
Operations Center, where it will create more than 150 full-time jobs. Staff there specialize
in creating, developing and running online shopping sites for brands and retailers. With
more than 500 current employees in Louisville, eBay Enterprise is expanding to meet rising
customer demand. New space will total 270,000 sq. ft. on 17 recently acquired acres. eBay
Enterprise will spend $45 million to grow its footprint in Kentucky.1073 Since the figures for
capital costs and square footage appear related more to the distribution center than to the
new facility, they are excluded from this report.
eBay is launching another major expansion in Austin that involves hiring 1,000 new
customer support employees and technical engineers over the next 10 years. That is in
addition to the 500 employees who already work there. The non-technical employees will
have an average wage of $30,000 to $35,000, and the 600 technical engineers will
average $100,000. Also involved is leasing 66,000 sq. ft. and a capital investment of $8
million.1074
Microsemi Corp. furloughed employees and on-site leased workers producing fieldprogrammable gate array (FPGA) integrated circuit products and related software because
the company shifted the work to India. The Dept. of Labor didn’t identify the community in
that country, nor did it provide a figure for the number of jobs lost, but did indicate that
furloughs may have begun as early as April 30, 2013. 1075 A WARN Notice indicates that
110 employees were furloughed in 2013, but since it’s unclear how many were caused by
the offshoring, this report will exclude any figure.1076
Motorola Solutions furloughed employees and on-site leased workers producing router
and transport equipment because the company shifted the work to Poland. The Dept. of
Labor didn’t identify the community in that country, nor did it provide a figure for the
number of jobs lost, but indicated that furloughs may have begun as early as Sept. 2,
2013. 1077
Nanosolar, a Silicon Valley startup, which had raised over $450 million in venture capital
since its founding in 2002, now in 2013 is selling off its San Jose assets piece by piece.
Nanosolar “managed to ship only a small volume of panels after spending so much money
and time to develop its technology and build factories,” reported Forbes.1078 A filing with
the state shows that 170 employees will be furloughed in April, 2013.1079
SoloPower, Inc. – As the company undergoes a restructuring, it relocated its
headquarters to Oregon, where the firm’s CIGS PV module plant is based.1080 WARN
156
Santa Clara
↔ San Jose
Singapore >
Singapore
NJR
N$R
NQF
#MA
#PA
}OSO
}REL
Santa Clara
↔ Santa
Clara
Colorado >
Meridian
200
N$R
53
#CH
#EN
#SB
#SO
}CDO
Santa Clara
↔ Sunnyvale
Thailand >
Unknown
NJR
N$R
NQF
#SC
#MA
}OSO
}REL
Santa Clara
↔ Sunnyvale
Colorado >
Westminster
570
N$R
125
#EN
#SB
#SO
}CDO
Santa Cruz
↔ Santa
Cruz
Texas > Austin
NJR
N$R
NQF
#EN
#SO
}CDO
See Special
Note for
Boeing
South Carolina >
North Charleston
300
N$R
104
#AE
#DF
#EC
#EN
#RD
#SO
}REL
Reports show a total of 92 employees furloughed in 2013.1081 This event is separate from
the 2011 relocation of SoloPower’s production facility.
Ultratech, Inc. is establishing an international HQ in Singapore, where it plans to start
manufacturing in the first quarter of 2011, and in the second half to ramp up lithography
systems products. Ultratech CEO Arthur Zafiropoulo said, “We expect to transfer all our
lithography from California to here by the end of the year.” In addition, Ultratech also
intends to increase its profit margin by 5% due to lower material costs in Singapore.1082
Hitachi Data Systems, the data-storage supplier, will create a major Denver-area office
and Colorado will be the location of almost all future corporate growth. The facility will open
in 2013 with about 200 workers in Douglas County south of Denver. Employment could
double within five years. Many jobs will be in software and hardware engineering with
average salaries of about $80,000, rising above $100,000 for experienced staffers. EVP
Randy DeMont said the HQ will remain in California, “but we will focus all incremental
growth in Colorado.” The center will also handle sales, finance, human resources and
marketing in 53,000 sq. ft. of offices. Some California workers may relocate, but most
staffing will be new hires.1083
Supertex, Inc., a subsidiary of Microchip Technology Inc., Assembly and Test Division,
furloughed employees producing semiconductor components because the company
shifted the work to Thailand. The Dept. of Labor didn’t identify the community in that
country, nor did it provide a figure for the number of jobs lost, but did indicate that
furloughs may have begun as early as May 16, 2013.1084
Trimble Navigation Ltd., a location and positioning software company, built its new
125,000-sq. ft. building for as many as 570 employees because it’s growing and also to
demonstrate the company’s technology. CEO Steven Berglund said the new building
“provided us with an opportunity to showcase our office-to-field Connected Site solutions
during the planning, construction and operational phases.” Contractors used Trimble
software to dramatically speed up construction. Trimble employees focus on marketing,
testing and applications engineering in the construction, surveying, agriculture and
mapping & geographic information system (GIS) markets. Trimble has been in Colorado
for some time, opening a small office in 2000.1085
Plantronics Inc., the headset maker, opened a software development office in Austin and
plans to build an engineering and development office and hire a “handful” of software and
firmware – both senior and entry level – engineers this year. The company is still in the
early stages of building out its local office and isn’t disclosing the total number it would
eventually hire for the local office.1086
Boeing Co. / Boeing Research & Technology (BR&T) leased a 104,000-sq. ft. building
in North Charleston for its new research center where 300-400 people will be employed. it
will focus on advanced manufacturing technology and composite fuselage manufacturing.
When fully operational, scientists, technologists, technicians and engineers will work at the
center, leading R&D efforts in automation and assembly, systems installation, chemical
technology, nondestructive evaluation, composite fabrication and repair, and
electromagnetic effects, modeling and characterization. The center will also include an
autoclave, paint booth and a clean-room lab.1087 These details became known a year after
the announcement of the Southern California closings and job shift to South Carolina.
157
See Special
Note for
Boeing
Alabama >
Huntsville
NJR
N$R
NQF
#AE
#DF
#EC
#EN
#RD
}REL
See Special
Note for
Boeing
Missouri > St.
Louis
350
N$R
7.8
#AE
#DF
#EC
#EN
#RD
#SO
}REL
Shasta ↔
Redding
Iowa > Coralville
40
N$R
NQF
#SO
#QA
}UTN
}REL
Solano ↔ Rio
Vista
Nevada > Reno
70
N$R
NQF
#ET
#HQ
}REL
Sonoma ↔
Petaluma
Oregon >
Portland
36
N$R
100
#DN
#HQ
#PA
}CLO
}REL
}UTN
Boeing Co. / Boeing Research & Technology (BR&T) will establish an R&D center in
Huntsville with a focus on simulation and decision analytics and metals and chemical
technology. The new jobs at the $5.5 million center represent new work beyond the NASA
and DoD support Boeing-Huntsville currently provides. Boeing employs 2,600 people in
Huntsville, including many engineers and other professionals. More than 400 aerospace
companies are in Alabama, employing around 83,000 people. Other big-name companies
with a presence in Huntsville include Lockheed Martin, GE Aviation, and Raytheon.1088 It’s
difficult to determine the square footage in Huntsville because Boeing is moving several
units into a new three-building, 350,000 sq. ft. complex; it may be that the BR&T unit may
occupy a part of the new facility.
Boeing Co. / Boeing Research & Technology (BR&T) plans to add 300 to 400 new jobs
for R&D centers it will open in St. Louis, adding to the approximately 15,000 employees it
already has in the region. The company will fill the jobs over the next two years primarily
with new hires, although some employees will be relocated. The company’s three new
R&D centers will focus on systems technology; digital aviation and support technology; and
metallics and fabrication development.1089 Boeing signed a lease for 7,850 sq. ft. of Class
A space which may have been for this particular relocation.1090
Shasta QA – The company provides software, smartphone and website testing services. It
is expanding operations in Iowa – preferably near the University of Iowa – while scaling
down operations in California. Shasta QA employs 60 people, 30 in Redding and 30 in
Chico. Owner and CFO Don O’Connell said that next year, “through attrition in our Redding
and Chico offices and expected new work, we’ll be likely adding five or 10 more jobs.”
While Chico and Redding are 70 miles apart, O’Connell said Shasta QA draws on the
same population base, prompting the decision to expand elsewhere. “We needed a bigger
gene pool to recruit talent from and we like the university. We like the education
backgrounds of the local population.” the company researched other areas, including in
California, before settling on Iowa. 1091 Jeff Lord, the company’s QA Director, said, “The
business-centric environment, entrepreneurial spirit and the talent here is
unbelievable.”1092 It later became clear that the company selected Coralville, an Iowa City
suburb, where it added 40 jobs.1093
King of the West Entertainment (KWS) – The motorsports entertainment company
relocated headquarters to Reno. KWS plans to hire 70 people in the first year and expects
a heavy multiplier by year five. KWS wanted to expand, and KWS CEO Dan Simpson said,
“The potential was endless. The Reno-Tahoe area is full of gear-heads and perfect for the
brand of racing I want to bring to the area. I am amazed and humbled by the outpouring of
support we have received since we relocated our operation here.” Also, Simpson
announced plans to open Reno-Tahoe-Fernley Speedway in April and hinted at plans to
build an indoor sports arena in Reno in the future.1094 [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations leading to a reduction in expenses.]
Pomegranate Press (now Pomegranate Communications), after 45 years in California,
the company is moving its offices and warehouse to a 100,000-sq. ft. facility in Oregon as
a cost-saving measure. Publishers Weekly quoted Publisher Katie Burke as saying, “Over
the years, we’ve moved the company further and further north of San Francisco as
158
Stanislaus ↔
Modesto
Mexico >
Unknown
Stanislaus ↔
Modesto
Colorado >
Louisville
Stanislaus ↔
Modesto
NJR
N$R
NQF
#MA
}CLO
}OSO
}REL
25
N$R
NQF
#FP
#HQ
#RD
}CLO
}REL
Michigan > Battle
Creek
NJR
$30
NQF
}REL
Stanislaus ↔
Modesto
Stanislaus ↔
Modesto
Canada >
Niagara Falls
Arkansas >
Jonesboro
NJR
N$R
NQF
}OSO
}REL
140
N$R
NQF
#FP
}CLO
}REL
Tulare ↔
Porterville
Idaho > Eagle
NJR
N$R
NQF
#CP
}CLO
}REL
Tulare ↔
Tipton
Idaho > Nampa
144
$40
64
#FP
}CLO
}REL
Pomegranate grew, and rents near the city became more expensive.” The 36-employee
company has been based in Petaluma, with Burke adding, “This is a good town, but it’s
pricey. The lease on the new Portland building is more affordable than those that were
considered in California. “I didn’t think I would leave California before retiring,” Burke said
about the move, “but I’m discovering that making a change this big as I turn 60 is
invigorating and energizing.” The company has sold 25 million calendars since 2000 and
publishes 10 to 20 book titles per year.1095 Pomegranate has its roots in San Francisco’s
1960’s psychedelic art explosion.
Cambridge International – The company’s Alloy Wire Belt facility in Modesto is “being
closed because they were moving it to Mexico to cut operating costs as the labor there
was cheaper,” according to Julie Odell, an Employment Program Representative for the
state of California in Turlock.1096
Horizon Ag-Products relocated its corporate headquarters from Modesto to Louisville,
Colo.1097 It is a science and research-driven producer of plant health solutions that promote
sustainable agricultural practices. Horizon leased office and research laboratory space and
is on track to have 25 employees located its new facility.1098
Post Holdings, Inc. – See more details in the Jonesboro entry for this event. Related
news: Prior to closing the Modesto facility, the cereal maker began investing $30 million in
the Michigan facility.1099
Post Holdings, Inc. – See more details in the Jonesboro entry for this event.
Post Holdings, Inc. – The cereal manufacturer will close its Modesto plant and eliminate
140 jobs, which is expected to save the company $14 million per year. Production will be
shifted to plants in Battle Creek, Mich., Jonesboro, Ark., and Niagara Falls, Ontario. 1100
The 282,000-sq. ft. plant makes Post Grape-Nuts and Banana Nut Crunch cereals. [Along
with efficiencies resulting from consolidation, it’s conceivable that the location decisions
were influenced by lower business and employee costs, taxes and fewer regulations in
Arkansas leading to a reduction in expenses.]
Iris Garden – An iris farmer who ships flowers worldwide, and has been in Porterville for 21/2 decades, blamed California’s high cost of doing business for forcing him to relocate to
Idaho. Owner Mike Sutton said it’s tough to leave but necessary because “California is
getting harder and harder to run a business, taxes, regulations, water, all sorts of different
issues.” Sutton ships flowers all over the world and sells to big box retailers, but profits are
shrinking and he says it’s time to move to Idaho. “It’s about 17% less to run a business
there than it is here,” said Sutton.1101
Mozzarella Fresca will close its cheese manufacturing plant (operating since 1997), laying
off 144 workers. The company makes fresh mozzarella and other Italian cheeses under the
Precious and Galbani labels. The facility is owned by Lactalis American Group, which has
invested $40 million in a new 61,000 sq. ft. mozzarella plant in Idaho where production
jumped from 7 million to 40 million pounds – more than a five-fold increase. Some 70 new
jobs would be added to the 40 who already in Idaho. The Tipton plant employed up to 200
based on the time of year. California regulates the milk industry, including the minimum
price dairy operators get for their milk depending on how the milk is used. The price of milk
in California has long been a big issue. Mozzarella Fresca said the state’s high prices had
159
Unknown ↔
Unknown
Nevada >
McCarran (not to
be confused with
the Las Vegas
airport)
Unknown ↔
Unknown
Michigan >
Detroit
Unknown ↔
Unknown
Nevada > Reno
72
$99
NQF
#DN
#MA
}UTN
NJR
N$R
NQF
#GA
#SO
}UTN
25
N$R
NQF
#DN
#FP
}UTN
already caused it to transfer some 6% of its production to Idaho and future investment in
Tipton was in doubt because of the state’s regulatory atmosphere. The company also
closed a plant in Turlock.1102
Ardagh Metal Packaging USA Inc. – The company selected the Tahoe Reno Industrial
Center as the location for its latest advanced manufacturing facility in the U.S., although
California was a candidate. The glass and metal packaging company opened a new plant
in Storey County bringing about 140 technical jobs over the next five years, including 72
jobs within the first six months. It provides cans for most leading food, beverage and
consumer brands. The company has more than 100 facilities and 18,000 employees in 25
countries, including an operation in Terminal Island, Calif. James Willich, CEO of Ardagh’s
U.S. metal packaging business, said, “We evaluated many sites for our Western region
expansion. Storey County possessed a number of attractive factors such as their favorable
business tax structure, cost of living, infrastructure, logistic advantages, proximity to our
major customer and the availability of skilled labor.”1103 That California was a candidate is
suggested by the fact that last year Ardagh into an agreement to supply cans for the
majority of ConAgra’s U.S. food products (Libby’s, Peter Pan, VanCamp’s, Pam, Hunt’s,
Chef Boyardee, Marie Callender’s, Swiss Miss and others). ConAgra has facilities in
California’s San Joaquin Valley – close to farmers – and Ardagh needed to build a plant
somewhat nearby. Michael Borne, Ardagh’s metal operations director, said, “When you’re
shipping empty cans, you want to be located close to filling facilities because freight can be
a big cost. They (ConAgra) are out of Oakdale (Calif.), so we must be within a certain
distance to make the cost structure work: the labor pool, transportation to bring in raw
materials, access to infrastructure. All that factored in to looking at different areas.”1104
Ardagh will spend about $80 million in capital equipment with $19 million on building
costs.1105
LevelEleven raised $2 million from venture capital firms and a group of investors that
include two professional athletes.1106 The software developer helps businesses boost sales
using game-inspired incentives for employees. Apparently after the investment, tech
entrepreneur Bob Marsh had to decide whether to remain in Detroit or move to a tech hub
like Silicon Valley. Among the reasons he chose to remain in his hometown is because it’s
easier to hire talent, there are benefits to being in an unofficial co-work space that his
company shares with almost a dozen other tech ventures. Civic pride plays a role, too, as
Inc. explained: “Perhaps most importantly, entrepreneurs in atypical locations for their
industry have the ability to more directly influence their surroundings, Marsh says. He
believes that for many of his employees and peers, this is a substantial selling point.
‘They’re playing a small role in making the city better,’ he says of trail-blazing
entrepreneurs in non-traditional start-up hubs. For many entrepreneurs, that incentive of
enacting change in the place where they live and work is akin to a home team advantage
on the road to success.”1107 Also, Detroit is less expensive than typical California locations
to which a software company would relocate.
Schwabe North America will open a west coast distribution center in Reno where it plans
to hire an initial 25 employees and employ 50 within five years. Schwabe manufactures
and distributes dietary supplements and is HQ’d in Wisconsin. A company spokesperson
said the decision was influenced by the strong presence of distribution expertise and
160
Unknown ↔
Unknown
Arizona >
Phoenix
200
$2
4
#IT
#RD
#SO
}UTN
Unknown ↔
Unknown
(somewhere
in Silicon
Valley)
Missouri >
Kansas City
NJR
N$R
2.9
#DO
#SB
#SO
}UTN
Unknown ↔
Unknown
(somewhere
in Silicon
Valley)
Georgia > Duluth
50
$10
NQF
#IT
#RD
}UTN
Ventura ↔
Camarillo
Colorado >
Greenwood
Village
393
N$R
NQF
#GR
#HQ
}REL
infrastructure in Reno, making it more attractive than other locations that were considered,
which included several undisclosed California locations. The facility has been hiring at a
wage higher than the county’s average.1108
Stealth Software BV, a European cyber-security company, selected Phoenix for its U.S.
headquarters over undisclosed California locations. The company was established in the
Netherlands with offices in Luxembourg and Singapore. It will bring as many as 200 jobs
and a $2 million capital investment to the Phoenix area. “Our potential for growth is
greatest in the U.S. market where we are closest to our main customers,” said CEO
Gerard Warrens. “Our Arizona presence will serve as the country’s center of our
information technology excellence.”1109 Warrens also said, “Arizona offers a very, very
cost-effective basis. If you compare to other states like California, New York or
Massachusetts, the same kind of skill-set would have cost the company a lot more.... [We]
had meetings with ASU and other universities to talk about internships, to talk about longterm R&D projects.... We have some very, very exciting technology where the universities
could be very well-connected to us, and we could also help drive innovation at the
universities.”1110 The company opted for a 4,000-sq. ft. space.1111
BIME Analytics, a cloud business intelligence firm based in Montpellier, France, selected
Kansas City for its new North American headquarters after a nationwide search that
included California. Jim Lysinger, BIME’s vice president for North America, said, “If there
were a handbook for how companies like ours should come to the U.S.... it would probably
say, ‘Go to Northern California.’” But BIME’s due diligence revealed that the Silicon Valley
region is a hypercompetitive market in terms of attracting top talent. “We are proud that
one-third of our customers are U.S.-based,” said Rachel Delacour, CEO and co-founder of
BIME Analytics. “With our dual headquarters in Kansas City and Montpellier, we can
provide outstanding global customer support and aggressively expand our footprint in
North America.” The company will settle in a 2,885-sq. ft. space where it will have a sevenmember sales and support staff, which probably will double next year. 1112 [Along with the
reasons cited, it’s conceivable that the location decision was influenced by lower business
and employee costs, taxes and fewer regulations leading to a reduction in expenses.]
TravelSky – The Chinese-owned company will open a North America R&D Center in
Duluth, in Gwinnett County. The information technology solutions developer for the airline
and tourism industry is expected to create 50 jobs and invest $10 million in the community.
The company chose Gwinnett over undisclosed locations in California’s Silicon Valley.
TravelSky, headquartered in Beijing, has more than 4,000 employees worldwide. 1113 The
11,000 square foot office will be located in Duluth’s Satellite Place office park.1114
TravelSky Technology USA Ltd. has been registered as a California corporation since May
29, 2009 registered at a Pasadena address.1115
Cool Planet Energy Systems Inc. – The startup that turns biomass material like beetlekilled pine trees into clean-burning gasoline is moving its headquarters to Colorado.
Between the HQ and a planned manufacturing facility, the company expects to create 393
jobs in Colorado.1116 Two months later, the company announced it raised $19.4 million in a
D round series of fundraising, which is on top of $29.9 million the company said in June it
had raised. Along with other funds raised or committed, the total has reached more than
$60 million. Cool Planet’s CEO Howard Janzen said investors see an opportunity in the
161
Ventura ↔
Camarillo
Oregon >
Hillsboro
200
$10
NQF
#GR
#MA
#SB
}REL
Ventura ↔
Moorpark
Texas > Fort
Worth
600
$3.3
73
#BF
#SB
}CDO
Ventura ↔
Oxnard
Foreign Nation >
Unknown
NJR
N$R
NQF
#EC
}OSO
}REL
Ventura ↔
Simi Valley
Texas > Round
Rock
45
$3.5
37
#HQ
#MA
}CLO
}REL
company’s specialized technology. The startup is backed by the BP plc, ConocoPhillips,
General Electric Co. and Google Ventures. The latest round of fundraising included
investors from Hong Kong, Singapore, the United Arab Emirates (UAE), and Mexico.1117
(Side note: Within another five months, the company broke ground on the company’s first
commercial facility in Alexandria, Louisiana. the first of three bio-refineries to be built in
Louisiana. The refinery is designed to produce 10 million gallons per year of high-octane,
renewable gasoline blends. It also will make biochar, which enhances soil to boost yields
on reduced use of fertilizer and water.1118 The company raised another $71.6 million in
equity funding weeks after it broke ground on the first biofuel refinery.1119 Localities where
the company will put its plants are excluded from this list because the sites are near
needed raw materials.)
SolarWorld Americas – when the company moved production to Oregon in 2011, it said
its sales and marketing staff would stay in Camarillo. Two years later, some of the
functions are being relocated to Hillsboro, where the company employs about 600.1120
Note the opportunity cost to California. SolarWorld started expanding capacity in its
Hillsboro plant with a $10 million investment and plans for 200 new jobs. The expansion
will add 150 megawatts of capacity to its solar panel production line and 100 megawatts to
its cell line. SolarWorld Americas has invested $620 million to date in its Hillsboro plant,
which currently employs more than 700.1121 Some employees remain in Camarillo.
PennyMac Financial Services, Inc., a national mortgage lender and servicer, leased
73,000 sq. ft. and will bring 600 new jobs to Texas to service its loan portfolio. “We are
confident that Fort Worth and the surrounding region has an ample, skilled workforce; this
talent pipeline is essential to our successful business operations,” said Tim Nicholson, EVP
of Servicing at PennyMac. The company took occupancy in June 2013 and is already
building its staff and operations.1122 So far, roughly 75 workers have been hired and the
company plans to expand the facility over the next two years. 1123 PennyMac will invest at
least $1.5 million in real property improvements and have at least $1.8 million in noninventory business personal property at the site.1124
Nevion USA, Inc., subsidiary of Nevion Europe, ASA, furloughed employees and on-site
leased workers producing video transport equipment (for broadcasters, telecommunication
service providers and others) because the company shifted the work to a foreign country.
The Dept. of Labor didn’t identify the country, nor did it provide a figure for the number of
jobs lost, but did indicate that furloughs may have begun as early as Aug. 6, 2013. 1125
D.M.A/ Enterprises / ThermaSol will move its headquarters and manufacturing while
developing a 27-acre upscale business park. The 55-year old company is the inventor and
global producer of steam bath equipment for homes, hotels, spas and resorts. ThermaSol’s
total investment will be at least $3.5 million. The company’s new facility will include 37,000sq. ft. of space on nearly 3.5 acres. It will employ at least 45 people including factory
personnel and upper management.1126 The company will use all the land in developing an
industrial park.1127 Eventually, the company could employ as many as 60 people.
ThermaSol CEO Mitch Altman said, “We liked the bigger town amenities combined with the
small town feeling and warmth of the people.”1128 [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Texas leading to a reduction in expenses.]
162
Fisher Investments job growth in Camus, Washington – see note in 2010 entry about this
event.
132
Jobs
Adjustment
Chapter 19: Details Regarding 2012 Disinvestment Events
California Disinvestment Events for 2012 as shown in Table 18 are self-explanatory. Quite often in public domain sources
information was lacking about jobs, capital investments and square footage. In such cases, the following codes will appear:
NJR – No Job Number Reported
N$R – No Capital Investment Reported
NQF - No Square Footage Reported
Table 18: California Disinvestment Events for 2012
California
County &
Locality
Destination
Location
Alameda ↔
Berkeley
Mexico > Tijuana
Alameda ↔
Fremont
Alameda ↔
Fremont
Jobs
Private
Capital
(million)
Sq. Ft.
(000)
Function
or
Industry
Codes
Event
Type
NJR
N$R
12
#CP
#EC
#MA
}CDO
Unknown >
Dispersed
84
N$R
NQF
#GR
}CLO
}DSP
Unknown >
Dispersed
NJR
N$R
NQF
#GR
}CLO
}DSP
Information Available through Public Domain Sources
3D Robotics, which makes drones and parts, started manufacturing drones and kits in
Mexico. The growth in the sophistication of the facility is stunning when photos from
20131129 are compared to 2014 photos.1130 A post by CEO Chris Anderson indicates that
“Actually the TJ facility has been making almost all of the 3DR electronics (not just the
power modules) for nearly a year,” which puts the event into 2012.1131 The company has
60 employees in a 12,000-sq. ft. facility in Tijuana. Headquartered in Berkeley, 3DR does
engineering work in San Diego and marketing in Austin, Texas. The company started by
making products for civilians and tech enthusiasts, but has grown into a supplier to a
multitude of industries (see the 2014 Austin event for more information on this point).
GreenVolts, a manufacturer of photovoltaic solar technology, appears to have gone out of
business. The San Francisco Business Times referred to GreenVolts as a “bling-heavy
solar company, whose giant, flower-like solar arrays tracked the sun and concentrated it
thanks to a tons of engineering and moving parts.” The company reportedly is looking for a
buyer of its technology.1132 A listing with the California Secretary of State shows that
GreenVolts Inc. “surrendered” its corporate registration.1133 A WARN report indicated that
the company furloughed 84 employees in September, 2012.1134
NovaSolar Inc., according to the San Francisco Business Times, “appears on the brink of
becoming the latest failure in an area of Fremont quickly turning into a solar death row.” In
163
Alameda ↔
Fremont
China > Wuhan
Alameda ↔
Fremont
Arizona > Tempe
Alameda ↔
Livermore
Alameda ↔
Newark
NJR
N$R
NQF
#EC
#MA
}OSO
12
N$R
NQF
#EC
#EN
#RD
#SC
}CLO
Washington >
Seattle
Wisconsin >
Racine
NJR
N$R
NQF
NJR
N$R
NQF
#GR
#HQ
#MA
Alameda ↔
Newark
Korea > Chonan
NJR
N$R
NQF
#EH
#MA
}OSO
}REL
Alameda ↔
Oakland
Colorado >
Greenwood
Village
700
N$R
120
#EN
#IT
#PB
#SB
}CDO
}REL
fact, the company appears to have gone out of business. NovaSolar’s unfinished R&D
center sits less than a mile from the shiny former headquarters of Solyndra. NovaSolar’s
predecessor, OptiSolar, was born out of a research paper written at Hewlett-Packard in the
early 2000s and aspired to become a gigantic, vertically integrated solar powerhouse. 1135
A listing with the California Secretary of State shows that NovaSolar Inc. in the category of
“Forfeited,” meaning it failed to maintain the company’s registration.1136
Optoplex Corp. furloughed employees involved in activities related to the production of
fiber optical devices because the company shifted the work to China. The Dept. of Labor
didn’t provide a figure for the number of jobs lost, but indicated that furloughs may have
begun as early as April 8, 2012.1137 The company engaged a contract manufacturer
there.1138
Quantenna Communications, Inc. – The fabless semiconductor company opened a R&D
facility in Arizona. The team will work to develop technology for wireless set-top boxes,
residential gateways, video bridges, and other devices that deliver reliable broadband
video and data services over Wi-Fi. “We chose Tempe for our expansion because it offers
a highly skilled and talented workforce which is vital to the type of work we do,” said
Quantenna CEO Dr. Sam Heidari. “We couldn’t be happier with our decision and looking
forward to attracting the best Wi-Fi engineers in the industry.”1139 The company will open in
Tempe with 12 engineering and management jobs.1140 [Along with the reason cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations leading to a possible reduction in expenses.]
Comcast – See description under the 2012 Denver entry for more information about this
event.
CalStar Products, Inc. The company relocated its headquarters from Silicon Valley to
Wisconsin. CalStar manufactures sustainable masonry products made with up to 37%
recycled content in a process that uses up to 81% less energy and emits up to 84% less
CO2.1141 This event is separate from the 2009 plant opening in Wisconsin.
Matheson Tri-Gas, Inc., a subsidiary of Taiyo Nippon Sanso Corporation, Electronics
Division, furloughed employees and on-site leased workers producing electronics gases
and equipment used in the production of electronic devices because the company shifted
the work to South Korea. The U.S. Department of Labor in a certified decision failed to
provide a figure for the number of jobs lost, but indicated that furloughs may have begun
as early as March 14, 2012.1142 The company has a major facility in Chonan.1143
Kaiser Permanente began during the Depression in the 1930s in California, where it’s
always been headquartered.1144 In 2012 it plans for a 120,000-sq. ft. information
technology campus in Colorado.1145 The facility, planned for 500 employees, opened with
700 employees, which could grow to 900 employees.1146 The company said it selected
Colorado because of workforce and quality of life. “Quite frankly, these jobs – this activity –
in Colorado is intended to be a launch pad for our next wave of innovation,” said Kaiser
executive vice president Phil Fasano.1147 [Along with the reasons cited, it’s conceivable
that the location decision was influenced by lower business and employee costs, taxes
and fewer regulations in Colorado leading to a reduction in expenses.] Donna Lynne,
president of Kaiser Permanente Colorado, said the company received no financial
incentives to locate the IT center in the state.1148 It’s noteworthy that Colorado was
164
selected because in 2014 the distribution of members show more than three times as
many in California than are in all other eight states combined1149:
State(s)
California
Colorado
Mid-Atlantic States
(VA, MD, DC)
Northwest
(Oregon/Washington)
Georgia
Hawaii
Other 8 States
Combined
Alameda ↔
Pleasanton
Nevada > Reno
53
$180
NQF
##GR
#MA
}CDO
Alameda ↔
Pleasanton
Utah > Salt Lake
City
500
N$R
NQF
$EN
#IT
#SO
}CDO
Contra Costa
↔ Concord
Britain >
Unknown
89
N$R
NQF
#BF
#SB
}OSO
}REL
Membership
7,443,326
626,523
530,275
504,403
259,834
231,836
2,152,871
Fulcrum Bioenergy, Inc. The waste-to-biofuels company plans to build its biggest facility
to convert landfill trash into ethanol in Nevada to serve the California market; it will employ
53 employees. The cost of building the Sierra BioFuels Plant, a 10-million gallon project, is
estimated at $180 million. Nevada has a demand for ethanol of more than 50 million
gallons per year, and California’s demand is for more than 950 million gallons annually. So
California’s demand is 95% of the two-state usage.1150 The products from the plant will
serve motorists in California and Nevada. Also, Waste Connections will supply the
feedstock from its waste processing facility in El Dorado County, California.1151 It’s
noteworthy that its first plant is in Nevada considering that raw materials come from and
products are sold in California.
Workday, Inc., a software development firm specializing in enterprise cloud applications
for HR and finance, will expand in Utah with 500 new employees over a 15-year period (a
sizable portion of the company’s more than 1,500 employees worldwide). All of the new
positions will pay a minimum of 125 percent of Salt Lake County’s average yearly wage
including benefits, totaling more than $719 million. Workday will also pay over $54 million
in new state taxes over 15 years.1152
Bank of America, N.A. – There appears to be some duplication in filings with the
Department of Labor. In one instance, the Group Operations Derivatives Division
furloughed employees involved in global services, namely back office support for global
foreign exchange (FX) and FX options products. The company stated that “Pieces of the
operations are being moved to the U.K. and India” and employees involved in banking
services were furloughed. The Dept. of Labor didn’t identify the communities in those
countries, but did indicate that furloughs may have begun as early as Aug. 1, 2012.1153
Another filing was for the Customer Service Contact Centers, which furloughed call center
services employees. The company stated that jobs are being transferred outside of the
U.S. to Costa Rica, Mexico and India. Again, the Dept. of Labor failed to identify the
165
183
N$R
NQF
}OSO
}REL
Mexico >
Unknown
Costa Rica >
Unknown
Puerto Rico >
Yauco
89
N$R
NQF
}OSO
}REL
89
N$R
NQF
}OSO
}REL
91
N$R
NQF
#MA
#PB
}CLO
}REL
Contra Costa
↔ Concord
India > Unknown
23
N$R
NQF
#BF
}OSO
}REL
Contra Costa
↔ San
Ramon
Texas > Houston
800
$187
1,700
#IT
#EH
#EN
}REL
Contra Costa
↔ Walnut
Creek
Idaho > Boise
NJR
N$R
NQF
#CP
#SB
}CDO
Contra Costa
↔ Concord
Contra Costa
↔ Concord
Contra Costa
↔ Concord
Contra Costa
↔ Concord
India > Unknown
communities in those countries, but estimated the number of employees to be separated
was 450 effective May 20, 2012.1154 A Warn Report for 2012 showed a furlough of 450
Concord employees.1155 It’s unknown how many employees went to each country so for
purposes of this report 183 will be subtracted (a number that was published separately for
India) from 450, and for overall illustrative purposes the difference of 267 will be divided
and apportioned to the U.K., Mexico and Costa Rica.
Bank of America, N.A. See more about this event in the 2012 entry for Britain for this
company.
Bank of America, N.A. See more about this event in the 2012 entry for Britain for this
company.
Bank of America, N.A. See more about this event in the 2012 entry for Britain for this
company.
Sartorius Stedim SUS Inc., which makes IV-like, single-use sterile bags used by drug
manufacturers, will close its Concord plant, cutting 91 jobs, and move operations to an
expanded facility in Puerto Rico. A facility in Yauco, P.R., already made filtration products
that connect to bags assembled at Concord. When the company started looking at
efficiencies, it decided to consolidate in Puerto Rico.1156
Wells Fargo, Online Customer Service Department, Email Division, furloughed employees
providing email customer services because the company shifted the work to India. The
Dept. of Labor didn’t identify the community in that country; it indicated that furloughs may
have begun as early as Jan. 4, 2012.1157
Chevron – the company will relocate about a quarter of its Bay Area HQ staff Houston
over time but HQ will remain in San Ramon. The jobs are tied to Chevron’s worldwide oil
exploration and production business, notably in organizations dealing with IT, advanced
energy technologies and business development. Chevron was founded in California in
1879.1158 The company plans to hire another 1,752 workers in Houston.1159 Chevron is
planning a new downtown office tower to accommodate its expansion – a 50-story, 1.7
million sq. ft. building and along with other Chevron properties will comprise a campus with
indoor and outdoor common areas and additional parking.1160 While Chevron is planning to
construct the new tower, it states that it does not anticipate final approvals for a new
Houston building until 2016.1161 It doesn’t appear that Chevron has revealed the building’s
construction cost, so we are left to estimate. According to a report by the Kirksey
architecture firm, high-rise office buildings in Houston range in cost (in 2010) from $90 to
$125 per-square-foot.1162 If a conservative estimate of $110 per square foot is applied to
the project, the cost could reach a minimum of $187 million.
Central Garden and Pet Co. will establish a new shared services center in Idaho to
provide transactional processing services for the company’s U.S. operations. The center
will begin immediate recruiting, phase in operations in June, and expects to be completely
staffed within 18 to 24 months. The new facility will serve select administrative functions
beginning with finance and supply chain transactional tasks. Lori Varlas, CFO, said, Boise
offers considerable advantages including its skilled workforce, ease of doing business and
low cost profile. The company produces products for the lawn & garden market, including
grass seed, wild bird feed, weed and insect control, and decorative outdoor patio products.
Pet categories include animal health, aquatics & reptile, bird & small animal, dog & cat and
166
Contra Costa
↔ Walnut
Creek
Texas > Irving
250
N$R
102
#BF
}REL
Fresno ↔ Big
Creek
Fresno ↔
Fresno
Foreign Nation >
Unknown
Mexico > Tijuana
NJR
N$R
NQF
NJR
N$R
NQF
#MA
#PB
}OSO
}REL
Imperial ↔
Calexico
Philippines >
Unknown
47
N$R
NQF
#CP
#MA
}OSO
Inyo ↔
Bishop
Nevada > Reno
25
N$R
12.2
#GR
#HQ
}REL
Inyo ↔
Bishop
Kern ↔ Arvin
Foreign Nation >
Unknown
Mexico > Juarez
NJR
N$R
NQF
87
N$R
130
#OSO
#OSO
#MA
#PB
}CLO
}OSO
}REL
equine. The company, headquartered in Walnut Creek, has approximately 4,100
employees primarily in North America.1163
Pacific Union Financial, a national mortgage banker and servicer, leased office space in
Irving to relocate its headquarters. Ten months later, the company leased additional office
space in Dallas – a total of 102,000 sq. ft. – and announced plans to hire 250 more
workers. The privately held lender works with Fannie Mae, Freddie Mac, and Ginnie Mae
and was founded in 2004.1164
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Sunrise Medical furloughed employees and on-site leased workers involved in production
of wheelchairs because the company moved the production line to Mexico. The Dept. of
Labor didn’t provide a figure for the number of jobs lost, but indicated that furloughs may
have begun as early as Aug. 9, 2012. 1165
Gregory Mountain Products Inc., furloughed employees producing backpacks because
the company acquired from a foreign country the production of articles like or directly
competitive with the articles produced by the workers. The Dept. of Labor didn’t identify the
community in that country, nor did it provide a figure for the number of jobs lost, but
indicated that furloughs may have begun as early as June 28, 2012.1166
Pestmaster Services offers “the safest and most effective pest services available utilizing
green methods and low-to-no-toxicity products.”1167 It relocated its corporate headquarters
to Nevada with plans to create 25 jobs. The company specializes in solutions in pest
management in 14 states. Jeff Van Diepen, CEO, while noting the “warm welcome” he
received from the local business community, said, “In 30 years of doing business in
Bishop, and as one of the larger employers there, we never received so much as a Thank
You or any appreciation or recognition from our City Council or County Supervisors. I’m
impressed at seeing a state operate in a ‘business friendly’ manner. We’ve made a great
move to Reno and are happy to be here!” Pestmaster bought a 12,200 sq. ft. facility.1168
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Salter Labs furloughed employees and on-site leased workers involved in manufacturing
respiratory products, nebulizers, etc. Salter stated: “The company has decided to move its
production to Juarez, Mexico. As a result the Arvin manufacturing plant is closing. This is
being done to remain competitive.” Although the Dept. of Labor indicated that furloughs
may have begun as early as July 22, 2012,1169 based on media reports, furloughs
extended into the next year. One report said 87 Arvin jobs will be lost. “We have a state-ofthe-art facility in Juarez ... that had the majority of our manufacturing already. This was the
final move to consolidate all of manufacturing in one location,” said a company
representative. The news came about when Arvin (near Bakersfield) had a 30.6%
unemployment rate, the highest in Kern County. The medical products company started in
Arvin in 1976.1170 The company has operated a Juárez factory for years, recently moved
into a new 130,000 sq. ft. facility that employs 820 people, and will hire another 70-80
people in Juarez.1171 The company plans to keep its headquarters, a warehouse and 44
employees in Arvin.1172
167
Kern ↔
Bakersfield
Kern ↔
Mojave
Foreign Nation >
Unknown
Texas > Midland
NJR
N$R
NQF
10
N$R
60
#HQ
#RD
#CDO
#REL
Kern ↔
Mojave
Florida > Merritt
Island
150
N$R
NQF
#AE
}CDO
Los Angeles
↔ Alhambra
Los Angeles
↔ Beverly
Hills
Foreign Nation >
Unknown
Washington >
Seattle
NJR
N$R
NQF
NJR
N$R
NQF
#EN
#IT
#SO
}CDO
Los Angeles
↔ Burbank
India > Bangalore
60
N$R
NQF
#MA
}OSO
Los Angeles
↔ Carson
Malaysia > Kedah
140
$580
NQF
#GR
#MA
}CLO
}OSO
}REL
#OSO
#OSO
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
XCOR Aerospace will put its new R&D center at Midland International Airport (MAF) in a
renovated 60,000-sq. ft. hangar. “We are pleased to be establishing our R&D Center in
Midland, Texas, where the weather, surrounding landscape, the airport, and the local and
state government environment are ideally situated for the future growth [of] a fully reusable
orbital system,” said COO Andrew Nelson. The project will bring jobs with an estimated
average annual wage of more than $60,000.1173 Update (2014): The FAA issued a
commercial spaceport license to Midland International Airport, the first such license issued
to a facility that also hosts commercial passenger airline flights.1174 Update (2015): The
initial job count is 10 and many more will come in the next few months. Company
spokesperson Brian Campen said, “The center of gravity will be and is Midland, Texas.
From the conversations that we’re having it is most definitely the focus of a lot of our
attention in terms of where folks are now moving and where our corporate headquarters
and R&D operations are going to be.”1175 [Along with the reasons cited, it’s conceivable
that the location decision was influenced by lower business and employee costs, taxes
and fewer regulations in Texas leading to a reduction in expenses.]
XCOR Aerospace will to establish an East Coast U.S. operational base at Kennedy
Space Center in Merritt Island (unincorporated census-designated place) in Florida. The
point here is that it will eventually establish a manufacturing and assembly center for
XCOR Lynx Mark II suborbital reusable launch vehicles as well, creating an estimated 150
jobs.1176
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Ticketmaster opened a new engineering center in Seattle. SVP Cameron Etezadi said the
office will be much like a start-up, developing software with a green-field approach while
tapping into an unparalleled industry knowledge base.1177 Ticketmaster was recently
named to Fast Company’s Top 10 Music companies, and is the fourth largest eCommerce
platform in the world with 27 million monthly users.1178
Technicolor Creative Services USA, Inc., Media Services Division, furloughed
employees producing DVDs and Blu-ray DVDs because the company shifted to India “the
production of an article like or directly competitive with the article produced by the workers
which contributed importantly to worker group separations.” The Dept. of Labor indicated
that furloughs may have begun as early as Jan. 17, 2012.1179 A figure of 100 furloughs
was submitted to the Labor Department, but a WARN Notice shows 60 furloughs; this
report will relay the more conservative number.1180
Sanyo Electric Co. – The headline says it all: “Sanyo cuts US plant jobs to move to
Malaysia.” The Japanese company’s $580 million plant in the Kulim Hi-Tech Park, Kedah,
will produce 300 megawatts (MW) of wafers, solar cells and modules when operations
start later this year. Meanwhile, the closure of the nine-year-old Carson plant that makes
materials for solar cells will affect 140 workers, about 40% of Sanyo’s total workforce in the
U.S.1181 Sanyo will liquidate assets in Carson and close the factory for good. There are no
plans to close the doors of the Oregon production site. So what we have here is a
168
Los Angeles
↔ Compton
Los Angeles
↔ Culver City
Foreign Nation >
Unknown
Arizona > Tucson
NJR
N$R
NQF
200
$1.5
25
#AE
#DF
#EC
#EN
#RD
#SC
}CDO
Los Angeles
↔ Culver City
Canada >
Unknown
NJR
N$R
NQF
#ET
#PA
}OSO
}REL
Los Angeles
↔ Culver City
Los Angeles
↔ El Monte
India > Unknown
NJR
N$R
NQF
16
N$R
NQF
#CP
#MA
}OSO
}REL
Los Angeles
↔ El
Segundo
Unknown >
Dispersed
121
N$R
NQF
#EC
#MA
#SC
}CLO
}DSP
Los Angeles
↔ El
Segundo
Canada >
Unknown
250
N$R
NQF
#ET
#PA
}OSO
}REL
Mexico >
Unknown
#OSO
California facility being closed while an Oregon plant remains open and a new facility is
being built in Malaysia.1182
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Integrated Technologies Group (ITG) will expand in Tucson, where it purchased a
25,000-sq. ft. building for $1.46 million. Looking to meet growing demand, the company
chose Tucson partly because of its location between the Los Angeles area and its plant in
Mexico in 2008. The optics and engineering strengths of the University of Arizona, the
presence of other high-tech firms, and the availability of a skilled workforce also played in
the decision. The new location will focus on product integration and testing, including
clean-room assembly. The plant will employ planners, mechanical, electrical and quality
engineers, as well as test and production specialists. It is expected to employ up to 200
people in five years. The company’s magnetic components and related products for hightech applications span the semiconductor, medical, energy, industrial automation and
aerospace industries. ITG is not currently in line for any government incentives for moving
here but is looking into job-training funding offered by the state.1183 [Along with the reasons
cited, it’s conceivable that the location decision was influenced by lower business and
employee costs, taxes and fewer regulations in Arizona leading to a reduction in
expenses.]
Sony Pictures Imageworks Inc., a subsidiary of Sony Pictures Entertainment Inc., Visual
Effects Department, furloughed employees providing visual effects and digital animation
services for feature films because the company shifted the work to a foreign country. The
California EDD reported that the countries are Canada and India. The Dept. of Labor didn’t
identify the communities in those countries, nor did it provide a figure for the number of
jobs lost, but indicated that furloughs may have begun as early as June 13, 2012.1184
Sony Pictures Imageworks Inc. – See the 2012 entry for Canada for this company for
more information about this event.
Brown Jordan Co., subsidiary of Brown Jordan International, Inc., furloughed employees
and on-site leased workers engaged in the production of patio furniture because the
company shifted the work to a foreign country. The Dept. of Labor didn’t identify the
community in that country, nor did it provide a figure for the number of jobs lost, but
indicated that furloughs may have begun as early as July 8, 2012.1185
International Rectifier Corp. will close its El Segundo semiconductor wafer fabrication
facility without specifying how many jobs would be lost. According to the city, International
Rectifier employed 537 there last year, but didn’t specify how many of them worked in the
HQ and how many at the plant. A Temecula facility will house the last of its production in
Southern California. It will retain its El Segundo HQ.1186 The company planned to furlough
121 people on Aug. 2, 2012.1187
Rhythm and Hues, Inc. furloughed employees providing film visual effects and postproduction services as it shifted work to Canada and India. The Dept. of Labor didn’t
identify the communities in those countries, although it indicated that furloughs may have
begun as early as Sept. 23, 2012. The California EDD indicated that 500 jobs would be
lost.1188 Since it isn’t known how many of the 500 jobs will be shifted to which country; for
the purposes of this report, 50% will be attributed to each nation.
169
250
N$R
NQF
}OSO
}REL
Rhythm and Hues, Inc. – See the entry for this company’s Canada 2012 event for more
information.
10
N$R
NQF
}REL
Pacific Monarch Resorts – For details, see the Laguna Beach entry for this event.
81
N$R
NQF
#MA
}OSO
}REL
Unknown >
Dispersed
280
N$R
NQF
#FB
}CLO
}DSP
Los Angeles
↔ Irwindale
Los Angeles
↔ Long
Beach
Los Angeles
↔ Los
Angeles
Foreign Nation >
Unknown
Foreign Nation >
Unknown
NJR
N$R
NQF
#OSO
NJR
N$R
NQF
#OSO
Chromalloy Gas Turbine, LLC, subsidiary of Sequa Corp., furloughed employees
repairing and overhauling turbines because the company shifted the work to a foreign
country. The Dept. of Labor didn’t identify the community in that country, nor did it provide
a figure for the number of jobs lost, but indicated that furloughs may have begun as early
as March 20, 2012.1189
Bank of America employees will be transferred or laid off because the company will close
its corporate office by the end of the year; The bank has occupied four floors in a high-rise
building. The departure hits the city at a time when officials are trying to whittle down
Glendale’s 22% vacancy rate for Class A office space.1190
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Kansas >
Shawnee
80
N$R
19
#CP
#MA
}CDO
Los Angeles
↔ Los
Angeles
Texas > San
Marcos
90
$15
80
#MA
#PB
}CDO
Los Angeles
↔ El
Segundo
Los Angeles
↔ Encino
Los Angeles
↔ Gardena
India > Unknown
Los Angeles
↔ Glendale
Nevada > Las
Vegas
Mexico >
Unknown
All American Pet Company Inc. will place its new operational headquarters,
manufacturing and warehouse facility in Shawnee. The animal health and wellness
company plans to add more than 80 new employees over the next five years. All American
is the only public company singularly focused on pet wellness. It offers multiple products to
dog owners, including: “Pawitizer,” the first alcohol free antibacterial “cleanser” for dogs;
“Grrr-nola,” the first heart-healthy dry kibble and food bar with amino acids; and protein
food bars and breakfast cereals. The growth of our company necessitated a new facility in
the Midwest,” said CEO Barry Schwartz, who found Shawnee to be “extremely welcoming
and creative in meeting our space needs.”1191 The company leases 19,000 sq. ft. of space
in Shawnee.1192 [Along with the reasons cited, it’s conceivable that the location decision
was influenced by lower business and employee costs, taxes and fewer regulations
leading to a reduction in expenses.]
Grifols – The healthcare company opened its new plasma testing laboratory in San
Marcos, which will analyze millions of samples of human plasma prior to approval and
release for manufacturing into life-saving medicines for patients with rare diseases. Grifols
employs more than 1,100 Texans and contributes more than $150 million annually to the
state economy through payroll and other expenses. Grifols is based in Spain and its U.S.
headquarters and some manufacturing is in Los Angeles.1193 San Marcos is a $15 million,
80,000-sq. ft. facility.1194 The new unit will need a staff of 90 technicians, some of whom
will be current employees who want to transfer to San Marcos. The rest of the positions
will be filled locally. One of the reasons Grifols chose San Marcos was the proximity of
Texas State University.1195 [Along with the reason cited, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Texas leading to a reduction in expenses.]
170
NJR
N$R
NQF
#EN
#IT
#SO
}REL
Texas > Austin
32
N$R
115
#DO
#EN
#IT
#SO
}CDO
Los Angeles
↔ Los
Angeles
Philippines >
Unknown
52
N$R
NQF
#SB
}OSO
}REL
Los Angeles
↔ Los
Angeles
Texas > Amarillo
53
N$R
NQF
#BF
}REL
Los Angeles
↔ Los
Angeles
Nevada > Las
Vegas
150
$1
NQF
#GA
}CLO
}REL
Los Angeles
↔ Los
Angeles
Ohio > Forest
Park
NJR
N$R
32.5
#SB
}CDO
Los Angeles
↔ Norwalk
Foreign Nation >
Unknown
NJR
N$R
NQF
Los Angeles
↔ Los
Angeles
Virginia > Reston
Los Angeles
↔ Los
Angeles
#OSO
Learning Tree International – The global provider of proprietary training to IT
professionals since 1974 moved its headquarters, where it’s also adding staff to support
the company’s Product Development team. The company develops, markets and delivers
instructor-led courses in software development, IT security, operating systems, databases
and more.1196
Mitratech – The provider of enterprise legal management solutions including Matter
Management, e-Billing, and GRC solutions expanded in Austin, giving the company
access to an array of talent to support its growth strategy. President and CEO Eric
Thurston said Mitratech chose Austin “due the city’s favorable business climate, skilled
technology workforce, and highly desirable quality of life. As Mitratech continues to grow,
we are excited to have access to some of the best technology minds in the country to help
us develop new products for our customers....” The L.A. office will remain open.1197 It will
occupy a 115,000-sq. ft. Class A space.1198 The company has about 28 employees in
Austin and about 32 jobs will be added.1199 [Along with the reasons cited, it’s conceivable
that the location decision was influenced by lower business and employee costs, taxes
and fewer regulations in Texas leading to a reduction in expenses.]
ShoeDazzle, a subsidiary of JustFabulous, Inc., furloughed employees and on-site leased
call center workers because the company shifted the work to the Philippines. The Dept. of
Labor didn’t identify the community in that country, but indicated that furloughs may have
begun as early as Dec. 5, 2012.1200
SunAmerica, a Western National Life subsidiary, moved 53 management positions from
California to Amarillo, where it already has some operations.1201 It appears that other
functions will remain in the SunAmerica Center in L.A.’s Century City. The company offers
retirement products including annuities, 401ks and insurance.
Take-Two Interactive Software, Inc. (aka 2K Games Inc.) – Will relocate to Las Vegas,
where it plans to create 150 jobs make a capital investment of $1 million. The company
has started hiring locally and has transferred executives to Las Vegas. It develops and
publishes interactive entertainment under the labels Rockstar Games and 2K – with game
titles Grand Theft Auto, L.A. Noire, Max Payne, Midnight Club and Red Dead.1202 David
Ismailer, COO for 2K, said, “This move will allow 2K to operate a considerably larger &
more effective QA facility as we continue to grow our business across all divisions.”1203
[Along with the reasons cited, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes and fewer regulations in Nevada leading to a
reduction in expenses.]
VXI Global Solutions Inc. began planning for a new contact center in Ohio in 2012. The
company clarified that places near its existing Ohio locations weren’t being considered
“due to overlap in demand for local talent.”1204 Later it became known that the company
was studying and opted to locate in Forest Park, near Cincinnati, where the “beautifully
appointed building is a state-of-the-art call center with over 250 seats, and can be
converted to manage 500 seats overall.” Positions include Customer Service & Sales
Representatives, Team Leaders, Operations Managers, Human Resources Staff, Quality
Assurance Specialists, Trainers and others.1205 The space exceeds 32,500-sq. ft.1206
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
171
30
N$R
100
#CP
}CDO
Nevada >
Gardnerville
NJR
N$R
13
#AE
#MA
}CLO
}REL
Los Angeles
↔ Panorama
City
Mexico > San
Luis Potosi
NJR
N$R
NQF
#MA
}OSO
}REL
Los Angeles
↔ Pico
Rivera
Foreign Nation >
Unknown
22
N$R
NQF
#CS
#SB
}OSO
}REL
Los Angeles
↔ Pico
Rivera
Mexico >
Tiajuana
17
N$R
NQF
#MA
}OSO
}REL
Los Angeles
↔ Pomona
Arizona >
Phoenix
110
N$R
NQF
#CS
#HQ
#MA
}REL
Los Angeles
↔ Pomona
Los Angeles
↔ Redondo
Beach
Foreign Nation >
Unknown
Foreign Nation >
Unknown
NJR
N$R
NQF
NJR
N$R
NQF
#SB
#SO
}OSO
Los Angeles
↔ Rosemead
Foreign Nation >
Unknown
NJR
N$R
NQF
#IT
#UY
#OSO
Los Angeles
↔ Palmdale
Texas > Weir
Los Angeles
↔ Palmdale
#OSO
Abadak Outdoors, which supplies outdoors equipment such as tents, tarps and
hammocks, expanded to Texas.1207 The facility will bring 30 jobs into a 10-acre site
featuring a 100,000-sq. ft. warehouse, retail store and outdoor display area.1208
Aerospace and Commercial Precision Machining – The manufacturing company
completed a long-anticipated move to Nevada, into a 13,000-sq. ft. facility. AnC President
Greg Havemann said he relocated the company from Southern California after 32 years
because he finally soured on California’s business practices and regulatory
environment.1209
Ricon Corp., a Wabtec Co., furloughed employees and on-site leased workers engaged in
the manufacture of wheelchair lifts and ramps for buses, and bus windows, because the
company shifted the work to Mexico. More specifically, the move involves three fabrication
lines, one paint line and one assembly line to a company division in Mexico. The Dept. of
Labor indicated that furloughs may have begun as early as Aug. 13, 2012.1210 Information
about the number of furloughs is conflicting; therefore, Ricon’s shifts in jobs is excluded
from this report.
L & W Supply, Inc. (USG Corp.) The building materials company furloughed employees
involved in accounting and payroll services because the company shifted the work to a
foreign country. The Dept. of Labor didn’t identify the country, nor did it provide a figure for
the number of jobs lost, but indicated that furloughs may have begun as early as Feb. 20,
2012.1211
Legrand North America, Inc., Cablofil Division, furloughed employees and on-site leased
workers producing cable trays because the company shifted the work to Mexico. The Dept.
of Labor didn’t provide a figure for the number of jobs lost, but indicated that furloughs may
have begun as early as Aug. 20, 2012.1212
Adams Rite Manufacturing Co. relocated its headquarters and a factory to Phoenix. It
was a challenging move. The company needed to have its production lines stay
operational as long as possible, relocate production ASAP, and get them producing as
quickly as possible. Adams Rite has been in business for over 100 years in the door
design and production market serving the commercial, industrial and institutional building
construction industry.1213 In May, 110 California employees were furloughed.1214
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Mitchell International, Inc., furloughed employees and on-site leased workers in the ACS
Service Centers in Los Angeles and San Diego engaged in customer service and support,
data processing, and bill review for a software development firm because the company
“acquired from a foreign country the production of articles like or directly competitive with
the articles produced by the workers which contributed importantly to worker group
separations at Mitchell International.” The Dept. of Labor failed to specify what country, but
noted that furloughs may have begun as early as on Aug. 29, 2012.1215
Southern California Edison, a subsidiary of Edison International, furloughed employees
and on-site leased workers providing IT services because it shifted the work to a foreign
country. The offshoring of IT work affected a broad area in California – 28 communities in
all. Company filings with the U.S. Department of Labor list the jobs figure at 700 in
response to the question, “How many workers have been or may be separated (if
172
Los Angeles
↔ San Dimas
Los Angeles
↔ San
Fernando
Foreign Nation >
Unknown
Foreign Nation >
Unknown
NJR
N$R
NQF
NJR
N$R
NQF
Los Angeles
↔ Santa
Clarita
Los Angeles
↔ Santa Fe
Springs
Foreign Nation >
Unknown
NJR
N$R
NQF
9
N$R
NQF
#AU
#MA
}OSO
}REL
Los Angeles
↔ Santa Fe
Springs
Washington >
Spokane
12
N$R
NQF
#EN
#MA
}REL
Los Angeles
↔ Sherman
Oaks
Canada >
Unknown
NJR
N$R
NQF
#ET
#PA
}OSO
Los Angeles
↔ Sun Valley
Oklahoma >
Tulsa
51
$19.8
NQF
#AE
}REL
Mexico >
Ensenada
#OSO
#MA
}OSO
}REL
#OSO
known)?” In the 28 “Determinations” issued by the Labor Department, not one specified to
which foreign country the jobs migrated. The workers in the group were certified and
eligible to apply for trade adjustment assistance under the Trade Act of 1974, as amended.
SCE’s filings with the Labor Department fail to provide information about the number of
furloughs in each of the 28 communities.1216 Moreover, the company’s WARN Notice
filings contain total layoffs far in excess of 700, a result of major workforce reductions at
the SONGS nuclear plant in San Clemente and an apparent company reorganization.
Because it is difficult to identify communities to which job losses should be attributed, no
portion of the 700 jobs is assigned to any California community. Moreover, the 700 jobs
figure conflicts with a calculation done for this report that indicates only 313 jobs were
affected. Hence, this report will state 313 in the adjustment shown at the bottom of this
table.
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Precision Dynamics Corp. furloughed employees producing identification wristbands and
labels because the company shifted the work to a foreign country. The Dept. of Labor
didn’t identify the country, nor did it provide a figure for the number of jobs lost, but
indicated that furloughs may have begun as early as Aug. 3, 2012.1217
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Distinctive Industries, a subsidiary of Roadwire Inc., furloughed employees and
furloughed on-site leased workers producing automotive interior soft trim upholstery
because the company shifted the work to Mexico. The Dept. of Labor didn’t provide a
figure for the number of jobs lost, but indicated that furloughs may have begun as early as
Dec. 11, 2012.1218
Moen Industries, a company that makes packaging equipment, was purchased by
Pearson Packaging Systems, which moved its manufacturing equipment and production to
Spokane. The relocation brings at least 12 new jobs to Spokane; most will be assembly
technicians while some jobs will be engineers. The deal was for Moen’s assets and
patents and customer information; it did not include the Moen Santa Fe Springs facility.
The transaction means Pearson will have a Southern California sales office. [Along with
efficiencies resulting from the acquisition, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in
Washington leading to a reduction in expenses.]
DHX Media Ltd. furloughed WildBrain employees producing children’s animated shows
and licensing properties because the company acquired from a foreign country the
production of articles like or directly competitive with the articles produced by the workers.
The Dept. of Labor didn’t identify the country, nor did it provide a figure for the number of
jobs lost, but indicated that furloughs may have begun as early as Aug. 9, 2012. The
California EDD stated that “The work was transitioned to other locations including
Canada.”1219
Hawker Pacific Aerospace – The unit of Lufthansa transferred its operations to Lufthansa
Technik Component Services in Tulsa. The company is planning a $19.8 million expansion
173
NJR
N$R
NQF
#DC
#EN
#IT
}REL
39
N$R
NQF
#PB
#RD
}OSO
}REL
111
N$R
NQF
#MA
}CLO
}REL
44
N$R
NQF
#ET
}REL
Texas > Grand
Prairie
300
$22
850
#CP
#DN
#SB
}CDO
Tennessee >
Loudon
NJR
N$R
NQF
#CP
#HQ
#MA
}REL
Los Angeles
↔ Torrance
Georgia > Atlanta
Los Angeles
↔ Torrance
Belgium >
Brussels
Los Angeles
↔ Vernon
Ohio > Stow
Los Angeles
↔ Westlake
Village
Colorado >
Centennial
Marin ↔
Corte Madera
Merced ↔
Merced
to accommodate the transfer that should result 51 jobs in about five years, with an average
salary of about $70,000 per year.1220
PC Mall relocated and substantially upgraded its primary data center from Torrance to its
own hosting facility in Atlanta, which incorporates state-of-the-art monitoring and disaster
recovery capabilities.1221 [Note that data centers use significant amounts of electricity, and
such costs are much lower in Georgia than in California.]
Peptisyntha, Inc., furloughed employees involved in activities related to the production of
peptides because the company shifted the work to Belgium. The Dept. of Labor didn’t
identify the community in that country, nor did it provide a figure for the number of jobs
lost, but indicated that furloughs may have begun as early as March 26, 2012.1222 At the
time of the event it was a subsidiary of Solvay America, Inc.; since, it’s been purchased by
CordenPharma.
Pneumatic Scale Angelus – The 102-year-old California company, which manufactured
machines for sealing lids on soda and beer cans in Vernon, shut down operations and
moved production to Stow, Ohio, near Akron. That meant lost jobs for 111 members of the
United Steelworkers Union in Vernon.1223
Universal Sports Network moved its production and broadcast operations from California
to the Denver area, creating 44 new jobs in 2013 at the Comcast Media Center. The
network, a partnership between NBC Sports and InterMedia Partners LP, broadcasts
about 30 different sports and 25 different world championships each year in sports from
swimming to cycling to track and field. It also produces original programming.
Administrative jobs will remain in California.1224
Restoration Hardware Holdings Inc., a high-end furniture and decorations company, will
build a $22 million, 850,000-sq. ft. facility in Grand Prairie. The retailer planned to create a
minimum of 10 jobs.1225 However, it’s clear the project was scaled up big-time when the
company announced plans to hire more than 300 employees for what is no longer
exclusively a distribution center but also an operations center and call center. Job
openings will include operations managers, customer service, leadership positions and
maintenance workers.1226
Malibu Boats was founded in Merced in 1982.1227 While it’s difficult to determine the date
when the headquarters moved to Tennessee, it appears to have been in 2012. The
company’s 2011 “Owner’s Manual” shows the HQ address in Merced,1228 while the 2012
version shows it in Loudon, Tenn.1229 Moreover, sometime in 2012 the company allocated
funds for “one-time employment related expenses, including ... costs to relocate certain
departments from California to our Tennessee facility.”1230 Update: By 2014, the company
stated that “Our boats are manufactured and tested on the lake at the site of our 144,000
square-foot primary manufacturing facility located in Loudon [where the company leases]
23,460 square feet of warehouse and office space [and] approximately 20,000 square feet
of warehouse space in Lenoir City, Tennessee.” It also owns 16.7 acres of land in Loudon
that is available for future expansion. As of Sept. 30, 2013, the company employed 333 in
Tennessee, 68 in California.1231 (During 2006 the company invested $2.2 million in
Loudon.1232 Subsequent investments are unknown because Malibu Boats, as a privately
owned company, was not required to divulge such information.) The company became a
publicly traded company in February, 2014.1233
174
Monterey ↔
Marina
Nevada > Reno
20
N$R
NQF
#MA
}CLO
}REL
Monterey ↔
Salinas
South Dakota >
Sioux Falls
869
N$R
NQF
#BF
#SB
}CLO
}REL
Napa ↔
Napa
Nevada > Reno
NJR
N$R
NQF
#DO
#FP
}CLO
}REL
Napa ↔
Napa
Unknown >
Dispersed
290
N$R
NQF
#PB
}CLO
}DSP
Nevada
County ↔
Nevada City
Foreign Nation >
Unknown
20
N$R
NQF
#EC
#MA
}OSO
}REL
Thermo-Stone USA – The company puts a thin heating element onto glass and ceramic
used in laser printers and Breathalyzers. Owner Kerry Goodsel said, “We’ve been growing
60 to 70 percent a year for the past two years and knew we were going to outgrow our
facility.... We couldn’t find anything reasonable so we [looked] outside California.... Real
estate, power, workers comp, just the cost of doing business in Nevada and you combine
all of that with the quality of life living in Reno” and it was an easy decision.... his workers
comp cost was cut in half by moving. “It was kind of shock to me. Our water bill will go
down.... We’re paying half what this place would’ve cost us in California. We’ll save 10 to
15 percent on the bottom line.” And he said, “I’ve already met more entrepreneurs,
especially on the manufacturing side, who’ll talk to you and help you out. In California, you
kept your head down and it was every man for himself. Here, it’s a small network but it’s a
strong network of other business owners.” He found the University of Nevada, Reno’s
electrical engineering program and area technical schools provide well-trained and
educated people.1234 The company plans to add 30 jobs within the next two years. 1235
Capital One – The financial services company furloughed 869 people in September,
20121236 as it began closing its Salinas operation. Note, however, that it opened a similar
credit-card processing center in Sioux Falls.1237 Here is a California report from the
(Monterey) Herald, “The day before Salinas employees learned of the cutbacks, Capital
One had officially taken over the facility after a $2.6 billion deal to buy HSBC’s U.S. credit
card business.... Meanwhile, rubbing salt into the wound were news reports of Capital
One, amid much fanfare, keeping 400 former HSBC employees ... with plans to add 400
more.”1238 Here is a South Dakota report: Capital One took over the “old HSBC building
where it will hire 400 new employees this year and still retain the 400 HSBC employees
who already worked in the building, putting South Dakota and Sioux Falls “on the map” as
a credit card center.... At the same time that Capital One is adding jobs here in South
Dakota, it is cutting jobs in California. Capital One announced Wednesday more than 800
workers in Salinas, California, will lose their jobs ... after they decided to close the HSBC
location there.”1239
Mirepoix USA – Laurel Pine moved her business selling foie gras, truffles, caviar and
other gourmet foods to Reno in 2012 to avoid the foie gras ban that would have shut her
down. “If I had stayed in California, not only would I not be able to sell to Californians, I
wouldn’t be able to sell to the rest of the United States,” she said. A new law banned the
sale of foie gras within California.1240 California Democratic Party Chairman John Burton is
the man behind the ban.1241 Many Californians travel to Reno to purchase the product.1242
Mylan Specialty, a pharmaceutical manufacturer formerly known as Dey LP, will close in
Napa where it produces respiratory and nasal pharmaceutical products. There are more
than 260 employees at the site and more than 30 temporary contract workers; all will lose
their jobs in 2012. A company spokesperson said, “This decision follows a careful
assessment of market dynamics, the cost structure at our site in Napa Valley, and other
alternatives for production of the products in that site’s portfolio” and is consistent with the
firm’s ongoing efficiency and cost-effectiveness efforts.1243
Sierra Video Systems, a Kramer Electronics Co., furloughed employees and on-site
leased workers producing routing, control and infrastructure systems for the audio/visual
industry, specifically the development and manufacturing of routing switches and
175
Orange ↔
Aliso Viejo
Texas > Austin
40
N$R
14
#SO
}CDO
Orange ↔
Anaheim
Mexico >
Unknown
23
N$R
NQF
#MA
}OSO
}REL
Orange ↔
Anaheim
Mexico > Tecate
16
N$R
NQF
#EC
#MA
}OSO
}REL
Orange ↔
Anaheim
Orange ↔
Brea
Nevada > Las
Vegas
Mexico > Tijuana
5
N$R
NQF
NJR
N$R
NQF
#CP
#MA
}OSO
}REL
Orange ↔
Buena Park
Mexico > Tijuana
12
N$R
NQF
#EC
#MA
}OSO
}REL
Orange ↔
Costa Mesa
Vermont >
Burlington
NJR
N$R
NQF
#CL
#HQ
}CLO
}REL
}REL
equipment, because the company shifted the work to a foreign country. The Dept. of Labor
didn’t identify the country, but indicated that furloughs may have begun as early as Feb.
20, 2012.1244
Telogis Inc. develops software for fleets of trucks to help with routing, work order
management and navigation. It will open a 14,000 sq. ft. office in Austin in December,
which will initially employ 40 workers in a variety of functions, including quality assurance,
development, customer support and training.1245
American Fuji Seal, Inc., a subsidiary of Fuji Seal Japan furloughed employees involved
in production of shrink labels because the company shifted the work to Mexico. (Shrink
labels are used on all kinds of products, such as soft drinks, packaged food, cleaning
products, and more.) The U.S. Department of Labor failed to specify what community in
that country and indicated that furloughs may have begun as early as Sept. 20, 2012.1246
Perhaps it’s noteworthy that a little more than three months earlier, on June 12, the
company announced it will expand operations in Bardstown, Ky., creating 45 jobs with a
$10 million investment. American Fuji Seal is part of the Fuji Seal International packaging
company based in Osaka, Japan, and its North American headquarters is in
Bardstown.1247
Econolite Control Products, Inc., subsidiary of Econolite Group, Inc., furloughed
employees producing intersection traffic control hardware equipment because the
company shifted the work to Mexico. The Dept. of Labor didn’t provide a figure for the
number of jobs lost, but indicated that furloughs may have begun as early as Dec. 10,
2012.1248
Pacific Monarch Resorts – For details, see the Laguna Beach entry for this event.
Avery Products furloughed employees and on-site leased workers engaged in the
production of office products such as binders, labels, dividers, etc. because the company
shifted the work to “Mexico and Canada.” The Dept. of Labor didn’t identify the
communities in those countries, nor did it provide a figure for the number of jobs lost, but
indicated that furloughs may have begun as early as Nov. 19, 2012.1249 When it comes to
Mexico, it is likely that work shifted to Tijuana because (1) At the time Avery had a
524,000-sq. ft. plant there that also produced binders and labels; (2) that plant kept
expanding since its founding in 2004 in part because of gaining work that had been
transferred from California (from Fontana); and (3) it was expected that a 2011 expansion
would bring the plant’s share of Avery Dennison’s North American office products
production to 66% from just 15% in 2004.”1250 A 2013 WARN Notice shows a furlough of
75 employees,1251 but since it isn’t known how many jobs to attribute to this event, no
furlough figure is provided for this event.
Leach International, subsidiary of Esterline Corp., furloughed employees and on-site
leased workers engaged in production of relays, contactors and/or power distribution units
because the firm shifted the work to Mexico. The Dept. of Labor didn’t provide a figure for
the number of jobs lost, but indicated that furloughs may have begun as early as Aug. 14,
2012.1252
Analog Clothing – The Surf brand is shutting down its Orange County operation and
moving to Vermont, where its parent company, Burton Snowboards, is located. The
176
Orange ↔
Costa Mesa
North Carolina >
Morrisville
15
N$R
NQF
#HQ
#RD
}CLO
}REL
Orange ↔
Dana Point
Texas > Austin
12
N$R
NQF
#GR
#HQ
}CLO
}REL
Orange ↔
Foothill
Ranch
Foreign Nation >
Unknown
NJR
N$R
NQF
#CP
#MA
}OSO
}REL
Orange ↔
Fullerton
Orange ↔
Fullerton
Foreign Nation >
Unknown
Mexico > Mexicali
NJR
N$R
NQF
45
N$R
NQF
#EC
#MA
}OSO
}REL
Orange ↔
Huntington
Beach
Texas > Houston
25
N$R
NQF
#EH
#HQ
}CLO
}REL
#OSO
clothing line will re-focus on snow gear. At the Vermont headquarters, recent renovations
and additions have been made to make room for Analog to join Burton’s operations.1253
Oxygen Biotherapeutics, Inc. relocated its headquarters and R&D from Costa Mesa to
North Carolina. President/CFO Michael Jebsen said, “North Carolina has the business
climate, facilities and creative talent we need to help push our programs forward.” The
company had wanted to relocate for some time but Southern California’s real estate
market was hit by the recession and the company was unable to sublet its lab and office
space until now. The Raleigh-Durham area is home to one of the nation’s top R&D
centers, Research Triangle Park, which started in 1959. SVP Ellen Corliss said, “This is as
good a hotbed of biomedical research as California. Raleigh-Durham has a great
workforce.” David Anast, publisher of Biomedical Market Newsletter and Medical E-Mail
News, said California has lost other such firms and many companies won’t say why they’re
leaving California. “At medical conventions (held in California) in recent years, 17 to 25
states have had booths for their economic development departments eager to help
companies move to friendlier (business) climates,” Anast said. “Yes, rising expenses, rent,
unfair unemployment insurance burdens and other constantly sky rocketing costs, do have
consequences.” The company develops products to improve delivery of oxygen to the
body for treatment of wounds, traumatic brain injury and strokes.1254 Its products include
Oxycyte and Dermacyte.1255
MC Endeavors Inc. – The company relocated its headquarters to Austin; it will close its
California office but maintain a presence with a small group of personnel. The company
was founded in 2011.1256 It is starting out with 12 employees in Austin.1257 MC Endeavors
is a smart-home builder and self-sustaining community developer of natural disaster
resistant building systems that utilize steel framing and steel shipping containers with
ceramic coating insulation instead of conventional wood framing and rolled fiberglass; it
also integrates solar, wind, and biogas technologies.
Oakley Manufacturing, a division of Oakley, Inc., a subsidiary of Luxottica U.S. Holdings
Corp., furloughed employees and on-site leased workers producing sunglasses,
prescription eyewear, military glasses, and goggles because the company shifted the work
to a foreign country. The Dept. of Labor didn’t identify the country, nor did it provide a
figure for the number of jobs lost, but indicated that furloughs may have begun as early as
Sept. 19, 2012.1258
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
TTelectronics/BiTechnologies furloughed employees and on-site leased workers
because “production and customer service roles are being moved to Mexicali.” The Dept.
of Labor indicated that furloughs may have begun as early as Sept. 12, 2012.1259
Global NuTech Inc., engaged in distribution of cleaning products and oil production from
marginal wells, changed its name and moved to Houston. Purchase of a company located
there was a big reason, but company spokesman and banker Tim Connolly, adding that
“taxes and the cost of doing business in California were (also) pretty significant factors in
moving. When it comes to manufacturing and energy in particular, it’s difficult to do
business in California.” The company changed its name to Texas Gulf Energy Inc. and will
177
Orange ↔
Huntington
Beach
Arizona >
Chandler
Orange ↔
Huntington
Beach
8
N$R
NQF
#PA
}CLO
}REL
Ohio > Mentor
150
$1
NQF
#MA
}REL
Orange ↔
Irvine
New Jersey >
Bridgewater
387
$11.6
93
#PB
#RD
}CDO
Orange ↔
Irvine
Texas > Houston
NJR
N$R
NQF
#PF
#SB
}CLO
}REL
Orange ↔
Irvine
India > Unknown
NJR
N$R
NQF
#MA
#SC
}OSO
}REL
Orange ↔
Irvine
India > Unknown
NJR
N$R
NQF
#SB
}OSO
}REL
no longer have a physical presence in California.1260 Once in Houston, the company
formed a new subsidiary to provide electrical and engineering services.1261
Hanger 17, which does screen printing for companies worldwide, moved to Arizona.
Comparing the two states, company owner Les Hunt said, “The difference in attitude was
unbelievable. I left a message (with the city of Chandler) on a Friday afternoon, and people
called me back on Saturday. They said, ‘We’d love to have you come out. We’ll take you to
lunch and show you around.’” He moved the company to Chandler in September 2012
after 44 years in California. Why? “Paint thinner,” he said. “It’s outlawed in Orange
County.... We used to pay $20 for resins, now it’s $120, and $100 of that is a hazardousmaterial handling fee. Resin comes from trees in California!”1262
JE Pistons, Inc. – The manufacturer of high-performance pistons is relocating its
advanced manufacturing center to Ohio; it will occur in stages from July through November
2012 and will involve moving more than 75 of the company’s CNC machines and
supporting equipment. The company has made a capital investment of more than $1
million to the Mentor facility. The company will retain a California presence, retaining
certain sales and engineering personnel.1263 “We will not discontinue any manufacturing
capability in Huntington Beach until corresponding capabilities are established in the new
facility.”1264 The move will bring up to 150 jobs to Mentor.1265
Allergan, Inc. opened its first large NJ facility, a 93,000-sq. ft. R&D Center that will focus
on clinical development.1266 According to NJBIZ: “With a need to hire experienced workers,
Allergan Inc. thought it would be an easy sell to convince New Jersey pharmaceutical
veterans to relocate for jobs in sunny southern California. But the task proved quite
difficult, said Scott D. Sherman, executive vice president for human resources [because]
fears about the housing and labor markets made workers skittish about moving across the
country. So Allergan tried a different approach. ‘Instead of working hard to move people
from New Jersey to California, which is expensive and difficult, we’re taking jobs that we’re
growing … and we’re bringing the labor demand to the labor supply,’ Sherman said.” David
E. I. Pyott, Allergan’s CEO, said Allergan looked at other states for the positions but the
salary differential was small. “And after California, anything’s cheaper,” he said.1267
American Spectrum Realty, Inc., a real estate investment, management and leasing
company headquartered in Houston, plans to reduce costs $500,000 annually by
transitioning the accounting department from California to Houston. Houston’s low cost of
living and rich employment pool of qualified applicants were factors in the decision. The
company owns, office, industrial, self-storage, retail properties and multi-family properties
throughout the United States.1268
Broadcom Corp., Infrastructure & Networking Business Unit - Controller Group,
furloughed employees and on-site leased workers involved in supply of quality assurance
services for semiconductors because the company shifted the work to a foreign country.
The Dept. of Labor didn’t provide a figure for the number of jobs lost, but indicated that
furloughs may have begun as early as July 30, 2012. California EDD reported that the
country was India, but failed to identify the community within that country.1269
HireRight, Inc., (subsidiary of Altegrity) International Background Checks Division,
furloughed employees providing employment background screening services because the
company shifted the work to India and the Philippines. The Dept. of Labor didn’t identify
178
Orange ↔
Irvine
Orange ↔
Irvine
Philippines >
Unknown
Arizona >
Chandler
Orange ↔
Irvine
Orange ↔
Irvine
Nevada > Las
Vegas
China > Unknown
Orange ↔
Irvine
Orange ↔ La
Palma
Orange ↔
Laguna
Beach
Orange ↔
Laguna Hills
NJR
N$R
NQF
}OSO
}REL
25
$30
130
7
N$R
NQF
32
N$R
NQF
Foreign Nation >
Unknown
Foreign Nation >
Unknown
Nevada > Las
Vegas
NJR
N$R
NQF
#OSO
NJR
N$R
NQF
#OSO
31
N$R
NQF
#HC
}REL
Florida >
Sarasota
NJR
N$R
NQF
#CP
}CLO
}REL
#EN
#DC
#IT
}CDO
}REL
#EC
#MA
}OSO
}REL
the community in that country, nor did it provide a figure for the number of jobs lost, but
indicated that furloughs may have begun as early as Aug. 27, 2012.1270 Some references
indicate that HireRight also outsourced work to Poland, and the company has a location in
Katowice. But because it was established in 2004, and current job transfers are unclear, it
is excluded from any count in this report. Just as FYI, during 2013, the company had 190
employees in Katowice.1271
HireRight, Inc. – For more information about this event, see the 2012 company entry for
India.
NextFort Ventures, a provider of energy-efficient modular data centers, is breaking
ground on a new data center in Chandler. The 130,000-sq. ft. facility will be a mix of offices
and computing suites. NextFort employs innovations in power distribution, cooling and
facilities architecture to achieve up to 40% better energy efficiency compared to other data
centers.1272 The data center will cost up to $30 million and employ about 25 people.1273
[Note that data centers use significant amounts of electricity and such costs are lower in
Arizona than in California.]
Pacific Monarch Resorts – For details, see the Laguna Beach entry for this event.
Sabritec, a subsidiary of Smiths Group, furloughed employees and on-site leased workers
designing and producing filter connectors, high speed Quadrax and Twinax for Fibre
Channel, Ethernet IEE 1394 Firewire, fiber optic, coax, triax, high power and high-density
products because the company shifted the work to China. The California EDD indicated
that 32 jobs would be affected. The Dept. of Labor didn’t identify the community in that
country, although it indicated that furloughs may have begun as early as April 13, 2012.1274
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Pacific Monarch Resorts, which specializes in timeshares, filed for bankruptcy protection.
It later merged with Nevada-based Diamond Resorts and California jobs were cut with
employees offered jobs in Las Vegas. The consolidation means the loss of jobs 64 jobs in
seven California communities. Positions were eliminated in functions such as HR,
accounting, finance, IT and legal.1275 [Along with efficiencies resulting from the acquisition
and consolidation, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Nevada leading to a
reduction in expenses.]
MSOC, Inc. – The company was more commonly known as Mainly Seconds – Pottery
Plants & Things. The Gulf Coast Business Review reported that “Mike Bonk, who built a
successful chain of houseplant and pottery stores in Orange County, Calif., over 30 years
[and] had $12 million in annual sales, seven stores and 200 employees” moved to Florida.
“I started with $15,000 and a dream,” Bonk said. “But the business climate wasn’t good in
California. We were anxious to leave.” According to the newspaper, “High taxes, loads of
regulations and what Bonk calls a state of entitlement among employees are common key
culprits.... Bonk’s government-induced frustration, meanwhile, began to grow over the last
five years. California’s muddled workers’ compensation program was especially painful:
179
Orange ↔
Los Alamitos
Unknown >
Dispersed
Orange ↔
Newport
Beach
Orange ↔
Newport
Beach
Nevada > Las
Vegas
Orange ↔
Orange
Orange ↔
San
Clemente
Orange ↔
Westminster
Placer ↔
Penryn
456
N$R
NQF
4
N$R
NQF
NJR
N$R
NQF
#PA
}CLO
}REL
Texas > Lubbock
84
N$R
NQF
#SB
}REL
Foreign Nation >
Unknown
NJR
N$R
NQF
#OSO
Foreign Nation >
Unknown
Texas > Athens
NJR
N$R
NQF
#OSO
75
N$R
19
Michigan > Ann
Arbor
#FP
}CLO
}DSP
}REL
#MA
}REL
Bonk says his costs and insurance premiums grew 314% over three years, from $70,000
to $290,000. Says Bonk: ‘The system was getting out of control.’” The new business is
called Plants & Treasures.1276
Bloomfield Bakers in Los Alamitos furloughed 456 employees in February1277 when its
owner, Ralcorp, closed the facility. The action followed termination of “a co-manufacturing
business that did not meet minimum profit margin requirements.1278
Pacific Monarch Resorts – For details, see the Laguna Beach entry for this event.
Road & Track, the iconic car-enthusiast magazine, announced that after more than 50
years it is leaving California for Michigan. Hearst Magazines, which bought R&T a year
ago, will move it to Ann Arbor. “Building a new home for Road & Track in Michigan, where
Hearst’s other automotive magazine, Car and Driver, is based, allows us to be close to the
heart of the automotive industry,” according to a spokesperson. A former employee called
it “a tragedy,” saying that “Orange County, Southern California, is the car capital of
America. This is where hot-rodding started and sports cars became a big influence.” R&T
is the oldest car magazine in America, founded in 1947 in New York. It moved to Los
Angeles in the early 1950s and to Newport Beach in 1959.1279 It isn’t known how many
employees will lost job or how many jobs will move. Road & Track has 29 editorial staff
members listed on its masthead and there are more than 40 contributing editors, artists
and photographers.1280 [Along with efficiencies resulting from the acquisition, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Michigan leading to a reduction in expenses.]
Covenant Health, a member of St. Joseph Health System, is moving the California
Patient Financial Services Operations Unit to Lubbock. “We are going to be moving our
revenue cycle, part of the function, from California to here,” said Rodney Cates, VP-HR.
“Revenue cycle will be made up of admitting, registration and financial services. Keep in
mind, a lot of people might think, ‘These are entry-level jobs.’ That’s far from the truth.
These are going to be manager jobs, from leadership, from directorships, all the way down
to the front-line staff.” Also, Rory McCrady, VP of Revenue Cycle, said, “Our labor is about
40 % cheaper here than it is in a comparable area in southern California.”1281
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Extreme Engineering, equipment supplier to Cirque du Soleil, Six Flags, Disney and the
U.S. Army, is moving manufacturing to Athens, Texas, southeast of Dallas. Jeff Wilson,
founder and owner, said, “It’s been a breath of fresh air getting to work with people in
Texas, especially when you compare it to California’s government.” He added, “We’d like
to eventually make this our central plant where we can ship our products in any direction,
because of Athens’ central location in the U.S.” The company manufactures climbing
walls, zip lines, jumper systems and adventure engineering products for customers
180
Placer ↔
Roseville
Nevada > Sparks
52
N$R
NQF
#MA
}REL
Placer ↔
Roseville
Texas > Austin
30
N$R
NQF
#HQ
#SM
#SO
}REL
Riverside ↔
Cathedral
City
Riverside ↔
Lake Elsinore
Foreign Nation >
Unknown
NJR
N$R
NQF
New Mexico >
Socorro
100
N$R
12
Riverside ↔
Palm Springs
Riverside ↔
Riverside
Nevada > Las
Vegas
Mexico >
Guaymas
3
N$R
NQF
NJR
N$R
NQF
Riverside ↔
Romoland
Riverside ↔
Temecula
Foreign Nation >
Unknown
Costa Rica >
Alajuela
NJR
N$R
NQF
409
N$R
NQF
#MA
#PB
}OSO
}REL
Sacramento
↔ Rancho
Cordova
Costa Rica >
Alajuela
209
N$R
NQF
#PB
#QA
}CLO
}OSO
}REL
#OSO
#GR
#HQ
#MA
}CLO
}REL
}REL
#MA
}OSO
}REL
#OSO
internationally. Their plans are to expand to up to 75 employees in Athens.1282 Extreme
Engineering will take over two buildings totaling 19,000 sq. ft.1283
Lambertson Industries, Inc., which manufactures commercial stainless steel products in
Sparks, near Reno, was acquired by California-based executives, who then moved the HQ
from Roseville to where its plant is in Nevada. New owners Jason Weiss and Joe
McCaslin said the company will continue operating under the Lambertson Industries name
and stay in the existing facility. Also, they plan to begin producing other manufactured
steel products and create 52 jobs in five years of operation.1284
Revionics Inc., a software company, opened an office in Austin in 2012. A year later it
relocated its headquarters to there, where it will quadruple its space. The Roseville office
remains open. Revionics has about 120 employees domestically, and uses contract
programmers and developers in India. CEO Marc Hafner stated, “Relocating to Austin
helps position us for more rapid expansion in the retail technology industry and offers our
employees the benefits of a culturally rich city with a relatively low cost of living.”1285 The
company also has offices in Scottsdale, Arizona and overseas. [Along with the reasons
cited, it’s conceivable that the location decision was influenced by lower business and
employee costs, taxes and fewer regulations in Texas leading to a reduction in expenses.]
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Solaro Energy – The company, which manufactures residential and commercial solar
products, including solar generators and solar fans, lighting and ventilation systems,
relocated to Socorro. The move is into a 12,000–sq. ft. building and is expected to
eventually create 100 jobs in Socorro, which also will be the new headquarters.1286
Pacific Monarch Resorts – For details, see the Laguna Beach entry for this event.
Parker Hannifin, Medical Systems Division, furloughed employees and on-site leased
workers producing components for medical and industrial applications; the company stated
the work is being outsourced to Mexico. The Dept. of Labor didn’t provide a figure for the
number of jobs lost, but indicated that furloughs may have begun as early as Aug. 9, 2012.
1287 It’s likely the location is Guaymas, where since 2002 the company has had production
in place.1288
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Abbott Laboratories, Abbott Vascular Division, furloughed employees and on-site leased
workers producing coronary and endovascular catheters, guidewires and stents because
the company shifted the work to Costa Rica. The Dept. of Labor didn’t identify the
community in that country, but indicated that furloughs may have begun as early as Sept.
27, 2012.1289 A WARN Report shows that in 2012 that 409 employees were furloughed
from the facility.1290
Volcano Corp. – This is an example of learning about a relocation through a news report
a full year after it happened. The medical device manufacturer opened a factory in Costa
Rica in 2012, indicating that the Central American nation would gain jobs at Rancho
Cordova’s expense. That happened, with 39 jobs transferred in 2013 and 2014. 1291 A later
181
Sacramento
↔
Sacramento
N$R
North Carolina >
Maxton
NQF
#FP
#MA
253
}REL
}DSP
}REL
Ohio > Napoleon
}REL
Texas > Paris
Sacramento
↔
Sacramento
Foreign Nation >
Unknown
Sacramento
↔
Sacramento
Colorado >
Denver
NJR
N$R
NQF
#FP
#MA
}OSO
}REL
1,000
N$R
NQF
#DO
#SB
}CLO
}REL
announcement about another 170 furloughs indicated production will stop altogether in
Rancho Cordova as of mid-2015, although R&D will remain. CFO John Dahldorf said
manufacturing costs will decline and profits improve: “The real benefit of going to Costa
Rica is the labor rate differential. … We will see the gross margin pick up as we get into
2015 because, quite frankly, Rancho Cordova won’t be there and that’s a significant
amount of expense that we’ll be carrying in 2014.”1292 The move will bring employment in
Rancho Cordova to fewer than 100 employees. At its peak, the company had nearly 700
employees at the plant.1293
Campbell Soup Co. will close its Sacramento plant, in use for more than 60 years making
soups, sauces and beverages, eliminating 700 full-time jobs. A spokesman stated,
“‘Sacramento is one of our oldest plants, one of our least-efficient. It has the highest
product cost per case of any plant in the U.S. So from a business decision, the case [to
close] is clear and compelling’.... economist Jeff Michael of the University of the Pacific
said the ripple effects on suppliers and others could cost the region a total of 2,000 jobs.
For instance, the cans are made right in the factory by a vendor, Silgan Containers.”1294
While Campbell didn’t mention California’s Global Warming Solutions Act in closing its
Sacramento plant, it’s fair to point out that Campbell would endure much higher costs if it
had kept the plant open. Cap-and-trade carbon auctions will be an increasingly expensive
factor to cover emissions related to the heating, cooling, packaging and storage of foods
and transporting raw materials in and finished products out. Campbell’s shutdown was
nearly complete by mid-2013.1295 The 700 jobs number appears to have been an
understatement. The actual number appears to be higher because the company
furloughed a total of 760 employees in three stages – 290, 320 and 150 – through 2013
the following year.1296 No information could be found online about how the 760 jobs were
distributed to other locations. Since other plants are more efficient, it’s possible that jobs
will be created in Maxton, NC, Napoleon, Ohio and Paris, Texas. [Since a transfer of some
of the work to any of those locations is possible, it’s conceivable that location decisions will
be influenced by lower business and employee costs, taxes and fewer regulations in other
states leading to a reduction in expenses.]
Campbell Soup Supply Company, L.L.C., a subsidiary of Campbell Soup Company,
furloughed employees involved in activities related to the production of packaged food
products because the company shifted the work to a foreign country. The Dept. of Labor
didn’t identify the country, nor did it provide a figure for the number of jobs lost, but
indicated that furloughs may have begun as early as May 9, 2012.1297 That date is four
months before the company reported closing the Sacramento plant and shifting jobs to
other domestic locations. It’s unclear what the job loss total is for the offshoring event.
Comcast is closing three California call centers – one each in Sacramento, Livermore and
Morgan Hill – and moving the jobs to Oregon, Washington and Colorado. About 1,000 jobs
will be eliminated. The company is moving the jobs from California because of the high
cost of doing business, said Regional VP Andrew Johnson.1298 Note: It appears that
California politicians bullied Comcast into issuing a new statement that ignored the “high
cost” comment, with the company later saying, “the reports carried in the media attributing
Comcast’s decision are incorrect” and call centers “focused on particular customer needs
rather than on geography” was a factor.1299 Also, Mike Rossi, Gov. Brown’s Senior Advisor
182
for Jobs and Business Development, said, “It is unfortunate that Comcast’s announcement
to eliminate jobs in California inaccurately placed blame on the state but I am pleased to
see the executives at Comcast taking responsibility and correcting the statement.”
Comcast’s new statement avoided mentioning anything about California’s business
climate.1300 See the Chapter in this report entitled, “Why Did a Company Retract a
Departure Announcement?”
RagingWire Enterprise Solutions, Inc. (f/k/a StrataScale) acquired 75 acres for $20
million to develop a 750,000-sq. ft. data center.1301 The land is sizable enough to
eventually accommodate a 1.5 million sq. ft. data center campus. Jim Leach, VPMarketing, said why the company came to Virginia: “...the power is reliable, available and
cost-competitive [and] Virginia is one of the most pro-business states in the U.S.”1302 [Note
that data centers use significant amounts of electricity and such costs are lower in Virginia
than in California.]
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Sacramento
↔
Sacramento
Virginia >
Ashburn
NJR
$20
750
}CDO
San
Bernardino ↔
Fontana
San
Bernardino ↔
Hesperia
San
Bernardino ↔
Ontario
Foreign Nation >
Unknown
NJR
N$R
NQF
#OSO
Foreign Nation >
Unknown
NJR
N$R
NQF
#OSO
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Mexico >
Unknown
NJR
N$R
NQF
}OSO
San
Bernardino ↔
Ontario
San
Bernardino ↔
Ontario
San
Bernardino ↔
Rancho
Cucamonga
San
Bernardino ↔
Rialto
San
Bernardino ↔
Victorville
Nevada > Las
Vegas
4
N$R
NQF
}REL
IndusPac California Inc., IndusPac Pacific Foam, formerly known as McFarlane DBA
IndusPac Pacific Foam, IndusPac Pacific Foam Division, a subsidiary of Specialized
Packaging Group LP, furloughed employees and on-site leased workers producing,
assembling and packaging products because the company acquired from a foreign country
the production of articles like or directly competitive with the articles produced by the
workers. California EDD stated that the country was Mexico. The Dept. of Labor didn’t
identify the community in that country, nor did it provide a figure for the number of jobs
lost, but indicated that furloughs may have begun as early as Dec. 19, 2012.1303
Pacific Monarch Resorts – For details, see the Laguna Beach entry for this event.
Foreign Nation >
Unknown
NJR
N$R
NQF
#OSO
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Foreign Nation >
Unknown
NJR
N$R
NQF
#OSO
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Foreign Nation >
Unknown
NJR
N$R
NQF
#OSO
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Foreign Nation >
Unknown
NJR
N$R
NQF
#OSO
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
#MA
183
San Diego ↔
Escondido
San Diego ↔
San Diego
Foreign Nation >
Unknown
Iowa > Keokuk
NJR
N$R
NQF
50
N$R
NQF
#FP
#MA
}CDO
San Diego ↔
San Diego
Texas > Dallas
200
N$R
50
#EN
#PF
#SB
}CDO
San Diego ↔
San Diego
Mexico > Tijuana
NJR
N$R
NQF
#EC
#MA
}OSO
San Diego ↔
San Diego
Texas > Cedar
Park
25
N$R
46
#GR
#HQ
}CLO
}REL
San Diego ↔
San Diego
San Diego ↔
San Diego
Foreign Nation >
Unknown
New Jersey >
Jersey City
NJR
N$R
NQF
NJR
N$R
NQF
San Diego ↔
San Diego
San Diego ↔
San Diego
San Diego ↔
San Diego
Florida > Orlando
NJR
N$R
NQF
}REL
Tennessee > Oak
Ridge
Virginia > McLean
NJR
N$R
NQF
}REL
450
N$R
NQF
}OSO
}REL
}OSO
}REL
#PB
#DF
#DN
#EN
#HQ
#IT
#PF
#RD
#SO
}REL
}REL
Imation Corp. – See the 2012 Thousand Oaks entry for this company for more
information about this event.
AccuDx – The unit of IO-Mega Holding Corp. started a demonstration algae processing
facility in Iowa. A small-scale, pilot plant will produce, harvest and dry algae from which
omega-3 fatty acids can be extracted. Once enough material is produced to prove the
method, the process will help sell the concept/design to others. As many as 50 jobs may
be created.1304 Prospective customers of IO Mega will be in the pharmaceutical and food
and fields.
American Specialty Health Inc. (ASH), which administers company health benefits,
opened an office in Dallas. The company leased 50,000 sq. ft. plans to have 200
employees by the end of 2013. Positions range from customer service reps and claims
processors to systems programmers and health coaches. Chairman/CEO George DeVries
said that North Texas was selected because it “will afford us more opportunities to grow,”
because of its central U.S. location and because the Texas business environment is
appealing.1305 The company maintains a San Diego presence.
Autosplice, Inc., furloughed employees producing electrical connectors because the
company acquired from a foreign country the production of articles like or directly
competitive with the articles produced by the workers. The Dept. of Labor didn’t provide a
figure for the number of jobs lost, but indicated that furloughs may have begun as early as
Nov. 5, 2012.1306 The location is likely to be Tijuana, where the company already has a
facility.
Fallbrook Technologies, Inc. – Sometimes, when a company establishes an operation or
“footprint” elsewhere, a headquarters move to that location eventually follows. Such is the
case here where the company will relocate its HQ and “entire operation” to Texas. The
majority of the positions will be engineers, but technicians and administrative staff will also
be required. As a result, it appears that 25 new jobs will be created.1307 The company has
500 patents or pending applications worldwide and seems destined for more growth.
Mitchell International, Inc. – See the 2012 entry for Los Angeles for this company for
more information about this event.
Optimer Pharmaceuticals – A media account stated, “Founded in 1998 in San Diego,
Optimer moved its headquarters to Jersey City, N.J., late last year [2012].” It retained its
San Diego office and still conducts research there.1308
Science Applications International Corp., SAIC – See the McLean 2012 SAIC event for
more information.
Science Applications International Corp., SAIC – See the McLean 2012 SAIC event for
more information.
Science Applications International Corp., SAIC – will spend about $15 million this year
to bring roughly 450 corporate employees who have remained in San Diego to McLean
and offices in Orlando and Oak Ridge. John P. Jumper, after his selection as CEO, said
one of his priorities would be cutting overhead costs to help SAIC win work. In particular,
he promised to reexamine operations remaining in California. SAIC relocated its
headquarters to the D.C. area in 2009. Jumper said, “If there’s anything that has to be left
out [in California], I’m going to have to be convinced that it needs to be there.” SAIC would
not clarify how many will move to McLean, Orlando and Oak Ridge.1309 [Clearly, cost
184
San Diego ↔
San Diego
Unknown >
Dispersed
San Diego ↔
San Diego
Arizona > Peoria
San Diego ↔
San Marcos
Great Britain >
Wigan
San
Francisco ↔
San
Francisco
18
N$R
NQF
#AE
}CLO
}DSP
NJR
N$R
NQF
#PB
}CDO
54
N$R
NQF
#MA
}CLO
}OSO}
REL
Indiana >
Indianapolis
300
N$R
12.5
#DO
#SO
}CDO
San
Francisco ↔
San
Francisco
India > Gurgoan
NJR
N$R
NQF
#BF
}OSO
}REL
San
Francisco ↔
San
Francisco
San
Francisco ↔
Arizona >
Phoenix
NJR
N$R
NQF
Texas > Dallas
NJR
N$R
NQF
reductions are in play regarding this event. It’s likely that location decisions will be
influenced by lower business and employee costs, taxes and fewer regulations in Virginia
leading to a reduction in expenses.]
United Launch Alliance, a joint venture by Lockheed Martin and Boeing, listed its facility
as a “closure” in three notices filed with the state.1310 Little additional information can be
found, except for one item that says the company “has eliminated its presence in San
Diego.”1311
Yolia Health is developing a combination of contact lenses and eye drops that modifies
the shape of corneas to produce clearer vision. But the 5-year-old company was struggling
to get seed funding, network with researchers and obtain FDA approval – problems that
can put a bioscience startup out of business. Those challenges led CEO Alberto Osio to a
bioscience incubator in Arizona that offers initial funding, mentoring, free office space and
access to laboratories, helping turn bioscience technologies into businesses. Arizona’s
Bioscience Roadmap, supported by the Flinn Foundation, reported that the number of
bioscience firms in Arizona increased from 637 in 2002 to 867 in 2010, while jobs
increased from 68,924 to 96,223 during that period.1312
NAPP Systems, Inc., d/b/a MacDermid Printing Solutions LLC, furloughed employees and
on-site leased workers involved in activities related to the production of printing plates
because the company shifted the work to England.1313 The Dept. of Labor didn’t provide a
figure for the number of jobs lost, but indicated that furloughs may have begun as early as
Feb. 11, 2012.
Appirio, a cloud-computing service provider, will spend $2 million to open in Indianapolis
and employ 300 people by 2015. The company will initially occupy 12,500 sq. ft. with
options to lease additional floors as it expands. Appirio CEO Chris Barbin said, “Opening
an office and cloud development center in Indianapolis gives Appirio access to a large,
highly educated talent base with close proximity to customers and partners.” Founded in
2006, Appirio has moved more than 2 million users from 350 companies to cloud platforms
such as Google Apps and Amazon Web Services.1314 Nick Marson, Manager, Consulting
Services at Appirio, wrote the “Top Ten Reasons to Land Your Tech Biz in
Indianapolis.”1315 [Along with the reasons cited, it’s conceivable that the location decision
was influenced by lower business and employee costs, taxes and fewer regulations in
Indiana leading to a reduction in expenses.]
Bank of America, Deposit Product Operations and Monitoring division, furloughed
employees involved in clerical support services for Certificate of Deposit and Individual
Retirement Accounts for Consumer Channel for California because it shifted the work to
India. Apparently concurrently, jobs were shifted to Phoenix and Dallas. The Dept. of
Labor didn’t provide a figure for the number of jobs lost, but indicated that furloughs may
have begun as early as Jan. 4, 2012.1316
Bank of America, Deposit Product Operations and Monitoring division – See the
Gurgoan, India entry for this company for more information about this event.
Bank of America, Deposit Product Operations and Monitoring division – See the
Gurgoan, India entry for this company for more information about this event.
185
San
Francisco
San
Francisco ↔
San
Francisco
San
Francisco ↔
San
Francisco
Japan > Tokyo
25
N$R
NQF
#GA
}CLO
}OSO
}REL
Texas > Austin
NJR
N$R
NQF
#SB
}CDO
San
Francisco ↔
San
Francisco
India > Unknown
NJR
N$R
NQF
#DO
#PF
#SO
}OSO
San
Francisco ↔
San
Francisco
Illinois > Chicago
200
N$R
116.8
#DO
#EN
#IT
#SO
}CDO
San
Francisco ↔
San
Francisco
Tennessee >
Nashville
375
N$R
NQF
#IT
#SO
}CDO
San
Francisco ↔
San
Francisco
Utah > Park City
50
N$R
NQF
#DO
#EN
#IT
#SB
}CDO
GREE / OpenFeint – The company purchased OpenFeint, a games platform, in 2011 for
$104 million, and a year later closed it and furloughed 25 staff. GREE says the platform
business will be transitioned to Tokyo while the company re-focuses its U.S. business.1317
The closure date was Dec. 14, 2012.1318
Marin Software, Inc., an online advertising management company, opened a customer
support office in Austin, stating, “Joining tech giants IBM, Apple and Google, who already
call Austin home, Marin looks to stay focused, deliver a great product and delight our
customers from the Silicon Hills. The new Austin offices are yet another sign of Marin’s
growth and ongoing success.”1319 [Along with the reasons cited, it’s conceivable that the
location decision was influenced by lower business and employee costs, taxes and fewer
regulations in Texas leading to a reduction in expenses.]
Navex Global, Inc., formerly ELT, Inc., which offers policy and case management
software and compliance solutions, furloughed employees providing online training
services because the company acquired from a foreign country the production of articles
like or directly competitive with the articles produced by the workers. The Dept. of Labor
didn’t identify the community in that country, nor did it provide a figure for the number of
jobs lost, but indicated that furloughs may have begun as early as Dec. 4, 2012.1320
Salesforce.com Inc. started expanding in Chicago when it earlier acquired local software
firm Model Metrics, which employed about 150 people. However, by 2012 it became clear
that Salesforce.com is more than doubling the size of its Chicago workforce by creating
200 jobs and moving to new quarters.1321 The company leases 116,819 sq. ft. in Chicago,
and its job board shows engineering positions available in the city. [Along with efficiencies
resulting from the acquisition, it’s conceivable that the location decision was influenced by
lower business and employee costs and fewer regulations leading to a possible reduction
in expenses.]
ServiceSource, whose services include software offerings, will expand in a big way,
creating “hundreds” of additional jobs in Nashville, where it currently employs 500 people.
Jobs will be in accounting, finance, IT and sales. It will lease more space as part of its
“multi-million dollar investment” in Nashville. Note: To avoid double-counting the number of
jobs with later events, the jobs number for 2012 does not include the number already
noted in the 2008 expansion entry for this company.1322
Taulia, which provides cloud-based invoice, payment and other services for large buying
organizations, expanded into a new office in Park City. The company said: “Located in the
prospector business center of Park City, this new Taulia office is a 20 minute commute
from the Salt Lake valley, and offers the lifestyle benefits of a Rocky Mountain resort town.
The office is adjacent to Park City’s massive biking/hiking trail network that boasts over
300 miles of marked and mapped trails. The office is a short, free bus ride from either of
the three world class ski resorts located in Park City: Deer Valley, Park City Mountain
Resort and The Canyons. Currently the Taulia office in Park City is hosting Professional
Services and Support staff, and we’re looking forward to expanding the team to include
engineering .... and product management. Taulia chose to expand to Park City to take
advantage of a young, educated, and motivated talent pool that is being fueled by the four
186
San
Francisco ↔
San
Francisco
Washington >
Seattle
20
N$R
NQF
#BF
#EN
#IT
}CDO
San
Francisco ↔
San
Francisco
Washington >
Seattle
100
N$R
16
#DO
#EN
#IT
#SM
}CDO
San
Francisco ↔
San
Francisco
San
Francisco ↔
San
Francisco
Georgia > Atlanta
NJR
$300
100
#DC
#DO
#IT
#SM
}CDO
Colorado >
Highlands Ranch
406
$9
NQF
#BF
#EN
#IT
}CDO
San
Francisco ↔
San
Francisco
San
Francisco ↔
San
Francisco
Arizona >
Scottsdale
NJR
N$R
NQF
#HQ
}REL
47
N$R
NQF
#PA
#SB
}OSO
Foreign Nation >
Unknown
colleges and universities that see an influx of out-of-state students each year who fall in
love with UT, and are looking for professional opportunities that will allow them to develop
their careers there.”1323 [Along with the reasons cited, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Utah leading to a reduction in expenses.]
The Climate Corp., which examines weather data to provide insurance to U.S. farmers.
will place a new engineering center in Seattle. The company crunches huge amounts of
weather data and offers multi-peril insurance to farmers who can lock in profits even in the
case of drought, excessive rains or other adverse weather conditions. CEO David
Friedberg said, “The Climate Corporation thrives on the talent of our people, and being in
Seattle connects us to passionate engineering talent that is excited about taking on big
challenges.” The company plans to grow to about 20 workers in Seattle in a few years,
hiring software engineers who specialize in “big data.” The Climate Corp. raised $42
million last year.1324 [Along with the reasons cited, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Washington leading to a reduction in expenses.]
Twitter will open an engineering office and start with five employees, with plans to hire
more in a few months.1325 Within a year, Twitter expanded in Seattle by signing a lease for
about 16,000 sq. ft. Twitter confirmed the lease but declined to discuss how many people it
expects to employ there. If Twitter uses its space in ways similar to other tech firms, it
could accommodate roughly 100 employees.1326 The team is engineering-focused and
works on managing Twitter’s databases and data centers. Twitter sees its presence in
Seattle as an opportunity to hire more University of Washington graduates as opposed to
getting them to move to the San Francisco area.1327 [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Washington leading to a reduction in expenses.]
Twitter, the social networking site, will take 100,000 sq. ft. in an Atlanta data center, an
expansion that will cost up to $300 million in facility buildout and servers, computers and
other electronic equipment.1328 [Note that data centers use significant amounts of
electricity and such costs are lower in Georgia than in California.]
Visa Inc. will add more than 400 new jobs in the next five years at its existing global
technology center in Highlands Ranch, a section of Douglas County south of Denver. The
credit card company plans to lease 66,000 sq. ft. of new space and make about $9 million
in capital investment. Created will be 406 jobs in information technology, financial services
and client support paying an average of $106,000 a year. The majority of jobs are
technical in nature.1329
Wholesalefund.com (now Shelvspace) – Dave Albertson, founder, moved the
headquarters of the marketing and technology company to Scottsdale. Albertson said,
“Certainly when we were weighing the pros and cons, the operating costs and certainly
some of the benefits of Arizona, (it) looked favorable.”1330
YP Western Directory LLC furloughed employees and on-site leased workers involved in
supporting publishing operations because the company “has acquired from a foreign
country the supply of services like or directly competitive with those supplied by the subject
workers, which contributed importantly to worker group separations at YP-Publishing
187
San Joaquin
↔ Lathrop
Foreign Nation >
Unknown
108
N$R
NQF
#MA
}OSO
San Mateo ↔
Brisbane
New Jersey >
Bridgewater
100
N$R
NQF
#HQ
#PB
}CLO
}REL
San Mateo ↔
Foster City
Texas > Austin
794
$27.2
175
#BF
#SO
}CDO
San Mateo ↔
Menlo Park
Washington >
Seattle
75
N$R
27
#EN
#IT
#SO
}CDO
San Mateo ↔
Redwood City
Texas > Austin
NJR
N$R
36
#EN
#IT
#SO
}CDO
Operations Group.” The Dept. of Labor didn’t identify the community in that country; it
indicated that furloughs may have begun as early as Jan. 8, 2012. 1331
Pilkington North America, Inc., furloughed employees and on-site leased workers
producing flat glass because the company acquired from a foreign country the production
of articles like or directly competitive with the articles produced by the workers. A
statement from a labor union was unclear as to whether the glass will now be coming from
Mexico or China. The Dept. of Labor didn’t identify the any country, nor did it provide a
figure for the number of jobs lost, but indicated that furloughs may have begun as early as
Nov. 18, 2012.1332
Tercica, Inc. – The California headquarters of the biopharmaceutical company is closing.
The company was purchased by Ipsen and as part of its reorganization is moving Tercica
HQ jobs to New Jersey.1333 [Along with efficiencies resulting from the acquisition and
reorganization, it’s conceivable that the location decision was influenced by lower business
and employee costs and fewer regulations leading to a reduction in expenses compared
with the Brisbane facility if it had stayed open – Brisbane is located close to high-cost San
Francisco.]
Visa U.S.A. Inc., a subsidiary of Visa Inc., the world’s largest consumer payments
company, will build a new global IT center in a 175,000 sq. ft. Austin facility.1334 Average
annual wage of the jobs: $113,351.1335 This is part of the company’s push to develop a
mobile payment system and rebrand itself as a destination for talented tech workers. The
company’s new Checkout digital payment service is one reason the company needs
engineering talent.1336 “Most people don’t see Visa as a technology company,” Antonio
Lucio, global CMO of Visa, told Advertising Age. “Our vision is to open the fences of our
system to make sure more developers can use Visa to generate the next generation of
mobile payments.”1337 [In addition to searching for engineering talent, it’s conceivable that
the location decision was influenced by lower business and employee costs, taxes and
fewer regulations in Texas leading to a reduction in expenses.]
Facebook will expand it’s engineering center in Seattle. It will move to a new location,
twice the size of its existing space, to create room for additional growth beyond the 60
engineers it already has working here. Ari Steinberg, who heads the Facebook Seattle
engineering office, said, “This move will give us room to keep growing as we continue
hiring the best engineers we can find.” GeekWire previously reported that Facebook was
on the prowl for bigger offices in Seattle, a tech community that Mark Zuckerberg touted
for its strong engineering pool in a recent visit. The expansion comes after Zuckerberg
remarked that Silicon Valley isn’t “the only place to be” and said that if he were starting
Facebook again he would have stayed in Boston. Seattle has become the largest
Facebook engineering center outside of Palo Alto. The company will take 27,000 sq. ft.
and have room for about 135 workers, or 75 more than the 60 employees it already has in
Seattle.1338 [In addition to searching for engineering talent, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Washington leading to a reduction in expenses.]
Informatica Corp. As the Austin Business Journal viewed it: “Put another California
software company on the growing list of out-of-state technology firms with expansion plans
in Austin.” Informatica consolidated four smaller offices to create what it calls a “Center of
188
San Mateo ↔
Redwood City
Virginia > Danville
San Mateo ↔
San Carlos
34
$10
25
#GR
#RD
}CDO
Texas > Austin
130
N$R
125
#GA
}CDO
San Mateo ↔
San Mateo
Kentucky >
Louisville
592
$16.5
325
#DO
#HQ
#MA
#RW
}REL
San Mateo ↔
San Mateo
Nevada > Reno
NJR
N$R
NQF
#SB
#SO
}CDO
San Mateo ↔
San Mateo
Wisconsin >
Milwaukee
20
N$R
NQF
#HQ
}CLO
}REL
San Mateo ↔
South San
Francisco
Unknown >
Dispersed
202
N$R
NQF
#PB
}CLO
}DSP
Excellence” in Austin. The special designation indicates that the company is committed to
growth at the location; it employs 75 workers in Austin now and won’t disclose how many it
plans to hire in the future. The office measures 36,000 sq. ft. – enough to double the
headcount. Employees work in many areas – e.g., marketing, research and development,
customer support and business development. Other company departments are reviewing
their growth plans and may also grow their teams in Austin.1339
Virdia Inc. (formerly HCL CleanTech Inc.) – In pursuit of its mission to create
sustainable, clean energy sources, created its new technology center on the campus for
the Institute for Advanced Learning and Research (IALR). Virdia now employs 34 research
chemists, engineers and other staff occupying a 25,000-sq. ft. space. The facility will
demonstrate Virdia’s process in pilot scale, as well as produce commercially
representative samples of cellulosic sugars and lignin.1340 A process extracts “plant sugars
from trees so they can be used in renewable chemicals or plastics, biofuels and nutritional
products. The lignin, or carbon framework of the wood, can be burned for energy or heat
or used as carbon fiber to make lightweight materials.”1341
Kabam – The high-growth social game developer / software company opened a 12,500
sq. ft. studio, employing developers and designers. At the time, Kabam was HQ’d in San
Carlos; it’s since moved to San Francisco.1342
Cafe Press Inc. moved its global headquarters to Louisville, where will invest $16.5 million
to expand an existing manufacturing facility to 325,000 sq. ft. Its portfolio of e-commerce
sites includes CafePress.com, Imagekind.com, InvitationBox.com, Logosportswear.com
and others.1343
Coupa Software – The provider of “cloud-based spend optimization solutions” will
relocate accounting and financial operations, and will hire accounts payable and
receivable positions initially, to be followed by customer support and sales positions.
“Reno was attractive to us because there is a very strong business program at the
University of Nevada, Reno with many qualified candidates,” said CFO Mark Verbeck.
Named by Deloitte as a “Technology Fast 500” company and honored by The Wall Street
Journal as “The Next Big Thing,” Coupa Software achieved over 100% revenue growth in
2012 for the fourth consecutive year. More than 300 customers in 40 countries use the
Coupa purchasing and procurement software.1344 [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Nevada leading to a reduction in expenses.]
Provade, a Silicon Valley software provider that has been expanding gradually in
Milwaukee, will move its headquarters there. In Milwaukee, space is less expensive and it
takes less time to find qualified employees, and they stay with the company for longer than
they would in California, said Edward Jackson, the firm’s president. It’s closing its San
Mateo office, but another will remain in California.1345
Elan Corp. will close its South San Francisco drug discovery operations as it shifts the
work into a new publicly held company. The Irish biotech company will have no drug
discovery or preclinical drug development programs by the end of the year. Closing the
facilities, where most of Elan’s roughly 400 employees are housed, will translate into $160
million to $180 million in employee severance costs, facilities costs and other restructuring
charges. It is unclear, however, how many Elan employees will shift to the new company,
189
}OSO
}REL
called Neotope, which will provide research and development services to Elan, and how
much of Elan’s space will be occupied by Neotope. Neotope will be a publicly traded
company set up in Ireland.1346 While some of the work will remain in California – which is
why this isn’t being categorized as an R&D loss, the event nonetheless deserves to be
listed because a WARN Notice indicated that Elan furloughed 202 employees in
November 2012.1347 (Also, Elan eliminated 130 jobs in January 2011, mainly in South San
Francisco; since the reason is unclear that event isn’t listed elsewhere.)
Materion Corp. – See more details in the “Massachusetts / Westford “ entry for this event.
Santa
Barbara ↔
Buellton
Santa
Barbara ↔
Buellton
China > Shanghai
NJR
N$R
NQF
Massachusetts >
Westford
NJR
N$R
NQF
#MA
}CLO
}REL
Santa
Barbara ↔
Carpentaria
Iowa > Cedar
Rapids
85
N$R
NQF
#GR
#HQ
}CLO
}REL
Santa
Barbara ↔
Carpentaria
North Carolina >
Unknown
100
N$R
NQF
#EC
#MA
}CLO
}OSO
}REL
Santa
Barbara ↔
Carpentaria
Santa
Barbara ↔
Carpentaria
Santa
Barbara ↔
Carpentaria
China > Unknown
NJR
N$R
NQF
India > Unknown
NJR
N$R
NQF
TE Connectivity – See the 2012 North Carolina entry for this company for more
information about this event.
Mexico >
Unknown
NJR
N$R
NQF
TE Connectivity – See the 2012 North Carolina entry for this company for more
information about this event.
Materion Corp. – The Mayfield Heights, Ohio-based company will consolidate
manufacturing for cost and income benefits. The Buellton optical coatings facility will close
with production consolidated in facilities in Westford, Massachusetts and Shanghai, China.
The company stated, “Manufacturing improvements, coupled with our more recent
acquisitions, have given us the opportunity to consolidate operations, and therefore reduce
costs and service our global customer base more effectively.”1348 [Along with efficiencies
resulting from the acquisition, it’s conceivable that the location decision was influenced by
lower business and employee costs and fewer regulations leading to a reduction in
expenses.]
Clipper Windpower, a company that designed and manufactured the biggest wind
turbines in the United States, will close its headquarters and move the jobs to its
production facilities in Cedar Rapids. Most of the staff in Carpentaria are engineers,
executives and other high-level personnel. Many of Clipper’s employees have been forced
to pursue new jobs out of the area or out of the state.1349 A WARN notice indicates 85
employees will lose their jobs.1350
TE Connectivity, AD&M Division, f/k/a Tyco Electronics, furloughed employees and onsite leased workers involved in activities related to production of high-voltage relays and
power switching devices because the company shifted the work to foreign countries. A
company HR manager indicated that some functions were being sent to North Carolina,
China, India and Mexico. The Dept. of Labor didn’t identify the communities in those
countries, but indicated that furloughs may have begun as early as May 14, 2012.1351
Another report said the company will close its Carpentaria facility and 100 jobs will be lost
over the upcoming 16 months.1352 (Note: The company has facilities in Greensboro,
Winston Salem and High Point; it isn’t known which facility gained the work that moved
from California to North Carolina.)
TE Connectivity – See the 2012 North Carolina entry for this company for more
information about this event.
190
Santa
Barbara ↔
Goleta
Mexico >
Chihuahua
53
N$R
NQF
#MA
#PB
}OSO
}REL
Santa
Barbara ↔
Goleta
Texas >
Richardson
200
N$R
31.2
#DN
#MA
#PB
#SB
}CDO
Santa
Barbara ↔
Santa
Barbara
Santa
Barbara ↔
Santa
Barbara
Florida > Largo
NJR
N$R
NQF
#MA
}REL
Massachusetts >
Westborough
NJR
N$R
NQF
#PB
#RD
}CLO
}REL
Santa
Barbara ↔
Santa
Barbara
Colorado >
Denver
80
N$R
50
#DN
#DO
#HQ
#SB
}CLO
}REL
Santa Clara
↔ Campbell
Foreign Nation >
Unknown
NJR
N$R
NQF
Santa Clara
↔ Cupertino
Oregon >
Prineville
NJR
$500
348
#DC
#DO
#EN
#IT
#RW
}CDO
Santa Clara
↔ Cupertino
Nevada > Reno &
Sparks
61
$1,000
88.6
#DC
#DO
#EN
#IT
#RW
}CDO
}OSO
}REL
ConMed Corp., Linvatec Endoscopy Division, subsidiary Linvatec Corp., furloughed
employees and on-site leased workers involved in production of camera systems, scopes
& LCD, peripherals and insufflation equipment because the company shifted the work to
Mexico.1353 A WARN Notice indicates the 53 employees were furloughed.1354 A 2012
financial report indicated restructuring costs “due to the relocation of manufacturing
activities” to the Company’s facilities in Chihuahua, Mexico.1355
Inogen, Inc., a health equipment provider (home oxygen therapy equipment), has leased
31,204 sq. ft. in Richardson. The company plans to hire about 200 workers there to handle
medical billing, sales, customer support and clinical services.1356 The facility will also
house part of Inogen’s growing manufacturing and distribution operations1357 and will
facilitate the company’s national growth plans.1358
ConMed Corp. – A company report indicated a “relocation of manufacturing activities from
the Santa Barbara, California site to the Company’s facilities in ... Largo, Florida.”1359
ConMed Corp. acquired Viking Systems, Inc. which will become a wholly owned
subsidiary of ConMed. Viking’s key product is its 3D-HD Vision System used by
surgeons.1360 ConMed said it expects to transfer the 2-D surgical video research and
marketing team from Santa Barbara to Viking’s Westborough, Mass. operation.1361 The
reference to Santa Barbara probably refers to nearby Goleta.
Magellan’s Travel Supplies merged with Gart Capital Partners, and after that Gart
Capital moved it to Denver. Magellan’s is a retailer of travel items including clothing,
wallets, purses, blankets and pillows. Denver will serve as the base of the company’s
corporate operations, catalog call center and distribution facility. Most of Magellan’s
business is done with 1.8 million catalog and e-commerce customers. Tom Nelson,
president of CBNB/Magellans LLC, said, “You look at the cost of real estate in Santa
Barbara, and as you can imagine, it’s not the cheapest market to operate in. To not have
all the corporate functions rolled into one location, you lose a lot of synergies.”1362
Imation Corp. – See the 2012 Thousand Oaks entry for this company for more
information about this event.
Apple bought 160 acres of land on which it will build a major data center in a rural town
that is already home to a huge Facebook data center campus. Apple purchased the land
for $5.6 million.1363 The $1 billion facility is expected to support the company’s iCloud
service. [Only $500 million is attributed to 2012 because the other $500 million applies to
work beginning in 2015.] The Prineville campus is part of a major expansion of Apple’s
data center capacity.1364 A later report indicated that it is a the structure will be the first of
two 338,000 sq. ft. buildings behind a 10,000 sq. ft. modular data center already built. 1365
Note: See the 2014 event where Apple took over a hydroelectric facility to help power the
data center and a 2015 data center expansion. [Note that data centers use significant
amounts of electricity and such costs are lower in Oregon than in California.]
Apple will open a data center for cloud computing east of Sparks as well as a business
and purchasing center in downtown Reno, part of a $1 billion investment the company
plans to spend in Northern Nevada over the next 10 years. A plus is Reno’s vicinity in
relation to Apple’s HQ in Cupertino.1366 Update: Two data centers were built. The presence
191
#SB
Santa Clara
↔ Cupertino
Texas > Austin
3,600
$304
1,000
#DO
#RW
#SB
}CDO
Santa Clara
↔ Gilroy
Santa Clara
↔ Milpitas
Nevada > Reno
NJR
N$R
NQF
#DN
}CLO
}REL
11
N$R
NQF
#MA
#SB
}OSO
Santa Clara
↔ Morgan
Hill
Santa Clara
↔ Mountain
View
Oregon >
Portland
NJR
N$R
NQF
Iowa > Council
Bluffs
NJR
$1,000
115
#DC
#DO
#EN
#IT
#SO
}CDO
Santa Clara
↔ Mountain
View
Washington >
Kirkland
700
N$R
180
#DO
#EN
#IT
#SO
}CDO
Foreign Nation >
Unknown
}REL
of multiple power plants creating abundant local power, along with redundant data pipes,
dry climate, clean water, low-cost land, lots of sun to power a solar array, and favorable
construction costs contributed to Apple making the site its largest land acquisition. An
administration building was built along with two “data processing cluster buildings” for a
total of 88,570 sq. ft.1367 The data center is expected to create 61 jobs; it isn’t known how
many employees are at other Reno locations. [Note that data centers use significant
amounts of electricity and such costs are lower in Nevada than in California.]
Apple, Inc. – The company will create 3,600 new jobs, more than doubling the size of its
Texas workforce over the next 10 years. Even prior to this event, an Apple spokeswoman
pointed out that “Our operations in Austin have grown dramatically over the past decade,
from less than 1,000 employees in 2004 to more than 3,500 today.” It will be a $304 million
investment.1368 The project will eventually have seven buildings and slightly more than 1
million sq. ft. of space.1369 Updates: By the end of 2013, its North Austin Americas
Operations Center was 67% complete.1370 Also, by June, 2014, the company created 743
of the new jobs and most new-hires thus far have been locals. About 67% of the workers
had Austin addresses even before they were hired.1371 When complete, the center will
oversee many of the company’s marketing, customer support, sales and logistics functions
for the bulk of the Western Hemisphere.1372
Replico, a logistics services company, relocated a distribution center to Reno, into a new
160,000 sq. ft. facility.1373
LTX-Credence Corp., a provider of automatic test equipment, furloughed Support and
Repair Service employees involved in Customer Services because the company acquired
such services from a foreign country (a notation only indicated that it was “Asia.”) The
Dept. of Labor didn’t identify the country, nor did it provide a figure for the number of jobs
lost, but indicated that furloughs may have begun as early as June 11, 2012.1374
Comcast – See description under the 2012 Denver entry for more information about this
event.
Google, Inc. – Area Development Online did an excellent job assembling a
comprehensive picture of Google’s activities in Iowa. “In 2009 Google invested $600
million in a Council Bluffs data center. Earlier [in 2012], it announced plans to invest $300
million in another data center, which will be doubled in capacity size with [another] $200
million investment. With the $900 million worth of existing data center investments in
Council Bluffs, Google’s total investment in Iowa now stands at $1.1 billion.” The firm did
not receive a tax incentive for its latest expansion.1375 The square footage in Council Bluffs
is 115,000.1376 [Note that data centers use significant amounts of electricity and such costs
are lower in Iowa than in California.]
Google, Inc. established an office in Kirkland in a year that pre-dates the scope of this
report (2004). However, in 2012 a major expansion of its Kirkland presence was being
planned.1377 Then, Google occupied a three-building campus at 747, 777, and 787 6th
Street South. Planning started on a new 180,000 sq. ft. office building for Google and
Kirkland’s Public Works Department approved various permits.1378 Kirkland and Seattle
already have Google’s largest engineering offices outside of Mountain View, and with the
new facility the company will double the size of its campus. Google Kirkland already
192
Santa Clara
↔ Mountain
View
Oklahoma >
Pryor
50
$700
130
#DC
#DO
#EN
#IT
#SO
}CDO
Santa Clara
↔ Mountain
View
Unknown >
Dispersed
79
N$R
NQF
#ET
#PA
}CLO
}DSP
Santa Clara
↔ Palo Alto
Texas > El Paso
260
N$R
60
#CH
#SO
#QA
}CDO
Santa Clara
↔ Palo Alto
Colorado > Fort
Collins
NJR
N$R
50
#CH
#EN
#RD
#SO
}CDO
Santa Clara
↔ San Jose
Colorado > Fort
Collins
136
$20
NQF
#CH
#EN
#IT
#MA
#SC
}CDO
Santa Clara
↔ San Jose
Massachusetts >
Waltham
25
N$R
NQF
#BF
#EN
#IT
}REL
boasts more than 600 employees who work on products such as Google+, Maps and the
Chrome Web browser; with the new building Google could add more than 700 workers in
Kirkland (based on a 250-square-foot allocation typically used for tech tenants). Google
indicated that the new facility could house as many as 1,000 workers at maximum
capacity. Chee Chew, the site director of the Kirkland office, said they’ve had a lot of
success attracting top engineers at the site.1379 [In addition to seeking engineering talent,
it’s conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Washington leading to a reduction in expenses.]
Google, Inc. expanded its data center by adding a second building at the campus, a
130,000 sq. ft. expansion doubled its server capacity; 50 jobs were added, primarily for
local residents. The new building boosted Google’s expected investment in Oklahoma to
$700 million. The Mayes County data center is located about 35 miles east of Tulsa and is
powered by electricity from Grand River Dam Authority plus a wind facility.1380 [Note that
data centers use significant amounts of electricity and such costs are lower in Oklahoma
than in California.]
Paragon Studios has announced that a realignment of company focus and publishing
support means that the unit will be closed. All development on “City of Heroes” will cease
immediately and a timeline for the cessation of services will come within weeks.1381 A
WARN notice indicated that 79 employees will be furloughed in October 2012.1382
Hewlett-Packard – Expanded its software applications and development center by
renovating a 60,000 sq. ft. building near its other building on the West Side. The facility is
one of three software application delivery centers HP operates in the United States.
Several hundred technology professionals work at the HP center. Since 2011, HP has
hired more than 260 people for the center at various job fairs, El Paso Times reports show.
It plans to continue “multiple hiring waves” well into next year. Software engineers and
developers, testing specialists and other technology professionals work at the center,
which provides software services for business and government agencies.1383 [In addition to
seeking software talent, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Texas leading to a reduction
in expenses.]
Hewlett-Packard constructed a state-of-the-art research facility to advance sustainable
data center technologies. The 50,000- sq. ft. facility was built in collaboration with HP
Labs. Work there will focus on gaining efficiencies around data center cooling and
capacity.1384
Avago Technologies, a semiconductor company, in 2012 began planning to expand in
Fort Collins by 136 employees, keeping jobs in the U.S. that were being courted by Taiwan
(but apparently not being considered for California). The additional engineers, operators
and technicians will help increase manufacturing for components for cellular phones and
computers.1385 Estimated cost of the expansion: $20 million.1386 [In addition to seeking
technical talent, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Colorado leading to a
reduction in expenses.]
BlueSnap – The online checkout technology firm relocated its headquarters in 2012 and
expanded a year later. It provides services to online merchants selling in 180 countries, 60
193
#HQ
#SO
Santa Clara
↔ San Jose
Costa Rica >
Unknown
17
N$R
NQF
#MA
#PB
}OSO
Santa Clara
↔ San Jose
Santa Clara
↔ San Jose
Ireland >
Unknown
Foreign Nation >
Unknown
16
N$R
NQF
NJR
N$R
NQF
#PF
}OSO
Santa Clara
↔ San Jose
Texas > San
Antonio
NJR
$65
NQF
#CH
#MA
#SC
}CDO
Santa Clara
↔ San Jose
India > Bangalore
24
N$R
NQF
#EN
#SO
}OSO
}REL
Santa Clara
↔ San Jose
India > Unknown
NJR
N$R
NQF
#AU
#EN
}OSO
}REL
Santa Clara
↔ San Jose
Europe >
Unknown
NJR
N$R
NQF
Santa Clara
↔ San Jose
Singapore >
Unknown
NJR
N$R
NQF
}OSO
}OSO
}REL
#EC
#MA
}OSO
currencies and 30 languages. Clients include corporations such as Symantec and
AutoDesk, and smaller firms – 5,000 customers in all.1387
Covidien LP, Vascular Therapies Division, f/k/a/ Tyco Healthcare Group LP, furloughed
employees because the company acquired from a foreign country the production of
articles like or directly competitive with the articles produced by the workers. The Dept. of
Labor indicated that the source of manufacturing for Radio Frequency Stylet (RFS)
Catheters shifted to Costa Rica and the source for manufacturing Maya Generators shifted
to Ireland. The DOL didn’t identify the communities in those countries, but it did indicate
that furloughs may have begun as early as Nov. 8, 2012 .1388 Because it’s unclear how
many of the 35 jobs went to which country, for the purposes of this report they are split
between the countries.
Covidien LP – see the 2012 entry for Costa Rica for this company for more information
about this event.
Harding Marketing Communications, Inc., Web/Interactive Marketing Division,
furloughed employees providing web interactive marketing services because the company
shifted the work to a foreign country. The Dept. of Labor didn’t identify the country, nor did
it provide a figure for the number of jobs lost, but indicated that furloughs may have begun
as early as May 2, 2012.1389
Maxim Integrated Products Inc. will expand and upgrade its semiconductor fabrication
facility. The plant employs 540 people and manufacturers integrated circuits for electronic
devices such as smart phones, tablet computers, automobile entertainment systems and
industrial equipment. Chris Michael, managing director of the facility, says the quality of
the employees and business-friendly environment are the main reasons why Maxim will
grow in San Antonio.1390
Monta Vista Software LLC, subsidiary of Cavium, Inc., furloughed employees and onsite leased workers involved in activities related to production of software and
development tools because the company shifted the work to India. The Dept. of Labor
didn’t provide a figure for the number of jobs lost, but indicated that furloughs may have
begun as early as March 5, 2012.1391
NXP Semiconductors (formerly known as Philips Semiconductors) furloughed employees
and on-site leased workers involved in auto engineering design as their jobs “are being
eliminated in the U.S. and being consolidated in Europe and India where the majority of
design work is done for the Automotive Business Unit.” The Dept. of Labor didn’t identify
the community in India, the country in Europe, or a figure for the number of jobs lost. The
DOL indicated that furloughs may have begun as early as Feb. 11, 2012.1392
NXP Semiconductors – see the 2012 India entry for this company for more information
about this event. The Dept. of Labor did not identify the nation nor the community in
Europe.1393
Philips Lumileds Lighting, a subsidiary of Philips, furloughed employees and on-site
leased workers involved in production of LED lighting because the company acquired from
a foreign country the production of articles like or directly competitive with the articles
produced by the workers. The company specified that the country was Singapore. The
Dept. of Labor didn’t identify the community in that country, nor did it provide a figure for
194
10
N$R
20
#AE
#DF
#DN
#DO
#RD
}REL
Texas > Austin
500
$4,000
NQF
#CH
#MA
#SC
}CDO
Santa Clara
↔ San Jose
Texas > Austin
106
N$R
NQF
#CH
#MA
#SC
}REL
Santa Clara
↔ San Jose
Washington >
Aberdeen
12
N$R
15
#AE
#DF
#DN
#DO
#RW
}REL
Santa Clara
↔ Santa
Clara
Singapore >
Unknown
NJR
N$R
NQF
#MA
#PB
}OSO
}REL
Santa Clara
↔ San Jose
Washington >
Aberdeen
Santa Clara
↔ San Jose
the number of jobs lost, but indicated that furloughs may have begun as early as Oct. 18,
2012.1394
Reed Composite Solutions – Ryan Reed, president of the startup, said, “I’ve lived in
Southern California the last six years and I was looking at doing something like this down
there. But there are competitive advantages to being here in Grays Harbor or in the State
of Washington for that matter.” The company will install lab equipment to design and
manufacture components for the defense, automotive, aerospace and building products
industries; also, it plans to import as much as it exports and may eventually need up to 50
employees. The 20,000-sq. ft. facility has office space, collaboration facilities, laboratory
space, warehouse and production space.1395
Samsung will invest $4 billion in a major expansion of its existing Austin chip factory.
Samsung estimates it has made about $11 billion in plant investments in Austin since
1996, with most of that coming after 2005 when it built a factory here, called the Main Fab.
With the newest project, that investment is expected to climb to $15 billion. The
semiconductor company employs about 2,500 workers in Central Texas, of whom about
2,300 work in the factory complex. The primary purpose of the expansion is to
manufacture advanced low-power processor chips for mobile devices including
smartphones and tablets.1396 “The local talent is a huge reason for the plant being in
Austin,” said Sergis Mushell, head of microprocessor research at the tech analysis firm
Gartner.1397 Note: Silicon Valley used to be the epicenter for companies producing
computer chips in the U.S.
SVTC Technology Corp. – This is a case of a company closing its Silicon Valley
fabrication plant (106 employees furloughed) and also wanting to close its Austin facility.
But the Texas plant remains open under a new owner.1398 Tezzaron Semiconductor Corp.
acquired SVTC’s Austin manufacturing building, is taking on all employees who were to be
furloughed and also transferring some employees from California. CEO J.T. Ayers said:
“This is the only facility of its kind on the continent. It supports product innovations for
semiconductors, life sciences, clean energy, aerospace and defense. When we became
aware it might be shut down, we knew we had to work quickly to retain this highly valuable
group of people and capabilities. Its closure would have forced many customers to seek
off-shore providers.”1399
Victory Tactical Gear opened a 15,000 sq. ft. facility in Aberdeen.1400 A local official said
they are “coming from California” The company was founded in 2010 by active and retired
law enforcement officers. Both VTG and RCS donated 10 sets of their body armor to the
Aberdeen Police Department and their interagency SWAT team in November.1401 There
was some confusion as to where in California the company migrated from, but a search of
the listings at the California Secretary of State’s office showed the registration address to
be in San Jose.1402 The company hired its first 12 employees fairly rapidly. 1403
Abbott Laboratories, Diagnostic - Hematology division, furloughed employees and onsite leased workers involved in activities related to the production of hematology reagents
and instruments (Cell-Dyn hematology analyzers) because the company shifted the work
to Singapore. The Dept. of Labor didn’t identify the community in that country, nor did it
provide a figure for the number of jobs lost, but indicated that furloughs may have begun
as early as Jan. 28, 2012.1404
195
170
$210
500
#DC
#DO
#EN
#IT
}CDO
New York > Malta
3,000
2,000
1.700
#CH
#MA
#SC
}CDO
Santa Clara
↔ Santa
Clara
Texas > Austin
1,100
$38.9
389
#CH
#EN
#IT
#RD
#SO
}CDO
Santa Clara
↔ Santa
Clara
Oregon >
Hillsboro
500
$3,000
2,500
#CH
#MA
#RD
#SC
}CDO
Santa Clara
↔ Santa
Clara
Arizona > Tempe
220
N$R
49.4
#BF
#IT
#SB
}CDO
Santa Clara
↔ Sunnyvale
New Jersey >
Bridgewater
NJR
N$R
7
#EN
#IT
#RD
#QA
}CDO
Santa Clara
↔ Santa
Clara
Texas >
Pflugerville
Santa Clara
↔ Santa
Clara
Arista Data Centers – Plans to build a $210 million, 500,000 sq. ft. data center campus
expected to create at least 170 jobs within 10 years – including 25 jobs within 4 years –
each with at least $67,500 annual salary plus benefits. The deregulated electricity
environment was one of several elements that the company found attractive.1405 [Note that
data centers use significant amounts of electricity and such costs are lower in Texas than
in California.]
GlobalFoundries, a unit of Advanced Micro Devices, Inc. (along with IBM) opened a
silicon chip manufacturing facility with production ramping up in Q2, 2012. Located in the
new “Fab 8 campus,” it will be capable of an output of approximately 60,000 wafers per
month.1406 Update: By 2014 more than 3,000 people work at Fab 8, a 1.7-million sq. ft.
facility.1407 Note: This event is separate from the Advanced Technology Center event in
2013.
Intel Corp. opened a new facility with space for 1,000 workers and 100 University of
Texas engineering students who work at the company in nine-month internships. Intel paid
$39.8 million for the property, which includes nearly 389,000 sq. ft. of space along with
1,492 parking spaces. Austin is the center of development for its Atom family of low-power
processors that go into mobile devices, including smartphones and tablet computers, and
have other uses.1408 Notes: The numerical similarity between the $38.9 million investment
and the 389,000 sq. ft. is no accident; those are correct numbers. Also, Silicon Valley used
to be the epicenter for U.S. companies engineering and manufacturing computer chips.
Intel Corp. plans a big expansion of D1X, the new, $3 billion factory now under
construction at its Ronler Acres campus in Hillsboro. Intel plans 2.5 million sq. ft. of new
buildings altogether, anchored by a 1.1. million-sq. ft. research factory called D1X Mod 2.
Also, Intel will add an office building, a manufacturing support building, and another
parking garage. The Oregonian reported it will be a “mammoth undertaking, and the cost
of the second module will almost surely match or exceed the original, $3 billion project
cost.” Intel also has another factory at Ronler Acres, D1D, which is currently the
company’s most advanced. That’s where it makes the first of each new generation of
chips, then exporting the production process to facilities in Arizona, New Mexico, Israel
and Ireland. Intel overhauls its computer chips architecture every two years, incorporating
smaller, more advanced features in pursuit of Moore’s Law – a maxim coined by company
co-founder Gordon Moore – that suggests the number of transistors on a computer chip
will double every two years, providing rapid increases in computing power. 1409 A minimum
of 500 new Intel jobs will be created.1410
SVB (Silicon Valley Bank) will open an information technology and operations center in
Tempe, adding its name to the growing mix of financial services companies moving data,
trading, training and IT services to the Phoenix area. The bank also wanted to be in an
area that allowed for future growth. SVB provides capital and financing to companies that
range from startups to multibillion-dollar corporations – and also for providing financing to
the premium wine industry.1411 It moved into a 49,374-sq. ft. space, which it uses space for
an IT and operations center.1412
Juniper Networks – Established the OpenLab: The Junos Center for Innovation. The
7,000-sq. ft. facility provides entrepreneurs and academic institutions resources to
develop, test and launch software applications, shortening time to market. For
196
Santa Clara
↔ Sunnyvale
Oregon >
Hillsboro
NJR
$115
55
#DC
#EN
#IT
}CDO
Santa Clara
↔ Sunnyvale
North Carolina >
Cary
460
$75
NQF
#DC
#EN
#IT
#RD
}CDO
Santa Clara
↔ Sunnyvale
Kansas > Wichita
400
$85
180
#EN
#IT
#RD
#SB
}CDO
Santa Cruz
↔ Santa
Cruz
Mexico > Tijuana
41
N$R
NQF
#MA
#SB
}OSO
}REL
entrepreneurs, OpenLab will mean greater access to tools and resources.1413 Central N.J.
was chosen, in part, because “Many talented engineers began their careers at Bell Labs or
were educated at New Jersey Institute of Technology or Rutgers,” Gerri Elliott, Juniper’s
EVP, said. This is the first and only facility of its kind for Juniper, though the company is
not ruling out opening other labs nationally or globally if this one proves successful. 1414
[Along with the availability of engineering talent, it’s conceivable that the location decision
was influenced by lower business and employee costs and fewer regulations leading to a
reduction in expenses.]
NetApp – Opened its new Hillsboro data center, now the company’s centralized location
for IT services and the monitoring point for customer support. It took almost exactly 54
weeks from the announcement that they had signed an agreement with Digital Realty to
design and build the 55,000 sq. ft. state-of-the-art facility.1415 The facility cost $115
million.1416 [Note that data centers use significant amounts of electricity and such costs are
lower in Oregon than in California.]
NetApp – The provider of storage and data management solutions plans to place a new
R&D facility in Research Triangle Park. The new data center will offer a private cloud
environment to provide virtual access for NetApp engineering labs around the world. It will
also serve as a model for customers interested in building energy-efficient data centers
and cloud environments for enterprise users. Compensation will vary, but the average
annual amount for new positions will be approximately $100,000, plus benefits. 1417
NetApp, a high-tech storage company, will place new jobs in Wichita that will focus on
product development and customer support with an average annual wage of $73,000. Joel
Reich, VP and GM of the Wichita site, said one of several factors working in the city’s favor
for the expansion was the “academic community,” including the computer engineering
program at Wichita State University. The company also has successfully recruited from
regional universities, such as Kansas State University, Iowa State University and the
University of Oklahoma.1418 Netapp will be making an $85 million investment on new
machinery, equipment and renovation to accommodate the new staff;1419 it plans to add
400 jobs to its existing Wichita workforce of 450 employees.1420 The 180-sq. ft. is an
estimate is based on potential usage by the increased number of employees in the
400,000-sq. ft. facility the company already owns. [Along with the availability of
engineering talent, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Kansas leading to a
reduction in expenses.]
Plantronics Inc., Finance Department, furloughed employees and on-site leased workers
involved in accounting services because it shifted the work to Mexico. (The Dept. of Labor
Impact Date is Sept. 24, 2012, which means this is different from the Plantronics-Mexico
event with an Impact Date of Jan. 21, 2012 – see separate entry.1421) The jobs are being
moved to Plantronics’ facility in Mexico, which has about 2,000 employees (about 550
people work in the Santa Cruz office).1422 Update: The U.S. State Department presented
the Award for Corporate Excellence to Plantronics for its corporate citizenship in Mexico,
which involves environmental stewardship, innovative corporate culture and achievements
in state-of-the-art manufacturing and product development in its facility known as Plamex.
The company’s employee benefits include preventative health care services, housing
197
Santa Cruz
↔ Santa
Cruz
Mexico > Tijuana
NJR
N$R
NQF
#MA
#SB
}OSO
}REL
Solano ↔
Fairfield
Texas > Dallas
200
N$R
21
#HQ
#TP
}REL
Sonoma ↔
Petaluma
Malaysia >
Unknown
NJR
N$R
NQF
#EC
#MA
#SC
}OSO
Stanislaus ↔
Modesto
Georgia >
Douglasville
265
N$R
NQF
#FP
#MA
}CLO
}REL
Stanislaus ↔
Modesto
Oregon >
Portland
10
N$R
7.3
#DF
#CP
#DF
}REL
Stanislaus ↔
Patterson
Unknown >
Dispersed
350
N$R
NQF
#FP
}CLO
}DSP
Tulare ↔
Tulare
Foreign Nation >
Unknown
NJR
N$R
NQF
#OSO
assistance, subsidized vocational training, career development, traditional educational
pathways and even assistance in getting married.1423
Plantronics, Inc. furloughed employees and on-site leased workers involved in order and
pricing services because the company shifted the work to Mexico. (The Dept. of Labor
Impact Date is Jan. 21, 2012, which means this is different from the Plantronics-Mexico
event with an Impact Date of Sept. 24, 2012 – see separate entry.)1424
MV Transportation, Inc. is the largest private provider of paratransit services and the
largest privately-owned passenger transportation contracting firm based in the United
States. The company will relocate its global headquarters to Dallas into a 21,000-sq. ft.
office. Most departments will be transitioned to the new office creating 200 new jobs in
Dallas. The company, which was founded in the San Francisco Bay Area in 1975 and
HQ’d in Fairfield since 1996, also has a support center in Iowa. 1425 Some positions remain
in California.
Brooks Automation, Inc., Polycold Manufacturing Division, furloughed employees and
on-site leased workers producing cryogenic chillers and accessories because the
company acquired from Malaysia the production of articles like or directly competitive with
the articles produced by the workers. The Dept. of Labor didn’t identify the community in
that country, nor did it provide a figure for the number of jobs lost, but indicated that
furloughs may have begun as early as Nov. 6, 2012.1426 The company provides
automation, vacuum and instrumentation solutions for multiple markets including
semiconductor manufacturing, life sciences, and clean energy.
Dawn Food Products Inc. will close its three Modesto manufacturing plants in March,
costing 265 workers their jobs, as part of a plan to enhance operations and increase
efficiency. The Michigan-based Dawn and its predecessor, Bunge Foods, have been
making frozen cakes, cake mixes and other dry-mix bakery products in Modesto since
1996. Most of Modesto’s production is expected to move to Georgia.1427 Note: Several
years earlier, the company closed a Tustin facility and Modesto was the only in-state site
to which some of the work relocated; see the 2009 listing for more information about that
event.
Magnum USA is a provider of precision tactical footwear and gear for military, law
enforcement, first responders, firefighters; the company also offers lightweight boots for
hiking and outdoor adventure. It’s moving ten full-time sales and marketing jobs to
Portland in Q-4 2012 and anticipates future job growth; the operations division will remain
in California.1428
Patterson Vegetable Co., a frozen food manufacturer, will close, eliminating about 350
jobs. The plant processes vegetables grown by independent farmers, including spinach,
zucchini, cauliflower, tomatoes, Brussels sprouts and mustard greens. Most of the crops
are grown within 30 miles of the plant. The company stated that demand for Californiagrown frozen vegetables is strong, but the company has had to compete with lower-cost
producers in Mexico and China. The company will try to sell the plant, which needs a
major upgrade. The company was founded in 1946 as Patterson Frozen Foods. 1429
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
198
Tulare ↔
Visalia
Texas > Austin
NJR
N$R
NQF
#HQ
#SO
}CLO
}DSP
Ventura ↔
Thousand
Oaks
Foreign Nation >
Unknown
NJR
N$R
NQF
#CP
#MA
}OSO
}REL
Ventura ↔
Thousand
Oaks
Ventura ↔
Ventura
Foreign Nation >
Unknown
NJR
N$R
NQF
Illinois >
Lincolnshire
NJR
N$R
NQF
Ventura ↔
Ventura
Ventura ↔
Ventura
Foreign Nation >
Unknown
Texas > El Paso
NJR
N$R
NQF
NJR
N$R
NQF
#EN
#MA
}REL
Ventura ↔
Westlake
Village
Arizona >
Scottsdale
40
N$R
13
#DO
#HQ
#SO
}REL
#OSO
#CP
#PA
#RW
}REL
#OSO
InteSolv, a software firm, said last year it would keep its headquarters in Visalia as it
opened a regional office in Austin.1430 But in 2012 it did indeed move its headquarters,
stating it’s now in “up-and-coming tech mecca, Austin, Texas.”1431 The dateline on the
company’s news releases changed to Austin in October 2012.1432
Imation Corp. furloughed employees in Thousand Oaks, Escondido and Campbell
involved in production of tiered storage, data security solutions, consumer storage, and
accessories because the company shifted to a foreign country the production of articles
like or directly competitive with those produced by the workers, which contributed
importantly to worker separations. Specifically, the workers developed items under the
Imation, IronKey and Nexsan brands and consumer storage and accessories under the
Memorex, TDK and XtremeMac brands. The Dept. of Labor didn’t identify the country, nor
did it provide a figure for the number of jobs lost, but indicated that furloughs may have
begun as early as Sept. 6, 2012.1433
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
Good Sam Enterprises, LLC (GSE) is relocating its headquarters from Ventura to
Lincolnshire, Ill. The company and its subsidiaries, which include the Good Sam Club and
Camping World, serve the North American outdoor and recreational vehicle market via
various companies, brands, products and services. “Our Chicago facility provides a
centralized location for all our vendors, lenders and our nationwide Camping World
SuperCenter network,” said Chairman & CEO Marcus Lemonis. “Plus, it is closer to the
heart of the RV industry in Elkhart, Indiana.” The company will maintain offices in Denver,
Ventura, Minneapolis, and Bowling Green, Ky. Founded in 1966, Camping World is the
world’s largest retailer of recreational vehicles and provides more than 10,000 RV parts
and accessories, maintenance, professional installation and collision repair. The company
engages in the retail sale, finance, service and rental of RVs, with more than $300 million
of new and used recreational vehicle inventory representing more than 13 RV
manufacturers and 150 brand names. GSE has 85 SuperCenters nationwide and state-ofthe-art call center.1434 Note: This event is separate from the 2011 dispersal of Ventura
functions to several other locations. (If his name sounds familiar, Marcus Lemonis is the
star on the CNBC show “The Profit.”)
Southern California Edison – See the 2012 Rosemead entry for this company for more
information about this offshoring event.
UFP Technologies, Inc., a manufacturer, relocated a business unit. Chairman and CEO
R. Jeffrey Bailly said, “efforts to improve margins and overall efficiency are paying off. Last
year, I told you about our goal to become more efficient by operating fewer, larger plants.
In 2012, we took another step in this direction. We ... moved the Ventura plant’s beauty
business to our plant in El Paso, Texas.”1435 Manufacturing and engineering moved to
Texas.
CallSource Multifamily (now known as LeaseHawk), which provides services to
apartment communities, is located in Westlake Village. Mike Mueller purchased a part of
the company and will relocate that portion to Scottsdale and create 40 local jobs. “The
CallSource Multifamily business aligns perfectly to my history of innovating consumer-
199
Jobs
Adjustment
313
Jobs
Adjustment
132
centric marketing and leasing solutions,” added Mueller, who will serve as president and
CEO of the company. Some of the CallSource Multifamily team will join Mueller in the new
company.1436 Mueller acquired certain assets and licensing rights to utilize CallSource
technology in a new company, LeaseFerret, doing business as CallSource Multifamily
during a transition period until it can rebrand and reposition itself. CallSource, Inc.
continues to operate out of California under its original ownership and management.”1437
Mueller is known for pioneering the first online apartment reservation system. The HQ for
LeaseHawk, a re-branding of the company, has been placed in Scottsdale.1438 The square
footage is 13,000 sq. ft.1439
Southern California Edison, a subsidiary of Edison International, IT Department,
Rosemead – see that entry for an explanation of the loss of 313 jobs at 28 locations and
reason for this adjustment.
Fisher Investments job growth in Camus, Washington – see note in 2010 entry.
200
Chapter 20: Details Regarding 2011 Disinvestment Events
California Disinvestment Events for 2011 as shown in Table 19 are self-explanatory. Quite often in public domain sources
information was lacking about jobs, capital investments and square footage. In such cases, the following codes will appear:
NJR – No Job Number Reported
N$R – No Capital Investment Reported
NQF - No Square Footage Reported
Table 19: California Disinvestment Events for 2011
California
County &
Locality
Destination
Location
Alameda ↔
Alameda
Texas > Austin
Alameda ↔
Berkeley
Missouri >
Kansas City
Jobs
Private
Capital
(million)
Sq. Ft.
(000)
Function
or
Industry
Codes
Event
Type
52
N$R
NQF
#DF
#SO
}CDO
}REL
NJR
N$R
NQF
#GR
#HQ
}REL
Information Available through Public Domain Sources
Total Immersion (now Intific) – The virtual-reality software designer closed its studio. Its
product uses publicly available maps to create a digital environment that duplicates a real
place such as a city or port. Military or police can use it to rehearse for emergencies. Total
Immersion’s primary studios are in Austin and Alameda. CEO Pete Bonanni said, “It’s hard
to have a split studio, and we wanted to put everybody in one place. It’s cheaper to
operate in Texas, but that really wasn’t the story. One lease was up and the other one
wasn’t.”1440 That may be so, but this looks like a remarkable loss – read on: The Austin
office opened in 2007 with a dozen employees, but by 2012 had 85 and more growth is
planned. Intific is working on training programs to help federal officials operate remotely
piloted drones. Its work falls under the category of “serious games,” those used for training
or education. Intific has helped troops in the Middle East learn to spot improvised
explosive devices. Also, Intific is branching into commercial products in neuroscience.
Intific opened its Austin studio when it was known as Total Immersion Software. A conflict
with a similarly named European company prompted a name change to Intific.1441
Nordic Windpower USA will relocate its headquarters where it expects to provide jobs for
200 workers and make a capital investment of nearly $16 million over the next six
years.1442 The company filed for Chapter 7 liquidation Oct. 8 in U.S. Bankruptcy Court in
Kansas City. Among the reasons given was the denial of a Department of Energy
grant.1443 Nordic Windpower’s two-bladed turbines are based on a 30-year, $75 million
investment in R & D by the Swedish government1444 – despite that investment the
company needed additional subsidies from another government. Since the promised jobs
and capital investment weren’t made, they are not included in this report.
201
Alameda ↔
Emeryville
Germany >
Unknown
Alameda ↔
Emeryville
Illinois > Spring
Grove
Alameda ↔
Fremont
China >
Hangzhou
Alameda ↔
Fremont
540
N$R
NQF
#MA
#PB
}CLO
}OSO
}REL
50
N$R
NQF
}REL
NJR
N$R
NQF
#CH
#CP
#DO
#RW
#GR
#MA
Unknown >
Dispersed
56
N$R
NQF
Alameda ↔
Fremont
China >
Changzhou
NJR
N$R
NQF
Alameda ↔
Fremont
Indiana > Jasper
52
N$R
NQF
Alameda ↔
Fremont
Alameda ↔
Fremont
Texas > Irving
NJR
N$R
NQF
Unknown >
Dispersed
1,100
N$R
NQF
#GR
#MA
}CLO
}DSP
Alameda ↔
Fremont
Mississippi >
Blue Springs
2,000
$953.7
NQF
#AU
#MA
}CLO
}REL
}CDO
}OSO
#DN
#MA
#PA
#QA
#GR
#MA
}CLO
}DSP
}CDO
}OSO
#EC
#MA
}CLO
}REL
}REL
Bayer HealthCare will wind down its multiple sclerosis drug manufacturing in Emeryville
and move it to Germany, resulting in the loss of about 540 jobs and vacating of more than
300,000 sq. ft. of space. Bayer is Emeryville’s third-largest employer.1445
Cartridge World Inc. – The supplier of printer cartridges relocated its North American
headquarters in 2011.1446
Silevo Inc. (formerly: Sierra Solar Power) – The photovoltaic solar module manufacturer
announced building “scalable, automated, low-cost manufacturing operations” in China.
The company was founded by “leading executives and engineers from the semiconductor
industry” and has been assisted in technology work by Sandia National Laboratories.
Silevo recently closed $33 million in financing that will fund more R&D in Silicon Valley and
“build the high-volume manufacturing facility in China.1447 Note: In 2014, SolarCity signed
an agreement to acquire Silevo.1448
R.R. Donnelly & Sons – The printing company will cut 56 jobs and close its distribution
and manufacturing center. The lost jobs include forklift operators, shipping and receiving
clerks, hoist operators, buyers, inventory control clerks and quality control employees. 1449
Leyden Energy – The battery-business company raised $38 million in venture capital and
one outcome is that it has begun manufacturing its first commercial product -- in
Changzhou, Jiangsu Province, China. Its products can be used in electric cars, electric
bicycles and electric motorcycles.1450
Kimball International Inc. closed its manufacturing plant that produced electronics for the
medical field and transferred work to a southern Indiana facility. The shift will mean more
job security for those at the Indiana plant.1451
W3global, Inc. – The systems integration consulting and IT design and solutions provider,
relocated its headquarters to Texas.1452
Solyndra – A promised “new wave” of manufacturing turned into a tax-subsidized,
colossal failure. The solar panel manufacturer failed even though California’s politicians do
everything they can to make the state a “green” utopia for renewable-energy companies.
It’s poorly understood that people who pay California taxes lost out on Solyndra as well as
those who pay Federal taxes. The Los Angeles Times reported that California approved
$37 million in sales tax exemptions for Solyndra, and the company managed to use $25.1
million of those before it closed.1453 Solyndra closed its last Fremont factory, furloughed
1,100 employees and filed for bankruptcy, a high-profile failure for a federal stimulus
program that gives loan guarantees to such companies. Solyndra received “$535 million in
2009 to build its second factory in Fremont near the company’s first plant. President
Obama and then-Gov. Arnold Schwarzenegger toured the new plant, citing it as a symbol
of the nation’s economic recovery.”1454 ABC News reported a major investor in Solyndra
was George Kaiser, a billionaire who raised money for Obama’s Presidential campaign.1455
A comprehensive account of Solyndra’s collapse and associated scandals points out the
White House role in granting Solyndra the $535 million federal loan guarantee, the
company’s bankruptcy, the FBI raids that followed, and the company’s top officials
invoking the Fifth Amendment when questioned by a Congressional Committee. 1456
Toyota Motor Corp. – Upon closure of NUMMI, work shifted to Mississippi. Company
statement: “Toyota team members today celebrated the opening of Toyota Motor
202
Alameda ↔
Fremont
New York >
Albany
Alameda ↔
Hayward
NJR
N$R
NQF
#CH
#MA
#SC
}CDO
Nevada > Reno
18
N$R
NQF
}FP
}MA
}CDO
Alameda ↔
Hayward
Washington >
Battle Ground
27
N$R
20
#EC
#HQ
#MA
}REL
Alameda ↔
Hayward
Nevada > Sparks
45
N$R
24
#HQ
#MA
}REL
Alameda ↔
Livermore
Utah > Sandy
212
N$R
NQF
#DO
#SB
}REL
Alameda ↔
Livermore
Mexico >
Guadalajara
NJR
N$R
NQF
#SB
}OSO
Manufacturing, Mississippi (TMMMS), the company’s new plant outside of Tupelo that
assembles the Corolla, the world’s best-selling car of all time.... TMMMS is Toyota’s
fourteenth North American plant, further advancing the company’s efforts to design,
develop and build vehicles where they are sold.”1457 More than 2,000 employees work in
the $953.7 million plant.1458 Update: The 2013 boom in Toyota Corolla sales represents an
opportunity cost to California. The Blue Springs plant, which rolled off its first vehicle in
October 2011, has built more than 250,000 of the cars. The plant is now building a new
Corolla every 77 seconds.1459
Group4 Labs Inc., which uses synthetic diamonds to create energy-efficient
semiconductor wafers, is opening a manufacturing facility at UAlbany’s College of
Nanoscale Science and Engineering (CSNE). Manufacturing will begin by summer and
ultimately create 50 high-tech jobs by 2015. Group4 Labs builds semiconductor materials
for, among other things, radar systems, smart phones, tablet computers and cellular
transmission towers.1460 This is separate from the 2010 event where the company will a
facility in Syracuse. Note: Silicon Valley used to be the epicenter for companies producing
computer chips in the U.S.
Pacific Cheese – The company is expanding its manufacturing facility in Reno and hiring
more employees, at least 18. “‘Once we acquired Chateau Cheese Corp., the decision to
locate our cheese processing division in Reno was an easy one to make,’ said Dale Tate,
CFO.... The Economic Development Authority of Western Nevada expects to see a fiveyear economic impact of more than $66.3 million in the area due to the expansion.”1461
[Along with efficiencies resulting from the acquisition, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Nevada leading to a reduction in expenses.]
Telemark – Gary Henderson, president of the small high-technology manufacturing
business, said he wanted to move the headquarters and factory because of California’s
traffic, taxes and regulations, and excessive political and social change. Also, he wanted
his employees to move with him. So he asked his workers: Where would you like to move?
Their new location won because of affordable housing and tolerable traffic, among other
factors.1462
TnB Enterprises, Inc. – The manufacturer of precision sheet metal and other products
moved its headquarters and also is opening a production facility in Sparks because of
Nevada’s business-friendly climate, tax and distribution advantages and the proximity to
California customers. President Thomas Bouthillier said, “Northern Nevada is a less
congested place than California with a better quality of life. When we needed to expand
our operation, it was an easy decision to expand to Sparks. It made sense given Nevada’s
business environment, less bureaucracy and lifestyle.” A unit remains in Hayward.1463
Comcast eliminated 212 jobs in Livermore as part of a move to shift its centralized
collection operations to Sandy, Utah, near Salt Lake City. The job cuts are set to end by
June, 2011. The new Utah operation will serve Comcast customers from California and
Washington. Comcast will retain a presence in the East Bay.1464
Comcast Cable, West Division Customer Care, furloughed center employees because the
company has acquired from foreign countries services like or directly competitive with
services supplied by the workers which contributed importantly to worker group
203
Alameda ↔
Livermore
Alameda ↔
Oakland
Philippines >
Unknown
Argentina >
Unknown
NJR
N$R
NQF
NJR
N$R
NQF
#SB
}OSO
}REL
}OSO
}REL
}OSO
}REL
India > Unknown
}OSO
}REL
Ireland >
Unknown
125
N$R
NQF
#IT
#SB
#SO
}CDO
}REL
Foreign Nation >
Unknown
60
N$R
NQF
#EN
#PB
}OSO
}REL
Contra Costa
↔ Richmond
Contra Costa
↔ Richmond
Contra Costa
↔ Walnut
Creek
Arizona >
Tolleson
Unknown >
Dispersed
India > Unknown
15
N$R
NQF
}REL
31
N$R
NQF
}CLO
}DSP
68
N$R
NQF
#SB
}OSO
}REL
El Dorado ↔
El Dorado
Hills
Nevada > Reno
19
N$R
NQF
#MA
#PB
}REL
Contra Costa
↔ Concord
Texas >
Unknown
Contra Costa
↔ Martinez
separations. The Dept. of Labor indicated that furloughs may have begun as early as Oct.
11, 2011.1465
Comcast Cable – See the 2011 entry for Mexico for this company for more information
about this event.
Health Net, Inc. – In all six locations – Huntingdon Beach, Los Angeles, Oakland, Rancho
Cordova, San Diego and San Rafael – the Information Technology Groups and IT Support
were affected by work being shifted away. In addition, the Claims Department was also
impacted in Los Angeles and Rancho Cordova. The Dept. of Labor indicated that furloughs
may have begun as early as May 30, 2011.1466 Note: This entry has a different format
because it is unclear what the relationship is between the six California locations that lost
jobs and the three out-of-country locations that gained the jobs. For example, did the
Oakland jobs go to Argentina, India or Ireland? Or were they spread amongst the three
nations? The company didn’t clarify and WARN notices fail to provide such detail. Hence,
these multiple events are being reported in a generalized manner here and in the boxes
that follow in the California County & Locality column.
Tickets.com will shut its Concord office and eliminate 125 jobs by moving call center and
customer service operations to Harte-Hanks, which will deliver services from a “cuttingedge” complex in Texas. Concord is the only Ticket.com call-center complex being closed.
A company spokesperson said, “This change in strategy allows us to focus more on our
key competency – developing world-class ticketing software.”1467 ProVenue is the brand
name for its open architecture ticketing software.1468 The location in Texas is unclear;
Harte-Hanks has facilities in Austin, Grand Prairie, San Antonio and Texarkana.1469 [Along
with the reasons cited, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Texas leading to a reduction
in expenses.]
Siemens Medical Solutions, USA, Inc., Oncology Care Systems (Radiation Oncology)
furloughed employees and on-site leased employees supplying medical engineering
services and related services because the company shifted the work to a foreign country.
The move affected 60 jobs and the company reported that workers were separated as of
Feb. 1, 2011. The Dept. of Labor document failed to specify the foreign nation.1470
New WinCup Holdings Inc. – The company will permanently close its Richmond
warehouse.1471 See the 2011 Corte Madera event for more information.
Graham Packaging Co. – A WARN notice listed the company’s facility in Richmond as a
closure that will affect 31 employees on Sept. 1, 2011.1472
AAA Northern California furloughed employees involved in providing accounting and
payroll services in the Automotive Services Delivery Division. The California Employment
Development Department stated that 68 jobs were affected when the company shifted
such work to India. The Dept. of Labor failed to specify what community within that
country, but indicated that furloughs may have begun as early as Feb. 14, 2011. 1473
Synvasive Technology, Inc., is a manufacturer and distributor of some of the most
advanced surgical cutting technology available, opened a new Instrument Solutions
Division in Reno and hired 19 employees, however news accounts aren’t clear about the
nature of the division.1474 Update: In 2012, Zimmer Holdings, Inc. announced it “has
204
Fresno ↔
Fresno
Unknown >
Dispersed
60
N$R
NQF
#DN
}CLO
}DSP
Fresno ↔
Fresno
Unknown >
Dispersed
70
N$R
NQF
#CP
#MA
#PL
}CLO
}DSP
Glenn ↔
Orland
Unknown >
Dispersed
25
N$R
NQF
#MA
}CLO
}DSP
Kern ↔
Bakersfield
Texas > Houston
46
N$R
NQF
#HQ
#MA
}CLO
}REL
Kern ↔
Bakersfield
Unknown >
Dispersed
60
N$R
NQF
#FP
#MA
}CLO
}REL
Los Angeles
↔ Agoura
Hills
Los Angeles
↔ Azusa
Canada >
Quebec,
Montreal
Mexico >
Unknown
145
N$R
NQF
#SO
}CDO
}OSO
18
N$R
NQF
#MA
#PL
}ODO
}REL
acquired Reno, Nevada-based Synvasive Technology, Inc.”1475 The language indicates a
relocation out of California had occurred; hence the code.
Sony Corp. will close a distribution center in Fresno, putting about 60 people out of work.
A Sony subsidiary has leased the warehouse since 1990. The closure is part of supplychain cost cutting, Fresno operations will be absorbed into other U.S. distribution sites the
company operates, which weren’t identified.1476
S.C. Johnson & Son Inc. (a.k.a. SC Johnson Home Storage, LLC) will close its Ziploc
plant and a spokesperson wouldn’t say where the work would be relocated. The company
has operations in more than 70 countries and sells products in more than 110 countries.
“We have other sites in the SC Johnson network that are able to meet our business needs
with advantages in terms of infrastructure, synergies with existing production, supplier or
customer proximity,” the spokesperson said. SC Johnson has operated the Fresno plant
since 1998, producing millions of plastic bags each year. Workers can relocate to another
plant, although the company doesn’t have any others in California.1477 It also produces
Ziploc bags in Bay City, Michigan, which apparently is unaffected by cutbacks. 1478 [Along
with the reasons cited, it’s conceivable that the consolidation/location decision was
influenced by lower business and employee costs, taxes and fewer regulations elsewhere
leading to a reduction in expenses.]
Crystal Geyser found that it had to withdraw its plan for a water bottling plant in California,
which was challenged by environmental lawsuits. The city previously approved the project
stating that a full environmental review was not required because the land had long been
zoned heavy industrial, and the project fit within those guidelines. Had it been built, the
plant would have occupied 112,500 sq. ft.1479 Note: Citing environmental reasons,
California now diverts fresh rainwater directly into San Francisco Bay (essentially the
Pacific Ocean) instead of storing it or using it for agricultural purposes as it has in the past.
Lortz Manufacturing Co. – The business closed after 64 years. From a peak of 223
employees, Lortz reduced its payroll to 146 in 2008; 95 in 2009, and to 46 at its closing.
Lortz did metal fabrication work for the energy, aerospace, agriculture and food processing
industries, among others.1480 A Houston-based expansion joint maker, U.S. Bellows, Inc.
acquired assets of Lortz, including its fabrication equipment, drawings and designs,
customer lists, engineering history and historical data. Materials were transferred to the
U.S. Bellows facility in Houston to expand its ability to provide products more quickly and
efficiently to its worldwide customers. U.S. Bellows will hire and relocate some of the
former Lortz employees to Houston.1481
Fresh Start Bakeries – The Brea-based company closed a frozen bread dough
manufacturing plant in Bakersfield that had only just opened in April 2009, costing 60
people their jobs. The company has operations in 10 countries, and the work will be
spread among other, unspecified facilities.1482
THQ Inc. – The developer and publisher of interactive entertainment software moved jobs
to Montreal after the company decided to relocate resources to lower-cost areas. THQ
hired 145 employees for its new Canadian studio; it kept its HQ in Agoura Hills. 1483
Rain Bird Corp. furloughed employees and on-site leased workers involved in plastic
injection molding because the company shifted some work to Mexico. The Dept. of Labor
failed to specify what community in that country, but indicated that furloughs may have
205
Los Angeles
↔ Burbank
North Carolina >
Kings Mountain
NJR
$200
NQF
#DC
#EN
#IT
}CDO
Los Angeles
↔ Burbank
India > Unknown
NJR
N$R
NQF
#ET
}OSO
}REL
Los Angeles
↔ Calabasas
Texas > Austin
11
N$R
NQF
#HQ
#SO
#REL
Los Angeles
↔ Carson
Los Angeles
↔ Carson
Unknown >
Dispersed
Nevada > Reno
NJR
N$R
NQF
#MA
}CLO
}DSP
12
N$R
44
#DN
#MA
#PL
}REL
Los Angeles
↔ Carson
Texas > San
Antonio
100
N$R
NQF
#AE
#DE
#DN
}CLO
}REL
Los Angeles
↔ Carson
China >
Unknown
NJR
N$R
NQF
#CP
#MA
}OSO
}REL
Los Angeles
↔ City of
Industry
Unknown >
Dispersed
82
N$R
NQF
#HQ
#MA
}CLO
}DSP
begun as early as on Feb. 16, 2011.1484 The company’s website shows facilities in Tijuana
and Nogales.1485
Walt Disney Co. – The company bought 26 acres in the Kings Mountain Data Center Park
for a $200 million data center. Areas near Charlotte have become a data-center
destination. During the last four years, Google has opened in Lenoir, Apple Inc. in Maiden
and Facebook started work on a center in Rutherford County. Low electric rates and
access to water to cool the facilities are key ingredients in the server farm boom. 1486 [Note
that data centers use significant amounts of electricity and such costs are lower in North
Carolina than in California.]
Reliance Mediaworks Imaging Services, a subsidiary of Reliance Mediaworks,
furloughed employees supplying motion picture imaging, restoration, visual effects, and
picture correction because the company shifted the work to India. The Dept. of Labor failed
to specify what community in that country, but indicated that furloughs may have begun as
early as on June 12, 2011.1487
Malauzai Software – The software company, which provides mobile services for
community banks, is expanding in Austin after it relocated its headquarters there. Cofounder and Chief Product officer Robb Gaynor said. “Austin has a great base of financial
services technology and mobile services companies, and it’s the perfect place for us to
build this company. We’re hiring a lot of people over next couple years, and this was the
place to do it.”1488 [Along with the reasons cited, it’s conceivable that the location decision
was influenced by lower business and employee costs, taxes and fewer regulations in
Texas leading to a reduction in expenses.]
ThreeBond International, Inc. See more details in the 2011 Torrance entry for this
company.
Hedwin Corp., a manufacturer of plastic containers, liner products for pails and drums and
other custom plastic parts is relocating its warehouse and assembly operation from to a
44,000-sq. ft. facility in Reno, employing 12 people. The company cited Northern Nevada’s
logistics advantages and pro-business climate among reasons for its relocation.1489
Boeing Co. – The company will close a C-17 aircraft parts warehouse and move part of
the work to a Santa Fe Springs, Calif., facility and part to Texas. Up to 200 jobs will be
affected.1490 Since it isn’t known how many jobs will be shifted to which location; hence,
only 50% of the job count is attributable in this report to San Antonio.
Enkeboll Designs furloughed employees producing architectural woodcarvings,
ornaments and designs because the company shifted the work to China. The Dept. of
Labor failed to specify what community in that country, but did indicate that furloughs may
have begun as early as on Sept. 6, 2011.1491
McConnell Cabinets, Inc. – A WARN notice listed the facility as a closure that affected 82
employees on April 1, 2011.1492 Loeb, the Chicago-based auction house, on behalf of
McConnell Cabinets Inc., held an onsite and online auction “of one of the Largest U.S.
Independent Kitchen& Bath Cabinet Manufacturers, Featuring Late Model Woodworking &
Finishing Equipment - Over 100 Unit Vehicle Fleet and Rolling Stock!” in June.1493 The
facility had the capacity to manufacture 1,600 cabinets per day. 1494
206
Los Angeles
↔ Compton
Mexico >
Mexicali
10
N$R
NQF
#MA
}OSO
}REL
Los Angeles
↔ Compton
China >
Unknown
NJR
N$R
NQF
#AU
#QA
}OSO
}REL
Los Angeles
↔ El
Segundo
Los Angeles
↔ El
Segundo
Connecticut >
Norwalk
NJR
N$R
NQF
#HQ
#IT
#SO
}REL
50
N$R
NQF
#EC
}OSO
}REL
Los Angeles
↔ Glendora
Indiana >
Indianapolis
NJR
N$R
NQF
#SB
}REL
Los Angeles
↔ La Mirada
Unknown >
Dispersed
61
N$R
NQF
#MA
}CLO
}DSP
Los Angeles
↔ Lancaster
Colorado >
Colorado Springs
7
N$R
NQF
#AE
#DF
#HQ
#PB
#RD
}CLO
}REL
Los Angeles
↔ Lomita
Los Angeles
↔ Long
Beach
Unknown >
Dispersed
Kansas > Great
Bend
NJR
N$R
NQF
175
$3
200
Britain >
Unknown
}DSP
}REL
#MA
}REL
Dameron Alloy Foundries, Inc., shifted jobs involved in production of “investment
castings” Mexico, costing ten jobs in Compton. The Dept. of Labor reported that furloughs
may have begun as early as April 19, 2011.1495
Kraco Enterprise, LLC, subsidiary of Sun Capital Partners, Inc., furloughed employees
involved in supplying quality control services for automotive aftermarket accessories
because the company shifted the work to China. The Dept. of Labor failed to specify what
community in that country, but did indicate that furloughs may have begun as early as on
March 21, 2011.1496
Zadspace, Inc., a privately-held, venture-backed advertising software company, is moving
its headquarters to Connecticut after receiving another round of funding, which now totals
$6 million.1497 It has maintained a Los Angeles presence.
British Telecom America, British Telecom Operate, furloughed employees involved in
systems monitoring and systems security services because the company shifted the work
to the U.K. The Dept. of Labor failed to specify the name of the community in that country,
but did indicate that furloughs may have begun on Oct. 15, 2011.1498
National Hot Rod Association (NHRA) will move its technical department headquarters
to Indianapolis, to be housed at O’Reilly Raceway Park, owned by the Association. “We
have been aggressively expanding our technical services capabilities and believe this
move will enhance our ability to not only serve our constituents, but retain and recruit
some of the finest technical talent in the country,” said NHRA President Tom Compton.” It
will maintain a West Coast presence.1499 [Along with the reasons cited, it’s conceivable
that the location decision was influenced by lower business and employee costs, taxes
and fewer regulations in Indiana leading to a reduction in expenses.]
Pactiv Corp., a fruit and vegetable packaging company, will close its La Mirada plant in
June as restructuring continues following its acquisition by New Zealand Rank Corp. 1500
The event will affect 61 employees.1501 A City of La Mirada report shows no Pactiv
employees in the city by 2012.1502 This is in addition to a City of Industry closure shown in
the 2010 event listing.
Howell Precision Machine and Engineering, Inc. – The family-operated company
specializes in R&D, prototyping and manufacturing for the military, aerospace and medical
devices. Harold Howell said, “California is becoming very unfriendly to small businesses
and corporations and our survival depends on our relocating to another state.” In addition
to the state’s economic loss, this is an example of a community loss. Howell volunteered
his time and machines to assist Lancaster High School’s FIRST Program (For Inspiration
and Recognition of Science and Technology) robotics team. Howell became involved in
the program its first year in business (about 25 years ago) because he realized that
machining was a dying art and hoped that he could inspire a new generation of machinists.
The company hopes to begin mentoring high school students in Colorado.1503
ThreeBond International, Inc. See more details in the 2001 Torrance entry for this
company.
Redbarn Pet Products – Relocated manufacturing to a 200,000-sq. ft. in Kansas with an
annual payroll of about $4 million. The Great Bend Tribune reported: “Because of taxes,
the work ethic and the available labor pool, [Co-founder Howard] Bloxam said Kansas is
207
Los Angeles
↔ Long
Beach
North Carolina >
Huntersville
30
N$R
120
#DN
}CLO
}REL
Los Angeles
↔ Los
Angeles
Foreign Nation >
Unknown
NJR
N$R
NQF
#SB
}OSO
}REL
Los Angeles
↔ Los
Angeles
India > Unknown
NJR
N$R
NQF
#ET
#SB
}OSO
}REL
Los Angeles
↔ Los
Angeles
Texas > Plano
75
N$R
17.6
#HQ
}REL
Los Angeles
↔ Los
Angeles
Texas > Plano
200
N$R
218
#DN
#MA
#PA
}REL
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
See comment at
right.
NJR
N$R
NQF
Virginia > Falls
Church
300
N$R
NQF
}OSO
}REL
#AE
#DF
#HQ
}CLO
}REL
much more small-business friendly than California.” The company, looking to grow to $75
million, has products in Petco, Walgreens, Kroger, and elsewhere.1504
Positec Tool Corp. – The producer of power tools and garden equipment is re-locating its
retail distribution facility from Long Beach to North Carolina. Positec will occupy 120,000
sq. ft. of space in Huntersville, which will be leased and operated by its logistics partner
Performance Team Inc. of Santa Fe Springs, Calif.1505
ESIS, Inc. furloughed employees and on-site leased workers involved in clerical services
because it shifted the work to the Philippines. The Dept. of Labor failed to specify what
community in that country, but indicated that furloughs may have begun on July 17,
2011.1506 The location is Chatsworth, a section of the City of Los Angeles.
E! Entertainment Television LLC, G4 Media, LLC, and Style Media, LLC, subsidiaries of
NBC Universal, Cable Networks Division, Accounts Payable Unit, furloughed employees
and on-site leased workers because the company outsourced accounts payable services
to India. The Dept. of Labor didn’t identify the community in that country, but did indicate
that furloughs may have begun Sept. 24, 2011.1507
Fonality Inc., which provides corporate phone systems for small to midsize companies,
relocated its headquarters into a 17,555 sq. ft. facility for executive, finance, sales and
marketing staffs.1508 Although the company kept a unit in California, an additional
expansion caused the growing company to move into a larger HQ space in Plano.1509
Investor’s Business Daily / O’Neil Data Systems the affiliated companies are expanding
their office, manufacturing, assembly and distribution operations to Texas, bringing more
than 200 jobs into a 218,000-sq. ft. office and warehouse.1510 Bill O’Neil, chairman of
William O’Neil + Co., which owns the paper, said that “It’s possible that we might move the
headquarters there at some point, but it’s just an expansion move right now.” Jobs will
move in 2011.1511 Investor’s Business Daily will place “printed in Plano, Texas” on its
masthead, an intangible value of putting the Plano name in front of thousands of readers
whose average household income is around $281,000. Most of the jobs will be new
positions.1512 An initial report that the facility will total 218,000 sq. ft. was eclipsed by a
later company report that cited 235,000 sq. ft.1513 Note: There also is a 2015 event where
the company will invest $140 million in a Monroe, North Carolina facility.
Health Net, Inc. See the 2011 Oakland entry for this company for more information about
this event in Woodland Hills, a section of the City of Los Angeles.
Northrop Grumman – The aerospace and defense company will relocate its headquarters
to Virginia and jobs with an average salary of $200,000. Some executives will move from
California, while others will be new hires.1514 The company will create a minimum of $30
million in tax revenue.1515 The Los Angeles Times reported that “It’s the last major
aerospace company to leave Southern California, the birthplace of the aerospace
industry.... All told, Northrop is moving about 300 people from its corporate office in
Century City..... Southern California once was home to many of the nation’s largest military
contractors, including Lockheed Corp., General Dynamics Corp. and Rockwell
International.... Northrop was founded in 1939 in Hawthorne,”1516 meaning it had a 71-year
history of being headquartered in Southern California. Relocation-related investments
208
13
N$R
NQF
#MA
}OSO
}REL
100
N$R
NQF
#DO
#DN
}CLO
}REL
Malaysia > Kuala
Lumpur
53
N$R
NQF
#SB
#TP
}OSO
}REL
Canada >
Quebec, Mirabel
260
N$R
NQF
#DO
#MA
#PA
}CLO
}REL
Los Angeles
↔ Los
Angeles
Ohio > Canton
966
N$R
NQF
#SB
}CDO
Los Angeles
↔ Los
Angeles
North Carolina >
Wallburg
150
N$R
120
#EN
#MA
#RD
}CDO
Los Angeles
↔ Los
Angeles
Mexico >
Pitiquito
Los Angeles
↔ Los
Angeles
Kentucky >
Louisville
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
totaled $24 million. The Virginia Economic Development Partnership confirmed that the
move occurred in 2011.1517
Tandy Brands Accessories, Inc. furloughed employees involved in purchasing, design
and merchandising services because the company shifted the work to Mexico. The
company stated, “Services supporting the production of belts is being transferred to
Chambers de Mexico (CDM) located in Pitiquito Mexico. Workers will be hired there to
replace these jobs.” The Dept. of Labor indicated that furloughs may have begun as early
as Feb. 7, 2011.1518
JustFabulous – The online-based service, which grants access to celebrity stylists and
fashion trends, relocated its warehouse from the Valencia section of Los Angeles to
Kentucky in May 2011. The company’s HQ is in El Segundo, Calif. It chose “Derby City” to
further its plan for “hyper-growth.” The company plans to create nearly 100 jobs in
Louisville.1519
Korean Air Line (sic) Company Ltd. American Regional Headquarters, furloughed
customer call center employees because the company shifted the work to Malaysia. The
Dept. of Labor indicates that furloughs may have begun as early as Oct. 17, 2011.1520
Technicolor Inc. closed its plant in 2011, furloughed employees and transferred work to
Canada. Some services will remain in North Hollywood. The company has invested
heavily in digital post production and visual-effects facilities in Bangalore, India, and
London.1521 Little is known about when the India and England events occurred, so they are
excluded from this report. Also in 2011, Technicolor opened a facility in Glendale where
apparently it rehired about 100 of the 360 North Hollywood workers laid off to work in
Glendale.1522 (Note: In 2013 the Glendale facility was closed.1523) For this report the count
of affected employees has been reduced to 260.
VXI Global Solutions Inc. will open a call center and bring nearly 1,000 new jobs to Ohio.
Services include account management, retention calls and client support in more than 20
languages; positions include sales agents, supervisors, operations managers, HR
managers, trainers and recruiters.1524 The company provides business process and
information technology outsourcing for software development, application maintenance,
quality assurance testing and other purposes.1525
TIMCO Aerosystems moved into a plant where it is manufacturing airplane seats on four
production lines in a 120,000-sq. ft. building; it plans to hire 500 employees within seven
years. The company acquired Brice Seating in California but that facility couldn’t be
expanded further so the company began looking at other locations. In the new location
Timco’s plant is on 69 acres of land, with space to expand the plant or develop a business
park, which might include some of Timco’s suppliers. Work is under way to add a
prototype design center and a test lab. A plant manager said, ‘It’s everything we thought it
would be,” noting that manufacturing skills, including those in furniture, have served the
employees well. “We’re already producing as many seats as our California facility.”1526
[Along with the reasons cited, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes and fewer regulations leading to a reduction in
expenses.]
209
15
$0.1
NQF
#CP
}CLO
}REL
Massachusetts >
Boston
NJR
N$R
NQF
#HC
#HQ
}REL
Nebraska >
Omaha
NJR
N$R
NQF
#GR
#HQ
}UTN
Los Angeles
↔ Los
Angeles
Nebraska >
Omaha
NJR
N$R
NQF
#AE
#HQ
}UTN
Los Angeles
↔ Los
Angeles
Arizona >
Scottsdale
20
N$R
NQF
#EN
#HQ
#IT
#SO
}REL
Los Angeles
↔ Los
Angeles
Arizona >
Phoenix
125
$200
NQF
#DC
#NP
#PB
#RD
}CDO
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
Arizona >
Scottsdale
NJR
N$R
NQF
Washington, DC
> Washington,
DC
NJR
N$R
NQF
#BF
#HQ
}REL
Los Angeles
↔ Los
Angeles
Unknown >
Dispersed
NJR
N$R
NQF
#NP
#PB
}CLO
}DSP
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
Georgia >
Miami
}CDO
Testi USA, Inc., a unit of an Italy-based jewelry producer, moved its Los Angeles
headquarters to Florida. The company made an initial capital investment of $100,000 and
will create 15 jobs over a three year period.1527
Smith & Wollensky – The steakhouse chain has completed a two-year move of its
corporate HQ to Boston as the owners gradually relocated executives from “dual
headquarters” in Los Angeles and New York.1528
SFT America Limited, LLC, a Chinese manufacturer of energy-efficient lighting will locate
its U.S. headquarters in Nebraska. SFT America Limited President Mr. Jie Shi stated that
he originally planned to locate in Los Angeles but selected Nebraska instead because the
state offered a more welcoming environment. He said, “Los Angeles could not do in three
days, what Nebraska did in one day.” Once the decision had been made to locate in
Nebraska, state employees worked around-the-clock with the company to successfully
incorporate in less than 24 hours.1529 The corporation continues to be registered in good
standing with the Nebraska Secretary of State as of 2015.1530
EM Gear Omaha – The company incorporated in Nebraska in one day after taking a lot
longer time to unsuccessfully accomplish that in California. It manufactures gears for the
agriculture, aerospace and marine industries, will establish its U.S. headquarters in
Omaha. EM Gear is the U.S. division of Dae Seong Gear Manufacturing Co. of South
Korea.1531
Parchment Inc. (formerly Docufide Inc.) – The education technology company is
relocating its headquarters, in part to SkySong, the Arizona State University’s Scottsdale
Innovation Center, where it plans to hire 20 people for engineering and sales jobs, with
salaries ranging from $75,000 to $100,000. The company has software solutions for
providing electronic transcripts for schools and universities. Part of the office will remain in
L.A.1532 Also in 2011, Docufide announced that it changed its name to Parchment
Institute for Advanced Health Inc. – The non-profit organization will develop a $200
million data center and office to support the development of personalized medicine, which
will create new health care, research and technology jobs in Phoenix. The projects initially
will create 125 jobs, but eventually could attract many more to the area’s biomedical hub.
The facility will serve as a national repository for human genome data.1533 Later
information shows that not only an office was established but that data centers were put
into Phoenix and Scottsdale, with another planned for Phoenix. 1534 [Note that data centers
use significant amounts of electricity and such costs are lower in Arizona than in
California.]
Institute for Advanced Health Inc. – See the company’s 2011 Phoenix entry for more
information regarding this event.
EIG Global Energy Partners – The company, formerly part of L.A.-based money
manager TWC Group’s portfolio, separated from TCW and moved its headquarters. EIG is
now an independent investor with $8.5 billion under management and has offices in
Houston, New York, Sydney and London.1535
Cleveland Chiropractic College – Cleveland-LA will no longer accept students, closing
the Los Angeles campus at the end of summer trimester in August 2011. A contributing
factor was the downward enrollment trend in California. The company’s Overland Park,
210
20
N$R
2.2
#HQ
#PF
}CLO
}REL
NJR
N$R
45
#EC
}CDO
Texas > Austin
25
N$R
NQF
#BF
#HQ
}CLO
}REL
Los Angeles
↔ Los
Angeles
Texas > Austin
50
N$R
NQF
#EC
#EN
#IT
#HQ
#SO
}CLO
}REL
Los Angeles
↔ Los
Angeles
Virginia >
Herndon
NJR
N$R
NQF
#HQ
}REL
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Malibu
Arizona > Tempe
NJR
N$R
NQF
#DO
#HQ
}CDO
5
N$R
NQF
#GR
}REL
NJR
N$R
NQF
#HQ
#PA
}CLO
}REL
Los Angeles
↔ Los
Angeles
Texas > Austin
Los Angeles
↔ Los
Angeles
Texas > Fort
Worth
Los Angeles
↔ Los
Angeles
Arizona >
Phoenix
North Carolina >
Wilmington
Kansas facility will remain open.1536 The college was incorporated December 1922 as a
non-profit, “benevolent association.”1537
58Phases – The online affiliate marketing company is moving its headquarters from the
Venice Beach section of Los Angeles because of business costs. CEO Dylan Ramsey
said, “We decided our company’s performance and ability to grow would be best nurtured
outside of California, and Austin is an exciting tech city with a lot going on. The only thing
that stopped us before was the heat. Now we’re like, ‘We’ll suck it up.’” The company
leased a 2,200-sq. ft. space for $3,400 a month, which includes eight parking spaces. In
L.A., where it will close its office, it paid $3,800 a month for half the space, plus $150 a
month for each parking space. 58Phases is self-funded and profitable.1538
CableCam – L.A.-based CableCam will open a 45,000-sq ft. facility in Texas, shared with
Tulsa-based SkyCam. The announcement was made by owner Outdoor Channel
Holdings, Inc., HQ’d in Temecula, Calif., the company said among the benefits are it’s
close to the major media and sports market of Dallas-Fort Worth and accessibility to the
DFW international airport, the third busiest in the world.1539 [Along with the reasons cited,
it’s conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Texas leading to a reduction in expenses.]
Al Frank Asset Management (AFAM) – The institutional money management company is
moving its headquarters to Austin. It’s being done without any government incentives, but
is designed to take advantage of a deeper worker pool and friendlier business
environment. “The costs of doing business in California are prohibitive,” CEO Jeff
Montgomery said. “We’re not in a Texas [incentives] program, but we’re fans of Texas.”
AFAM typically competes against national firms based in Boston and New York. AFAM
plans to maintain its California office and operate regional sales offices elsewhere.
Montgomery said he expects to grow the company through buyouts.1540
Cenoplex – The company is relocating corporate headquarters to Texas. Founded as
AdSnips LLC in 2007, it’s now promoting its software to 13 North American wireless
carriers. The new HQ will house corporate executives, finance, legal, sales and HR staff
and the core engineering and development team. It expects to employ 50 workers within
two years.”1541
China Unicom Americas – The Beijing-based telecom company moved its U.S.
headquarters to Virginia, stating that “The new headquarters places China Unicom
Americas at the heart of telecom industry, with many other global telecom companies
headquartered in the region.”1542 [Along with the reasons cited, it’s conceivable that the
location decision was influenced by lower business and employee costs, taxes and fewer
regulations in Virginia leading to a reduction in expenses.]
Bryan College – Created a headquarters for its online learning center staffed with faculty
and also administrators and staff serving the Admissions, Financial Aid, Student Outreach
and Career Services departments.1543
American Carpet Recyclers – Relocated operations on May 23, 2011.1544 The company
is categorized under Wholesale Recycling Centers; estimates show the company has an
annual revenue of $10 to 20 million and employs a staff of approximately 5 to 9. 1545
Art & Antiques – The magazine moved its headquarters. Publisher Phillip Troy Linger
pointed out that editorial offices are in New York and design and sales offices are in Los
211
Los Angeles
↔ Monterey
Park
China >
Unknown
NJR
N$R
NQF
#PA
}OSO
}REL
Los Angeles
↔ Monterey
Park
Los Angeles
↔ North
Hollywood
Singapore >
Unknown
NJR
N$R
NQF
Texas > Austin
85
N$R
NQF
#SB
}CLO
}REL
Los Angeles
↔ Pasadena
Florida > Boca
Raton
100
N$R
NQF
#HQ
#PF
#SB
#TP
}CLO
}REL
Los Angeles
↔ Pomona
Unknown >
Dispersed
153
N$R
NQF
#BF
}CLO
}DSP
Los Angeles
↔ Santa Fe
Springs
Unknown >
Dispersed
NJR
N$R
NQF
#LP
#MA
}CLO
}DSP
Los Angeles
↔ Santa
Monica
Unknown >
Dispersed
NJR
N$R
NQF
#DO
#PA
}CLO
}DSP
}OSO
}REL
Angeles and Dallas. He said technology enabled him to relocate and avoid big-city rents.
He plans to grow internationally and possibly put the magazine in France, Italy, Germany
and Switzerland.1546
Color Service, Inc. furloughed employees engaged in the production of commercial
printing packages and pre-press activities (for posters, banners, etc.) because “Company
supplied to Mattel and Disney, production was being shift/outsourced to China and
Singapore.” It was determined that the “increased reliance on imports [by Mattel and
Disney] contributed importantly to the worker group separations and sales/production
declines at Color Service.” The Dept. of Labor indicates that furloughs may have begun as
early as Aug. 15, 2011.1547
Color Service, Inc. – See the 2011 China entry for this company for more information
about this event.
InsuranceLeads.com – The company was purchased by All Web Leads Inc., a “customer
acquisition marketing” business, creating a $100 million-a-year company. All Web Leads
employs about 40 in Austin and InsuranceLeads.com employs about 100 in California.
Operations will be consolidated in Austin.1548 A WARN notice listed the company’s facility
in North Hollywood as a closure that will affect 85 employees in 2011.1549 [Along with
efficiencies resulting from the acquisition, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Texas
leading to a reduction in expenses.]
Garda World Security Corp. is moving its U.S. headquarters to Florida, generating 100
jobs in the state with an average annual wage of $65,769. In addition to handling bank
transfers, the company also has a Consulting and Investigation group. Stéphan Crétier,
president and CEO, said he was “impressed with the vibrant business climate Florida is
seeking to create.” Garda was considering a move to Illinois or Delaware, but those states,
as well as California, have significantly higher corporate tax rates than Florida.1550
HSBC Processing Services – A WARN notice listed the bank’s facility in Pomona as a
closure that affect 153 employees on April 3, 2011. See the Sioux Falls entry for
information about Capital One’s involvement with HSBC and another closure and shifting
of jobs.1551
RockTenn Co. (formerly Smurfit-Stone Container Corp.) – A WARN notice listed the
facility as a “closure,” and loss of 69 jobs on July 31, 2011.1552 A Georgia-based company,
RockTenn, became the new owner of the facility when it acquired Smurfit-Stone in
May.1553 The company stated: “This action is a necessary first step in realigning the box
plant system of RockTenn.... We plan to take many actions in the next year to maximize
the efficiency of our manufacturing processes as well as to reduce costs....”1554 [Along with
efficiencies resulting from the acquisition, it’s conceivable that location decisions were
influenced by lower business and employee costs, taxes and fewer regulations elsewhere
leading to a possible reduction in expenses.]
Asylum Visual Effects – A Mantra listing shows Asylum as “a private company
categorized under Motion Picture Film-Editing” and estimated it had “an annual revenue of
$10 to 20 million” while employing a staff of approximately 100 to 249.” Visual effects work
has shifted to Canada, U.K., Eastern Europe, India, Malaysia, the Philippines, Indonesia
212
Los Angeles
↔ Torrance
Mexico > Tecate
75
N$R
NQF
#EC
#MA
}OSO
}REL
Los Angeles
↔ Torrance
Unknown >
Unknown
31
N$R
NQF
#MA
}CLO
}DSP
Los Angeles
↔ Torrance
Texas > Fort
Worth
131
N$R
NQF
#MA
}CLO
}REL
Los Angeles
↔ Torrance
Los Angeles
↔ Torrance
Canada >
Ontario, Whitby
Mexico > Tijuana
NJR
N$R
NQF
10
N$R
NQF
#MA
}OSO
}REL
Los Angeles
↔ Torrance
India > Unknown
NJR
N$R
NQF
#AU
#IT
}OSO
Los Angeles
↔ Vernon
Arizona >
Phoenix
127
$13
304
#MA
}REL
Madera ↔
Madera
Unknown >
Dispersed
NJR
N$R
NQF
#FP
#MA
}CLO
}DSP
}REL
}OSO
}REL
and China.1555 Since little more than this is known, those other locations are not listed
separately in this report.
Conesys, Aero Electrical subsidiary, furloughed employees producing connectors
because the company shifted the work to Mexico. The company estimated to the
Department of Labor that 75 jobs would be affected. The DOL indicated that furloughs may
have begun as early as Feb. 11, 2011. The company was at seven addresses in Torrance:
548 Amapola Ave., 508 Amapola Ave., 518 Amapola Ave., 568 Amapola Ave., 2280 208th
St., 19800 Van Ness Ave. and 2225 Dominguez Way.1556
ThreeBond International, Inc., a Japanese industrial sealant and adhesives company,
furloughed employees in Torrance, Carson and Lomita in August and September; the
reason given in each WARN notice was “closure.”1557 None of the locations are shown in
the company’s list of active offices and production facilities.1558 Since little more than this is
known, those other locations are not listed separately in this report.
Ball Corp. closed its Torrance plant, ending the facility’s 45-year history of aluminum can
manufacturing. One of the production lines was relocated to a Ball plant in Canada; some
workers transferred to a plant in Fort Worth, the location of a new Ball production line. A
company spokesman said the closure was a “business decision, driven by economics,”
adding that “the cost of doing business in California is expensive. It is a factor when we
need to realign our manufacturing footprint to meet changing customer demand.” Ball
expected to record a $12.4 million after-tax charge this year in connection with the
Torrance closure, which is expected to be cash-flow positive upon settlement of all
closure-related costs and disposition of all assets -- a significant cost savings to the
company. Ball is the largest maker of specialty beverage cans in North America.1559 A
WARN notice said 131 employees would be furloughed.1560
Ball Corp. – See the company’s 2011 entry for Fort Worth for additional context.
Goodridge USA furloughed employees producing fluid transfer systems because it shifted
the work to Mexico. The Dept. of Labor indicates that furloughs may have begun as early
as Sept. 18, 2011.1561 It’s likely the location is Tijuana, where the company has a facility.
American Honda Motor Co., Inc., Information Systems Division (ISD), furloughed
employees and on-site leased workers involved in supplying information technology
services “because the firm has acquired from a foreign country services like or directly
competitive with services supplied by the workers which contributed importantly to worker
group separations at ISD.” The country is India. The Dept. of Labor failed to specify what
community in that country, but did indicate that furloughs may have begun May 1,
2011.1562
Dunn-Edwards will consolidate plants in Tempe, Arizona and Vernon, Calif., into one
state-of-the-art manufacturing facility in Phoenix, which will be fully automated and
designed to grow.1563 The company has committed $13 million to the new 304,000-sq. ft.
facility, where it will create about 100 jobs.1564 A WARN notice shows 127 furloughs in
Vernon on March 31, 2011, listing the action as a “closure.”1565 The company was founded
in the Los Angeles area in 1925.
Z Foods, the dried-fruit processor, closed its plant after the company failed to find a buyer
to take over the business. The company employed about 100 people year-round, with the
213
Marin ↔
Corte Madera
Arizona >
Tolleson
Marin ↔
Greenbrae
104
$7.1
142
#LP
#MA
}CLO
}REL
Pennsylvania >
Exton
30
N$R
20
#GR
#MA
#PL
#RD
}CDO
Marin ↔
Larkspur
Texas > Austin
10
N$R
2
#HQ
#PB
}CLO
}REL
Marin ↔ San
Rafael
Monterey ↔
Pacific Grove
Monterey ↔
Salinas
See comment at
right.
Virginia > Falls
Church
North Carolina >
Charlotte
NJR
N$R
NQF
NJR
N$R
NQF
#HQ
}CLO
}REL
75
N$R
NQF
#HQ
}REL
Monterey ↔
Salinas
Florida > Miami
NJR
N$R
NQF
#HQ
}CLO
}REL
}OSO
}REL
seasonal work force peaking at 400. The plant dried and processed cherries, apricots,
peaches, plums, nectarines and others items, primarily as ingredients for the baking and
food-service industries.1566 Z Foods vacated its 18.81-acre processing facility in favor of a
new, unspecified location on the East Coast.1567 Note: Z Foods is or has been a unit of
Zoria Farms of San Jose.
New WinCup Holdings Inc., a manufacturer of biodegradable paper cups, will close its
plant and offices in Corte Madera and consolidate near Phoenix. WinCup will lay off 104
workers in Corte Madera and 15 in Richmond, saying, “We intend to remove all or
substantially all of the industrial operations in both locations. The entire manufacturing
operation ... at the Corte Madera facility and the Richmond warehouse will be permanently
shut down.”1568 It appears that the company prepared for this event by investing $7.1
million to add 142,000 sq. ft. to its existing 180,000 sq. ft. facility in Tolleson.1569
Ecospan – the biomaterial technology company manufactures bioplastic products and
packaging. It makes products from 100% renewable, sustainable, and fully compostable
raw materials that contribute to a smaller carbon footprint than traditional plastics. Ecospan
outsources most of its manufacturing activities overseas to Malaysia and Thailand. But,
increasingly concerned with the theft of its intellectual property abroad, the company
decided to establish a manufacturing facility in the U.S. and selected Exton. 1570 Eventually
the 20,000 sq. ft. building will house research, design, development, testing,
manufacturing, and sales staff, initially employing 12, growing to 30 by the end of next
year.”1571 [Along with the reason cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in
Pennsylvania leading to a reduction in expenses.]
Xeris Pharmaceuticals Inc., an early-stage biopharmaceutical company developing
patient-friendly injectables to treat endocrine and metabolic diseases, is moving its
headquarters to a 2,000 sq. ft. Austin office. COO Yash Sabharwal said the company was
drawn to its entrepreneurial culture and its resources in the life sciences and biotech fields
along with Texas being the “business-friendliest state in the country.”1572 Dr. John Kinzell,
CEO of Xeris, said, “In the end, I came to believe that Austin had the quality of life, cost of
living and growing biotech cluster that would allow our company to attract C-suite
executives and scientists from both coasts.”1573
Health Net, Inc. See the 2011 Oakland entry for this company for more information about
this event.
Tire Retread & Repair Information Bureau – The non-profit trade organization moved its
headquarters to Virginia in February 2011.1574
Fresh Express will move its headquarters and most employees, who were making an
annual salary of more than $106,000, to North Carolina. Fresh Express was bought by
Chiquita in 2005 and the move is part of a company-wide consolidation. The move should
be completed by the end of 2012.1575 It appears that 75 Fresh Express employees
received notices related to the HQ relocation.1576 The company will continue to have a
Salinas presence.
Feel Golf Co. (now Intelligent Living, Inc.), upon completion of the acquisition of Pro
Line Sports, Inc., of Florida, will relocate its headquarters to that state. Among the benefits
of the move, CEO Lee Miller said that Florida “has tax advantages over California for the
214
Napa ↔
Napa
Montana >
Bozeman
NJR
N$R
NQF
#HQ
}CLO
}REL
Nevada
County ↔
Grass Valley
Canada >
Vancouver
NJR
N$R
NQF
#SB
}OSO
}REL
Nevada
County ↔
Grass Valley
Nevada
County ↔
Truckee
Chile > Santiago
NJR
N$R
NQF
15
N$R
NQF
#HQ
}CLO
}REL
Nevada
County ↔
Truckee
Florida >
Jacksonville
NJR
N$R
NQF
#HQ
}REL
Orange ↔
Anaheim
Foreign Nation >
Unknown
NJR
N$R
NQF
#PA
}OSO
}REL
Orange ↔
Brea
Alabama >
Scottsboro
NJR
N$R
NQF
#HQ
#MA
}REL
Orange ↔
Buena Park
Arkansas > West
Memphis
40
$18
500
#MA
}CDO
Florida >
Fernandina
Beach
}OSO
}REL
company and employees.”1577 Update: In 2013, Feel Golf Co., Inc. changed its name to
Intelligent Living Inc. and its domicile from California to Nevada.1578
Sitka Gear, in moving to Bozeman, the company cited the community’s “forward-thinking
and outdoor-centric culture” as reasons why it is a “natural home for Sitka .... This move
will also enable us to better test and develop game-changing gear, while thriving in
Montana’s creative, outdoor culture.”1579 [Along with the reasons cited, it’s conceivable that
the location decision was influenced by lower business and employee costs, taxes and
fewer regulations in Montana leading to a reduction in expenses.]
Vector Engineering, Inc., d/b/a Ausenco Vector, furloughed employees in its finance and
accounting team accounting operations for U.S. operations moved to Vancouver, Canada
and financial reporting functions were shifted to Santiago, Chile. The Dept. of Labor
indicated that furloughs may have begun as early as Feb. 28, 2011.1580
Vector Engineering, Inc. – See the 2011 Vancouver entry for this company for more
information about this event.
The Denali Group, which helps clients reduce procurement costs, relocated its
headquarters. The high-growth company has had revenue gains averaging 30% annually
since its founding in 1996. The company also has offices in Columbus, Ohio, Houston,
Seattle, Pittsburgh and Pune, India.1581
Sourcing Interest Group (SIG) – This is a membership organization to bring executives
of Fortune 500 and Global 1000 companies together with service providers and advisory
firms. In moving headquarters to Florida, CEO Dawn Evans said, “The level of
professionalism of the resumes that have come in has been so pleasant. [Jacksonville is]
so Southern and polite and friendly. We are very pleased with our decision.” An office in
Truckee will remain open.1582 [Along with the reasons cited, it’s conceivable that the
location decision was influenced by lower business and employee costs, taxes and fewer
regulations in Florida leading to a reduction in expenses.]
YP Western Directory LLC, Anaheim, California Division, Publishing Operations Group,
furloughed employees and on-site leased workers providing services related to publishing
operations because the company shifted the work to a foreign country. The Dept. of Labor
failed to specify the name of that country, but did indicate that furloughs may have begun
on Dec. 12, 2011.1583
Witt Heat Transfer Products Group (HTPG) is moving headquarters and manufacturing
to Alabama, but will keep an office in Brea.1584 Witt HTPG was founded as A.H.Witt Inc. in
Gardena, Calif., in 1948.
Awesome Products Inc., a producer of laundry detergent and other cleaning products,
cut the ribbon on its new 500,000 sq. ft. manufacturing plant. Construction was completed
within six months of the official announcement. Now, the company operates more than 1
million square feet of production and distribution space in Arkansas (the other 500,000 sq.
ft. occurred prior to the time frame of this report and therefore is excluded from this report),
has created more than 120 jobs (only 40 is cited in this report) and invested more than $40
million (only $18 million is relevant to this report). President L.D. Hardas said, “This region
is perfect – an available skilled workforce, proximity to key distribution points, quality
infrastructure and collaboration among private and public entities.” He attributes the
215
Orange ↔
Costa Mesa
Nevada > Las
Vegas
Orange ↔
Costa Mesa
Kentucky >
Louisville
Orange ↔
Foothill
Ranch
Mexico > Tijuana
Orange ↔
Foothill
Ranch
Orange ↔
Foothill
Ranch
New York >
Plattsburgh
Orange ↔
Fullerton
Texas > Fort
Worth
Orange ↔
Garden
Grove
Indiana >
Indianapolis
Colorado >
Colorado Springs
NJR
N$R
NQF
#CS
#SB
}CLO
}REL
41
$2.3
8
#CS
#HQ
}REL
109
N$R
NQF
#MA
#PB
}OSO
}REL
50
N$R
NQF
#DO
#EN
#IT
}REL
210
$45
137
#AE
#AU
#DF
#EH
#EN
#PB
}CDO
58
N$R
NQF
#MA
}CLO
}REL
NJR
N$R
NQF
#HQ
#PB
}REL
company’s growth to the business-friendly practices of local government.1585 Breakout
figures for how many of the jobs and how much of the capital investment are attributable to
each year are not easily determined or more specific figures would be assigned to
individual years. [Along with the reasons cited, it’s conceivable that the location decision
was influenced by lower business and employee costs, taxes and fewer regulations in
Arkansas leading to a reduction in expenses.]
Aquatech Society of Pool Building and Retailing Professionals, after many years
(decades) in the Golden State, one of the industry’s leading buying groups, is leaving for
Nevada. Rob Morgan, an Aquatech board member, said, “It was almost completely a
financial issue. Everyone loves Southern California, but it didn’t make sense to keep
operating a place that had become so expensive. The taxes, regulations and cost of living
made it prudent to look for other places to do business that would benefit our members.”
Board members were unanimous in their support for the new location, he added. Officials
purchased a new building in the Summerland area on the west side of Las Vegas, which
will have an on-site educational space, something the California building lacked. Founded
in 1962, Aquatech is an association of about 250 design professionals and retail
operators.1586
Dharma Construction Services, which builds senior-living facilities, is moving its
headquarters to Kentucky, creating about 41 jobs and $2.5 million in annual payroll after
making a $2.3 million capital investment in an 8,000-sq. ft. building. A regional office will
remain in California.1587
Ossur Americas Inc. – A California employer for more than a decade, it furloughed 109
employees and moved medical products manufacturing to a Maquiladora operation in
Mexico. Its regional headquarters remains in Foothill Ranch.1588 By next year, a savings of
$4 million USD is expected to materialize.1589
Fujitsu Frontech North America Inc. – The IT-based business solutions provider will
move its point-of-sale manufacturing and integration operations from its California HQ to
Plattsburgh.1590
Bal Seal Engineering Inc. – The company has been in Southern California for 53 years
will build a manufacturing plant in a location with lower personal and corporate income tax
rates, cheaper workers comp. insurance, lower electricity rates and lower property tax
rates.1591 It will invest $45 Million in a 137,000-sq. ft. plant and add 210 jobs. It’s a privately
held provider of custom-engineered, high-performance electrical components for Fortune
500 companies in medical, aerospace, defense, energy, automotive and other
industries.1592 The event is expected to produce an annual $112 million economic impact
benefit to the Colorado Springs area.1593
Kairak – The manufacturer of refrigeration systems closed its manufacturing plant and
moved work to Texas. Kairak has been in business 45 years supplying no-frost
commercial refrigeration units to many restaurants, hotels, amusement parks and retail
outlets.1594
HYCOR Biomedical, Inc., a manufacturer of diagnostic products for clinical laboratories,
will relocate its headquarters.1595 HYCOR is a global supplier of high-quality in vitro
diagnostics products. Through a series of acquisitions since its founding in 1981, the
company has expanded its presence into allergy and autoimmune products.1596
216
Orange ↔
Garden
Grove
South Carolina >
Piedmont
45
$1.65
50
Orange ↔
Huntingdon
Beach
Orange ↔
Huntington
Beach
Orange ↔
Irvine
See comment at
right.
NJR
N$R
NQF
35
N$R
NQF
#GR
}REL
Virginia > Reston
NJR
N$R
NQF
#EN
#HQ
#IT
}REL
Orange ↔
Irvine
India > Unknown
92
N$R
NQF
#BF
#SB
}OSO
}REL
Orange ↔
Irvine
Mexico >
Unknown
75
N$R
NQF
#MA
#PB
}OSO
}REL
Washington >
Camas
#HQ
#MA
}CLO
}REL
}OSO
}REL
}OSO
}REL
Orange ↔
Irvine
Orange ↔
Irvine
Asia > Unknown
75
N$R
NQF
Georgia > Austell
40
N$R
NQF
Orange ↔
Irvine
Texas > Dallas
350
$1.3
45,000
}OSO
}REL
#BF
}REL
}REL
Allegro Industries will relocate manufacturing to a 50,000 sq. ft. facility in South Carolina.
It will begin hiring in 2011 for assemblers, packagers, technicians and office staff. The
business has been in California for 24 years.1597 The safety-products company will put
forward an initial capital investment of $1.65 million, which will create 45 new jobs. 1598 The
plant will also be the new headquarters.1599
Health Net, Inc. See the 2011 Oakland entry for this company for more information about
this event.
Sharp Solar Energy Solutions Group – The solar products company will relocate from
Sharp’s western regional office to its campus in Washington State. The company was not
recruited by economic development officials to make the move. 1600
GovPlace, an enterprise IT solutions provider, moved its HQ to Reston although the date
is unclear. A search did find a news release with Reston in the dateline issued in June
2011, which also refers to GovPlace as a “Reston-based solution provider”1601 and later
announcements explicitly state that the company is HQ’d in Reston. Hence, it is assumed
that the event occurred in 2011. An office remained in Irvine, but by 2014 references to
that location disappeared from the company’s website.
Wells Fargo. Several notices reported that jobs in its Irvine mortgage lending operations
would be cut – 92 jobs on April 1, 2011, 53 jobs on April 9, 2011, and 53 jobs on May 22,
2011. (The last two appear to be duplicate entries because one report indicated that the
bank will cut 145 jobs, mostly in Irvine and some possibly in nearby Costa Mesa.1602) Also
during 2011, Irvine lending operations shifted support jobs to India.1603 The number of jobs
transferred to India are unknown.
SenoRX, d/b/a/ Bard Biopsy Systems, furloughed employees and on-site leased
employees producing breast biopsy devices and equipment because the company shifted
the work to Mexico and Asia. The California Employment Development Department
reported that 150 jobs were affected. The Dept. of Labor failed to specify what community
in Mexico or which Asian country, but did indicate that furloughs may have begun on Feb.
16, 2011.1604 Its unclear how many of the 150 jobs went to which non-U.S. location; hence,
they are divided evenly for the purposes of this report.
SenoRX – See the 2011 Mexico entry for this company for more information about this
event.
Hyundai Capital America Inc. – The Korean company is transferring 71 jobs to Georgia.
The financing unit assists Hyundai and Kia dealers and vehicle buyers. Some Irvine
workers have applied for jobs elsewhere, with a spokesperson saying, “For some people,
the opportunity to move to an area of the country where housing costs are lower could be
a good thing.”1605 It’s fair to also report that Hyundai will maintain a presence in Irvine and
is planning to expand its HQ in Fountain Valley, Calif.
Hyundai Capital America Inc. – The automotive finance firm is expanding its U.S.
operations with a new 45,000-sq. ft. office in Plano, which will start with 230 workers and
expand to almost 400. [In this entry, the number has been reduced to 350 to eliminate
possible double-counting of job transfers listed in the Austell, Georgia entry.] Hyundai
selected a building that best met its “business needs, including an above market parking
ratio, which is important for our employees.” Hyundai Capital serves more than 1,500
217
Orange ↔
Irvine
Washington >
Vancouver
60
N$R
26
#MA
}REL
Orange ↔
Irvine
Michigan >
Grand Rapids
NJR
N$R
NQF
#BF
#HQ
}CLO
}REL
Orange ↔
Irvine
Arizona >
Scottsdale
300
N$R
58
#HQ
#SB
}REL
Orange ↔
Irvine
Texas >
Lewisville
60
N$R
16.4
#AU
#HQ
}CLO
}REL
Orange ↔
Irvine
Texas > Houston
77
N$R
NQF
#HC
#HQ
}CLO
}REL
Orange ↔
Irvine
Texas > Dallas
100
N$R
33
#PB
#HQ
}REL
Orange ↔
Laguna Hills
Massachusetts >
Burlington
NJR
N$R
NQF
#MA
#PB
}CLO
}REL
Hyundai and Kia dealerships across the country and had about 500 employees before the
Plano expansion.1606 About $1.3 million was invested in the building.1607
Star Trac – The fitness equipment maker will lay off up to 60 people and move the jobs to
StairMaster, a sister company, in Washington state; other jobs will remain in Irvine. The
transition should be completed by the end of September.1608 The company expects to add
the 60 jobs in the new location in a 26,000-square-foot space.1609 [Along with efficiencies
resulting from the consolidation, it’s conceivable that the location decision was influenced
by lower business and employee costs, taxes and fewer regulations leading to a reduction
in expenses.]
Blackford Capital LLC – In moving to Michigan, Founder Martin Stein said he thinks the
state has some “strong manufacturing opportunities [we] and wanted to be close to future
investments that we would be making.” Also, Stein, a Grand Rapids native, said his
hometown is “a great place to raise a family.”1610 Ninety-five percent of the company’s
investments are in manufacturing, and while it has investments across the U.S., there’s an
abundance of manufacturing in the Midwest.1611 Blackford reviews roughly 2,000
transactions annually with the goal of closing four to six deals, and has closed nearly 20
transactions in the past five years. The firm’s investment criteria include mature, profitable
businesses with revenues between $20 million and $100 million, and earnings between $2
million and $10 million, with owners looking to retire or exit from the business. 1612 “We had
300 applicants for four internships this summer,” he said. “Do we feel the talent is here?
Absolutely.” He said that Southern California has a lot of compelling attributes, but leaving
there “didn’t bother me at all.”1613
AT Security Service – The company moved its headquarters to Arizona with plans to fill
300 jobs in the first three years and will make a $5.1 million capital investment in a 58,000
sq. ft. facility. The jobs will pay an average of $50,000. “It’s going to cost us a lot less to
operate in Arizona,” said Jacques Davis, AT Security president and CEO. The company
has about 500 employees in 23 offices nationwide.1614
Caliber Collision Centers relocated its headquarters because of Dallas-Fort Worth’s
affordable metropolitan area, which will support the company’s growth throughout the
United States. CEO Steve Grimshaw said factors included the “business-friendly
environment and large, diversified workforce” found in Texas.1615
Claim Jumper Restaurants – After the restaurant chain was acquired by Landry’s
Restaurants, the headquarters was moved to Houston. Claim Jumper opened its first
location in Los Alamitos, Calif. in 1977.1616 [Along with efficiencies resulting from the
acquisition, it’s conceivable that the location decision was influenced by lower business
and employee costs, taxes and fewer regulations in Texas leading to a reduction in
expenses.]
AccentCare Inc., a home healthcare provider, moved its headquarters to Texas and will
occupy 33,000 sq. ft. of space in Dallas on May 1.1617 The company is recruiting people to
fill accounting, finance, payroll, human resources, information technologies and other
administrative positions. The company has branch offices in 10 states.1618
LeMaitre Vascular Inc., a medical devices firm, closed its manufacturing facility in Laguna
Hills and transferred production to Burlington. LeMaitre acquired the factory when it bought
LifeSpan Vascular Graft in 2010.1619
218
Orange ↔
Laguna
Niguel
Massachusetts >
Cambridge
150
N$R
NQF
#PB
}REL
Orange ↔
Laguna
Niguel
Orange ↔
Laguna
Niguel
Unknown >
Dispersed
170
N$R
NQF
}CLO
}DSP
}REL
Unknown >
Unknown
74
N$R
NQF
#DF
#DO
#EN
#SO
#DF
#EN
#IT
Orange ↔
Lake Forest
Texas > Dallas
NJR
N$R
NQF
#CS
#EN
#HQ
}REL
Orange ↔
Los Alamitos
Texas > Corpus
Christi
4
N$R
13
#HQ
#MA
}CLO
}REL
Orange ↔
San
Clemente
South Dakota >
Sioux Falls
75
N$R
43.5
#CH
#HQ
#MA
}CLO
}REL
}CLO
}DSP
Inspiration Biopharmaceuticals Inc., a seven-year-old California start-up working to
bring hemophilia drugs to market, relocated to Cambridge. It plans to have 150 employees
by sometime in 2013. CEO John P. Butler said moving it to Cambridge will help attract
talented scientists and salespeople to help build a “fully integrated company.” Another
driver of the move to the East Coast was putting Inspiration closer to Ipsen Group, a
French specialty pharmaceutical company that owns a stake in the company. 1620 [Along
with the reasons cited, it’s conceivable that the location decision was influenced by lower
business and employee costs and fewer regulations leading to a reduction in expenses.]
CGI Federal Inc. – A filing with the state indicated that the company closed the facility,
ending 170 jobs. It formerly was known as Stanley Associates, Inc.1621 The company’s
website fails to show a facility in Laguna Niguel.1622
Altron, Inc. – The company closed in Laguna Niguel and furloughed 74 people.1623 News
releases on the company’s website used to reflect that it had an office in Laguna Niguel,
but now shows offices only in South Carolina Virginia and New Hampshire.1624 No other
information about the closure appears to be posted online.
Primoris Services Corp., a construction and engineering company, will relocate its
corporate headquarters to Dallas. Its 2011 announcement said, “The move will involve the
company’s CEO, CFO, EVP of Corporate Development and certain other senior
executives and staff members.”1625 Apparently some jobs remained in Lake Forest.
EDM Laboratories Inc. – The supplier of precision metal parts for NASA and high-tech
companies, founded in Garden Grove, Calif., in 1969, moved its headquarters and
manufacturing to Texas. Owner Mike St. Amand said, “My company truck registration cost
$600 a year (in California) and $85 in Texas. My car insurance is less here. Gas is 50cents-a-gallon cheaper. Electricity cost me $3,000 a month in California; last month
running the air conditioning full time [in Corpus Christi] it cost $800.” Also, he bought a
building in Corpus Christi for EMD Labs that is twice as large, 13,000 sq. ft., for a fourth of
the price he paid for the Los Alamitos building.1626
Legacy Electronics – The designer and maker of high-speed, high-density memory
modules, printed circuit boards and other computer products, is moving its headquarters
and manufacturing. CEO Jason Engle said, “California, unfortunately has become … a
more difficult place to do business, a more costly place to do business, especially for
manufacturers.... We compete globally and we can’t compete with California’s costs.” He
cited the cost of electricity, employee medical insurance and business property tax. “I don’t
think we’re alone in this assessment,” he said. “I was born and raised in California. I tried
very hard to keep the business in California ....We hired an outside research firm to
evaluate all the states and they narrowed the list down to 10, then we narrowed it to five
that met all of Legacy needs. I traveled to each one and met with local officials about
meeting our needs and cost savings. South Dakota was a winner on every aspect.”1627
The company found a 40,000-sq. ft. building that provides excellent manufacturing space,
layout and utilities for current and future production and expansion. “This site means we
can triple our manufacturing output in the near term,” said Engle. Legacy is hiring more
people in South Dakota so that the company can run a 24-hour production operation.
Another story said, “Though Engle reached out to California legislators, he received no
indication that the situation would improve.”1628 The headquarters is in Sioux Falls and
219
Orange ↔
San
Clemente
Orange ↔
San
Clemente
South Dakota >
Canton
NJR
N$R
NQF
Texas > Houston
NJR
N$R
NQF
#HC
#HQ
}CLO
}REL
Orange ↔
Santa Ana
Texas > Fort
Worth
NJR
N$R
NQF
#AE
#MA
}CDO
Orange ↔
Santa Ana
Ireland > Dublin
NJR
N$R
NQF
#BF
#SB
}OSO
}REL
Orange ↔
Tustin
Foreign Nation >
Unknown
NJR
N$R
NQF
#AU
#MA
}OSO
}REL
Riverside ↔
Corona
New Jersey >
Parsippany
NJR
N$R
148.7
#HQ
#PB
}REL
Riverside ↔
Lake Elsinore
Virginia > Buena
Vista
NJR
N$R
NQF
}REL
Riverside ↔
Murrieta
China > Xiamen
55
N$R
NQF
#DF
#EN
#MA
#MA
Riverside ↔
Palm Desert
Pennsylvania >
Pittsburgh
25
N$R
NQF
#EH
}REL
}CLO
}OSO
}REL
}REL
production is in Canton.1629 Update: “When we moved our company to South Dakota from
California in 2011, we knew to expect a better, friendlier business climate, but what we got
far exceeded our expectations,” said Engle. In 2015 it announced it’s expanding to 43,500
sq. ft. and is adding workers1630 In 2015 the company purchased the HQ and
manufacturing facilities it had been leasing, which further deepens their South Dakota
roots.1631
Legacy Electronics – See the 2011 Sioux Falls entry for this company for more
information about this event.
Bubba Gump Shrimp Co. – The restaurant chain has been acquired by Landry’s
Restaurants, which moved the headquarters to Houston.1632 [Along with efficiencies
resulting from the acquisition, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes and fewer regulations in Texas leading to a
reduction in expenses.]
Leading Edge Aviation Services – The aircraft paint and coatings company expanded
with a new wide-body hangar complex in Texas staffed with designers, craftsmen,
engineers and artisans. The facility will offer high-end manufacturing while temperature
and humidity controls provide an optimal decorative paint finishing environment.1633
DB Hedgeworks, LLC, subsidiary of Deutsche Bank, AG, furloughed employees and onsite leased workers providing financial services such as accounting and back office
services because the company shifted part of the work to Ireland. The Dept. of Labor
indicates that furloughs may have begun as early as Oct. 2, 2011.1634
SMC Corp. of America, a subsidiary of SMC Corp., furloughed employees and on-site
leased employees manufacturing valves and cylinders for the automotive industry because
the company shifted the work to China. The Dept. of Labor failed to specify what
community in that country, but did indicate that furloughs may have begun as early as
June 20, 2011.1635
Watson Pharmaceuticals Inc. will move corporate headquarters to a 148,700 sq. ft.
facility in New Jersey, combining operations for growing global generic and brand
pharmaceutical and biologics businesses.1636 The company changed its name to Actavis,
Inc. in early 2013.1637 [Along with efficiencies resulting from the consolidation, it’s
conceivable that the location decision was influenced by lower business and employee
costs and fewer regulations leading to a reduction in expenses.]
HDT Global – The company consolidated its Expeditionary Systems unit’s manufacturing
operations in Virginia.1638
Star Trac – The fitness equipment maker will close its Murrieta factory at the end of May
as it shifts manufacturing to China; 55 jobs will be cut.1639 Production was scheduled to
stop May 31, but the deadline may get extended by a few weeks; it’s expected that 90% of
the work will be shifted to China.1640
Heckmann Corp., a water-treatment company, has quickly grown into a shale-industry
player having only 30 people in the summer of 2010 to about 1,050 throughout the United
States by the end of 2011. The Pittsburgh Tribune-Review reported that “Heckmann Corp.
quietly relocated its headquarters here in June from Palm Desert, Calif., where it still
maintains a presence.”1641 [It’s conceivable that the location decision was influenced by
220
Riverside ↔
Palm Desert
Nevada >
Minden
NJR
N$R
NQF
#EN
#HQ
#IT
#SO
}REL
Riverside ↔
Palm Springs
Minnesota >
Plymouth
270
N$R
NQF
#EC
#PB
#MA
}CLO
}REL
Riverside ↔
Palm Springs
Illinois > Chicago
NJR
N$R
NQF
#HC
#HQ
}CLO
}REL
Riverside ↔
Riverside
Florida > Orlando
NJR
N$R
NQF
#HQ
#PB
}CLO
}REL
Sacramento
↔ Folsom
Texas > The
Woodlands
120
N$R
50
#HQ
#TP
}CLO
}REL
Sacramento
↔ Folsom
Missouri > Creve
Coeur
20
N$R
NQF
#SB
}CLO
}REL
lower business and employee costs, taxes and fewer regulations in Pennsylvania leading
to a reduction in expenses.]
Spare Backup, Inc. – The company, which operates as a software development and
service company for the personal computer (PC) and mobile device industry, left the
Coachella Valley for Minden, Nevada just across the state line from California.1642 In trying
to determine more, it was discovered that the provider of smartphone and tablet protective
solutions, and backup services, is in Minden in 2014.1643 Later, the company indicated in
an earnings report that “our cost cutting and streamlining efforts resulted in significant
overall improvements in our income and cash flow statements.”1644
CareFusion will close its ventilator manufacturing factory in Palm Springs, eliminating 270
jobs, and shift production of its five ventilator models to the company’s plant in Plymouth,
near Minneapolis. “Being able to manufacture all of our ventilators in one location will
improve efficiencies and help us lower our operating costs,” said a spokesperson. The site
has been a major center for the production of mechanical breathing devices for
decades.1645 The company makes ventilators used to treat patients suffering from asthma
and other respiratory conditions. The products are part of the company’s critical care
technologies segment.1646 [It’s conceivable that the location decision was influenced by
lower business and employee costs and fewer regulations leading to a possible reduction
in expenses.]
Native Foods Café – The vegan restaurant enterprise moved its headquarters as part of a
plan by new owners to expand in other parts of the nation.1647 [It’s conceivable that the
location decision was influenced by lower business and employee costs and fewer
regulations leading to a reduction in expenses.]
Ziehm Imaging, Inc., a supplier in the U.S. surgical mobile C-arm industry, relocated its
Americas headquarters at the same time it completed its new Imaging Parts Distribution
Center, marking the end of the transition of Ziehm’s Americas operations to Florida from
California. The company has 40 years of experience in R&D and production of mobile Carm imaging systems.1648
Waste Connections, a solid waste services company, in planning an out-of-California
headquarters move, cited a tough “business climate” and a “dysfunctional” state
Legislature. “This is the worst state in the country to do business in,” said CEO Ron
Mittelstaedt. “There doesn’t seem be any improvement on the horizon.”1649 He also said,
“For good or for bad, we see how 30 other states treat businesses, and California is so far
below 30 you can’t even see 30 from here,” adding that the “California legislature is bought
and paid for by labor interests and environmental groups.” A California native, he said he
would like to keep his company here, and he personally wants to stay in the state. 1650 The
move began in January 2012.1651 One report indicated that the company could pay up to
$6 million to get out of its Sacramento lease.1652 The company leased 50,000 sq. ft. in The
Woodlands.1653 It was the Sacramento area’s largest publicly traded company at the time.
First Banks Inc. closed its back-office operation in Folsom and transferred the work to its
suburban headquarters near St. Louis. It has a loan processing division in St. Louis, so it
doesn’t need the remote location – or its operating costs, according to a company
spokesperson.1654
221
Sacramento
↔ Folsom
Foreign Nation >
Unknown
78
N$R
NQF
}OSO
}REL
Sacramento
↔ Rancho
Cordova
Sacramento
↔
Sacramento
See comment at
right.
NJR
N$R
NQF
}OSO
}REL
North Carolina >
Statesville
350
N$R
NQF
#MA
}CLO
}REL
Sacramento
↔
Sacramento
Foreign Nation >
Unknown
NJR
N$R
NQF
#PB
#MA
}OSO
}REL
NJR
N$R
NQF
#DO
#SB
}OSO
}REL
Maryland >
Centreville
NJR
N$R
NQF
#GR
}REL
San
Bernardino ↔
Chino
Florida >
Tallahassee
200
N$R
NQF
#EN
#GR
#HQ
#MA
#RD
}CLO
}REL
San
Bernardino ↔
Fontana
Georgia >
Adairsville
40
N$R
NQF
#MA
}CDO
Sacramento
↔
Sacramento
Sacramento
↔
Sacramento
Microsemi Corp., RFIS Division, furloughed employees and on-site leased workers
producing semiconductor parts because “the workers’ firm has shifted to a foreign country
production of semiconductor parts like or directly competitive with those produced by the
workers which contributed importantly to worker group separations at Microsemi.” The
Dept. of Labor failed to specify what country, but did indicate that furloughs may have
begun as early as Aug. 3, 2011; the estimated job loss was 100.1655 However, a WARN
Notice showed 78 furloughs in Folsom the following year.1656 It is typical for there to be a
delay from an offshoring announcement and the furloughs. This report will limit the count
to 78.
Health Net, Inc. See the 2011 Oakland entry for this company for more information about
this event.
J.C. Penney Co. will furlough employees at a manufacturing operation, at which workers
cut and sew drapes and make other window coverings. The plant has operated from
McClellan Business Park for three years, and before that in Roseville since at least 1991.
The retailer chose to close the North Highlands operation and keep operating its only other
custom decorating operation in North Carolina. It’s a 140,000-sq. ft. facility that will
close.1657
The Aftermarket Group, TAG (West) Division, a subsidiary of Invacare Corp., furloughed
employees producing products for wheelchairs because the company shifted the work to a
foreign country. The Dept. of Labor failed to specify what country, but did indicate that
furloughs may have begun as early as Jan. 30, 2011.1658
Comcast Cable – See the 2011 entry for Sandy, Utah for this company for more
information about this event.
Green Trail Energy – “Everything is difficult to do in California.” CEO Dennis Wingo said.
“When you try to rent property, the different requirements, the unemployment
compensation. We knew if we were going to expand we either had to hire a bunch of
robots who wouldn’t cost workman’s comp or move operations out of state.”1659 The
company, which offers a “personal wind turbine,” moved to Maryland. Now under the name
Xzeres, it appears to be HQ’d in Wilsonville, Oregon.
Bing Energy has hydrogen-powered fuel-cell innovations that will lead to power
generation that is lower in cost, more efficient and environmentally cleaner. It will relocate
its headquarters and fuel-cell manufacturing. Bing CFO Dean Minardi said the “tipping
point” in his decision to pick the Sunshine State over California, Illinois and Massachusetts
was Florida’s pro-employer laws and its move to phase out the corporate income tax.
Minardi said of eliminating the tax, “It’s huge. The more income a company can keep the
more people it can hire.”1660 He also said, “I just can’t imagine any corporation in their right
mind would decide to set up in California today.”1661 By 2013, the company stated that it’s
on track to add about 200 workers by 2017, including mechanical and electrical engineers
along with back office support staff.1662
Vista Metals – Adairsville has new firms moving in, including from California, which Mayor
Evan King “laughingly likened to a foreign country.” Vista Metals Inc. of Fontana has hired
40 people for the new plant and is looking to grow. The company’s specialty aluminum
222
San
Bernardino ↔
Redlands
Ohio > Dayton
NJR
N$R
NQF
#AE
#EC
#SB
}CDO
San
Bernardino ↔
San
Bernardino
Texas > Austin
150
N$R
75
#FP
#MA
}REL
San Diego ↔
Carlsbad
Texas > Austin
NJR
N$R
NQF
#EN
#GA
#RD
}CDO
San Diego ↔
Carlsbad
Unknown >
Dispersed
30
N$R
NQF
#AU
#GR
}CLO
}DSP
San Diego ↔
Poway
Virginia >
Chantilly
5
N$R
NQF
#HQ
}REL
San Diego ↔
San Diego
Texas >
Lewisville
240
N$R
NQF
#BF
#SB
}CLO
}REL
San Diego ↔
San Diego
Arizona >
Scottsdale
NJR
N$R
NQF
}REL
products are used in the aerospace, defense and automotive industries.1663 The paper
reported that Vista Metals began construction of its new plant in January.1664
Advatech Pacific, Inc., an aerospace, electronics and communications company, opened
its Advanced Electronics & Communications Product Office in Dayton. With the new
facility, the company is better positioned to offer an ever increasing level of customer
service and productivity to its international and domestic customers.1665
Bean Brand Foods – The maker of Beanitos Bean Chips will move manufacturing to
Austin, adding at least 150 jobs to Central Texas in the next two to three years. The
company’s chips are sold in 5,300 stores in the U.S. and Canada and has outgrown the
California facility, which it leases.1666 [It’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Texas
leading to a reduction in expenses.]
Razer Inc. – In opening the Razer Austin Technical Research Center, the company said
the facility “will bring together some of the most talented technical researchers and
designers in the world” in Austin, “a hub of video gaming and technology development,
with a division of the company that will focus on creating new technologies to change the
future of gaming and consumer electronics. ‘It really made sense to develop a technical
research center in the heart of what people are calling the Silicon Hills,’ said Min-Liang
Tan, CEO and Creative Director, Razer.... ‘We intend to bring on only the best and most
ambitious team members to help make the new research center a place where dreams
and new technologies come true.’... [the new center] will include a technology lab where
engineers and developers will create new concept vehicles as well as technology demos
to help stimulate the market for ground-breaking technologies and ideas. Razer intends to
have the lab serve as an incubator of discovery, allowing thoughts, ideas, and brilliance to
come together. The center will also serve as a platform for exploring the broader Human
Interface Design field and developing cutting edge input designs that provide greater
gaming immersion and performance.”1667 [It’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Texas
leading to a reduction in expenses.]
Aptera Motors, Inc. – The electric-vehicle company closed and 30 people were
furloughed. Note: Had the company received $150 million in DOE low-interest loans, it
would have placed operations not in San Diego, but instead would have revamped an old
GM plant in Moraine, Ohio, where it would have hired 1,400 workers.1668 This event isn’t
attributed to Ohio in this report since the event didn’t occur.
Decision Sciences International Corp. – The company, which supplies a high-tech,
cutting-edge cargo screening system, moved the headquarters to Virginia while keeping a
development laboratory in California.1669
Santander Consumer USA Inc. – A WARN notice said that a closure in San Diego
occurred and that jobs 240 jobs were eliminated on March 15, 2011.1670 That appears to
be an outgrowth of Santander’s purchase of HSBC Bank’s auto loan servicing operations
including its San Diego facility. The majority of the employees were offered opportunities to
transfer to the new owner.1671
IDM Technologies Group – See the commentary at the Scottsdale entry for more
information regarding this event.1672
223
San Diego ↔
San Diego
San Diego ↔
San Diego
See comment at
right.
North Carolina >
Raleigh
NJR
N$R
NQF
325
N$R
180
San Diego ↔
San Diego
San Diego ↔
San Diego
Massachusetts >
Westin
Texas > Austin
NJR
N$R
NQF
3
N$R
NQF
#DO
#HQ
#IT
}CLO
}REL
San Diego ↔
San Diego
Foreign Nation >
Unknown
50
N$R
NQF
#AE
#MA
}OSO
}REL
}OSO
}REL
#PB
#RD
}CLO
}REL
}REL
Health Net, Inc. See the 2011 Oakland entry for this company for more information about
this event.
Biogen Idec – Seven years ago about 1,000 people worked for the company in the San
Diego area. Now, the company closed its cancer therapy research facility and furloughed
327 workers, consolidating work in North Carolina and Massachusetts.1673 The company
stated, “The closing of our San Diego site is especially painful, as it is the home of the
original Idec Pharmaceuticals and has played a fundamental role in the success of the
company.”1674 The Raleigh News & Observer reported that Biogen Idec is expanding its
Research Triangle Park (RTP) campus and will build a 180,000 sq. ft. building, which will
give Biogen’s nearly 850 existing employees more room and could lead to additional
hiring. “We’re confident we will see job growth in RTP,’ although it’s too soon to provide
specific numbers,” said a company spokesperson.1675 The company dropped Idec from its
name and now focuses on neurology, immunology, and hematology. Today, Biogen is the
world’s largest maker of multiple sclerosis therapies.1676 [It’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in North Carolina leading to a reduction in expenses.]
Biogen Idec – See the 2011 entry for North Carolina for this company for more
information about this event.
Whoosh Traffic – The company helps others increase website traffic. Erica Douglass a
young tech entrepreneur, moved the HQ of her new enterprise to Austin.1677 The company
went from three employees to being purchased in 2014 for an undisclosed sum by
OwnLocal.1678 So, the company may have started small, but there was an opportunity cost
to California. Ms. Douglass said, “Dear California, I’m leaving you” and explained why:
“One thing I’ve struggled with about California for years is the government that is
notoriously business-unfriendly – with everything from high taxes on business earnings to
badgering businesses into more work” to satisfy the bureaucracy. Her examples:
“California decided that businesses grossing over $100,000 [a] year should have an
account to report quarterly on the sales tax customers pay for goods sold. But my
company sold services – not products – which aren’t taxed. When I closed the account (by
going into a local office and spending nearly an hour explaining my situation), they forced it
open again and sent me a nastygram explaining that I would owe fines for not filing the
quarterly reports. It takes time to fill out, even if you owe nothing. Also, the state charges a
10% income tax on all income over $47,055 in addition to an 8.25-9.25% sales tax
(depending on where you buy products). I paid enough in income tax for 2010 to California
alone to hire another worker for my business. I’d bet that I’m far more efficient at creating
jobs as a small business owner than the state is given the same amount of money. And a
really dumb law for small business owners is an annual $800 fee just to have a corporation
in California. Most states only charge you a few dollars annually. California’s is
exorbitant.”1679 (The blog entry was edited for brevity.)
Hamilton Sundstrand, Power Systems Division, Sheet Metal and APU Departments
furloughed employees and on-site leased workers producing gas turbine engines for use in
the aerospace industry because the company shifted the work to a foreign country. The
Dept. of Labor failed to specify what country, but did indicate that furloughs may have
begun as early as April 29, 2011.1680
224
San Diego ↔
San Diego
Texas > Cedar
Park
San Diego ↔
Vista
98
$5.5
NQF
#EN
#GR
#MA
}CDO
Colorado >
Colorado Springs
120
N$R
NQF
#HQ
#DN
}CLO
}REL
San Diego ↔
Vista
Minnesota >
Minneota
NJR
N$R
NQF
#AE
#HQ
#MA
}REL
San
Francisco ↔
San
Francisco
Nevada > Las
Vegas
35
N$R
NQF
#HQ
}REL
San
Francisco ↔
San
Francisco
San
Francisco ↔
San
Francisco
Colorado >
Centennial
100
N$R
16
#CP
#DO
#SB
}CDO
Washington >
Seattle
NJR
N$R
NQF
#EN
#IT
#SO
}CDO
San
Francisco ↔
Canada >
Unknown
NJR
N$R
NQF
#DO
}OSO
}REL
Fallbrook Technologies, Inc. provides transmissions applicable to bicycles, light electric
vehicles, automobiles, trucks and wind turbines. It will spend $5.5 million on a larger
corporate operations center in Texas and add at least 65 jobs. The facility will focus on
manufacturing, engineering development and testing. It has two Cedar Park facilities, one
a test lab and another for design engineers, both of which are “extremely crowded ...
We’re hiring people every month and we’re wondering where we’re going to put them.”1681
This represents an opportunity cost to California – the company established a presence in
Cedar Park in 2004 with 4 employees and this facility has grown to 100 jobs by November
2011.1682 [It’s conceivable that the location decision was influenced by lower business and
employee costs, taxes and fewer regulations leading to a reduction in expenses.]
Outreach Inc. – The marketing firm for Christian churches will move its headquarters to
Colorado bringing 50 employees and hiring about 70 more locally. The company said it
found it difficult to recruit people to San Diego because of the high cost of living – mostly
due to San Diego housing costs that are nearly double the national average. The for-profit
company gives away at least 10% of its profits every year to charity. 1683
Icon Door Systems – The overhead hydraulic door supplier for the agriculture, aviation
and commercial industries has moved. Icon still has a production unit in California, but the
Minneota location will be the main sales, design and manufacturing location. The company
plans to offer welding training courses to help develop a strong pool of employees. 1684
Media reports are unclear exactly what was moved, but the company’s website identifies
its “Sales & Manufacturing Headquarters” as being in Minneota while its Vista facility is
referred to as “Billing & West Coast Manufacturing.”1685
Zirtual Inc., a company that provides virtual assistant services worldwide, is opened a
new headquarters in Las Vegas.1686 News accounts are unclear as to when the event
occurred, but a registration with the California Secretary of State shows a Las Vegas HQ
address as of March 28, 2011.1687 The only employment number easily found is that by
early 2014 Zirtual had 35 full-time employees in Las Vegas.1688
Trulia Inc., the residential real estate website operator, will expand to Centennial where it
will eventually have 100 employees working in sales and service. The company leased
16,000 sq. ft. of space.1689
Jawbone (formerly known as Aliph), the Bluetooth headset and speaker maker, is
planning a new engineering office in Seattle. It’s unclear how many employees the
company plans to employ. “We are hiring generalist software engineers with a strong
systems and networking background across client and server – people who can work with
multiple technologies at multiple levels,” according to a job description. Total funding for
Jawbone now stands at about $100 million.1690 It appears that the company never issued a
formal announcement about the size of the office, or if it did it’s difficult to locate. [Along
with finding engineers, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Washington leading to a
reduction in expenses.]
Teachscape furloughed employees involved in customer support services for online
educational services because the company shifted such work to Canada. The Dept. of
225
San
Francisco
San
Francisco ↔
San
Francisco
Foreign Nation >
Unknown
80
N$R
NQF
#IT
#PB
}OSO
}REL
San
Francisco ↔
San
Francisco
Washington >
Seattle
20
N$R
12
#DO
#EN
#IT
#SO
}CDO
San
Francisco ↔
San
Francisco
San
Francisco ↔
San
Francisco
Washington >
Seattle
NJR
N$R
NQF
#EN
#IT
#SO
}CDO
Oregon >
Portland
20
N$R
NQF
#EN
#IT
#RD
#SO
}CDO
San
Francisco ↔
San
Francisco
San
Francisco ↔
San
Francisco
Nevada > Reno
25
N$R
NQF
#DO
}CDO
8
N$R
4.2
#HQ
#PA
#MA
}CLO
}REL
Nevada > Las
Vegas
Labor failed to specify what community in that country, but did indicate that furloughs may
have begun as early as Feb. 6, 2011.1691
McKesson Corp., Information Technology/SAP Support. The company, which distributes
pharmaceuticals and provides health information technology and medical supplies,
furloughed employees and on-site leased workers IT information technology for SAP
support because the company outsourced the work to a foreign country. The Dept. of
Labor failed to specify what country, but did indicate that furloughs may have begun as
early as April 12, 2011.1692
Salesforce.com Inc. – one of the world’s biggest providers of online-based customer
relationship management software – plans to hire as aggressively as possible to fill its new
11,000 sq. ft. space in Seattle. Participants at the opening event wouldn’t comment on the
particulars of Salesforce.com’s staff or just how aggressively it plans to grow in Seattle.1693
Another story pointed out that Salesforce “previously had a temporary office in Seattle,
adding that the “company isn’t disclosing the number of employees in the Seattle
development office.”1694 [Along with a search for talent, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Washington leading to a reduction in expenses.]
Splunk, a provider of operational intelligence software, will open a Seattle R&D office. Its
mission is to monitor, report and analyze live streaming IT data as well as terabytes of
historical data whether located on-site or in the cloud.1695
New Relic opened a 20-person office in Portland at the time it closed a $15 million venture
capital round to help meet demand for its cloud computing application performance tools.
In 2011 it was hiring engineers and designers to develop core software applications. 1696 [In
addition to the talent search, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes and fewer regulations in Oregon leading to a
reduction in expenses.]
Multifamily Technology Solutions, Inc. operates a national apartment and home rental
website, MyNewPlace.com. The company opened a national marketing and sales office in
Reno and plans to employ 25 in advertising and related positions.1697
Walls 360, a graphic arts company that makes life-sized wall art using high-tech printing
processes, liked Nevada’s lack of income tax, inexpensive real estate, low-cost shipping
and workforce – so it moved its HQ and production. Co-founder John Doffing said, “We
went to First Friday [arts festival] and checked things out. We’re an artist-centered
company, and there’s this incredible community of artists in this city.... We visited galleries
and started interviewing folks, and it pushed us over the edge as far as telling us this was
the place for us to go.” He ran startups in Silicon Valley for more than 15 years.1698 Within
eight months of its 2011 move, the company added six major distribution partners. “We’re
at a hypergrowth phase of the company,” said Doffing. When two more distribution deals
take effect, Walls 360 will hire more employees and ramp up from one to three shifts daily.
At capacity, the 4,200 sq. ft. facility can produce and ship $50 million in graphics per year.
“Revenues in 2012 will dramatically exceed funding, which is rare for a start-up,” Doffing
said. Also, the company started working with Clark County School District on several
226
NJR
N$R
NQF
#BF
#HQ
}CLO
}REL
45
N$R
NQF
#HQ
#PB
}UTN
Washington >
Seattle
3
N$R
NQF
#GA
#IT
#HQ
}UTN
San
Francisco ↔
San
Francisco
Nevada > Las
Vegas
NJR
N$R
5
#CL
#ET
#HC
#RW
}REL
San
Francisco ↔
San
Francisco
Texas > Houston
NJR
N$R
NQF
#GR
#HQ
}REL
San
Francisco ↔
San
Francisco
Washington >
Seattle
San
Francisco ↔
San
Francisco
Arizona >
Scottsdale
San
Francisco ↔
San
Francisco
initiatives, including turning children’s artwork into 8-foot-tall wall graphics. “The students
love it and the teachers love the materials, because they can be put on a wall, pulled off
and reused over and over again. Plus, they tie into the curriculum,” said the director of the
school-community partnership program.1699 [It’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Nevada
leading to a reduction in expenses.]
Skylight Capital, a “pledge fund” that operates like a private equity firm, moved its
headquarters from the Embarcadero Center in San Francisco to Seattle. (A report that it
relocated there from Texas was incorrect.) Thus far, Skylight has invested about $25
million in four deals. The investors are a mix of high-net-worth individuals and institutional
investors who believe they can build the business to three to four times its existing size in
five years.1700
IDM Technologies Group – The company makes tracking devices for medical
specimens. It considered moving its Seattle-area headquarters to the San Francisco or
San Diego metro areas, but selected metro Phoenix (their ultimate choice was Scottsdale).
It expects to expand to about 45 jobs by the end of 2012. Factors evaluated included the
growing cluster of technology and medically oriented companies and universities, a good
labor pool and affordable housing.1701 [Along with the reasons cited, it’s conceivable that
the location decision was influenced by lower business and employee costs, taxes and
fewer regulations in Arizona leading to a reduction in expenses.]
DistinctDev, Inc. – The Florida-based game developers considered moving their
headquarters to San Francisco but selected Seattle instead. “The choice to relocate to
Seattle was an easy one for us,” explained DistinctDev CEO Berkeley Malagon. “We
considered San Francisco, but if you’re a small gaming startup looking to grow your team,
you just can’t beat Seattle’s blend of a world-class gaming talent pool, affordable office
spaces, and amazing tax structure.”1702
Carlos Santana Business Enterprises – This report avoids listing celebrities like Tiger
Woods who leave California for tax reasons, but Carlos Santana is an exception because
he moved the operations for his music label and publishing company, his Maria restaurant
chain, his line of signature music instruments and his Carlos by Carlos Santana brand of
shoes, hats & purses. Among things he found attractive is that McCarran International
Airport has excellent airline service. Santana’s HQ will remain in California but a company
official didn’t rule out a future move. Santana said, “It’s really expensive to live in the Bay
Area. ... The taxes that I pay a year just for breathing in California, it’s obscene. I’d rather
give that money to poor people in Las Vegas and around the world [by] establishing fulltime residency legally.”1703 Santana has become active with several non-profit
organizations including the Nevada Cancer Institute and the Boys & Girls Clubs of Las
Vegas.1704 He exemplifies how when people involved in commercial enterprises relocate
they take more than financial resources with them – they take their charitable contributions
to local organizations.
BP Solar – The division of BP Plc, is moving its headquarters to Houston, where it had
been previously located. BP at one time was one of the world’s largest producer of solar
panels and has been in the business longer than most of its competitors. The company did
keep an office in San Francisco for sales and marketing personnel.1705
227
NJR
N$R
NQF
#HQ
#SO
}REL
Texas > Austin
29
N$R
4
#EN
#HQ
#IT
#SO
}CLO
}REL
San
Francisco ↔
San
Francisco
Texas > Austin
NJR
N$R
NQF
#DO
#HQ
#PA
}CLO
}REL
San
Francisco ↔
San
Francisco
Michigan > East
Lansing
50
$0.5
NQF
#IT
}CDO
San Joaquin
↔ Stockton
Ohio > Fremont
140
N$R
NQF
#FP
}CLO
}REL
San Joaquin
↔ Stockton
Iowa >
Muscatine
NJR
N$R
NQF
San Luis
Obispo ↔
Nipomo
Florida >
Bradenton
NJR
N$R
NQF
#PA
}REL
San Mateo
North Carolina >
Mooresville
15
N$R
NQF
#DN
#GR
}REL
San
Francisco ↔
San
Francisco
San
Francisco ↔
San
Francisco
Virginia >
Arlington
}REL
Convoke Systems relocated headquarters to Virginia while maintaining an office in San
Francisco for engineering and product personnel. The company provides document
mobility and chain of title tracking solutions for the financial services and accounts
receivable management industries.1706
Main Street Hub Inc., which helps businesses manage their online image, will relocate its
headquarters. CEO Andrew Allison said, “We realized as we grew, the cost of doing
business in San Francisco would grow, as well. Austin really fits our needs on every
level.”1707 Their website in 2015 doesn’t show a San Francisco office, but shows offices at
two addresses in Austin.
Happy Cog – The digital design studio relocated its headquarters to Austin. The
announcement was made with a bit of humor: “Even more exciting is the opportunity to
make new relationships with many of the thousands of companies, non-profits, and
universities located in our soon-to-be backyard. All is within constant olfactory range of
smoked meat.”1708
Force by Design – Sometimes a location decision is influenced when a principal has ties
to a community, such as when company co-founder Micaiah Filkins thought of his
birthplace as a place to establish a new office. Positive factors included the presence of
Michigan State University, a burgeoning IT community and the recruiting help of Leap, Inc.
– all of which helped the cloud-computing services company. The Midwestern work ethic
also appeared to be a factor.1709
H.J. Heinz Co. closed its Stockton plant, which produced Ketchup and canned tomato
products. The company said it’s working to improve productivity and future growth and
offset rapidly rising commodity costs to make it more competitive in a global business
environment. A Heinz statement said: “As part of these initiatives, Heinz has reached the
difficult but necessary decision to cease production in its Stockton, Ca. facility effective
December 2, 2011.” The plant employs approximately 140 people and manufactures
ketchup and canned tomato products.1710
H.J. Heinz Co. – See entry for Fremont, Ohio for more information about this event.
Blues Review – The Bradenton Herald reported that “Blues Revue, one of the music
genre’s most-read magazines, is moving its headquarters from California to the Village of
the Arts [and] the managers plan far more than an office -- the site will also function as a
gallery and a live music venue. “The key reason we came here is the blues scene in
Florida is so vibrant,” circulation director Jack Sullivan said when reached by phone at his
new home on Longboat Key. “There are 21 blues festivals in Florida and great national
acts that live here.” Blues Revue sponsors numerous festivals nationwide, including the
annual Tampa Bay Blues Festival, dating back to when it launched in 1995. The
publication has subscribers in 55 countries and is on newsstands in 21 countries.1711
[Along with the reasons cited, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes and fewer regulations in Florida leading to a
reduction in expenses.]
Bosch Solar Energy, North America – While employees will remain in San Mateo, part
of the company will move. A division of Germany-based Bosch Group, it develops
228
↔ San
Mateo
San Mateo ↔
Brisbane
Malaysia >
Unknown
San Mateo ↔
Brisbane
San Mateo ↔
Brisbane
Thailand >
Unknown
New Jersey >
Basking Ridge
San Mateo ↔
Brisbane
Massachusetts >
Milford
San Mateo ↔
Menlo Park
Unknown >
Dispersed
35
N$R
NQF
#MA
}OSO
}REL
NJR
N$R
NQF
117
N$R
30
#PB
}CLO
}REL
40
$45
62
#PB
}CDO
150
N$R
NQF
#MA
}CDO
}DSP
}OSO
}REL
photovoltaic projects and markets panels and other solar equipment in the U.S. It has no
manufacturing facilities here, with panels coming from Germany, Malaysia and China.
Division President Eric Daniels “set about deciding where to put the division’s main office.
Bosch, a conglomerate best known in this country for its automotive products and power
tools, has operations all over the United States. So Daniels says he had plenty of potential
sites where he could pair his operation.... He was attracted to the Southeast because it is
a natural market for solar power.... The ultimate size of Daniels’ Mooresville operation will
depend on how much Bosch’s solar business expands.”1712 [Along with the reason cited,
it’s conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in North Carolina leading to a reduction in expenses.]
Dolby Laboratories, Inc., Manufacturing Division, furloughed employees and on-site
leased workers involved in production of encrypted Dolby digital cinema content playback
products. “Production and services have shifted to foreign countries and outsourced to
Malaysia and Thailand. The Dept. of Labor indicates that furloughs may have begun as
early as Dec. 10, 2011.”1713
Dolby Laboratories, Inc. – See the 2011 entry for Malaysia for this company for more
information about this event.
Ipsen, a global pharmaceutical company, is relocating its U.S. headquarters to New
Jersey. Sean McKercher, president for Ipsen North America, said, “We did a review of all
the resumes and candidates we have interviewed that we have wanted to hire but couldn’t
because they wouldn’t relocate to California,” he said. “A high portion of those came from
the Bridgewater area and the Morristown area.” (They are near Basking Ridge.) The
location “would allow us to even attract candidates from Pennsylvania.” The office will
have 117 employees, and it will include commercial operations, leadership for sales,
marketing, HR, and across the entire business gamut.1714 It will occupy 30,000 sq. ft. of
space.1715 Christophe Jean, Ipsen Group EVP of operations, said, “We now have better
access to the best talent in the biopharma industry and to major pharmaceutical and
biotechnology firms for possible partnerships and licensing agreements, both of which are
critical to our growth.”1716 [Along with the reasons cited, it’s conceivable that the location
decision was influenced by lower business and employee costs and fewer regulations
leading to a reduction in expenses.]
Ipsen operations group and its U.S.-based subsidiary, Biomeasure Inc., will further expand
in the US market. Ipsen will make a $45 million capital investment in its Milford R&D and
technical operations facility. The existing facility will be expanded with a new 62,000 sq. ft.
building while completely renovating one of the site’s two existing buildings. A plus for the
location is that it’s close to the concentration of scientific skills and talent that will enable
Ipsen to expand its bio-therapeutic programs.1717 [Along with the reason cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs and fewer regulations leading to a reduction in expenses.]
Diageo – A large alcohol bottling facility that has operated in Menlo Park for more than 50
years will shut its doors. Diageo, a major U.K.-based alcohol producer that sells brands
such as Guinness, Smirnoff, Johnnie Walker and Captain Morgan, plans to close the
manufacturing facility “as part of a recent strategic review” of company operations. The
facility was opened by now-defunct Heublein Inc. in the mid-1950s.1718
229
San Mateo ↔
Redwood City
Britain > London
NJR
N$R
NQF
San Mateo ↔
Redwood City
San Mateo ↔
Redwood City
Germany >
Berlin
Kentucky >
Hopkinsville
NJR
N$R
NQF
60
$3
NQF
#GR
#MA
}CDO
San Mateo ↔
Redwood City
India > Unknown
NJR
N$R
NQF
#SB
}OSO
}REL
San Mateo ↔
Redwood City
Texas > Austin
300
N$R
94
#GA
#IT
}CDO
San Mateo ↔
San Mateo
Colorado >
Greenwood
Village
100
N$R
NQF
#SB
}CD0
#PB
}CLO
}REL
}OSO
}REL
Silence Therapeutics Plc (formerly Intradigm) will close Redwood City Business
Development facility “as soon as practicable” as part of a restructuring with work migrating
to London and Berlin. (A technicality prevents this from being ranked as a headquarters
loss – shortly after Silence Therapeutics merged with Intradigm HQ’d in Palo Alto, it moved
some Intradigm operations Redwood City in July 2010.) Silence Therapeutics appears
positioned for growth considering its progress in RNA interference, the issuance of new
patents to the company, and the progress with numerous clinical trials.1719
Silence Therapeutics Plc (formerly Intradigm) – See more details in the London entry for
this event.
FP International (also known as Free-Flow Packaging International Inc.) provides ecofriendly packaging that creates a smaller carbon footprint by using sustainable materials.
Its packaging products include biodegradable air cushion packaging systems, paper
cushioning systems, and biodegradable and recycled polystyrene loosefill. The need to
expand resulted in additional operations in Kentucky.1720 The company will add a machinebuilding operation that will add 60 jobs to the 49 already there, and represents a $3 million
investment. It decided to expand in Kentucky in part because of its friendly business
climate.1721
Oracle America, Inc., RMA Program Management, furloughed employees and on-site
leased workers supplying discrepancy and returns services because “the workers’ firm has
shifted to a foreign country the supply of a service that is like or directly competitive with
the service supplied by the workers which contributed importantly to worker group
separations at Oracle.” The Dept. of Labor identified the country as India, failed to specify
what community in that country, and indicated that furloughs may have begun as early as
Aug. 27, 2011.1722
Electronic Arts in 2011 expanded into 94,000 sq. ft. of space1723 and created 300 jobs
(this is after EA opened a small office with only eight employees in 2005). President Frank
Gibeau said, “We are continually searching for the best talent in the industry and the best
locations for our operations .... Texas is a great place to make games; that’s why EA is
expanding here.... Texas ranked second nationally in computer and video game
employees in 2009, with more than 13,600 individuals directly and indirectly employed by
the industry. Additionally, Texas ranked third in the number of schools (21) offering video
game design and development programs in the 2010-2011 academic year.”1724 Gibeau
also said, “Over the years, many EA jobs have migrated to Texas from California. In 2007,
the company employed about 2,800 people in California – it’s now down to less than
1,700.” A “good many” of those jobs went to Texas, he said.1725 [Along with the search for
talent, it’s conceivable that the location decision was influenced by lower business and
employee costs, taxes and fewer regulations in Texas leading to a reduction in expenses.]
RingCentral Inc., a private company that sells cloud-based phone systems for
businesses, is expanding to the Denver metro area and plans as many as 100 new hires
within a few years. Jobs are expected to be predominantly in sales. The company builds
business phone systems that integrate phone answering, email, forwarding, fax,
customized greetings and other services.1726
230
Santa
Barbara ↔
Carpentaria
Foreign Nation >
Unknown
NJR
N$R
NQF
#GR
#SB
}OSO
}REL
Santa
Barbara ↔
Goleta
Texas > Dallas
114
N$R
NQF
#AE
#EC
}REL
Santa
Barbara ↔
Goleta
Santa
Barbara ↔
Goleta
Santa
Barbara ↔
Santa
Barbara
Santa
Barbara ↔
Santa
Barbara
Mississippi >
Forest
NJR
N$R
NQF
}REL
Unknown >
Unknown
NJR
N$R
NQF
}REL
Colorado >
Colorado Springs
110
N$R
NQF
#SB
}CDO
Ohio > Sandusky
90
N$R
120
#FP
#HQ
#MA
}CLO
}REL
Santa
Barbara ↔
Santa
Barbara
South Carolina >
Ridgeland
175
$7.3
NQF
#CP
#GR
#MA
}CDO
Santa
Barbara ↔
Santa
Barbara
Texas > Austin
135
N$R
94
#EN
#HQ
#MA
#SC
}CLO
}REL
Clipper Windpower, LLC furloughed employees and on-site workers in accounts payable
providing invoice processing services because the company shifted the work to a foreign
country. Although an employee stated that Jamaica was the country, The Dept. of Labor
failed to confirm that as the country, but did indicate that furloughs may have begun as
early as Feb. 21, 2011.1727
Raytheon Space and Airborne Systems (SAS) will relocate parts of a division to other
states and cut about 114 jobs. An announcement stated, “To better position SAS for
growth in today’s economic and market environment, we must improve efficiency and
increase competitiveness.” Some programs will move to Forest, Miss.; the
microelectronics center will move to Dallas and integration and test for the PAWS-2
program will move “‘to another facility to be determined. Some offices will remain in
Goleta.1728
Raytheon Space and Airborne Systems (SAS) – See more details in the Dallas entry for
more information about this event.
Raytheon Space and Airborne Systems (SAS) – See more details in the Dallas entry for
more information about this event. Parts of its PAWS-2 program relocated. However, there
doesn’t seem to be a public record as to where they relocated.
Granada Corp. a California customer service company, will hire 110 people locally; the
company provides outsourced bilingual customer support for companies serving the
Hispanic market.1729
Adrienne’s Gourmet Foods is closing its manufacturing plant in Santa Barbara, where it
was founded 24 years ago, and moving operations to Ohio. Adrienne’s specializes in
making cookies, crackers and private-label products. It now has about 35 to 40 employees
at the former Consolidated Biscuit facility and hopes to have three shifts of employees by
late 2012. The California plant had up to 130 employees and is down to about 30 to 40
now. Owner and CEO John] O’Donnell said Ohio offered almost nothing when he told
officials he was considering closing his California plant and moving here, although the
state eventually may pay to train workers needed at the plant. 1730
Be Green Packaging LLC, a packaging manufacturer, will locate its new manufacturing
facility in South Carolina, where it will invest $7.3 million and generate 175 new jobs over
the next five years, with the potential of adding jobs and investment during that time. The
company will produce consumer, industrial and food-grade packaging made from annually
renewable plant fibers that are safe for people. The area will benefit from the educational
programs and curriculum Be Green will help to develop in sustainable packaging. Be
Green Packaging has been manufacturing in China since 2006.1731 By 2014, the company
implemented a waste materials management program at the South Carolina facility. 1732
Superconductor Technologies Inc. (STI) – The company, which develops
superconducting materials and related technologies, is relocating its headquarters and
superconducting wire manufacturing to Austin. Jeff Quiram, CEO, said, “After considering
the technical talent pools, facilities, and energy costs in a number of states, we determined
that Austin was the best location for our Conductus superconducting wire Center of
Excellence. We decided to co-locate our corporate headquarters with the superconducting
231
Santa
Barbara ↔
Santa Maria
Unknown >
Dispersed
NJR
N$R
NQF
#ET
}CLO
}DSP
Santa Clara
↔ Milpitas
Texas > Austin
NJR
N$R
NQF
#FP
}REL
Santa Clara
↔ Milpitas
China > Shenzen
NJR
N$R
NQF
#EC
#MA
}OSO
Santa Clara
↔ Milpitas
Santa Clara
↔ Moffett
Field
Mexico >
Guadalajara
Maryland >
Catonsville
NJR
N$R
NQF
14
N$R
Santa Clara
↔ Mountain
View
Pennsylvania >
Pittsburgh
200
N$R
Santa Clara
↔ Mountain
View
Oregon >
Arlington
35
$100
}OSO
}REL
#GR
#HQ
}REL
100
#DO
#EN
#IT
#SO
}CDO
NQF
}GR
}CDO
wire operation since we expect this initiative to be STI’s primary business going forward.”
New production equipment will be installed in the 94,000 sq. ft. facility. STI will continue to
maintain a presence in Santa Barbara, where it was founded in 1987.1733 The company will
create 135 jobs in Austin.1734
CafeFX – The visual effects company, with a resume of more than 80 award winning
feature films, is out of business after having been in the Santa Maria Valley for 17 years.
More than 700 items including movie props and moviemaking equipment were auctioned
off.1735
Symmetry Corp. – The nutritional products company relocated its headquarters, stating,
“We believe headquartering in Texas, a thriving part of the country that’s well-equipped to
handle our rapid expansion and shining future, has many exciting benefits for us all.”1736
JDS Uniphase, Communications Test and Measurement Division, furloughed employees
and on-site leased employees producing communications test equipment because “the
workers’ firm has acquired from a foreign country articles like or directly competitive with
the communications test equipment produced by the workers which contributed
importantly to worker group separations at JDS Uniphase.” The company stated that the
work will be shifted to Shenzen, China and Guadalajara, Mexico. The Dept. of Labor
indicated that furloughs may have begun as early as June 14, 2011.1737
JDS Uniphase – See the 2011 Shenzen entry for this company for more information about
this event.
Strategic Services International, a disabled veteran-owned business that builds an
emissions-free power generation system, relocated its headquarters to Maryland. The
product supplies portable, sustainable power, destined for use around the globe. The
mechanism is a telescoping mobile solar and wind powered energy and communication
system, produced for use for the military, homeland security, police, disaster relief, mobile
hospitals, humanitarian aid for developing nations, telecommunications, agricultural
irrigation and any situation that can benefit from self-sustained power generation.1738
Company VP Lynn Hogg said when scouting for space, they were considering spots in
Maryland over its previous manufacturing site in California.1739
Google, Inc. is planning to grow its office, increasing from 40,000 sq. ft. to 140,000 sq. ft.
while it hires more staff – software engineers, computer scientists, statisticians, product
managers and research scientists. Google Pittsburgh created the Google Sky Map
application for smartphones, to provide a map of the night sky by pointing the device
upward. The office also is the company’s center for shopping-related web searches.1740
Google recruits graduates from Carnegie Mellon University and the University of
Pittsburgh. Update: The Pittsburgh center has grown to more than 350 engineers.1741
Note: This report identified 150 employees in previous years; hence only 200 is added for
this 2011 entry. [In addition to seeking engineering talent, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Pennsylvania leading to a reduction in expenses.]
Google, Inc. is investing $100 million in Shepherds Flat, a taxpayer-subsidized wind farm
in Oregon. The company is joined by other firms that together will invest $400 million in the
project. Power from the wind farm will generate 845 megawatts for customers of Southern
California Edison so the utility can meet the state’s renewable energy requirements. The
232
Santa Clara
↔ Mountain
View
Great Britain >
Cambridge
NJR
N$R
NQF
#CH
#EN
#IT
#PL
}OSO
}REL
Santa Clara
↔ Mountain
View
Foreign Nation >
Unknown
NJR
N$R
NQF
#PB
#RD
}OSO
Santa Clara
↔ Mountain
View
Colorado >
Denver
55
N$R
NQF
#DO
#EN
#HQ
#IT
#SO
}CDO
project is being subsidized by $1.2 billion in federal, state and local support. Federal
officials said the project was “double-dipping,” and the value of the subsidies exceed the
value of carbon reductions. Federal subsidies reduced investors’ cost on a project that
didn’t need taxpayer help, according to officials.1742 The project will create 35 jobs,
reported The Oregonian, “Yet by any standard, the cost per job is enormous: $34 million
per permanent position when all federal and state subsidies are tallied.1743 This is an
example of investment that occurs out of state despite California being “ideal” for green
companies and their facilities.
Plastic Logic – The company is moving its global headquarters back to England as it
launches its first commercial product – an e-reader for the Russian education market; also,
it is in the process of building its second production plant in Russia, planned to be the
world’s largest plastic electronics production facility. Plastic Logic continues to invest in the
expansion of its first production facility in Germany.1744 Among other products, the
company is testing electronic timetable displays for use at bus stops. The technology will
make it easier to change timetables and allow daily updating at individual stops.
MedImmune, LCC, a subsidiary of Astra Zeneca, furloughed employees and on-site
leased employees involved in research and biopharmaceutical development services
because the company “acquired from a foreign country services like or directly competitive
with services supplied by the workers which contributed importantly to worker group
separations at the Mountain View, California and Santa Clara, California facilities.” The
Dept. of Labor failed to specify what country, but did indicate that furloughs may have
begun as early as Sept. 5, 2011.1745 This appears to be a prelude to MedImmune closing
its Mountain View and Santa Clara sites as part of a plan to cut about 300 jobs. About 100
jobs will move to other MedImmune facilities (including one in Hayward). The company did
not say how much it expects to save by closing the facilities. MedImmune does vaccine
R&D work out of the Mountain View site. Vaccine development is “pretty expensive,” said
Atul Saran, senior vice president of corporate development and ventures at
MedImmune.1746 It’s unclear how many jobs were offshored in 2011 and 2012.
WayIn LLC – a “social intelligence and visualization company” – a startup by Sun
Microsystems co-founder and ex-CEO Scott McNealy, will be HQ’d in Colorado. McNealy
explained with “Top 10 Reasons it’s Better to do a Startup in Colorado than California”:
10. Rocky Mountain powder beats Tahoe bunny slopes.
9. 11% income tax in CA vs. a 4.63% flat rate in CO
8. CO is a safer distance from Sacramento (but it is closer to DC..)
7. $1.5 million buys a dump in Silicon Valley, a ranch in CO.
6. In CO, the water is from CO. In CA, the water is from CO.
5. In CO, a traffic jam still moves, but the earth does not.
4. From CO, the redeye to New York is only half as bad.
3. In CO, I can hit my drives 300+ yards again
2. [Denver] has better views than Mountain View
1. WayIn is HQ’d in CO, home of our CEO and a great team.1747
At first, Wayln raised close to $6.4 million in financing.1748 Update: As of 2015, WayIn
raised $33.5 million and created 55 full-time jobs, an opportunity cost to California.1749
233
Santa Clara
↔ Mountain
View
Texas > Austin
250
N$R
10
#EN
#IT
#QA
}CDO
Santa Clara
↔ Mountain
View
Texas > Dallas
NJR
N$R
NQF
#MA
}CDO
Santa Clara
↔ Mountain
View
Virginia >
Alexandria
NJR
N$R
NQF
#AE
#HQ
}CLO
}REL
Santa Clara
↔ Palo Alto
Colorado >
Colorado Springs
30
N$R
NQF
#DF
#HQ
#PB
}REL
Evernote Corp. – In opening its second U.S. office in a 10,000- sq. ft. facility, the
company said, “Evernote will begin aggressive recruitment immediately with plans to grow
the team to several hundred over the next three years. The Austin office will be modeled
as an autonomous product design and development studio, focused completely on new
applications that will expand the Evernote family of products. The Austin team will be
responsible for all aspects of development, from visual design to quality assurance, user
testing and marketing. Rich Warwick, VP and GM of Austin Products, Evernote, said, “We
are at a point of massive expansion, and we want to be where the talent is. Given our
ambitious expansion plans, Austin was the obvious choice. Simply put, we love Austin.”
CEO Phil Libin said, “We have a lot of respect for the high caliber of developers and
designers here, which is why we are making a long-term commitment to the city.”1750 [In
addition to seeking talent, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes fewer and fewer regulations in Texas leading to
a reduction in expenses.]
Titan Laboratories – The chemical cleaning manufacturing company relocated its
production.1751 Apparently shipping costs dropped for customers located in the eastern
part of the country. [Along with lower shipping costs, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Texas leading to a reduction in expenses.]
Lockheed Martin’s Savi Technology – The Washington Post reported “In 2011, the
executives of Savi Technology faced a classic business problem. To cut costs, they
needed to close one of their three offices and consolidate their workers in another.” They
could have stayed in Mountain View where their hardware engineers were located, or
move, and company engineers warned they would have trouble finding enough skilled
employees outside Silicon Valley. The executives decided to leave California anyway and
move the headquarters to Virginia. “People in Silicon Valley are always on the lookout for
the next hot thing, so employee turnover – unless you’re one of the hottest companies –
can be very high,” said CEO William Clark. Not only did Savi executives find enough
engineers who they say are fully capable of designing the company’s wireless tracking
devices, which are used to monitor equipment all over the world, but they also found a
better fit in the Washington area’s more stable workforce.1752 [Along with the reasons cited,
it’s conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Virginia leading to a reduction in expenses.]
dpiX LLC is one of the world’s largest manufacturers of amorphous silicon sensors, which
register images inside digital X-ray sensors for medical, security and industrial digital
devices. It completed the relocation of its headquarters from Palo Alto to Colorado
Springs, where it also has achieved full production status. Some work remains in Palo
Alto.1753 When asked why dpiX moved from California, CEO Frank Caris said, “We had
more orders than we could fill – a problem of luxury. We couldn’t expand there, so we
started looking around at other locations in the United States and Asia. I’m very glad we
didn’t move to Asia. In Colorado Springs, we had this building that had been LSI, a semiconductor manufacturing firm. If you have a clean-room environment you can reuse, that’s
a big win. We had synergy here.... We had blackouts in California. It used to take me an
hour and a half to get to work, one way. When I stayed late, driving home took 35 minutes.
234
Santa Clara
↔ Palo Alto
Washington >
Seattle
NJR
N$R
NQF
#DO
#HQ
}REL
Santa Clara
↔ Palo Alto
Ireland > Dublin
NJR
N$R
4
#HQ
#PB
}OSO
}REL
Santa Clara
↔ Palo Alto
Foreign Nation >
Unknown
NJR
N$R
NQF
#EC
}OSO
}REL
Santa Clara
↔ Palo Alto
Mexico > Tijuana
32
N$R
NQF
#MA
#PB
}OSO
}REL
Santa Clara
↔ Palo Alto
Oregon >
Prineville
35
$180
300
#DC
#EN
#IT
#SM
}CDO
Santa Clara
↔ Palo Alto
North Carolina >
Forest City
35
$450
350
#DC
#EN
#IT
#SM
}CDO
I now ride my bike and it takes 10 minutes.”1754 [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Colorado leading to a reduction in expenses.]
Shopobot – The startup relocated to Seattle. A news report states that the company
relocated from San Francisco, but that seems to be only the location of its Agent; the
California Secretary of State record shows an address in Palo Alto for the company which
has “forfeited” its California tax status.1755 Shopobot is backed by Google Ventures, AOL
Ventures and Silicon Valley investors. It appears that the co-founders also relocated
DailyCred to Seattle, but since that appears uncertain this entry will count as only one
event.1756
Jazz Pharmaceuticals Inc. and Azur Pharma agreed to combine in an all-stock
transaction that creates a company incorporated in Ireland, to be named Jazz
Pharmaceuticals PLC.1757 Jazz’s headquarters moved to Dublin, where it occupies 4,000
sq. ft. of space.1758 [In addition to efficiencies resulting from the consolidation, it’s
conceivable that the location decision was influenced by lower business costs.]
Materials CTI, LLC, formerly Crystal Technology, Inc., a wholly owned subsidiary of
EPCOS CTI, Inc. which is a wholly owned subsidiary of EPCOS, Inc., furloughed
employees and on-site leased workers involved in production of crystal ingots and wafers
because the company shifted the work to a foreign country. The Dept. of Labor failed to
specify what country, but did indicate that furloughs may have begun as early as June 20,
2011.1759
Medtronic Advanced Energy furloughed employees and on-site leased workers
producing surgical tools because the company shifted the work to Mexico. According to
the Dept. of Labor, furloughs may have begun as early as Oct. 16, 2011.1760
Facebook opened the company’s first custom-built data center in Oregon. The facility,
which sits on a 120-acre parcel, will be completed at the end of 2011. Facebook stated
that it pioneered several new technologies in the design and operation of the center. When
completed, Facebook will 35 full-time employees to run and maintain the facility.1761 [Note
that data centers use significant amounts of electricity and such costs are lower in Oregon
than in California.]
Facebook is investing $450 million in a new data center. According to PC Magazine: “The
data center, located about 60 miles outside of Charlotte, will employ more than 250
construction and mechanical workers during the 18-month construction process and 35 to
45 full-time and contract workers once it opens.... Facebook said its data center will be one
of the most energy efficient data centers in the U.S. via innovative cooling and power
management technologies.1762 What helps with relatively inexpensive power is that the
climate around Rutherford County is so consistent that the local community college is
called Isothermal Community College, for a meteorological term meaning identical or even
temperatures.1763 A timeline on Facebook indicates that on June 9, 2011 construction on
the Forest City Data Center had proceeded to the point that “We have energized the
medium voltage switch gears successfully .... Job well done Everyone!” Another entry, on
Oct. 3, 2011 indicated that construction was to begin on Building 2 at the campus and
“there are more than 30 full-time employees at the data center.” On Oct. 18, 2011, the data
235
Santa Clara
↔ Palo Alto
Michigan >
Bloomfield Hills
& Ann Arbor
198
$6.1
NQF
#EN
#HQ
#IT
#SO
}UTN
Santa Clara
↔ Palo Alto
New Jersey >
East Brunswick
NJR
$1.6
30
#EN
#IT
#SO
}REL
Santa Clara
↔ San Jose
Nebraska > La
Vista
125
N$R
NQF
#EN
#IT
#SB
}CDO
Santa Clara
↔ San Jose
Texas > Austin
1,000
$4.5
NQF
#EN
#IT
#SB
}CDO
Santa Clara
↔ San Jose
Philippines >
Unknown
NJR
N$R
NQF
#SC
}OSO
}REL
Santa Clara
↔ San Jose
Nevada > Reno
30
$6
NQF
#DN
#DO
}CDO
Santa Clara
↔ San Jose
Utah > Draper
2,200
$110
499
#DO
#RW
#SB
#SO
}CDO
center officially received a Forest City address.1764 [Note that data centers use significant
amounts of electricity and such costs are lower in North Carolina than in California.]
Lakeside Software – According to Dan Salinas, VP of business development, the
decision to keep headquarters and R&D in its home state was a reversal from previous
thinking. He said, “We were looking to move to Palo Alto. In fact, we were pretty much
going to move to Palo Alto.”1765 Instead, the company will expand its software
development operations by investing $6.1 million in Bloomfield Hills and Ann Arbor,
creating up to 198 new jobs. The company stated: “After reviewing our options, we
concluded that Ann Arbor offers a strong talent pool from which we can draw the
engineering expertise required on our research and development teams. The proximity to
the University of Michigan and the high quality of life in Ann Arbor for our staff make it an
ideal choice for our expansion. We found that there is a thriving software development
community in Ann Arbor and we are excited to be joining it with this new facility.”1766 [Along
with the reasons cited, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Michigan leading to a
reduction in expenses.]
Aricent – The Redwood City-based company provides software and services for the
communications industry. It relocated some operations from Palo Alto to a 30,000 sq. ft.
facility in East Brunswick.1767 Job boards show that at a minimum it’s a location for
software-related jobs.
PayPal will hire additional employees as it expands in the “family-friendly” atmosphere of
the Omaha area.1768 It plans to hire about 125 people by the end of the year for customer
solutions agents, engineers and analysts. The La Vista office currently employs more than
2,500 people.1769
PayPal will add 1,000 high-paying jobs in Austin over the next 10 years and purchase at
least $4.5 million in business personal property in the area. PayPal already has about 250
employees at its Northwest Austin operations center, which it opened in 2007 (see
separate 2007 event). Terence Spielman, director of PayPal’s Austin operations, said the
company has “enjoyed fantastic organic growth here in Austin.” The company is proposing
to create at least 50 more jobs by the end of 2011, with an average salary of about
$107,000. That average would rise to about $139,000 by 2020.” 1770
Lattice Semiconductor Corp. furloughed employees involved in design and sales
services in support of the firm’s production of semiconductor programmable logic devices
because the company shifted the work to the Philippines. The Dept. of Labor failed to
specify what community in that country, but did indicate that furloughs may have begun as
early as June 22, 2011.1771
eBay plans to open an internet fulfillment center in Storey County and eventually will hire
at least 30 permanent employees and significantly more seasonal employees, in the
process making a capital investment more than $6 million.1772 By 2014, eBay occupied
700,000 sq. ft. at the Tahoe-Reno Industrial Center.1773
eBay will invest $110 million in a major expansion of its operations in Utah, eventually
creating 2,200 jobs. eBay has had a presence in Utah for 12 years including a customer
service center in Draper that houses support functions such as human resources, finance,
account management, call center management, training, legal, along with product and
236
1,000
$500
280
#GR
#MA
}CDO
}UTN
NJR
N$R
NQF
#QA
#SC
}OSO
}REL
Oregon >
Portland
60
$340
225.2
#GR
#MA
}CDO
Santa Clara
↔ San Jose
Canada >
Ontario,
Markham
27
N$R
NQF
#CP
#EC
#EN
#MA
}CLO
}OSO
}REL
Santa Clara
↔ San Jose
Canada >
Ontario, Ottawa
NJR
N$R
NQF
Santa Clara
↔ San Jose
Mississippi >
Hattiesburg
Santa Clara
↔ San Jose
Foreign Nation >
Unknown
Santa Clara
↔ San Jose
}OSO
}REL
project management.1774 eBay employs about 1,800 in Draper, one of three customerservice centers it operates internationally, including two in Ireland.1775 In 2011, eBay
announced a master area plan showing completion of an office park by 2018, with the first
phase completed by April 2013. The plan breaks the project into three phases on 36.38
acres. The first phase includes a three-story, 192,000-sq. ft. office building and a one-story
51,000-sq. ft. foot employee amenity building. Subsequent phases include two four-story
office buildings, each at 128,000-sq. ft., and a parking structure.1776 Excluding the parking
structure, the new space will total 499,000 sq. ft.
Stion Corp. will locate a solar panel manufacturing plant In Mississippi. Founded in 2006,
Stion has production and R&D in San Jose, where the company is based; space in
Mississippi will be about three times larger.1777 Stion will invest up to $500 million and
create up to 1,000 jobs producing solar panels in Hattiesburg. The company shifted its
investment to Mississippi, ending plans to locate in California. Moving into an existing
building with 300,000 sq. ft. [note: it actually is 280,000 sq. ft. – J.V.] will help the firm
compete with rivals. Chet Farris, Stion’s president and CEO, said, “The cost and time-tomarket advantage of building here will provide a significant competitive advantage.” The
firm plans initially to spend $100 million and hire 200 people. The first phase will produce
enough solar panels every year to generate 100 megawatts of electricity. The company
hopes to buy parts close to Hattiesburg. Stion operates a small factory in San Jose and
that along with headquarters and research facilities will stay there. But the Mississippi
plant will mean less expansion in California. Stion considered other spots in Mississippi,
but was lured to Hattiesburg in part by the University of Southern Mississippi’s advanced
materials research.1778 [Along with available talent from the university, it’s conceivable that
the location decision was influenced by lower business and employee costs, taxes and
fewer regulations in Mississippi leading to a reduction in expenses.]
Atmel Corp., San Jose Quality Assurance Organization, the microcontroller and
semiconductor company furloughed employees involved in providing quality assurance
support services because the company shifted the work to a foreign country. The Dept. of
Labor failed to specify what country, but did indicate that furloughs may have begun as
early as July 24, 2011.1779
SoloPower, Inc. moved manufacturing to Oregon. The company declined to say if
California was considered as a site for expansion.1780 SoloPower Inc. will lease a 225,250sq. ft. building in North Portland’s Rivergate Industrial District for a planned $340 million
solar module plant.1781 Note: This event is separate from the 2013 relocation of
SoloPower’s HQ.
Adeptron Technologies Corp. will close the San Jose plant and shift production to two
locations in Canada – Markham, which is near Toronto, and Ottawa. The company stated,
“Making the determination to close our U.S. manufacturing plant in order to remain
competitive was very difficult, though necessary.”1782 Adeptron provides electronics
manufacturing services to various OEMs in North America including printed circuit board
assembly, cable and harness assembly, full product electromechanical integration as well
as final product assembly and systems integration.1783
Adeptron Technologies Corp. – see the entry for Markham, Ontario for this company for
more information about this event.
237
Santa Clara
↔ San Jose
Arizona >
Chandler
2,000
N$R
188
#BF
#EN
#IT
#SB
#SO
}CDO
Santa Clara
↔ San Jose
Korea >
Unknown
65
N$R
NQF
#CH
}OSO
}REL
Santa Clara
↔ San Jose
Texas > Austin
200
N$R
NQF
#CH
#EN
#IT
#RD
#SO
}CDO
Santa Clara
↔ Santa
Clara
Arizona >
Chandler
1,000
$5,000
NQF
#CH
#EN
#IT
#MA
}CDO
Santa Clara
↔ Santa
Clara
Oregon >
Hillsboro
1,000
$3,000
1,100
#CH
#EN
#IT
#MA
#RD
}CDO
PayPal, the online payment and software company, opened a new Arizona customer
service and operations center that will have up to 2,000 new employees. President Scott
Thompson said, “We have added dedicated teams here in Chandler including customer
service, operations, training, technology and management to serve our customers across
North America, in our burgeoning market in Mexico and as far away as Australia.”1784 The
facility occupies 188,000 sq. ft.1785
Samsung Information Systems America, Inc. furloughed employees involved in disk
drive development because the work was shifted to Korea with a loss of 65 jobs. The Dept.
of Labor didn’t identify the community in that country, but did indicate that furloughs may
have begun as early as Feb. 3, 2011.1786
Altera Corp., a computer chip maker and software provider, opens an Austin R&D center
that will employ between 200 and 300 people. The company was attracted to Austin
because of its engineering talent.1787 Note: Silicon Valley used to be the research
epicenter for U.S. companies producing computer chips. [Along with the availability of
engineering talent, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Texas leading to a reduction
in expenses.]
Intel Corp. will invest $5 billion in a new chip manufacturing facility in Chandler named
Fab 42 and to upgrade existing plants there. The company said the new factory will be the
most advanced, high-volume semiconductor manufacturing facility in the world.1788 When
visiting the plant on Jan. 25, 2012, President Obama said, “I’m here because the factory
that’s being built behind me is an example of an America that is within our reach. An
America that attracts the next generation of good manufacturing jobs. An America where
we build stuff and make stuff and sell stuff all over the world.”1789 The facility has yet to be
opened, primarily because of a steeper decline in the sales of PCs than had been
anticipated.1790 However, starting in 2016 Intel will have a new modem in the iPhone; that
opens the possibility of production starting at Fab 42.1791 Since 1996, Intel has invested
more than $12 billion in high-tech manufacturing capability in Arizona and spend over
$450 million each year in research and development.1792 Note: Silicon Valley used to be
the epicenter for companies producing computer chips in the U.S.
Intel Corp. has been in Hillsboro for some time (see the 2005 event), and now it has a
major expansion project. It is building a $3 billion D1X research facility and manufacturing
factory that is one of the biggest construction projects in Oregon’s history. The factory, or
fab, will incubate the semiconductor industry’s most advanced technology for at least a
decade. It also serves as a model for other construction around the world. To be installed
in the plant are extreme ultraviolet machines (EUV) that are “titanic” in size and weight.
Ravi Sharma, Intel’s director of global construction, said, “It basically takes an entire 747 to
fly one of these new tools out, and if you don’t balance it right, you can’t get the 747 off the
ground.” 1793 The company has nearly 15,000 Intel employees in Oregon. Intel estimated
the facility would support as many as 1,000 permanent high-tech positions. The latter jobs
would come with an average annual salary of $120,000.1794 Information about the facility
size of 1.1 million sq. ft. didn’t seem to enter the public domain until two years later.1795
Note: Silicon Valley used to be the epicenter for companies involved in semi-conductors in
the U.S.
238
Santa Clara
↔ Santa
Clara
Colorado >
Colorado Springs
131
$121
55
#DC
#EN
#IT
#SB
#SO
}CDO
Santa Clara
↔ Santa
Clara
Santa Clara
↔ Sunnyvale
Foreign Nation >
Unknown
NJR
N$R
NQF
#PB
#MA
}CLO
}OSO
}REL
North Carolina >
Cary
200
N$R
66
#EN
#SB
#SO
}CDO
Santa Clara
↔ Sunnyvale
Georgia >
Suwanee
NJR
$100
153
#DC
#EN
#IT
}CDO
Santa Clara
↔ Sunnyvale
Maryland >
Montgomery
County
25
N$R
NQF
#EN
#HQ
#IT
}REL
Santa Clara
↔ Sunnyvale
Foreign Nation >
Unknown
NJR
N$R
NQF
#SC
}OSO
}REL
Santa Clara
↔ Sunnyvale
China > Jiaxing
NJR
N$R
NQF
#GR
#MA
}CDO
}OSO
Agilent Technologies is undertaking a major expansion, adding a 20,000-sq. ft. data
center and 35,000-sq. ft. technology center. Agilent, which manufactures test and
measurement equipment, plans to add 131 jobs over the next five years.1796 Online job
boards show technology, marketing, sales and other jobs in Colorado Springs.1797 [Note
that data centers use significant amounts of electricity and such costs are lower in
Colorado than in California.]
MedImmune, LCC, -- The company shifted work to a foreign nation and also closed its
Santa Clara plant. See the 2011 Mountain View entry for more information about this
event.
HCL America Inc. – The U.S. unit of an Indian software and IT services company is
planning to add 200 workers at its 300-employee center. Average annual salaries total
$47,000, plus benefits. Also, the company will expand its space to 66,000 sq. ft. Rahul
Singh, head of operations for the Cary center as well as another in Mexico, said the
company has focused on “right-shoring” over “offshoring” and employs only U.S. citizens,
green card holders or people granted political asylum to provide services regarding exportcontrolled data that require compliance with ITAR, the U.S. government’s International
Traffic in Arms Regulations.1798
Advanced Micro Devices Inc. (AMD), a global semiconductor company, has plans for a
more than $100 million data center in Suwanee. AMD could invest about $250 million in
the Suwanee data center over the next decade, an investment that includes replacing
computer hardware every three to four years. AMD makes the microchips that power
computer desktops, laptops and servers. The 153,000 sq. ft. data center is on a site that
offers reasonably priced power – a consideration when planning a data center. [Note that
data centers use significant amounts of electricity and such costs are lower in Georgia
than in California – on average, electricity in Georgia costs about 5.5 cents per kilowatt
hour compared with 14 cents in Santa Clara.1799
Alvarion, which specializes in Wi-Fi networks and data management, will move its North
American headquarters to Montgomery County, where it will create 25 jobs between 2011
and 2013. Some employees will relocate to Maryland and some employees will be new
hires.1800
CSR Technology, Inc., f/k/a Zoran Corporation, a subsidiary of CSR plc., furloughed
employees and on-site leased workers designing and developing semiconductors because
the company shifted the work to a foreign country. The Dept. of Labor failed to specify
what country, but did indicate that furloughs may have begun as early as July 9, 2011. 1801
The company produces semiconductors for autos, consumer electronic products, wireless
voice, low-energy connectivity and other purposes.
Sunpreme – This is an example of Silicon Valley venture capital types investing in green
companies to build a “state-of-the-art” factory – in Jiaxing, near Shanghai, China, to
manufacture solar photovoltaic cells. The event came after the company closed more than
$50 million in financing led by the International Finance Corporation (IFC), the private
sector investment arm of the World Bank Group, and investors Capricorn Investment
Group and Beijing-based China Environment Fund III, L.P.; Sunpreme has R&D and
process integration facilities in Sunnyvale, CA in “the heart of Silicon Valley’s marketbased innovation culture.”1802 Construction began in April 2011.1803 Note: Supreme
239
Santa Clara
↔ Sunnyvale
Texas > Austin
100
N$R
136
#PB
#RD
}REL
Santa Cruz
↔ Santa
Cruz
Colorado > Fort
Collins
NJR
N$R
NQF
#CP
}REL
Solano ↔
Fairfield
Texas > Farmers
Branch
279
N$R
53.1
#AU
#DO
#HQ
#RW
}CLO
}REL
Solano ↔
Fairfield
Solano ↔
Fairfield
Sonoma ↔
Petaluma
Texas > Grand
Prairie
Connecticut >
Hartford
China >
Unknown
NJR
N$R
NQF
}REL
NJR
N$R
NQF
}REL
NJR
N$R
NQF
#EC
#RD
}OSO
}REL
Sonoma ↔
Santa Rosa
Oregon >
Ashland
NJR
N$R
NQF
#HQ
#PF
}CLO
}REL
Sonoma ↔
Santa Rosa
Louisiana > New
Orleans
50
N$R
NQF
#PA
}REL
resembles the kind of company that California favors with subsidies and incentives, which
raises the question as to why the plant wasn’t located in California.
ArthroCare Corp. will relocate its main R&D operations to its Austin headquarters. The
company, which makes minimally invasive surgical products for spinal and other surgeries,
has just over 100 people in Austin and contemplates doubling that number. The cost of the
latest move, including employee severance, lease termination and relocation costs, will be
as much as $10.5 million.1804 This is an example of how when a company moves part of its
operation out of California, which it did with its HQ in 2004, that more jobs follow in future
years.
Swobo is moving as the company re-launches the Swobo brand under new ownership –
the Fort Collins Bicycle Co. It hopes to hire new employees eventually and even utilize
some manufacturing along the Front Range if possible for their products. Swobo was
started in 1991 in San Francisco and its bicycles are manufactured in Taiwan.1805
Copart Inc. specializes in vehicle salvage via the internet and online auctions. It will shift
its headquarters to a location near Dallas and put new divisional offices in two other out-ofstate locations. Some jobs will remain in Fairfield. “Copart executives decided to move its
headquarters out of Fairfield in the wake of the state government election results in
California in November, said people familiar with Copart’s exit strategy” with a commercial
realtor saying, “Copart’s departure is all about the cost of doing business here.”1806 Copart,
founded in 1982, started as a single salvage yard in Vallejo, Calif. Today, the company
has 152 facilities in the U.S., Canada and the United Kingdom selling more than 1 million
salvage vehicles and parts annually to buyers all over the world. It will move into a 53,126sq. ft. facility in Farmers Branch.1807
Copart Inc. – See the 2011 entry for Dallas for this company for commentary about this
event.
Copart Inc. – See the 2011 entry for Dallas for this company for commentary about this
event.
Tellabs, Inc. , a telecommunications company, furloughed employees and caused the
furlough on-site leased workers involved in research and development services because
the company shifted such work to China. The Dept. of Labor failed to specify what
community in that country, but did indicate that furloughs may have begun as early as
June 14, 2011.1808
E-Myth Worldwide Inc. – The small-business coaching firm moved its headquarters. CEO
Jonathan Raymond said the move to Southern Oregon was cost-effective and the
beginning of a larger plan to expand nationally. The company’s work is based around the
series of highly popular E-Myth business books written by company founder Michael
Gerber. The company was originally established in San Mateo.1809
Factory VFX, a visual effects company with ties to Universal Studios, Walt Disney Studios
and other Hollywood studios, will open an office in New Orleans where the film industry is
growing. The company plans to hire up to 50 employees in coming years.1810 “We chose to
open an office here because of the great vibe in the heart of the city. New Orleans is such
an artistic city. It was an easy decision to place our visual effects team in this beautiful city
full of amazing artists,” said Factory VFX CEO Eric Christensen. “We’ll be bringing some of
our northern California Digital Commandos to New Orleans to help get us started as well
240
Stanislaus ↔
Modesto
Michigan >
Rochester Hills
200
$30
140
Stanislaus ↔
Modesto
Canada >
Ontario >
Unknown
Illinois > Elgin
NJR
N$R
NQF
19
N$R
NQF
#FP
#MA
}CLO
}REL
Tulare ↔
Visalia
Texas > Austin
NJR
N$R
NQF
#EN
#HQ
#IT
#SO
}CDO
Unknown ↔
Unknown
Massachusetts >
Boston
NJR
N$R
NQF
#HQ
}UTN
Stanislaus ↔
Modesto
#EC
#GR
#HQ
#MA
}REL
}OSO
}REL
as to train some of the local artists. We’re all very excited.”1811 The company will maintain
its Santa Rosa office. [Along with the reasons cited, it’s conceivable that the location
decision was influenced by lower business and employee costs, taxes and fewer
regulations in Louisiana leading to a reduction in expenses.]
Sunlogics PLC (now Empower Energies), a provider specializing in solar projects,
shifted its headquarters to Michigan and is in the process of creating 200 new jobs in
Rochester Hills. The event is an outgrowth of a $7.5 million investment by General Motors
Ventures LLC. GM also signed agreements with Sunlogics for the installation of solarcharging canopies at Chevrolet dealerships and GM facilities, as well as a power purchase
agreement to install large-scale solar arrays at GM facilities and purchase the energy they
produce. Sunlogics has begun shifting employees from its old headquarters in Modesto
Calif. to Rochester Hills. The company will purchase a 140,000- sq. ft. industrial building
and invest close to $30 million in the facility.1812 It plans to hire process engineers,
electrical engineers, tool and die-makers and others. Sunlogics also plans to open a
second factory in southern Ontario, creating an additional 110 manufacturing jobs. 1813
Note: Sunlogics changed its name to ViSole Energy in August 2012,1814 and underwent
another name change, this time to Empower Energies, in May, 2013.1815 The company is
now HQ’d in Troy, Michigan.1816
Sunlogics PLC (now Empower Energies) – see the 2011 entry for Rochester Hills,
Michigan for this company for more information about this event.
John B. Sanfilippo & Son. Inc. A WARN notice listed the company’s Orchard Valley
Harvest (OVH) Modesto facility as a closure that affected 19 employees on Jan. 14,
2011.1817 The company’s 2011 Q3 gross profit was reduced by $0.7 million in part for the
relocation of the facility to Elgin, Illinois1818 that the company opened in 2007.1819 The
wholesale confectionery, founded in 1922, is a processor, marketer and distributor of
baking nuts, snack nuts and nut-based products that are sold in multiple distribution
channels.
InteSolv will open a regional office in Austin, while keeping its HQ in Visalia, to focus on
software development and technical support. It’s unclear how many people will work in the
new office. InteSolv SVP of business development Frank Rogers said, “To sustain our
growth, it was imperative to find a second place for InteSolv to call home and Austin fits us
to a ‘T.’”1820 Note: Despite the comment about keep its HQ in Visalia, it later moved the
headquarters to Austin.
Mondo Strategies focuses on improving the organization and processes of software
companies and specializes in internationalization selected Boston as the location for its
headquarters. Ernani Ferrari, the firm’s chief consultant and founder stated, “We could
have chosen California where most software companies are, but Boston offers an
incredible opportunity for ongoing research and is a great birthplace for software
companies.” Also cited was proximity to other software companies and customers. With
more than 25 years of experience, Mondo Strategies has helped over one hundred
software companies around the world, from start-ups to large, well-known multinationals
like Microsoft, IBM, Infor and Totvs.1821 [Along with the reasons cited, it’s conceivable that
241
Unknown ↔
Unknown
Nevada > Las
Vegas
50
N$R
56.1
#DN
}UTN
Unknown ↔
Unknown
Michigan >
Sterling Heights
50
N$R
NQF
#AU
#MA
}UTN
Unknown ↔
Unknown
Michigan >
Plymouth
200
$7
17
#AU
#RD
#QA
}UTN
Unknown ↔
Unknown
Texas >
Richardson
434
$35
87
#EN
#HQ
#IT
#SO
}UTN
Unknown ↔
Unknown
Ohio > Toledo
20
N$R
NQF
#GR
#HQ
}UTN
the location decision was influenced by lower business and employee costs and fewer
regulations leading to a reduction in expenses.]
Orbus Exhibit & Display Group – The Chicago-based producer of exhibit and retail
displays opened a distribution center in the Las Vegas area to serve the West Coast,
signing a five-year lease for a 56,073 sq. ft. facility and creating more than 50 jobs in
distribution, manufacturing and printing.1822 The firm selected Las Vegas over other
Western locations, including California cities.1823
Acument Global Technologies Inc. / Ring Screw LLC – The manufacturer of fasteners
for industry and automobiles decided to move its headquarters from one Michigan location
to another over an option to locate in California (where in the state was not identified).
Beverly Hills-based Platinum Equities, which specializes in mergers and acquisitions,
purchased Acument several years ago.”1824 In its new metro Detroit-area location, the
company will hire 50 people this year and more in the future.1825
Changan Automobile Co. Ltd. created the Changan US R&D Center, Inc., and located it
in Michigan.1826 Michigan won out over an undisclosed location in California.1827 The $7
million facility will have 200 jobs in the next few years. Changan sold about 2.4 million
vehicles in 2010, and has said it wants to sell six million vehicles annually by 2020. It’s
now operating out of a 17,000-sq. ft. space but plans to expand.1828
Virtual Computing Environment Co. (VEC) – The cloud computing solutions company –
a joint venture of Cisco Systems Inc., EMC and VMware – conducted a national search for
the best headquarters location. “There were a number of different locations in the U.S. to
focus the expansion and the Dallas metro region was deemed the most attractive,” said a
company spokesman.1829 There, it will create 434 high-paying jobs and generate about
$35 million in capital investment. SVP Timothy Page said, “Our big draw was the
technology people in the area. You can go to either coast or you can come to Texas.”1830
VCE employs about 800 people in Dallas, Ireland, Massachusetts and in California. The
new jobs in Richardson will be created jobs, rather than transfers from other locations.
VCE will occupy 87,000 sq. ft. in Richardson in 2011.1831 Note: By 2014, VCE surpassed
its goal of $1 billion in annual sales and continues to grow. 1832 Which California
communities were considered remains undisclosed; at the time the company had a facility
in Santa Clara, which it still does in 2015.1833
TecnoSun Solar Systems AG – The German company that makes mounting systems for
solar panels will bring at least 20 jobs to the Toledo area when it opens its North American
headquarters near the University of Toledo (UT). The company will use Ohio
manufacturers to make its products. UT President Lloyd Jacobs said TecnoSun fits with
the university’s goals to foster solar innovation – “We are building the supply chain.” CEO
Peter Fischer said the start-up had considered locating in California. However, the firm
was attracted to Toledo’s work force, access to highways and railways, and proximity to
solar power research being conducted by UT and other local firms.1834 [Along with the
reasons cited, it’s conceivable that the location decision was influenced by lower business
and employee costs, taxes and fewer regulations in Ohio leading to a reduction in
expenses.]
242
Unknown ↔
Unknown
Massachusetts >
Boston
NJR
N$R
NQF
#GR
#MA
}UTN
Unknown ↔
Unknown
Massachusetts >
North Reading
25
N$R
40
#EN
#HQ
#MA
}CLO
}REL
Unknown ↔
Unknown
Arizona >
Phoenix
100
$3
72
#GR
#MA
}UTN
Unknown ↔
Unknown
Idaho > Twin
Falls
400
$128
950
#FP
#MA
}UTN
Unknown ↔
Unknown
Nevada > TahoeReno
15
N$R
100
#DN
#PB
}UTN
Unknown ↔
Unknown
Michigan >
Grand Rapids
30
$1
NQF
#EN
#IT
#SO
}UTN
Unknown ↔
Unknown
Unknown >
Dispersed
77
N$R
NQF
#MA
}CLO
}DSP
Unknown ↔
Unknown
Maryland > Glen
Burnie
100
N$R
NQF
#MA
}UTN
Satcon Technology Corp. selected Boston for its manufacturing expansion after
considering California. There, the company will produce power inverters and transformers
for the solar industry.1835
Kiva Systems Inc. could have manufactured mobile robots used in e-commerce order
fulfillment in California, where it was founded, but located headquarters and manufacturing
in Massachusetts. Since, it has expanded by adding 16,000 sq. ft. of manufacturing space
to its current 30,000-sq. ft. production space and will hire another 25 employees. Also, the
company will leave its current 28,000-sq. ft. office and move into a 52,000-sq. ft. space for
the headquarters and engineering office, with room to add still more staff. The two
expansions will total 40,000 sq. ft. Note: The company was founded as Distrobot Systems,
Inc., and since has been acquired by Amazon.com.1836
DIRTT Environmental Solutions selected Arizona for its western regional headquarters;
it will invest at least $3 million in a 72,000-sq. ft. facility and employ 100 people. The
Calgary-based firm evaluated a number of western states including California for the firm’s
expansion.1837 One company official said, “We had a number of projects in Northern
California and it was much less expensive to have the material coming out of this factory.
You just put it on a truck, turn left and head right up the coast.”1838 CEO Scott Jenkins
said, “With Phoenix you get California without California.” DIRTT makes walls out of
sustainable and recyclable materials, such as aluminum.1839
Chobani – The maker of Greek yogurt will build a 400-job production plant in Twin Falls as
it expands operations to the western U.S. Hamdi Ulukaya, the Turkish-born founder and
CEO of Chobani, said that the Western location, the availability of milk, and a work force
willing to learn the job all played a role in the selection of Twin Falls for the 950,000-sq. ft.
facility. The initial investment will be at least $128 million and could reach $300 million as
the company grows. The company considered California communities during the location
search but didn’t say which ones.1840 [Along with the reasons cited, it’s conceivable that
the location decision was influenced by lower business and employee costs, taxes and
fewer regulations in Idaho leading to a reduction in expenses.]
Benco Dental, a Pittston, Pa.-based company, the largest privately owned, full-service
U.S. dental distributor, is opening a 100,000-sq. ft. distribution facility in Nevada. Lou
Mangino, vice president-operations, said the company considered other states, including
California, “but found the business climate in Nevada friendlier and more accommodating.”
It’s the company’s fifth U.S. distribution center.1841
Atomic Object LLC – The custom software designer and developer plans to invest nearly
$1 million in its Grand Rapids location to support new growth, creating up to 30 jobs.
Michigan was chosen over a competing – and unknown – site in California.1842
Consolidated Container Company – According to a notice filed with the state, the
company furloughed 77 people on May 23, 2011 and listed the event as a “closure.”1843 It
operates 62 manufacturing facilities nationally, a research and development center in
Atlanta and two manufacturing plants in Mexico.
Chesapeake Bay Candle – The candle maker, in experiencing difficulties in China and
Vietnam, considered manufacturing in California. However, they selected Maryland
instead. Once manufacturing starts the company hopes to expand beyond the factory’s
243
Unknown ↔
Unknown
British Crown
Dependency >
Channel Islands,
Jersey, St. Helier
Ventura ↔
Camarillo
Oregon >
Hillsboro
Ventura ↔
Camarillo
Florida > Tampa
Ventura ↔
Newbury
Park
Philippines >
Unknown
Ventura ↔
Newbury
Park
28
N$R
NQF
#EN
#HQ
#IT
#SO
}UTN
186
$4.3
60
#GR
#MA
}CLO
}REL
36
N$R
NQF
#EC
#MA
}REL
120
N$R
NQF
#PB
#SB
}OSO
India > Chennai
37
N$R
NQF
#PB
#SB
}OSO
}REL
Ventura ↔
Oxnard
North Carolina >
Mooresville
25
N$R
42
#HQ
}REL
Ventura ↔
Simi Valley
Texas > Austin
50
N$R
10
#DO
#HQ
#SB
#SO
}REL
initial 80 to 100 workers.1844 It opened in June 20111845 and is expected to eventually have
100 employees.1846
Acrede will locate headquarters in Saint Helier, stating that “the quality of life offered by
the Island as well as ‘practicality and an excellent business environment’” contributed to
selecting Jersey rather than Switzerland, Singapore or California. It employs 28, a figure
expected to grow.1847 Lest a California politician dismiss Acrede as “hardly a loss” because
of its small size, note that a year later Acrede announced an alliance with Hewlett-Packard
to deliver worldwide payroll and HR technology and process services. Acrede’s cloud
enterprise process management software includes an employee portal, a multi-lingual
global payroll engine with an exchange module and more.1848
SolarWorld, a solar-panel company, moved manufacturing to Oregon where it already has
a plant, expanded production there, stopped production in Camarillo and furloughed
California employees. Its American sales and marketing division and 100-plus workers will
remain in Camarillo.1849 SolarWorld paid $4.3 million for a 60,000-square-foot building on
six acres beside its Hillsboro complex. 1850 (Note: The remaining Camarillo jobs were later
moved to Hillsboro.) The company describes itself as “largest U.S. solar manufacturer for
more than 35 years.”1851 Their website says, “Solar made in America, by Americans, since
1975.”1852
Channel Microwave – The company, which started in Camarillo 25 years ago, furloughed
36 employees and transferred manufacturing to Florida.1853
WellPoint, Inc., The WellPoint Companies, Inc., Blue Cross of California, furloughed
employees and on-site leased workers providing health insurance and claims review
because the company acquired from a foreign country services like or directly competitive
services which contributed importantly to worker group separations at WellPoint. The Dept.
of Labor indicated that the country was the Philippines but didn’t identify the community in
that country.1854 Layoffs of 120 employees in Newbury Park will occur in four rounds in
2011 – on May 3, June 1, Sept. 1, and Oct. 4, 2011 – and on March 31, 2012.1855
WellPoint, Inc., The WellPoint Companies, Inc., Blue Cross of California, furloughed
employees and on-site leased workers involved in customer call center services,
management, customer service, and software quality assurance functions because the
company “has shifted to a foreign country the supply of services like or directly competitive
with the services supplied by the workers which contributed importantly to worker group
separations at WellPoint.” The company stated: “Functions performed by some of these
associates (Claims, Enrollment and Billing) in this department [are] being transitioned to
SourceHOV in Chennai, India to reduce administrative expenses.” The Dept. of Labor
indicates that furloughs may have begun as early as Sept. 6, 2011.1856
Amiad USA – The water filtration company will move its headquarters and combine it with
an existing Mooresville business, PEP Filters-Arkal Filtration Systems, into a new 42,000
sq. ft. building. Amiad USA has been based in Oxnard for 20 years. Some California
employees will relocate.1857
Volusion Inc., a growing e-commerce software company, had been splitting operations
between Austin and California for several years, but no longer. It’s shifting headquarters to
Austin, where it will add dozens of jobs. It is hiring for openings in product development,
244
Ventura ↔
Simi Valley
Ohio >
Painesville
Ventura ↔
Ventura
82
N$R
NQR
#AE
}CLO
}REL
South Carolina >
York
110
N$R
226
#AE
#AU
#MA
#PB
}REL
Ventura ↔
Ventura
Minnesota >
Minneapolis
100
N$R
NQF
#CP
#DO
#PA
#RW
#SB
}REL
Ventura ↔
Ventura
Ventura ↔
Ventura
Yolo ↔ West
Sacramento
Colorado >
Denver
Kentucky >
Bowling Green
Foreign Nation >
Unknown
NJR
N$R
NQF
}REL
NJR
N$R
NQF
}REL
135
N$R
NQF
#CH
#MA
}OSO
}REL
computer operations, sales, business development, customer services, marketing and
human resources. Volusion, which has about 150 people in Austin now, added 100
employees and 10,000 sq. ft. of space to its offices in Austin in 2010.1858 Note: By 2013,
the company had 370 employees in Austin.1859 In 2014, the company added 200
employees, mostly at the Austin headquarters, and in 2015 Volusion’s plan is to grow to
600 employees.1860 Also, by 2014 the company’s growth required it to move into
“productivity-boosting facilities” that occupies over 75,000 square-feet of office space.”1861
Even though these events represent opportunity costs to California, the updated employee
count and space occupied aren’t included in 2011 totals because they occurred in
subsequent years.
Aero Fluid Products, which has been in Simi Valley since 2005, will close Its facility,
eliminating 82 jobs. The Ventura County Star reported: “The aerospace and design
manufacturer is a division of the AeroControlex Group and a subsidiary of Clevelandbased TransDigm Group Inc., which acquired the company’s previous owner, Telair
International Inc., late last year. When the acquisition happened, the city was led to believe
that everything would remain in place in Simi Valley, said [a local official, but] the new
owner changed its mind and decided to absorb the manufacturing unit into existing
facilities outside the area.”1862 The company will transfer the work to an existing plant in
Painesville, Ohio, where Aero Fluid is headquartered. “This (closure) is consistent with
their long term strategy on cost structure,” said a Wedbush Securities analyst.1863
Bluestar Silicones – Chinese-owned, French-headquartered Bluestar Silicones is buying
a 226,000-sq. ft. building in York County, where it will create 110 jobs and consolidate
operations including moving production from a Ventura factory. 1864 The factory will make
silicone adhesives for the aerospace, health care, automotive and sticky-label markets.1865
Affinity Group put its headquarters up for sale and moved the work of several divisions to
Minneapolis, Denver and Bowling Green, Ky. According to CEO Marcus Lemonis, more
than half the workforce was furloughed; others will remain in the accounting, directories
and rallies and events departments.1866 He said getting the company’s sales, general and
administrative costs down has been a primary focus in 2011. About 100 employees were
let go from the organization.1867 In 2011 the company published Trailer Life and
MotorHome and also owned the Camping World chain of retail stores, membership clubs,
book and directory publishing, magazines, Internet sites, forums and a cable television
show.1868 Some of those divisions have since been sold, and the company is now known
as Good Sam Enterprises LLC. See the separate 2012 event regarding the company’s
headquarters move.
Affinity Group – see the 2011 entry for Minneapolis for this company for more information
about this event.
Affinity Group – see the 2011 entry for Minneapolis for this company for more information
about this event.
Xyratex International, Inc., a subsidiary of Xyratex, Ltd., furloughed employees and onsite leased workers involved in manufacturing data storage systems because the company
shifted the work to a foreign country. The Dept. of Labor failed to specify what country, but
indicated that furloughs may have begun as early as began Oct. 22, 2011.1869
245
Yuba ↔
Marysville
Foreign Nation >
Unknown
23
N$R
NQF
#PB
}OSO
}REL
Fremont-Rideout Health Group, Medical Transcription Department, d/b/a Rideout
Health, furloughed employees and on-site leased workers involved in providing medical
transcription services because the company shifted the work to a foreign country. The
Dept. of Labor failed to specify what country, but did indicate that furloughs may have
begun as early as Aug. 18, 2011.1870
246
Chapter 21: Details Regarding 2010 Disinvestment Events
California Disinvestment Events for 2010 as shown in Table 20 are self-explanatory. Quite often in public domain sources
information was lacking about jobs, capital investments and square footage. In such cases, the following codes will appear:
NJR – No Job Number Reported
N$R – No Capital Investment Reported
NQF - No Square Footage Reported
Table 20: California Disinvestment Events for 2010
California
County &
Locality
Destination
Location
Alameda ↔
Emeryville
Texas > San
Antonio
Alameda ↔
Emeryville
Jobs
Private
Capital
(million)
Sq. Ft.
(000)
Function
or
Industry
Codes
Event
Type
NJR
N$R
NQF
#HQ
}CLO
}REL
Pennsylvania >
Devon
50
N$R
NQF
#HQ
#PF
}CLO
}REL
Alameda ↔
Fremont
New York >
Salina
94
N$R
NQF
#EC
#EN
#RD
}CDO
Alameda ↔
Fremont
Canada >
Ontario,
Cambridge
Japan > Unknown
NJR
N$R
NQF
}OSO
}REL
NJR
N$R
NQF
}OSO
}REL
2,000
$800
1,800
Alameda ↔
Fremont
Alameda ↔
Fremont
Texas > San
Antonio
#AU
#MA
}CLO
}REL
Information Available through Public Domain Sources
Improved Piping Products Inc. – A headquarters relocation.1871 Also, the company
relocated manufacturing from China to Texas, an event that is excluded from this
report.1872
Smart Business Advisory & Consulting closed its Emeryville office when it merged with
LECG Corp., a consulting company, and relocated to Pennsylvania and in the process
transferred 50 jobs.1873 [Along with efficiencies resulting from the merger, it’s conceivable
that the location decision was influenced by lower business and employee costs, taxes
and fewer regulations in Pennsylvania leading to a reduction in expenses.]
Group4 Labs Inc. – The manufacturer of nanoelectronics devices will expand by placing a
new R&D center near Syracuse in partnership with the College of Nanoscale Science and
Engineering, SUNY, Albany.1874 The facility is expected to grow to about 94 jobs by
2015.1875
Toyota Motor Corp. – See details in Toyota’s 2010 San Antonio event. It isn’t clear how
many jobs will be gained in Canada because of the move of Corolla production to
Ontario.1876
Toyota Motor Corp. – See details in Toyota’s 2010 San Antonio event. It’s difficult to
determine which factory in Japan was given work that had been done in Fremont. In 2015,
the Takaoka plant is shown as producing Corollas, a plant that had opened in September
1966.1877 However, it’s unclear if that is where the work shifted to in 2010.
Toyota Motor Corp. stopped making vehicles at the NUMMI plant in early 2010.
Manufacturing of Tacoma midsize pickups will be shifted to Texas while the Corolla will
shift to a plant in Canada.1878 (Note: Production also shifted from California to Mississippi,
247
Alameda ↔
Fremont
Texas > Austin
NJR
N$R
NQF
#PB
}REL
Alameda ↔
Fremont
Tennessee >
Chattanooga
NJR
N$R
NQF
#HQ
}CLO
}REL
Alameda ↔
Hayward
Kansas >
Lawrence
126
$7
40
#PB
}CDO
Alameda ↔
Livermore
Illinois > Elmhurst
NJR
N$R
NQF
#HQ
#SO
}CLO
}REL
Alameda ↔
Livermore
Singapore >
Singapore
300
N$R
NQF
#AU
#CH
#MA
#RD
#SB
#SC
}OSO
}REL
Alameda ↔
Livermore
Alameda ↔
Pleasanton
Unknown >
Dispersed
Virginia > Fairfax
County
321
N$R
NQF
#AU
#MA
}CLO
}DSP
NJR
N$R
1.6
#CH
#SB
#SO
}CLO
}REL
Alameda ↔
San Leandro
Utah > Cedar City
NJR
N$R
16
#MA
}CLO
}REL
Butte ↔
Chico
Ohio > Orrville
NJR
N$R
NQF
#FP
#SB
}REL
which is noted in the 2011 category.) It is difficult to determine how much the facility
expanded to accommodate pickup production, but it appears that 1.8 million sq. ft. were
added to the 2.2 million sq. ft.1879 Previous industry moves include GM, which pulled out of
Fremont in 1982, Ford left Milpitas just 10 miles away, and GM closed in Oakland, Van
Nuys and South Gate.1880 (In fairness, it should be stated that Tesla purchased the
Fremont factory and at first used just 10% of it, but by April 2014 it occupied at least
50%.1881)
Vermillion – The molecular diagnostics company relocated its headquarters. “This move
allows us to take advantage of Austin’s strong talent pool and cost-effective environment
to continue to build the company,” said Gail S. Page, CEO. Research, quality work and
regulatory operations will remain in California, which is why this event isn’t shown as a
closure. Vermillion was once called Ciphergen Inc.1882
Wingard Quality Supply – The tire and wheel assembler is moving its headquarters and
some operations to serve Volkswagen’s new $1 billion Chattanooga plant.1883 It had been
a supplier to the NUMMI plant.
Plastikon Industries, Inc. – The contract manufacturer for the medical and healthcare
industry will locate a new manufacturing facility in Lawrence, creating 126 jobs. Plastikon
will purchase a 40,000- sq. ft. biopharmaceutical facility formerly occupied by Serologicals,
Inc. and use it to produce a sterile fluid product, investing more than $7 million.1884
Five Cubits, Inc. – The software company relocated its headquarters at the same time
Five Cubits replaced BMG Controls as the corporate brand. Five Cubits hired new
members in the finance department who helped quickly transition all administrative and
financial functions to the new location.1885
FormFactor, Inc. opened a new wafer probe card manufacturing facility and global
business center in Singapore in March, a cost-cutting move, where it will focus on design
and manufacturing engineering, supply chain management, global finance, as well as
other corporate and regional support functions. Also, one of its business units will make its
home in the new location.1886
Johnson Controls Inc. – The manufacturer of auto seats and consoles was set to close
its Livermore plant in March.1887 Additional information is difficult to locate.
MaxID Corp. – The software company, which produces biometric handheld devices for
identity purposes, will shift its headquarters to Fairfax County. The company also has
offices in Chesapeake, Virginia, the United Kingdom and South Africa.1888
Insituform Technologies Inc. – The manufacturer of pipe products is relocating its Bay
Area factory to Utah, leasing 16,000 sq. ft. of industrial space in Cedar City. The company
is a worldwide provider of cured-in place pipe (CIPP) and other technologies and services
for the rehabilitation of pipeline systems. The primary businesses consist of sewer,
drinking water and energy and mining pipeline rehabilitation and protection. 1889 The
company is HQ’d in Chesterfield, Missouri. Insituform is now a subsidiary of Aegion Corp.
Smucker Natural Foods – An undetermined number of jobs in marketing, accounting and
customer service will move to Ohio by summer, 2011.1890 Some history: California
residents and county officials delayed Smucker’s construction of a $3 million expansion to
its Chico juice bottling plant over a dispute over a permit. A company official said a four-to-
248
Contra Costa
↔ Concord
Ohio > Dublin
559
N$R
NQF
#DN
#HQ
#TP
#FP
#SB
}CLO
}REL
Contra Costa
↔ Lafayette
Arizona >
Phoenix
100
N$R
65
Contra Costa
↔ Richmond
Nevada > Reno
20
N$R
40
#DN
#MA
}CLO
}REL
Contra Costa
↔ Richmond
Foreign Nation >
Unknown
NJR
N$R
NQF
#GR
#MA
}OSO
}REL
Contra Costa
↔ Richmond
Georgia > Tate
22
N$R
NQF
#GR
#MA
}CLO
}REL
Fresno ↔
Fresno
Mexico > Acuña
120
N$R
NQF
#AU
#MA
}CLO
}REL
Kern ↔
Ridgecrest
Unknown >
Unknown
75
$2,000
NQF
#GR
}CAN
}CDO
six month delay could cost Smucker’s $200,000. It’s unclear whether the dispute
contributed to ill will, but it certainly didn’t help.1891
Pacer International Inc. moved its corporate headquarters to Ohio. in May 2010.1892 The
company is now owned by XPO Logistics.
Bell-Carter Foods, Inc. – The country’s largest producer of table olives (Lindsay brands)
opened a 65,000-sq. ft. plant in Phoenix with 100 employees for gift-basket
preparation.1893 And yet: “California is the only the state which grows almost all the olive
trees in the United States of America.”1894
RiteMade Paper Converters, Inc. will move its manufacturing and distributing facility.
Stephen Schwartz, CEO, said that Reno was selected due to Nevada’s favorable business
environment and availability of high quality commercial real estate. The company made it
clear that Nevada won out over California when it came time to upgrade “western
operations.” The move will begin in January 2011. RiteMade is a 100% employee owned
company and supplies paper to major companies such as Taco Bell, CVS, Subway,
Quizno’s, Staples, Kentucky Fried Chicken, PayLess Shoe Source, GNC and Hallmark
Cards.1895 The company is headquartered in Kansas City, Kansas.
SunPower Corporation Systems, a subsidiary of Pluto Acquisition Company, LLC.,
furloughed employees and on-site leased workers in producing mounting units for solar
systems because the company shifted such work to a foreign country. The Dept. of Labor
didn’t identify the community in that country, nor did it provide a figure for the number of
jobs lost, but it indicated that furloughs may have begun as early as Feb. 13, 2010.1896
Vetrazzo, which manufactures countertops out of recycled glass, was sold to Polycor,
which moved the operation to Georgia. Vetrazzo had employed about 40 people at its
peak in 2008.1897 [Along with efficiencies resulting from the acquisition, it’s conceivable
that the location decision was influenced by lower business and employee costs, taxes
and fewer regulations in Georgia leading to a reduction in expenses.]
Di-Pro Inc. – The manufacturer of truck brake components will furlough 120 employees as
operations relocate to Mexico. The company is owned by Ohio-based Bendix Commercial
Vehicle Services, which decided to consolidate operations. Acuña is just across the Rio
Grande from Del Rio, Texas.1898
Solar Millennium – in 2010 planned to build a California solar energy facility. However, it
diverted capital intended for the project to unknown projects elsewhere. The international
energy giant withdrew its application to build and city leaders argue that the state’s
environmental regulations helped kill the project. The Ridgecrest Daily Independent
reported: “Solar Millennium’s proposal placed a nearly 4,000-acre solar field five miles
outside of city limits that would have employed many full and part-time workers from the
area. Months ago, however, the project was halted when the company was required to
conduct an environmental study on the Mohave ground squirrel that would have spanned
a few years.... [S]hortly before it would have begun the study, the company officially
withdrew its application, citing concerns over economic viability .... The project would have
netted over 700 jobs in the first two years ... and 75-100 permanent positions thereafter,
with a $2 billion investment initially and tens of millions year after year.”1899
249
40
N$R
NQF
#SB
}OSO
}REL
Unknown >
Dispersed
167
N$R
200
#MA
#PL
}CLO
}DSP
Los Angeles
↔ Claremont
Unknown >
Dispersed
25
N$R
NQF
#FP
#MA
}CLO
}DSP
Los Angeles
↔ El
Segundo
Arizona >
Chandler
80
N$R
NQF
#RD
#SC
}CDO
Los Angeles
↔ El
Segundo
Los Angeles
↔ El
Segundo
Texas > Dallas
NJR
N$R
NQF
#IT
}REL
Virginia > New
River Valley
100
N$R
NQF
#SB
}CDO
Los Angeles
↔ El
Segundo
Los Angeles
↔ Glendale
Iowa >
Marshalltown
140
N$R
NQF
#SB
}CDO
India > Unknown
NJR
N$R
NQF
#EN
#ET
#GA
#QA
}OSO
}REL
Los Angeles
↔
Chatsworth
Philippines >
Unknown
Los Angeles
↔ City of
Industry
Ikano Communications, Inc. furloughed employees involved in customer support,
technical support and billing because the company shifted the work to the Philippines. The
Dept. of Labor didn’t identify the community in that country, nor did it provide a figure for
the number of jobs lost, but it indicated that furloughs may have begun as early as Feb.
13, 2010.1900
Pactiv Corp. – will close one of two City of Industry packaging plants in March 2011,
affecting 167 employees.1901 The 200,000-sq. ft. facility produces polystyrene (a
petroleum-based plastic) containers used in fruit and vegetable packaging. Pactiv operates
another packaging plant in the City of Industry that will be unaffected. Pactiv is known for
making Hefty brand products such as waste and storage bags and disposable tableware
and cookware.1902 Three years later, the company announced it is investing $52 million to
expand a manufacturing and distribution facility in Salt Lake City, creating 60 jobs in the
process.1903 However, it is difficult to determine which of the company’s products are
involved; therefore, for purposes of this report, the closure is not listed as a relocation to
Utah. Still, one cannot help but notice that the new facility was not built in California.
Rich Product Corp. – The food processor closed its Claremont plant after nearly 40
years. A producer of nondairy whipped-topping moved production to other U.S. sites.
Some employees took advantage of the company’s offer to transfer out of state.1904
International Rectifier Corp. – The semiconductor firm, which was founded in 1947 in
Los Angeles, will open a new R&D facility in Chandler. CEO Oleg Khaykin said Arizona
was chosen over unspecified competing sites because of its “vibrant semiconductor
industry,” pool of highly qualified labor, good quality of life, affordable housing and the
state’s “business friendly, no-nonsense, can-do attitude.” He said Silicon Valley continues
to attract engineers out of college, but those same engineers later reconsider living costs
when they’re ready to start a family.1905
CB Richard Ellis will relocate an unknown number of IT jobs from El Segundo to Dallas at
the same time that it closes its Newport Beach office.1906
DirecTV – The company is creating a Virginia call center in collaboration with a customer
service company, Convergys. A senior VP at DirecTV said, “We chose this area of Virginia
for its strong work ethic and robust broadband infrastructure that is essential to support a
virtual call center.” The employees will work from home.1907 [Along with the reasons cited,
it’s conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Virginia leading to a reduction in expenses.]
DirecTV arranged with a call-center company, Thomas L. Cardella & Associates, to
provide all positions with guaranteed pay increases every six months, paid training and a
comprehensive benefits package.1908 The company is now known as TLC & Associates.
Disney Interactive Studios, Disney Interactive Media Group, furloughed employees and
on-site leased workers involved in production and quality assurance of video games
because the company shifted the work to India. The Dept. of Labor didn’t identify the
community in that country, nor did it provide a figure for the number of jobs lost, but it
indicated that furloughs may have begun as early as July 12, 2010.1909 A WARN Notice
indicates that the company furloughed 54 Glendale employees in early 2011,1910 but since
250
Los Angeles
↔ Hawthorne
Indiana >
Seymour
200
$7
100
#GR
#MA
#PL
#RD
}CDO
Los Angeles
↔ Inglewood
Kentucky >
Lexington
NJR
N$R
NQF
#HQ
#NP
}CLO
}REL
Los Angeles
↔ La Mirada
Texas > Wichita
Falls
40
N$R
100
#CP
#MA
}CLO
}REL
Los Angeles
↔ Long
Beach
Utah >
Washington
NJR
N$R
NQF
#HQ
#MA
}CLO
}REL
Los Angeles
↔ Long
Beach
Arkansas >
Marion
25
$20
NQF
#AU
#MA
}CLO
}REL
Los Angeles
↔ Long
Beach
Mexico >
Unknown
28
N$R
NQF
#CS
#MA
}OSO
}REL
it’s uncertain how many lost their jobs because of outsourcing, no furlough figure will be
reported for this event.
Cereplast Inc., which manufactures renewable plastics that substitute for petroleumbased products, opened a new facility in the Midwest. Cereplast said it’s “moving all R&D
and production lines to its much larger state-of-the-art facility” in Indiana, which “will allow
us to reduce drastically our costs compared to California from real estate to utilities,” said
Frederic Scheer, founder, chairman and CEO. “This will improve cash flow and allow us to
focus on our strengths.’”1911 The company will equip a 100,000-sq. ft. plant where it
expects to create more than 200 jobs over the next three years.1912 In June 2010,
Cereplast said one reason for its Q1 2010 gross profit margin increase of 31.6% is due in
part to cost savings at its new Indiana facility.1913 This event is separate from the 2013
closure of the California HQ and its move to Indiana.
Race Track Chaplaincy of America – The non-profit group said it had wanted to relocate
from the Hollywood Park Race Track for several reasons, one of which is the significant
cost of doing business on the West Coast. The RTCA had been located at Hollywood
Park, a thoroughbred race course in Inglewood, near LAX. The group, consisting of
Interdenominational Christian Chaplains, specializes in ministering to and undertaking
charitable works for the spiritual, physical, emotional and social needs of individuals
involved in horse racing at 101 racetracks in North America and 20 internationally.1914
Latex International – The manufacturer of foam mattress components will close its plant
in December 2010, consolidating into a new 100,000 sq. ft. facility in Texas. The Orange
County Register, relaying a report from a trade publication, Furniture Today, said the
company has about 40 employees at the plant. Also, Latex International is building a
251,000-sq. ft. manufacturing plant in Johor Bahru, Malaysia, scheduled to open in
2011.1915
Fasst Company – The maker of parts for dirt bikes said of the move: “We leased a
building June 1 and our business operations were up and running Aug. 1,” said partner
Chris Tidwell. “The reason is to lower our rent, lower taxes, lower utilities that enhance our
position in our industry.” Tidwell estimates the savings will be 25% to 30% of costs in
California.1916
Hino Motors Manufacturing USA Inc. – The company is moving equipment to Arkansas
to expand its truck-frame line. The finished parts are trucked to Williamston, W.Va., where
all Hino trucks sold in the U.S. are assembled, and to a plant in Ontario, Canada., Hino
Motors President Yasuo Tanigawa said ceasing production in Long Beach was justified
because it “was not a suitable location.”1917 [Along with that reason, it’s conceivable that
the location decision was influenced by lower business and employee costs, taxes and
fewer regulations in Arkansas leading to a reduction in expenses.]
Southwire Co. furloughed employees producing flexible metal conduits and metal clad
cable for the commercial construction industry because the company shifted production of
those products to Mexico. The Dept. of Labor didn’t identify the community in that country,
but it indicated that furloughs may have begun as early as April 27, 2010. The California
Employment Development Department indicated that 28 jobs would be lost.1918 It appears
that the company has two plants in Mexico – in Monterrey and Tecate.
251
Los Angeles
↔ Long
Beach
Oklahoma >
Oklahoma City
550
N$R
NQF
#AE
#MA
}REL
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
China > Suzhou
NJR
N$R
NQF
}OSO
}REL
China > Shezhen
NJR
N$R
NQF
}OSO
}REL
Harman International Industries Inc. – See the company’s 2010 Shanghai event for
more information.
China >
Shanghai
NJR
$75
NQF
#MA
#RD
}OSO
}REL
Los Angeles
↔ Los
Angeles
Mexico >
Unknown
72
N$R
NQF
#MA
}OSO
}REL
Los Angeles
↔ Los
Angeles
Chile > Santiago
NJR
N$R
NQF
#GR
#RD
}OSO
}REL
Los Angeles
↔ Los
Angeles
India > Unknown
NJR
N$R
NQF
#BF
}OSO
}REL
Los Angeles
↔ Los
Angeles
Texas >
Lewisville
NJR
N$R
NQF
Harman International Industries Inc. – The company invested $75 million to establish
manufacturing and R&D operations in Shanghai, Suzhou and Shenzhen.1920 Meanwhile,
employee ranks in its facilities in the Northridge neighborhood of Los Angeles continue to
decline, with the latest example being Harman’s elimination of 48 Northridge jobs in
September. Since it isn’t clear those losses are related to this outsourcing event, the
number is excluded from this report.
JBL Incorporated (subsidiary of Harman International Industries Inc.) furloughed
employees and on-site leased workers in its facility in the Northridge section of Los
Angeles, workers who were manufacturing loudspeakers, because the company shifted
work to Mexico. The Dept. of Labor didn’t identify the community in that country, nor did it
provide a figure for the number of jobs lost, but indicated that furloughs may have begun
as early as June 25, 2010.1921 The JBL Division cut 72 jobs at the end of June.1922 A
Harman SEC filing shows facilities in Tijuana, Juarez and Queretaro, Mexico. 1923
Aeterna Sol – George Cadena packed up his solar-panel startup and moved to South
America, encouraged by Start-Up Chile, a program designed to entice 25-handpicked start
ups to bootstrap their businesses in Chile for six months. By 2011, Cadena joined with five
other entrepreneurs and created De Emprededores, Para Emprededores (By
Entrepreneurs, For Entrepreneurs), or De-Pe, where they offer entrepreneurship classes
for beginners.1924
Bank of America, N.A., Global Trade Operations Division, furloughed employees and onsite leased workers because the company shifted customer and fulfillment services to
India. The Dept. of Labor didn’t identify the community in that country, nor did it provide a
figure for the number of jobs lost, but it indicated that furloughs may have begun as early
as Jan. 3, 2010.1925 Also, WARN Notices are unclear because of a multitude of furloughs
in the L.A. area, which could be for many reasons; hence, in this report, no furlough figure
is included.
The Tribune Company – parent company of the Los Angeles Times – announced that its
new subsidiary, Blue Lynx Media LLC, opened a shared service center in Texas. It’s
expected to create as many as 200 jobs in back-office operations – a new “central
business office” for Tribune’s nationwide operations. “Centralizing financial transactional
processing in a low-cost manner is key to the Tribune gaining efficiencies,” said Nick Cory,
president of Blue Lynx Media. The company estimates the shared service center will save
Tribune tens of millions annually. The transition of all financial transactions to the center
Boeing Co. will transfer about 550 jobs to Oklahoma starting in 2011 and be completed by
the end of 2012. Some workers will be relocated while other positions will be filled by
personnel in Oklahoma at Boeing’s facility near Tinker Air Force Base. A Boeing
spokesman said, “We were looking at the cost structure and we believe we are going to
create a lower cost structure [in Oklahoma] than in California.”1919
Harman International Industries Inc. – See the company’s 2010 Shanghai event for
more information.
252
11
N$R
NQF
#DO
#ET
#HQ
#SO
}REL
Unknown >
Dispersed
200
N$R
NQF
#DO
#EN
#ET
#GA
#IT
#QA
}DSP
}OSO
}REL
Argentina >
Unknown
229
N$R
NQF
#EN
#ET
#GA
#QA
}OSO
}REL
Los Angeles
↔ Los
Angeles
Texas > Austin
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
will take place over the course of 18 months (from August 2010). Tribune selected
Lewisville in part because the City of Lewisville provided personal property and workforce
development incentives to facilitate the deal.1926 Tribune evaluated several offices in the
area before leasing a 59,000-sq. ft. office in the Convergence business park.1927 A search
of news sources generally available to the public did not surface Los Angeles Times
coverage of the event. However, the Chicago Tribune carried a story, mentioning that
Indianapolis was weighed as a possible site – “But Lewisville offered financial incentives
that ultimately tipped the scales toward basing the operation there.”1928 The Morning Call
in Allentown, Pa., another Tribune property, also carried a story, reporting that Blue Lynx
Media employees may do the work of more than 300 employees across the company.
Although some workers will relocate to Blue Lynx, the event is expected to eventually
result in a net reduction of 100 or more jobs companywide. Between 25 and 30 people
work in The Morning Call’s accounting, billing and collections departments.1929 The Los
Angeles Times furloughed employees in L.A. during 2010,1930 however since the Tribune
Company was in bankruptcy, it is unclear how many layoffs were attributable to a shift of
work to Texas. Hence, no employment-loss figure is included in this report for this event.
Blue Lynx Media is still going strong as shown by June 15 to July 21, 2015 job postings for
accountants, auditors and clerks.1931 Lewisville is about 20 minutes north of DFW Airport.
[Along with the reasons cited, it’s conceivable that the location decision was influenced by
lower business and employee costs, taxes and fewer regulations in Texas leading to a
reduction in expenses.]
Cinsay, Inc., an e-commerce media and software company, HQ’d in the Century City part
of L.A., moved its headquarters to Austin in April 2010. Up until then, the company had
received $13 million during two rounds of angel investments.1932 A year later, Cinsay grew
by purchasing Dallas-based LaunchFish for an undisclosed amount.1933 Cinsay has
marketing deals with large firms such as Chevron/Texaco, Caesars Entertainment Group,
“The American Outdoorsman” and Chicken Soup For the Soul brands. The company also
formed a health-beauty-skin-personal care subsidiary called CinsaYtions.1934
Electronic Arts / Pandemic Studios furloughed employees and on-site leased workers
involved in its Playa Vista (West L.A.) Quality Assurance Dept. involved in production and
quality assurance of video games when the work was shifted to a foreign country. The
Dept. of Labor didn’t identify the country, nor did it provide a figure for the number of jobs,
but it indicated that furloughs may have begun as early as Feb. 15, 2010.1935 CEO John
Riccitiello described California as a “bloody expensive” place to employ workers, saying it
costs two to three times more to employ developers in that state than it does in Montreal,
the U.K., eastern Europe or China, all regions where EA has developers and artists at
work. He said, “For good or for bad, we are taking down headcount in California because it
is really expensive.”1936
Electronic Arts, Inc. furloughed workers and the “employment decline is related to the
shift in production of quality assurance services related to the production of video games
to a foreign country. The Dept. of Labor didn’t identify the community in that country, nor
did it provide a figure for the number of jobs lost, but it indicated that furloughs may have
begun as early as Feb. 15, 2010.1937
253
Los Angeles
↔ Los
Angeles
Florida > Navarre
16
N$R
NQF
#CS
#DN
#HQ
#RW
}CLO
}REL
Los Angeles
↔ Los
Angeles
China > Dandong
NJR
$50
NQF
#AU
#MA
#RD
}CDO
}OSO
Los Angeles
↔ Los
Angeles
Washington >
Seattle
35
N$R
NQF
#EN
#ET
#SO
}CDO
Los Angeles
↔ Los
Angeles
Texas > Austin
600
$21
206
#DO
#IT
#SB
#SO
}REL
Los Angeles
↔ Los
Angeles
Florida > Tampa
NJR
N$R
NQF
#HQ
#EN
#SO
}REL
Frama-Tech Inc. – The wholesale and distribution company for specialty construction
materials relocated its headquarters to Florida. Owner Rob Hamer said: “‘We’re not a large
company, but they rolled out the red carpet on us and spent a couple of hours with us in
that initial meeting and essentially laid out the case that the Panhandle of Florida generally
and Santa Rosa County more specifically was a great place to locate a business. I can’t
tell you after living in the Los Angeles area and running a business there for the last 11
years what a change that was from the way we were treated by government and pseudogovernment groups in that area, where you basically try to avoid them because all they
want to do is tax you or penalize you.”1938 The company retained a facility in Los Angeles.
Harman International Industries, Inc. – As employee ranks in Northridge continue to
decline, the company will invest millions of dollars to bolster its manufacturing and R&D
capabilities in China. From its new automotive electronics and audio systems operation
there, Harman will conduct development, engineering, and manufacturing for automakers.
A second operation will house engineering and manufacturing for products sold in other
sectors. Harman said it’s “positioning itself to capture a growing share of China’s
expansion in automotive, professional and consumer audio products and services” but
also said Harman serves many other global auto brands.1939
Hulu LLC, the online TV and movie service, will open a development center in Seattle by
the end of the year, expanding to the city in search of engineering talent -- the “brightest
and best software developers” there. Hulu didn’t say how many people the company plans
to hire.1940 By 2014, the company employed 35 in Seattle.1941 Note: In 2015, Hulu is HQ’d
in Santa Monica; when this event occurred, it was HQ’d in L.A.; hence, the event is
assigned to the City of Los Angeles. [Along with the reasons cited, it’s conceivable that the
location decision was influenced by lower business and employee costs, taxes and fewer
regulations in Washington leading to a reduction in expenses.]
LegalZoom.com Inc. – A dispute over city taxes sparked a move to leave Los Angeles
and creation of an office in Austin. A company official said: “With this business tax, the
economic costs don’t justify staying here. Physical location is not important to us as an
Internet business.” Growth will occur in Texas.1942 About Austin, President Frank
Monestere said, “It wasn’t just the cost savings, the work force or the schools. We chose
Austin because it was a real cultural fit for our business.” The company plans to hire 600
workers in Austin over the next five years. Monestere said. “We wanted to keep everybody
together in LA. When you start a new office, a big concern you have is how do you keep
continuity in the company’s culture?” But the fact that 35 of the company’s 400 employees
asked to move to Austin – more than expected – made a big difference, said Mike Wilson,
VP-Operations. Now they’re getting settled and some are buying homes for the first time.
“We never expected that many people would want to relocate,” said Wilson. “We take that
as a sign that we made the right decision.”1943 The move led the company to later
purchase a 206,000-sq. ft. building for $21 million in the Davis Springs Spectrum Business
Park.1944 Also, the company’s HQ moved from the City of Los Angeles to nearby Glendale,
Calif.
Momentum Mobile – The mobile application development and design company, founded
in 2008 in L.A., is putting its headquarters in Florida, which the company calls “a growing
hot spot for software development firms.” According to Founder & CEO Christopher
254
Los Angeles
↔ Los
Angeles
Tennessee >
Nashville
NJR
N$R
NQF
#ET
#HQ
#SB
}REL
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
Great Britain >
London
NJR
N$R
NQF
#ET
#HQ
}OSO
}REL
Philippines >
Unknown
NJR
N$R
NQF
#PB
#SB
}OSO
}REL
Los Angeles
↔ Los
Angeles
Canada, British
Columbia >
Vancouver
NJR
N$R
NQF
}CDO
}OSO
Los Angeles
↔ North
Hollywood
Texas > Austin
65
N$R
NQF
#DO
#EN
#ET
#PA
#SO
#HQ
#EN
#SB
#SO
Los Angeles
↔ Norwalk
Florida > Naples
50
$4
NQF
#MA
}CLO
}REL
Los Angeles
↔ Pomona
Texas >
Carrollton
339
$4.6
85
#HQ
#SB
}REL
Los Angeles
↔ Rancho
Dominguez
Mexico >
Unknown
NJR
N$R
NQF
#MA
#PB
}OSO
}REL
}CLO
}REL
Young, the expansion will allow more focus on development for the Android and iPhone
applications.1945 [Along with the reasons cited, it’s conceivable that the location decision
was influenced by lower business and employee costs, taxes and fewer regulations in
Florida leading to a reduction in expenses.]
Obedia – The music and audio technology firm moved its headquarters. The company
provides training, technical support, contract labor and consultancy services. “The move to
Nashville puts us in a better position to work closely with its vibrant music community,
which has embraced technology in producing music known throughout the world,” said cofounder/CEO Jayce Murphy. The company retained a California office.1946
Shine International. A growing entertainment-related international sales/distribution unit is
moving its HQ to England. “Shine International, which sells such successful television
formats as ‘MasterChef’ and ‘The Biggest Loser,’ will keep a small presence in L.A.1947
WellPoint, Inc., The WellPoint Companies, Inc., Blue Cross of California, Cash
Applications – Claims, in Woodland Hills, a section of the City of Los Angeles, furloughed
employees and on-site leased workers supplying health insurance services because the
company shifted the work to the Philippines. The Dept. of Labor didn’t identify the
community in that country, nor did it provide a figure for the number of jobs lost, but it
indicated that furloughs may have begun as early as Feb. 14, 2010.1948
Digital Domain – The Academy-Award-winning visual effects studio is expanding big-time
in Canada to help reduce costs while delivering quality work. The office opened the first
week in January 2010.1949 The Los Angeles location is in the Venice Beach section of the
city.
Bankers Toolbox – The financial industry software and wire processing company moved
its headquarters. CEO Daniel Cho said that Austin has “an incredible amount of local
talent that we can tap into, In addition, the lower cost of living in this location is much
closer to the national median, which allows us the opportunity to invite even more top-tier
individuals to join our team.”1950 Cho also said, “We moved 20 people, and they’re at home
here.” The company grew to 45 employees by 2011 1951 and 55 employees with plans to
hire more.1952 [Along with the reasons cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Texas
leading to a reduction in expenses.]
Haynes Corp. – The precision parts manufacturer is closing some Norwalk operations and
moving jobs to Florida. The family-owned business, has major companies for customers,
such as General Electric, General Motors and Caterpillar.1953
Vendor Resource Management (VRM), a real estate management company, relocated
its headquarters and opened its new $4.6 million, 85,000-sq. ft. headquarters in the Dallas
suburb of Carrollton, where is created 339 jobs. VRM also has staff at a second location in
Pomona.1954
Avalon Laboratories, LLC furloughed employees producing catheters because the
company shifted such work to Mexico. The Dept. of Labor didn’t identify the community in
that country, nor did it provide a figure for the number of jobs lost, but it indicated that
furloughs may have begun as early as Feb. 13, 2010. 1955
255
NJR
N$R
NQF
#PB
#RD
}REL
15
N$R
NQF
#MA
#SB
}OSO
}REL
Virginia >
Strasburg
150
$21.2
NQF
#HQ
#LP
}CLO
}REL
Los Angeles
↔ Santa Fe
Springs
Foreign Nation >
Unknown
NJR
N$R
NQF
#AU
#MA
}OSO
}REL
Los Angeles
↔ Santa
Monica
Texas > Austin
50
N$R
NQF
#EN
#HQ
#SO
}CLO
}REL
Los Angeles
↔ Santa
Monica
Ohio > Columbus
1,000
$400
NQF
#AU
#GR
#MA
}UTN
Los Angeles
↔ Santa
Monica
Texas > Austin
NJR
N$R
NQF
#BF
#HQ
}REL
Los Angeles
↔ South
Pasadena
Canada >
Unknown
NJR
N$R
NQF
#MA
#PB
}CLO
}OSO
}REL
Los Angeles
↔ San
Marino
Texas >
Georgetown
Los Angeles
↔ Santa Fe
Springs
Foreign Nation >
Unknown
Los Angeles
↔ Santa Fe
Springs
Viral Genetics Inc. (VG Life Sciences), a biotechnology company specializing in
autoimmune therapy, is moving its research facilities to the life science cluster in
Georgetown.1956 The company’s HQ remains in California and at some point moved from
San Marino to Santa Barbara.
Jeunique International, Inc. furloughed employees producing and procuring women’s
apparel because the company shifted the work to a foreign nation. The Dept. of Labor
didn’t identify the community in that country, nor did it provide a figure for the number of
jobs lost, but it indicated that furloughs may have begun as early as Feb. 13, 2010. 1957
Mercury Paper Inc. moved its North American headquarters to an expanding paperproducts plant in Virginia. Its parent company, Sinar Mas Group, HQ’d in Shanghai, made
the largest-ever investment in Virginia by a Chinese-owned manufacturer. “Low operating
costs” was a factor. The company says that the facility is on a 15-acre site with a “stunning
view” of the mountains and the Shenandoah Valley.1958
VIAM Manufacturing, Inc., CA Facility Division, a subsidiary of Japan Vilene Company,
Ltd., furloughed employees and on-site leased workers because the company shifted
production of automotive floor, trunk, and cargo mats to a foreign country. The Dept. of
Labor didn’t identify the community in that country, nor did it provide a figure for the
number of jobs lost, but it indicated that furloughs may have begun as early as Oct. 6,
2010.1959
Accruent Inc. – The real estate-related software developer expanded by opening an office
in Austin for product management and engineering, as well as operations and support.
However, later it was learned this was a headquarters move,1960 verified by the company’s
website.1961 The company plans to employ 50 people by year’s end.1962 [It’s conceivable
that the location decision was influenced by lower business and employee costs, taxes
and fewer regulations in Texas leading to a reduction in expenses.]
Coda Holdings Inc. a company in the electric car and battery space considered California
for a planned automotive-grade lithium ion battery manufacturing facility. Lio Energy
Systems, a joint venture with Lishen Power Battery, would operate the facility. But the
focus switched to Ohio. Lio Energy Systems operates a major facility in China with the
capacity to produce more than 20,000 battery packs per year, which the proposed Ohio
facility would replicate.1963 The possibility of 1,000 new Ohio jobs was contingent on the
approval of federal and state aid. The largest sum of money will need to come from the
U.S. DOE, about $400 million to $500 million, part of a loan-guarantee program for cleanenergy auto production.1964 However, the company went bankrupt and it withdrew its
application for a federal loan to build the California factory.1965
Dimensional Fund Advisors – The global money management firm, which already
expanded into Austin, decided to place its headquarters in the city.1966 In a Forbes column,
Rex Sinquefield, company co-founder, said DFA “now can be counted as one of the many
companies that has moved its headquarters from California. DFA employees now enjoy a
big increase in take-home pay and are generously contributing their hard-earned dollars to
Austin’s local economy.1967
Abbott Laboratories – of this major pharmaceutical and medical supply company’s
clinical chemistry plant – “The facility was closed and the manufacturing of 12.5% of the
products previously manufactured at Abbott’s facility in South Pasadena ... was transferred
256
Los Angeles
↔ South
Pasadena
Los Angeles
↔ Sylmar
Unknown >
Dispersed
NJR
N$R
NQF
}DSP
}REL
Foreign Nation >
Unknown
NJR
N$R
NQF
#BF
}OSO
}REL
Los Angeles
↔ Torrance
Foreign Nation >
Unknown
NJR
N$R
NQF
#MA
}OSO
}REL
Los Angeles
↔ Unknown
Nevada > Reno
NJR
N$R
NQF
#DN
#CP
}CLO
}REL
Los Angeles
↔ Van Nuys
Los Angeles
↔ Van Nuys
Philippines >
Unknown
Costa Rica >
Unknown
NJR
N$R
NQF
NJR
N$R
NQF
#DN
#SB
}OSO
}REL
Los Angeles
↔ Westlake
Village
Florida > Port St.
Lucie
70
N$R
NQF
#DO
#EN
#ET
#PA
#SO
}REL
Los Angeles
↔ Whittier
Nevada > Reno
50
N$R
390
#DN
#TP
}CLO
}REL
Mendocino ↔
Ukiah
Georgia >
Calhoun
NJR
N$R
NQF
#CP
}REL
}OSO
}REL
to vendor manufacturing facilities in Canada, and the manufacturing of the other 87.5% of
products was transferred to vendor manufacturing facilities in the U.S.” The workers
manufactured reagents, buffers, and calibrators. In doing so, it furloughed employees and
also on-site leased workers. The Dept. of Labor didn’t identify the community in that
country, but it stated that 75 jobs were lost and that furloughs may have begun as early as
Feb. 18, 2010.1968 Since it’s unknown how many jobs were attributed to offshoring, for
shifted to which locations, the furlough figure will be excluded from this report.
Abbott Laboratories – See the Canada entry for the company for 2010 for more
information about this event.
Sigue Corp., furloughed employees and on-site leased workers engaged in wire money
transfer and check cashing services because it shifted the work to a foreign country. The
Dept. of Labor didn’t identify the country, nor did it provide a figure for the number of jobs
lost, but indicated that furloughs may have begun as early as Feb. 7, 2010.1969
Ball Metal Beverage Container Corp., a subsidiary of Ball Packaging Corp., furloughed
employees and on-site leased workers producing aluminum beverage cans because the
company shifted such work to a foreign country. The Dept. of Labor didn’t identify the
country, nor did it provide a figure for the number of jobs lost, but it indicated that furloughs
may have begun as early as Feb. 13, 2010.1970
Kyjen Co. – The company changed third-party logistics companies and warehouse from
one in the South Bay to one in Reno.1971 What the location was in the South Bay is
unknown.
Moulton Logistics Management – See the 2010 Costa Rica entry for this company for
more information about this event.
Moulton Logistics Management, Call Center Services Division, furloughed employees
and caused on-site leased workers providing call center services because it shifted the
work to the Philippines and Costa Rica. The Dept. of Labor didn’t identify the community in
that country, nor did it provide a figure for the number of jobs lost, but it indicated that
furloughs may have begun as early as Feb. 11, 2010.1972
In-Three – The pioneer in converting movies into 3-D was purchased by Digital Domain
and most of the 70 jobs will go to Florida. CEO Cliff Plumer said, “I’d rather keep the jobs
in California,” but Florida is “more economical than California, I’m sorry to say,” Plans are
in the works for a Digital Domain Institute in West Palm Beach, a four-year program in
advanced digital media supported by Florida State University.1973
Ryder Integrated Logistics – The company will move into 390,000 sq. ft. of space in
Reno.1974 The Whittier Daily News reported that the company is one of the city’s top 25
sales-tax producers. The distribution center apparently opened in the 1960s. In 1984, it
was expanded to handle all shipping, repair and service operations in nine western states,
including California. At the time it employed 400 people and was expected to grow even
larger. But since then, the number of employees has declined to 50 jobs.1975
Carousel Carpet Mills – Robertex Associates, a nationwide carpet company, purchased
the company and moved equipment and operations to Georgia.1976 [Along with efficiencies
resulting from the acquisition and consolidation, it’s conceivable that the location decision
257
Merced ↔
Merced
Wisconsin >
Madison
60
N$R
NQF
#AU
}CLO
}REL
Merced ↔
Merced
Unknown >
Dispersed
42
N$R
NQF
#FP
#MA
}CLO
}DSP
Merced ↔
Merced
Foreign Nation >
Unknown
140
N$R
NQF
#CP
#MA
}OSO
}CLO
}OSO
Napa ↔
Napa
Texas > Austin
40
N$R
NQF
#EN
#PF
#SO
}CLO
}REL
Orange ↔
Aliso Viejo
Pennsylvania >
McCandless
230
$3
54
#EN
#RD
#SO
}CDO
Orange ↔
Anaheim
Mexico > Agua
Prieta
308
N$R
700
#MA
}OSO
}REL
Orange ↔
Brea
Indiana >
Indianapolis
95
$18.2
NQF
#PB
}CDO
Orange ↔
Costa Mesa
Pennsylvania >
Fort Washington
269
N$R
NQF
#BF
#SB
}CLO
#REL
was influenced by lower business and employee costs, taxes and fewer regulations in
Georgia leading to a reduction in expenses.]
Arvin Sango, Inc. – The manufacturer closed its plant after nearly 15 years of serving the
now-closed NUMMI plant. Equipment was shipped Wisconsin where it will be used to
supply parts for a Toyota plant in Texas. It appears that the company’s other plants in
Indiana and Kentucky remain in operation.1977
Pepsi Beverages Co. will close its Merced plant on Dec. 8. The plant employs 42 people
and has been around for more than 40 years. The facility only produces cans of soda, not
bottles, and apparently consumers want beverages in plastic bottles.1978 Pepsi continues
to operate canned-product production plants in other parts of the nation.
Werner Ladder Co. closed its manufacturing facility, ending 140 jobs; the plant produced
fiberglass and aluminum ladders. A distribution center there will remain open. Last year,
Werner made 1.1 million ladders in Merced.1979 The Pennsylvania-based company has
operations worldwide, so it’s unclear to which other locations production was moved. The
Dept. of Labor failed to specify which country, but indicated that furloughs may have begun
as early as Sept. 12, 2010.1980
New Media Learning (Workplace Answers) – The workplace compliance training firm
HQ’d in Napa opened an office in August in Austin with 40 people. Details are difficult to
come by, but by November 2013 that office in Austin became their headquarters address.
The company acquired Workplace Answers (also with an Austin HQ) and will operate
under that name. New Media Learning’s LinkedIn page showed the headquarters in
Austin, not Napa.1981 [Along with efficiencies resulting from an acquisition, it’s conceivable
that the location decision was influenced by lower business and employee costs, taxes
and fewer regulations in Texas leading to a reduction in expenses.]
Smith Micro Software Inc. The software company will create a new R&D facility in
McCandless, near Pittsburgh, in an office park on 36 wooded acres in suburban North
Hills, a site capable of handling its data center requirements. The company estimates it will
hire 230 people to work in the facility.”1982 [It’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in
Pennsylvania leading to a reduction in expenses.]
Alstyle Apparel – The clothing manufacturer transferred its knitting and dyeing operations
in Anaheim to a new 700,000 sq. ft. plant in Mexico located near the Arizona border. The
move is seen as a way to lower costs and increase production capabilities. Alstyle is a
wholly owned subsidiary of Ennis, Inc.1983 According to the Dept. of Labor, furloughs may
have begun as early as Jan. 12, 2010.1984
Beckman Coulter Inc. – The biomedical test instrument maker is creating a new facility in
Indianapolis, its third expansion in the city in four years. Lori Gabrek, general manager at
Coulter, said, “The area offers a favorable business environment and lower total cost of
operations, plus a local work force with strong skills in both engineering and
manufacturing. Our operations here have become a Center of Excellence for our discovery
products – those developed for life science research and drug discovery.”1985
Ditech – The unit of GMAC Financial Services mortgage subsidiary Residential Capital,
LLC, will close its Costa Mesa headquarters and move it to Pennsylvania. All Costa Mesa
258
Orange ↔
Foothill
Ranch
Mexico >
Tiajuana
Orange ↔
Garden
Grove
Mexico > Tijuana
Orange ↔
Huntington
Beach
NJR
N$R
NQF
#MA
#PB
}OSO
}REL
35
N$R
NQF
#MA
}OSO
}REL
Colorado >
Centennial
NJR
N$R
NQF
#DN
#HQ
#MA
#TP
}CLO
}REL
Orange ↔
Huntington
Beach
Colorado >
Centennial
9
N$R
NQF
#CP
#DO
#HQ
#SB
}CLO
}REL
Orange ↔
Huntington
Beach
Foreign Nation >
Unknown
NJR
N$R
NQF
#CL
}OSO
}REL
Orange ↔
Irvine
Foreign Nation >
Unknown
NJR
N$R
NQF
#MA
}OSO
}REL
employees were laid off and the work will be done by ResCap employees in Fort
Washington.1986
Flextronics International USA, Inc., Infrastructure Div., furloughed employees and onsite leased workers in Foothill Ranch and San Diego producing disposable medical
devices or engaged in related activity because the company shifted the work to Mexico.
The Dept. of Labor didn’t provide a figure for the number of jobs lost, but it indicated that
furloughs may have begun as early as May 3, 2010.1987
Bazz Houston Co. – The specialty parts manufacturer with U.S. facilities also is a maquila
company in Mexico. It struggles with rising costs on supplies and new regulations. A
California company since 1974, it expects to move more jobs to Mexico. CEO Javier
Castro said, “Even if the economy improves significantly in the near future, it’s still going to
be difficult for us to remain competitive and keep building our business in Southern
California. It just seems like we’re facing a storm of rising insurance and regulatory
costs.”1988
Imperial-Newton Inc. – The manufacturer of wrenches and other equipment is moving all
operations to Colorado. “‘We found the environment in California to be anti-business,’ said
Sales Manager Eric Franks. ‘California costs are higher from an operational and tax
standpoint. Especially having employees in California, the administrative burden is
substantial.’” Imperial-Newton Inc. was a subsidiary of Xtolere. The company closed the
parent company and incorporated under the Imperial-Newton name in Colorado.1989 The
statement on the company’s website was a bit unusual – it said: “Imperial-Newton Corp
officially completes the relocation of it’s headquarters and primary warehousing & shipping
operations to [Colorado]. We are excited both professionally and personally by this
relocation to the land which inspired the song America the Beautiful, and to the
improvement it brings about to our customers in terms of reduced operational costs, faster
shipping times and improved hours of operation now better aligned with many of our
frequent customers.”1990
Kyjen Co. sells products for dogs. Owner Kyle Hansen told the Orange County Register, “I
realized we were paying more in taxes in California. I would rather invest that money to
hire more people.” Kyjen started in 1992 and its products are now carried in 7,500 stores
including PETCO and PetSmart. Annual sales are $15 million. Kyjen had nine employees
in 2009, grew to 21 and is still growing. Hansen added: “We pride ourselves in building
corporate culture, paying full benefits, finish on Friday by 2 p.m.... here we’re not spending
our time sitting on a freeway. There are trails right by our office.”1991
Quiksilver Americas, Quiksilver Screenprint Operations furloughed employees and onsite leased workers because the company shifted production of screen printed T-shirts to a
foreign country. The Dept. of Labor didn’t identify the country, nor did it provide a figure for
the number of jobs lost, but it indicated that furloughs may have begun as early as May 8,
2010.1992
Core Industries, Inc., DBA Star Trac furloughed employees and on-site leased workers
producing commercial fitness equipment because the company has begun acquiring such
equipment from a foreign country. A Dept. of Labor document didn’t identify the country,
nor did it provide figures for the number of jobs lost in Irvine or Murrieta, but it indicated
that furloughs may have begun as early as Feb. 8, 2010.1993
259
Orange ↔
Irvine
Utah > Draper
Orange ↔
Irvine
1,000
N$R
300
#MA
#RD
}CDO
Canada > Nova
Scotia > Halifax
70
N$R
NQF
#EN
#IT
#QA
#RD
#SO
}CLO
}REL
Orange ↔
Irvine
Arizona >
Phoenix
75
N$R
NQF
#EN
#HQ
#SB
#SO
}CLO
}REL
Orange ↔
Irvine
Texas > Irving
NJR
N$R
NQF
#HQ
#EC
#EN
#SO
}CLO
}REL
Orange ↔
Irvine
Malaysia > Kuala
Lumpur
N$R
NQF
#EC
#MA
#SB
#SC
}OSO
}REL
Orange ↔
Irvine
Singapore >
Singapore
Japan > Unknown
56
}OSO
}REL
130
N$R
NQF
#EC
#MA
____________
}OSO
}REL
Mexico >
Unknown
Orange ↔
Irvine
West Virginia >
Sissonville
}OSO
}REL
____
40
N$R
NQF
#MA
}REL
Edwards Lifesciences – The company will add employees in Utah, giving it more
manufacturing and R&D capability and accommodate plans for growth. The facility will be
the company’s second plant in the state – its Midvale facility now has 228 jobs – and the
facilities will be combined during 2010. The company expects to hire 1,000 employees “in
the coming years for the new 300,000 sq. ft. facility.”1994
eEye Digital Security (now BeyondTrust) – established a Halifax facility to focus on
R&D and quality assurance. “Halifax will be our first Canadian location,” said Kevin Hickey,
CEO, eEye Digital Security. “We are looking forward to the skilled graduates Nova Scotia
has in the IT sector and further growing our business.” The company will create up to 40
new positions. Stephen Lund, president and CEO, Nova Scotia Business Inc. (NSBI)
referred to the event as a “relocation” of the company’s R&D.1995 NSBI attracted eEye
Digital Security to Nova Scotia, from Irvine in 2010. In May 2012, eEye became a whollyowned subsidiary of BeyondTrust. By 2014, BeyondTrust expanded its Nova Scotia R&D
team and will create 30 full-time positions in the first year of the new agreement. The two
events combined add up to 70 jobs.1996 In 2015, the company’s website does not show an
Irvine facility.1997
eEye Digital Security (now BeyondTrust) – The computer and software security
company has relocated its headquarters from Irvine to Phoenix, in the process moving 10
employees and hiring another 15 in Phoenix. The space has room for at least 50 more
employees, which the company hopes to have hired by the end of next year.1998
Glenmount Global Solutions relocated its corporate headquarters. The company
specializes in energy management, information systems, software development, and
electrical and control engineering.1999 The company sold its office property in Irvine for
$1.3 million.2000
Kulicke & Soffa Industries Inc., a semiconductor company, will cut 56 jobs in Irvine and
transfer manufacturing to Malaysia and Singapore. ‘‘Management determined that it was in
the best interests of the company to reduce costs by migrating production and certain
administrative functions from California to Southeast Asia,’’ the company said. K&S
anticipates it will pay about $1.3 million in severance costs.2001 Since it isn’t known how
many of the 56 jobs shifted to which nation.
Mitsubishi Digital Electronics America, Inc. furloughed employees and on-site leased
employees engaged in production of televisions, including sales, warehousing, and
distribution of televisions and product development because the company shifted the work
to foreign countries – engineering, design and development to Japan and quality functions
and majority of procurement to Mexico. A Dept. of Labor document failed to specify what
communities in those countries. It also failed to identify to which nation Irvine’s work was
transferred; likewise for Ontario’s work.2002 The furlough figure is from a WARN Notice.2003
NGK Spark Plugs (USA), Inc. will move spark plug manufacturing from Irvine to West
Virginia. The company, part of Japan-based NGK Spark Plug Co., will keep West Coast
distribution in Irvine.2004 Any Irvine staffing change is unknown. The plant in Sissonville,
which has 300 employees, will add 40 to 50 more with the consolidation.2005 NGK has
been in Irvine since 1983.2006 Note: This is separate from the 2009 international relocation
to Japan. Earlier, in 2005 event, the company moved its HQ from Irvine to Wixom,
Michigan.
260
Orange ↔
Irvine
Japan > Unknown
NJR
N$R
NQF
#AU
#MA
}OSO
}REL
Orange ↔
Irvine
Utah > Salt Lake
City
NJR
N$R
NQF
#HQ
#PB
#RD
}CLO
}REL
Orange ↔
Irvine
Orange ↔
Irvine
Florida >
Melbourne
Mexico > Mexicali
NJR
N$R
NQF
140
N$R
NQF
#AE
#DF
#EN
#IT
#MA
#SO
}OSO
}CLO
}REL
Orange ↔
Irvine
Mexico >
Unknown
NJR
N$R
NQF
#EC
#MA
}OSO
}REL
Orange ↔
Irvine
India > Unknown
NJR
N$R
NQF
#BF
}OSO
}REL
Orange ↔
Irvine
Orange ↔
Irvine
Arizona > Mesa
160
N$R
NQF
#AE
#MA
}CLO
}REL
5
N$R
NQF
#HQ
}CLO
}REL
Colorado >
Colorado Springs
}REL
NGK Spark Plugs (USA), Inc. furloughed employees and on-site leased workers because
the company shifted production of spark plugs to Japan. The Dept. of Labor didn’t specify
which community in that country, nor did it state the number of jobs lost, but it indicated
that furloughs may have begun as early as Jan. 10, 2010.2007
Numira Biosciences – The medical technology firm left for Salt Lake City. When asked
about the departure, its CEO praised Utah’s quality of life but also blamed California’s
business environment. “The tipping point was when someone from the Orange County tax
[assessor] wanted to see our facility to tax every piece of equipment I had,” Michael
Beeuwsaert told the Orange County Register.2008 Also, “CEO Michael Beeuwsaert said the
major reasons for the move were ‘taxes, quality of life and ability to recruit quality people.
In Salt Lake City at my first networking event I met the mayor and the president of the Utah
Senate, and they asked what they could do to help me. No [elected official] ever asked me
that in California,’ he said.”2009
Rockwell Collins ElectroMechanical Systems, Inc. – See the 2010 entry for Mexico for
this company for more information about this event.
Rockwell Collins ElectroMechanical Systems, Inc. furloughed employees engaged in
the production of aircraft control systems. A Dept. of Labor document indicated that
furloughs may have begun as early as July 15, 2010.2010 A news story indicated the
company is closing its aircraft operation in Irvine, laying off 140 workers. Work will be
transferred to Mexico and Florida, although some employees will be able to transfer to
other California facilities. Meanwhile, Rockwell Collins is hiring companywide. 2011 The
company was formerly known as Kaiser Electroprecision, Inc. and changed its name to
Rockwell Collins ElectroMechanical Systems, Inc. in 2005. The company was incorporated
in 1963 and is based in Tustin, Calif.2012
Rosemount Analytical, a subsidiary of Emerson, furloughed employees and on-site
leased workers engaged in the production of liquid sensors because the company shifted
such work to Mexico. A Dept. of Labor document didn’t identify the community in that
country, nor did it provide a figure for the number of jobs lost, but it indicated that furloughs
may have begun as early as Jan. 31, 2010.2013
State Street Corp. furloughed employees and on-site leased workers involved in providing
financial services because the company shifted the work to India. The Dept. of Labor didn’t
identify the community in that country, nor did it provide a figure for the number of jobs
lost, but it indicated that furloughs may have begun as early as May 4, 2010. 2014 According
to a WARN Notice, about one year later 124 employees were furloughed in Irvine.2015 It is
fairly typical for a furlough to occur some time after the launch of an offshoring project.
However, since it isn’t know how many of those jobs should be attributed to the event, this
report will exclude that furlough number.
Boeing Co. – The aerospace company will close its Irvine helicopter facility and transfer
production to Arizona. Work will stop on the A160 Hummingbird program.2016
United States Olympic Committee – The USOC will relocate its International Relations
Division. “The decision to close our Irvine office wasn’t one that was taken lightly, but our
lease was up and it no longer made sense for us to have an office in Irvine,” said USOC
CEO Scott Blackmun. “While there were very good reasons in the past to have staff based
in Irvine that is no longer the case. I am looking forward to bringing our international
261
Orange ↔
Irvine
Illinois > Chicago
NJR
N$R
NQF
#HQ
#PA
}CLO
}REL
Orange ↔
Laguna Hills
Colorado >
Denver
NJR
N$R
NQF
#SO
#PF
}REL
Orange ↔
Lake Forest
Foreign Nation >
Unknown
NJR
N$R
NQF
#MA
}OSO
}REL
Orange ↔
Lake Forest
Mexico > Juarez
NJR
N$R
NQF
#MA
}OSO
}REL
Orange ↔
Lake Forest
Nevada > Las
Vegas
15
N$R
8
#CP
#DO
#PA
}CLO
}REL
Orange ↔
Lake Forest
Malaysia >
Unknown
10,000
$1,200
NQF
#MA
#RD
}CDO
}OSO
Orange ↔
Newport
Beach
Texas > Dallas
60
N$R
NQF
#IT
}CLO
}REL
relations group to Colorado Springs where it can work closely with the rest of the
team.”2017 Five employees will be affected.2018 While that is a small number, it nonetheless
is a loss of a prestigious organization. [Along with the reasons cited, it’s conceivable that
the location decision was influenced by lower business and employee costs, taxes and
fewer regulations in Colorado leading to a reduction in expenses.]
Workforce Management – The magazine will move it headquarters to Chicago in mid2010. The publication, owned by Crain Communications, has more than 52,000 print and
400,000 registered online subscribers.2019
Blytheco LLC acquired a Denver-based SFA Technology, which represents the Sage
SalesLogix CRM platform, and Blytheco will relocate some functions to SFA Technology’s
existing Denver office.2020 [Along with efficiencies resulting from the acquisition and
consolidation, it’s conceivable that the location decision was influenced by lower business
and employee costs, taxes and fewer regulations in Colorado leading to a reduction in
expenses.]
Ellison Educational Equipment, Inc. furloughed employees and on-site leased workers
producing die cutting machines and steel rule dies because the company shifted the work
to another country. The Dept. of Labor didn’t identify the community in that country, nor did
it provide a figure for the number of jobs lost, but it indicated that furloughs may have
begun as early as June 13, 2010.2021
Knight, LLC, a subsidiary of Idex Corp., furloughed employees and on-site leased
employees producing chemical dispensers, proportioning systems, and chemical
management systems, for use in laundry, dishwashing, and dairy production machines,
because the company shifted the work to Mexico. The Dept. of Labor didn’t provide a
figure for the number of jobs lost, but indicated that furloughs may have begun as early as
June 7, 2010.2022 The community is likely to be Juarez, where the company was
establishing a plant during 2010-2012.2023
Pixel2Canvas – Curtis Benton, P2C’s owner, said, “For too long we have been the victim
of California’s over-exuberant taxation policies. We are a small company of about 15
employees and we [will save] close to $14,000 in workman’s comp insurance alone [by
moving to Nevada]. Our employees’ paychecks are going further with lower rents, lower
gas prices, and no state income tax.” Also, staff will pay less than half for equivalent
housing or will move to nicer accommodations. P2C moved from two Lake Forest locations
and doubled its space to a new 8,000 sq. ft. Las Vegas location with lower rent. Benton
added: “We will be able to expand the business with the greater amount of capital without
having to pass the costs on to our customers. Many of our competitors have already
moved to lower cost areas and their profits have enabled them to get a jump on their
growth.”2024 Pixel2Canvas is an international printer of fine art canvas and prints for
photographers and digital artists.
Western Digital – The disk-drive maker will spend $1.2 billion over five years to expand
its R&D and manufacturing facilities. The Malaysian prime minister said over the next five
years there will be up to 10,000 additional jobs.”2025
CB Richard Ellis, the Los Angeles-based real estate services company, will move up to
60 IT jobs to Texas prior to closing its Newport Beach support services office.2026
262
Orange ↔
Newport
Beach
Colorado >
Glenwood Village
Orange ↔
Placentia
Arkansas >
Unknown
Orange ↔
Placentia
Orange ↔
Placentia
750
N$R
165
#HQ
#IT
#SO
40
N$R
NQF
#MA
Michigan >
Unknown
Pennsylvania >
Pittsburgh
NJR
N$R
NQF
}REL
NJR
N$R
NQF
}REL
Orange ↔
San
Clemente
Minnesota >
Bloomington
NJR
N$R
NQF
#HC
}REL
Orange ↔
Santa Ana
Alabama >
Huntsville
15
N$R
NQF
#AU
#MA
}CLO
}REL
Orange ↔
Santa Ana
Maryland >
Hanover
5
N$R
NQF
#CP
}CLO
}REL
Orange ↔
Santa Ana
Canada >
Ontario,
Mississauga
20
N$R
NQF
#AU
#EN
#MA
}CLO
}OSO
}REL
Orange ↔
Santa Ana
Foreign Nation >
Unknown
NJR
N$R
NQF
#CH
#MA
}OSO
}REL
}CLO
}REL
TriZetto Group Inc., whose software helps health plans and benefit administrators
manage billing and other services, moved its headquarters. CEO Trace Devanny said,
“We are the largest provider of healthcare IT for the health insurance business in the
United States. There are over 100 million insured lives running from our solutions .... We’re
creating a corporate worldwide headquarters in Denver.”2027 That facility grew so much
that TriZetto announced it will build a new headquarters in Douglas County, south of
Denver, to accommodate up to 750 new jobs over the next five years. Employees will
move into the new 165,000 sq. ft. facility in spring 2013.2028
Kennametal Inc. – The manufacturer of energy-related products including oil well drilling
parts and flow controls will close in Placentia by October and transfer work to Arkansas,
Michigan and Pennsylvania. Kennametal acquired the Placentia plant as part of its 1997
purchase of Greenfield Industries. It had once been called A-1 Carbide.2029 The community
in Arkansas may be Rogers, but that is uncertain. [It’s conceivable that the location
decisions were influenced by lower business and employee costs, taxes and fewer
regulations in Arkansas, Michigan and Pennsylvania leading to a reduction in expenses.]
Kennametal Inc. – See more details in the “Arkansas /Locality Unknown” entry for this
company for this event. The community may be Grand Rapids or Traverse City.
Kennametal Inc. – See more details in the “Arkansas /Locality Unknown” entry for this
company for this event. It’s unclear where in the Pittsburgh area as the company has
plants in Latrobe and New Castle.
Pick Up Stix. The company that owns restaurant chains Leeann Chin, Mandarin Express
and Chin’s Asia Fresh, purchased Pick Up Stix and will move its headquarters to
Minnesota. Most of the 70 Pick Up Stix stores are in Southern California, Nevada and
Arizona.2030 A later review showed the HQ as indeed being in Minnesota, although the
company kept an office in San Clemente.
LINE-X Protective Coatings company, which makes products for all types of trucks, is
moving its headquarters to Huntsville in the aftermath of a merger with Advanced
Protective Coatings. The event is expected to create about 15 jobs locally.2031 In that year,
Line-X had more than 400 locations in 36 countries.2032 [Along with efficiencies resulting
from the merger and consolidation, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Alabama
leading to a reduction in expenses.]
Maxwell America – The boating equipment maker closed its Santa Ana offices and
moved to Maryland. One reason was the impact of state environmental regulations. A
company official said over the years many California boat builders have relocated to the
Midwest and East where they don’t face the same restrictions.2033
MotorVac Technologies, which makes parts to repair autos sold in 60 countries, reduced
costs by moving to Canada. The CEO said he “really fought hard to keep MotorVac here,
but unfortunately the numbers didn’t support it.” Its new owner, UView, has its own plant
with excess capacity in Canada. “And the general cost of doing business in California is
much more expensive.”2034
STEC, Inc., Manufacturing Division, furloughed employees engaged in the production of
computer storage devices because the company shifted such work to a foreign country.
263
Placer ↔
Rocklin
Colorado >
Denver
700
$20
NQF
#GR
#MA
}UTN
Placer ↔
Rocklin
Georgia >
Marietta
350
$5
266
#BF
#SB
}CLO
}REL
Placer ↔
Roseville
Georgia >
Marietta
NJR
N$R
NQF
}REL
Riverside ↔
Corona
Riverside ↔
Corona
Texas >
Lewisville
Texas >
Grapevine
NJR
N$R
NQF
}REL
73
N$R
NQF
Riverside ↔
Hemet
Riverside ↔
Hemet
Texas >
Carrollton
Florida > Tampa
NJR
N$R
NQF
295
N$R
NQF
#HC
#SB
}CLO
}REL
Riverside ↔
Lakeview
Michigan > Ada
150
N$R
NQF
#FP
}CLO
}REL
Riverside ↔
Lakeview
Riverside ↔
Lakeview
Washington >
Quincy
Mexico >
Unknown
NJR
N$R
NQF
}REL
NJR
N$R
NQF
}OSO
}REL
#AU
}REL
}REL
The Dept. of Labor didn’t that country, nor did it provide a figure for the number of jobs
lost, but indicated that furloughs may have begun as early as Nov. 26, 2010.2035
SMA America LLC considered Sacramento to build a new solar panel manufacturing
plant. Instead, it selected Denver, where it eventually will employee 700 people. General
Manager Jurgen Krehnke said, “Initially, the [consultants] almost immediately dismissed
this and said, ‘Oh, California, it’s too expensive. It won’t work.’ We said, ‘Wait a minute.
We want to at least take a look.’ We would’ve had a preference to have the factory right
here. There was some concern about the cost of the location, the availability of
manufacturing labor, there was concern about the budget crisis and whether it would lead
to increased taxes. This all led us to believe that California was a little bit more difficult to
defend.”2036 Production began at the facility in 2010.2037 Later, Krehnke said, “It’s been a
great move. It was a strategic decision to [open the plant], and it’s what it needs to be,
where it needs to be.” It’s SMA’s only factory outside of Germany. SMA America is the
North American arm of SMA Solar Technology AG, based in Germany -- the world’s
largest maker of solar-power inverters.2038
TASQ Technology, Inc. – The payments processing company is closing its Rocklin
headquarters and Roseville warehouse for point-of-sale equipment, eliminating 350 jobs.
The HQ site includes management, development and call-center operations. The company
is investing $5 million in its new location in Marietta, about 15 miles northwest of
Atlanta.2039 It will move into a 266,000-sq. ft. building.2040 The move will occur over the next
18 months.2041
TASQ Technology, Inc. – Employees at the Roseville warehouse provide repair,
receiving and customer service. See more about this event at the TASQ Marietta, Georgia
entry.2042
Hayden Automotive – See the 2010 event for Grapevine for more information about this
event.
Hayden Automotive, a maker of automotive transmission oil coolers and fan clutches, is
relocating to Texas. The company will lay off 73 Californians by the end of 2010.2043 The
move, when combined with another from Hong Kong to Orlando, Florida, will result in a
combined savings estimated at $4 million annually.
Hilton Worldwide – See the 2010 Tampa event for this company for more information
about this event.
Hilton Worldwide will close its 24-hour-a-day reservation call center and employees will
be offered jobs at Hilton’s call centers in Texas and Florida.2044 The job-loss figure is from
a WARN Notice.2045 (This followed a 2009 event where Hemet jobs were sent to the
Philippines.)
Amway Corp. will close its Lakeview facility, which has grown and processed Nutrilite
supplements for more than 50 years. Some work will be shifted to plants in Buena Park,
Calif., Ada, Michigan, Washington state, Mexico and Brazil. The Lakeview facility is where
the Nutrilite brand began.2046
Amway Corp. – See the 2010 Michigan event for this company for more information about
this event.
Amway Corp. – See the 2010 Michigan event for this company for more information about
this event.
264
Riverside ↔
Lakeview
Riverside ↔
Murrieta
Riverside ↔
Riverside
Brazil > Unknown
NJR
N$R
NQF
Foreign Nation >
Unknown
Indiana > Decatur
NJR
N$R
NQF
#MA
}OSO
}REL
1,200
N$R
NQF
#MA
}REL
Riverside ↔
Temecula
Costa Rica >
Alajuela
NJR
$50
16
#MA
#PB
}OSO
}REL
Sacramento
↔ Folsom
Foreign Nation >
Unknown
NJR
N$R
NQF
#CH
#MA
}OSO
}REL
Sacramento
↔ North
Highlands
Sacramento
↔ North
Highlands
Sacramento
↔ Rancho
Cordova
Sacramento
↔ Rancho
Cordova
Uruguay >
Unknown
NJR
N$R
NQF
India > Unknown
901
N$R
NQF
South Dakota >
Sioux Falls
NJR
N$R
NQF
Arizona >
Phoenix
NJR
N$R
NQF
#BF
}REL
Sacramento
↔
Sacramento
Georgia > Sandy
Springs
30
N$R
6.5
#GR
#HQ
}CLO
}REL
Sacramento
↔
Sacramento
Utah > Salt Lake
City
55
N$R
NQF
#CL
#DO
#HQ
}CLO
}REL
}OSO
}REL
}OSO
}REL
#BF
#SB
}CLO
}OSO
}REL
}REL
Amway Corp. – See the 2010 Michigan event for this company for more information about
this event.
Core Industries, Inc. See the 2010 Irvine entry for this company for more information
about this event.
Fleetwood Enterprises, Inc. – After relocating to Indiana, the company has eight
buildings: two for motor home production, one paint shop, three for fiberglass production
and two for service and parts and where the workforce has grown to 1,200.2047
Abbott Laboratories will invest $50 million build a 16,000-sq. ft. catheters manufacturing
plant in Alajuela Costa Rica The his information was presented by the Comex and CINDE,
agencies in Costa Rica. In a first phase, the company will start operations with 500
workers and it will increase to 3,000 later.2048 That employment estimate is excluded from
this report and real-count jobs losses are reported during the years that they occurred.
R-Squared Circuits, Inc., a subsidiary of Test Tooling Solutions Group, furloughed
employees producing printed circuit boards because the company shifted the work to a
foreign country. The Dept. of Labor didn’t identify the country, nor did it provide a figure for
the number of jobs lost, but indicated that furloughs may have begun as early as April 11,
2010.2049
HomeEq Servicing – See the 2010 India entry for this company for more information.
HomeEq Servicing, a mortgage servicing company, will close its 901-employee call
center after being acquired by Ocwen Financial Corp., which will move jobs to India and
Uruguay.2050
Wells Fargo – See the 2010 Phoenix event for this company for more information.
Wells Fargo will relocate jobs to Arizona and South Dakota. A company statement merely
said, “in today’s ever-changing business environment, we must continuously review our
operations and make changes accordingly.”2051 [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Arizona leading to a reduction in expenses.]
Enfinity Corp. – The Belgium-based solar development company relocated its Americas
headquarters from Sacramento to Atlanta, where it will employ at least 30 people initially in
a 6,500-sq. ft. space. Founded in 2005, Enfinity has grown into one of the 10-largest solar
photovoltaic development companies with projects in North America, China, India and
Europe. The Atlanta office will help finance and develop new solar projects across the
Americas.2052
Gregory Mountain Products Inc., which sells outdoor apparel online, will relocate
headquarters and staff, keeping a “largely autonomous brand” as it integrates with its new
owner, Black Diamond Equipment Inc. The company plans to grow its HQ and distribution
facilities in Utah over the next 10 years.2053 [Along with efficiencies resulting from affiliation
with a new owner, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Utah leading to a reduction
in expenses.]
265
Sacramento
↔
Sacramento
India > Unknown
NJR
N$R
NQF
#PA
}OSO
}REL
San
Bernardino ↔
Adelanto
San
Bernardino ↔
Ontario
North Carolina >
New Bern
100
N$R
NQF
#CP
#MA
}CLO
}REL
18
N$R
NQF
#AE
}CLO
}DSP
San
Bernardino ↔
Ontario
San Diego ↔
Carlsbad
(See Irvine entry)
NJR
N$R
NQF
#EC
#MA
}OSO
}REL
Mexico >
Monterrey
277
N$R
NQF
#MA
}OSO
}REL
San Diego ↔
Carlsbad
Colorado >
Longmont
70
N$R
NQF
#CH
#SO
}CLO
}REL
San Diego ↔
Escondido
Mexico > Tijuana
NJR
N$R
NQF
#EC
#MA
}OSO
}REL
San Diego ↔
San Diego
Pennsylvania >
Pittsburgh
30
$9
24.8
#PB
}CDO
Unknown >
Dispersed
McClatchy Newspapers, Inc., d/b/a/ The Sacramento Bee, furloughed employees
producing advertisements because it shifted the services to a foreign country. According
the Dept. of Labor, employees stated that the work migrated to India, although which
community is unknown. Also, the filing didn’t identify the community in that country, nor did
it provide a figure for the number of jobs lost, but indicated that furloughs may have begun
as early as Nov. 11, 2010.2054
CABO Yachts – The manufacturer will close its plant by the end of 2010 and move
production to the Hatteras Yachts factory in North Carolina. Both companies are units of
Brunswick Corp.2055
GE Aviation – Its aerospace unit will close the engine repair and test facility at the Los
Angeles / Ontario International Airport, where it tested engines after overhaul and repair.
The facility has been open for 55 years and has been slowly shrinking. At its peak
employment, the site had more than 700 workers.2056
Mitsubishi Digital Electronics America, Inc. furloughed workers and on-site leased
workers producing televisions because the company shifted the work to foreign countries.
See the 2010 Irvine entry for more information about this event.
Callaway Golf Co. will move most manufacturing to Mexico. George Fellows, CEO, said,
“This decision was based on an extensive review of our operations structure and supports
the gross margin improvements necessary to secure our leadership position in a
competitive market.”2057 The North County Times reported that “Carlsbad will remain
company headquarters, where research, marketing and administrative functions will be
handled, as well as some manufacturing.... Bud Leedom, an analyst familiar with the
company, said hundreds would lose their jobs, because manufacturing is a ‘substantial
part’ of Callaway’s payroll. . . . Callaway has endured hard times before, Leedom said.
However, relocating production means the company had decided that even when the
economy recovers, it won’t be able to regain its pricing power.”2058
Dot Hill Systems Corp. – The manufacturer of data storage products will close its
Carlsbad headquarters. It’s already consolidated operations from Carlsbad to
Longmont.2059 It appears at least 30 have already moved.”2060
Nexergy, Inc. furloughed employees and on-site leased workers producing battery packs,
printed circuit assemblies, cable and harness. Company employees stated that the
company shifted the work to Mexico. The Dept. of Labor didn’t provide a figure for the
number of jobs lost, but indicated that furloughs may have begun as early as April 19,
2010.2061 It’s likely the community is Tijuana, where the company already has a facility.
BeamOne LLC is opening a 24,800-sq. ft. Electron Beam Sterilization Service Center
where it will employ up to 30 people when fully operational and another 15 to 20 jobs could
be added later. CEO Glenn Thibault said of the region, “This is a great place for growth.
There is a lot of expansion in medical devices and pharmaceutical in the area, and we
want to be a part of that.” BeamOne is a medical device sterilization company. When a
manufacturer makes a product like a syringe or a petri dish, it can’t be used until it’s been
sterilized in the packaging. The company will start with one linear accelerator, with a
second added as business grows in the region.2062 Capital investment totaled $9
million.2063 Synergy Health plc acquired BeamOne in 2011, in part because the business is
expected to grow strongly after opening the Pittsburgh facility and the upcoming doubling
266
San Diego ↔
San Diego
India > Chennai
San Diego ↔
San Diego
San Diego ↔
San Diego
20
N$R
NQF
#PA
}OSO
}REL
Mexico >
Tiajuana
Texas > San
Antonio
NJR
N$R
NQF
400
$5
NQF
#CP
#SB
}REL
}UTN
San Diego ↔
San Diego
Mexico > Tecate
NJR
N$R
NQF
#SB
}OSO
}REL
San Diego ↔
San Diego
Texas > Westlake
8
N$R
NQF
#HQ
}REL
San Diego ↔
Vista
Foreign Nation >
Unknown
NJR
N$R
NQF
#EC
#MA
}OSO
}REL
San
Francisco ↔
San
Francisco
Idaho > Boise
NJR
N$R
NQF
#GR
#HQ
#CS
}CLO
}REL
San
Francisco ↔
India >
Hyderabad
NJR
N$R
NQF
#PB
#PF
#SO
}OSO
}REL
}OSO
}REL
of Costa Rica operations.2064 [Along with the reasons cited, it’s conceivable that the
location decision was influenced by lower business and employee costs, taxes and fewer
regulations in Pennsylvania leading to a reduction in expenses.
Elsevier, Inc., Editorial Production-Journals Division, furloughed employees and on-site
leased workers involved in administration and the production of scientific journals because
the company shifted the work to India.2065
Flextronics International USA, Inc. – See the 2010 Foothill Ranch entry for this company
for more information about this event.
Petco – The retailer moved 400 back office jobs to a new Satellite Support Center in San
Antonio, moving some executives and others from its National Support Center in San
Diego. The office will carry out the financial aspects of the company’s operations, including
accounting, administrative services, compliance and risk management, and the jobs will
pay an average of about $57,700 a year, while 10% of the jobs will pay $80,000 or more.
The company will spend $5 million to outfit its San Antonio building, the first office location
outside of San Diego. The company graded cities on four main factors, including
availability of corporate talent, the friendliness of the business and civic communities,
operating costs and quality of life. The site-selection process considered the San Diego
area for the facility.2066
Rancho La Puerta, LLC furloughed employees and also on-site leased workers who
provided customer and administrative services because the firm shifted the work to
Mexico. The Dept. of Labor didn’t provide a figure for the number of jobs lost, but indicated
that furloughs may have begun as early as July 15, 2010.2067
Solera Holdings, Inc. relocated its headquarters to Texas; it is the parent of several
software and services companies that serve the auto insurance claims processing industry
and will retain a San Diego office.2068 Although only eight people are relocating, they are
identified as a “senior group.”2069 Update: Since the relocation, the company has kept
growing; in 2015 it reached a market value of about $3.3 billion2070 with customers in more
than 75 countries.2071
Vislink, Inc. subsidiary of Vislink, PLC furloughed employees and on-site leased workers
engaged in production of microwave products and assemblies for the communications
industry because the company shifted such work to a foreign country. The Dept. of Labor
didn’t identify the country, nor did it provide a figure for the number of jobs lost, but
indicated that furloughs may have begun as early as Feb. 14, 2010.2072
Building Materials Holding Corp., dba BMC Select – The company conducted an
unusual relocation. BMC, which had shifted its headquarters from Idaho to California,
relocated its HQ back to Boise, allowing it to retain access to high-quality employees while
reducing wage and occupancy costs.2073 BMC supports building programs that promote
sustainable materials, energy efficiency and environmentally responsible building
practices, including the LEED, National Association of Home Builders Green Home
Building Guidelines, and regional programs such as the Forest Stewardship Council. It
also provides green building products. More information is found on its Green Building
webpage.2074
Deloitte Recap LLC furloughed employees in its Biotech Consulting and Business
Development Software Division and on-site leased workers engaged in consulting and
267
San
Francisco
65
$5
28
#HQ
#RW
}REL
Arizona >
Goodyear
107
N$R
120
#GR
#MA
}CDO
San
Francisco ↔
San
Francisco
Utah > Salt Lake
City
NJR
N$R
NQF
#DC
#DO
#EN
#IT
#SM
}CDO
San
Francisco ↔
San
Francisco
Ohio > Dayton
200
N$R
NQF
#IT
#PF
#SB
}CDO
San
Francisco ↔
San
Francisco
San
Francisco ↔
South San
Francisco
Arizona >
Scottsdale
200
N$R
38.5
#DO
#SM
}CDO
Oregon >
Hillsboro
500
$525
340
#PB
}CDO
San Joaquin
↔ Lodi
Texas > Dallas
64
N$R
NQF
#AU
#MA
}REL
San Joaquin
↔ Lodi
Mexico > San
Luis Potosi
NJR
N$R
NQF
San
Francisco ↔
San
Francisco
Connecticut >
Stamford
San
Francisco ↔
San
Francisco
}OSO
}REL
software customization services because the firm shifted the work to India. The Dept. of
Labor didn’t provide a figure for the number of jobs lost, but indicated that furloughs may
have begun as early as Feb. 13, 2010.2075
Design Within Reach (DWR), a retailer of modern furniture, made a cross-country
headquarters move.2076 The home-furnishing company relocated to a 28,000 sq. ft.
facility.2077 DWR brings to Stamford 65 jobs and a $5 million project to build out new
offices and a Design Within Reach studio store.2078 The company retained a presence in
San Francisco.
Suntech America – The unit of a Chinese company will put its first U.S. manufacturing
plant in a 120,000-sq. ft. facility in Arizona. Suntech selected the area because of research
underway at Arizona State University and a supportive local business climate. 2079 In 2011,
the company engaged a third production shift, adding another 30 jobs, bringing the total to
107.2080
Twitter, Inc. – This is another move by a California company to put computer-intensive
operations in a state with significantly less expensive electricity. Twitter will open a
custom-built data center in Utah and move some technical operations to the location. The
facility will be the company’s first custom-built data center.2081 [Note that data centers use
significant amounts of electricity and such costs are lower in Utah than in California.]
WilmerHale, a law firm, will open a Business Services Center in the Dayton region in
September and house approximately 187 employees from existing offices and new Ohiobased employees. The center will include support staff such as finance, human resources,
IT operations, document review and practice management. The center will improve
efficiencies and reduce operational expenses.2082 Later, the center, which grew to more
than 200 employees, was ranked among area’s “Top Workplaces” by the Dayton Daily
News.2083
Yelp Inc. – The online consumer ratings service opened in Scottsdale’s Galleria Corporate
Centre with about 100 workers and “plans to hire 100 more people by year’s end” with
most jobs “related to advertising sales and account management.”2084
Genentech – The company began producing pharmaceuticals at a new $400 million plant,
exceeding its job creation target of 200 employees. Barry Starkman, plant manager, said,
“The tax climate here was very favorable, certainly, when compared to California.”2085
Subsequent expansions were made, including a $125 million project in 2015, that raised
the number of employees to 500.2086 In 2010 the company occupied 340,000 sq. ft. of
space.2087
Valley Towing Products (RPM Towing) – The company closed and 64 employees lost
their jobs. Work moved to Texas and to a plant in Mexico owned by parent company
Revstone Industries LLC of Lexington, Ky. The company has manufactured parts of
trailers and towing systems in Lodi since 1947. Both the plant in Mexico and the Dallas
warehouse are new and represent part of the company’s expansion plans.2088 Some work
remained in Lodi.
Valley Towing Products (RPM Towing) – See the 2010 Dallas entry for this company for
more information.
268
San Joaquin
↔ Manteca
Unknown >
Dispersed
97
N$R
NQF
#AU
#MA
}CLO
}DSP
San Joaquin
↔ Stockton
San Joaquin
↔ Stockton
Unknown >
Dispersed
Mexico >
Unknown
154
N$R
NQF
#AU
#MA
}CLO
}DSP
25
N$R
NQF
#MA
}OSO
}REL
San Luis
Obispo ↔
Atascadero
Nevada > North
Las Vegas
NJR
N$R
NQF
#IT
#SB
}CDO
San Mateo ↔
Belmont
India > Unknown
NJR
N$R
NQF
#SB
}OSO
}REL
San Mateo ↔
Redwood City
Utah > Salt Lake
City
100
N$R
20
}CDO
San Mateo ↔
Redwood City
Utah > West
Jordan
NJR
$300
240
#EN
#ET
#IT
#PA
#DC
#EN
#IT
San Mateo ↔
San Mateo
Texas > Austin
50
N$R
5.7
#HQ
#PB
}REL
San Mateo ↔
San Mateo &
Woodside
Washington >
Camus
445
$47
NQF
#BF
#IT
#SB
}CDO
}CDO
Amtex – The subsidiary of Japan-based Hayashi Telempu closed its Manteca plant, which
supplied car seat covers for the now-closed NUMMI plant. It appears that the company’s
facilities in Ohio and Texas remain open.2089
Kyoho Manufacturing California – The company, which in 2008 opened an auto parts
plant to supply the NUMMI plant, stopped operating in March. 2090
Timbron International, Inc. furloughed employees producing recycled Styrofoam interior
home molding products because the company shifted the work to Mexico, affecting 25
jobs. The Department of Labor didn’t identify the community in that country. The company
stated that “Stockton manufacturing closed on July 31, 2011” and “The manufacturing
facility that was once in Stockton, CA is now in Mexico.” Furloughs may have begun as
early as Oct. 17, 2010.2091
Retail Anywhere opened a new office for Customer Support and other departments in
Nevada to accommodate a larger staging facility and help-desk staff increase. The
company provides point-of-sale systems for retailers. CEO Branden Jenkins said. “We
chose the Las Vegas area because of its talented labor pool and for its abundant options
of direct flights, easing the commute for our implementation teams as well as for
customers coming on-site for training.”2092 Later, the company was purchased by NetSuite.
Cengage Learning furloughed employees in its manufacturing buyers department and onsite leased workers because the company shifted such services to a company in India,
which now performs textbook purchases. The Dept. of Labor didn’t identify the community
in that country, nor did it provide a figure for the number of jobs lost, but indicated that
furloughs may have begun as early as Feb. 13, 2010.2093
Electronic Arts Inc. – Placing a 20,000-sq. ft. facility in Utah will promote the creation of
innovative video game content. Employees include engineering, design, project
management, marketing, production, audio, art and animation. 2094
Oracle resumed construction of a massive data center in Utah, an effort called ‘Project
Sequoia” that will be about 240,000-sq. ft. in size.2095 After project delays, the company
resumed work in 2010. Data Center Knowledge reported, “Oracle apparently halted
construction around the time it offered to acquire Sun Microsystems for $7.4 billion. The
deal created a ‘buy vs. build’ choice for Oracle, as Sun operates dozens of data centers,
including a relatively new high-efficiency Broomfield, Colorado data center and Sun’s highdensity installation at the SuperNAP in Las Vegas.”2096 [Note that data centers use
significant amounts of electricity and such costs are lower in Utah than in California.]
Pain Therapeutics Inc. – The drug development company informed the SEC that it would
relocate its headquarters by the end of 2011. The company has about 30 employees and
plans to hire 50 to 100 people in R&D roles over the next three years. CEO Remi Barbier
said, “We’re a business, and we look for business-friendly states and business-friendly
environments .... We’re a medical research company and we think that Austin, Texas, is
an up-and-coming cluster for biotech and biomedical research, and we’d like to participate
in that.”2097 A 2014 report stated that the company in 2010 leased 5,700 sq. ft. of
space.2098
Fisher Investments – The advisory asset management firm is building a 200-acre
campus in Camus. CEO Ken Fisher said the new location offers a “friendlier business
climate” than California, where the company is currently based. 2099 Fisher Investments
269
Santa
Barbara ↔
Goleta
Singapore >
Unknown
NJR
N$R
NQF
#MA
#PB
}OSO
}REL
Santa
Barbara ↔
Santa Maria
Unknown >
Dispersed
260
N$R
NQF
#SB
}CLO
}DSP
Santa Clara
↔ Campbell
Michigan > Ann
Arbor
300
$2.25
45
#EN
#IT
#RD
}CDO
Santa Clara
↔ Milpitas
Louisiana >
Covington
490
N$R
27
#EN
#HQ
#IT
#SB
}CLO
}REL
manages $49 billion in assets for high-net-worth individuals and for public pension plans. It
also manages financial plans for companies such as Boeing and Volvo. Its employees
earn between $75,000 and $200,000 annually.2100 When asked if he will move the HQ to
Washington State, he said he isn’t yet ready to do so: “California, the state of my birth and
that of my father and grandfather, is determined to go to hell but isn’t very competent so it
is taking the state time to complete the process. I’m letting people flee ahead of that.” He
said other California-to-Washington State attributes are: “No state income tax for my
people. Schools where the primary education doesn’t consist of extra-curricular firearms
and illegal drug training, plus safe neighborhoods where kids can play in the streets.
Comparable homes for my folks that cost a quarter as much. Local governments that like
my people instead of hate them.”2101 In 2013, the company said it plans to break ground
on a second office building, which will be able to house some 700 workers. The doubling
of office space in Camas means that Fisher Investments will have more employees in
Washington than in California.2102 By 2015, the firm’s head count in Camas reached about
975 workers and capacity exists to accommodate 1,800 employees. These are highpaying jobs. Fisher said employees earn between $75,000 and $200,000 annually. 2103
Note: It’s difficult to know to which years the job growth of 530 employees should be
attributed. For the purposes of this report, they will be broken into units of 132 and
attributed to each year in the 2011-2014 period.
Aplegen, Inc., a life sciences company, furloughed employees and on-site leased workers
producing digital imaging equipment because the company shifted such work to
Singapore. The Dept. of Labor didn’t identify the community in that country, nor did it
provide a figure for the number of jobs lost, but indicated that furloughs may have begun
as early as Feb. 13, 2010.2104
UPS shut its call center in stages by October 2010. The Santa Maria Times quoted a UPS
spokeswoman as saying, “The center is being closed because calls that have been
handled by the Santa Maria center can be handled within the company’s existing
network.”2105 The center is the only one of ten centers that’s closing. It’s unclear what other
locations will handle the diverted calls.
Barracuda Networks – The IT security firm is undertaking a major expansion of its R&D
center in Michigan. In the two years since it created the facility, it has grown from 8
employees to about 100 workers.2106 Barracuda’s growth illustrates the economic potential
of the IT security sector for the Ann Arbor region and the University of Michigan’s
computer science engineering program.2107 Its investment is $2.55 million.2108 With
continual growth, by 2012 the employee count was expected to grow to between 300 and
400 employees, a number “that’s not going to be capped.”2109 For purposes of this report,
the conservative number of 300 will be cited.
Globalstar, Inc. – Will move its headquarters, product development center, international
customer care operations, call center, finance, accounting, sales, marketing and PR – all
high-value jobs. The company provides mobile satellite voice and data services. Jay
Monroe, executive chairman, said, “Relocating to Covington will help dramatically reduce
our operating costs as we execute our next generation strategic initiatives. The
telecommunications industry is extremely competitive and we are seeing increased
competition.” CEO Peter Dalton said, “Louisiana’s leading universities including Loyola,
270
Santa Clara
↔ Milpitas
Mississippi >
Olive Branch
300
$130
NQF
#GR
#MA
}CDO
Santa Clara
↔ Mountain
View
Maryland > Silver
Spring
NJR
N$R
NQF
#EN
#HQ
#IT
#SO
}CLO
}REL
Santa Clara
↔ Mountain
View
Florida >
Gainesville
NJR
N$R
NQF
#EN
#HQ
#IT
#SO
}CLO
}REL
Santa Clara
↔ Mountain
View
Arizona > Tempe
NJR
N$R
NQF
#CP
#DO
#PA
}CDO
Santa Clara
↔ Mountain
View
Virginia > Reston
250
N$R
221
#DO
#EN
#HQ
#IT
}CLO
}REL
Santa Clara
↔ Palo Alto
Texas > Austin
200
$3.1
21
#DO
#SB
#SM
}CDO
Santa Clara
↔ Palo Alto
Washington >
Seattle
50
N$R
NQF
#DO
#EN
#IT
#SM
}CDO
Santa Clara
↔ Palo Alto
Taiwan > Taipei
NJR
$112.5
NQF
#CH
#EN
#IT
}CDO
}OSO
LSU, Tulane and The University of New Orleans plus the state’s reputation as a
recreational sporting enthusiast’s paradise provide an ideal environment for recruiting
highly skilled employees.”2110
Soladigm Inc. (now View, Inc.), a technology firm, is investing in a plant in Mississippi.
Soladigm is a privately held company financed by venture capital firms, Sigma Partners
and Khosla Ventures, both of Menlo Park, Calif. The company makes ‘dynamic’ windows,
which can be switched from tinted to clear as needed.”2111 Reports conflict over whether
300 or 350 jobs will be created; this report will cite the more conservative figure. In 2012
the company changed its name to View, Inc. Also, it now began to call its window glass
product View Dynamic Glass, which adjusts to external conditions, and reduces energy
consumption.2112
Sonatype Inc. moved its headquarters to Maryland while unveiling $11.6 million in venture
funding. The Washington Business Journal reported that the startup, in the computer
software development business, “plans to use that new headquarters as a launching pad
for growth in the coming months.”2113
SumTotal Systems (now Skillsoft) is a software provider for HR. Dan Boccabella, senior
director of product management, , said Gainesville provides quality-of-life advantages such
as shorter commutes as well as being a less expensive place to live and operate. “It just
makes economic sense.”2114 In 2014 Skillsoft purchased SumTotal.
Tiny Prints, which sells customized wedding, birth and stationery products online, opened
a customer-service and graphic-arts center in Arizona. A company official said Arizona
was selected because of its lower land, labor costs, and the opportunity for redundancy in
case of a California natural disaster. The company also liked the availability of artists
through Arizona State University and other area schools.2115
VeriSign, Inc. is relocating its headquarters to Virginia, according to an SEC filing.2116
VeriSign leased about 221,000 sq. ft. effective Feb. 1, 2011 and will pay about $105.8
million over the course of the 15-year lease.”2117 About 250 jobs were involved and
relocation-related investment totaled $11 million.2118
Facebook – Relocation of sales and operations center.2119 “Facebook continues to grow
and Austin, with its deep talent pool, would allow us to hire the high-caliber employees we
need to properly serve the people, advertisers and developers that rely on our service,”
said Facebook COO Sheryl Sandberg.2120 The company will move into a 21,000-sq, ft.
space.2121 [Along with the reasons cited, it’s conceivable that the location decision was
influenced by lower business and employee costs, taxes and fewer regulations in Texas
leading to a reduction in expenses.]
Facebook established a development center in Seattle in August, 2010.2122 Some staff will
move from California and others hired locally. The Seattle Times reported that “The office
– Facebook’s first development center outside of its Palo Alto, Calif., headquarters –
ended its first year with about 50 engineers.”2123 [Along with it being easier to recruit
engineers in Seattle, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Washington leading to a
reduction in expenses.]
Hewlett-Packard – The company is setting up a global R&D center in Taiwan. The center
will focus on computer products such as the design of HP Slate and related multi-touch
271
#RD
NJR
N$R
NQF
#SB
}CDO
}OSO
1,000
$100
230
#DO
#EN
#IT
#PA
#SB
}CDO
Foreign Nation >
Unknown
NJR
N$R
NQF
#EC
#MA
}OSO
}REL
Santa Clara
↔ San Jose
Santa Clara
↔ San Jose
Texas > San
Antonio
Utah > South
Jordan
NJR
N$R
NQF
#PB
#RD
}CDO
450
$287
240
#DC
#DO
#EN
#IT
}CDO
Santa Clara
↔ San Jose
Texas > San
Antonio
NJR
N$R
NQF
#RD
}CDO
Santa Clara
↔ San Jose
China > Unknown
NJR
N$R
NQF
#CH
#MA
}OSO
}REL
Santa Clara
↔ San Jose
Texas > San
Antonio
400
N$R
NQF
#PB
}CDO
Santa Clara
↔ San Jose
Santa Clara
↔ San Jose
Texas > San
Antonio
Texas > Austin
NJR
N$R
NQF
#PB
}CDO
450
$10
100
#GR
#SB
}CDO
Santa Clara
↔ Palo Alto
Panama >
Panama
Santa Clara
↔ San Jose
Utah > Lehi
Santa Clara
↔ San Jose
applications and 3D visual technologies for mobile products. Kai Hsiao, HP Taiwan’s
procurement head, said, “Innovation will be the key to the Computing Hub.”2124
Hewlett-Packard Co. – The company is laying off an undisclosed number of human
resources employees and transferring the functions to Panama. No information is available
as to the number of jobs involved, when the moves will occur, or the capital investment
that will be made in Panama.2125
Adobe Systems Inc. is expanding big-time in Utah in a 230,000-sq. ft. tech campus. It will
be built on a 38-acre site west of Traverse Mountain and be similar to Adobe’s corporate
offices in San Jose with a skywalk between multilevel LEED certified buildings. The facility
is “expected to bring in more than $134 million in taxes over the next 20 years, the move
could bring in as much as $1.6 billion in wages paid over that time. Salaries will be 200%
of the local average.”2126 It will cost $100 million to construct the campus.2127
Aviat U.S., Inc., f/k/a Harris Stratex Networks Operating Corp., furloughed employees and
on-site leased workers who produced microwave modules used in wireless radio
applications because it shifted the work to a foreign country. The Dept. of Labor didn’t
identify the country, nor did it provide a figure for the number of jobs lost, but indicated that
furloughs may have begun as early as Nov. 21, 2010.2128
Corhythm Inc. – The startup company is developing a novel therapy for the treatment of
atrial fibrillation.2129 See the 2010 InCube Labs entry for more information.
eBay / PayPal – The e-commerce and software company opened the new “Project Topaz”
data center and will host the eBay.com and Paypal.com web sites. It “is 50% less
expensive to operate than the average of all other data centers we lease today,” said Dean
Nelson, eBay’s Senior Director of Global Data Center Strategy. The 240,000 sq. ft. facility,
is the first phase of a four-phase project.2130 eBay transactions total about $60 billion of
goods a year, which is almost $2,000 a second.2131 [Note that data centers use significant
amounts of electricity and such costs are lower in Utah than in California.]
Fe3 Medical Inc. – The company is developing remedies to anemia, a prevalent micronutrient deficiency especially among women.2132 See the 2010 InCube Labs entry for more
information.
Hitachi Global Storage Technologies, Inc. furloughed employees and on-site leased
workers engaged production of hard disk drives because the company shifted the work to
China. The Dept. of Labor didn’t identify the community in that country, nor did it provide a
figure for the number of jobs lost, but indicated that furloughs may have begun as early as
Jan. 31, 2010.2133
InCube Labs, a life sciences research unit, which develops and guides start-up
companies, will launch an Innovation Center and five life science companies in Texas over
the next five years offering salaries ranging from $50,000 to over $200,000. Over ten years
InCube-related companies will spend about $100 million. CEO Mir Imran has founded
more than 20 companies, holds more than 200 patents, and with partners manages the
venture fund InCube Ventures.2134
Neurolink Inc. – The early-stage company is developing a new therapy for the treatment
of epilepsy.2135 See the 2010 InCube Labs entry for more information.
SunPower Corp. The company, HQ’d in San Jose, will create a new U.S. operations
center in Austin, creating 450 jobs and generating an estimated $10 million in capital
272
4,000
$100
NQF
#CH
#MA
#RD
}CDO
}OSO
Costa Rica >
Unknown
NJR
N$R
NQF
#MA
#PB
}OSO
}REL
Santa Clara
↔ Santa
Clara
Santa Clara
↔ Santa
Clara
Singapore >
Singapore
NJR
N$R
NQF
#MA
#PB
}CDO
}OSO
Singapore >
Singapore
800
$60
NQF
#MA
#SC
}CDO
}OSO
Santa Clara
↔ Santa
Clara
China > Xian
NJR
N$R
NQF
#GR
#RD
}CDO
}OSO
Santa Clara
↔ Santa
Clara
Mexico >
Guadalajara
750
$180
NQF
#CH
#MA
#RD
}CDO
}OSO
Santa Clara
↔ Santa
Clara
Israel > Unknown
NJR
N$R
NQF
#CH
#MA
#SC
}OSO
}CLO
}REL
Santa Clara
↔ San Jose
Taiwan > Taipei
Santa Clara
↔ San Jose
investment. The new facility will house marketing, legal, finance and accounting functions.
SunPower Corp. designs, manufactures and delivers solar technology worldwide for
residential, commercial and utility-scale power plant customers.2136 It is the third largest
solar company world-wide based on 2009 revenues of $1.52 billion.2137 The company is
ultimately looking for 100,000 sq. ft. of space.2138 Jim Pape, SunPower’s president, said,
“We’re looking at every new 2011 hire and asking, ‘Why not in Austin?’”2139 [Along with the
new-hire issue, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Texas leading to a reduction
in expenses.]
Super Micro Computer Inc., a storage and server manufacturer, will set up a facility in
Taiwan. According to the Taipei Times, “The company will recruit up to 4,000 staff
members to run the center, which will include logistical, manufacturing and R&D functions.
‘The company is facing high labor costs at its research site in Silicon Valley. Moving to
Taiwan will help it cut costs and it could also take advantage of the ample resources of the
tech supply chain here,’ sources said.”2140
Tyco Healthcare Group LP, D/B/A Covidien, Vascular Therapies furloughed employees
and on-site leased workers producing medical devices and supplies and shifted production
to Costa Rica. The Dept. of Labor didn’t identify the community in that country, nor did it
provide a figure for the number of jobs lost, but indicated that furloughs may have begun
as early as May 20, 2010.2141
Agilent Technologies Inc. opened its new life sciences instruments manufacturing facility
in Singapore to produce Liquid Chromatography-Mass Spectrometry (LC/MS) instruments
for the global market.2142
Applied Materials, Inc. – The company opened a new $60 million operations center in
Singapore, which will be its hub for semiconductor manufacturing around the world. The
company reported in 3Q 2010 that transition of manufacturing to Asia continues. By 2012,
about 50% of the company’s semiconductor equipment shipments will be out of Singapore
and the rest from Austin, Texas.2143 The company said it plans to double its workforce at
the center in the next few years, including positions for highly skilled workers.2144
Applied Materials, Inc. – The world’s biggest supplier of equipment used to build
semiconductors, solar panels and flat-panel displays built its largest R&D lab in China.2145
One reason for the move is that China (along with India and Israel) are giving their people
better technical educations than is being done in the United States.
Intel Corp. – The company will expand a research center in Mexico. The company said,
“The design center in Mexico is a shining example within Intel of a great investment ....
The center, which began with 33 employees, has grown to 440 and will almost double to
750 after the new facility is built. The group in Mexico had completed 40 research projects
as of July [2010].” As to Mexico’s increase in gang violence, “We haven’t found that to be a
limiter for us at all at Intel.”2146
Intel Corp. furloughed employees in Santa Clara because the company shifted production
of semiconductor chips to Israel. The Dept. of Labor didn’t identify the community in that
country, nor did it provide a figure for the number of jobs lost, but it indicated that furloughs
may have begun as early as May 15, 2010.2147
273
Santa Clara
↔ Santa
Clara
Santa Clara
↔ Santa
Clara
Vietnam > Ho Chi
Minh City
NJR
$1,000
316
#CH
#MA
#SC
}CDO
}OSO
Intel Corp. opened its biggest-ever semiconductor plant, it’s in Vietnam and is the size of
five-and-a-half football fields (about 316,800 sq. ft.) at a cost of $1 billion.2148
Texas > Plano
NJR
N$R
NQF
#DO
#EN
#IT
#SB
#SO
}CDO
}REL
Santa Clara
↔ Santa
Clara
Santa Clara
↔ Santa
Clara
Santa Clara
↔ Santa
Clara
Oregon >
Beaverton
NJR
N$R
NQF
#SB
}REL
McAfee, Inc. According to Forbes, David DeWalt, who heads McAfee said he is
“intentionally not hiring new staff in the Golden State. Even worse for California, the
company a while ago transferred entire departments elsewhere. Is McAfee based in
California? Kind of. Only 14%, or roughly 900, of McAfee’s 6,500 employees are left in
Silicon Valley. DeWalt figures he can save 30 to 40% every time he hires outside of
California. And that’s roughly the premium he has to pay in the form of a moving bonus to
get someone to relocate to California.... There is, of course, the higher housing costs that
push up salaries. And California’s high income tax rates, which act as immediate
surcharges on salaries.” McAfee shifted some 1,000 jobs in legal, HR and finance to
Texas, Oregon and Ontario, Canada and India.2149
McAfee, Inc. See the 2010 Plano event for this company for more information.
India > Bangalore
NJR
N$R
NQF
#SB
}OSO
}REL
Chile > Santiago
100
N$R
NQF
#QA
#RD
#SO
Santa Clara
↔ Sunnyvale
Foreign Nation >
Unknown
NJR
N$R
NQF
#CH
}OSO
Santa Clara
↔ Sunnyvale
Canada >
Ontario, Vaughan
NJR
N$R
NQF
#GR
}CDO
}OSO
Santa Clara
↔ Sunnyvale
Texas > Austin
150
N$R
NQF
#EN
#SB
}CDO
McAfee, Inc. See the 2010 Plano event for this company for more information.
McAfee, Inc. will open a new lab in Santiago that will employ quality assurance engineers
researchers, and developers with the possibility of expansion. 2150 Often, offshore
expansions by growing international companies are excluded from this report. However,
the nature of the technology work shows that this is more than a back office or call center.
By opening day, the facility had more than 100 employees.2151 Also, see comments by
McAfee in the Plano entry for this year.
Advanced Micro Devices, Inc. (AMD) furloughed employees and on-site leased workers
designing microprocessors because the company acquired such services from a foreign
country. The Dept. of Labor didn’t identify the country, nor did it provide a figure for the
number of jobs lost, but indicated that furloughs may have begun as early as Feb. 13,
2010.2152
Calisolar Inc. (now Silicor Materials, Inc.) acquired 6N Silicon Inc., an Ontario-based
company, and a portion of the transaction funds will be invested in expanding operations in
the 6N Silicon plant in Ontario.2153 Update: Calisolar’s new owner, Silicor Materials, in
2014 shows a Vaughan, Ontario address.2154
ShoreTel Inc. – The seller of Internet-protocol business phone systems had a grand
opening of a facility in Texas.2155 It’s hiring 150 workers in Austin during the next two
years, including 60 in the near-term. The jobs will be in engineering, customer service call
center, training and development.”2156 CEO John W. Combs said “The beauty of the
ShoreTel system is that it lets us have offices anywhere, while ensuring close collaboration
among our teams” and “Austin exceeded our expectations in many criteria, including work
ethic, quality of education, local vibrancy and talent pool.” The company uses 30,000 sq. ft.
and expects space requirements to grow.2157 [Along with the reasons cited, it’s
conceivable that the location decision was influenced by lower business and employee
costs, taxes and fewer regulations in Texas leading to a reduction in expenses.]
274
Santa Clara
↔ Sunnyvale
New York >
Lockport
100
N$R
191
#DO
#EN
#IT
}CDO
Santa Cruz
↔ Davenport
Unknown >
Dispersed
120
N$R
NQF
#CS
#MA
}CLO
}DSP
Shasta ↔
Redding
Shasta ↔
Redding
Unknown >
Dispersed
Nevada > Las
Vegas
65
N$R
NQF
#MA
}CLO
}DSP
8
N$R
NQF
#ET
}CLO
}REL
Siskiyou ↔
Mount Shasta
Unknown >
Dispersed
50
N$R
NQF
#FP
#MA
}CLO
}DSP
Solano ↔
Benicia
North Carolina >
Lenoir
21
$2.2
60
#CP
#MA
}UTN
Solano ↔
Fairfield
India > Unknown
NJR
N$R
NQF
#SB
}OSO
}REL
Solano ↔
Fairfield
Missouri > Mexico
(town of)
20
N$R
NQF
#FP
#RD
}REL
Solano ↔
Vallejo
India > Unknown
3
N$R
NQF
#PA
}OSO
}REL
Yahoo Inc. – The social media company will open a data center in Lockport, 20 miles
northeast of Buffalo. Yahoo referred to the New York Power Authority’s “low-cost
hydropower” as an attractive factor.2158 (Note: Hydropower is opposed by California
environmentalists.) It is a 191,000 sq. ft. facility.2159 [Yahoo’s experience in Buffalo is the
norm in that data centers use significant amounts of electricity and such costs are lower in
most states than in California.]
Cemex – The Mexico-based company closed its Davenport cement plant. The Santa Cruz
Sentinel said the facility was opened in 1906 and was the biggest contributor to the
county’s property tax roll. Environmental regulations and permitting constraints and the
cost of unionized labor contributed to the decision to close. “The Davenport facility was the
most expensive of Cemex’s 14 plants in the United States to operate.”2160
Fintech Precast Inc. – The company, which manufactured precast walls for buildings,
closed in April.2161
Morpheus Lights, an entertainment lighting company, which relocated to Redding 12
years ago to escape Silicon Valley, closed its operation and consolidated operations at its
Las Vegas HQ. Even after a move of its HQ from Redding to Las Vegas several years
ago, Morpheus kept its main production and manufacturing facility in Redding. The
company has provided fixed lighting systems for some of the biggest acts in music,
including Bruce Springsteen and Ringo Starr. Its resume also includes Garth Brooks,
Metallica, Styx, REO Speedwagon, Broadway and the Academy Awards. Morpheus
initially had about 30 people working in Redding, prior to it moving its HQ to Las Vegas.2162
Coca-Cola North America will close its plant. The $30 million Coca-Cola watering bottling
plant, formerly known as Dannon, opened in 2001 and at one time employed up to 200
people. The company has other bottling plants in Anaheim, Grand Prairie, Texas; High
Springs, Fla.; and Milesburg, Pa.2163
Tasz Inc., a cork maker, is investing $2.2 million and creating 21 jobs in Lenoir, North
Carolina. Dr. Chakra V. Gupta, president and owner of Tasz, describes Lenoir as a
“central location for serving the wine industries in the eastern and northeastern U.S.,
Canada, South America, and Europe.” After evaluating California and other locations, “we
determined that Caldwell County and Lenoir provided ideal place to establish the Tasz Inc.
investment.” The company will build a 60,000-sq. ft. manufacturing facility to develop,
produce, and market synthetic corks for the wine and spirits industry. Tasz will produce the
corks under its NeoCork brand.2164
AAA Northern California, Nevada & Utah Insurance Exchange, Finance and
Administration Operations, furloughed employees who provide membership account
services because the company shifted such services to India. The Dept. of Labor didn’t
identify the community in that country, nor did it provide a figure for the number of jobs
lost, but indicated that furloughs may have begun as early as Feb. 13, 2010.2165
Soy Labs LLC – The nutraceutical company broke ground in April for a new Plant Science
Center. The relocation will create at least 20 high-paying jobs in the area.2166
California Newspaper Limited Partnership, a subsidiary of MediaNews Group, dba
Vallejo Times Herald, furloughed employees producing graphical advertisements because
the company shifted the work to India. The Dept. of Labor didn’t identify the community in
275
Sonoma ↔
Cloverdale
China > Unknown
NJR
N$R
NQF
#CP
#MA
#PL
}OSO
}REL
Sonoma ↔
Santa Rosa
Foreign Nation >
Unknown
NJR
N$R
NQF
#EC
#MA
}OSO
}REL
Stanislaus ↔
Modesto
Oregon >
Portland
12
N$R
7.3
#CL
#DO
#HQ
}REL
Stanislaus ↔
Modesto
Unknown >
Dispersed
186
N$R
NQF
#AU
#MA
}CLO
}DSP
Stanislaus ↔
Riverbank
Nevada > Reno
6
N$R
NQF
#EN
#HQ
#MA
#RD
}CLO
}REL
Stanislaus ↔
Turlock
Unknown >
Dispersed
150
N$R
NQF
#MA
}CLO
}DSP
Tulare ↔
Tulare
Unknown >
Dispersed
80
N$R
NQF
#MA
}CLO
}DSP
Unknown ↔
Unknown
Nevada > Las
Vegas
NJR
N$R
NQF
#GA
#HQ
#SO
Unknown ↔
Unknown
Arizona > Oro
Valley
500
$180
182.4
#HQ
#IT
#MA
}UTN
that country, nor did it provide a figure for the number of jobs lost, but indicated that
furloughs may have begun as early as July 19, 2010.2167
Dimensions Crafts, LLC, furloughed employees and “the employment decline is related
to the shift in production of plastic beads and/or plastic pegboards to a foreign country,”
which is China. The Dept. of Labor didn’t identify the community in that country, nor did it
provide a figure for the number of jobs lost, but indicated that furloughs may have begun
as early as April 11, 2010.2168
JDS Uniphase Corp., (a.k.a JDSU) a telecommunications company, furloughed
employees producing custom optical coated products because the company shifted such
work to a foreign country. The Dept. of Labor didn’t identify the country, nor did it provide a
figure for the number of jobs lost, but indicated that furloughs may have begun as early as
Feb. 13, 2010.2169
Hi-Tec Sports USA – The sports and outdoor footware company, based in Modesto for 30
years, moved headquarters to Oregon. Shipping will remain in Modesto. The company is a
subsidiary of privately held Hi-Tec Sports plc of London, England.2170 The company will
move into a 7,300-sq. ft. space.2171
Trim Masters Inc. – All jobs at the plant were lost in March as a result of the shutdown of
the NUMMI factory. At one point corporate officials were optimistic that the facility might
continue to supply a plant in Mexico.2172 As of this writing in 2010, it appears that the plan
didn’t work out.
Advanced Materials & Manufacturing Technologies (AM2T), an engineering company
that produces exotic, high-performance materials for use in mining, oil production, missile
systems and military applications, moved its headquarters from Riverbank to Reno.
According to Mic Meeks, executive director for AM2T, the company plans to initially hire
between six to eight employees at is Reno operation in various materials research and
development, technical marketing and support positions. As demand for its products
increase, Meeks says the company will build a redundant heavy manufacturing operation
in Reno similar to that which is in California.2173
Hormel Foods Corp. – The company will close its canning plant in October, affecting
about 150 workers. Employees may be able to work at one of four other food processing
facilities that the company runs in California. The plant had produced canned meats since
2006.2174 See also a 2014 closure of a Hormel plant in Stockton that also produced
canned meat products.
Land O’ Lakes will idle its cheese manufacturing plant in Tulare sometime during the
latter half of 2010. Land O’Lakes is offering employees assistance through counseling and
referrals. The company will work with the Teamsters Union regarding the transition.2175
InstantAction – When Louis Castle agreed to become CEO for the game software
company, one of the conditions was that Las Vegas be considered as a site for the
company’s headquarters instead of California. He cited the lower cost of living compared
to Silicon Valley and Los Angeles. A game designer making $65,000 to $80,000 a year will
be able to make it go much further in Las Vegas, including the ability to purchase a
house.2176
Roche / Ventana Medical Systems – The Switzerland-based bioscience and
pharmaceutical company, after looking at unspecified locations in California, scratched the
276
#PB
Ventura ↔
Camarillo
Nevada >
Henderson
NJR
N$R
NQF
#EH
#HQ
}REL
Ventura ↔
Camarillo
Maryland >
Frederick
150
N$R
NQF
#PB
}CLO
}REL
Ventura ↔
Camarillo
Arizona >
Phoenix
350
$40
122
#EC
#GR
}CDO
Ventura ↔
Camarillo
China > Unknown
450
N$R
NQF
#CH
#EC
#MA
}OSO
}REL
Ventura ↔
Moorpark
Mexico > Tijuana
NJR
N$R
NQF
#AU
#EC
#MA
}OSO
}REL
Ventura ↔
Oxnard
Tennessee >
Dayton
40
N$R
NQF
#PA
}CLO
}REL
Ventura ↔
Oxnard
China > Unknown
191
N$R
NQF
#EC
#MA
}OSO
}REL
state off its list for a new 500-employee headquarters in favor of Oro Valley, a high-growth
community near Tucson. The five-year project will total about $180 million in capital
investment. The jobs at the Ventana Medical Systems subsidiary will have an average
salary of $75,000. The facility will be located near a University of Arizona drug lab, the
Bio5 Institute, which helps move research into the marketplace. The site will have
manufacturing, national sales and marketing, HR, IT, finance, and organizational
positions.2177 A 182,400 sq. ft. building was built with the shell going up in 90 days,2178
which is faster than what could have been achieved in California. Note: Roche is familiar
with California in that Genentech, a member of the Roche Group, has its HQ in South San
Francisco.
Barbour Well, Inc. moved its headquarters to Nevada. The company, an oil and
geothermal drilling service, has worked in California and the Western U.S. for more than
20 years and also serves the Pacific Rim as far as Hawaii and Japan.2179
Life Technologies Corp. – The biotechnology tools company will shut down its Camarillo
facility in 2011 and 150 workers will lose their jobs. Camarillo’s activities will be moved to
Maryland. The company was formerly known as Invitrogen Corp.2180
Power-One Inc. plans to invest as much as $40 million in Phoenix within five years.2181 It
opened a 122,000 sq. ft. building in Phoenix to manufacture inverters.2182 The devices
allow for power collected from devices such as solar panels to be converted from direct
current to alternating current. Power-One has facilities in Italy and China. The Phoenix
factory is the company’s first in the U.S. Power-One already has lured a supplier to the
U.S. Faist PLC, a London-based company, which will open a nearby facility to produce the
inverter cases.2183 The University of Arizona was an important factor because it produces
more than 80 engineers a year and has ties to the U.S. Department of Energy. Power-One
has been based in Camarillo for about 40 years.2184 [In addition to the availability of
engineering talent, it’s conceivable that the location decision was influenced by lower
business and employee costs, taxes and fewer regulations in Arizona leading to a
reduction in expenses.]
Zebra Technologies Corp. – The company is shifting manufacturing of bar code label
printers and other items by outsourcing up to 450 jobs to China. Zebra’s plan is to move all
production by midyear, leaving about 200 employees in Camarillo.2185
Kavlico Corp., a subsidiary of Custom Sensors and Technologies (CST), a subsidiary of
Schneider Electric, furloughed employees and on-site leased workers producing pressure
sensors for the industrial and automotive markets because the company shifted the work
to Mexico. The Dept. of Labor didn’t provide a figure for the number of jobs lost, but
indicated that furloughs may have begun as early as Aug. 26, 2010.2186 The location is
likely to be Tijuana, where the company has a plant to which Moorpark work has been
previously transferred.2187
Buckaroo Communications, a publisher of several magazines, moved its headquarters
from Oxnard, Calif., to Dayton, Tenn., where it has more than 40 employees; 27 reportedly
moved from Oxnard. One employee said he “did not hesitate” to relocate because the
people in Dayton impressed him. The community, he observed, “is a lot like Mayberry.”2188
CalAmp Products, Inc., Satellite Products Division, furloughed employees and on-site
leased workers producing Low Noise Block Feed converter-amplifiers for satellite TV
277
Ventura ↔
Oxnard
Foreign Nation >
Unknown
NJR
N$R
NQF
#EC
}OSO
}REL
Ventura ↔
Ventura
India > Unknown
20
N$R
NQF
#PA
}OSO
}REL
Ventura ↔
Westlake
Village
Texas > Irving
120
$3.3
26.7
#EC
#HQ
}CDO
Yolo ↔ Davis
Foreign Nation >
Unknown
NJR
N$R
NQF
#PB
#SB
}OSO
}REL
because the company shifted the work to China. The Dept. of Labor didn’t identify the
community in that country, nor did it provide a figure for the number of jobs lost, but
indicated that furloughs may have begun as early as Aug. 18, 2010.2189
Nevion USA, Inc., a subsidiary of Nevion Europe, furloughed employees and on-site
leased employees producing video transport equipment (infrastructure for broadcasters,
telecommunication service providers and others) because the company shifted the work to
a foreign country. The Dept. of Labor didn’t identify the country, nor did it provide a figure
for the number of jobs lost, but did indicate that furloughs may have begun as early as
April 26, 2010.2190
Third Degree Graphics furloughed graphic design employees because “E. W. Scripps
and The Ventura County Star, our largest accounts, switched all their graphic services to
an Indian graphics services outsource company.” The Dept. of Labor didn’t identify the
community in India and indicated that furloughs may have begun as early as Feb. 13,
2010. The event will affect 20 jobs.2191
Consolidated Electrical Distributors Inc. (CED), one of the country’s largest electrical
equipment firms, is relocating its headquarters and about 120 jobs to the Las Colinas
section of Irving; capital investment will total an estimated $3.3 million. The company
operates out of more than 500 locations in 45 states. It supplies electrical system parts to
residential, commercial and industrial customers, has more than 6,000 U.S. employees
and has been in business since 1957. The establishment of Irving as its “point of sale” for
inventory purchased and resold in Texas means the state will benefit from the company’s
generation of taxable annual sales. It’s buying a building and will occupy 26,750 sq. ft. of
space.2192
Novozymes, Inc., a biotechnology company and subsidiary of Novozymes US, Inc.,
furloughed employees in its finance department because the company shifted the work to
a foreign country. The Dept. of Labor didn’t identify the country, nor did it provide a figure
for the number of jobs lost, but indicated that furloughs may have begun as early as Feb.
13, 2010.2193
278
Chapter 22: Details Regarding 2009 Disinvestment Events
California Disinvestment Events for 2009 as shown in Table 21 are self-explanatory. Quite often in public domain sources
information was lacking about jobs, capital investments and square footage. In such cases, the following codes will appear:
NJR – No Job Number Reported
N$R – No Capital Investment Reported
NQF - No Square Footage Reported
Table 21: California Disinvestment Events for 2009
California
County &
Locality
Destination
Location
Alameda ↔
Alameda
Ireland >
Unknown
Alameda ↔
Fremont
China > Unknown
Jobs
Private
Capital
(million)
Sq. Ft.
(000)
Function or
Industry
Codes
Event
Type
NJR
N$R
NQF
#PB
#MA
}OSO
}REL
96
N$R
NQF
#MA
#RD
}OSO
}REL
Malaysia >
Unknown
}OSO
}REL
Alameda ↔
Hayward
Unknown >
Dispersed
299
N$R
NQF
#GR
}CLO
}DSP
Alameda ↔
Hayward
Arizona >
Phoenix
400
N$R
101.3
#CP
#DO
#DN
#EN
#IT
}CLO
}REL
Information Available through Public Domain Sources
Abbott Diabetes Care, Inc. furloughed employees because the company shifted diabetes
test strips production to Ireland. The Dept. of Labor failed to specify which community
within that country, but indicated that furloughs may have begun as early as Nov. 18,
2009.2194
Seagate Technology, LLC, Fremont Media Research Center, furloughed employees and
it shifted manufacturing of hard disc drives and research and development to China and
Malaysia. The Dept. of Labor failed to specify which country, but indicated that furloughs
may have begun as early as May 10, 2009.2195 The furlough figure is from a WARN Notice.
During the same period the company furloughed 118 workers in Milpitas.2196 However,
since it’s unknown if Milpitas layoffs were related to the shift in work the figures are
excluded from this report. It’s also unknown how many of the 96 jobs that were shifted
went to China and how many to Malaysia.
OptiSolar Technologies issued a WARN Notice indicating that 299 Hayward employees
were furloughed. See the company’s 2009 Sacramento entry for more details about this
event.
Shutterfly, Inc. will close its Hayward facility, furlough 106 employees and relocate work
to Arizona “to help it tap lower labor costs outside of California.” CFO Mark Rubash said,
“The labor costs in Phoenix are about the same as Charlotte (where the company has
another production facility), and that’s about a 30 percent to 35 percent reduction from
Hayward levels.” CEO Jeffrey Housenbold estimated the relocation’s break-even point
would come in 12 to 18 months. Shutterfly incurred about $80,000 in lease-termination
costs in Hayward, it said in a filing with the SEC, and will incur about $800,000 in
279
Alameda ↔
Hayward
China > Shanghai
Alameda ↔
Hayward
Alameda ↔
Newark
84
N$R
NQF
#AE
#CH
#DF
#EC
#MA
}OSO
}CLO
}REL
Connecticut >
Stafford Springs
Wisconsin >
Caledonia
NJR
N$R
NQF
20
N$R
NQF
#CS
#GR
#MA
}CDO
Alameda ↔
Oakland
Arizona >
Scottsdale
350
N$R
65
#DN
#HQ
}CLO
}REL
Alameda ↔
Oakland
Foreign Nation >
Unknown
NJR
N$R
NQF
#IT
#PB
}OSO
}REL
Contra Costa
↔ San
Ramon
Brazil > Unknown
NJR
N$R
NQF
#SB
}OSO
}REL
El Dorado ↔
El Dorado
Hills
India > Unknown
NJR
N$R
NQF
#EC
#SB
#SO
}OSO
}REL
Los Angeles
↔ Beverly
Hills
Tennessee >
Memphis
100
N$R
NQF
#HC
#HQ
#SB
}CLO
}REL
Los Angeles
↔ Beverly
Hills
Virginia > McLean
400
$1.8
323
#HC
#HQ
}CLO
}REL
}REL
severance costs.2197 The company will hire up to 400 workers in Phoenix, and leased
101,269 sq. ft. for production, warehousing and data-storage purposes. Positions include
manufacturing managers, equipment technicians, equipment operators and others. 2198
TTM Technologies, Inc. The printed circuit board manufacturer will close its Hayward
plant and transfer work to China and Stafford Springs, Conn. The company expects to
record between $11 million and $14 million in separation, asset impairment and disposal
costs related to the Hayward closing.2199 (The company’s 2009 relocation of Los Angeles
work is listed separately.)
TTM Technologies, Inc. See the Company’s 2009 Shanghai event for more information.
CalStar Products, Inc. was awarded $2.44 million in federal clean energy tax credits. In
2009, CalStar opened a unique plant in Wisconsin where it manufactures architectural
bricks and pavers from coal power plant fly ash.2200 About 20 jobs were created.2201
APL – The subsidiary of Neptune Orient Lines Ltd. of Singapore (and formerly known as
American President Lines Ltd.) relocated its U.S. headquarters to Arizona as one of a
series of cost-saving measures.2202 NOL’s Regional President for the Americas, John
Bowe, said, “The greater Phoenix area will be a cost-effective base of operations for us
and we’re going to a state that is well-known for its support and encouragement of
business.... and the civic and business community has been very welcoming.”2203 APL, the
world’s fifth-largest container-shipping company, will have about 350 employees in
Phoenix2204 in a 65,000 sq. ft. space.2205
Kaiser Foundation Hospitals, KPIT Division furloughed employees because the
company shifted information technology services to a foreign country. The Dept. of Labor
failed to specify what country, but indicated that furloughs may have begun as early as
Sept. 29, 2009.2206
International Business Machines (IBM) furloughed employees because the company
shifted database administration services to Brazil. The Dept. of Labor failed to specify
which community within that country, but indicated that furloughs may have begun as early
as Dec. 22, 2009.2207
Amdocs BCS, Inc. furloughed employees because of a shift of work to India. The Dept. of
Labor failed to specify which community within that country, but indicated that furloughs
may have begun as early as April 8, 2009.2208 The jobs were related to software design,
development, testing, customer support, and managed services for the broadband, cable,
and satellite industries.
Hilton Garden Inn is moving its headquarters, and Hilton Shared Services will also
relocate, together creating 100 jobs in Memphis. The Memphis “hub will continue to house
a significant number of brands and our back-office operations, supporting all our
businesses, improving operations and cost-efficiency,” president and CEO Christopher J.
Nassetta wrote in a memo to employees.2209 The Hilton relocation that garnered the most
media coverage in 2009 was the move of its Beverly Hills HQ to Washington DC; see
separate entry for that event.
Hilton Hotels Corp. – Its headquarters move to McLean was significant because of the
company’s size – it has more than 3,600 hotels in 80 countries – and brand recognition.
About 220 of the 350 employees working at the new HQ are new hires, which suggests a
280
Los Angeles
↔ Burbank
India > Unknown
300
N$R
NQF
#ET
#IT
#SB
}OSO
}REL
Los Angeles
↔ Burbank
Poland >
Unknown
300
N$R
NQF
Los Angeles
↔ Carson
Los Angeles
↔ Carson
Oregon > Salem
NJR
$80
130
#GR
#MA
}CDO
Mexico >
Monterrey
NJR
N$R
NQF
#GR
#MA
}CDO
}OSO
Los Angeles
↔ City of
Industry
China > Unknown
NJR
N$R
NQF
#DN
}OSO
}REL
Los Angeles
↔ City of
Industry
China > Unknown
NJR
N$R
NQF
#CL
#MA
}OSO
}REL
Los Angeles
↔ City of
Industry
Los Angeles
↔ City of
Industry
Los Angeles
↔ Culver City
Missouri >
Jefferson City
61
N$R
NQF
#CP
#MA
}CLO
}REL
North Carolina >
Raeford
NJR
N$R
NQF
India > Unknown
NJR
N$R
NQF
}OSO
}REL
}REL
#IT
#SB
}OSO
good number of staff agreed to relocate. Hilton moved into an 11-story, 323,000-sq. ft.
building In McLean in August 2009.2210 A later report indicated that the company will invest
$1.8 million to expand the operation, adding 100 jobs, bringing the job total to 400. 2211
Curiously, the $1.8 million appears to be for the expansion; the original investment Hilton
made in the new property is elusive. Also, see the 2009 entry for Hilton moving part of the
Beverly Hills HQ to Memphis.
Warner Brothers Entertainment Inc. The company’s Burbank headquarters will see job
losses, with about 450 people being terminated and 150 open positions being shed. Of
those, it appears that about 300 positions in management information systems, finance
and accounting will be outsourced to India and Poland over the next year. The move is
expected to save the movie and television studio more than $50 million annually.2212 Since
it isn’t known how many jobs will go to which nation, for the purposes of this report half of
the total is assigned to each.
Warner Brothers Entertainment Inc. – See the 2009 entry for India for this company for
more information about this event.
Sanyo Electric Co. opened a manufacturing plant for photovoltaic products, an $80
million facility, in Oregon.2213 The 130,000-sq. ft. factory has room to grow.2214
Sanyo Energy opened a new solar plant in Mexico, with a capacity of 50-Megawatts
annually. “Our Monterrey plant was our first overseas module assembly facility in our solar
business,” said Mitsuru Homma, EVP of Sanyo Electric Co., Ltd. “The Monterrey plant is
an important and vital production location in North America for the assembly of our world’s
highest efficiency HIT modules, and feel that the work done here has largely contributed to
the growth in sales in North America and will remain a factor as this region continues to
grow.”2215
Mattel, Inc. furloughed employees in its Global Logistics Organization’s Distribution
Center when the company shifted distribution services to China. The Dept. of Labor failed
to specify which community within that country.2216 Note: a figure from a WARN Notice
shows that 106 Mattel employees in the City of Industry were furloughed.2217 However,
during the year, Mattel also consolidated that operation into a San Bernardino facility.
Since it’s unclear how many jobs were lost to China, no furlough figure is included in this
report for this event.
San Malone Enterprises, Inc., a men’s clothing company, furloughed workers involved in
manufacturing, sales, and warehousing management because the company shifted
services to China. The Dept. of Labor failed to specify which community within that
country.2218
Unilever PLC – The consumer products maker will close its plant in 2010 as part of a
cost-reduction move. The plant manufactured branded personal care products for Dove,
Suave and AXE. The work will shift to Unilever plants in Missouri and North Carolina.2219
Unilever PLC – See more details in Unilever’s 2009 Jefferson City entry for more
information.
Sony Pictures Entertainment furloughed employees and caused the furloughs of on-site
leased workers in its IT Department engaged in software and application development,
281
Los Angeles
↔ El Monte
Unknown >
Dispersed
240
N$R
NQF
#MA
}CLO
}DSP
Los Angeles
↔ El
Segundo
Colorado >
Denver
500
$101.1
270
#EN
#HQ
#IT
#PB
}CLO
}REL
Los Angeles
↔ El
Segundo
Los Angeles
↔ El
Segundo
Arizona >
Phoenix
NJR
N$R
NQF
#DC
}CLO
}REL
India > Unknown
NJR
N$R
NQF
#SB
#SO
}OSO
}REL
Los Angeles
↔ El
Segundo
Foreign Nation >
Unknown
NJR
N$R
NQF
#IT
#SB
}OSO
}REL
Los Angeles
↔ Glendale
Foreign Nation >
Unknown
NJR
N$R
NQF
#BF
}OSO
}REL
Los Angeles
↔ La Mirada
Unknown >
Dispersed
84
N$R
NQF
#MA
}CLO
}DSP
}REL
Los Angeles
↔ La Mirada
Foreign Nation >
Unknown
NJR
N$R
NQF
#MA
}OSO
}REL
Los Angeles
↔ Long
Beach
Arizona > Mesa
75
N$R
101
#AE
#QA
#SB
}REL
help desk, data center, and infrastructure monitoring functions because the firm acquired
software and application development services in India. The Dept. of Labor failed to
specify which community within that country, but indicated that furloughs may have begun
as early as June 28, 2009.2220
Gregg Industries, owned by Neenah Enterprises Inc. in Wisconsin, closed a foundry in El
Monte. Although the poor economy was a factor, also key was the South Coast Air Quality
Management District demanding $5 million in upgrades. The company had a 65-year
history in California.2221
DaVita Inc. – The bioscience firm will save millions of dollars over time as a result of
moving its headquarters. DaVita (Italian for “giving life”) provides services for people with
chronic kidney disease. It is a Fortune 500 company with nearly $6 billion in annual
revenues and more than 32,000 employees. The company said among the reasons for the
move is the relative costs in the new area are less expensive for families and the
company.2222 The company eventually built a $101.1 million, 270,000-sq. ft. office
building.2223
DirecTV closed its El Segundo data center and considered out-of-state sites in Arizona,
Texas, Nevada and perhaps elsewhere. Ultimately, Phoenix was selected.2224
International Business Machines (IBM), Global Business Services, shifted supply
application management services (supporting the Disney account) in El Segundo and
Costa Mesa to India. The Dept. of Labor didn’t identify the community in that country, but
indicated that furloughs may have begun as early as June 3, 2009.2225
Mattel, Inc. Infrastructure Services, furloughed employees and on-site leased
employees in El Segundo providing help desk and informational technology services
because the company shifted the work to a foreign country. The Dept. of Labor failed to
specify what country, but indicated furloughs may have begun as early as July 20,
2009.2226
Sigue Corp., f.k.a. Envios El Cid, Inc. furloughed employees because the company shifted
money transfer services to a foreign country. The Dept. of Labor failed to specify what
country, but indicated that furloughs may have begun as early as June 28, 2009.2227
Klaussner Home Furnishings closed its manufacturing plant while maintaining its North
Carolina and Iowa operations. The company began operations in California in 1984. CEO
J.B. Davis said, “This move will allow us to reduce our overall production costs which will
enable us to improve our competitiveness.”2228
United States Gypsum furloughed employees as a result of acquiring products from a
foreign country articles “like or directly competitive with articles produced by the workers”
in La Mirada. The Dept. of Labor failed to identify the countries and indicated that
furloughs from January through May, 2009.2229 The Dept. of Labor failed to specify which
country. The company stated that it “permanently closed” the La Mirada sealants and
finishes production facility.2230
Cessna Aircraft Co. relocated a service center to the Phoenix-Mesa Gateway Airport
(IWA), built a 101,000-sq. ft. facility for hangar space, office and shop areas. Cessna has
developed 12 acres flanking three 10,000-foot runways and a 124,800-sq. ft. aircraft ramp.
282
Los Angeles
↔ Long
Beach
Foreign Nation >
Unknown
NJR
N$R
NQF
#TP
}OSO
}REL
Los Angeles
↔ Los
Angeles
Uruguay >
Unknown
NJR
N$R
NQF
#SB
}OSO
}REL
Los Angeles
↔ Los
Angeles
Canada >
Unknown
NJR
N$R
NQF
#DN
}OSO
}REL
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
Arizona >
Phoenix
200
$70
NQF
#MA
#PB
}CDO
Washington >
Vancouver
NJR
N$R
NQF
#CL
#HQ
#DN
}CLO
}REL
Los Angeles
↔ Los
Angeles
Foreign Nation >
Unknown
NJR
N$R
NQF
#SB
}OSO
}REL
Los Angeles
↔ Los
Angeles
Texas > San
Marcos
190
$76
72
#MA
#PB
}CDO
Los Angeles
↔ Los
Angeles
Foreign Nation >
Unknown
NJR
N$R
NQF
#EN
#RD
#SO
}OSO
}REL
The center employs more than 75 maintenance professionals, about 65% of whom were at
Long Beach and accepted the offer to relocate to Mesa. 2231
MOL (America), Inc., a.k.a MOL Information Technology America (MOL-IT America),
furloughed employees because the company “shifted to a foreign country... services like or
directly competitive with the cargo transportation and shipping services supplied” by Long
Beach employees. The Dept. of Labor failed to specify what country and also failed to
provide specifics about the services involved, but indicated that furloughs may have begun
as early as Nov. 19, 2009.2232
PricewaterhouseCoopers LLP, Internal Firm Services Division, Client Account
Administrators, furloughed employees who provided client account administration services
because the company shifted the work to Uruguay. The Dept. of Labor failed to specify
which community within that country, but indicated that furloughs may have begun as early
as March 12, 2009.2233
Staedtler, Inc. furloughed employees who supplied wholesale distribution services of
writing and drafting supplies because the company shifted the work to Canada. The Dept.
of Labor failed to specify which community within that country, but indicated furloughs may
have begun as early as May 27, 2009.2234
Abraxis Health – The unit of L.A.-based Abraxis BioScience Inc., opened a new plant in
Arizona. This follows the company’s 2007 and 2008 Phoenix expansions, all of which
represent opportunity costs to California.2235
Agave – The apparel company will move its corporate headquarters and build a
distribution center. CEO Jeff Shafer said he moved his family from Los Angeles because
he wanted his kids to grow up in a “more normal place.” Also, the ports of Vancouver and
Portland are “easy to get in and out of,” making shipping products easier than in Los
Angeles. Agave jeans are manufactured exclusively in the U.S. 2236 [Along with the reasons
cited, it’s conceivable that the location decision was influenced by lower business and
employee costs, taxes and fewer regulations in Washington leading to a reduction in
expenses.]
Genascis, LLC, formerly known as Physician Management Group, furloughed employees
and on-site leased workers because the company shifted billing, collections and accounts
receivable management services to a foreign country. The Dept. of Labor failed to specify
what country, but indicated that furloughs may have begun as early as Nov. 8, 2009.2237
Grifols starting constructing a 72,000-sq. ft. plasma research facility to test and process
human blood plasma, from which they will produce the initial components of products for
use in the treatment shock, trauma and burns, primary immune deficiency diseases, and
bleeding disorders such as hemophilia and Von Willebrand disease. Grifols will invest
about $76 million in the facility and bring 190 jobs to the city. The company expects local
residents to receive many of the jobs that will be created by the facility.2238
Hewlett Packard Co. furloughed employees engaged in consulting and application
development services “because the workers’ firm has shifted to a foreign country ...
services like or directly competitive with the services supplied by the workers” and
“contributed importantly to worker group separations in the Applications Services Division.”
The Dept. of Labor did not identify what country, but indicated that furloughs may have
begun as early as Sept. 15, 2009.2239
283
1,400
$23
NQF
#PB
#SB
}REL
NJR
N$R
NQF
#CL
}OSO
}REL
Texas > Dallas
12
N$R
NQF
#FP
#HC
#HQ
}CLO
}REL
Wisconsin >
Chippewa Falls
263
N$R
NQF
#AE
#CH
#DF
#EC
#MA
}CLO
}REL
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Manhattan
Beach
Utah > Logan
NJR
N$R
NQF
30
N$R
50
#GR
#RD
}CDO
Los Angeles
↔ Monrovia
Mexico >
Unknown
NJR
N$R
NQF
#SB
}OSO
}REL
Los Angeles
↔ Montebello
Canada >
Unknown
NJR
N$R
NQF
#FP
#MA
#SB
}OSO
}REL
Los Angeles
↔ Montebello
Los Angeles
↔ Pasadena
Mexico >
Unknown
Texas > Austin
NJR
N$R
NQF
400
N$R
173
Los Angeles
↔ Los
Angeles
Texas > San
Antonio
Los Angeles
↔ Los
Angeles
Foreign Nation >
Unknown
Los Angeles
↔ Los
Angeles
Los Angeles
↔ Los
Angeles
Indiana > New
Albany
}REL
}OSO
}REL
#BF
#HQ
#SB
}CLO
}REL
Medtronic Diabetes Division – The California-based unit in the Northridge section of Los
Angeles selected San Antonio for its new Diabetes Therapy Management and Education
Center. “[We] look forward to becoming an active member of the growing biomedical
community in South Texas,” said Chris O’Connell, president of the Diabetes business and
SVP at Medtronic. The company anticipates hiring nearly 1,400 people within the next five
years.2240 During a shift of 300 customer service jobs to San Antonio, an analysis said
Medtronic will “save 30 to 40 percent on all cost factors versus Los Angeles [and workers]
can live very comfortably very near the facility.”2241 Some jobs will remain in Northridge.
Nay Et Al, Inc./Baby Nay, The Big Citizen Division furloughed employees producing infant
and children’s clothing because the company began acquiring such clothing from a foreign
country. The Dept. of Labor failed to specify what country, but indicated that furloughs may
have begun as early as Oct. 9, 2009.2242
Red Mango – The frozen yogurt chain relocated its headquarters from the Sherman Oaks
section of Los Angeles to Dallas.2243
TTM Technologies, Inc. Work at a Los Angeles operation, which primarily produces
commercial printed circuit boards, will close and 263 full-time employees will be
furloughed. TTM will transfer Los Angeles manufacturing to other company sites in Utah
and Wisconsin.2244 (See a separate entry for the 2009 event in Hayward.)
TTM Technologies, Inc. See the company’s 2009 Chippewa Falls event for more
information.
WindStream Technologies, Inc. which develops products that integrate wind and solar
energy generation in a single unit, elected to begin R&D at The Purdue Research Center
in New Albany. Note: Later, it established a 50,000 sq. ft. production facility in North
Vernon – an example of how once a company establishes a “footprint” in a location it tends
to expand there.2245 It employs 30 people in Indiana.2246
Telscape Communications, Inc., which targets Hispanic American consumers for its
phone service, and also offers service in Mexico, furloughed employees in Monrovia
because the company shifted telemarketing services to Mexico. The Dept. of Labor didn’t
identify the community in Mexico, but it indicated that furloughs may have begun as early
as Feb. 16, 2009.2247
Bimbo Bakeries USA, Inc. furloughed employees and on-site leased workers in its
Financial Shared Services Office and moved the work to affiliated facilities in Canada and
Mexico. The Dept. of Labor didn’t identify the communities in those countries, nor did it
provide a figure for the number of jobs lost, but it indicated that furloughs may have begun
as early as Jan. 28, 2009.2248
Bimbo Bakeries USA, Inc. See the 2009 entry or this company for more information
about this event.
OneWest Bank N.A. – The bank unveiled a new 173,000 sq. ft. headquarters for its home
loan servicing business in Domain Gateway, a planned community. 2249 It appears that the
company had about 400 jobs in Austin from expanding the previous year. 2250 Although
there were 800 jobs by 2009, it may be that only 400 are new; hence, the “jobs created”
statistic for this report will be 400.
284
Los Angeles
↔ Rancho
Dominguez
Mexico >
Unknown
NJR
N$R
NQF
#AU
#MA
}OSO
}REL
Los Angeles
↔ Redondo
Beach
Argentina >
Unknown
NJR
N$R
NQF
#SO
}OSO
}REL
Los Angeles
↔ Santa
Clarita
South Dakota >
Eureka
50
N$R
NQF
#SB
#SO
}CDO
Los Angeles
↔ Santa
Clarita
Los Angeles
↔ Santa
Clarita
Los Angeles
↔ Santa
Clarita
Los Angeles
↔ Santa
Monica
South Dakota >
Watertown
NJR
N$R
NQF
}CDO
Pertronix, Inc. furloughed employees engaged in the production of aftermarket
automobile exhaust systems because the company shifted the work to Mexico. The Dept.
of Labor failed to specify which community within that country, but indicated that furloughs
may have begun as early as June 25, 2009.2251
Efficient Technology, Inc., furloughed employees because the company shifted work on
forms automation software to Argentina. The Dept. of Labor failed to specify which
community within that country, but indicated that furloughs may have begun as early as
June 9, 2009.2252
LinkIt Software Corp. opened additional call centers in Eureka, Watertown, Roslyn and
Britton, all in South Dakota, which follows a 2005 expansion to Milbank, S.D. 2253 CEO
Wayne McFarland said the company was attracted to the smaller towns because