Jan Norman, a small-business columnist for the Orange County Register, reports that two companies recently relocated from Orange County to Colorado,
citing the cost of living, cost of doing business and quality of life.
The Kyjen Company, maker of toys and other products for dogs, moved
from Huntington Beach to Centennial, Colorado, while Billet Racing Products LLC, which makes aluminum accessories for
dirt bikes, moved from Laguna Niguel to Colorado Springs. Both moves were in
September.
Ms. Norman
writes: "Owners of both companies grew up in Orange County and still have
lots of relatives here. I mentioned BRP in a post about why California
companies have been moving to Colorado Springs. Owner Jim Rios called me back
and said his reasons are simple: Colorado has lower cost of living, lower cost
of doing business and better quality of life. Three employees moved with BRP to
Colorado. The company eliminated five jobs here and added four jobs in Colorado
Springs."
Kyjen founder Kyle
Hansen said: "I realized we were paying more in taxes in California. I
would rather invest that money to hire more people."
Kyjen also changed
third-party logistics companies from one in California to one in Reno, Nevada.
The company had nine employees in 2009, and now has 21.
Mr. Hansen also
said the quality of life is better in Colorado. He told Ms. Norman: "It's
not that we hated Orange County … We love it. But here we're not spending our
time sitting on a freeway. There are trails right by our office."
These companies
are just two of many that have moved their investments out of Cailfornia. Joseph Vranich, who
dubs himself "The Business Relocation Coach," maintains an online list of companies that have
left California in recent years. The list, which Mr. Vranich says is just the tip of the iceberg (because it is based
primarily on media reports and tips from readers), currently has 129 entries. "It's no mystery what causes companies to
leave California – high taxes, undue regulation, workers' comp costs, a legal
environment stacked against businesses, and lengthy and costly construction
permitting requirements," Mr. Vranich says.
(Source: Orange County Register
online, May 26.)
Cal-TaxReports, June 1, 2010
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