California’s Competitiveness

Tennessee Governor Bill Lee announced that California-headquartered electronics repair company iFixit will establish an East Coast hub in Chattanooga, Tennessee, The Associated Press reported July 20. iFixit, headquartered in San Luis Obispo, is expected to invest $24.2 million and create more than 200 jobs in Tennessee over the next five years. The Chattanooga location “will house its distribution and back-office operations,” the AP reported. In other California competitiveness news: Food Producer Shuts California Center, Keeps Three Open in Other States.…

The Farmer John plant, which is the largest employer in the city of Vernon, is set to close next year, KABC News reported June 10. According to the plant’s parent company, Smithfield Foods Inc., the decision was made due to the “escalating cost of doing business in California.” The company also said it will decrease its sow herd in Utah and is looking at options to exit its farms in Arizona and California. The company said it will provide transition…

Kaiser Aluminum, a 76-year-old manufacturing company that had been based in Orange County, this month moved its headquarters and 70 executives to suburban Nashville, Tennessee, the Orange County Business Journal reported April 25. As part of the relocation, the company is investing $3 million and creating 80 jobs in Williamson County, Tennessee, the newspaper reported. Plans for the move were announced last summer. Keith Harvey, the company’s chief executive officer, said at the time: “Williamson County provides the benefit of…

Assembly Member Tim Grayson introduced legislation February 10 to eliminate the sales tax on most purchases of manufacturing equipment – the “California Manufacturing Attraction and Development Exemption,” or “CA MADE.” The legislation, AB 1951, is cosponsored by CalTax and the California Manufacturers & Technology Association (CMTA). “This legislation will help keep manufacturing jobs in California, and will have a ripple effect on other industries throughout the state,” CalTax President Robert Gutierrez said. “A more competitive tax structure helps everyone in…

Hyperion, a hydrogen-electric tech and transportation company, announced this week that it is relocating its headquarters from Southern California to Columbus, Ohio. “The tech company said the new facility will create 700 jobs,” Columbus television station WCMH reported February 1. The move is “part of a $297 million investment to accelerate production of its next-generation hydrogen fuel cells that are set to power a new line of stationary and mobile energy products,” H2 View reported February 2. “The company ……

West Sacramento-based Raley’s this week disclosed plans to close two of its Nob Hill Foods locations in the Bay Area, saying the stores’ sales couldn’t support rising rents. The Sacramento Business Journal reported that the closures of stores in Walnut Creek and San Ramon, expected to occur between March 15 and March 28, will impact a total of 94 workers. The company said the impacted employees are union employees, and all will be offered a role in the company in…

Two California-based companies announced this week that they are moving operations to states with lower costs. Review Wave, a tech company in Irvine, announced that it is moving to McKinney, Texas, later this month. The company produces automated software that allows patients to give reviews of their experiences with doctors and other health care providers, and to receive appointment reminders, online scheduling, and other services. Review Wave’s agreement with the McKinney Economic Development Corporation includes plans to create 73 tech…

The Specialty Food Association, which hosts an annual winter food show, announced this week that it is moving its three-day 2022 event from its traditional home at the Moscone Center in San Francisco to the Las Vegas Convention Center. Bill Lynch, president of the association, said: “We are excited to be partnering with a premier trade show destination like Las Vegas, which has been the leader in the return of in-person events.” The San Francisco Business Times reported September 22…

Two California-based companies announced this week that they are moving some or all of their operations to lower-cost states: real estate referral company Homelight is moving its headquarters from San Francisco to Scottsdale, Arizona, and knife manufacturer Cangshan Cutlery is leaving Chino for a new facility in Leander, Texas. The San Francisco Business Times reported August 24 that Scottsdale is now Homelight’s largest employment center, and the company also is expanding in Colorado. Homelight Chief Executive Officer Drew Uher said…

Johnson & Johnson is permanently closing a South San Francisco facility that houses several divisions and is relocating 73 jobs out of California, the San Francisco Business Times reported March 30. “The New Jersey consumer and pharmaceutical giant said it will offer relocation to all affected employees to Titusville, New Jersey, and those who do not opt to relocate will be laid off,” the Business Times stated. “The largest group of job relocations will occur at Actelion Pharmaceuticals US Inc.,…