Texas, Nevada and Arizona are in the top three slots, following by Colorado, Washington, Oregon and North Carolina.
Report author Joseph Vranich, a site selection consultant, confirmed that more than $68 billion in capital has been diverted to other states as a result of the more than 1,500 disinvestment actions – the act of a company pulling up stakes and relocating.
“Companies moving to other states save 25 percent to 35 percent of operating costs compared to California costs,” Vranich said.
The report said that Los Angeles County hemorrhaged the most companies, followed by Orange (Anaheim and Irvine), Santa Clara (Silicon Valley), San Francisco and San Diego counties. Using collected data, Vranich said that using accepted statistical models, it can be projected that as many as 9,000 companies closed up shop moving elsewhere, and were not publicly reported.
The report also said that a number of foreign nations gained from California losses, with the most jobs going to Mexico, India and China.
“As California’s business climate worsens, chances are that more companies will seek places that are friendlier to business interests,” Vranich said.
By: Eric Jay Toll