Leaving California

Why are so many companies leaving California?

Within recent years, numerous manufacturers here in the San Fernando Valley have relocated or announced plans to relocate out of California. But why? Companies like Nestle, Heinz, OPI, Danmer Custom Shutters, Excelline Food Group, and Natural Balance Pet Foods partly claim the need to move operations to more enhanced facilities. While Clover Imaging Group in Van Nuys, one of the last manufacturers of toner cartridges in the United States have been a little more honest about the cut in shifts at their Valley plant. Last week it was reported they have shifted work to Mexicali, and that it is a step to remain competitive. Could it be that many other companies are not willing to be totally honest about their moving out of California?

by Suzanne Burchett May 3, 2016

            It is well known that the minimum wage will be increasing and lesser known about the passage and approval in October of this past year, by Gov. Brown of Senate Bill 358. Senate Bill 358 amends California’s Labor Code. It will increase labor costs, difficulties in hiring, and employee retention. It also increases the potential for litigation regarding pay.  Are many big companies being advised to move operations out of California to avoid the pitfalls that loom ahead? We may never know, except that we do know that most of the companies named above have moved some or all of the manufacturing that was here in the San Fernando Valley to “Right to Work” states. Additionally, we know that the Governor of Florida has begun an ad campaign to lure businesses from California to Florida with an emphasis on California’s minimum wage increase.

California for more than the past hundred years was know as a land of opportunity.  It is not that a complete Laissez-faire attitude is necessary to spur growth but, has the desires of the citizens of California to help aid others come at the cost of a socialist economy and the possible decline of California as a land of opportunity?

Company                                SFV Location                          Moved to

Nestle- Hot Pockets               Chatsworth                             Mt. Sterling, Kentucky

Heinz- Portion Packs              Chatsworth                             Jacksonville, Florida

OPI- Nail Polish                       North Hollywood                     Sanford, North Carolina

Danmer Custom Shutters       Van Nuys                                Gainesville, Georgia

Excelline Food Group             Chatsworth                             Albuquerque, New Mexico

Natural Balance Pet Foods     Pacoima                                  Lyons, Georgia