California business departures rising, study says

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But one economist called the study’s assertions the “same old nonsense” he’s been hearing from business for years.

Nevada, Texas, Arizona, Oregon, Washington and Florida ranked as the top destinations for relocating California establishments, the data shows.released last September. The Stanford University institution reported that at least 352 business moved their headquarters out of California from 2018 through 2021, including 11 Fortune 1,000 companies.“Headquarter relocations are accelerating substantially, with no sign of reversing course,” the Hoover Institution report said.

“Our manufacturing growth is not happening in California,” CEO Mark Louchheim said. “It’s a difficult place to do business.” Los Angeles planning officials “think their job is to say no,” Louchheim said. “There are real barriers in terms of going through the planning process.” Atlanta, for example, now competes with Hollywood for film productions. Austin is stealing info tech firms from Silicon Valley. And North Carolina’s Research Triangle Park has become more attractive to biomedical research firms.California needs a strategy that supports local industry clusters, such as entertainment in Los Angeles, logistics in the Inland Empire or biomedical research in San Diego, the study said.

 

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