Don’t say you are Surprised by Companies Leaving California
Intel announced that it will be investing billions to upgrade factories in Arizona, in addition to building a new factory in Oregon. The plan is projected to create between 6,000 and 8,000 construction jobs and 800 to 1,000 high-tech factory jobs, a huge loss for California.
“The Intel investment in Oregon, when you add it to Arizona, is $8 billion, with a “B,”said Vranich.
Why did Intel move its factories from Silicon Valley? Labor costs run 60 to 70 percent of the costs in California. Energy costs run at 40 and maybe as low as 10 percent of California energy costs as California adopts new regulations.
This isn’t a tough decision. A Chief Financial Officer would fire a division chief that wanted to keep production in California and incur these higher labor and energy costs. The real question is this. Which would you do first? Would you check the manager for drug use before you fired him? Would you ask him why he kept production in the US as opposed to Canada?
California isn’t alone. Here are some other job losses near you. A state is either willing to compete.. or will hire a public relations firm to explain why it is being left behind.
Rob. I’ve a head cold and bad news does not help my attitude.