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Are Businesses Leaving California?

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Joe Van Tassel 02 Dec 2020

2020 saw what some might call an exodus of businesses, across industries, leaving California and relocating away from the West Coast. This is not a new trend; California businesses are leaving the state in droves. In just 2018 and 2019—economic boom years—765 commercial facilities left California. However, the coronavirus pandemic has exacerbated this trend, causing many individuals and companies to rethink how and where they live and work. 

Are people moving out of California?

In 2019 650,000 people left California and according to a survey conducted in October, this trend will continue into 2021; 56% of Californians reported having considered leaving the state. Not just individuals, but businesses as well are migrating out of California. Housing costs, high taxes, traffic, cost of living, and cost of running a business, are all reasons people and companies are looking to relocate outside of California. The West Coast is expensive, and at a time when the coronavirus pandemic has many, if not most, business being conducted virtually, relocating is increasingly feasible. 

Many well-known business leaders across industries are moving from California elsewhere in the United States. Keith Rabois is a former executive at companies like Square and Paypal. He announced his relocation from California to Florida this November. Paypal’s Peter Thiel and Palantir’s Alex Karp have also left the state. These business leaders are not alone; a study by UC Berkeley found that roughly half of the state’s voters have considered leaving California. 

Yes! Businesses are moving out of California

Not just people, but businesses too are moving out of California and the West Coast. Earlier this year, Palantir co-founder and 8VC owner Joe Lonsdale relocated his family from the Bay Area to Austin, Texas. Now he’s doing the same with his venture firm 8VC, and Palantir, which Lonsdale co-founded 17 years ago in Palo Alto, announced in August that it was moving to Denver. The exodus is not limited to the Silicon Valley and San Francisco and in fact state-wide this migration has picked up steam during the eight months of the coronavirus pandemic. 

In April, Quality Quartz Engineering, Inc. consolidated its manufacturing operations into its main manufacturing facility located in Dayton, OH. As a result, they closed their branch facility, which was located in Newark, CA. The venture firm 8VC is moving headquarters out of San Francisco to Austin, TX. 

In fact, this trend is not limited to California but can also be seen across the West Coast. Boeing announced in late September that it would shut down production of the 787 Dreamliner in Everett, Washington by mid-2021 and move production to South Carolina.

Our Role as Nationwide Technical Recruiters and Headhunters at Integress 

Integress is a nationwide boutique technical search firm specializing in identifying talent in the manufacturing, industrial automation, distribution/ materials handling, and IT fields. While Integress can help with placements throughout the US, we also have a thorough understanding of the business needs of California and West Coast companies across industries. Whether your company operates in manufacturing, software development, technology, or any other technical form, our expertise is in placing people who will fit in seamlessly in your company’s unique culture. We offer a white glove service that is both thorough and efficient. We recruit in all aspects of manufacturing. We have experience working with integrators, distributors, and manufacturers who are looking for engineers to automate their systems, as well as with companies that manage large distribution centers and third-party logistics companies. To find out about our permanent placement and contract/temp search options, and to learn more about how we can work with the individual needs of your company, no matter where you are located, contact us now here

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Summary
Are Businesses Leaving California?
Article Name
Are Businesses Leaving California?
Description
Several businesses are leaving California to set up manufacturing facilities in other states within the USA. This is all part of cost-cutting and restructuring efforts due to COVID-19. Our team of recruiters and headhunters are able to provide engineering, technical, and IT talent nationwide. Do you have a job to fill?
Author
Joe Van Tassel
Publisher Name
Integress, Inc
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