Study Confirms Unprecedented Business Exodus from California
A recent study released by Spectrum Location Solutions, a firm that specializes in providing location advisory services, shows business flight out of California has accelerated. The findings indicate that in 2016, the year for which the latest data is available, about 1,800 businesses moved out or “disinvested” from the state. According to the firm’s principal, this is the highest one-year figure since 2008. The study further estimates that during this nine-year period approximately $76.7 billion in capital funds were diverted out of California along with 275,000 jobs and companies acquired at least 133 million square feet elsewhere.
Surprisingly, the study concludes that the high tax rate, while still a consideration, is no longer the primary motive for leaving the state entirely or expanded major operations elsewhere. California’s legal environment is now the main reason many businesses are divesting. Lastly, the report also cites high utility and labor costs, punitive regulations, and a lack of housing affordability for employees as other factors hindering business in this state.
For more information, please see https://spectrumlocationsolutions.com/2018/12/13/study-finds-more-companies-leaving-california-urges-more-to-exit-the-state/.