As the 2000s proceeded, firms got more and more disgruntled. In a 2004 survey of California executives by the consulting firm Bain & Company, half of those interviewed said that they planned to halt job growth within the state, while 40 percent said that they planned to send jobs elsewhere, with Texas the most frequently mentioned domestic destination. Flash-forward to the present, and you’ll find bosses’ views grimmer still. In a 2011 poll by various California business groups, 82 percent of executives and owners said that if they weren’t already in the state, they wouldn’t consider starting up there, and 64 percent said that the main reason they stayed in California was that it was tough to relocate their particular kind of business. Nor do executives think that things will get better. For several years in a row, California has ranked dead last in Chief Executive’s poll about states’ business environments.
But numbers from the National Establishment Time Series database tell a more disturbing story. During the period from 1994 through 2008, the latest year for which data are available, California ranked 47th among the states in net jobs created through business relocation, losing 124,000 more jobs to other places than it gained from other places. Some argue that this exodus is inconsequential; a 2010 study by the California Public Policy Institute found that jobs leaving the state through relocations amounted to only a small percentage of California’s total job loss. But the numbers show that California isn’t creating jobs in other ways, either. It generated just 285,000 more jobs from new businesses than it lost to business failures, placing 29th in the country (first-place Florida gained 2.4 million net jobs). What’s particularly disturbing, as Wendell Cox demonstrates in “The Long Stall,” is that nearly none of those net jobs were created between 2000 and 2008, meaning that start-ups haven’t contributed to California employment for more than a decade.
The evidence also shows that California is losing the battle for new investment. From 2007 through 2010, according to a study by the California Manufacturers and Technology Association, 10,763 industrial facilities were built or expanded across the country—but only 176 of those were in California. That amounted to 4.8 facilities per 1 million people, the lowest rate of any state; the national average was more than 40. The same study found that of the nation’s $350 billion in investments in manufacturing facilities, just $8.7 billion was spent in California, a per-capita rate of investment less than one-fifth the national average.
Engineering is the art of making what you want from what you can get at a profit.
Smaller firms have exhibited the same pattern of expanding outside the state. In fact, Silicon Valley lost one-quarter of its computer, microchip, and communications-equipment manufacturing jobs from 2001 to 2008, say Valley entrepreneurs (see “The Silicon Lining,” Spring 2010). “Every state in America is focusing on California,” Dave White, an economic-development official who tries to lure companies to Colorado Springs, told the Orange County Register last year. “It’s low hanging fruit.”
California’s suffocating regulations have a lot to do with these lousy indicators, says Andrew Puzder, the chief executive of CKE Restaurants, which operates more than 3,000 Hardee’s, Carl’s Jr., and other eateries. In a recent op-ed, Puzder called his company’s home state “the most business-unfriendly state we operate in. While we kept our corporate headquarters here, our company’s real job-creating engine has already moved.” Indeed, CKE has stopped opening restaurants in California, where the process can take up to two years because of regulations, and plans to open 300 in Texas, where a new place can debut in just six weeks.
Engineering is the art of making what you want from what you can get at a profit.
What should be noted is that from 2001-2010, California was Republican run. Certainly I saw tech firms lay off or freeze hiring while being here since 2007, but every one of those layoffs and hiring freezes disappeared 3 months later. All my friends who were out of work suddenly found themselves right back in work. I can also attest that EA, a Texas based game tech firm has been pushing to expand into California further. THey recently acquired KilickNation out of Sacramento and has no intentions of moving them. I've also witnessed Zynga expand its operation further into SF, and mind you these aren't small tech firms at all. Zynga may be one of the most profitable in SV.
What I'll concede is that I've heard grumblings about online taxes and companies threatening to leave. While I don't agree with this tax, I do know these companies have threatened this before and have been inert in their action. I just don't see large firms moving away from the "Fun in the Sun" lifestyle they've made for themselves. It would take a significant tax hike for them to decide to move on at this point and last time I checked, the people in Sacramento are still stagnant as ever. Personally I'd keep the business related tax rates where they are or lower them slightly and impose a minimal property tax (there isn't one right now).
ScottL wrote:What should be noted is that from 2001-2010, California was Republican run. Certainly I saw tech firms lay off or freeze hiring while being here since 2007, but every one of those layoffs and hiring freezes disappeared 3 months later. All my friends who were out of work suddenly found themselves right back in work. I can also attest that EA, a Texas based game tech firm has been pushing to expand into California further. THey recently acquired KilickNation out of Sacramento and has no intentions of moving them. I've also witnessed Zynga expand its operation further into SF, and mind you these aren't small tech firms at all. Zynga may be one of the most profitable in SV.
What I'll concede is that I've heard grumblings about online taxes and companies threatening to leave. While I don't agree with this tax, I do know these companies have threatened this before and have been inert in their action. I just don't see large firms moving away from the "Fun in the Sun" lifestyle they've made for themselves. It would take a significant tax hike for them to decide to move on at this point and last time I checked, the people in Sacramento are still stagnant as ever. Personally I'd keep the business related tax rates where they are or lower them slightly and impose a minimal property tax (there isn't one right now).
A property tax is a tax on capital. I used to live in CA. I will never go back - to live. And you don't die all at once from strangulation. It is a slow painful death.
Engineering is the art of making what you want from what you can get at a profit.
I alwasy viewed property tax like a rent payment since you don't actually own the land you "own." It's the U.S.'s land, you paid for the right to use said land privately. California afforded this Ohioan a much better life, so I'm happy here. There isn't exactly much of a tech market in Ohio or the east coast for that matter unless you want to wander into NY and well the weather is terrible in the east and mid-west.
ScottL wrote:I alwasy viewed property tax like a rent payment since you don't actually own the land you "own." It's the U.S.'s land, you paid for the right to use said land privately. California afforded this Ohioan a much better life, so I'm happy here. There isn't exactly much of a tech market in Ohio or the east coast for that matter unless you want to wander into NY and well the weather is terrible in the east and mid-west.
So you are a serf. A slave to the government. And you like it. Good for you.
I never cared for it much. In that respect I'm quite in sympathy with The Who. And lived that life for a while.
The tech market in Rockford, Illinois is excellent. In fact it is very good where ever I am. The Internet. Which I sorta had a hand in designing as I was one of the original gang (flash mob actually) that made the computer revolution happen. Look up "Space-Time Productions" and you will find a guy who still loves some stuff I did nearly 30 years ago. A board I designed went into the world's first BBS. I worked with Randy and Ward to make it happen. They visited me and I was a guest at their houses while they were in the design phase.
If you are any good location no longer matters much. As telepresence becomes lower cost that will be true for more and more people. Actually telepresence and UPS/FedEx make it possible for me to work anywhere. Not to mention no extra charges for long distance. And then there are places like this where I have made some excellent connections with top engineers from around the world.
I like low tax locations. Which is why I'm thinking of leaving Illinois. Nevada is a possibility as is Colorado.
Engineering is the art of making what you want from what you can get at a profit.
MSimon wrote:The tech market in Rockford, Illinois is excellent. In fact it is very good where ever I am. The Internet. Which I sorta had a hand in designing as I was one of the original gang (flash mob actually) that made the computer revolution happen. Look up "Space-Time Productions" and you will find a guy who still loves some stuff I did nearly 30 years ago. A board I designed went into the world's first BBS. I worked with Randy and Ward to make it happen. They visited me and I was a guest at their houses while they were in the design phase.
If you are any good location no longer matters much. As telepresence becomes lower cost that will be true for more and more people. Actually telepresence and UPS/FedEx make it possible for me to work anywhere. Not to mention no extra charges for long distance. And then there are places like this where I have made some excellent connections with top engineers from around the world.
I like low tax locations. Which is why I'm thinking of leaving Illinois. Nevada is a possibility as is Colorado.
Tele-commuting has its place, but is not the norm nor the majority when it comes to development. I'd be willing to bet 95% of work done is still done in the office. I can't speak for tele-commuters though as I've only known 1 and it only lasted a year before he became an in-office staff again. Our organization is made up of teams of developers that consist of career staff and contractors. I'd say 75% are career, 25% are contracters.
As far as myself, I'm pretty young and new to the field. I graduate not but 5 years ago, so the requirement of being in-office was a necessity. Companies aren't really willing to hiring fresh graduates in tele-commuter positions. I have to go where the greatest likelihood of getting job is and I did.
Btw, I've never heard of Rockford, Illinois, is it north or south?
ScottL wrote:I alwasy viewed property tax like a rent payment since you don't actually own the land you "own." It's the U.S.'s land, you paid for the right to use said land privately.
So you are a serf. A slave to the government. And you like it. Good for you.
What MSimon said.
As for Ca being republican run, the state had a registered republican for governor, but a democrat dominated legislature that called the shots, browbeating the governator into submission before the end of his first term.
Btw, I've never heard of Rockford, Illinois, is it north or south?
We are in what is referred to as "Downstate". About 90 miles north west of Chicago. "Downstate" is anything outside Chicago.
I was telecommuting 15 years ago. To Knoxville, Tenn. One week (ten days) at my home shop and then 4 days in Knoxville. I was working on autotuning PID loops and some other stuff. Did that for 6 months.
My #3 son is an EE. Just graduated. He will start work in Jan. Had the job lined up before he graduated.
Engineering is the art of making what you want from what you can get at a profit.
He's lucky if he doesn't have to go in to an office straight out of college. I wish I were so lucky, but I am not. On the positive side I am as of Jan. going to be a "senior developer" within my first 6 months in this new position. I previously did network/server administration, but hit the glass ceiling and wanted out desperately.
I'm all for creative and/or hardwork driven methods for succeeding. I wouldn't want you to get me wrong on that, but I feel I've chosen the optimal path for myself. This is composed of renting property, no planned marriage or family currently, and have instead decided to focus on my own financial responsibility before making any further large decisions. Hell, I'm still trying to figure out these retirement plans, but as I said, I'm on my own optimal path to where I want to go.
There is no retirement plan worth a darn. The financial system is going down and most of the plans attached to it. A general collapse. Don't worry about retirement. Worry about making yourself valuable.
Go here and follow the links to find out why I think that:
MSimon wrote:There is no retirement plan worth a darn. The financial system is going down and most of the plans attached to it. A general collapse. Don't worry about retirement. Worry about making yourself valuable.
Go here and follow the links to find out why I think that:
I just sent the link to some of my family members who have worked in the Canadian banking system, it will be interesting to get their feedback. If the system is as exposed as suggested, then a large number of bankers and politicans have been telling egregious lies since 2008 as well as violating the law, in spirit if not deed.
MSimon wrote:There is no retirement plan worth a darn. The financial system is going down and most of the plans attached to it. A general collapse. Don't worry about retirement. Worry about making yourself valuable.
Go here and follow the links to find out why I think that:
I just sent the link to some of my family members who have worked in the Canadian banking system, it will be interesting to get their feedback. If the system is as exposed as suggested, then a large number of bankers and politicans have been telling egregious lies since 2008 as well as violating the law, in spirit if not deed.
Funny about bankers. My brother is a banker. The bank he works for just gave him the keys to the vault. I think he will be left holding the bag when they find out the vault is empty.
Engineering is the art of making what you want from what you can get at a profit.