24/7 Newsfeed

Put Reason 24/7 on Your Site

RSS

Follow Reason 24/7 on Twitter and via RSS

Companies Exiting California Find Their Value Increasing

The re-election of President Barack Obama is expected to lead to tightening of already stringent environmental regulations on automotive businesses in California. Coupled with high state taxes, this will guarantee a continued exodus of California manufacturers to neighboring states like Idaho, said Bill Pollock, CEO of Phenix Industries.

Pollock, whose small family owned company manufactures auto parts for race cars, moved the company’s headquarters from Riverside, California to Eagle, Idaho last October, after years of butting heads with local regulators. He is now raising money through a private investor for a 200-acre industrial facility in Idaho that, upon its expected completion in 18 to 24 months, will provide business space to between 30 and 50 automotive manufacturers. Some of these manufacturers will also be involved with machining parts used in aviation and firearms building, said Pollock.

He projected that small to mid-sized companies that are fortunate enough to operate light, easy-to-transport equipment, and considering a sale in the near future will see their values go up considerably once they relocate, as they will no longer be burdened by punishing state taxes and environmental laws.

Source: Forbes. Read full article. (link)

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.

advertisement