This week the San Diego media is focused on ONE story — the dozen or more brush fires that have popped up around the county, thanks to EXTREMELY dry conditions, high winds (Santa Anna) and likely arson.
If this fire story were not happening, perhaps we’d all know more about ANOTHER tragedy that hit San Diego this week: Defense contractor Pratt & Whitney is abandoning its San Diego operation — fleeing for other states. This closure will cost our city 530 high paying jobs.
While the company had the option to go to the state of California for economic subsidies, it didn’t bother. FAR better “subsidies” are available in other states — the “subsidy” of a better business climate, including lower taxes.
At least it’s not the Great (hated) State of Texas that the company is fleeing for. Well, not for sure.
They are also considering relocating the San Diego operations to Florida and/or Georgia — the company has existing facilities in all three of these more business-friendly states. Indeed, they are also planning to move part of the San Diego operation to Canada!
Governor Brown’s office has no comment on this news. But this departure constitutes more of economist Joseph Schumpeter’s “creative destruction” — an economic axiom that Brown professed to so admire in his recent news conference — explaining away the announced departure of Toyota’s national headquarters from California.
http://en.wikipedia.org/wiki/Creative_destruction
And Brown is right — creative destruction IS good for the overall economy — but creatively driving businesses out of California is NOT good for the Golden State economy.
I’ve said it before but it bears repeating — California IS the engine of prosperity — for the other 49 states.
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http://www.utsandiego.com/news/2014/may/15/pratt-whitney-relocation-texas-florida-georgia/
Defense contractor, 530 jobs leaving San Diego
Defense contractor Pratt & Whitney AeroPower is moving out of San Diego.
The defense contractor announced Thursday that over the next two years it will close its facility on Ruffin Road, which employs 530 people. The facility is the base for the company’s division that manufactures airline auxiliary power units.
“This decision, while a difficult one to make, is necessary to maintain our competitiveness in the market, further leverage Pratt & Whitney’s network and best position the company for the future,” Spokesman Ray Hernandez said in a statement. “This decision is by no means a reflection on the performance of Pratt & Whitney AeroPower employees. The company realizes the impact this realignment will have on employees and we are committed to supporting those affected during this transition period.”
Pratt & Whitney AeroPower’s military APU business will transition to Pratt & Whitney’s Military Engines organization. Its facilities in Florida, Georgia and Texas are being considered for the military operation’s relocation. The commercial side will go to Pratt & Whitney Canada, with much of the work being performed at its Rzeszow, Poland facility.
Hernandez said Pratt & Whitney did not apply for the California Competes tax credit, which are new state incentives to try to keep companies from relocating. A spokesman for the California Governor’s Office of Business and Economic Development, Go-Biz, declined to comment on Pratt & Whitney’s announcement.
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To see the full story, go to the link above.