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Richard Rider

MAR 15 More scarce CA manufacturing jobs moving to TX — and WHY they are moving

It’s a story too common to even make the news in California anymore:  Pegasus Foods, a Los Angeles firm, announced it is building a new food plant in Texas, employing 325 people.  It’s unclear if the company’s CA HQ will also move — but it seems likely, based on the CEO’s positive comments:

“I can’t tell you how excited I am to finally be here in Texas,” said Jim Zaferis, principal of the Los Angeles-based company that supplies food for restaurants such as Chili’s, Panda Express and Cinnabon.

Zaferis said he was inviting many of his California-based employees to relocate with the company, saying the quality of life here is much better.

“It’s the kind of place where you really want to raise a family,” he said.

For a company like Pegasus, though, the main attraction is Texas’ business-friendly climate, Texas Governor Greg Abbott said. Texas has low taxes, is a right-to-work state and protects companies from large settlements from litigation, he said.

“It all makes Texas a natural magnet for businesses to come here and grow here,” Abbott said.

Lefties love to dwell on the corporate subsidies that Texas offers for companies that move to the Lone Star state — a policy I do not support, BTW. But while government subsidies might cause a California corporation to pick Texas over some other state (it’s one of many factors management considers), such subsidies are not NEARLY enough to cause a corporation to LEAVE California.

Such a move is costly and disruptive. And no California CEO chooses to move to Texas for the superior weather!

The motivation to leave California is domestically grown — a bat-shit crazy Democrat regime in Sacramento (and in most local CA cities) that view business as government ATM machines.

CA litigation lawyers know that the Golden State is their happy hunting ground for enriching lawsuits, which is why the American Tort Reform Foundation in 2015 again ranked CA the “worst state judicial hellhole” in U.S. – the most anti-business.  The U.S. Chamber of Commerce ranks CA a bit better – “only” the 4th worst state in 2015 (unfortunately, sliding from 7th worst in 2008).