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View Full Version : The ripple effect of Davis and his clones



Havasu_Dreamin
09-11-2003, 06:58 AM
Ontario company plans Utah move
Business climate blamed
By JASON NEWELL, STAFF WRITER
Nearly 34 years after founding a plastic bottle manufacturing company with his father in Ontario, Kjeld Hestehave says he has no choice but to pack up and take his 100-employee operation elsewhere.
Blasting inept California lawmakers for creating a hostile business climate, the president of Bomatic Inc. will join an increasing number of small business owners to leave the state or risk going under.
"Basically, California is running us out of the state," he said, rattling off a list of legislative missteps that have hurt businesses across the state.
Escalating energy and workers' compensation costs during the last three years will force Bomatic -- one of the oldest local manufacturers of shampoo, water and food bottles -- to move at least one of its two manufacturing plants to St. George, Utah, next year.
After the state's energy crisis two years ago, Bomatic's monthly energy bills skyrocketed from $30,000 to $110,000. Workers' compensation, once $87,000 per year, now costs the company about $340,000 annually, with signals of another increase in sight.
In Utah, the electricity bill will be a little more than $15,000 a month -- about 15 percent of what the company now pays. Workers' compensation will drop to $30,000 a year.
With the move, the company becomes among the first of what some California economists fear may turn into a widespread trend of businesses opting for lower operating costs in other states.
"We're finding there is just incredible pressure on businesses on the cost side," said Jack Kyser, chief economist with the Los Angeles County Economic Development Corp.
California businesses are not only dealing with the higher costs of energy and workers' compensation but also face a gloomy horizon of mandated health care, paid family leave, higher vehicle licensing fees and increased contributions to the Unemployment Insurance Fund, he said.
To this point, the situation has created a slow trickle of businesses fleeing the state.
"We're nervous that without some corrective action from Sacramento, the trickle could turn into a flood," Kyser said.
Bomatic is the first intact company to leave Ontario for a different state, although another went bankrupt, then re-formed and moved to Arkansas, said Mary Jane Olhasso, the city's economic development director.
Companies are choosing to stay in the city because of the costs and hassles of leaving and because of Ontario's competitive rent prices, she said.But the state's business climate has made it more difficult to attract new companies to the area, she said.
For Hestehave, the move means he will no longer have to struggle just to break even. Were it not for anti-business legislation, he said, the company would have made hundreds of thousands of dollars each of the last few years.
Editorial: This is what the current administration has done to the small businesses in this state. Without a change in the way of thinking and how business is done in Sacramento this will only get worse! And BustYOURTAXESmante is nothing more than a Davis clone!
[ September 11, 2003, 07:59 AM: Message edited by: Havasu_Dreamin ]

MagicMtnDan
09-11-2003, 07:06 AM
Unfortunately that could be just one story of many more.
What's going to happen if Bustamante gets elected? He and the other lefties in Sacramento will take this election win as a signal to go forward with their socialist agendas. Catering to contributors (including the Indian tribes who gave him millions) and other special interest groups means we're further down the road to bankruptcy.
This state is doomed if Bustamante wins. What are you going to do if he does win? Me? I'd like to move out of the state but we just bought our house a year ago. I have a bad feeling about this and think we'll be wishing we could leave...
Vote for Arnold - he's our ONLY chance (even though McClintock is the best candidate we need to vote for the one that can win).

Dave C
09-11-2003, 08:00 AM
I hear all my clients complain about this more and more everyday. Its too bad it has come to this.

Irishluck
09-11-2003, 08:06 AM
I hear you on this one, my girlfriend and I plan on getting married once she is out of school. I work in real estate she will be a teacher. I have told her many times not to plan on working in this state as I can't see if Bustamante is elected that he will be any good. Many real estate builders I have talked to say that they plan on focusing on other areas outside of California (do to the cost of doing business here). If this dumbass is elected you will see a mass migration out of California, businesses and people will be gone, scarry but very realistic.

058
09-11-2003, 08:47 AM
Businesses have been leaving Calif. for years because of high taxes, poor bus. climate and workers comp and the really sad part of this mass exodius is the lawmakers say "good riddence, we don't want you here anyway" It will get worse before it gets better. I have such a fatalist and negative additude now I ALMOST wish Davis dodges this bullet or Bustamonte makes it just to see how much further they can ruin this state. Shitty additude, Huh? yuk

Irishluck
09-11-2003, 08:51 AM
Soon it will be it's own country, perhaps Alto California. frown

MagicMtnDan
09-11-2003, 09:56 AM
058:
Businesses have been leaving Calif. for years because of high taxes, poor bus. climate and workers comp and the really sad part of this mass exodius is the lawmakers say "good riddence, we don't want you here anyway" It will get worse before it gets better. I have such a fatalist and negative additude now I ALMOST wish Davis dodges this bullet or Bustamonte makes it just to see how much further they can ruin this state. Shitty additude, Huh? yuk I'm in the same boat - it's so bad now you almost want to watch this train wreck.

Boozer
09-11-2003, 10:32 AM
Jump on the band wagon before the stampede occurs! Get out while you still can!
This could present a great oppurtunity for you all. If you want to invest in an outside California business then I need investors! Give me your money!!!