PHOENIX — Arizona has been found to be one of the top destinations in the nation for businesses relocating from California, according to the Phoenix Business Journal.
According to a recent study from Spectrum Location Solutions, Arizona was one of the top destinations for relocating California businesses over the last seven years. Texas, Nevada, Colorado and Washington joined Arizona in the top five states.
As a result of the businesses relocating from California, more than $68 billion in capital has been diverted to other states.
Site selection consultant Joseph Vranich said the more than 1,500 disinvestment actions have been done in an attempt to put pressure on the state government to lower operating costs.
“Companies moving to other states save 25 percent to 35 percent of operating costs compared to California costs,” Vranich said.
Los Angeles County lost the most companies, followed by Orange, Santa Clara, San Francisco and San Diego counties, according to the report.
A number of foreign countries also gained from California’s losses. The report found that Mexico, India and China gained the most amount of lost jobs.
“As California’s business climate worsens, chances are that more companies will seek places that are friendlier to business interests,” Vranich said.
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