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Most businesses go out California They are heading to lower-cost western states, according to research Claremont McKenna College’s Rose Institute and Cosmont Companies
Claremont, California, December 19, 2022 /PRNewswire/ – The 2022 Cosmont.-The cost of conducting a Rose Institute business survey In found that the cost of doing business California It is higher than most regions in the western world. united states. In the year The annual study published since 2003 shows that 64 percent of businesses are out of business California In the last 30 years they have moved to lower cost states. Nevada, Arizona, TexasAnd Oregon.
Researchers at the Rose Institute of State and Local Government Claremont McKenna CollegeIn collaboration with The next, the secondThe Kosmont Companies, an economic development consulting firm, ranked 158 cities–mostly in Southern California–the most expensive cities to do business.
“Doing business in Southern California It has many advantages, but the cost makes it difficult to get out Ken Miller, director of the Rose Institute of State and Local Government and author of the study report. “Increasing home values, office rents, labor costs, and tough new state and local laws were likely variables this year as these costs increased.”
Vegas, Nevada B is the highest destination California Businesses from the state. Between 1990 and 2019, 2,832 California Businesses moved to the desert city, followed by New York City 1,455 businesses moved there. They are other leading destinations. Reno, Nevada In 1,088 businesses, Phoenix, Arizona In 883 businesses, Portland, Oregon in 868 businesses and Austin, Texas In 816.
According to the study Southern Californiathe cost of doing business is more expensive in Los Angeles County instead of inside orange, San BernardinoOr Riverside Regions. This difference may be due in part to market forces, such as office rents, as well as domestic policies, such as sales taxes. Los Angeles city voters recently approved Measure ULA, which would add a major new transfer tax on property sales. 5 million dollars It shows how businesses — especially those buying or selling property in the county’s largest city — shoulder the extra costs to fund homelessness programs.
At the regional level, California It continues to spend more on business than neighboring states. example, California The statewide minimum wage will increase $15.50 per hour January 1, 2023More than double the hourly minimum wage Texas, Idahoand Utah.
A few little California They found cities on the list of the most expensive cities to do business, including the cities of the Inland Empire Yucapa, Yucca ValleyAnd Hesperia. However, cities in Arizona, Idaho, New Mexico, Nevada, OregonAnd Texas A list of inexpensive cities. Three big ones Texas Cities and business centers–Fort Worth, Irving and San Antonio–all ranked in the survey’s top ten most expensive cities.
“California “It’s an attractive place for business, even if businesses migrate to other western states,” he said. Larry CosmontChairman and CEO of Cosmont Companies. “Businesses that want to stay California They should ask themselves if they have a strategic or practical reason for entering California; If this is not the case, the state’s price hike will pose a huge challenge to run a profitable enterprise.
The Kosmont-Rose Institute’s cost of doing business survey is based on seven variables: sales tax, utility tax, business license fee, average office rent, FBI crime index, average home price and minimum wage. The Rose Institute and Cosmopolitan last published a survey using 2018 data in 2019. The full survey report, a list of the most and most expensive cities to do business and the full rankings of the 158 cities can be found at roseinstitute.org/costofdoingbusiness.
Contact: Kenneth Miller, [email protected]909-607-7575
Source Claremont McKenna College
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