Carls Junior / Hardees corporate HQ flees California for Tennessee.
Yes, we know that CKE’s official line is that the firm is relocating because it has less need for office space as it consolidates operations. But the company executives say this with a wink. Tax savings are a big factor, as is the stifling regulatory environment on the left coast, where businesses are treated like villains and rich people as cash dispensers for big government programs. It’s not a coincidence that CKE’s CEO Andy Puzder has been one of the leading critics of high taxes and onerous rules in Washington D.C. and Sacramento.
The next time some liberal hamster asks “what’s the matter with Kansas?”, one might respond “the usual. What’s the matter with California?”
The state legislative group ALEC finds in its latest “Rich States, Poor States” rating of the states on business climate that California ranks 44th of all the states in business competitiveness. California has lost roughly 9,000 companies over the last decade, with most of them moving to Texas, Florida, and Tennessee. Last year, in a major loss, Toyota moved its North American headquarters from the Golden State to North Texas.
And that’s just the headquarters – although with many small-to-medium companies, the HQ and the production/distribution/retail is all under one roof.
But with bigger companies?
Minnesota liberals love to hide behind the fact that the Twin Cities is home to a lot of Fortune 1000 companies. The part they omit (or don’t understand) is that the Headquarters – with its staffs of senior executives and high-level technocrats, with their taste for the lifestyle and ameniities and central location of major metro hubs like the Twin cities – is a small part of the organization.
Quick – when was the last time 3M or Ecolab built a manufacturing or distribution facility in Minnesota?
(Don’t use Target for an example; it manufactures nothing. It’s employees are all white-collar headquarters workers, and red-collar service employees out in the retail world).
But when things get bad enough? Even the headquarters staff can move – or, as 3M did during the tax-happy Perpich and Carlson eras, start thinning out the central HQ and moving people to Austin.