Another manufacturer leaving California. Sad.
Forest River Closes California Manufacturing Operations - RVBusiness -... (https://rvbusiness.com/forest-river-closes-california-manufacturing-operations/?mc_cid=3cebfa5bdb&mc_eid=26f18b7eb9)
Looks like the high cost of doing business in California is causing it and they will still manufacture in Indiana.
Kinda surprised that Forest River ever built a RV in California.
Was founded in Indiana back in 1996, the cost of living differential between California and Indiana was huge then too.
Combine that with they are transitioning one of their two facilities to a service center, I’d say they are shrinking their production capacity, using cost of doing business as a smoke screen for their reduction in production capacity. If it truly was cost of doing business, their service center would be moved to Nevada.
My guess is Forest River might have acquired manufacturers based in Southern California by a "buyout" of a competing brand or brands? (When I was a kid, Fleetwood and other manufacturers were building RV's in Corona, Hemet, and other nearby areas in the Inland Empire)
Hi Mark; My previous motorhome a Lindy by Skyline, based in Hemet, was built there. They morphed into trailers and 'Park' models. Inexpensive labor at the time, in the '80's and '90's. That motorhome, very similar in floorplan to the T/K I have now was a 1980 on a '79 chassis, and was still on the road a few years ago, with the person (a fellow worker) that I sold it to. RonB
I find that companies that use the 'cost of doing business' as an excuse to leave any area is just a smoke screen for some other problem.
I don't need to defend California as I have no dog in that fight but as the 5th largest economy in the world that State has got to be doing something right.
Economy of California - Wikipedia (https://en.wikipedia.org/wiki/Economy_of_California)
My guess is the RV business is in a major transition. Us 'old' folk are moving off the road and the younger folk have less income. I saw that in the fee increase proposal by BLM.
glen
I find that companies that use the 'cost of doing business' as an excuse to leave any area is just a smoke screen for some other problem.
There are definitely some other problems in California. A couple interesting articles:
From Worst to Best: How California ended up with the worst business climate... (https://californiapolicycenter.org/reports/worsttobest/)
Why Did 352 California Companies Flee to Other States in Three Years? –... (https://californiaglobe.com/fl/why-did-352-california-companies-flee-to-other-states-in-three-years/)
I’m fine with California losing companies to states with far lower corporate tax rates as those states are providing tax subsidies with the residents picking up the tab.
Likewise California could stand to lose another 5-10 million people, as it’s too crowded.
There are definitely some other problems in California. A couple interesting articles:
From Worst to Best: How California ended up with the worst business climate... (https://californiapolicycenter.org/reports/worsttobest/)
Why Did 352 California Companies Flee to Other States in Three Years? –... (https://californiaglobe.com/fl/why-did-352-california-companies-flee-to-other-states-in-three-years/)
At the risk of getting comments removed, have you looked into the biases and perspectives of the organizations behind your sources?
For the first one, from their 'about us' page:
"At CPC, we know firsthand that until we rein in government union power, there’s little hope for reform in our state...." It is certainly one perspective of a very complex issue.
This thread is going political and is now locked.
Larry