Russ Steele
As Nevada County develops an Economic Development Plan it has to consider the competition when recruiting companies to come to Nevada County. What can Nevada County offer that other foothill counties cannot offer. We have some advantages, but when we have to compete with states like Colorado and Arizona, Nevada County falls short. Not because we are not competitive, rather because Nevada County is in California which is becoming less and less attractive to businesses. Many companies are considering relocation to states which are more business friendly, following the experienced and trained labor force that are leaving California for loser cost of living states.
Arizona has put up a web site www.locateinarizona.com where they specifically target California Companies, pointing out:
• On average Arizona wages are 20% lower or $10,200 less per worker. Arizona corporate income tax rate is 21% lower and commercial office lease rates are 23% lower. (Source: Metro Comp)
• Industrial electricity rate is 35% lower in Arizona. (Source: Metro Comp)
• Arizona workers compensation and unemployment insurance are 58% and 41% lower, respectively. (Source: Metro Comp)
• California has an “oppressive” business climate and regulatory red tape. Arizona in is a right to work state, has a low union presence; no inventory tax; and aggressive additional depreciation schedules.
It is hard to compete with which these lower cost figures, so what can the Economic Resource Council do if they have limited resources? They need to focus on building the companies that are already in Nevada County, and help them become more competitive so they find moving the least attractive option. Another option is to focus on business and wealth generations resource that are unique to Nevada County. Gold mining being one. Our wealthy Senior population is another. Growing our video cluster and helping them find products and services beyond Digital and HD TV is another. Mobile/social network video applications seems to be one possible applications that will certainly grow over the next ten years.
One final note: The Arizona Legislature is working to remove Arizona from the Western Climate Initiative that was signed by the Governor. The WCI was a scheme hatched by California's Governor to limit the escape states for California companies when he initiated his extensive suite of carbon taxes. If the Arizona Legislature is successful, then Arizona becomes even more attractive to California companies.
