The Union has some details in today’s issue:
Thurston Manufacturing, a local furniture business purchased by San Antonio-based KLN Steel Products Company LLC, has announced it will be “redistributing” the company’s Grass Valley assets to alternative locations in California and central Texas.
I went on line and searched for KLN Steel Products Company “alternative locations in California,” but this is what I found on the company’s web site:
KLN has a single manufacturing facility, located in San Antonio, Texas. Our facility is specifically consolidated and designed to accommodate high volume fabrication of standard and semi-custom contract furniture and casegoods of high quality for Colleges and Universities, Military Quarters, and Job Corps Centers or wherever high quality- long life-low maintenance furniture is essential.
I think we can assume that all Nevada County manufacturing jobs will be in Texas.
Why are companies taking the Nevada County jobs to Texas?
“KLN Steel President Kelly O’Donnel states that the impetus comes from the company’s desire for more cost savings and to “better align our assets with marketplace trends and customer requirements.”
One is left to wonder if it was California’s expanding regulatory environment that was driving up the cost to manufacture furniture in the state? Since the start of the recession, Texas has created more jobs than all the other 49 state combines. Now? Low taxes and fewer regulations. In that same period the California legislature has pass multiple anti-business regulations and CARB is increasing the cost of energy under the AB-32 scam.
I predict that Nevada County will lose more jobs to Texas in the next two years. Stay tuned. Energy costs are going to soar, even as fossil fuel prices fall, the state will demand more subsidies for alternative energy, as the gap between the price of green energy and fossil fuels grows. These subsides will be paid by the rate payer, including Nevada County business. Texas is going to look better and better over the next two years.