Tuesday, November 08, 2005

Big Business Moves INN

State offers haven for Calif. firms, from the Arizona Republic, reports that California companies such as Google and eBay are expanding into Arizona, seeking a haven from earthquakes and the high costs of doing business, and economic development leaders say the trend can only grow as the two states' economies become joined at the hip. Other California firms that have made a move into the area include DHL Systems, Countrywide Financial Corp., and Intel, which has begun building its third chip plant in Chandler. At the Greater Phoenix Economic Council (GPEC), California related business makes up about one-third of its projects. GPEC reports that they are seeing more California firms expanding operations into Arizona. The idea is to position Arizona as a base for expanded operations, as a supplier of goods and services to California companies, or as a source of investment opportunities for firms there. Some of the reasons cited for California firms expansions into Arizona include the quality of employees available, either from firms in their industry or from universities; access to a large international airport; and a quality of life that enables them to attract and keep talented employees. Look for this trend to continue and expand in the future.

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