The Briefing Room
State Chapters => California => Topic started by: Elderberry on February 09, 2021, 12:02:59 pm
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The Drive by Rob Stumpf February 8, 2021
Edelbrock Is Leaving California Partly Because SpaceX Hires Too Many Machinists
Legendary auto parts manufacturer Edelbrock recently announced to the state of California its intent to close the long-time company headquarters located in the city of Torrance. This sparked a wildfire of speculation for the closing, ranging from financial problems to political concerns—but as a company official revealed to The Drive, the reason is much simpler.
While Edelbrock is closing its Torrance facility, the company itself won't be closing up shop. Instead, Edelbrock will be moving its headquarters to Olive Branch, Mississippi, where it will share a building with its step-sister company, Comp Cams.
The move to Mississippi is fueled mainly by the need for growth and Edelbrock's inability to fulfill its needs at the Torrance facility at a reasonable cost. In addition to the property itself not being conducive to expansion, the location has also been the root cause of the company's high cost of labor. With both issues considered, the company determined that the best course of action would be to fold-in the Torrance facility in favor of another location.
"For us, the decision really came down to a couple of criteria," said Edelbrock Group Chief Commercial Officer Chris Douglas to The Drive. "Number one, labor is extremely hard to come by in Los Angeles county. You're competing against the aerospace industry; Boeing and some others have a lot of presence there. SpaceX is another one that we battle all the time for machinists. SpaceX has a big presence in El Segundo which is just down the street from Torrance."
More: https://www.thedrive.com/news/39112/edelbrock-is-leaving-california-partly-because-spacex-hires-too-many-machinists (https://www.thedrive.com/news/39112/edelbrock-is-leaving-california-partly-because-spacex-hires-too-many-machinists)
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High labor costs and high housing costs. While southern LA County and northern Orange County aren't CA's highest for housing costs, it's still a substantial recruitment barrier (What new college grad wants to hear, "You might be able to buy a house in 20 years.").