California is the place where trends begin; where the rest of America ( and sometimes the world ( gets a glimpse of the future. Because of some assistance from the state of California, one of the most forward-thinking organizations anywhere will continue to call California home.
The RAND Corp. announced in July that it would construct a new 300,000 square foot headquarters adjacent to its current facility in Santa Monica. More than 1,100 employees will work in the new facility.
RAND, which has been in operation since 1948, is one of the world's leading think tanks. The organization focuses its work on issues facing the country. Included among RAND's past projects are design and construction of the earliest computers and the background for today's Internet technology.
The state, through the California Infrastructure and Economic Development Bank, will provide $130 million in industrial revenue bonds to help finance the project.
"RAND is committed through this financing to provide a state-of-the-art facility for the cutting-edge research we provide for the nation, said Michael Rich, executive vice president for RAND. "We are also proud of our partnership with the city of Santa Monica in its efforts to create long-term economic prosperity in the downtown area."
A Backdrop for Success
The situation with RAND demonstrates why California is the right destination for numerous companies. The state ( with the pristine weather, tens of millions of people and top-flight universities ( is a natural site for companies that need workers with high-technology skills.
State government has also made a concerted effort in the past decade to make it easier for companies to conduct business. While California does have more stringent environmental laws and regulations than most other states, it has reduced the amount of bureaucracy companies must go through to get projects off the ground.
Another company that is making use of the Infrastructure Bank is G&G Foods of Santa Rosa. The Infrastructure Bank is providing $2.2 million in revenue bonds for G&G to upgrade equipment at its facility, where it makes gourmet bagel and cheese spreads and dips.
"G&G's strategic goals have long included both product expansion and market share growth," said Jim Brockman, vice president and chief financial officer of G&G. "With this financing, we will now be able to compete in new geographical areas, thereby exposing our goods to a much broader audience."
With the improved equipment, the company plans to expand its reach beyond California to locations including New York, Florida and Canada.
(Northrop Grumman Takes Flight
One company that is literally getting of the ground is Northrop Grumman. The aviation company announced in July that it would expand its component assembly plant for the Joint Strike Fighter in Palmdale, and expand its component manufacturing plant in El Segundo.
The U.S. Navy and the British Royal Air Force use the F-35 Joint Strike Fighter. Lockheed-Martin won the contract to manufacture the 3,000 jets, and Northrop Grumman's primary responsibility is to design and manufacture the center fuselage.
"Performing Northrop Grumman's work for the Joint Strike Fighter in El Segundo and Palmdale allows us to utilize the outstanding skills of the work forces in both areas," said Gary W. Ervin, air combat systems sector vice president for Northrop Grumman.
Work on the JSF project is expected to account for 250 jobs at the Palmdale facility by 2006, according to company officials. All together, Northrop Grumman employs almost 5,000 people at the Palmdale and El Segundo facilities.
Japanese Automotive Supplier Finds Home
California's location makes it ideal for doing business in Asia, and for Asian companies to expand into North America. Fuel Systems Total California Corp., a subsidiary of Japan-based FTS Co., announced that it would locate a fuel tank and fuel delivery system manufacturing facility in Lathrop.
Fuel Systems will employ about 70 people at the site when it opens in May 2004.
The decision to choose Lathrop really began in July 2001. At that time, officials with Fuel Systems contacted the California Technology, Trade and Commerce Agency (TTCA). The company knew it wanted a facility on the West Coast, and figured it needed 10 to 12 acres in a prospective site.
TTCA provided Fuel Systems with information on various sites, and then hosted the company on a tour of several locations in California's Central Valley.
Fuel Systems then began working directly with the city of Lathrop to finalize a deal and work through environmental concerns. The company decided to purchase 11 acres in March 2002. A groundbreaking ceremony was held in June on the $10 million, 120,000 square foot facility.
A couple of other Japanese companies also announced they would expand in California. Toyota said it would manufacture its Voltz automobile in Fremont. That car will then exported back to Japan for sale.
Also this summer, Hino Motors announced it would open its first U.S. manufacturing facility in Long Beach. Hino Motors has been in Long Beach for more than 30 years, but this is the company's first foray into manufacturing in the United States.
Lance Yoder is a freelance business writer based in Greenwood, Mo.
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