New ‘Raiding Party’ Arrives
When Missouri Gov. John Ashcroft came through Southern California last week, he wanted to talk business. He spent much of his time pitching Missouri’s virtues to representatives of California firms that might have an interest in new sites for expansion.
Ashcroft is one of the many state governors and local politicians who have recently made their way to California in hopes of attracting some of the state’s businesses. It is unclear how many states have targeted California but some, such as Arizona, are well known for their so-called “raiding parties”--receptions they host for California business leaders.
So far, California has nimbly fended off the competition. Christy Campbell Walters, director of the state Department of Commerce, says that business expansion in California has remained ahead of other states. During the first nine months of this year, 515 companies either expanded or located in California, compared to 415 for all of 1984.
“We know that during the 1970s and early 1980s, there were several major expansions outside of California by California firms. I think we’ve made a great deal of headway in stemming that tide,” she said. “I think the other states’ competition keeps us on our toes.”
California itself is spending about one-fourth to one-third of its business development efforts on selling California to firms outside the state. Of the 415 business expansions and locations in 1984, almost a third involved firms outside of California, according to Campbell.
Out-of-state marketing efforts have been directed mainly at working with the Industrial Development Research Council, whose members are some of the leading experts in the field of business site selection. Campbell says that next year, however, California will spend more time meeting directly with representatives of out-of-state companies.”
Meanwhile, states such as Massachusetts, North Carolina, Texas and Maryland have their eye on California’s research and development industries; Nevada on warehousing and distribution; and Oregon, Washington, Colorado, North Carolina, Texas and Massachusetts on high-tech manufacturing.
Ashcroft, in making his pitch last week, said, “People have failed to be aware of the new Midwest.” The area, he added, has “a rare convergence of traditional values and capacity for high tech.”
