Hey, Hey! Stay in L.A.! : Ad Campaign Asks Firms Not to Leave Southern California for Other States

A bipartisan coalition of state and local government and business leaders Wednesday launched an unprecedented public relations campaign to persuade companies to stay in Los Angeles, fighting efforts by other states to lure Southern California firms away.

With the theme “L.A. Means Business,” the advertising campaign is aimed at reversing the perception that California and Los Angeles-area governments are hostile to business. Much of the work and time for the $1.5-million effort will be donated.

The campaign will send the message “that there are people who are here to help, who do care and who are willing to do whatever we can to make sure that (businesses) will remain in the greater Los Angeles area,” former Gov. George Deukmejian said at a news conference at the Los Angeles Convention Center.

Deukmejian is the newly elected chairman of the Economic Development Corp. of Los Angeles, the organization heading the campaign. The EDC is a private, nonprofit group created by the Los Angeles County Board of Supervisors.

The campaign, which starts this month, will publicize new efforts to help businesses overcome regulatory hurdles. Billboards, bus ads and radio and television commercials will tout L.A.’s advantages over other cities.

In the last several years, a number of states have launched aggressive campaigns to lure Southern California businesses. Oklahoma even opened an office in Orange County to target companies.

The new retention effort reflects Southern California’s suffering during the recession, exacerbated by federal cutbacks in defense contracts, the failure of savings and loans and the collapse of the real estate market.

The region’s plight has renewed calls by some business leaders for a relaxation of strict environmental and other regulations, which they argue have made California a difficult place to do business. In addition, business leaders have called for reforms that would lower what they consider the burdensome costs of workers’ compensation and other insurance.

Some economists, however, argue that the recent loss of jobs in California is related more to the recession and structural changes in the economy than to a hostile business climate. When push comes to shove, they argue, businesses usually discover that there are more reasons to stay than leave.

A couple of small business owners who support the public relations campaign said Wednesday that they have decided to remain in Southern California in spite of the regulatory and economic situation.

EDC member Laura Balverde-Sanchez, president and co-owner of El Rey Sausage Co., cited the availability of a diverse work force, particularly immigrants. She said the Los Angeles firm, rebuilt from near-bankruptcy in 1983, is a thriving $5-million-a-year business.

Similarly, Parviz Hassanzadeh, president and owner of Parter Medical Corp., which makes petri dishes for hospitals, said clean-air rules adopted by the South Coast Air Quality Management District nearly drove him out of state.

He decided, however, that a move would cost too much, would have created a delay in serving his customers and would have separated him from an abundant array of suppliers and vendors in Southern California.