Goin’ South : Oregon Company Sees Golden Opportunity in Santa Ana

In the midst of a statewide debate about business flight from California, an Oregon computer-services company said Friday that it will move to Santa Ana and hire 550 workers within a year.

Advanced Data Concepts Inc. will relocate from Portland to Orange County in the hopes of landing state and federal government-related contracts in Southern California, with its many military installations, Chief Executive Frank E. Rivera Sr. said.

The company also believes that by moving to Southern California it will be better positioned to seek opportunities in Mexico that arise from the North American Free Trade Agreement, he said.

“We got no assurance, no tax breaks or any incentive from the local or state governments of California,” Rivera said. “While others see doom and gloom in Southern California, we see a considerable opportunity for growth.”

The relocation comes as business interests have complained that the state has lost its competitiveness because of over-regulation, high labor and worker compensation costs and other problems. Surrounding states have tried to lure Southern California companies to their borders, but there is little evidence of a widespread exodus thus far.

Rivera said he is not concerned by the state regulations or other problems that have led many companies to consider moving from California.

“I think the economic climate of Oregon and California is about the same,” he said. “I don’t see why companies are leaving California. Maybe they don’t realize that they have a gold mine in their back yard.”

Gov. Pete Wilson, who is pushing initiatives designed to improve business competitiveness, said he hoped other out-of-state firms would follow the lead of Advanced Data Concepts. He said the free trade agreement will help the state and its businesses.

“The free trade agreement will open up a host of opportunities in California for businesses like Advanced Data Concepts, opportunities that will translate into jobs for Californians,” Wilson said in a statement.

Rivera said much of the credit for his decision should go to the U.S. Small Business Administration office in Santa Ana. The SBA office helped his company, which already has a small operation in Santa Ana, secure several contracts.

Advanced Data provides safeguard and security services, including data processing.

Its customers include some facilities of the U.S. Departments of Energy, Defense and Agriculture, the Postal Service and the Air Force. For example, at the Lawrence Livermore National Laboratory in Alameda, a government testing facility, the company tracks the movement of nuclear material.

Advanced Data, which had 1991 revenue of $12.7 million, is among the nation’s 200 largest Latino-owned businesses and is Oregon’s largest minority contractor.

The company is designated as a disadvantaged firm under SBA’s Section 8(a) program, which gives it preference to bid for federal contracts.