SFHAPS

San Francisco, California

#job

"Too tough to compete in a down economy when you locate facilities in high cost areas. At 10% unemployment and rising, you locate the business in lower cost areas and tell job seekers to move. In a good economy, they don’t. In the economy of the next 5 years, they do. This is going to start happening more and more with existing companies. They know they can pay new employees way less than the current ones, so they really don’t care too much about retaining their workforce like they did years ago. They’ll pick up and move to the east bay or move half their jobs to Texas or Arizona. If half the people quit, well, no big deal, their replacements will cost 30% less. The balance of power has shifted to the employers, and those who take advantage of it will outperform their competitors. Those who don’t will go out of business. So either way, you’ll start to see an exodous from the high cost bay area as leases come up for renewal, until the costs here get closer to costs elsewhere. If the companies refuse to move, they’ll be acquired and forced to move."

tipster

5 years ago • 0 notes