The number of businesses moving to Nashville, Tenn. is on the rise with many companies moving to California citing lower taxes as a main driver.
We knew we could gain more, grow more and do better in this space, in this state, than we would for sure in California, said Janet Mueller, a partner at Bold Patriot Brewing Company in Nashville, in an interview that airs on Thursday morning with Maria. The decision by FOX Business was that the Bold Patriot Brewing Company had moved from Nashville to California just as the company was about to sign a five-year lease in Golden State.
Mueller said, we all kind of looked at each other and then stopped and pondered on some other places and were like, Do we want to be stuck here for seven more years? Todd Hood, Bold Patriot Brewing Company s head brewer noted that any time you make a big move across the country, especially over 2,000 miles, you never know when it is the right time to move, but just have to take a leap of faith. The migration out of California is taking place across a wide range of industries, including manufacturing and technology.
Since the beginning of 2018, California has seen 265 businesses move their headquarters outside of the state 74 of which left in the first six months of 2021, according to a recent analysis published by the Hoover Institution, a right-leaning think tank at Stanford University. In 2020, 62 businesses moved outside of the state, whereas 78 relocated in 2019. In 2018, 58 companies exited the state.
The analysis published by the Hoover Institution in August notes reasons for Exodus from California include, higher tax rates, punitive regulations, wacky labor costs, high utility and energy costs and loss of quality of life for many Californians which includes the cost of living and housing affordability. The headquarter exits include small, highly technological legacy firms like Hewlett-Packard Enterprises, which moved its headquarters to Texas, but also Big Tech legacy firms like DARVIS, which helps digitize hospitals logistics, hygiene and documentation. DARVIS, a former San Francisco-based health tech startup, has been headquartered in Nashville, Tenn. since June.
DARVIS, an acronym for Data Analysis Real-World Visual Intelligence System provides technology that can diagnose the condition and availability of hospital beds throughout a facility and can track medical inventory as well as assess medical equipment sanitation, The Nashville Post reported.
The introduction of automated technology in the workspace allows more time for service providers to do what they are trained to do care for patients, co-founder Jan Schlueter reportedly said in a news release. The concentration of health care systems and the huge experience of health care stakeholders in Nashville made the city the perfect place to move our headquarters. A DARVIS rep did not immediately respond to FOX Business request for comment regarding whether California s high taxes and regulations were among the reasons to relocate.
From Lenny Magill, founder and CEO of GlockStore, which sells Glock weapons, accessories, and parts, Glock said Nashville was a good fit, especially considering shipping is key to his business.
He says 80% of the population in the United States can drive to Nashville within a day and it s amazing. Alworth reported that the main reason for the move to Nashville is the same for GlockStore and Bold Patriot Brewing Company.
It s really one word and the word theft said Hood, acknowledging that he was just kidding when referring to taxes.
Business taxes in California are overwhelming, he explained.
Magill has expanded his bottom line outside of California.
Your business is successful and you make enough money and all of a sudden you start to look at the numbers of tax dollars you're paying and you realize that it s just a huge number, he said.
Alworth reported that in addition to no state income tax, both business owners cited the lower cost of living and the ability to have more space as factors in their decision to move from California to Tennessee.