Ok, let's cut the BS.
Chuck Buck turned the company over to C. J. years ago (as his father turned it over to him and his father before him) and the company did and is doing well. Under C.J.'s guidance the company took an activist stance working to protect the rights of knife manufacturers and knife owners in California playing a critacal role in getting important legislation passed keeping one hand openers from being classified as "switchblade" knives. The company is leaving CA and moving to Idaho (which may seem like another country to some, but is not over seas) for simple costs reasons.
Buck Knives is moving on to Idaho;
costs cited
By Matthew T. Hall
STAFF WRITER
January 15, 2003
EL CAJON – Buck Knives, one of the county's landmark businesses,
said yesterday that it is leaving California and will move to Idaho early
next year.
President and CEO C.J. Buck said California's rising cost of business
forced the hand of the family, which has run the company for 100
years. He said that in April, too, when first discussing a possible move.
Buck said no more than a quarter of his 250 employees will move to
the plant in Post Falls, Idaho. He said no layoffs will come this year,
and added the company has not set a moving date beyond the first
quarter of 2004.
Last year, Buck Knives celebrated its century mark. It was founded in
Kansas in 1902, moved to San Diego after World War II and settled in
El Cajon in 1968. Its knives are sold internationally and are favorites
among outdoorsmen.
Buck, who was 8 when the company moved to El Cajon, said his
father, Chuck Buck, made the final decision to leave the city late last
week.
C.J. Buck credited local politicians and business leaders with working
hard to retain the company in the spring, but said that after
November's statewide elections the family didn't envision the business
climate getting better in California.
East County Supervisor Diane Jacob said the problems faced by the
company are "breaking the backs of businesses in this state."
"I think this is just the beginning of the exodus of businesses in the
state unless there are sweeping reforms in the way we treat
businesses," Jacob said.
Terry Saverson, head of the East County Regional Chamber of
Commerce, said the departure of Buck Knives illustrates all businesses
are having trouble with state laws and regulations. She said she knows
of several businesses that are feeling pressure to leave.
El Cajon Mayor Mark Lewis said he hoped the departure would not
create a domino effect, noting that some local businesses are suppliers
to Buck Knives.
The company has struggled over the years, facing increased
competition in an international market. Annual sales are off 25
percent since 1995. Twenty years ago, the company had 600
employees, more than twice what it has now.
The 10 acres the company owns near Gillespie Field went up for sale
again yesterday at an asking price of $9 million. It was on the market
last year, but the family took it off when no one made an offer.
Phil Duckett, the company's vice president of operations, said its new
12-acre home cost about $800,000.
The land price is but one of the incentives that Idaho offered Buck
Knives. The company will receive $3,000 per employee from the state
for training. In addition, wages, benefits, utilities and workers'
compensation costs are much lower than California's, Duckett said.
In Idaho, the company's energy costs could fall 60 percent, workers'
compensation costs 40 percent, and wages and benefits 20 percent,
compared with here. Executives said they expect to employ the same
number of people.
Duckett said the company's annual savings would be in the millions of
dollars, but he declined to be more specific.
The company chose Idaho over states, such as Washington and
Oregon, because it had the "best long-term, business-friendly
legislative environment," Buck said.
He said the news disappointed but did not surprise workers. Buck told
them yesterday to give them as much time as possible to find other
jobs if they wanted to start looking.
"We ran the risk of giving too much notice and possibly losing people
while we still needed them," he said. "That's a chance we decided to
take."
The company is considering bonuses and incentives for workers who
decide to stay to the end, Buck said.
He summed up his thoughts on the move, saying: "I adore East
County, so it's very sad to have to make this decision that we have to
relocate. On the other hand, Idaho is beautiful."