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Opinion: My business won't flee California like SpaceX or Chevron. But we do want some changes

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Opinion: My business won't flee California like SpaceX or Chevron. But we do want some changes

Businesses both small and large are fleeing California in search of friendlier pastures.

From 2018 through 2021, 352 companies relocated their headquarters from California to other states. The rate of exit more than doubled from 2020 to 2021 and was highest in Los Angeles County, an analysis by the Hoover Institution at Stanford University found.

The wave of departures has continued in 2024: Last month Elon Musk announced he will move SpaceX from Hawthorne to Texas, and this month Chevron announced plans to move its headquarters to the Lone Star State as well.

It’s part of a larger pattern. Headquarters and manufacturing plants are closing down and relocating operations to cities in Texas, Nevada and Florida. The Farmer John Meatpacking plant, a fixture of the Los Angeles meat industry for nearly a century, ceased operations and left the city to continue business elsewhere last year.

While the exodus has been headlined by a few big names, I often hear that medium to small businesses are quitting the city quietly, unburdened by public disclosure requirements and individually too small to register in media reports.

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The explanations are varied, but the ultimate reason is clear: Los Angeles is an increasingly difficult place to operate a business. Affordability issues including high taxes and escalating labor, utility and energy costs, in addition to burdensome liability and punitive regulations, top the daily challenges. California perpetually resides at the bottom of state rankings of business favorability.

These factors are compounded by the enticing pull of recruitment efforts by other cities, including the promise of governmental partnership — especially appealing to Golden State businesspeople who complain of treatment as diverse as apathy and outright animosity from local officials.

Tantalized by prospects of greater opportunity, profitability and incentives out of state, the rational business mind makes a compelling case to leave. It practically screams it.

So this may sound crazy: Despite the mounting challenges in Los Angeles, my family-owned business isn’t going anywhere.

We care deeply about cost savings, efficiency and growth opportunities, and we recognize profitability as imperative to survival. But like many other small businesses in Los Angeles, we measure success and derive value beyond just profit and loss.

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I am the proud owner of a four-generation beef jerky company that has called Los Angeles home for nearly 100 years. It brings me immeasurable joy to work in the same brick building built by my great-grandfather, greet customers who knew my grandfather, and share an office with my father. You can’t put a price tag on legacy. This legacy of course extends to our employees, many of whom have dedicated more than 25 years to our business, or have gone on to achieve successful careers elsewhere and even start their own businesses.

Rather than chase cheaper labor, our company would rather invest in our employees through health benefits and professional development as well as cultivate a sense of family. Other states have tried to recruit our business to leave California, but among the reasons we have refused is that we don’t want to abandon these connections.

We also value our role as part of L.A.’s communities. This year we launched a program targeting causes that align with our mission — supporting youth, families and active lifestyles — through monetary and product donation, as well as volunteering our time and expertise.

That’s the difference between huge corporations and small businesses. The former each employs thousands of local residents and contributes robust tax revenue to the city at a scale we can’t match. But larger companies — whether publicly traded, backed by private equity or international holding firms, and sometimes led by celebrity billionaires — are moving targets. They will pursue shareholder value at all costs regardless of regional ties or other considerations.

Meanwhile, there are 4.1 million small businesses in California that generate 7.5 million jobs, representing 47% of private-sector jobs. More importantly, two out of three net new jobs come from a small business.

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Although corporations are important to L.A.’s financial ecosystem and should continue to be recruited, small businesses should not be discounted. Just because my business and others have chosen to stay here doesn’t mean we should be taken for granted.

In good news, the U.S. Chamber of Commerce reported a 7.8% increase in new business applications in California from 2022 to 2023. Los Angeles County may lead the state in departures, but it also had the most business applications during that year — 160,925. The challenge is getting them to stay.

To that end, we are rallying our peers around a common goal of improving the business landscape. These efforts have coalesced in the Made in LA Coalition working to raise consumer awareness about products manufactured in Los Angeles.

Some of the key initiatives we’d like to see include financial incentives for local manufacturing that encourage job creation and advancement, protections against pernicious lawsuits by bad actors seeking personal gain rather than the public good, and a commitment by the local government officials to use their platform and reach to celebrate the businesses, and people behind the businesses, who are committed to the city.

That kind of investment will help make Los Angeles a place where both business and community can thrive long term.

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Brian Bianchetti is the fourth-generation CEO of People’s Choice Beef Jerky.

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Northrop Grumman announces another round of South Bay layoffs

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Northrop Grumman announces another round of South Bay layoffs

Northrop Grumman could cut as many as 550 jobs at its Redondo Beach and Manhattan Beach aerospace facilities after laying off several hundred employees earlier this year.

The Falls Church, Va.-based government contractor announced the second round of cuts this week to its space business without specifying what programs are targeted. In February, it told employees that it could eliminate about 1,000 jobs in the two South Bay cities, as well as Azusa.

The company did not cite the reason for the earlier cuts and ended up redeploying more than 600 of the targeted workers to other positions in the company, which has nearly 100,000 employees globally. It said it would attempt to do so again.

“We are providing all potentially impacted employees with advanced notice and have begun the process of working to match them with existing opportunities across the company,” Northrop Grumman said in a statement.

The company said it filed a Worker Adjustment and Retraining Notification Act notice about the potential reductions with the state’s Employment Development Department and notified local officials.

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Northrop, based in Century City until 2011, operates a historic 110-acre Space Park in Redondo Beach dating back to the Cold War where it developed the intercontinental ballistic missile, and has other facilities in the region.

The company currently operates a microelectronics foundry at the park and has multiple civil and defense space programs throughout the South Bay, including spacecraft manufacturing, space instrument design and orbiting space platforms.

Northrop took a hit this year when the U.S. Space Force canceled a multibillion-dollar program to build a new military communications satellite because of rising costs and delays in its development, Bloomberg News reported.

The company also has suffered cost overruns in building the Habitation and Logistics Outpost to house astronauts returning to the moon as part of NASA’s Artemis program. Northrop received a $935-million fixed price contract to build the module in 2021 and took a $42-million charge in last year’s fourth quarter because of higher expenses, raising its 2023 program charges to $100 million.

Northrop’s other Los Angeles County operations include a large aircraft facility in Palmdale where it is building the new B-21 stealth bomber, the center fuselage for the F-35 fighter jet and drone aircraft.

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It also has facilities in El Segundo, San Diego, Northridge, Woodland Hills, Ventura County and Sunnyvale that employed some 30,000 people as of early this year.

Northrop is not the only government contractor to file WARN act layoff notices this year in California.

Lockheed Martin filed notices for more than 200 employees in Palmdale and more than 130 in Sunnyvale, and RTX Corp., formerly Raytheon, filed a notice for more than 130 employees in El Segundo.

In February, NASA’s Jet Propulsion Laboratory laid off 530 employees, or 8% of its workforce, because of federal budget cuts.

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Longtime YouTube executive Adam Smith joins Disney in key tech role

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Longtime YouTube executive Adam Smith joins Disney in key tech role

Longtime YouTube and Google executive Adam Smith will join Walt Disney Co. as chief product and technology officer for Disney Entertainment and ESPN, indicating the media and entertainment giant’s intent to improve its customer technology experience.

Smith will be responsible for setting the strategy, development and innovation of technology across Disney’s streaming platforms and networks, its advertising tech and “consumer digital touchpoints,” among other aspects, Disney said in a statement Thursday.

“We could not be more thrilled to have Adam join the Disney team in this pivotal role,” Disney Entertainment co-Chairs Alan Bergman and Dana Walden and ESPN Chair Jimmy Pitaro said in a joint statement. “Adam brings a bold, consumer-focused vision for the future and a proven ability to effectively lead global teams in implementing ambitious, scalable and flexible products and technology that will continue to elevate storytelling as the center of the Disney experience.”

Smith starts in his new role Sept. 3 and will report to Bergman, Walden and Pitaro, the company said. He replaces Disney veteran Aaron LaBerge, who left the company after 20 years to join casino and sports-betting company Penn Entertainment.

Smith worked at both YouTube and Google for more than 20 years. He last served as YouTube’s vice president of product management since 2016 and was in charge of the company’s subscriptions, music, commerce and premium efforts. While at Google, he led development and strategy for projects such as Google Fiber and also oversaw a portfolio including Google News, Google Books and Google Scholar.

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His hire comes as Disney has made more strides in its streaming business. The company’s overall streaming business — which consists of Disney+, Hulu and ESPN+ — finally turned a profit in the third fiscal quarter after years of losses totaling billions of dollars.

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Column: The COVID lab-leak claim isn't just an attack on science, but a threat to public health

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Column: The COVID lab-leak claim isn't just an attack on science, but a threat to public health

Here’s an indisputable fact about the theory that COVID originated in a laboratory: Most Americans believe it to be true.

That’s important for several reasons. One is that evidence to support the theory is nonexistent. Another is that the claim itself has fomented a surge of attacks on science and scientists that threatens to drive promising researchers out of the crucial field of pandemic epidemiology.

That concern was aired in a commentary by 41 biologists, immunologists, virologists and physicians published Aug. 1 in the Journal of Virology. The journal probably isn’t in the libraries of ordinary readers, but the article’s prose is commendably clear and its conclusions eye-opening.

We now see a long-term risk of having fewer experts engaged in work that may help thwart future pandemics, and of fewer scientists willing to communicate the findings of sophisticated, fast-moving research topics that are important for global health.

— 41 scientists warn of the rise in anti-science disinformation

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“The lab leak narrative fuels mistrust in science and public health infrastructures,” the authors observe. “Scientists and public health professionals stand between us and pandemic pathogens; these individuals are essential for anticipating, discovering, and mitigating future pandemic threats. Yet, scientists and public health professionals have been harmed and their institutions have been damaged by the skewed public and political opinions stirred by continued promotion of the lab leak hypothesis in the absence of evidence.”

Before exploring further how the lab leak theory has been exploited to undermine public confidence in science and scientists, let’s examine what’s known and unknown about the origins of SARS-CoV-2, the virus that causes COVID.

The so-called zoonosis hypothesis, which is favored by the vast majority of the virological and epidemiological communities, is that the virus reached humans via a spillover from the animal kingdom, probably through the unregulated wildlife trade in Southeast Asia.

“Validating the zoonotic origin is a scientific question that relies on history, epidemiology, and genomic analysis, that when taken together, support a natural spillover as the probable origin,” the Virology paper states.

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The lab leak theory holds that SARS-2 was created or manipulated into existence in the Wuhan Institute of Virology and escaped from the lab, whether deliberately or by accident.

Lab leak adherents bristle at the accusation that they’re conspiracy-mongers. Anthony Fauci, the retired director of the National Institute of Allergy and Infectious Diseases and the target of some of the most febrile attacks from the anti-science crowd, acknowledged at a June 3 House hearing that the lab leak theory was not inherently a conspiracy theory, conceptually—but that it had been exploited to support some truly crazy conspiracy narratives.

Fauci testified that he remained open to a lab leak narrative in principle, and that if any evidence for it emerged he would consider it seriously. That’s typical of most scientists, especially biologists, who are led by the infinite variability of the natural world to be innately averse to declaring anything conclusively possible or impossible.

The fact is, however, that one can’t advance the lab leak theory without positing a vast conspiracy encompassing scientists in China and the U.S., and Chinese and U.S. government officials. How else could all the evidence of a laboratory event that resulted in more than 7 million deaths worldwide be kept entirely suppressed for nearly five years? Some external hint of the event inevitably would have surfaced somewhere, somehow, by now. None has.

“Validating the lab leak hypothesis requires intelligence evidence that the WIV possessed or carried out work on a SARS-CoV-2 precursor virus prior to the pandemic,” the Virology paper asserts. “Neither the scientific community nor multiple western intelligence agencies have found such evidence.”

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Despite that, “the lab leak hypothesis receives persistent attention in the media, often without acknowledgment of the more solid evidence supporting zoonotic emergence,” the paper says. The paper doesn’t name all the media culprits, but they include the independent investigative news site ProPublica and Vanity Fair.

It does take direct aim, however, at the New York Times, which on June 3 published a column by researcher Alina Chan asserting that the “pandemic probably started in a lab.” In a 2021 book, Chan had aired almost identical arguments that were largely refuted by experts in the field. Her more recent article “misrepresents and underplays the existing scientific data supporting a zoonotic origin of SARS-CoV-2,” the Virology paper reported.

I’ve written before about the smears, physical harassment and baseless accusations of fraud and other wrongdoing that lab leak propagandists have visited upon scientists whose work has challenged their claims; similar attacks have targeted experts who have worked to debunk other anti-science narratives, including those about global warming and vaccines.

Some of these attacks have come from elected officials seeking partisan cred, such as Sen. Rand Paul (R-Ky.) and Rep. Marjorie Taylor Greene (R-Ga.). They’ve been augmented by figures such as Donald Trump and Robert F. Kennedy Jr.

What’s notable about the Virology paper is that it represents a comprehensive and long-overdue pushback by the scientific community against such behavior. More to the point, it focuses on the consequences for public health and the scientific mission from the rise of anti-science propaganda.

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Its authors are drawn from the faculties of the state universities of Arizona, California, Connecticut, Maryland, Florida and Ohio, as well as from Johns Hopkins, Duke and the Cleveland Clinic.

“Scientists have withdrawn from social media platforms, rejected opportunities to speak in public, and taken increased safety measures to protect themselves and their families,” the authors report.

“Some have even diverted their work to less controversial and less timely topics. We now see a long-term risk of having fewer experts engaged in work that may help thwart future pandemics, and of fewer scientists willing to communicate the findings of sophisticated, fast-moving research topics that are important for global health….Most worrisome for future preparedness, the next generation of scientists has well-founded fears about entering fields related to emerging viruses and pandemic science.”

The paper revisits the scene at the public interrogation by House Republicans on June 3. “The hearing,” it observes, “was often disrupted and marked by contentious, disrespectful, and unfounded calls for Dr. Fauci to be ‘prosecuted’ and imprisoned for ‘crimes against humanity.’”

By presupposing that evidence of a lab leak has been deliberately suppressed by leading scientists and scientific administrators, its promoters have cast “unsupported blame on scientists, many of whom had warned of the potential threat of, and need for effective countermeasures to prevent, zoonotic transfer of viruses into humans,” the authors write.

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At a certain level, the popular embrace of scientific conspiracy theories is understandable. As the Swiss molecular biologist and science writer Philipp Markolin has observed, disinformation relies on myths that provide simple explanations for traumatic world events, like the pandemic, by positing that it was caused by shadowy, powerful actors. There’s never a shortage of grifters and manipulators using this public confusion to their advantage.

Thanks in part to social media, anti-science has become more virulent and widespread, the Virology authors write. Large numbers of researchers into SARS-2 have reported “harassment ranging from personal insults to threats of violence, ‘doxing,’ and personal contact,” according to the paper— of 1,281 scientists in several fields who responded to a survey by Science, 51% said they had experienced at least one form of harassment, sometimes over a period of years.

The Virology authors warn that the vilification of scientists whose research supports the zoonosis hypothesis will leave society defenseless when the next pandemic threat emerges.

“If these narratives are left unchecked, we become a society that dismisses and vilifies those with expertise and experience relevant to the challenges we face,” the authors write. “We then base decisions affecting large populations worldwide on speculation or chosen beliefs that have no grounding in evidence-based science.”

That’s what the future holds if we allow misinformation and disinformation, weaponized by sociopaths seeking financial or partisan gain, to guide our actions. We have been warned.

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