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Butte County Tourism
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Sunday, May 11, 2008 |
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Lares Research
"Butte County -better business, better life."
A relocation decision may be predicated on business economics, but that doesn't mean personal considerations can't be taken into account.
CEO Craig Lares moved his company, Lares Research, to Butte County from San Carlos, California, in 1989. The company, which designs, develops and manufactures advanced technology equipment, was in need of a new location. It had already spread its operations to three buildings, creating logistic and communication difficulties, and Lares wanted the entire operation under one roof. But San Francisco Bay area land prices threatened to cut deeply into the company's bottom line.
Lares also wanted his family to experience the kind of quality-of-life that can only be found in a small, rural community. His father had retired to Butte County, so Lares was already well-acquainted with the area and appreciated its abundant recreational offerings. But his decision to move to Butte County also made sense economically. Land prices were one-tenth those in the Bay area, and Butte County had the telecommunications and freight infrastructure necessary for Lares Research to distribute its products across the nation and to 65 countries around the world. Lares says he also looked at other areas, but says he would have realized only half the economic benefits.
"In Butte County there's room to grow. Your costs are lower, turnover goes down, and you can be more competitive," says Lares.
Since the move, Lares Research has grown from 45 to 120 employees and revenues have more than quadrupled. Though other factors played into the company's growth, the cost differentials allowed Lares to plan for long-term growth and purchase more land than he initially needed. Lower construction costs have also made it easy to grow.
Lares says his experiences with local government have been favorable. "Being in a small town is a unique situation," says Lares.
"The city offered us a piece of land across the street on a job creation incentive basis -no money down for five years. This shows me that they have a strong commitment toward the retention and growth of existing companies."
When Lares made the decision to move, he gave his San Carlos' employees a 15-month notice period to give people ample time to decide what they wanted to do. Approximately 30 percent made the move. Once the vacating positions were identified, the company began recruiting Butte County Employees. Lares says he quickly found a sufficient number of trainable, loyal people who were willing to work. And he soon discovered that "turnover is lower here," says Lares. "The people in Butte County have an excellent work ethic and productivity stems from that work ethic."
When Lares does recruit outside the area to fill certain industry-specific positions, the lure of Butte County's "small town lifestyle" appeals to a vast number of professionals, engineers, and scientists. He's also had a great success recruiting engineer alumni from California State University, Chico. People want to come to Butte County.
"Because of the university, you'll find the kinds of cultural events that you normally don't find in a small town," says Lares. "The university also influences education throughout the community. We have one of the best educational programs in the state. And you'll find just about every kind of recreational experience imaginable.
"People don't move on bare knuckle economics. The key is the personal issue," adds Lares. "But in Butte County, the economics are there to justify your decision."
Butte County -better business, better life.
Company Information
Address:
295 Lockheed
Chico, CA
530-345-1767
Manufacturing
Product: Medical Instrumentation
Process: Design, develop and manufacture advanced technology dental equipment.
Fast Facts
Employees: 120
Square Footage: 30,000
Customer Base: Distributes in 65 countries around the world.
Top Factors in Site Selection:
1. Small town with low crime
2. University
3. More competitive -lower cost
4. Quality of work force
5. Lifestyle -recreation
© Butte County Economic Development Corporation 1999-2001. Any other use must have express permission.
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