Haas Automation, a leading manufacturer of large machinery and tools in the United States, is nearing the completion of its new large factory in Nevada, moving some of its operations out of Southern California.
This month, Haas submitted a Worker Adjustment and Retraining Notification (WARN Notice) to the California Employment Development Department, planning to relocate 73 job positions to the new factory in Henderson, Nevada. The California Worker Adjustment and Retraining Notification Act (Cal-WARN) applies in cases where a company closes or downsizes, affecting 20 or more workers at a single location.
The affected positions include assembly line workers, operators, and mechanics of various kinds. According to the notice submitted by Haas, this relocation is not a layoff, as employees will move with the business to Nevada and continue working for the company; the relocation is set to be completed by the end of this year.
Last year, Haas Vice President Peter Zierhut stated to the media that while the new facility is crucial for the company’s future, they are still committed to maintaining a significant business presence in Ventura County and continuing important operations there.
Established in 1983, Haas is headquartered in Oxnard, Ventura County, and is one of the largest private employers in the county. The company primarily manufactures four types of machine tools – vertical (VMC), horizontal (HMC), CNC lathes, and rotary tables; in addition, they also produce various large five-axis and specialty machine tools.
The existing production site covers 1.1 million square feet, while the new site spans 2.5 million square feet, more than twice the size. It will include a company lobby, product showroom, event center, as well as machine shops, the Haas Tooling division, inventory area, shipping and receiving zones, parts assembly area, and foundry area among other complete production facilities.
Comparing individual and corporate tax rates between California and Nevada, Nevada holds advantages as well: California imposes personal income taxes ranging from 1% to 12.3% (with an additional 1% surcharge on income over $1 million), while Nevada does not levy personal income taxes. California imposes an 8.84% corporate tax, while Nevada does not tax corporate income; however, it levies a business tax on income over $4 million, allowing companies to retain more funds for operations.