Jammin Apparel Inc. has fled costly California for Virginia.
“Virginia did everything to get us to come,” said Mark Grinde, principal with his brother in Jammin, a sportswear maker formerly based in Anaheim. “California did everything to get us to leave.”
Jammin, founded in Tustin in 1983, employed about 70 people in Orange County before it packed up and left a few months back.
The company makes sport jackets, sweat clothes and hockey and softball jerseys for teams and corporations. Grinde declined to disclose sales.
Jammin moved to Rocky Mount, Va., to flee California’s onerous business climate, according to Grinde.
That makes Jammin one of a few companies to actually pull up and leave the county because of the state’s much maligned business climate.
For all the talk about California’s troubles, few businesses actually have quit the state entirely. What’s been more common is companies opting not to expand here and instead growing operations in lower-cost areas.
The main impetus for the move was an increase in workers’ compensation insurance premiums,the fourth in a row,despite zero claims, he said.
Jammin decided not to stick around and see if workers’ compensation reforms signed by Gov. Arnold Schwarzenegger would result in lower premiums.
Some companies have seen lower premiums as a result of the reforms in 2004. Many manufacturers, builders and other businesses haven’t.
Jammin competes with companies in Iowa and Mississippi, where costs are lower.
Grinde said he put a lot of time into finding a new location.
“I’ve been to every state but Alaska,” he said.
Grinde said he ruled out Arizona and Nevada because he’s not fond of the desert. He said he was looking for somewhere not too humid or too cold.
Virginia seemed to be the perfect fit, he said. The state and local governments also had the right attitude, according to Grinde.
Jammin didn’t get a beefy incentive package but it received help when needed, he said.
The county put in fiber-optic lines for the company at no cost. The town worked with Jammin on zoning issues.
“We had people from the governor’s office working for us,” Grinde said.
In Virginia, workers’ compensation costs are a tenth of California’s, according to Grinde. His personal car insurance was cut in half, he said.
Electric costs are one-third of California’s.
“It goes on and on and on and on,” he said, citing the lower costs.
Grinde said he considered lifestyle as well. The quality of schools in North Orange County was an issue, he said. Then there’s traffic.
“I haven’t heard one traffic report on the radio” in Virginia, he said.
Born in Fullerton and raised in OC, Grinde said it was bittersweet leaving. He still has family here and said he’ll miss the ocean.
“You give up a little leaving Southern California,” he said. “There are a million things to do.”
Jammin owned its building in Anaheim and was able to sell for a sizeable profit, Grinde said. The building is in Anaheim’s “tile mile” area, dominated by tile and other housing supply businesses. It’s north of Anaheim’s Platinum Triangle, where industrial buildings are being bought to make way for condominiums.
Costa Mesa-based BKM Development LLC acquired Jammin’s former building and is putting up four smaller industrial buildings for sale at the site.
Jammin bought its space in Virginia and has a 27,000-square-foot building on one floor with room for expansion. In California, it had 40,000 square feet spread out on two floors.
Jammin also left a lot of longtime workers, some with the company for 15 years, he said.
“That was really difficult,” Grinde said.
About 10 of Jammin’s key people made the move, he said. He offered them a three-month, expenses paid trial period. They’ve all decided to stay, he said.
Getting up to speed in Virginia has been hard, said Grinde, who has a home on a lake.
“I just haven’t had the chance to enjoy it,” he said.
Jammin is rebuilding its staff. It now has 40 workers, according to Grinde. By next year, he said he expects the workforce to be back up to 70 people.
“Right now we’re taking a step back to take a step forward,” he said.
