The company says the Sacramento plant, built in 1947, is the oldest in its network and has the highest production costs on a per-case basis.Notice the words "highest production costs on a per-case basis." The article then quotes the president of Campbell North America on the reasons for this move.
We expect the steps we’re announcing today to improve our competitiveness and performance by increasing our asset utilization, lowering our total delivered costs and enhancing the flexibility of our manufacturing network.In other words, avoid the high costs of operating this plant in California. The production is being moved to Texas, North Carolina, and Ohio.
The article also discusses the closure of three Comcast call centers in Northern California, also for cost reasons. California continues to lose jobs to states with lower operating costs and fewer regulations.
