Business costs do matter

The Seattle Times reports that Cascade Designs is moving jobs to Nevada because the cost of doing business in Seattle is too high.

Seattle-based outdoor-gear maker Cascade Designs will move about 100 jobs, roughly one fifth of its workforce, to a new manufacturing and distribution facility in Nevada as it seeks to keep costs down while pursuing growth.

The company said it needs to expand, but doing so in the Seattle area is too expensive. The main reason is increasingly expensive real estate, especially for the space it leases around the city to house its merchandise.

“We’re running out of space in Seattle,” spokesman Martin Maisonpierre said.

But labor costs — recently subject to a minimum wage of $15 per hour — also add up, especially as Cascade competes with brands that rely on cheap overseas labor, Maisonpierre said.

He said the jobs in Reno will pay $10 an hour or more. Many of them will be on the more labor-intensive, less-specialized end of the spectrum.

The complete Times story is here.