We began losing customers and prospective customers in early 2001 because of the adverse business climate in California and the effects of the recession. We started keeping a record of the companies of which we were aware that either that moved out of state or had gone out of business since January 2001. In the spring of 2003, several legislators asked Michele Nash-Hoff to provide them with the list of companies, which she decided to turn the list into a report to make key policy makers aware of the seriousness of the situation. This original report and list evolved into an analytical report that she has been e publishing periodically since March 2003. The reports provide an update on the state of various regional industry sectors, the effects of outsourcing offshore, California’s competitiveness in the challenging global economy, as well as issues affecting the manufacturing sector nationwide.