This week in Santa Cruz County business: Joby chargers, Westside tech acquisition, Dungeness crab season opens

Each week, we’ll be taking a closer look at the movers and shakers, the growth of industries, and what’s really driving the Santa Cruz County economy. I’ll be spotlighting some of the biggest areas for opportunity, updates on local development and all things underpinning the regional business scene, each Wednesday.

Got ideas? Send them my way to news@lookoutlocal.com with “Business News” in the subject line.

Joby Aviation will install first electric air taxi charger in Southern California

Santa Cruz-based Joby Aviation is partnering with private jet company Clay Lacy Aviation to install an electric air taxi charger at Orange County’s John Wayne Airport. It will be the first such charger in Southern California.

The charger will be part of Clay Lacy’s $100 million redevelopment of its terminal at John Wayne Airport, with completion targeted for 2025. Clay Lacy, based in Southern California, provides aircraft management, air charter and other services for private and corporate clients. The company manages a fleet of over 100 business jets with operations at Van Nuys Airport and McClellan-Palomar Airport in Southern California and Waterbury-Oxford Airport in Connecticut.

Joby’s charging interfaces are already in use at the company’s test center in Marina and at Edwards Air Force Base. Installing a charger at John Wayne Airport is a step toward establishing the company’s Southern California air taxi network. Joby Aviation aims to kick off commercial operations as soon as 2025. In November, state officials awarded the company a $9.8 million grant to expand its facilities in Marina and add jobs throughout California, including at its Santa Cruz headquarters. The company is also building a manufacturing plant in Dayton, Ohio, with a goal of being operational next year.

Local Kelly-Moore Paints stores shutter after parent company closes

All Kelly-Moore Paints stores have closed after the parent company announced it was immediately ceasing operations.

Last week, Kelly-Moore Paints announced that after 78 years in operation, it was permanently shutting down all of its facilities, including a manufacturing facility in Texas and its retail stores, all of which were leased. The company said it was forced to shut down after it was unable to find new investment capital to help turn around its failing business. 

The company also dealt with an onslaught of ongoing litigation claims over asbestos, stemming from its past use of the substance in cement and other products under its prior ownership. (Pleuger Chemicals acquired the company in October 2022.) The costs of paying out legal settlements and defending continued case filings left the company severely constrained, according to a statement issued by Kelly-Moore Paints. 

Calls to the company’s stores in Aptos, Watsonville and Santa Cruz this week were answered by a recorded message directing callers to the corporate website. A company spokesperson confirmed the three stores were no longer in operation but could not confirm how many people these stores employed. 

Kelly-Moore, now headquartered in Irving, Texas, was founded in San Carlos, California, in 1946, and at its height was one of the biggest independent paint stores in the country.

SupplyShift acquired by Chicago-based software provider

A Chicago-based software firm is acquiring SupplyShift, a Santa Cruz company that specializes in software focused on building improved supply chains and helping companies track their carbon footprint.

SupplyShift’s software enables buyers and suppliers to quickly share information to manage risks and comply with various regulations. The company has built a supply chain network of over 100,000 suppliers in industries including global retailers, along with pharmaceutical and food and beverage companies.

Jamie Barsimantov and Alex Gershenson, graduates of UC Santa Cruz’s climate science and environmental economics doctorate program, founded the company in 2012. SuplyShift’s current headquarters is on River Street. 

Chicago-based Sphera announced Jan. 9 that it had acquired SupplyShift. Sphera provides software to help companies track and meet their environmental, social and governance (ESG) goals. Companies are facing pressure to comply with increasingly complex environmental regulations. Investors are also scrutinizing how the companies they invest in manage not only their own environmental and social impacts but those of their suppliers. Sphera said its SupplyShift acquisition will help it offer more reporting capabilities for Scope 3 greenhouse gas emissions. Scope 3 emissions make up the bulk of most companies’ greenhouse gas emissions today. While Scope 1 and 2 emissions involve a company’s direct activities, such as manufacturing products or heating buildings, Scope 3 emissions aim to capture all emissions associated with a company’s activities, such as waste disposal, transportation and materials production. As companies seek to meet international climate standards, they must be able to track these emissions, which often requires close contact with the vendors and suppliers they work with.

“As more regulations are passed that demand transparency, the SupplyShift solution will become indispensable in meeting global regulatory requirements and stakeholder expectations,” said Paul Marushka, Sphera’s CEO and president. “Bringing SupplyShift’s portal into the Sphera family will expand our current offerings and enable us to provide unparalleled Scope 3 and ESG tracking and reporting capabilities.”

Terms of the deal were not disclosed.

ICYMI: Dungeness crab season finally gets local opening date, with restrictions

After months of delays, local Dungeness crab fishermen have finally gotten the green light for the new season. State officials announced last week that the commercial crab season in Santa Cruz County will open Thursday, as Lily Belli reported. Fishermen will be limited in the number of crab traps they’re allowed to use, to the tune of a 50% reduction.

The season was delayed several times due to concerns over whale entanglements.

For the local fishing community, the continued delays followed the cancellation of last year’s commercial salmon season. State officials have sought federal disaster relief to help those impacted by the closures. Meanwhile, the U.S. Small Business Administration is offering low-interest loans to businesses affected by the canceled season.

Ch-ch-changes: Openings, closings and other developments

• Food Bin and Herb Room project moves to next steps: The City of Santa Cruz Planning Commission is slated to consider permits pertaining to the proposed mixed-use housing and commercial development on the site of the Food Bin and Herb Room on Mission Street at its meeting on Thursday. Representatives from local building company Workbench seek approval to demolish the two buildings, remove trees and other requests. Approval from the planning commission is the next step for the project to move forward. The meeting takes place at 7 p.m. at 809 Center St. in Santa Cruz. 

• Santa Cruz seeks tenant for Colligan Theater: Santa Cruz city officials are seeking proposals for the operation and management of the Colligan Theater at the Tannery Arts Center on River Street. Proposals are due by Feb. 24 and more information can be found here. The 182-seat theater’s current operator, Jewel Theatre Company, will shut down at the end of its 2023-24 season, citing post-pandemic challenges.

Got hires, promotions or departures to report? Send them to news@lookoutlocal.com with the subject line “Career changes.”

Save the date

• Thursday, Jan. 18: The Santa Cruz County Chamber of Commerce holds its annual members breakfast at the Dream Inn. Details and registration here.
• Thursday, Feb. 1: The 2023 annual Titans of Tech event honors the individuals who have contributed to the local tech and entrepreneur community from 6 to 8 p.m. at Kuumbwa Jazz Center. Details and tickets available here.
• Thursday, April 11: The Santa Cruz County Chamber of Commerce will host its annual event honoring individuals, businesses and organizations for their contributions to the community. “A Night of Stars” takes place from 5:30 to 9 p.m. at the Cocoanut Grove Ballroom at the Santa Cruz Beach Boardwalk. Register here.

Add your business or networking events to Lookout’s free public calendar, BOLO. Click here to add your event.

Business news worth reading

• California has dealt a blow to renewable energy, some businesses say (The New York Times)
• “It hasn’t delivered.” The spectacular failure of self-checkout technology (BBC)
• Lessons of resilience and hope at McHenry Vineyard (Edible Monterey Bay)

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