Consider Martec Construction a casualty of the pandemic.
The Granada Hills contractor – which specializes in tenant improvements on commercial buildings for the federal government, public works agencies and the private sector – has been forced to shutter due to macroeconomic forces.
“The last few years were difficult with COVID becoming a reality,” Martec owner Raja Marhaba said. “Thank God my construction company was considered essential. The expense in running the business with respect to the increase of cost to comply with the CDC and state requirements, workers’ comp, COVID regulations, shortage on inventory and material, the high cost of material, paying employees for two weeks to quarantine, so on and so forth makes it difficult to run a small business.”
Marhaba could have kept going with more projects, but she closed down Martec Construction in December.
“I was offered to renew our federal contract five years ago for an additional five years and I declined,” she said. “I am happy I did now that I see what is happening to our economy.”
Marhaba, who appeared on the Business Journal’s Valley 200 list of influential people last year and who served as secretary of San Fernando Valley Political Action Committee, will relocate to Arizona in June after her house there, which is currently under construction, has been built. Her two adult sons will remain in California, where they are renting out her house.
“It makes better financial sense for me,” she said. “This move will help me work less hard and enjoy life versus the business running me – working smarter, not harder.”
In Arizona, there are less state taxes and houses are cheaper.
“I made a tough decision but I think I’ve made a good decision,” she said.
Her future endeavor will be to grow her non-profit Jonathan Foundation for Children with Learning Disabilities, inspired by her sons, who grew up with ADHD and dyslexia.
“I plan on working with special needs families in both California and Arizona,” she said. “I am already working with families in Nebraska, Seattle, Wisconsin and Nevada. I will continue having my fundraisers in Los Angeles because I have a pretty good following, and I am grateful for that. I am currently working on preparation for the fundraiser on May 21 at Our Lady of Angeles Cathedral.”
For 30 years, Martec Construction fulfilled contracts for the General Services Administration, with clients including the FBI, Department of Homeland Security and IRS.
“GSA has been very good with us,” Marhaba said. “We’ve been able to work for over 30 years. But to do business right now is more difficult than 20 or 10 years ago.”
Marhaba isn’t alone in moving out of state. A study in August by the Hoover Institution at Stanford University found that during the first half of 2021, a total of 74 companies exited the state, compared to 62 in the entire previous year. Los Angeles County was the top county for fleeing businesses.