Reshoring of Manufacturing Jobs Drives IE Growth

INLAND EMPIRE, CA-A number of economic factors are making the Inland Empire a powerful force in manufacturing that is helping to brighten the employment scenario in California. GlobeSt.com spoke with Kelly Reenders, economic development agency administrator for the County of San Bernardino, who is moderating a panel discussion on end users at RealShare Inland Empire next week, to discuss some of these factors and what public agencies can do to encourage and support private-sector investment.

GlobeSt.com: What makes the Inland Empire a strong investment destination?

Reenders: Many factors make the Inland Empire a strong choice for investment. We have a larger depth of new, modern industrial facilities, at competitive industrial rates that are better designed to meet the demands of today's industrial tenant. We also have the affordable land that can continue to support new build-to-suit and spec development. The region is at the heart of a 24-million Southern California population—which is important to major firms that need to be close to their customer base. The County of San Bernardino has a skilled workforce of 900,000, so our labor base has been a lucrative and highly sought-after asset to the area. This has been especially valuable for logistics and manufacturing firms with skilled-worker requirements.

Our location and transportation infrastructure has been a strategic advantage in encouraging tenant expansion and relocation. Our freeway, rail and airport systems are designed to move goods quickly and efficiently. Plus, we are close enough to the Ports of Los Angeles and Long Beach to make truck travel economical.

These factors, among others, continue to drive investment and growth from major Fortune 500 firms such as Amazon, Nordstrom, Target, Kohl's, Mattel, Pep Boys, Kohler Faucets, Cott Beverages, Home Depot and Staples, among others.

GlobeSt.com: What trends are driving new investment and job growth in the region?

Reenders: We see a number of important trends driving investment and job growth in the region. For example, Ontario, CA-based Trident Case announced plans in 2013 to move more of its manufacturing to the US from China. The firm acquired a 42,000-square-foot manufacturing facility in Rancho Cucamonga for expansion. According to Boston Consulting Group, it's no secret we're experiencing a reshoring of manufacturing jobs and operations once sent overseas to China, return to the US. BCG notes that soaring wages in low-cost countries and rising shipping, rail and road coasts are just some of the factors causing manufacturers to consider reshoring. In Trident's case, proximity to customers and product quality control drove some of their decision.

We're also seeing a major impact from e-commerce. While retail is experiencing changes to their traditional brick-and-mortar operations due to e-commerce, the service and delivery model to support e-commerce is changing industrial building demand, transportation options and logistics and inventory systems. That's why the County is investing in its transportation infrastructure, to support this ongoing demand. It's also why firms such as Amazon are investing so heavily in new buildings and adding workforce.

GlobeSt.com: What can a public agency do to encourage and support private-sector investment?

Reenders: Over the last few years, the County has been working to implement a Countywide Vision. This is important to business for a number of reasons. The vision is designed to encourage collaboration, public/private partnerships and transparency across government operations as well as encourage an efficient use of County resources. Some of the applications include reviewing how we handle development and planning as well as how we can fast-track the kind of development needed to enhance our residents' quality of life and promote job creation.

Public agencies can make or break a new development project. We are focused on creating certainty for the users, developers and owners who are looking to invest in the region. Moreover, we are a ready resource for site selection services and workforce training and recruitment. We always encourage the real estate and business community to meet with us to see if there are ways we can help.