Region Has Regained Pre-Recession Lost Jobs

SAN BERNARDINO, CA—Healthcare-related jobs creating a ripple effect in the San Bernardino economy are partially credited for the area's strong employment comeback in the last two years, economic development agency administrator for San Bernardino County Larry Vaupel tells GlobeSt.com exclusively. US general-aviation aircraft manufacturer Mooney International is growing to more than 153,000 square feet of space for its R&D, design, testing, training and sales at Chino Airport here, and the Texas-based company plans to grow to 150 workers by 2016, a sign of the county's quickly improving economy. Overall, the Inland Empire has returned to its place as one of the fastest-growing economies in the state—San Bernardino and Riverside counties added more jobs year over year 2013-2014 than any other area of California, except for Los Angeles. We spoke with Vaupel about Mooney's expansion and the region's job growth and economic future.

GlobeSt.com: To what do you attribute Mooney's expansion at Chino Airport?

Vaupel: I think that Mooney's expansion has to do with the growth that is occurring in China and the new opportunities that China has given its citizens to own planes and fly at low levels. There's a demand driving personal-aircraft sales in China, so Mooney saw that opportunity and, combined with the fact that they have R&D offices here in Chino, they are growing because of we have the workforce to meet that need. The West Coast has strong ties to Asian and Pacific Rim countries, and that's a strong factor for Mooney. Potential clients of theirs see the airport and facility in close proximity.

GlobeSt.com: Why do you think the Inland Empire led the state in year-over-year 2013-2014 jobs added?

Vaupel: We were among the hardest hit by the recession—we lost more than 140,000 jobs—so we had a lot of work to do just to make up those losses. Over the last two years, we've gained back 100,000 jobs, and over the last four years we have regained all the lost jobs. Health-related and medical services are a big factor in that growth, along with some construction jobs and a lot of transportation/logistics jobs. And, of course, the recovering economy produces demand in retail-trade and food-service accommodations. We're seeing more growth in those areas as well as tourism picking up and disposable income increasing.

GlobeSt.com: What else is helping this region to expand economically?

Vaupel: We're starting to see a nice uptick in the number of small manufacturers who have outgrown their facilities in the coastal regions and are looking to expand and stay in California. Interest is picking up from those manufacturers who want to remain close to their customer base here in Southern California and be close to the ports but have no room to grow in the L.A. or Orange County markets. Vacancy rates in those markets are less than 2%, so these small manufacturers are coming up to San Bernardino County.

GlobeSt.com: What else should our readers know about the region?

Vaupel: Regarding other markets, retail has bounced back very well—we have very low vacancies in the newer retail centers here. We're also finally going to see some new office product come online maybe in 2016 because, while the vacancy rate is pretty high, a lot of that space is very small, so for a big user of 20,000 square feet or more, it's difficult to find that much contiguous class-A office space. San Bernardino is great for back-office space, and the momentum for that will increase over the next nine to 12 months.