San Bernardino County Attracts and Retains Close to 2,500 Much-Needed Jobs for Local Economy; Industrial Sector Leads Region’s Turnaround


    SAN BERNARDINO COUNTY, CALIF. (Nov. 1, 2011) To date in 2011, the County has added close to 2,500 jobs to its local economy, including significant activity from manufacturers. The County is making a case for manufacturing in California, proving its location, affordability, and skilled workforce remain ongoing drivers for companies to locate and expand to San Bernardino County. Some of the top industries that are relocating and expanding locally include plastics, food processing, technology, furniture manufacturing and more.
   
    Job growth comes at an important time for the County and the greater Inland Empire. While still challenging, the good news is that the region's unemployment rate is now moving in the right direction, falling from 13.4% in September, down from 14.1% in August 2011. The Inland Empire, comprised of San Bernardino and Riverside counties, added a net 4,700 jobs in a month when the state of California overall gained 11,800 positions, a figure that represents 40% of the state’s total job gains.
   
    According to market tracker CBRE’s third quarter industrial report, the Inland Empire’s year-to-date gross activity now stands at 23.5 million square feet, with the third quarter adding 9.1 million square feet to the total. Gross activity jumped 49% over the previous quarter, while holding a 23% increase over the same quarter last year. In the West end of the Inland Empire which primarily covers San Bernardino County, leasing activity roughly doubled over the second quarter with 4 million square feet. For third quarter of 2011 per CBRE vacancy in the Inland Empire West is 5.9 % and in the Inland Empire East is 7.2 %.
   
    Some of the County’s largest industrial transactions this year include:
  • Hewlett Packard moving to a total of 1.4 million sf in two buildings in San Bernardino
  • Ingram Micro moving to 562,089 sf in Ontario
  • United Furniture Industries moving to 505,192 sf in Victorville
  • Simpson Strong Tie moving to 396,000 sf in an unincorporated area of the County
  • Amcor Rigid Plastics Inc., moving to 194,340 sf in Chino
  • Parker House Manufacturing moving to 192,637 sf in Chino

    “Trends point to a U.S. manufacturing renaissance. More and more products are going to be made here in the U.S. and as that occurs we believe the County of San Bernardino is well positioned to provide a competitive cost equation when you consider all that this region has to offer,” said Mary Jane Olhasso, economic development administrator, County of San Bernardino.
  
    The County is also focused on creating certainty for businesses that invest in the County. “We’ve been working to create a forward-thinking County Vision that is designed to create a vibrant economy with a skilled workforce that attracts employers who seize the opportunities presented by the county’s unique advantages and provide the jobs that create countywide prosperity,” noted Board of Supervisors Chair Josie Gonzales.
   
    Affordability continues to be an advantage to locating and expanding in the County. CBRE notes that industrial lease rates in the County are lower than coastal Southern California counties. For example, average lease rates for Southern California’s three regions are:
  • Los Angeles County    $0.55 NNN/SF/MO
  • Orange County         $0.50 NNN/SF/MO
  • Inland Empire         $0.34 NNN/SF/MO
    The County’s industrial building stock is also newer on average, by almost three decades. Most industrial buildings in Los Angeles were built in 1969, as compared to the average age of buildings built in the Inland Empire of around 1994. The newer building stock provides flexible and highly-efficient state-of-the-art options for manufacturers.

    Adding to its affordability for business, the region boasts three California Enterprise Zones as well as LAMBRA and Foreign Trade Zones. These districts are particularly beneficial to manufactures thanks to bottom-line oriented State tax credits and benefits, including hiring tax credits and sales or use tax credits, among others. Manufacturers Hayden Industrial Products and Simpson Strong-Tie both recently located to the San Bernardino Valley Enterprise Zone to benefit from lower costs for workforce and product line expansion.
   
    Workforce is another critical aspect to companies choosing to locate and renew in the area. The county workforce population is close to 1 million. The region is uniquely committed to manufacturing education and training with a particular emphasis on STEM (science, technology engineering and mathematics) programs in its K-12 schools and college districts. All told, the County benefits from an innovation corridor of 11 colleges and universities.
   
    Another lucrative training benefit is the County of San Bernardino Workforce Investment Board (WIB). WIB has been an instrumental partner in helping local manufacturers such as California Steel Industries, Inc. (CSI) successfully graduate 34 electricians and 17 mechanics from its craft development program. The in-house program provides on-the-job training and mentoring for employees to become “A” level electricians, mechanics or machinists. Currently, CSI has 43 employees in their training programs who attend classes tailored specifically to their respective trades at Chaffey College and San Bernardino Valley College. Employees from member businesses of the Manufacturers Council of the Inland Empire also attend classes.
   
    “The program began 13 years ago and we’ve been very successful in developing high quality technicians who have become fully qualified craft workers at CSI,” said Brett Guge, Executive Vice President – Finance and Administration at California Steel Industries, Inc.
   
    Location remains a regional strength. The County sits at the heart of a 23 million strong Southern California consumer population. Boston Consulting Group recently reported in its groundbreaking 2011 study Made In America Again, Why Manufacturing Will Return to the US, that companies should should weigh the many intrinsic advantages of locating manufacturing close to consumers, such as the ability to more quickly get products into the hands of customers, replace depleted inventory of popular items and make design changes in response to market trends and consumer demands.
   
    San Bernardino County’s transportation infrastructure includes major interstates, three airports including UPS’ western region hub, two major rail lines and strategic access to the ports of Los Angeles and Long Beach, providing a critical gateway to the Pacific Rim.
   
    The County has a healthy infrastructure due to ongoing local, state and federal investment.The San Bernardino Associated Governments, known as SANBAG, is the council of governments and transportation planning agency for San Bernardino County.  From 2010 to 2011 SANBAG reported that it invested a total of $12.1 billion in completed and ongoing transportation projects to ensure an efficient multi-modal transportation system countywide.
   
    About the County of San Bernardino:  Located at the heart of Southern California, an economy of 22 million people, the County of San Bernardino is the largest county in the United States. Its vast borders stretch from the greater Los Angeles area to the Nevada border and the Colorado River encompassing a total area of 20,160 square miles. Comprised of 24 cities, the County of San Bernardino encompasses more than two million residents with a workforce exceeding 900,000. Its assets include an innovation corridor of close to two dozen colleges and universities supporting a strong, diverse workforce along with an unparalleled collection of roadways, runways and railways that lead to regional, national and international business centers. One of its transportation assets is the Ontario International Airport featuring the western hub for UPS. Visit www.SBCountyAdvantage.com to learn more.