Category: E-Commerce

UPS & Amazon offer huge boost to Visalia Industrial Park

-September 9,2020-

After 2 years of construction activity United Parcel Service (UPS) plans to open their new 450,000sf distribution hub on Plaza at Riggin in the Visalia Industrial Park early next month. UPS spokesperson Kim Krebs says when it opens the “new Visalia package sortation and distribution center will create more than 625 new full-and part-time well-paying jobs.”

Contractors are packing up now after erecting the 88 acre complex that includes several outbuildings, a truck maintenance facility, fuel center, customer service center and entrance station besides the main tilt-up concrete building with its advanced package sorting conveyor system. UPS bought the land in summer of 2017 from CapRock Partners adding 30 acres last fall from the same party. But wait,as they say ..there’s more.

Right next door to UPS there is some surprise news from another mega-shipper. Amazon is the unnamed mystery logistics center that is now under construction with a 1.3 million square ft distribution center of their own – one of their “fulfillment centers” that typically employ 1000 or more. Amazon has not announced the Visalia project but the contractor on the job Gray Construction based in Kentucky is an Amazon contractor and at the job site today.The company secured the city building permit.

Blake Steel with Gray Construction says this will be the third Amazon center he has worked on and says they will be complete in 11 months. Some 300 construction workers will be needed during the busiest months of the Visalia project.

A typical scenario played out in Fresno with the distribution center built and open in less than a year. In Fresno’s case “During peak times, the fulfillment center ships over 1 million packages per day and has created over 3,500 jobs within the immediate area” says a report. If Fresno has one, Bakersfield too now has seen completion of a 4-story Amazon complex near their airport, expected to open September 6,according to the Bakersfield Californian.

The new general manager told the press there “This is one of the most advanced buildings that Amazon has,” he said, adding that the building — four stories, each about the size of 11 football fields — is the company’s 26th “fulfillment center” in California.” Make that the 27th – counting Visalia. Like UPS, Amazon is not just hiring robots to do the work. Amazon has more than 110 active fulfillment centers in the US and more than 185 centers globally. Now we are on the map

Property owner Newport-based CapRock Partners has been working on this 1.3 million “spec building” for over a year and just received City of Visalia approval to begin construction with grading of the empty site starting last week. Electric power to the site for construction is being added this week to the new address- 3315 N Kelsey.The building has a million sf at ground level and a 300,000sf mezzanine.

CapRocks’ President Patrick Daniels said he could not comment who the tenant was for the big building, what will be by far Visalia’s largest – almost 10 Costcos for comparison. Daniels has been working on their 640 acre industrial park – they call it the Visalia Logistics Center – since 2006 when he first visited Visalia drawn by developer Richard Allen and his successful effort to bring in VF Corp to Visalia in 2005. VF, a major local employer, is another big UPS customer who came to town because UPS ships by ground from Visalia to most of California in less time than almost all other competitive locations. Scores of other firms have suggested that is why, they too, chose Visalia.

With the coming of these two new shippers, the City of Visalia already is planning to widen Riggin from Plaza to Shirk in coming months as well as punching Kelsey north that will allow Amazon street access.The Riggin and Kelsey intersection will now be signaled. Riggin is already busy with truck traffic with the new connection to Highway 99 ( Betty Drive Interchange) that fully opened in the past year.

As for jobs at Amazon the Bakersfield location is a close model, offering warehousing jobs paying $15 to start, the company says, and full-time employees immediately qualify for comprehensive health benefits as well as a 401(k) program with a 50 percent company match. Amazon also offers to pay 95 percent of tuition for college courses in in-demand fields, regardless of whether that education relates to their current job with Amazon.

Amazon.com also said last week it received federal approval to establish a fleet of drones and will begin limited tests of package deliveries to customers in the U.S., although a number of key steps remain before widespread use of the technology will be allowed. Besides drones, both UPS and Amazon promises a green fleet of delivery vehicles based in the Visalia Industrial Park.

What will be the impact on government of a new Amazon logistic center here? A summary of Amazon’s 2019 U.S. taxes they reported includes:

•Over $1 billion in federal income tax expense.
•More than $2.4 billion in other federal taxes, including payroll taxes and customs duties.
•More than $1.6 billion in state and local taxes, including payroll taxes, property taxes, state income taxes, and gross receipts taxes.
•Last year alone, Amazon collected and remitted nearly $9 billion in sales and use taxes to states and localities throughout the U.S. The recent enactment of “marketplace laws” by 40 states allows Amazon to legally collect state and local sales and use taxes on behalf of third-party sellers who sell their goods on their platform.

If Amazon is the golden boy company, UPS and their stock has been on a tear recently as well, propelled by a surge in e-commerce activity this year as a result of COVID. UPS stock has doubled since May.

UPS is developing more so-called super-hubs across the US handling more shipments using highly automated technology.The trend is continuing as demand for same-day service accelerates fueled by more internet shopping and door-to-door delivery. The company is gearing up for the holiday shipping season 2020 in Visalia a year earlier than Amazon will do here – for the holiday season of 2021. With all those internet orders a recent analysis expects that e-commerce will require more than 3x the logistics space of brick-and-mortar sales, according to 2019 data.

Global e-commerce sales are projected to more than double to $6.5 trillion by 2023, according to Statista. The Boston Consulting Group estimates U.S. e-commerce sales will double too, to $1 trillion, growing at six times the rate of all retail transactions.

Those projections came before the coronavirus pandemic, which has prompted an explosion in online shopping by people avoiding brick-and-mortar stores because of stay-home orders or fear of being infected by the virus. Best Buy recently reported that e-commerce sales grew 242% from the year-ago quarter and now represent 53% of total sales. VF Corp recently posted e-commerce earnings enjoying a surge as well.

The side-by-side locations of UPS and Amazon in Visalia may encourage a mutual feeding frenzy in our future. Amazon is UPS’ largest customer, accounting for almost 12% of UPS’ $74 billion in revenue last year. Besides taxes, payroll and the job impacts of the double powerhouses of UPS and Amazon, the developments will clearly draw more companies to Visalia say officials. Already 5 more spec buildings are nearing completion within a country block of the two centers.

CapRock itself has 300 more acres just to the north of the Amazon/UPS sites and Fresno developer John Brelsford ,who already has a dozen tenant-filled big buildings in the industrial park, has 150 acres at the NWC of Plaza and Riggin. CapRock too has plans to build another 500,000sf spec building just north of Amazon.

The coming of all this new industry along the city’s northern edge is going to further juice homebuilding in this area and spur other development along Riggin that now ties to Hwy 99 – a continuous 4-lane artery.To the west of Plaza, Brelsford plans several million square feet of new industrial space and sources say Tevelde has long range plans to annex land not yet in the city north of Riggin,plenty more land almost to Hwy 99.

http://sierra2thesea.net/central-valley/double-double-combo-in-visalia

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County of Madera Small Business Pandemic Assistance Grant

PRESS RELEASE
August 5, 2020

The County of Madera Board of Supervisors approved a Small Business Pandemic Assistance Grant program to help support small businesses located in Madera County, including the City of Madera and the City of Chowchilla. The County will partner with the Madera County Economic Development Commission (MCEDC) to disperse over $3.8 Million in the form of small business grants. The County received the funding through the Coronavirus Aid, Relief, Economic Security Act (or CARES Act) from the State of California originating from the United States Government. “This program affirms the Board’s commitment to use available resources to help ensure businesses in the County see a path to recovery from this crisis,” said David Rogers, Board Chairman.

By state mandate many businesses that had just recently reopened were forced to shut their doors for a second time. “Small businesses employ a significant portion of our community, especially in the hard hit sectors like tourism and hospitality. The action taken by the Board of Supervisors will give our local economy a chance to weather this pandemic,” said Jay Varney, Madera County CAO. “So many of our small businesses throughout the County have been devastated by the COVID- 19 Pandemic we felt this was a great way to help them survive during these unprecedented times,” said Bobby Kahn, Executive Director of MCEDC. “It has been the absolute worst nightmare come true for so many industries.”

Eligible businesses with 50 or fewer employees can apply for grants in the amount of $5,000 or $10,000 depending on the size of their business. They will be able to obtain applications by going to mcedccountybusinessgrant.com or call the MCEDC office at 559-675-7768 for assistance.

New Stockton Amazon facility will create hundreds of jobs in SJ region

STOCKTON – There were smiles all around Tuesday as the San Joaquin County Board of Supervisors approved a lease with e-commerce giant Amazon to develop property at the Stockton Metropolitan Airport, creating hundreds of jobs and bringing significant new activity to the region. “This is great for the county, great for jobs and great for the airport’s expansion,” Supervisor Tom Patti said following a presentation of the lease proposal by Airport Director Russell Stark at Tuesday’s board meeting.

Stark said the development is expected to generate 240 jobs for Amazon.com Services LLC, the company that will support Amazon at the airport. Amazon already has several large distribution centers in the region, making it the largest private sector industrial employer in San Joaquin County. The services company will lease 9.569 acres from the county-owned airport in order to build a $10-15 million, 56,000-square-foot building, along with parking for trucks and employees. The building will allow Amazon to more than double the current capacity of cargo that can be processed at the airport.

Amazon began operations there in 2016, using multiple air cargo service providers to transport products to and from it site in a temporary 20,000-square-foot sprung structure. To date, Amazon has moved 205,830 tons through the airport, according to Stark.

The initial term of the lease is five years, with nine five-year options for a total of 49 years providing the airport with $54,187 in annual revenue, or $270,937 over the first five-year period. The agreement includes a 5% escalator every five years until year 21, and, if the options are exercised, a fair market value assessment will be conducted and the rent will be adjusted according to the assessment findings. In addition, the airport will see an estimated $300,00 in annual revenue generated through increased fuel flowage fees and landing fees. The future calls for expanding daily aircraft capacity to eight large cargo jets.

https://www.recordnet.com/news/20200722/new-stockton-amazon-facility-will-create-hundreds-of-jobs-in-sj-region

Amazon may hire more than 3,000 people in Kern

A local college official says Amazon is looking to hire more than 3,000 people — three times the total required under a subsidy agreement worked out with Kern County officials — to work full- and part-time at a large distribution center the e-commerce giant expects to open this summer just north of Meadows Field Airport. Amazon has never specified publicly how many jobs total it expects to create at the warehouse. The company didn’t immediately respond to a request for confirmation of the estimate included in a blog post Sunday by Bakersfield College President Sonya Christian.
Christian’s blog announced the college’s Student Employment Office has partnered with the company to host a series of four virtual job-recruitment events. The first two of the one-hour Zoom events are set for 10 a.m. and 3 p.m. Wednesday, with the rest scheduled for exactly one week later. Christian wrote that Amazon representatives will provide step-by-step information about how to apply for a job at the warehouse and what are its requirements, expectations and benefits packages. Job applicants may pre-register online for the recruitment events at https://www.bakersfieldcollege.edu/event/amazon-day.
Amazon has already started hiring upper-level jobs to work at the distribution center, which will also be staffed by robots. The company has advised job-seekers interested in working at the new building to check its hiring website, amazon.com/jobs. It said the best way to get updates is to text “amazon” to 77088. Kern’s Board of Supervisors agreed in 2018 to give Amazon $3 million in local tax rebates in exchange for employing 1,000 county residents at an average wage of $31,000 per year at the distribution center. The subsidy package would award the company annual refunds totaling about $287,000 for more than a decade.

Supply Chain Breaks Put New Spotlight on Central Valley’s Potential

Supply chains being spread thin or broken entirely by the coronavirus pandemic have brought new scrutiny to inland California’s industrial market. Along with other inland hub markets like the Inland Empire and the Pennsylvania I-78/81 corridor, the Central Valley may benefit from a surge in business inventories and re-shoring spurred by companies’ reactions to the coronavirus, CBRE concluded in a recent report. Courtesy of CBRE Eastgate Business Park in Tracy, Calif. As more manufacturers, wholesalers and retailers opt to store materials and inventories closer to consumers, space for all those goods is in high demand.

Suppliers will likely gravitate toward inland markets as opposed to space-limited and expensive seaport-adjacent markets, according to CBRE, which also points to e-commerce’s continued growth as another likely boon for the sector. “It’s really securitization of the supply chain and avoiding supply chain disruption,” said CBRE Executive Vice President Thomas Davis, who leads the company’s Central Valley Industrial Practice group.  “It has performed very well, and we expect it to perform very well going forward,” Davis said of the Central Valley’s industrial CRE market. In its report, CBRE said the pandemic has highlighted how quickly issues can arise with just-in-time production networks, reversing a decades-long downward trend in inventory-to-sales ratios. Such a reversal could cause industrial demand to surge in inland hub markets, CBRE Research said, projecting a 5% increase in business inventories that require 400M to 500M more SF of warehouse space.

Last month, Colliers International Senior Vice President Gregory Healy, an expert in location strategy and supply chains, said he expects a push for supply chain resilience to result in demands for 750M SF to 1B SF of industrial space in the U.S. alone. Central Valley industrial CRE is likely moving forward from an already strong starting point. As in Southern California’s industrial markets, the region has continued to see deal flow despite the pandemic, Lee & Associates Senior Vice President and Central Valley industrial broker Jim Martin said.  Leasing and investment sales have stayed on track, according to Martin, who said he thinks there will probably be an increase in warehouse and distribution in the region as companies look to increase inventories. “The Central Valley will continue to see migration/expansion from the Bay Area given the availability of land, labor and transportation,” Martin said in an email. Martin, who just worked with Nearon Enterprises on acquiring the 155K SF Eastgate Business Park in Tracy, California, said deals like that one represent a telling commitment to the Central Valley. That industrial purchase was Nearon’s first in the Central Valley, according to Martin, though Nearon didn’t immediately respond to a request for confirmation.

https://www.bisnow.com/san-jose/news/industrial/californias-sprawling-central-valley-poised-for-industrial-boom-from-new-supply-chain-needs-104763

Port of Stockton operations not crimped by COVID-19 pandemic

California’s largest inland seaport, the Port of Stockton, is open and operating normally, officials say, although some measures are in place to prevent the spread of the virus that causes the COVID-19 illness. “The Port of Stockton’s priority is to ensure the health and safety of all Port stakeholders; to date, the Port of Stockton’s ability to support our business partners has not been impacted by COVID-19,” says Port Director Richard Aschieris.

https://files.constantcontact.com/2cb20f61601/2f931797-fd73-4394-b999-f3037480f26c.pdf

Amazon, Save Mart hiring in Patterson, Modesto amid coronavirus pandemic

Amazon plans to hire 800 workers for its Patterson and Tracy warehouses, a spokesperson said Tuesday, to help meet increased demand during the coronavirus pandemic. The temporary jobs are among the 100,000 nationwide openings Amazon announced Monday, the same day Modesto-based Save Mart Cos. said it expects to hire nearly 1,000 employees in California and Nevada.

https://www.modbee.com/news/coronavirus/article241275246.html?

Valley fans crave cookies, company expands

Massive chocolate chip and churro cookies are baking all afternoon long at Crave Cookie’s new kitchen. “With the demand, we were able to keep hiring drivers, keep adding more zip codes. We moved to a bigger, more centralized kitchen in a better area for delivery zones, and we’re able to keep going.,” said co-owner Shandi Scrivner. Crave gave Action News a sneak peek inside their recent expansion as they try to keep up with customer demand. The company receives orders online and delivers them fresh to your door.

Fresno County is rated No. 1 in the nation in agricultural production

It’s begun. That shaking is the sight and sound of almond harvest in the Sacramento Valley. Almonds are one of the state’s biggest crops. This video is from Jim Morris at a Yolo County farm. The agricultural championship has returned to Fresno County. For the first time since 2013, Fresno County leads the nation in agricultural production.https://www.fresnobee.com/news/local/article235943027.html