Category: Logistics

Amazon acknowledges construction project north of Bakersfield

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20190707-bc-7thStandard
In this July file photo, construction continues at the Amazon “fulfillment center” along Merle Haggard Drive.

When Amazon was trying to get approval to build a massive distribution center next to Meadows Field Airport, the company’s approach was so stealthy that senior Kern County officials reviewing its permit application did not know they were actually dealing with the Seattle-based e-commerce giant.

Even after county officials told reporters one year ago this month that Amazon was coming to town, the company known for its secrecy chose to remain publicly silent about its plans for Kern.

All of that ended with an email exchange Thursday.

“Amazon absolutely acknowledges this project,” spokeswoman Shevaun Brown wrote to The Californian, “but we do not have any new information at this time.”

She was unable to provide a projected opening date or a time when the company will begin hiring people to work at the four-story building that has been under construction since October along Merle Haggard Drive. But she did confirm some details that have already been reported, clarify a misperception and fill in some important blanks.

The company, Brown noted, intends to employ 1,000 full-time, full-benefit jobs when it opens the building, which she said measures 640,000 square feet.

That last detail comes as something of a surprise. Several people have estimated the building’s size at 2.6 million square feet. But that assumes each of the four floors will offer the same amount of floor space, which apparently it will not.

County records suggest the building will house robots that will assist in the distribution process. Their towering presence will reduce the amount of interior floor space considerably. But it is still a massive building and one of the largest in Kern County.

Most of the jobs there will support “order fulfillment,” Brown wrote: “picking, packing and shipping items to customers such as books, small electronics, school supplies and home goods.”

She said there will also be jobs supporting the building operations in the areas of human resources, information technology and management.

Employees at the site will earn a minimum of $15 per hour and have access to comprehensive medical, vision and dental insurance “starting on day one,” Brown wrote.

They will also be able to enroll in a retirement savings plan, a program allowing employees to share their paid leave with their spouse or partner, and prepaid tuition covering 95 percent of the cost of courses related to in-demand fields “regardless of whether the skills are relevant to a career at Amazon,” she added.

Although she was unable to state when the plant might open for business, she did say hiring typically begins one to two months before operations commence — and that this launch typically takes 18 months to two years after the project is announced.

This timetable could suggest the building will begin distribution work sometime between February and August of next year.

The email exchange concluded with an implicit call for patience on the part of job-seekers.

“Even though a building may look finished on the outside,” she wrote, “we’re likely still constructing the different floors, etc.”

https://www.bakersfield.com/news/amazon-acknowledges-construction-project-north-of-bakersfield/article_91f52e16-ba3e-11e9-aacd-d3c1350830ef.html

HILTI GETS BIGGER HOME IN VISALIA FOR FUTURE GROWTH

Visalia Mayor Bob Link, in the white shirt, shakes hands with Hilti, Inc. employees following a ribbon cutting at the company’s new, larger distribution center at the Visalia Industrial Park. Photo contributedåç

Published On June 20, 2019 – 3:12 PM
Written By David Castellon

If you aren’t in the business of constructing homes, commercial buildings or other structures, chances are you never heard of Hilti.

But in Visalia, the Luxemburg-based maker of professional-grade power tools and other construction products has made a name for itself over the past 24 years as a business and employer in the Visalia Industrial Park.

Now, the company is expanding its presence, having leased a newly-built, 166,000-square-foot building to house its West Coast distribution and Value-Added Service centers.

On Wednesday, the new facility at 4630 N. American St. was opened to local business people and dignitaries for a ribbon-cutting ceremony conducted by executives from Hilti, Inc. — the company’s Oklahoma-base U.S. division — and Visalia Mayor Bob Link.

The Visalia distribution center is the largest of 12 Hilti distribution centers in the U.S. and Canada, covering the West Coast and Pacific Rim.

Among the tasks performed at the Value-Added Service Center are assembling prefabricated parts installed with new walls to prevent the spread of fires and equipment to mount lights and heavy equipment to ceilings.

The European company has eight factories around the world, making tools mostly for commercial-builders, but some Hilti products can be found at Home Depot hardware stores and at about 100 Hilti stores in the U.S.

Hilti vacated two smaller buildings in other parts of the Visalia Industrial Park — which combined offered about 65,000 square feet of space — to move into the new building. Staff, work spaces, inventory and supplies occupy only about two thirds of it, said Patrick O’Connell, vice president of logistics for Hiliti, Inc.

He said sales for the company are on the rise, particularly in the U.S., so moving to a larger building is intended to prepare for growth.

Currently Hilti employs 30 people in Visalia, both at the new building and at a separate tool repair center also in the Industrial Park. While there are no immediate plans to expand that staff, there now more than 50,000 square feet available to make room for added hires and equipment in the future if the growth continues, as expected, O’Connell said.

https://thebusinessjournal.com/hilti-gets-bigger-home-in-visalia-for-future-growth/

New logistics center will bring 25 jobs to county

An Israeli company has announced that it will bring 25 new jobs to Oildale. On Monday, the company, Hadco Metal Trading Co., hosted a groundbreaking for a 250,000 square foot logistics center planned to be located near Meadows Field Airport.

“Kern’s thriving logistics and transportation industry is attracting international and national attention to our area,” Supervisor Mike Maggard said in a statement on Thursday. “Kern County and our private sector partners will continue to build upon this excellent news of providing jobs and economic growth.”

Hadco said in a release that it would invest $25 million in the new center, which will be used to distribute metal products to customers located throughout California and the surrounding regions.

“Hadco intends to make further investments in order to further expand the capacity of the plant and increase hiring,” the company said in a news release.

The company currently operates five logistics centers throughout the United States, employing about 150 Americans.

Hadco services machine shops, fabricators and equipment manufacturers. Its main hub is located in the Philadelphia region.

It is unclear what kind of jobs will be available at the new center, or what the timeline is for construction.

The company expects to receive four-to-five trucks carrying materials from suppliers at its Bakersfield facility, and send two to three trucks loaded with materials out each night to transfer stations and customers north and south of the city.

The logistics center will be located in the vicinity of the new Amazon facility currently under construction that is expected to bring 2,000 jobs to the county.

https://www.bakersfield.com/news/new-logistics-center-will-bring-jobs-to-county/article_ad1cac7a-7dba-11e9-b593-8322a6994705.html

Prism Logistics adds another Central Valley warehouse

 

CVBT 5/22/19

  • It is its fourth Stockton facility
  • Now operates 1,600,000 square feet

Following closely on its announcement of a third facility in Stockton, Prism Logistics of Danville says Thursday that it has opened a fourth facility in the inland port city.

“The lower cost of real estate in California’s Central Valley is particularly attractive for our growing consumer product goods customers. And we’re happy to invest in controlled, steady growth to support their success,” says Jeremy Van Puffelen, vice president of business development for Prism Logistics.

This acquisition brings the Northern California third-party logistics provider’s total capacity to 1.6 million square feet of food-grade, safety-certified warehouse capacity. Prism operates eight facilities throughout Northern California and convenient to port, rail and highways serving the entire major metropolitan region and international gateway.

The company’s facilities are in Hayward, Sacramento, Stockton, Modesto and Livermore.

Prism did not identify the seller or the financial terms of the deal.

https://files.constantcontact.com/2cb20f61601/e36c8322-3f05-4d58-9ac8-b9a1027da26d.pdf

NEW STATE GROUP TO PROMOTE OPPORTUNITY ZONES

image via caloz.org

image via caloz.org

Published On March 25, 2019 – 11:58 AM
Written By The Business Journal Staff

A new California organization has been formed to help investors and developers take advantage of federal Opportunity Zones.

CalOZ “will promote competitive, equitable and sustainable Opportunity Zone investments in California,” according to a release from the organization.

“Our state must embrace new strategies to rebuild an upward economy that works for all Californians,” said Kunal Merchant, president and Co-Founder of CalOZ. “Opportunity zones offer an important new tool, not only to promote economic mobility and the green economy in areas of our state that need it most, but also to re-evaluate and re-imagine how business, government, and community work together to foster a more competitive, equitable and sustainable economy in California.”

In President Donald Trump’s 2016 Tax Cuts and Jobs Act, he outlined what was labeled Opportunity Zones, which offered tax breaks on capital gains for investments in distressed areas.

In Fresno, a number of the areas were established, including the Kings Canyon and Blackstone avenue corridors.

On average, Opportunity Zones have a poverty rate of nearly 31 percent with families making 59 percent of the median income for the area, according to the release, citing information from Economic Innovation Group.

“Opportunity zones offer an intriguing new pathway for our state to expand our middle class and restore the California Dream for all residents,” said Ashley Swearengin, Central Valley Community Foundation’s CEO and former Mayor of Fresno. “I’m thrilled to see CalOZ showing leadership on this issue and excited to support their work both in the Central Valley and state as a whole.”

CalOZ’s first priority will be coordinating with the state to create “high-impact” policies in addition to the ones being offered by the federal government. The plan is to create a “triple-bottom line mindset” for social, environmental and financial opportunities, according to the release.

“With more than three million Californians residing in opportunity zones, California can and must seize the chance to deploy an unprecedented source of private capital into the communities that need it most, “ said Jim Mayer, President and CEO of California Forward. “We’re proud to partner with CalOZ to support state and local action to ensure California emerges as a national leader in this program.”

The U.S. Department of the Treasury certified more than 8,700 qualified areas throughout the country. Of those, California has around 10 percent within its boundaries. And Fresno County is ranked third in terms of having the largest designated Opportunity Zones, according to Merchant.

Those designations will last through the end of 2028.

New state group to promote Opportunity Zones

How to Meet Workforce Demands? Duncan Poly Leads the Way.

For years, there has been a nationwide shortage of workers in vocational and technical careers, largely caused by society adopting a more college-going culture.

According to Adecco, an estimated 31 million career tech jobs will be left vacant by the year 2020 due to Baby Boomer retirements.

Portrait of Bob Nelson

“This is a once-in-a-lifetime opportunity for the city of Fresno and the Central Valley. If this is the thing of stuff to come, I am incredibly proud of this start.” — Bob Nelson, superintendent of Fresno Unified

Fresno Unified, the fourth-largest school district in California, is working to change the narrative of career tech and the looming worker shortage.

The district showcased its efforts last Thursday with an open house displaying $12 million worth of improvements to CTE facilities at Duncan Polytechnical High School.

New Heavy Trucks Facility

Perhaps the biggest upgrade is a new, 10,000-square foot heavy trucks facility large enough to fit eight semi-trucks.

“It’s the first of its kind in the nation,” said Vanessa Ramirez, Fresno Unified’s public information officer. “The facility provides the most modern equipment for preparing students for jobs in the Valley’s growing transport industry.”

Ramirez said students in the school’s heavy truck maintenance and repair program will utilize the facility. To ensure it met the needs of employers, Fresno Unified worked closely with industry partners on designs, she said.

This Has Been Needed For a Long Time

Hugo Rodriguez, the service manager at Fresno Truck Center, hopes the new facility is the first of many local high schools will construct for students.

“It is 20 years (late), but it is a great start,” Rodriguez said. “I am anxious to see what kind of kids we can get out of the program.”

Rodriguez said he’s also concerned about how many students he can get to fill vacant positions.

“The trades died out of the high schools years ago, and we’ve struggled for years finding technicians to come in and fill the voids,” Rodriguez said. “This facility is definitely needed.”

The district also expanded Duncan’s existing facilities in manufacturing and construction technology, automotive, welding and fabrication.

Students Give Thumbs-Up

To fund the work, the district utilized $7 million from Measure Q — a $280 million bond measure passed in 2010 — along with $5.2 million from a California Career Technical Education Facilities Program grant.

“In addition to better serving the Duncan students we already have, we absolutely expect attendance will grow from here for all of our Duncan pathways.” — Amy Idsvoog, Fresno Unified’s interim chief information officer

With the new improvements, Josiah Montijo said he’s not worried about whether he’ll be adequately prepared for a career in programming.

“(The improvements) will prepare you for your career or for any job you are trying to go into,” said Montijo, a senior in the school’s manufacturing pathway. “I don’t think I would be as prepared if I didn’t come to Duncan.”

Nathaniel Martinez said the new and updated facilities will definitely help him expand his knowledge in Duncan’s construction pathway.

“Previously, we were working in little portable classrooms and using the construction site that we already had to do anything that we needed,” said Martinez, a junior. “This new building is going to help us expand out more and attract new students.”

Return On Investment

There are 1,048 students at Duncan. Amy Idsvoog, Fresno Unified’s interim chief information officer, said the district is hoping the new improvements will help increase enrollment to 1,400 students in the next three to four years.

Seeing the new equipment and taking in the aroma of gas and oil reminded Trustee Veva Islas of the days she spent with her father, who was an agricultural mechanic.

“(My father) would have been so excited to have been a student here,” said Islas, who represents the area in which Duncan is located. “I am excited for those that are going to have the opportunity to come to this program, and just really have a fantastic experience.”

“I think the improvements are incredible. I think we should duplicate it in other areas.” — Brooke Ashjian, former Fresno Unified trustee

Once-In-a-Lifetime Opportunity

With all the new upgrades, Esli Cardenas said she is confident she will develop the skills necessary to land her dream job at Vanir Construction Management.

“It will definitely help me in the future, and hopefully I can start my own private business and build companies and more buildings like what we have here,” said Cardenas, a senior in Duncan’s construction pathway.

Superintendent Bob Nelson said the new facilities at Duncan is about opening doors.

“This is a once-in-a-lifetime opportunity for the city of Fresno and the Central Valley,” Nelson said. “If this is the thing of stuff to come, I am incredibly proud of this start.”

More CTE in the Pipeline

Former Fresno Unified trustee Brooke Ashjian was instrumental in boosting career technical education during his four years on the board. Seeing his vision come to life at Duncan, he said, is satisfying.

“I think the improvements are incredible,” Ashjian said. “I think we should duplicate them in other areas.”

That’s just what Fresno Unified plans to do, Idsvoog said.

The district, she said, has been approved for state grant funding, requiring a local funding match for CTE facilities at Fresno, Hoover, and McLane high schools.

Idsvoog said the district has also applied for funding for CTE facilities at Edison and Sunnyside high schools.

Such projects, Idsvoog said, are pending future board approval. She said the local match would likely come from Measure X construction bonds.

https://gvwire.com/2019/03/25/how-to-meet-workforce-demands-duncan-poly-leads-the-way/

Remote workers and super commuters are on the rise – and they probably make more than you

FOR SECOND TIME IN SIX MONTHS, TRCC SECURES LEASE WITH COMPANY RE-LOCATING FROM LOS ANGELES

TEJON RANCH, Calif.–(BUSINESS WIRE)–Feb. 14, 2019– Tejon Ranch Co. (NYSE: TRC) today announced that it has agreed to terms on a lease with a company that will relocate its western US distribution operations from the Los Angeles area to the Tejon Ranch Commerce Center (TRCC) in the fourth quarter of this year. The company, which wishes to remain anonymous for the time being due to competitive reasons, will occupy approximately 390,000 square feet of space in a new 580,000-square-foot building TRC is developing in partnership with Majestic Realty Co. The new building represents the third partnership between TRC and Majestic Realty. Construction has commenced, and the building will be ready for occupancy in approximately eight months.

“This decision to move its western distribution warehouse from the Los Angeles area to TRCC underscores Tejon Ranch’s value as a proven and opportune place for companies wanting to locate and/or expand in California,” said Joseph N. Rentfro, executive vice president of real estate at Tejon Ranch Co. “Coming on the heels of L’Oréal USA’s decision last fall to move its professional salon distribution subsidiary, SalonCentric, from its Valencia facility to Tejon, it reinforces our location as a place where companies find great value in our compelling logistics model, our outstanding labor force, and where they have opportunity to grow and expand.”

“Majestic Realty is extremely pleased the partnership has been able to pre-lease a large portion of the new building we’re developing in partnership with Tejon Ranch Co.,” said Brett Tremaine, senior vice president at Majestic Realty Co. “Working in Tejon Ranch, the time required to deliver a building ready for occupancy is as efficient and expeditious a process as you’ll find anywhere in the state, and perhaps the country. And with L’Oréal, and now a second company moving up from Los Angeles, we believe many more companies currently located in the Los Angeles basin will want to avail themselves of the Tejon Ranch Commerce Center’s strategic location at the southern gateway to Kern County.”

“It makes perfect sense for growing companies located in Los Angeles to consider relocating operations to Tejon Ranch,” said John DeGrinis, SIOR, executive managing director of Newmark Knight Frank, who represented TRCC and the other party in this transaction. “As available space is at a premium in Los Angeles–and commanding premium prices–Tejon Ranch represents an attractive alternative for companies needing additional space and seeking value for their businesses.”

“TRCC’s central location with direct access to Interstate 5 allows companies to get their goods to market easily and quickly,” Rentfro added. “In addition, employees and professional drivers have access to a wide variety of adjacent amenities. And with total operating costs among the lowest in the state, TRCC gives companies opportunities to take their distribution operations to the next level.”

This newest tenant at TRCC imports goods for sale throughout the US and beyond and will therefore have opportunity to take advantage of TRCC’s status as a Foreign Trade Zone. All industrial sites within TRCC, totaling nearly 1,100 acres, are included in FTZ #276, which was re-established and expanded last year by the U.S. Department of Commerce in conjunction with Kern County. FTZ #276 is locally administered by the County of Kern and is one of the largest activated FTZs in California.

The Tejon Ranch Commerce Center is Tejon Ranch Co.’s 1,450-acre master planned commercial/industrial development located at the junction of Interstate 5 and Highway 99 in Kern County, about an hour north of the Los Angeles basin. It’s entitled for more than 20 million square feet of commercial and industrial space, with about 15 million square feet still available. In addition to the previously mentioned L’Oréal USA, the Commerce Center is also home to major distribution centers for IKEA, Famous Footwear, Dollar General (NYSE: DG), Vision Media and Caterpillar Inc. (NYSE: CAT).

http://tejonranch.com/for-second-time-in-six-months-trcc-secures-lease-with-company-re-locating-from-los-angeles/