Kern looks to seize economic benefits of carbon management

Momentum is building in the push to make Kern nationally competitive in carbon management, the emerging field of trying to slow climate change by removing or reducing greenhouse gases. The most ambitious project, now wrapping up initial design work and heading into permitting early next year, could put the state’s first carbon capture and sequestration project at the Elk Hills Power Plant in western Kern. Alternative fuels projects underway locally are also part of the county’s carbon-management portfolio, and agricultural land in the region could play a role as well. There’s also hope the county’s renewable energy portfolio will help it land investments in hydrogen fuels.

Lorelei Oviatt, the county planner spearheading the effort, sees the carbon-management industry as being in its infancy, much as renewable energy was when Kern embraced that field and became a leader in the state through a focus on permitting efficiency. Since the county Board of Supervisors voted early this year to add the field to its list of industries worthy of subsidy supports, Oviatt has begun working to understand environmental impacts of such work and ways of possibly cushioning them.

Oviatt sees a wealth of opportunities, based on a number of local strengths — a workforce well-suited to industrial labor, chemical safety expertise and proximity to renewable energy in the form of eastern Kern’s solar and wind farms. Another advantage is Kern’s inventory of open land. “When it’s time to build it, are you building it in San Jose? Are you building it in Santa Monica? No,” she said. But Oviatt has also identified local competitive disadvantages. Technologies dependent on ample water access probably won’t work locally, she noted, and Kern’s biggest competitor, Texas, doesn’t have to deal with an expensive state environmental review process that takes a year and a half.

Having become somewhat disillusioned by solar projects that have yielded little revenue for county government and only modest employment opportunities, she said her goal is not simply to prioritize large investments. Rather, it is to attract good-paying jobs and tax income to help make up for economic and financial losses expected to result locally from Gov. Gavin Newsom’s anti-oil policies. Because of carbon management’s environmental promise, it’s possible Sacramento’s goal of making California “carbon neutral” by 2045 may yet be of some benefit to Kern.

A report released in January by the Lawrence Livermore National Laboratory concluded the state can achieve that goal by burying or offsetting 125 megatons per year of carbon dioxide. It also pointed to a significant role for Kern. In addition to outlining land management practices and waste material processing, Livermore recognized local oil formations’ vast geologic capacity for permanently storing carbon dioxide. One such project, California Resource Corp.’s “CalCapture” initiative, is scheduled for a county environmental review in the first quarter of next year. The company hopes to see it operational by mid-decade.

The project is not intended to vacuum CO2 out of the atmosphere — an expensive and energy-intensive process that may eventually figure into the local economy. Rather, CalCapture would remove a large share of the compound from the emissions stream of CRC’s 550-megawatt Elk Hills Power Plant in the Tupman area. Early estimates were that the project, one of nine to receive recent financial support from the U.S. Department of Energy, would process 83 percent of the emissions from the plant’s chimneylike flue. Of that, 90 percent of the CO2 would be captured, trapped deep underground, and be used to displace oil and extend the life of the prolific Elk Hills Oil Field.

CRC said by email CalCapture is expected to generate nearly 3,500 jobs statewide and more than $200 million in taxes during its three-year construction period, plus 150 permanent jobs and $200 million in taxes over 20 years. “We are excited to advance this pioneering project that will make Kern County and our state a leader in CCS (carbon capture and sequestration) technology,” the company said.

Expanding on what carbon management might ultimately mean for the county, Oviatt noted that farmland can be used to manage carbon, too. That may involve transitioning to different crops, she said, or working with agricultural properties that might have to be taken out of production because of upcoming groundwater restrictions. Local production of alternative fuels can be considered carbon management, too, and that’s already happening, with more to come.

At least two local refineries — Kern Oil & Refining Co. and Crimson Renewable Energy LLC — produce renewable diesel in significant quantities. Crimson makes a biodiesel that can be stored in conventional fuel tanks and releases 80 percent less carbon. Also, this year it was announced a Torrance-based company had bought the former, 67,000-barrel-per-day refinery on Rosedale Highway. It said it plans to spend $365 million reopening the plant by early 2022 with about 100 employees producing 10,000 barrels per day of biodiesel from cooking oil. Later, it wants the refinery to make the product from a ground-cover plant called camelina.

Hydrogen energy is another aspect of carbon management that Oviatt said might hold promise locally. It’s a complex technology that can take many forms, she said, with one important requirement that the energy involved come from renewable energy, which Kern makes a lot of.

One advantage Kern has in that regard is a new partnership between Bakersfield College and the National Renewable Energy Laboratory, which Oviatt said is on the very cutting edge of carbon management. That partnership, she said, represents an “absolute new future for us.” “To have them here gives us national and international exposure,” she said.

Nautilus: transforming the data center industry

Nautilus Data Technologies is a global pioneer in water-cooled data centers and is leading a global transformation to ultra-efficient, high-performance and environmentally sustainable operations in the data center sector.

James Connaughton is the CEO at Nautilus. Having joined the organisation in March 2016, he has overseen the implementation of the world’s first water-cooled and water-borne data center with Nautilus. “There are two essential features,” explains Connaughton. “The first and most important feature is cooling with naturally cold water, which is how all other major infrastructure sectors address the large amounts of heat generated by their systems. These include, for example, thermal power plants, ships, industrial processing facilities, and paper mills. Only data centers, generate heat at a similar industrial scale, still use massive and unsustainable air-cooling systems. The second feature is mobility–the ability to prefabricate the data center in large modules, and either assemble them onto a barge and deliver it fully ready to go, or transport the modules to a prepared site for rapid assembly. Placing essential infrastructure on barges—such as energy barges and water treatment barges–is a well-established model for enabling rapid and flexible access to such infrastructure in fast growing and emerging markets. The opportunity and need is equally strong today when it comes to providing access to digital infrastructure to those who currently lack it.”

Connaughton believes data centers are the newest and most important component of critical infrastructure that sustains and enriches the lives of people around the world. “Data centers now stand alongside power generation, drinking-water plants, waste-water plants, roads and other critical infrastructure that allows society to function and create good outcomes for people,” he explains. “Access to the water molecule and the electron has long been vitally important. Worldwide access to the photon for data delivery is the next essential piece.” Over the past two years, Connaughton has overseen the development of the company’s first full-scale commercial facility, which provides six megawatts of water-cooled data center capacity on a barge. He strives for an innovative approach across all his operations. “We’ve been on the arc of creative invention and cleverly practical engineering to make that a reality,” says Connaughton. “The first part of our company’s life has focused on building a functional prototype, and then using that experience to make the thousands of decisions of what not to do against the several hundred decisions of what to do in bringing a full scale facility into being. We’re really excited to be commissioning that data center in California in just a few weeks time.”

Nautilus is planning to develop facilities in North America, Europe and Asia, and has been contacted by potential partners to pursue projects in the Middle East, Africa, and South America. “Once our data center in North Carolina is up and running, we look forward to onboarding a great set of anchor customers,” says Connaughton. “We will show the world the ultra-efficiency, high-performance, and the strong sustainability of our approach. After that, we are ready to rapidly move into other locations to “productize” the technology and we look forward to partnering through joint ventures and technology licensing so that we can get this important technology out into the world as quickly as possible.”

https://www.technologymagazine.com/brochure/nautilus-transforming-data-center-industry

Visalia tech converts dairy air into low-emission fuel

VISALIA – A Visalia company has successfully converted cow manure into a renewable natural gas. California Bioenergy, LLC (CalBio), based in Visalia, announced on Sept. 24 it had successfully achieved the first renewable natural gas (RNG) production from manure stored at dairy farms in Kern County.

“This technology will de-carbonize transportation fuels in the state,” CalBio CEO N. Russ Buckenham said. “When you run a heavy duty truck on RNG, it’s 90% cleaner than running that truck on diesel. And there are a lot of diesel trucks running up and down Highway 99. It’s a terrific benefit to cleaning the air and cleaning the sky.”

Manure stored on dairy farms results in the release of methane, a highly potent greenhouse gas, which causes the Earth’s atmosphere to trap in heat, a major component of climate change. The biomethane projects capture the methane into digesters, which works similar to your stomach, to convert solids into gas. The biogas is then sent to a centralized processing facility where it will be refined into RNG and injected into local utility SoCalGas’ pipeline. The RNG is then marketed as an alternative fuel for heavy-duty trucks and buses, and eventually off-road and farm equipment.

Last month’s announcement marks a significant milestone for CalBio, which has been at the technological forefront of converting dairy waste into renewable fuel since 2006. That’s when Buckenham, a technology engineer, partnered with Neil Black, a leader in environmental sustainability, to begin developing biodigester technologies for dairies. In 2013, CalBio launched the largest dairy digester in the state near Bakersfield in Kern County, the first project attempting to make the technology viable on a commercial scale.In the joint venture between CalBio, Chevron and dairy farmers, the Visalia company brought technology and operational experience to help build digesters and methane capture projects to convert this methane to a beneficial use as RNG. Chevron provided funding for digester projects across three geographic clusters in Kern, Tulare and Kings counties in additional to money invested by the dairies. As they are completed, these projects will mitigate the dairies’ methane emissions and reduce greenhouse emissions from livestock. Also last month, the Tulare County Board of Supervisors approved an underground pipeling connecting a dairy cluster in north Visalia with Southern California Gas Company’s (SoCalGas) utility pipeline. The clusters of digesters have been awarded California Department of Food and Agriculture grants, which must be augmented with additional capital to complete the projects.

Most of California’s large dairies are making plans to install digesters to capture biogas from their cow manure but are looking for a cleaner way to utilize this fuel. Biogas captured from cow manure contains approximately 65% methane, which has a 25 times greater impact on global warming than CO2 emissions and accounts for 105 of U.S. greenhouse gas emissions, but is also a useful, renewable fuel. CalBio is directly involved in half of the 123 dairy digester projects in operation or development across the state. Ninety-four percent of those projects are at San Joaquin Valley dairies, 55 of which are in Tulare County. According to DairyCares.com, a single cow can generate enough renewable fuel to drive a car across the country. Five cows are enough to power a house for an entire year.

“These projects bring so many win-wins—they help create local jobs, improve local air quality by producing renewable natural gas for use in low-NOX emission fleets, and reduce dairy methane emissions,” Buckenham said. CalBioGas began the joint venture with Chevron last summer when it secured funding from the energy company to build infrastructure for dairy biomethane projects in California’s San Joaquin Valley, adding to the investment from dozens of dairy farmers. Chevron will also provide services to bring this product into the California vehicle fuels market.

Andy Walz, president of Chevron Americas Products, said the milestone demonstrates the company’s effort to increase renewables and to invest in lower-carbon technologies. “This is an exciting milestone that speaks to the capabilities and can-do attitude of our partners—CalBio and dairy farmers—to bring this RNG to the California vehicle fuels market,” Walz said. “Chevron is increasing RNG in support of our business and is making targeted investments and establishing partnerships, as we evaluate many emerging sources of energy and the role they will play in our portfolio. And as a proud California company, we are pleased that local communities in the state will benefit from this investment.”

CalBio is a leading developer of dairy digesters for generating renewable electricity and vehicle fuel in California. Founded in 2006, CalBio has worked closely with the dairy industry and state agencies to develop programs to help the state achieve its methane reduction goals while delivering a new revenue source to California dairies. For more information, visit: www.calbioenergy.com.

https://thesungazette.com/article/news/2020/10/21/visalia-tech-converts-dairy-air-into-low-emission-fuel/

UPS, Amazon to Lease Space at Visalia Industrial Park in Central California

VISALIA, CALIF. — The City of Visalia and the Visalia Economic Development Corp. have announced two new tenants at the Visalia Industrial Park currently under construction in Visalia. A 425,000-square-foot UPS hub is now complete and construction has begun on a 1.3 million-square-foot distribution center for Amazon.

YS Industrial is also developing two 300,000-square-foot speculative facilities adjacent to Millipore Sigma and near VWR (Avantor). Additionally, current tenants — SORMA, California Dairies and Hydrite Chemical Co. — are expanding their footprints at the industrial park.

https://rebusinessonline.com/ups-amazon-to-lease-space-at-visalia-industrial-park-in-central-california/

Local growers debut carrot hot dogs

From the land of tri-tip sandwich fundraisers and 24-hour biscuits-and-gravy sales now comes this: hot dogs made from whole carrots. Don’t act surprised. Despite its red-meat reputation Bakersfield is home to the country’s two largest carrot growers, the invention of the popular ‘baby carrot’ snack and a carrot-focused innovation lab employing 15 food scientists on East Brundage Lane.

https://www.newsbreak.com/california/bakersfield/news/2081730626935/local-growers-debut-carrot-hot-dogs-pasta-chips

 

How One Central Valley City is Supporting Entrepreneurs

One of the first cities in U.S. history to pilot a universal basic income, or UBI, program, Stockton, California is not a city afraid of a little experimentation. That kind of creative thinking isn’t limited to the city’s social programs, either. Recognizing that entrepreneurship is — and will be — at the heart of the economy of today and tomorrow, the city offers a range of innovative economic development programs that have already attracted entrepreneurs from across the region and around the country to establish their businesses in Stockton. As young businesses and startups — particularly in their infancy — require a lot of support, that’s where public sector policies and programs make a real difference. These programs assist these emerging companies while entrepreneurs refine their ideas and business plans, seek investment, and scale their operations.

Here’s how the city of Stockton has created a strong support network for entrepreneurs.

Entrepreneurship grants The city of Stockton created its Entrepreneurship Grant program, funded by the U.S. Housing and Urban Development’s Community Development Block Grant program, which aims to promote economic opportunity for low and moderate-income individuals. The Entrepreneurship Grant program offers funding to Stockton-based business service providers and entrepreneurs, startups and established businesses in the city. 2020 was the first year that the grant, which offers up to $200,000 in total funding, was extended to Stockton entrepreneurs directly. In prior years, the grant was only available to business service organizations that provided services and assistance to Stockton-based small businesses or entrepreneurs. The extension has been well-received by the Stockton business community, and work is already underway by the city to bring the program back again next year. Information on how to apply for a 2021 grant will be announced soon.

Non-traditional spaces One of the most enduring concepts to arise out of major entrepreneurship ecosystems is the co-working office space. These innovative shared offices combine the infrastructure and service level of commercial office rentals, the economy of a flexible, scalable workspace, and the comfort and community of a neighborhood coffee shop. Co-working spaces help foster a culture of entrepreneurship in a city, and have even led to innovative synergies with other startups under the same roof. Entrepreneurs who make the move to Stockton will feel at home in one of the city’s familiar, though distinctive, co-working spaces. Via Ventures offers the comfort coworking veterans are accustomed to in a design-centric setting, while Huddle x Launch Pad serves as the Stockton annex for Launch Pad’s national network of quality neighborhood office spaces. Located just a couple blocks from each other, the spaces have been a welcomed addition to Downtown Stockton, a vibrant district located along the San Joaquin River filled with attractions such as cafes, shops, galleries, restaurants, bars, theaters, and a minor league ballpark, home to the Stockton Ports, the Class A-Advanced affiliate of the Oakland Athletics.

Guidance and mentorship The most diverse city in the country according to a U.S. News and World Report analysis, Stockton is creating an entrepreneurship ecosystem that reflects diversity and leverages the strengths of the city’s community. Historically underserved entrepreneurs often lack the access and know-how to navigate entrepreneurial spaces and ecosystems. Strategic interventions can help reduce that gap. Supported in part by the city of Stockton, the Launch Pad Foundation (the nonprofit arm of the Launch Pad co-working network) has developed an innovative scholarship program aimed to reduce gaps in opportunity and access to entrepreneurial spaces. The foundation provides free full memberships for co-working spaces to qualified entrepreneurs, who are selected together with strategic partners in the city. The program also provides access to curricula and programming designed to help entrepreneurs and their businesses achieve success.

Stockton also offers a number of mentorship and training programs available to minority entrepreneurs, such as Centro Community Partners’ Basic Entrepreneurship Program, which offers business planning instruction in both English and Spanish to local entrepreneurs. Other minority-geared programs include the African American Chamber of Commerce’s BRIDGES Entrepreneur program, which holds workshops and webinars geared towards African American business owners and entrepreneurs, and the Main Street Entrepreneur-In-Residence program, which includes a 10-week business training boot camp, office space, financial capital, a monthly stipend and more to eligible Stockton-based African-American business owners accepted into the program. All three programs are either currently funded or have previously been funded in part by Stockton Entrepreneurship Grants. Also noteworthy is local nonprofit Stockton Community Kitchen, which works to help under-resourced food entrepreneurs succeed by offering mentorship and education in the skills necessary to succeed in the food industry. Utilizing its fully-staffed commercial kitchen and classroom spaces, the Community Kitchen provides low-income entrepreneurs with innovative food concepts a program rich in technical and emotional support. Accepting applications on a rolling schedule, Stockton Community Kitchen programs are offered three times per year.

Artists and makers welcome Artists and makers feeling shut out by the prohibitive cost of living and lack of resources for emerging creatives in many major cities will find Stockton’s low cost of living and high quality of life a welcome change. For young creatives looking to develop their technique and sensibility, resources such as Hatch Workshop Center for Emerging Makers are available. The 501(c)(3) nonprofit organization offers low-cost memberships to the workshop’s ceramic, wood and metal-working, and fabrication tools and machinery as well as expert training and education from makers and artists. Creatives will also benefit from a strong local demand for their work fostered by marketplaces like Stockmarket, which (due to Covid-19) currently functions as an all-online virtual artists and makers fair until open air markets are once again deemed safe.

https://www.bizjournals.com/sacramento/news/2020/10/13/how-one-central-valley-city-is-supporting-entrepre.html

Caribbean import is Valley’s top exporter

VISALIA – Crops from Tulare County go to three quarters of the world’s countries making Tulare County one of the top agricultural exporting counties in the nation. The companies connecting produce sellers and buyers are often large, international companies with hundreds or thousands of employees. But some of the exporters, like many of the farmers they partner with, remain small, grass roots businesses located just down around the corner.

It was just 15 years ago when Didier Vivies, an immigrant from the French Caribbean island of Guadeloupe, founded his company Central Valley Ag Exports, Inc. in Visalia. He began by going door-to-door to establish relationships with farmers who would supply him with high quality commodities at a good price and with customers whom were willing to give him a chance and start buying from him. From these humble beginnings, today CVAE employs 10 people and has earned the “2020 Exporter of the Year” Small Business Award from the Central California Small Business Development Center (SBDC) Network SBA. They were nominated for the National Small Business Award by the Valley Community Small Business Development Center (VCSBDC) which serves Tulare, Fresno, Kings and Madera Counties, and is hosted by Clovis Community College.

“We were honored to have CVAE win this award,” VCSBDC director Rich Mostert explained. “Our team of expert consultants provides a full range of no-cost services and workshops to companies across a diverse array of industries, and it is always so rewarding to help a company grow and succeed.”

Due to the pandemic the traditional May SBA Small Business Week event was unable to occur, and the company has been recognized in a private ceremony. “This yearly event recognizes the critical impact small businesses have on our local economies and celebrates the outstanding accomplishments made by each of our award recipients,” Central CA SBDC regional director Kurt Clark said. “Their achievements exemplify the entrepreneurial spirit that is a hallmark of the U.S.”

Vivies established the business in the most fertile agricultural area of the San Joaquin Valley and features a large variety of legumes such as beans, peas, lentils, rice and oatmeal. Serving both domestic and international companies, they offer a variety of options, from bulk deliveries direct from farmer to customer, to packaging for international and domestic locations, to private label packaging.

CVAE credits the consulting assistance they received from the Valley Community SBDC as pivotal to their growth and success, and have worked with the VCSBDC for several years. “VCSBDC’s consultant Olga Martinez has been of great help by assisting us with our growth objectives by introductions to prospective strategy partners through business-to-business match-making, recommending we participate in different conferences and trade shows, plus other strategy advisory services,” CVAE operations manager Ludivine Vivies said.

Since 2003, the Central CA SBDC has assisted thousands of companies, from start-ups to established firms with no-cost consulting services, workshops and assistance in sourcing funds. This has helped to create and retain over 10,000 jobs, as well as creating more than $435 million in loans and equity. The Central CA SBDC and its five dedicated satellite Centers serve 14 counties in Central California: San Luis Obispo, San Benito, Monterey, Stanislaus, Merced, Tuolumne, Mariposa, Fresno, Kings, Madera, Tulare, Kern, Mono and Inyo counties.

https://thesungazette.com/article/business/2020/10/07/caribbean-import-is-valleys-top-exporter/

California’s Central Valley: A hidden gem?

BY DENISE DECHAINE

In today’s low interest rate environment, investors are working overtime in their search for yield. In the real estate arena, property investors are searching beyond gateway and primary markets — where stiff competition has compressed cap rates to record lows for some property types — and exploring opportunities off the beaten track in overlooked secondary and tertiary markets.

One such opportunity is California’s Central Valley, where investors can tap into the region’s growth story and still find markets and properties that offer significantly higher risk-adjusted returns, according to a report by Institutional Real Estate, Inc. titled California’s Central Valley: Land of affordability, growth and opportunity.

The Central Valley is California’s fastest-growing and most-affordable region. The area’s economy is fueled by three large, recession-resistant economic sectors: government (including the nation’s second-largest government center, Sacramento), healthcare and agriculture. Based on projected future economic and population growth — as well as higher cap rates — the Central Valley is a classic example of a secondary market that is in the early stages of transitioning away from local and regional ownership to a larger base of institutional owners.

These investors are discovering the untapped potential for investment in California’s Central Valley key cities of Sacramento, Bakersfield, Fresno, Stockton and Modesto.

https://irei.com/news/californias-central-valley-hidden-gem/

Retail construction continues locally despite pandemic

Judging only by construction of new retail buildings around Bakersfield, it would be easy to conclude the pandemic has hardly disrupted the local economy. That’s not the case, of course, with unemployment hovering at about 13 percent in August. But in recent months whole new shopping centers have sprung up at the intersections of Stockdale Highway and Buena Vista Road, and at Panama Lane and Ashe Road.

Meanwhile, construction of additional retail projects has begun at Snow Road and Calloway Drive. Also, work is scheduled to begin soon on a similar project at Panama Lane and Gosford Road. There’s no question these projects predate COVID-19’s arrival and originated under better economic circumstances. In that sense, observers say, they are left over from a time when investor confidence was stronger than it is now. But it’s also a good sign — and a benefit to local employment — that these developments are proceeding despite the economic slowdown and generally challenging times for the retail industry.

Bakersfield commercial real estate broker Scott Underhill said March and April were tough but that since then business has picked up. Rents have come down, he noted, as tenants and landlords have worked together out of shared necessity. “We’ve adjusted and moved forward,” he said.

The pain in local retail has not been distributed evenly. Broker Vince Roche said some stores are suffering, as are family entertainment centers. But drive-thrus, grocery stores and home-improvement retailers, he said, are doing quite well. Roche said he takes hope in a recent surge in demand from people moving to Bakersfield from other areas where homes are more expensive. Eventually that should lead to more homes and, after that, additional stores to serve new neighborhoods. He cautioned that COVID-19 has clouded an already uncertain future for retail. Society remains “in the storm,” he said, and it’s hard to tell where the economy will end up after the pandemic subsides. Developers may have reason to pause, he said, but not necessarily good cause to halt. “It (the virus) has created just another layer of risk that has to be assessed and really evaluated on a project-by-project basis,” he said.

One byproduct is that construction labor is now hard to come by, said Joe Jannino, an estimator at general contractor SC Anderson Inc. “There’s plenty of work going on right now,” he said, adding that SC Anderson has kept busy lately largely because of school construction and other publicly funded building projects.

The project that began recently at Snow and Calloway will feature an Arco filling station with a convenience store and carwash, Underhill said. There will also be a fast-foot restaurant and a 20,000-square-foot store whose tenant has not been identified.

At Stockdale and Buena Vista, he said, a Panda Express will open this week. Other tenants there will include a Raising Cane’s Chicken Fingers, a Little Caesars Pizza, a Del Taco and a nail salon, along with other tenants still negotiating leases. The shopping center being completed at Panama and Ashe will have a Planet Fitness gym, a 7-Eleven, a Habit Burger Grill, a Raising Cane’s, a Mexican-style restaurant and other tenants, Underhill said. He said at Panama and Gosford there will be an Arco, two fast-food restaurants and a 20,000-square-foot store.

https://www.bakersfield.com/news/retail-construction-continues-locally-despite-pandemic/article_749a316e-ff83-11ea-ba2f-b700fc93ff6d.html

The COVID-19 pandemic could be a ‘tipping point’ for the Central Valley’s growth, innovation

Despite the challenges the Central Valley has faced in the past few months, the coronavirus pandemic could prove a “tipping point” for the region in terms of innovation and growth, according to speakers at the annual State of the Valley event.

“In this pandemic crisis, I see a real opportunity for the North (San Joaquin) Valley,” said Mark Keppler, the executive director of the Maddy Institute, a local public policy organization. “If there’s some strategic thinking that’s going on … and then those plans are put into action, I think the next 25-50 years could be the time that the North Valley really emerges as a region.”

The event, co-presented by the Modesto Chamber of Commerce and Opportunity Stanislaus, was held Monday as a live webinar and featured presentations from Keppler and Dave White, the CEO of Opportunity Stanislaus. Trish Christensen, the chamber of commerce’s president and CEO, moderated the event.

Both Keppler and White expressed optimism at Stanislaus County’s ability to recover from the COVID-19 pandemic, which sent unemployment skyrocketing in March and April and left many without jobs. Coupled with large-scale shutdowns of many parts of the economy — from shelter-in-place orders in the spring to current restrictions on indoor dining and other activities — brought whole sectors of the economy to a standstill.

But six months in, the Central Valley is beginning to see signs of recovery, both Keppler and White said. Recent unemployment data for Stanislaus County clocked in at 10.9%, down from 13.6% in July and a high of 17% in April. Jobless numbers in the county are currently lower than state-level unemployment, which was 11.4% in August, down from 13.5% in July.

“We’ve done better than most of California,” White said. “The main reason for that is we don’t rely on tourism and transportation as much as other places in California.”

The Central Valley’s key industries are manufacturing, agriculture and other essential industries, which have remained open throughout the pandemic. Additionally, seasonal labor — from farm work to Census enumerators — has caused a spike in employment across the Valley, resulting in lower unemployment figures.

SMALL BUSINESSES STRUGGLE DESPITE SUPPORT

White spoke to the Valley’s relative success in terms of coronavirus recovery, aided in part by local business support programs, including grants and loans like the Paycheck Protection Program, which gave small business access to billions in federal money.

Now, with the PPP program complete, and businesses adapting to the “new normal” under COVID-19, White stressed the importance of following the statewide safety guidelines and tiered system that will eventually allow for more reopening across the county.

Still, White said, people should not expect a V-shaped recovery from the pandemic, due to a decreased participation in the economy and shutdowns still in place across many industries. People are still wary of returning to work, as well as shopping and dining, he said.

“They’re scared, and they’re not confident,” White said. “In order to establish that confidence, we have to see a decrease in the impact of the virus on our community…. The longer this goes, the more we’re going to see business failure.”

CHANGING SKILLS FOR A NEW ECONOMY

The pandemic has changed the ways many Americans live their daily lives, from telecommuting to relying on online retailers for much of their shopping. Keppler said he is predicting ensuing changes in the Valley as well, including an increased emphasis on logistics, coming from large retailers and delivery service companies like Amazon, UPS and FedEx.

White said he also expects “on-shoring” of manufacturing, moving plants from overseas back to the United States, and creating more job opportunities in those sectors, as well as expansion plans from more traditional corporations.

Amazon recently announced 2,600 new jobs in the Central Valley, as part of a nationwide hiring spree of 100,000 workers, ranging from warehouse staff to finance and HR positions in the individual buildings.

Manufacturing jobs coming to the Central Valley will require workers with skills like PLC coding, automation and robotics, White said, raising the requirements for applicants. He said he expects similar changes in fields like agricultural technology and logistics.

“We need to invest in coding and all these upper skills that will be required in this new economy,” he said.

Additionally, White said, Stanislaus County needs to attract these skilled workers from other areas in the state and around the country, offering a high quality of life at a comparatively lower price point.

ATTRACTING POTENTIAL BUYERS TO THE CENTRAL VALLEY

As teleworking has become a more permanent option for many companies, Keppler said it’s estimated that Americans have saved around $91 billion by working at home this year, and employers are eager to continue with the practice and eventually reduce their footprints in high-priced areas like Silicon Valley.

Keppler said not only will this reduce the commutes of many workers who regularly drive up to three hours from the Valley to the Bay Area, but also make areas like Stanislaus County more attractive to potential renters and buyers.

In a post-office landscape, Keppler stressed, the Valley needs to make itself competitive not only on a regional level, but “nationwide.” This means focusing on housing, attention to detail in urban planning and ensuring that cities like Modesto provide ample amenities — like parks, performing arts and a walkable downtown — to attract new residents.

White added that as the pandemic more heavily affects urban areas, like New York City, Los Angeles or San Francisco, a number of people may be looking to move out of larger cities and into smaller ones they deem safer, like Modesto or other places in Stanislaus County.

“There’s going to be demand for housing,” he said, “and we need to be ready for that.”

White said he foresees a sort of hybrid model, with increased work-from-home and the possibility of smaller, communal offices popping up in more affordable cities where the employees of large tech companies will be able to work a few days a week or month.

He said it’s crucial for the public and private sectors to work together and create solutions for these needs across the Valley, and make the region as lucrative as possible for both companies and workers.

“The potential here is unbelievable,” Keppler said. “There has to be civic pride, and a sense of, ‘You know what, we can do this!’”

https://www.modbee.com/article245901805.html