Officials marketing Central Valley at national trade show | Central Valley Business Journal

Officials marketing Central Valley at national trade show | Central Valley Business Journal

Friday, 10 February 2012 17:07
Officials marketing Central Valley at national trade show
Written by The Business Journal

STOCKTON – A band of government and economic development officials next week hope to convince attendees of the West Pack 2012 exhibition at the Anaheim Convention Center that the lower cost quality locations for packaging and processing locations makes the Central Valley worth considering.

Michael S. Ammann, San Joaquin Partnership president and chief executive officer, Partnership Vice President of Client Services Shelley Burcham, Andrew Malik from the city of Tracy, Jeff Hood from Lodi, and Rob Lechner of Lodi Electric Utility will be attending to promote San Joaquin County. They and other representatives south to Bakersfield are part of the California Central Valley Economic Development Corporation, or CCVEDC, and will attend the trade show Feb. 14-16.

“With signs showing the economy is starting to turn around, it will be interesting to see how this translates to businesses seeking new or consolidated locations,” said John Lehn, CCVEDC chairman.

A Central California location can provide bottom line savings to relocating businesses and the CCVEDC representatives will be on hand to discuss available sites, incentives, and to offer confidential assistance to industry professionals. In addition, there is good news to report.

Signs of economic recovery are starting to spring up throughout Central California and University of the Pacific Economist Jeff Michaels recently predicted that, “After five years of dwindling payrolls and soaring unemployment, 2012 will see the Central Valley join the national economic recovery with job growth of 2 percent.”

Officials from throughout the eight-county region are reporting drops in year-end unemployment rates, increased retail sales, stability in the manufacturing sector, developing solar and wind energy facilities, and new industry relocations and expansions. While recognizing these gains, these officials also note that the region has yet to recover from the housing mortgage crisis and year-end unemployment rates continue to hover between 14 and 16 percent across the region.

California Central Valley Economic Development Corporation is a regional marketing group whose mission is to promote job creation in the valley, mountain, and desert communities located within the counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus and Tulare. The CCVEDC focuses its efforts on manufacturing, food processing, distribution/logistics, renewable energy, back office and the bio-tech industry sectors.

The activities of the CCVEDC build upon the individual efforts of the eight counties covered by the organization. Together, these efforts can be credited with adding jobs throughout the region. For example, the San Joaquin Partnership’s business attraction, retention and expansion activities created 1,485 new jobs last year and a total investment estimated at $362 million, which is nearly three times the prior year's investment.

Neighboring Stanislaus County kicked off the new year with an announcement that a major agricultural processor and a fulfillment/distribution center would locate in the area, bringing 200 and 1,500 jobs respectively. The county also reports that local manufacturing jobs held steady during the recession and existing agricultural producers and processors cited record years in 2011.

Agriculture is the region’s top industry and commodity prices remain strong throughout the region. The abundance and diversity of crops grown in Central California, as well as the proximity to this vast array of fruit, nut, and vegetable crops is an advantage to area food processors and new facilities continue to locate in the region, while existing facilities have maintained, and even added jobs, in the past year.

The nation’s top agricultural-producing county, Fresno, reported a record $5.9 billion in production for 2010, up 11.2 percent from the previous year. The county reports a significant increase in food processing companies moving into the valley, as well as an increase in inquiries from the bio-tech and bio-ag industries. Large industrial complexes have been developed and are ready to accommodate these and other new businesses.

Food processing remains strong in Madera County, and the industry has been adding jobs to the local economy. Other industry sectors remain stable and are beginning to add jobs. Kings County also reports stability in manufacturing, a new FedEx cross-dock distribution facility and several energy-related projects. Kings also netted one of the largest gains in construction jobs in the nation for 2011. A number of food processing facilities are also being constructed in Kern County.

Retail sales are strengthening throughout the region.

“Job growth has been fueled in part from consumer spending, which continues to increase from quarter to quarter, and is anticipated to continue through 2012,” said Paul Saldana, Tulare County EDC.

Oil prices remain relatively high and Kern County reports significant employment growth is the oil industry, up 16 percent over the previous year. Construction jobs are also returning, ranking Kern 6th in the nation.

The Central Valley is becoming widely known as the preferred location for West Coast distribution centers due to its one-day accessibility to major population centers of the Western U.S. In addition to the previously mentioned distribution/logistics projects, several more have recently located to Kern County, including Caterpillar, Dollar General, and Famous Footwear.

For companies requiring rail transportation, access is available to business locations throughout Central California. Fresno has emerged as a central part of BNSF's nationwide strategy for the future.

Renewable energy has taken hold in Central California. Operators are taking advantage of the region's sunny climate, and several counties have approved numerous projects of various sizes. Kern County leads California in permitted renewable energy projects for both wind and solar over 7,000 MW. Fresno County has approved seven utility-scale solar projects and 28 additional projects are pending before the Planning Commission.