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Firms Find Southern California Has Everything They Need.

By Kerrie Bertz

  [ 5/1/2000 ]  By: the time we moved, we were really hurting.   Print This Article  Reprint/License This Article  E-mail This Article To A Friend  
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"We even had storage bins outside. We knew we just had to move, and we wanted to stay within a 30-mile radius of our old location."

In October 1999, the computer service company moved 280 employees into a 104,000 square foot office, warehouse and technical service facility only 15 minutes away.

Jackson said one of his biggest concerns was losing trained workers if Computer Parts Unlimited moved too far away. As it turned out, Jackson retained most of his employees - plus enhanced his talent pool.

"The work force and amount of skilled labor we've seen here is good," said Jackson. "We moved closer to the San Fernando Valley, and the pool of skilled employees is actually greater here than in Ventura County where we were."

Business parks pop up

East of Simi Valley and Los Angeles is Rancho Cucamonga, where millions of square feet of spec projects are ready and waiting for the right tenants. Currently, five business parks - from a railroad-accessible industrial site to an office community that borders a golf course - are under construction.

The project, which adds four buildings to two existing phases, includes three new spec buildings and one build-to-suit. To accommodate needs specific to warehouse operations, the buildings feature 30-foot clear heights, advanced sprinkler systems and trucking courtyards with trailer storage areas.

Just east of Rancho Cucamonga, Illinois-based Sears invested $6 million to complete a spec building in Fontana for a central repair center.

The 186,000 square foot facility opened last May and employs 300 highly skilled, technical repair specialists. Sears' only other central repair center is in Chattanooga, Tenn.

"Technology has changed drastically in the past five years," said Karen Mares, operations manager of the Fontana facility. "To do repairs on camcorders and DVDs, for example, you need a specialized technician and specialized equipment that may cost tens of thousands of dollars.

"To have that kind (of training and equipment) in 450 locations wouldn't be cost effective. Plus, we couldn't manage the quality of service and skill set in 450 locations. This gave us more control over technology and services we needed to grow."

To assist with the project, Sears received a $100,000 training grant for screening and post-hire training.

The state administers its training and placement program through the EDD. The EDD's Job Services division can provide current labor market information for planning business expansion, relocations, and future hiring and training needs.

Job Services can also help companies focus their recruitment campaigns to garner the largest number of specialized workers as quickly as possible. EDD specialists can also use CalJOBS, a computer database of available workers, to help companies conduct a statewide search to find specialized workers.

The Employee Training Program (ETP) is set up for existing workers who must be retrained. The state reimburses qualifying companies for training expenses after an employee has been on the job 90 days.

Since its inception, the ETP has provided $550 million in funding to more than 27,000 California businesses for the training or retraining of 280,000 workers, according to state reports.

Being a part of the team

In Southern California, a team approach to economic development helps expanding and relocating companies cut through the red tape.

To stay competitive, Marko Foam Products in Corona was considering moving south of the border to Mexicali, Mexico. But with a little help from government officials and Southern California Edison, the foam packaging manufacturer decided to keep 300 jobs in Southern California, according to Ty Peterson, Marko Foam's president.

The company's incentive package included tax credits, training funds and a Retention Economic Development Rate from SCE. The special power rate gives the company five years of discounted electricity in exchange for an agreement to maintain a specific level of usage for seven years.

"The flexible rates we received from SCE will allow us to stay in California and do business more profitably," said Peterson. "Like any business, we want our Corona plant to operate competitively, and SCE is helping us do just that."

In addition to the company's 115,000 square foot headquarters in Corona, Marko Foam Products operates facilities in Colorado, Oregon, Utah, Mexicali and northern California.

American Eagle Wheel Corp. also took advantage of discounted utility rates to stay profitable in the United States. In February of 1999, the manufacturer of after-market auto parts announced it would keep 320 jobs in Chino and add 50 more, rather than move them to its sister plant in Mexicali.

SCE used flexible pricing and special economic development rates to discount American Eagle Wheel's utilities for three years.

"These two rates will allow American Eagle Wheel to remain competitive in Chino while expanding our business," said Ray Elbertse, the company's vice president. "SCE and the city of Chino helped prove to us that California is a great place to do business."




 

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