Elma accomplished everything on its expansion list when it opened a 60,000 square foot sheet metal production facility in Lathrop, in California's San Joaquin Valley. The Swiss company, which has its U.S. headquarters in Fremont, Calif., employs 30 people at the Lathrop facility.
"We were able to get a better rent price, lower labor costs, and half of our people were from Lathrop already," said Fred Ruegg, president of Elma. "We're still within 50 miles of our other plant in Fremont, so this is an ideal situation for us."
The company designs and makes electronic components. Eventually, Elma will add an assembly operation in Lathrop to go with the sheet metal production. All told, Elma produces over 16,000 parts for electronic systems.
Hesperia cuts out red tape
One of the biggest obstacles to any expanding or relocating company is the permitting and approval process from state and local governments. In Hesperia, located northeast of Los Angeles, the city has a variety of programs that help companies expedite the permitting process and help with financing.
One company that took advantage of Hesperia's incentives is Standard Abrasives. The company underwent a 39,600 square foot expansion.
In Rancho Cucamonga, east of Los Angeles, General Motors is constructing a 404,000 square foot parts distribution center. The facility will serve 335 GM dealers in Arizona, California, Utah and Nevada.
"Local and state considerations for support in assisting with funds for employee training and necessary roadway improvements were instrumental in providing a favorable business case," said Ronald West, general director of warehousing and distribution for GM Service Parts Operations. "When we look at the business case for relocating a facility, we also consider the impact on the community in which we reside."
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