Without fail, almost every real estate professional at some point has heard the maxim ‘Location, Location, Location’. While inevitably true, industrial users know that access to qualified and economical labor is the lynchpin to a successful distribution center or manufacturing plant.
With this in mind, Hickey & Associates, a globally recognized site selection, incentives, and workforce solutions company, recently produced an extensive labor report focusing on the laborshed in the submarket specific to the Prologis International Park of Commerce (IPC), located in Tracy, California. Overall, IPC’s large laborshed population, access to major roadways, and competitive wages make Tracy an attractive option for the transportation and warehousing business.
Figure 1 – Laborshed Analysis
Key findings in the study include:
- The population of the IPC laborshed – the area within the red border in Figure 1 above – is 3.27 million. Tracy itself has experienced consistently high double digit growth since the 1950’s and has added over 50,000 residents since 1990, nearly tripling its population over the past 25 years.
- In the city of Tracy, 37.7% of the population is aged 18-24. Targeted business interviews reveal Transportation and Warehouse sector employers value young males who are able to stand for extended period of time and lift heavy materials during their shifts. Demographic data indicate that laborshed is poised to supply that labor.
- Unemployment in Tracy is roughly the same rate as smaller neighboring cities, but the pool of available workers is much greater in Tracy due to the population size.
- The wage per hour of the average Transportation and Warehouse worker in Tracy is less than the Bay Area, Stockton/Lathrop, and Modesto/Merced. Click on here for a link to the report’s executive summary: