Low Total Costs of Operations
The Tejon Ranch Commerce Center offers significant advantages in the cost of labor, land and transportation, which make up the majority of the overall costs of operations.
- Starting wage rates in the Golden Empire for distribution center workers average from $0.45 to more than $1.30 less per hour than those in Southern California and the Inland Empire.
- Land costs are 50% lower than the Inland Empire and nearly 80% lower than Santa Clarita.
- Foreign Trade Zone (FTZ) designation permits users to move merchandise directly from port of arrival to the FTZ, avoiding delays at congested ports. This is only one of the cost efficiencies available to companies locating in the Commerce Center’s 177-acre FTZ, which is quickly expandable to 500 acres.
Labor Availability and Productivity
- Jobs in the goods-movement industry are in high demand in the Golden Empire with distribution centers attracting an average of up to ten pre-qualified applicants per job opening. In the Bakersfield area alone, the labor pool for such jobs is in excess of 75,000 people.
- The Golden Empire’s agriculture industry is highly mechanized and provides a steady stream of skilled workers looking to transition to distribution-related businesses. These are hard-working people who value their jobs.
- Turnover at distribution centers at the Tejon Ranch Commerce Center averages less than five percent; a fraction of the typical turnover rate found at distribution centers in the Inland Empire.
- The Commerce Center is an easy 30-minute or less commute from Bakersfield and other nearby communities. A Park ‘n Ride facility and several other dedicated public transportation options make the ride to work easy and convenient.
- “People work hard. Productivity is 15% higher than expected, with workers routinely finishing eight hours worth of work in only five to six hours.”
- Patrick Rasmussen, Distribution Center Manager, Famous Footwear
Tejon Distribution Center
Logistical Efficiencies
- Easy access from the ports with less traffic congestion than the Inland Empire and other developed urban areas. Highway closures rarely impact the Golden Empire, averaging less than thirty hours per year.
- “Having worked in the Inland Empire, I can tell you it’s a logistical nightmare getting things out of port. You have two massive freeway interchanges that are always congested – and that’s never going to change. The Tejon Ranch Commerce Center is a straight shot. Even though there may be more freeway mileage, ETA’s are much smoother at Tejon.”
- Ken Gladwin, Shipping Supervisor, Famous Footwear
Tejon Distribution Center
- Ideally located to serve California and the western U.S., including the ability to reach 97% of California’s 37 million consumers within a single day truck turn.
- Positioned between California’s two major port facilities – the Ports of Los Angeles and Long Beach are two hours to the south and the Port of Oakland is four hours to the north.
- Direct northbound and southbound access via Interstate 5, which bi-sects the Commerce Center; easy access eastbound via Highway 58 to I-40 and I-15.
- A Distribution Center can operate 24-7 without the concerns of disturbing its neighbors because there are no existing or planning residential areas located within close proximity.
- “All our inbound product comes in at night, so that saves us money.”
- Beatriz Estrada-Munoz, Director of Operations, IKEA
Tejon Distribution Center
Business-Friendly Operating Environment
- Responsive, pro-business local government.
- No additional fees levied by local government.
- Air quality impacts pre-mitigated by the developer.
- Shovel-ready purchase, lease, and build-to-suit opportunities for land or buildings ranging in size from 20,000 to more than two million square feet.
- High quality, environmentally sensitive, aesthetically pleasing design and development reflecting the values of the Tejon Ranch Company.
- Employees enjoy an attainable quality lifestyle; a wide array of cultural, sports and entertainment opportunities; easy access to all that California has to offer and among the lowest housing prices in the state.