Industrial Insights - April 2023
Labor Analytics
Labor has become increasingly critical to business leaders during this market cycle. Justin Smith interviewed Kevin Dollhopf and Gary Yates of Hickey & Associates, consultants specializing in labor analytics for warehousing, distribution, and manufacturing operations across multiple regions.
Key Findings
Regional Labor Ranking
The Inland Empire outperforms Los Angeles, Orange County, Phoenix, Las Vegas, and California's Central Valley "in virtually every category" related to labor competitiveness. This makes it the top-ranked market for West Coast industrial operations.
Total Cost Considerations
When combining labor, transportation, and real estate expenses, Southern California industrial markets remain the most expensive option overall, despite the Inland Empire's labor advantages.
Mexico as Strategic Market
Mexico is emerging as an increasingly important location for both U.S. and international companies serving North American markets. Dollhopf and Yates plan to publish a detailed labor market analysis focused on Mexico in the coming weeks.
Next Steps
The full interview transcript and audio are available for review. Smith CRE offers industrial real estate services for property lease and sale opportunities. Interested parties can contact the team to discuss how their expertise can support business objectives.