NorthBay Logistics Center

Transcription

1 NorthBay Logistics Center Statistical Labor Market Comparison Including Competing Areas March 2018

2 Contents Report Introduction Key Findings Regional Map Statistical Labor Market Comparisons Labor Cost Estimates Union Activity Labor Market Maps Appendix

3 Report Introduction This report presents a statistical review of the NorthBay Logistics Center s associated regional labor market characteristics. Comparisons to the NorthBay Logistics Center in Vacaville, include select, competing areas of: Sacramento, ; Richmond, ; Hayward, ; Tracy, ; Reno, Nevada; and United States averages, to provide context to the data. Evaluated labor market characteristics are those which typically influence location decisionmaking for distribution centers, including distribution-center-specific: Labor skills volumes and concentrations; Demographics and inflation trends; and Wage indices. Statistics pertain to the 30-minute drive-time area from each property, unless otherwise indicated. 2

4 Key Findings NorthBay Logistics Center is well-suited for new warehouse and distribution operations. Key strengths include: NorthBay Logistics Center is the only evaluated location where targeted workforce* supply exceeds demand, indicating the area is well positioned for warehouse employment growth; A well-situated property, where more of the targeted workforce* live within a closer commute (10 miles) than a farther commute (30 minutes); Lower inflation trends and affluence than most competing locations, indicating similar wage offerings will be more attractive at NorthBay Logistics Center; Favorable characteristics for entry-level and part-time labor, including higher college student enrollment and the lowest median age among competing locations; and Lower union risk, as evidenced by low petition activity and a the lowest number of union elections (normalized by workforce population) among evaluated locations. *Targeted workforce definition: The civilian population (ages 16+) with demographic characteristics best aligned with a typical hourly warehouse worker profile (i.e., lower/moderate income, blue collar occupational tendencies, high school educated). Source: Experian,

5 Regional Map NorthBay Logistics Center and Competing Areas, 30-Minute Drive Time Considered Areas NorthBay Logistics Center, Vacaville, Hayward, Richmond, Tracy, Sacramento, Reno, Nevada Note: Perimeter outlines correspond to a 30-minute drive-time from the geographic center of each city and are distinguished by separate colors. 4

6 Statistical Labor Market Comparisons Key Findings: Population Centrally Located NorthBay Logistics Center exhibits higher population volumes within 10 miles of the property, which is indicative of a centrally-located property. Young and Growing Area The combination of the lowest median age and an above-average projected population growth rate for ages 18 to 34 indicates a favorable, younger workforce now and in the coming years. Category NorthBay Logistics Center Hayward, Reno, Nevada Richmond, Sacramento, Tracy, Entire U.S. Population 30-Minute Drive Time Volume, ,841 2,757, ,884 1,775,896 1,993, ,726 n/a Percent of 30-Minute Population within 10 Miles 48% 29% 88% 33% 50% 30% n/a Population within 10 Miles 164, , , , , ,943 n/a Projected 5-Year Population Growth, Ages 18 to % -3.9% 4.4% -4.2% 3.6% 7.3% 2.2% Median Age, Note: Data are representative of calendar year 2017 and 30-minute drive time from location specified on page 4, unless otherwise noted. Source: Experian,

7 Statistical Labor Market Comparisons Key Findings: Targeted Warehouse Demographics and Employment Well Positioned for Warehouse Employment Growth Among compared locations, NorthBay Logistics Center is the only location where targeted workforce supply exceeds demand. Close to Warehouse Worker Residences NorthBay Logistics Center exhibits higher volumes of targeted, and existing, warehouse worker residences within 10 miles of the property, which is an indicator of a more sustainable labor supply. Established Location for Shift Work As evidenced by a higher percentage of the labor force working second and third shifts Category NorthBay Logistics Center Hayward, Reno, Nevada Richmond, Sacramento, Tracy, Entire U.S. Targeted Warehouse Worker Labor Pool Total Individuals by Residence (Ages 16+) 33, ,773 47, , ,534 44,176 n/a Total Individuals by Workplace (Ages 16+) 31, ,010 54, , ,684 46,709 n/a Supply/Demand Balance (if >0, supply > demand) 2,846-38,237-7,014-23,636-13,149-2,534 n/a Individuals within 10-Mile Radius 17,506 59,612 44,425 34, ,025 10,278 n/a Current Warehouse Occupations Total Individuals by Residence 4,712 26,700 7,667 18,225 17,942 6,589 3,955,612 Concentration versus U.S. (U.S. = 1.0) Total Individuals by Residence (10-Mile Radius) 2,382 11,110 7,223 4,210 10,615 1,977 n/a % Individuals within 10-Mile Radius 51% 42% 94% 23% 59% 30% n/a % of Labor Force, Blue-Collar Occupations 19% 16% 20% 15% 16% 23% 21% % of Labor Force working 2nd and 3rd Shifts 18% 11% 17% 12% 14% 14% 14% Note: Data are representative of calendar year 2017 and 30-minute drive time from location specified on page 4, unless otherwise noted. Source: Experian,

8 Statistical Labor Market Comparisons Key Findings: Affluence and Education Worker Earnings Go Farther As compared to most competing locations, lower household income, lower income growth, and lower cost of living suggests similar wage offerings will be more attractive at NorthBay Logistics Center. Favorable Educational Characteristics for Entry-Level Labor As demonstrated by a lower percentage of persons without a high school diploma and a higher percentage of high school graduates with some college and/or an associate degree. Higher Likelihood of University Student Employment As indicated by higher volumes of part-time university enrollment Category NorthBay Logistics Center Hayward, Reno, Nevada Richmond, Sacramento, Tracy, Entire U.S. Inflation Trends and Affluence Median Household Income, 2017 $70,323 $89,055 $53,243 $70,491 $62,728 $71,622 $56,286 % Change Median Household Income, % 19% 24% 18% 18% 16% 17% % of Households with <$35,000/yr. Income 24% 21% 33% 28% 29% 24% 32% Cost of Living (U.S. Average = 100), Education Attainment % Without High School Diploma 13% 14% 13% 15% 13% 19% 14% % High School Diploma, Some College/Associate 58% 43% 60% 43% 57% 57% 57% % With 4-Year College Degree 30% 43% 27% 42% 31% 24% 29% College Student Enrollment, 2015 Fall Enrollment Total 107, ,793 37, , ,825 72,509 n/a Fall Enrollment Part Time 48, ,359 15, ,752 79,681 42,572 n/a % Part Time Enrollment 45% 44% 41% 45% 47% 59% n/a Note: Data are representative of calendar year 2017 and 30-minute drive time from location specified on page 4, unless otherwise noted. Sources: Experian, 2018, Sperling s Best Places 7

9 Labor Cost Estimates Labor Market Cost Findings Overview Market-representative starting hourly wage rates for select distribution center job positions are below. The average wage index for NorthBay Logistics Center based on the selected job titles is comparable to Tracy and Sacramento and substantially lower than Hayward and Richmond. Wage Survey Job Title Reno, Nevada Tracy, Market Median Hourly Base Salary NorthBay Logistics Center Sacramento, Hayward, Richmond, U.S. Average Warehouse Worker $13.95 $14.18 $13.94 $14.09 $15.44 $15.83 $13.35 Warehouse Selector $14.48 $14.72 $15.30 $15.10 $16.60 $16.90 $14.12 Materials Handler $14.85 $15.10 $14.86 $15.03 $16.48 $16.77 $14.15 Forklift Operator $15.01 $15.29 $15.04 $15.21 $16.68 $16.95 $14.30 Shipping & Receiving Clerk $18.82 $19.37 $20.14 $19.83 $21.45 $21.51 $17.81 Warehouse Supervisor $29.48 $30.30 $30.20 $30.43 $33.60 $33.54 $27.87 Average Index (U.S. = 100) Source: Economic Research Institute, 2018 Note: All figures exclude overtime pay, shift differentials, and mandatory and discretionary benefits. 8

10 Union Activity Elections & Petitions within a 30-Minute Drive-Time (page 1 of 2) Union activity pertaining to historical petitions for election certification and election success rates are profiled below on a 30-minute drivetime basis. As compared to competing locations, NorthBay Logistics Center exhibits lower petition activity and the lowest number of union elections per 100,000 workforce. Petition Activity For Election Certification, 2016 Union Elections ( ) 1 Location Total And Trend From Prior Year Year Activity Elections Per 100,000 Workforce Election Outcome NorthBay Logistics Center % Union 80% Company 20% 80 Total Elections: 5 % Reno, NV Jan Feb Mar Apr May Jun Jul AugSep Oct NovDec Sacramento, CA % 31 % 38Union 38% Company 63% % Total Elections: 8 Union 69% Company 31% 69 Total Elections: 45 % Note: Union election data reflects Q1 through Q1 of stated years Source: National Labor Relations Board, 2018 Petition Activity Legend Indicates Teamsters Indicates All Remaining Election Outcome Legend Indicates Union Indicates Company 9

11 Union Activity Elections & Petitions within a 30-Minute Drive-Time (page 2 of 2) Location Total And Trend From Prior Year Petition Activity For Election Certification, 2016 Union Elections ( ) 1 Year Activity Elections Per 100,000 Workforce Hayward, CA Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Richmond, CA Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 20 % Election Outcome 20 % Union 80% Company 20% 80 % Total Elections: 118 Union 80% Company 20% Total Elections: Tracy, CA Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Union 50% Company 50% Total Elections: 22 Note: Union election data reflects Q1 through Q1 of stated years Source: National Labor Relations Board, 2018 Petition Activity Legend Indicates Teamsters Indicates All Remaining Election Outcome Legend Indicates Union Indicates Company 10

12 Labor Market Maps

13 Labor Market Maps Targeted Warehouse Worker Demographic Labor Pool* Illustrated below are the locations, densities and volumes of households exhibiting warehouse worker demographic characteristics within 30 minutes of NorthBay Logistics Center.,, DAVIS SONOMA FAIRFIELD DIXON Households of Warehouse Worker Demographic Drive-Time Volume, minutes 15, minutes 33, minutes 144,194 RIO VISTA *Definition: Targeted demographic represents the civilian population (ages 16+) with demographic characteristics best aligned with hourly warehouse workforce requirements (i.e., lower/moderate income, blue collar occupational tendencies, high school educated). Source: Experian,

14 Labor Market Maps Material Moving Occupations, 2017 The map below illustrates residential locations of persons employed in materials moving occupations. NorthBay Logistics Center is centrally located among high-concentration areas. DIXON SONOMA FAIRFIELD Materials Moving Occupations Drive-Time Volume, minutes 3, minutes 9, minutes 34,348 13

15 Labor Market Maps Targeted Warehouse Worker Demographic Workplaces vs. Residences The map below illustrates locations where the warehouse worker demographic population lives and works. There is a net residential surplus (blue-shaded areas) within 30 minutes of NorthBay Logistics Center. DAVIS SONOMA FAIRFIELD DIXON Targeted Warehouse Worker Workplace vs. Residential Locations Drive-Time Volume 20 minutes 4,018 Residential Surplus 30 minutes 2,845 Residential Surplus 45 minutes -28,564 Residential Deficit RIO VISTA Definition: Targeted demographic represents the civilian population (ages 16+) with demographic characteristics best aligned with hourly warehouse workforce requirements (i.e., lower/moderate income, blue collar occupational tendencies, high school educated). Source: Experian,

16 Labor Market Maps Projected Population Change Ages 18 to 34, 2017 to 2022 The map below indicates projected population changes among ages 18 to 34 from 2017 to The NorthBay Logistics Center is in favorable proximity to capture areas with large increases in population. DAVIS DIXON SONOMA FAIRFIELD RIO VISTA Projected Population Change, 2017 to 2022 Drive-Time Net % Change 20 minutes 2, % 30 minutes 8, % 45 minutes % Note: Population change among ages 18 to 34 is an indicator of supply of labor over time, particularly for entry-level workers. White areas on map indicate population decline. Green areas may indicate absence of population. 15

17 Appendix

18 Appendix Selected Wage Survey Job Titles and Descriptions Wage Survey Job Title Warehouse Worker Wage Survey Job Description Receives, stores, and distributes material, tools, equipment, and products within establishments. Reads production schedule, customer order, work order, shipping order, or requisition to determine items to be moved, gathered, or distributed. Conveys materials and items from receiving or production areas to storage or to other designated areas by hand, hand truck, or electric hand truck. Warehouse Selector Picks merchandise for shipment according to current orders Uses a headset or pick sheet to locate items within the warehouse Removes products from warehouse shelves and places products on pallets, with a pallet jack or forklift, following stacking policies to prevent product damage Verifies product and quantity accuracy Materials Handler Loads, unloads, and moves materials within warehouse Reads work order or follows verbal instructions to ascertain materials or containers to be moved Source: Economic Research Institute, 2018 Cushman & Wakefield NorCal Logistics Center 17

19 Appendix Selected Wage Survey Job Titles and Descriptions Wage Survey Job Title Warehouse Supervisor Wage Survey Job Description Supervises and coordinates daily activities of workers engaged in materials movement or handling, receiving, loading, unloading, transporting, stacking, order filling, shipping, and maintaining stock in a storeroom or warehouse. Reviews shipping or receiving orders and requests for movement of materials and products. Develops work schedules and assigns work to subordinates. Shipping & Receiving Clerk Verifies and keeps records on incoming and outgoing shipments and prepares items for shipment. Compares identifying information and counts, weighs, or measures items of incoming and outgoing shipments to verify information against bills of lading, invoices, orders, or other records. Records receipt of incoming materials and equipment. Forklift Operator Operates and drives gasoline-, liquefied gas-, or electric-powered industrial truck equipped with lifting devices, such as forklift, boom, scoop, lift beam and swivel-hook, fork-grapple, clamps, elevating platform, or trailer hitch, to push, pull, lift, stack, tier, or move products, equipment, or materials in warehouse, storage yard, or factory Moves levers and presses pedals to drive truck and control movement of lifting apparatus Positions forks, lifting platform, or other lifting device under, over, or around loaded pallets, skids, boxes, products, or materials, or hooks tow trucks to trailer hitch, and transports load to designated area Source: Economic Research Institute, 2018 Cushman & Wakefield NorCal Logistics Center 18

20 MATT POREBA L St. NW, Suite 700 Washington, DC matthew.poreba@cushwake.com SARAH EISENBERG W Wacker Drive, Suite 3000 Chicago, IL sarah.eisenberg@cushwake.com ANDY MACE Williams Road York, PA andy.mace@cushwake.com KEITH GENDREAU American Blvd. West, Suite 200 Minneapolis, MN keith.gendreau@cushwake.com