Warehouse

The Inland Empire is becoming the warehouse capital.

Friday, April 3, 2015 – 09:30 a.m.

The Inland Chorus of cheerleaders is back in full swing.

Instead of rah-rah-rah over the black hole known as San Bernardino International Airport, it’s all about warehousing and logistics.

Yep, warehouses are going to save us.

The glut of $10-$15 an hour jobs is purportedly going to drive the Inland Empire into prosperous times. Remember that unemployment benefits pay essentially $10 an hour.

I haven’t written about him in a long time. But Local Economist John Husing, the guy who didn’t see the 2008 housing collapse coming, is once again showing up in local news on an almost daily basis.

For the past few years Husing has been pimping the logistics sector as the basis for a prosperous local economy.

Local cities have been rezoning vacant land for a plethora of newly-constructed tilt-up masonry warehouses.

The pace is dizzying.

Warehouses that generate few high-paying jobs. Warehouses that generate little property tax, because the inventories can’t be assessed by counties. Warehouses that distribute inventories with trucks that wear on local roads and highways, built and maintained with tax dollars.

But local officials were snookered regardless.

The meaningful jobs being generated in the IE are in healthcare and government. Not warehousing.

Another low paying sector, food services and leisure is also seeing some growth. But then again these workers need unreported tip-income to make ends meet.

Expect multifamily housing to be pimped next.

Why? Because workers can’t earn enough to purchase homes. The median Inland Empire home price just hit $417,000.

The real money in logistics is paid to dockworkers. But I don’t see any water around here.

One has to wonder how much money is being paid to people, who dish out this pablum to the media, public and local governments?