“First in and first out” supply chain and economic resiliency strategy.
Placer County is the supply chain gateway in and out of California via the Interstate 80 transcontinental distribution network. More than $120M worth of goods per day pass through Placer County on I-80. Placer County is quite literally the gateway in and out of one of the largest economies in the world.
This supply chain freight movement is further strengthened by Placer’s proximity to the Sacramento International Airport, West Sacramento Port, Interstate 5 and Highway 99 connections all less than a 25-minute drive from West Placer. Roseville, Placer’s largest city, is home to the largest rail yard on the West Coast. The Bay Area ports and international airports are a two-hour drive away, and Reno, Nevada, home to a Tesla Gigafactory and more, is a two-hour drive away as well.
Like other fortuitously positioned cities and counties, when transportation routes are functioning properly, everything is great. However, there has been a notable increase in Interstate 80 being closed or reduced due to weather and climate challenges. Some of the solutions that Placer implemented may also help other jurisdictions tackle both the challenge of supply chain and economic resiliency. Let’s take a deeper look.
This year, Bosch will open its first silicon carbide chip manufacturing facility in the United States, in Placer County. With investments of $2B to retool and modernize the former TSI Semiconductor plant, this advanced manufacturing is certain to have ripple impacts and multiply investments and growth throughout the county and region. The semiconductor focus has been led by the Greater Sacramento Economic Council (GSEC) which has resulted in locating or expanding nine semiconductor fabs in the region. It has sparked partnerships with manufacturers, educators and others whom greatly strengthen the economic resilience of the region, which previously relied heavily on government employment.
While visiting Bosch in Germany last year, discussions included Placer’s incredible quality of life and how it so closely connects with their core beliefs and business culture of being a world leader in offering the best places to work around the world. Bosch recently received the certification as Great Place To Work™. It is important to recruit employers who value the existing business and educational community. Shared values lead to economic growth and resilience.
Placer County often touts its quality of life when engaging in business attraction activities. Placer’s quality of life is routinely ranked in the top three counties in California and is currently the fastest growing county in the state. Our motto? When attracting businesses, shamelessly lead with your strengths and the businesses that align will be interested.
The Placer County Board of Supervisors is laser-focused on getting growth right, which includes a thoughtfully planned balance between housing, business, agriculture and natural areas. The Placer County Conservation Program allows for natural land to be conserved, while allowing participants more certainty to develop outside of those natural areas. This program streamlines the pace for developers, especially in California where environmental regulations may be challenging. It is important that government continually improve pathways to certainty and streamlining the development process.
Continual improvement is also essential to infrastructure. The overall economic impact of Interstate 80 through Placer County exceeds $5 million per hour, so protecting the transportation network is key. The interstate is currently undergoing over $100 million in road widening and runoff enhancements that will help ensure smooth and reliable transportation of goods during the winter months, especially in the mountainous regions. Additionally, $50 million has been invested in forest health and thinning of trees to help mitigate wildfire risks, which can disrupt these important transportation networks. Funding is often coordinated with federal agencies for both transportation and forestry. The Sacramento Metro Chamber and the Placer Business Alliance both organize regular visits for their members to meet with Washington DC officials to share the prioritized needs of the region. Building these federal relationships has been essential, especially considering increased wildfires. Even more important is the regional alignment of priorities which leads to greater success and regional resilience.
Placer County’s Sunset Area is the upcoming economic engine, which has been envisioned for decades as a cornerstone for employment growth. Over the years, the Board of Supervisors has allocated funds for infrastructure investment in this roughly 8,000-acre area. These government investments are leveraged by private funds via utilities and developers.
Two major current projects in the Sunset Area are Placer One and the Placer Commerce Center. Placer One is a distinctive master planned community of approximately 2,200 acres comprised of 335-acre Campus Park Employment Center, 300-acre Sacramento State campus with a Sierra College extension, 200-acre Town Center, and approximately 5,600 residential units.
The Placer Commerce Center is an approximately 400-acre project with capacity for up to 6 million square feet of space that will attract high-wage employers in research and development, warehousing, distribution, e-commerce fulfillment, flex spaces, and in light industrial and manufacturing.
Buzz Oates anticipates investing $750 million to $1 billion over the next 20 years of buildout, and the project is being spurred forward by a $28 million infrastructure investment into west Placer by the Placer County Board of Supervisors.
Upon completion, it is estimated that between 3,500 and 5,000 people will be employed at the Placer Commerce Center, depending on end users. This hub will strengthen the supply chain as it’s located away from mountains and forest wildfires, which keeps trucks moving with fewer interruptions. This important industrial park is also located minutes away from Bosch and the new Sacramento State campus, which are both anticipated to generate spin-off and supply chain businesses. Defense industries are also likely, as Beale Air Force Base continues to expand its interests.
Placer County committed to strengthening transportation even further, by investing in the Placer Parkway, which will connect two major county highways. Highway 65 is benefiting from a $28 million upgrade, with a substantial grant received in cooperation with Congressman Kevin Kiley.
The Sunset Area is a 10-minute drive to I-80, providing superior accessibility to our county, region and the state of California. This effort has taken decades of planning and investment, and now marketing of the site begins in earnest. Teams from Buzz Oates, Placer County, and the Greater Sacramento Economic Council all collaborate on implementing business attraction strategies. Businesses are quickly realizing the reduction in supply chain risks, and the area is already benefiting from increased economic resilience.
Placer County has rail access in the Sunset Area and interestingly, it is home to a segment of the historic Transcontinental Railroad. Rail closely follows the path of the interstate throughout the county, allowing supply chain transportation options which builds even greater resiliency.
Regional airports in Lincoln and Auburn allow faster movement of employees and goods, which complements the Sacramento International Airport.
Placer County is home to several Foreign Trade Zones (FTZ), which allow companies to defer, reduce, or eliminate customs duties on foreign merchandise. FTZs are often desired by businesses involved in importing and/or storing goods, which can include advanced manufacturing and semiconductors.
Workforce development is continually mentioned as important to businesses and it’s an essential part of economic resilience. In Placer County, several partnerships have formed to strengthen workforce development. This includes Sierra College, which has been instrumental in providing pathways for employers to meet their workforce needs. Sierra provides not only degree programs, but many certificate programs designed for career and technical education. In a very short timeframe, Sierra instituted a certificate program for Bosch and now have employees hired by Bosch to work in the new Roseville facility.
The Roseville Chamber of Commerce has been a US leader in the Talent Pipeline Management program, created by the US Chamber. With a focus on sectors such as Advanced Manufacturing, Healthcare and Information Technology, this employer-led workforce development program is already yielding tangible benefits. Healthcare providers who used to compete for graduates, now collaborate on creating more opportunities for training, resulting in more employees being available for employers.
Alignment across regional partners often happens through the Sierra Workforce Summit, which convenes hundreds of partners to work together on initiatives. The collaboration ensures that top priorities are being addressed across all agencies.
It takes years of planning, funding and executing to achieve a vision like the Sunset Area, which encompasses these exciting opportunities like the Placer Commerce Center and Placer One. It also takes partnerships with other governmental agencies, developers, utilities, educational institutions and more. When the region is aligned in a vision, in this case, it’s carefully planned land use that creates a strong advanced manufacturing area with supporting infrastructure, change happens quickly. Opportunities arise when businesses realize there is an area with supply chain resilience and talented workers, and it all leads to greater economic resilience.
About the Author:
Bonnie Gore is currently the District 1 Supervisor on the Placer County Board of Supervisors in California. She focuses on fiscal responsibility, public safety, and economic development. She previously served as the Mayor of Roseville and currently serves as a board member of the Greater Sacramento Economic Council (GSEC).
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