The Valley’s economy
The Antelope Valley economy has kicked into high gear.
Major manufacturing companies are expanding, major retailers are moving in, hotels are popping up, unemployment is dropping, and aerospace, the region’s leading industry, is on the upswing. There might even be a new bomber in development here, although no one is confirming that.
Perhaps the biggest economic development story is the rapid expansion in employment at Northrop Grumman, which may or may not be related to the development of the B-21 long-range strike bomber.
Northrop Grumman intends to increase its work force in the Antelope Valley by some 1,700
employees in the next two years as it expands its facility at Air Force Plant 42 in Palmdale. The company plans to grow from 3,500 workers to 5,200.
Northrop Grumman is starting development of the B-21, but the company and the Air Force are closed-mouthed about the program. Antelope Valley officials said they have been told it will be assembled in Palmdale.
Northrop was already in an expansion mode, largely from its fuselage work on the F-35 joint strike fighter program, before it won the bomber contract.
NASA Armstrong Flight Research Center is gearing up to fly a new series of manned X-planes. These experimental planes are aimed at helping develop the next generation of aircraft, moving beyond traditional designs toward more efficient, quieter, low-emission planes.
At Lockheed Martin, international interest is growing in hybrid airships that the company plans to build at the former L-1011 jetliner assembly building in Palmdale.
In Lancaster, BYD Motors, a manufacturer of electric buses and other vehicles, employs more than 600 workers. The company expects to grow to 800 to 1,000 workers.
BYD is under contract to produce electric buses for transit agencies in California, including Los Angeles Metro. But BYD also envisions producing motor coaches, airport and seaport vehicles, cars and maybe even tractor-trailer rigs.
Also in Lancaster, Lance Camper announced plans to grow its force of 500 by another 150 workers. The company added a 61,000-squarefoot building to its facilities, which already includes a 110,000-squarefoot manufacturing building and a 30,000-square-foot customer service building in the business park.
“The sun has finally broke through the clouds,” Lancaster Mayor R. Rex Parris said of the region’s economy.
In Palmdale, Kinkisharyo is manufacturing light rail cars at a site that was used in the 1980s to assemble the B-1B bomber fleet. The company’s customers include Los Angeles’ Metro rail.
Kinkisharyo will receive tax credits of more than $950,000 if it grows its work force to nearly 300 by 2019.
In addition to the increase in the size of the work force, the company is upping its investment commitment in Palmdale by $12 million.
Both cities have a focus on growing their auto dealerships. In Palmdale, CarMax opened a dealership in the Trade and Commerce Center, bringing about 100 jobs.
The city of Lancaster and its auto dealers are working on a plan to turn the Lancaster Auto Mall into a pedestrian-friendly area to encourage foot traffic.
With their sales of Ram trucks topping state rankings, brothers Tom and Tim Fuller, owners of Hunter Dodge Chrysler Jeep Ram,
decided it was time to establish a separate truck dealership. The brothers decided to establish what is believed to be the largest Ram truck center in the nation. Retail is soaring for both cities. In Lancaster, retailers and restaurants that have set up shop or have announced plans to do so include The Habit restaurant, a Dunkin Donuts, Five Below, and an Aldi grocery store.
Palmdale’s list includes Hobby Lobby, Harbor Freight Tools, Tractor Supply Co., Five Below HomeGoods, and a Turner’s Outdoorsman.
Lancaster and Palmdale are working to attract new medical services to their communities as part of their economic efforts.
In Palmdale, a developer is planning to build a $200-million-plus complex near Palmdale Regional Medical Center. The complex would include medical offices, a hotel, stores and restaurants.
In Lancaster, city officials are working on what they call “Medical Main Street,” a 300-acre area earmarked for new health care services. The area is envisioned as a regional center for health and wellness containing mixed uses, such as medical facilities, healthy restaurants, fitness-conscious retail shops and possibly residential development.
Two hotels decided to call Palmdale home: a $15.6 million, 123-room Element by Westin extended-stay hotel at Avenue P-4 and Trade Center Drive, and an $11 million, 93-room Home2 Suites hotel at the southwest corner of Fifth Street West and Avenue Q.
Even housing, hammered by the Great Recession, is seeing consistent growth in prices and foreclosures falling to pre-crash levels. And even though home construction remains barely above post-recession lows, industry observers say they are seeing homebuilders preparing the building boom.
In Palmdale, city officials are setting the stage to attract young professionals to the region. The city is trying to create “the downtown of the future” with “lifestyle housing with a buzz.”
Lancaster continues to gain national and international attention for its push to become a “net zero” city, a place that generates more energy than it consumes. It has promoted the installation of solar panels on city buildings, businesses, and schools. The city has called for new housing to include solar as part of new development, and it has streamlined permitting for owners of existing homes to add solar panels.