Experts talk about business expansion in Lodi
Amazon on Monday announced plans for a second order fulfillment center in Stockton, prompting business experts and Lodi officials to examine what they can do to encourage their own economic growth.
Jeffrey Michael, executive director of the Center for Business and Policy Research at University of the Pacific’s Eberhardt School of Business, said that Lodi could benefit from Stockton’s expansion.
“Amazon, if it isn’t already, is on its way to being the largest private employer in San Joaquin County,” Michael said. “This will be the fourth fulfillment center in the county, plus a large cargo operation at the Stockton Airport, and some of those jobs are available for people in Lodi.”
Lodi has seen its own economic growth in recent years, Michael said, particularly in the food processing, winery and tourism industries.
“I feel like Lodi is doing relatively well,” Michael said. “There’s been a lot of residential growth, a lot of business growth.”
Steve Schwabauer, Lodi city manager, said Amazon chose Stockton due to the proximity to Stockton Metropolitan Airport, and Lodi’s lack of access to an airport makes it more challenging to attract air freight services such as Amazon.
Although cities in southern San Joaquin County such as Tracy have a higher concentration of freeways than Lodi, making them better suited for ground transportation, Schwabauer said Lodi does attract manufacturing businesses.
“A lot of people in the plastics business come to Lodi because we have reliable power, and a lot of their plants need power running 24/7,” Schwabauer said.
Cepheid, a company that manufactures cartridges used to read genetic codes of diseases, has been a large employer in Lodi, Schwabauer said, with one facility on South Main Street and plans for a second on Guild Avenue.
“We certainly do have success in areas that are our central core, but shipping and warehousing don’t tend to be our central core just because of our geography,” Schwabauer said.
Lodi also has plans to hire a new economic development manager in the next few months, Schwabauer said, who will help new businesses obtain governmental approval, act as a liaison for the city’s economic development incentives and coordinate energy-efficiency compliance reporting.
“In general, they’ll be our go-to person for economic development,” Schwabauer said.