When a package is tracked online to see when it will arrive, most people think of the Postal Service or the courier bringing it to us. We probably won’t think of company warehouses or distribution centers in between.
However, having an adequate supply chain network includes such facilities, and during the past several years the West Valley has played an increasingly larger role in that chain.
Several companies have used West Valley real estate, in the past two years, to establish that kind of foothold in their supply chains — increasingly, along the State Route 303 corridor.
But such facilities hold a nebulous place in the employment chain for the region, with questions about how much jobs pay and how much they bring to the area’s workers.
Chris Camacho, president and CEO of the Greater Phoenix Economic Council, says not to fret; employees at these new logistics facilities are essential people for both West Valley growth and in easing supply chain struggles nationwide.
“As we come out from underneath COVID, we need jobs for all citizens,” Camacho said. “Also, yes, we want as many semiconductor plant-type technically skilled positions as possible, but we’ve got to be able to support those facilities and move goods in and out of the area. Warehouses and distribution centers are part of that support.”
Camacho said there are six or seven West Valley communities whose K-12 schools, community colleges and training centers have such an improving focusing on skilled trades that there are many potential workers in region who could catch on with a large company and quickly become valued employees.
The Valley lost about 240,000 jobs during the second quarter of 2020. As Arizona quickly rebounded, especially in the West Valley, because of fast business growth and a desperate need for more housing, the workers who came back to their jobs or switched industries demanded more, Camacho said.
“The warehouse jobs actually drag wages up,” Camacho said. “Very few places are attracting established companies to relocate and expand the way the West Valley is. It’s like the East Valley in the ’90s through the early 2000s. And the companies coming in see what’s going on across the country. They know they can’t come into a place and pay rock-bottom wages.”
Sintra Hoffman, president and CEO of Westmarc, the area’s business and government coalition, agrees with Camacho’s assessment of wages.
“That’s what I thought I was going to find, at first — entry-level employees and low wages,” Hoffman said. “But not only is the market very tight for companies who find they must pay well to beef up their staff, but very few of these employees are just moving boxes. Many of these facilities use equipment and software that requires some real training and skills.”
Hoffman said she was particularly impressed with Kent, Washington-based REI Inc.’s Goodyear facility in terms of the amount and type of technology employees train on and learn to use.
Also, she says, these West Valley distribution centers and warehouses will attract some heavier industries — and strengthen areas in which the West Valley is already strong.
“Right now, we’ve got 38% of Maricopa County’s health care workforce living in the West Valley,” Hoffman said. “And 48% of those West Valley health care workers work on this side of the Valley, near their homes. So we not only have manufacturing looking to see how they can expand here, but also medical, supply chain, hospitality industry, and more. We’ve got a lot of trained talent over here, and we need ways to keep them supplied.”
What’s ahead
West Valley cities have remained tight-lipped about plans in the works regarding luring more businesses to the region. In some cases, Hoffman said, companies and municipalities sometimes have non-disclosure agreements during negotiations to avoid tipping off competitors about things that might not lead to contracts and groundbreakings.
However, there have been some hints about how much vacant land, zoned commercial or industrial or likely to get approved for a rezone, or already-built warehouses are available along the 303.
At a Dec. 14 Glendale City Council workshop, Sarah Murley, the principal for Phoenix-based consulting firm Applied Economics, spoke about Glendale’s industrial area along Loop 303. She said there are 22 buildings currently in the foundation stage or greater, most of which have one or more future tenants already lined up.
Murley said 16 of those buildings have walls up or are further along, and six buildings are complete and occupied with tenants.
Eric Toll, communications manager for city of Phoenix’s Community and Economic Development Department, said he’s not aware of any major distribution or warehouse facilities in the works near the planned Taiwan Semiconductor Manufacturing Co. at Loop 303 and Interstate 17.
“There are no plans to encourage warehouses or distribution centers on the Phoenix lands adjoining the technology center associated with TSMC, unless the facility is related to TSMC or its vendors,” Toll said. “TSMC announced that it plans to hire at 1,700 workers. An industrial development like TSMC tends to generate five related, indirect jobs for each one direct hire. Those jobs, however, could be anywhere in Phoenix or other Valley cities.”
Buckeye, while not technically touching Loop 303 with its city limits, has distribution centers for Walmart and for variety store Five Below with the city’s access to I-10.
Buckeye has approved two preliminary plats for the Trillium Comprehensive Master Plan. That’s where a project involving sports and real estate magnate Jerry Colangelo and the Howard Hughes Corp. plan to join forces to build about 100,000 homes on the west side of the White Tank Mountains.
Camacho said he’s excited that project and its self-contained nature, with mixed-use allowing for more supply chain and light manufacturing in that northwest Buckeye plan.
Announced and completed
During the past two years, Loop 303 has been the location for more than a dozen new distribution or warehouse-type facilities for established chains.
Amazon’s new “sortation center” in Glendale opened for business this summer. The facility, off Sarival Road and Glendale Avenue near Luke Air Force Base and Loop 303, spans more than 270,000 square feet and helps with critical package sorting.
Amazon says such centers are a part of the “middle mile,” or the period of transporting packages between Amazon sites prior to last-mile delivery for customers.
In May 2020, the Glendale City Council approved plans for hard seltzer beverage manufacturer White Claw to build a distribution center. The 950,000-square-foot industrial building site in on 95 acres southeast of Reems Road and Peoria Avenue, fewer than 2 miles from Loop 303.
During summer 2020, the city of Surprise announced an Amazon “last mile” delivery station in Surprise’s Railplex District, bringing as many as 300 jobs with it.
“We are also seeing an amazing amount of retail along the Surprise portion of the Loop 303 that is providing wonderful regional amenities,” said Mike Hoover, economic development assistant director for the city of Surprise.
In Goodyear, NorthPoint Cabinetry’s distribution warehouse is a planned 116,000-square-foot facility at 215 N. 143rd Ave. Announced in April by its parent company, the facility initially will employ 20 workers and serve the company’s Western U.S. region.
In October, Abercrombie & Fitch and GXO Logistics said they planned to have a 715,000-square-foot distribution center at Thomas and Citrus roads in north Goodyear fully operational by the end of this year.
In December, Home Depot was spotted moving product into the Elwood Logistics Center, a 1.3 million-square-foot warehouse near the junction of I-10 and Loop 303 in Goodyear. The logistics center is a Class A industrial development that broke ground in February 2020.
Goodyear’s economic development director, Lori Gary, said Goodyear aims toward a well-rounded community in terms of having a variety of businesses who call Goodyear home.
“Over the past three and a half fiscal years, the city has announced 23 industrial projects,” Gray said. “Of those,, seven are advanced manufacturers, 12 (or 52.2%) are logistic companies, and four are technology companies. This shows that Goodyear has been able to attract about an equal amount of advanced manufacturers and technology companies (about 48%) as logistics companies (about 52%) to the industrial property being built in the community over the time period shown above — many of whom provide high-quality and high-paying jobs.”
West Valley attractions
Hoffman said the proximity to I-10 and trucking coming from California ports, manufacturing and agriculture is one factor fueling the building boom along that interstate and Loop 303. She said while she’s not aware of any jobs study specific to either West Valley warehouses/distribution or construction along the 303, the Luke Air Force Base noise corridor lends itself to more industry and commercial development than it does to housing.
Camacho said proximity is part of it, noting the various improvements to I-10 and other highways to handle the fast-rising volume of truck traffic.
Camacho said the willingness of municipal leaders to think progressively is part of the formula as well.
“When companies approach GPEC, one of the first things they talk about is sustainability,” Camacho said. “They look at that on their first visits to the area, saying things like ‘Our grandchildren might grow up here. What kind of a place do we want to leave for them?’”
Jason W. Brooks News Editor | Chandler Independent @JasonWBrooks2
Jason W. Brooks joined Independent Newsmedia, Inc., USA, in July 2021 as an associate editor. After a year covering Buckeye, he has covered Chandler since the fall of 2022, in addition to assisting the Daily Independent throughout his time at INI.
Education: University of New Mexico, bachelor of arts in journalism and mass communication, print emphasis, English minor.
Random Fact: He and his siblings witnessed a Space Shuttle launch and landing in the same year in person, on opposite coasts.
Hobbies: Karaoke, bicycling and American Sign Language.
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