Image via flickr.com
Written by John Lindt
United Parcel Service (UPS) is moving forward on plans for its new Visalia distribution hub this month.
Blueprints call for a 425,000 square foot facility expected to employ 600 people.
Mayor Warren Gubler said he and City Manger Randy Groom met with UPS representatives about a month ago. â€They told us they want to build their plant next year and it will bring 300 more jobs to Visalia,â€ Gubler said.
UPS bought 58 acres last year at the northeast corner of Plaza and Riggin avenues, the first development that would be north of Riggin in the industrial park.
Asked about the plan, a UPS spokesman said they had no comment.
But local Teamsters, who have a contract with UPS, say they have been advised of the plan.â€ UPS Visalia has about 274 employees now and they have told us they want to add 300 to 400 more,â€ says Teamsters Local 948 Secretary Adam Ochoa.
â€They want to start construction right awayâ€ adding that UPS wants to be operating in time for next yearâ€™s busy holiday season.
The UPS Visalia facility is expected to be the new Central Valley regional hub for ground shipments with room to expand if necessary. UPS is expanding its logistics hubs all around the country as they struggle to handle the ever-increasing demand from online shopping.
Community Development Director Nick Mascia says the city is working directly with UPS and their contractor on a plan that would place the new distribution facility on the north end of the property with vehicular access from both Riggin Avenue and Plaza Drive.
UPS has a smaller 40,000 square foot distribution center on Goshen Avenue they will no longer need once the large new highly automated facility opens. Mascia says in their building design process they are working first on a design for the conveyor systems to handle packages at the new Visalia plant.
And business is brisk. Nationally UPS package volume has increased 4.9 percent in the second quarter of this year even as their domestic revenue was up 8.1 percent.
UPS investment in new facilities and technology appears to be paying off as they compete to deliver on time.
UPS delivered 98.3 percent of packages shipped during Thanksgiving week on time, according to ShipMatrix Inc. Last year during the same week, 89.2 percent of parcels shipped through UPS Express were delivered on the day they were promised, meaning about 3.3 million packages a day arrived late.
The Wall Street Journal say UPS has added 22 new or retrofitted automated facilities in the U.S to handle the crushing volume of packages arriving at our front doors.
In August 2017, UPS purchased the 58 acres in Visalia’s industrial park. The big block of land was bought from developer Central California Logistics Center who had available some 480 acres of land north of Riggin Avenue on both sides of Plaza Drive. With UPS in place, demand for the remaining 400-plus acres should pick up.
Because of UPSâ€™ plans, there will likely be more of these hubs sprouting along what has been open-range land on the sparsely populated northwestern edge of Visalia.
With little congestion and plenty of land available, UPS made a decision to invest in this property with their distribution hubs in Fresno and Visalia. Those hubs have been very busy and highly impacted by nearby development that has boxed them in â€” thwarting any kind of future major expansion.
For years, Visalia has promoted its center-state location and the presence of a major UPS transportation hub with access to 98 percent of California’s population via overnight delivery â€” 95 million consumers.
This presence is also credited with attracting scores of other distribution centers that use UPS for overnight shipping, claims about which both Visalia and Fresno boast.
One company, Diversified Development Group of Fresno, has invested heavily in buying land and developing â€œspec,â€ â€” or speculation â€” buildings before firm commitments. DDG has three developments within a block of the new Visalia UPS complex and expects more deals as large as 1 million square feet.
Recently, power toolmaker Hilti Inc. leased a new 166,000 square foot warehouse just built by DDG next to VF Corp. on American Avenue at Riggin Avenue. DDG also has plans for a new 700,000 square foot set of four â€œspecâ€ buildings expected to break ground in 2019 at the southeast corner of Plaza and Riggin avenues.
Helping to highlight the location of these properties is the completion of the new $36 million Betty Drive interchange, less than two miles away at Highway 99. This will speed truck traffic in and out of the Visalia Industrial Park.