Slowdown Looms for U.S. Warehouse Capital
The Inland Empire of Southern California has been experiencing a significant slowdown since the height of the pandemic. Large corporations such as Amazon and Walmart, with their massive warehouses, are bracing for tough times ahead, as jobs become scarcer and prices continue to rise in California. With the state grappling with banking and tech crises, many are questioning whether it is the best choice for their manufacturing needs. While California is the fifth-largest economy, some believe that it must brace for a mild recession in the near future.
According to a recent study, supply chain activity in the Inland Empire is currently at its lowest point in over six years, reflecting the rapidly shifting economic landscape. Unemployment in the region has also hit an all-time high of 4.4%, with many attributing this to low wages and a lack of job opportunities that provide value to workers.
Costco, the membership-only warehouse chain, has significantly expanded across the U.S., boasting over 600 locations.c