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If there was a consistent message from six business leaders who gathered at a forum organized by Supervisor David Haubert and his team, it was the high cost of living.
Or, as Topcon HR executive Tim Weyland put it, “the cost of labor.” Topcon is a division of a Japanese company that has gone through a private equity buyout. Long-time CEO Ray O’Connor, well known to leaders in the valley, was been replaced after a 20-year run.
It operates internationally (when I was first dug into Topcon for an article several years ago, the feature video on its website showed the overnight repaving of runways at Germany’s busiest hub airport in Frankfurt). He told the crowd at a conference room at Patelco’s Dublin headquarters that they still manufacture and install their positioning equipment in Livermore and are delighted their facilities are at the first exit at the bottom of the Altamont Pass.
Two other manufacturers, Gillig buses and Lam Research likely are equally happy their facilities are just a couple of exits further west on Interstate 580. Gillig sets its shifts to avoid peak commuter hours while Lam runs buses from San Joaquin County.
That said, Weyland wrestled with workforce location, given a family could move to their Iowa location, buy a home and live comfortably on what they pay.
Stephen Baiter, head of the East Bay EDA facilitated the event, and pointed out that Alameda and Contra Costa counties had about a $300 billion GDP with manufacturing accounting for about 17% of that number. He emphasized the strength of the manufacturing economy in the East Bay, which may be a surprise to people who focus on the tech and life science companies here. The Tri-Valley’s GDP is estimated at $45 billion.
Contrary to some reports, Chris Homs, whose business is retail and works with 40 brokers, said they have plenty of interest in the right product in the right location. Their team has been challenged by a lack of the right product.
For Kevin Fyrer, vice-president at Misson Valley Properties, he recalls a long process he went through with the city of Dublin over the prime undeveloped parcels on Tassajara Road stretching from Interstate 580 north. Two rejections finally led to a painstaking process with plenty of citizen, elected official and staff input that resulted in a project that most people believe is reasonable. It mixes retail, entertainment and housing.
Matt Taylor, a CBRE executive vice-president, works with manufacturing companies on factory sites worldwide. Their top concern is availability and abundance of electrical power. Like Topcon, there’s also concern about how the tariffs established by President Trump will play out.
There was some cautious optimism among the builders about the June revision to the environmental laws that clears the way for infill apartment and for-sale units through a deal with Gov. Gavin Newsom and legislative leaders. The state is putting serious pressure on local governments, but market-rate apartments have not been penciling for several years. It’s taken government subsidies that resulted in few projects other than affordable projects.
All of the panelists who commented liked the Tri-Valley because of its central location and blue-collar workforce in San Joaquin County and a reverse commute, including BART, for professionals who lived elsewhere in the Bay Area. They also stressed the importance of open communication between government (staff and elected officials) and their businesses.
Pam Galley, senior vice-president of Kaiser Permanente and area manager for the sprawling Diablo Region (Tri-Valley, Eastern and Central Contra Costa County) stressed that the collaboration she sees with the Innovation Tri-Valley Leadership Group that brings business leaders together with government leaders routinely.
It’s the “secret sauce” to the area.
