December 4,2018-
United Parcel Service (UPS) is moving forward on plans for its new Visalia distribution hub this month with blueprints drawn up for a 425,000sf facility expected to employ 600. Mayor Warren Gubler says he and city manger Randy Groom met with UPS representatives about a month ago and ”they told us they want to build their plant next year and it will bring 300 more jobs to Visalia.”
UPS bought 58 acres last year at the northeast corner of Plaza and Riggin, 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.”UPS Visalia has about 274 employees now and they have told us they want to add 300 to 400 more” says Teamsters Local 948 Secretary Adam Ochoa.
”They want to start construction right away” adding that UPS wants to be operating in time for next years busy holiday season.
The UPS facility is expected to be the new Central Valley regional hub for ground shipment with room to expand if necessary. UPS is expanding its logistic 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 and Plaza Dr.
UPS has a small 40,000sf distribution center on Goshen Ave 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 the the design for the conveyor systems to handle the packages at new Visalia plant.
And business is brisk. Nationally UPS package volume has increased 4.9% in the second quarter of this year even as their domestic revenue was up 8.1%.
UPS investment in new facilities and technology appears to be paying off as they compete to deliver on time.
UPS delivered 98.3% of packages shipped during Thanksgiving week on time, according to ShipMatrix Inc. Last year during the same week, 89.2% 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 of 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 Plaza Drive. With UPS in place – demand for the remaining 400-plus acres should pick up.
Because of UPS’s plans there will likely be more of these hubs sprouting along what has been open range land on this sparsely populated north-western edge of Visalia.
With little congestion and plenty land available, UPS made a decision to invest in this property with their distribution hubs in Fresno and Visalia very busy and highly impacted by nearby development that has boxed them in — 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 — 95 million consumers.
This presence is also credited with attracting scores of other distribution centers that use UPS for overnight shipping, claims that both Visalia and Fresno boast about.
One company – Diversified Development Group of Fresno- has invested heavily in buying land and developing “spec” buildings before there are 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 tool maker Hilti Inc leased a new 166,000sf warehouse just built by DDG next to VF Corp on American Ave at Riggin. DDG also has plans for a new 700,000sf set of 4 “spec” buildings expected to break ground in 2019 at the SE corner of Plaza and Riggin.
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.