Building a Sustainable Future
Feb. 27, 2014
Juan D. De Lara, USC
Demystifying The Debate on Logistics
• Argument One: Logistics offers a path
to the middle class, especially in the
wake of post 1990s blue collar
manufacturing job losses
• Argument Two: The logistics industry
creates precarious low wage jobs and
places hardships on region’s large
pool of blue collar workers
• Argument Three: Logistics is an
unsustainable development path that
destroys low density land use and
contributes to deadly environmental
outcomes.
Source: http://www.oltmans.com/wp-content/plugins/soliloquycrop/crop/crop.php?src=http://www.oltmans.com/wp-content/uploads/inland-empiregateway.jpg&a=c&w=725&h=395&q=100
Juan D. De Lara, USC
What’s Really Going On?
We figure some things out by looking at the data
First let’s look at out how logistics is measured.
Unpacking the Black Box of Logistics
• Created as a category to
capture growing importance
of goods distribution.
• Based on specific industrial
sectors.
• The way this category is
constructed affects how we
measure it and what the
data tells us.
Source: http://blog.jda.com/wp-content/uploads/2013/06/Internet-Age-Logistics1.jpg
Unpacking the Black Box of Logistics
• Regional planners measure
the logistics industry by
aggregating data for the
following eight economic
sectors:
–
–
–
–
Warehousing and Storage
Wholesale Trade
Couriers
Support Activities for
Transportation
– Truck Transportation
– Air Transportation
– Rail Transportation
Source: http://blog.jda.com/wp-content/uploads/2013/06/Internet-Age-Logistics1.jpg
Logistics Sector Looks Good on Paper
Thousands
Logistics Sector Employment, 1990-2012, Inland Empire
120
100
80
60
40
20
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Quarterly Census of Employment and Wages, 2002
Juan D. De Lara, USC
Logistics Sector Looks Good on Paper
Logisitics Sector Annual Income - Inland Empire
Average Annual Wages, 2012
$49,660
$52,208
$45,994
$43,758
$40,274
$37,336
Wholesale
Trade
Air
Truck
Transportation Transportation
Support
Activities for
Transportation
Couriers and
Messengers
Warehousing
and Storage
Source: Quarterly Census of Employment and Wages, 2002
Juan D. De Lara, USC
EMPLOYMENT GROWTH – RIVERSIDE COUNTY
Industry Size, Pay, and Growth
(Bubble size represents total employment in 2010)
$85,000
Annual Average Earnings ($2010)
Management of Companies and
Enterprises
Finance/
Insurance
Manufacturing
Mining
Construction
Utilities
Professional/
Scientific/
Technical
Health Care/
Social Assistance
Information
Wholesale
Trade
$45,000
Real Estate
Retail Trade
Transportation/
Warehousing
Education
Agriculture/Forestry/
Fishing & Hunting
Accommodation/Food
Other Services
(except Public Admin)
$5,000
-100.0%
-50.0%
0.0%
Arts/Entertainment/Recreation
50.0%
100.0%
150.0%
Administrative & Support/ Waste
Management & Remediation
-$35,000
Employment Growth (%), 2000-2010
PERE, USC
But Let’s Take a Closer Look at Warehouse Work
Source: http://www.latimes.com/local/la-me-brown-immigration20131006,0,5441798.story#axzz2rrkVSPxM
Source: http://www.pri.org/sites/default/files/story/images/RTX487T.jpg
Blue Collar Warehouse Occupations (BLS)
• Shipping, Receiving, and
Traffic Clerks (435071)
• Stock Clerks and Order
Fillers (435081)
• Laborers and Freight,
Stock, and Material Movers,
Hand (537062)
• Packers and Packagers,
Hand (537064)
• Industrial Truck and Tractor
Operators (537051)
Source: http://allstaffingwarehousing.net/wp-content/uploads/2012/05/Truck-loading-unloadingcollage-5-24.jpg
Juan D. De Lara, USC
Blue Collar Warehouse Occupational Wages
Total Workers
Occupations
Hourly Median Wage
2007
2010
2007
2010
Shipping, Receiving,
and Traffic Clerks
(435071)
Stock Clerks and Order
Fillers (435081)
Laborers and Freight,
Stock, and Material
Movers, Hand (537062)
9,330
8,860
$12.80
$13.86
23,520
24,010
$10.23
$10.66
33,320
32,100
$9.96
$11.18
Packers and Packagers,
Hand (537064)
12,270
11,380
$8.90
$9.36
Industrial Truck and
Tractor Operators
(537051)
11,190
8,940
$13.63
$14.47
Source: 2007 and 2010 OES
Juan D. De Lara, USC
Blue Collar Warehouse Occupations
Median Logistics Income by Gender and Job Type: Inland
Empire
$35,000
Both Sexes
$22,000
$27,000
Female
$19,000
$38,000
Male
Non Blue-Collar Jobs
Blue-Collar Jobs
$23,000
Male
$38,000
$23,000
Female
$27,000
$19,000
Both Sexes
$35,000
$22,000
Juan D. De Lara, USC
Racial Disparities
Median Annual Wages
Logistics
All Other Industries
$36
$35
$30
$36
$36
$30
Thousands
$26
$22
White
Latino
Black
Asian
Source: ACS 2007 - 2011
Juan D. De Lara, USC
What About Temp Workers?
Temporary Employment – Inland Empire
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
-
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Employment 25,9 28,6 36,0 40,6 41,6 36,7 30,4 26,4 29,3 31,2 30,3
QCEW: 56132 Temporary Help Services
Wage Comparison
Direct Hire vs. Temporary Worker Income
Median Wage: 20+ Hours Per Week
$22,000
$10,067
Temp Warehouse Workers: All
Industries
Direct-Hire Warehouse Workers:
Logistics
Source: ACS 2007 - 2011
Juan D. De Lara, USC
We Need More Data on Temp Workers
Juan D. De Lara, USC
What About the Environment?
Juan D. De Lara, USC
Environmental Costs
Diesel Related Cancer Cases - IE
Place
Year
Total Population
Cases Per
Million
Total Cancer
Cases
Riverside
2005
1,923,731
485
933
San Bernardino
2005
1,974,119
712
1,406
Inland Empire
2005
3,897,850
-
2,339
Source: Author’s analysis of SCAQMD data
Juan D. De Lara, USC
Logistics and the Future of Inland Southern California
Social Context: Tremendous Population Growth
Source: ACS 2007 - 2011
Juan D. De Lara, USC
Changing Demographics
1980
1990
2000
2010
Total
Share
Total
Share
Total
Share
Total
Share
White
1,143,447
73%
1,616,253
62%
1,541,053
47%
1,546,666
37%
Latino
290,280
19%
686,096
27%
1,228,962
38%
1,996,402
47%
Black
78,670
5%
178,525
7%
251,769
8%
322,405
8%
Asian/Pacific
Islander
24,139
2%
100,792
4%
146,183
4%
272,815
6%
Native American
17,288
1%
24,905
1%
38,083
1%
46,399
1%
1,558,182
-
2,588,793
-
3,254,821
-
4,224,851
-
Total
Source: ACS 2007 - 2011
Juan D. De Lara, USC
Share of Total Population Growth, IE
Latino
Asian/Pacific Islander
Black
Native American
White
100%
82%
79%
80%
60%
46%
40%
20%
38%
7% 10%
7%
1%
13%
11%
7%
2%
1%
0%
1%
-11%
-20%
1980 - 1990
1990 - 2000
2000 - 2010
Source: ACS 2007 - 2011
Juan D. De Lara, USC
The Immigration Question
Population
Total
% of Total Population
4,081,371
-
Foreign-born population
911,982
22.34%
Naturalized U.S. citizen
359,249
8.80%
Not a U.S. citizen
552,733
13.54%
Total population
Source: ACS 2007
Juan D. De Lara, USC
Final Thoughts
• Need to Move From Begging
For Scraps to Innovation
• We Can't Afford Policy
Approaches that Rely on LowRoad Strategies
• Cheap Real Estate and Low
Wages Isn't Sustainable
• The Era of Low Wage, Mostly
Latino Labor Has to End
• This Is Not A Latino Problem,
This Is A Regional Challenge
• All Hands On Deck
2010
2010
Total
Shar
e
White
1,546,666
37%
Latino
1,996,402
47%
Black
322,405
8%
Asian/Pacific
Islander
272,815
6%
Native American
46,399
1%
4,224,851
-
Total
Juan D. De Lara, USC
Final Thoughts
• Need to Reframe Infrastructure =
• Build social infrastructure
• Investment in education
• Need to leverage industry growth
to achieve greater regional
equity
• Los Angeles benefits from
port-based development
• How can we reframe growth
to address regional
disparities?
Juan D. De Lara, USC