Tag Archives: manufacturing

Rail Car MFG Building Anchors CleanTech Manufacturing Center

cleantechAnsaldoBreda is planning to set-up operations in Los Angeles to anchor CRA/LA’s CleanTech Manufacturing Center (CTMC). AnsaldoBreda will bring a new, sustainable facility and nearly 1000 middle-class jobs, as a result of METRO exercising its option to purchase light rail cars from AnsaldoBreda.

The CleanTech Corridor is a four-mile long district on the eastern edge of Downtown Los Angeles that stretches from the Los Angeles State Historic Park (formerly the ‘Cornfields’) at the northern end to the CTMC at the South, including both the east and west banks of the Los Angeles River. The CTMC is located at the intersection of 15th Street and Santa Fe Avenue in the downtown industrial core at the northern terminus of the Alameda Corridor Improvement Project and within the Central Industrial Redevelopment Project Area.

The project will consist of a 240,000 square-foot light rail car manufacturing facility on 14 acres of the CRA/LA-owned, 20-acre CTMC site.  The CTMC is a former Brownsfields Revitalization site purchased by CRA/LA from State of California in 2008 for $14 million with the goal of attracting job rich clean tech businesses to Los Angeles.

American Apparel To Continue Operations in Downtown L.A.

Clothing Maker Inks 10-Year Deal With Landlord Meruelo Maddux

The Downtown-based garment maker American Apparel has reached a 10-year agreement with landlord Meruelo Maddux Properties to stay in its 800,000-square-foot, Warehouse District headquarters, according to American Apparel financial filings.

Although American Apparel’s lease expired in December 2008, it has continued to occupy the pink factory building at Seventh and Alameda streets. The extension comes more than fourth months after Meruelo Maddux, Downtown’s largest landlord, entered bankruptcy.

Prior to reaching the deal, American Apparel, which employs about 5,000 workers at the 747 Warehouse St. factory, was mulling a move. The company considered an old Boeing plant in Long Beach, among other potential new homes, said their real estate broker.

“There were other considerations, other buildings to look at, but Meruelo stepped up,” he said.

American Apparel represents Mereulo Maddux’s largest tenant, both in terms of the size of its space and the value of its former lease.

Terms of the new lease were not disclosed.

American Apparel CEO Dov Charney said the lease was agreed to this month, but declined to comment further on the deal. Richard Meruelo, CEO of Meruelo Maddux, could not be reached immediately Tuesday afternoon.

In addition to housing almost all business operations, the factory has also served as a massive billboard for the company to promote itself and its progressive, often immigration-oriented political messages. American Apparel can also now safely cling to its various mottos touting its “Made in Downtown L.A.” cache.

The building’s sprawling parking lot is also known as the site of festive blowout warehouse sales that draw thousands of young buyers looking for discounted t-shirts, leggings, short shirts and underwear.   by Ryan Vaillancourt, Staff Writer, Downtown News.

Forever 21 Purchases Two Large Buildings

Forever 21, the large garment manufacturer of young women’s clothing, has acquired two large buildings in the past year.  The first building is the 370,000 square foot Overland Terminal facility at the intersection of Alameda St and Olympic Blvd in Downtown Los Angeles with a price of $20 M.  This multistory building has parking and dock high loading.  The second purchase was in the City of Vernon on Sierra Pine Ave.  This collection of several Class B buildings totals near 130,000 square feet.  Forever 21 was the tenant in the buildings and the sale price was approximately $6.5 M.

The company is based in Downtown Los Angeles and occupies several hundred thousand square feet of buildings at Alameda St and 20th St.

The City of Vernon And Its Industries

city-of-vernon-aerial1

The City of Vernon is the smallest among the cities of Los Angeles County when ranked by geographic area or population. The city’s economic impact, however, is far larger than one might expect. Indeed, as one of Los Angeles County’s “industrial cities” – along with the Cities of Commerce and Industry – Vernon is a vital economic center.

Given its industrial profile, Vernon plays its biggest role in the Food Manufacturing area. Vernon-based food product companies employ almost 10,700 workers, more than 15% of the Los Angeles County total for this group. Vernon also plays an important role in the region’s Fashion–Apparel and Textile Design/Manufacturing/ Wholesale industry cluster, with more than 11,200 employees or 10.66% of the L.A. County total.

Other regional industry clusters in which Vernon plays a large role include Furniture and Home Furnishings (with an employment share of 5.53%), Fabricated Metal Products and Industrial Machinery (with 3.4%), Toys (with 2.4%), Auto Parts (also 2.4%), and Wholesale Trade and Logistics (with nearly 2%).

Vernon, due to its historic role as a meat packing center, has long been home to a variety of animal waste processing and rendering industries. Rendering, for those who don’t know, is a process that converts waste animal tissue into stable, value-added materials such as lard, tallow or bone meal. Rendering can refer to any processing of animal byproducts into more useful materials, or more narrowly to the rendering of whole animal fatty tissue into purified fats.

Sources: City of Vernon, California Employment Development Department (QCEW data series), LAEDC.

Labor Market Update – Continued Gloom Along with Other Indicators

USA-IMMIGRATION/AMERICANAPPARELThe Bureau of Labor Statistics released its latest U.S. Labor Market Report on Friday, covering the U.S. employment situation in December, and the news was depressing.  Total nonfarm employment fell by -524,000 jobs in December, and the job losses in October and September were revised down to -584,000 jobs and -423,000 jobs respectively.  In percentage terms, employment has declined by -1.12% in the last three months.  This was the biggest three-month decline since mid 1980 and before that, the first three months of 1975 (Both years saw severe recessions).

Leading Economic Indicators

The manufacturing and construction sectors continued to shrink, with job counts plunging by -791,000 jobs and -632,000 jobs respectively compared to December 2007.  In manufacturing, about 46% of the total job losses came in just four sectors:  motor vehicles & parts (-162,000 jobs and counting), furniture manufacturing (-71,000 jobs), wood products (-76,000 jobs), and textiles & apparel (-56,000 jobs).

Labor market conditions have deteriorated significantly in recent months, and the damage is spreading rapidly.  About 55% of the jobs lost during 2008 were in manufacturing and construction.  However, that share has been dropping recently, as jobs are disappearing in almost all sectors of private industry (except health services, private education, and mining).  The nation’s unemployment rate hit bottom in March, 2007 at 4.4%, when 6.7 million workers were jobless.  By last month, the number of workers without a job had grown to 11.1 million, an increase of 4.4 million unemployed.  The nation’s labor markets are quite troubled, and more bad news is likely in the next few months.

Although these data are countrywide, the Southern California and Los Angeles economies are not unlike them.  These leading indicators are likely an omen of decline for the local warehousing and manufacturing industries and the real estate they occupy.