The Inland Empire is a key hub in California’s logistics network, facilitating the flow of goods from the state’s ports to the rest of the country. California’s trade sector is a national economic engine, supporting more than one in 51 jobs statewide.

A proposed bill that would impose strict restrictions on warehouse development could threaten the economic vitality of the Inland Empire and beyond. Assembly Bill 98, which would establish mandatory buffer zones between warehouses and sensitive sites such as homes, schools and hospitals, would severely disrupt the national supply chain, drive up consumer prices and eliminate well-paying middle-class jobs that are vital to this region.

One of the Inland Empire’s most important economic drivers is its logistics and warehousing sector. As the gateway through which 40% of the nation’s goods pass, Southern California’s ports and the Inland Empire’s warehouses are essential. This proposal, crafted in secret at the end of the legislative session with no public input, limited stakeholder participation, and no public process, will reduce the state’s capacity to handle goods. At a time when inflation and the cost of living are already high, the last thing California families need is legislation that makes everyday goods more expensive.

In addition, the logistics industry in the Inland Empire provides thousands of well-paying jobs that pave the way to the middle class. These jobs often do not require a college degree, making them accessible to a wide range of individuals who might otherwise struggle to find work to support their families. On average, they pay $87,000 per year and provide opportunities for Latino workers in particular to provide for their families. Restricting warehouse development would not only hinder job creation, but could also lead to job losses as companies move operations to other states or countries with more favorable regulatory environments. Texas, South Carolina, Mexico and Canada would be happy to take on these jobs.

We’ve seen this before. California’s regulatory environment continues to influence companies’ decisions about whether to locate or expand their operations in the state, particularly in the Southern California region. Since 2006, Southern California’s port complex and associated supply chain network have lost $23 of their market share to competing states. This loss in market share has resulted in fewer well-paying jobs and lower local and state tax revenues. This includes more than 45,000 jobs lost annually in Southern California, $3.86 billion in lost labor income, $43 billion in cumulative losses to the regional economy, $590 million in lost local and state tax revenues for Southern California governments, and cumulative revenue losses to state and local governments of $4.5 billion.

The economic impact of this proposal would not be limited to Southern California. California’s entire supply chain would be affected, from Southern California ports to the stores and homes across the state that rely on timely deliveries of goods. Delays and disruptions in the supply chain would lead to shortages and higher prices for consumers, creating a ripple effect that would impact the state’s entire economy.