State of the Inland Empire Economy: 60% of Logistics Jobs Face Automation

In a region long dominated by logistics and low-wage labor, the conversation is shifting—toward clean technology, advanced manufacturing, cybersecurity, and most importantly, people.

That’s the message shared during the longest-ever episode of Inland Insight with IECN, hosted by Inland Empire Community News co-publishers Manny Sandoval and Denise Berver. The podcast featured an in-depth conversation with two of the region’s leading voices in economic and workforce development: Matthew Mena, Senior Director of Inland Economic Growth and Opportunity (IEGO), and Esmeralda Vasquez, Executive Director of the Inland Empire Labor Institute (IELI).

Across nearly two hours, the discussion covered how inclusive growth, community-centered planning, and better coordination between labor, education, and business can shape a more resilient economy in the Inland Empire.

Building an Economy That Works for the IE

IEGO was formed in 2017 as part of a Brookings Institution regional economic development study and now serves as a central convener for sector-based planning, grant coordination, and labor market reporting.

“We’re targeting what are called ‘tradable sectors,’” said Mena. “Those are sectors where we actually produce something here and ship it out—like advanced manufacturing, clean technology, and cybersecurity. These are industries where we can influence growth, wages, and sustainability.”

IEGO focuses on three core functions: regional strategy and coordination, labor market data distribution, and providing research for CTE (Career Technical Education) program approval across the region’s 12 community colleges. According to Mena, that level of alignment is crucial for accessing state and federal resources.

“We’ve seen the lack of coordination cost our region—whether that’s duplicating efforts or missing out on grant opportunities,” he said. “IEGO doesn’t always need to be the lead agency, but we help everyone move together.”

Turning Labor Market Data into Action

Mena also emphasized IEGO’s monthly labor market “pulse” reports as a key tool in interpreting complex economic data for local application.

“We take the federal and state labor reports and make them edible—something the Inland Empire can understand and use,” he said. “It affects everything from interest rates to real estate and economic forecasting.”

The reports are available at iegocollaborative.com, and Mena encouraged listeners to sign up.

The Labor Institute’s Mission: Equity, Not Just Access

Vasquez’s organization, the Inland Empire Labor Institute, evolved out of the AFL-CIO’s local labor council in the 1990s. Today, the nonprofit serves as a regional advocate for a worker-centered economy, representing the interests of more than 400,000 union-affiliated workers across Riverside and San Bernardino counties.

“We want equitable—not just equal—opportunity,” said Vasquez. “That means mortgage-sustaining wages, benefits, retirement. Those shouldn’t be luxuries.”

IELI focuses on pre-apprenticeship programs, technical assistance, worker protections, and advocating for Community Benefits Agreements (CBAs) and Community Workforce Agreements (CWAs) that require local hiring and worker training as part of development projects.

Breaking Down Barriers Between Labor and Business

One of the key takeaways from the episode was the importance of early collaboration between labor, business, and public agencies.

“We’re doing things that haven’t been done before,” said Vasquez. “We sat down with an international company looking to expand here, and Matt and I were able to bridge that conversation between the company and labor. We can bring the skills and training. They just need to tell us what they want.”

Mena agreed: “Instead of labor being seen as an adversary, let’s have the conversation at the beginning—when the project is still being scoped, when budgets are being set. That’s how you build a healthy economy.”

The Case for Community Benefits Agreements

Vasquez, whose organization regularly advocates for CBAs and CWAs, noted that many local leaders are hesitant to adopt them due to concerns about delays or added requirements.

“Some say it makes the job harder—and yes, it does, but doing things right from the start is always harder,” she said. “But it pays off.”

Mena added that many businesses simply don’t know the benefits of CBAs, such as increased community buy-in, reduced hiring costs, and higher worker morale. “A warehouse might be producing drones or electric vehicles, but all the community sees is a big wall,” he said. “Outreach matters.”

Logistics, Automation, and What Comes Next

Both Mena and Vasquez warned of the region’s overdependence on logistics and warehousing, a sector vulnerable to automation.

Citing a recent meeting with the City of Riverside’s Economic Development Department, Vasquez shared a stark statistic: “Sixty percent of logistics jobs could be automated by 2035.”

“People have put all their eggs in one basket,” she said. “We have to diversify, or we’ll face massive unemployment.”

Mena echoed those concerns. “We’ve lost more than 6,000 logistics jobs already. The seasonal hiring headlines are misleading—it’s a net neutral because they vanish in January,” he said.

Immigration Policy and Economic Fear

The discussion turned emotional as Vasquez and Mena addressed the fear among immigrant workers in the region amid changing federal policy.

“When people are afraid to leave their homes, they stop shopping, they stop spending. It hurts everyone,” said Vasquez. “These are our neighbors. They’re paying taxes, contributing to GDP, and yet they’re living in fear.”

She called for more proactive employer policies—such as protections for DACA recipients or training on how to respond to immigration enforcement.

“There are schools where staff are asking, ‘What do we do if ICE comes?’ We need better policies across every institution,” she said.

Mena noted that business investment slows when there’s policy uncertainty. “If you don’t know whether tariffs or immigration rules will change in six months, how can you make hiring or real estate decisions?”

Addressing the Inland Empire’s Talent Flight

Another challenge raised was the loss of homegrown talent. Nearly 25 percent of Inland workers commute out of the region for higher-paying jobs.

“Our biggest export shouldn’t be our people,” said Vasquez. “We have young, diverse talent. Why not keep them here?”

Mena added that without local jobs requiring degrees, students have little incentive to stay or even pursue higher education. The region’s bachelor’s degree attainment rate hovers around 17 percent—well below the national average.

Training That Actually Leads Somewhere

Vasquez pointed to the failure of many CTE and apprenticeship programs to result in actual employment.

“It’s predatory in some cases,” she said. “People spend time and money training for a job that doesn’t exist—or pays below a living wage.”

Mena noted the disconnect between the speed of educational program development and the pace of industry change. “It takes three years to launch a CTE program. By then, the industry has already moved on,” he said.

He called for a shift toward skill-based training rather than job-specific pipelines: “We need to teach transferable skills. You don’t have to train for HVAC to be stuck in HVAC. Maybe those skills apply to EV manufacturing.”

From Thrive to Action: $14 Million in Investments

Both IEGO and IELI co-convened the Inland Empire’s participation in the state’s California Jobs First (formerly CERF) initiative. That included development of the Thrive Report, which synthesized community input from over 500 stakeholders.

From that effort, the region received $14 million to continue work on priority sectors and fund pre-development grants for early-stage projects and business ideas.

“This is money for people who have an idea but no fiscal plan,” said Mena. “We’re now on round three of $3 million in grants to support projects that align with our regional vision.”

Vasquez emphasized the equity angle: “No more economic planning in back rooms. We’re inviting historically excluded voices into the room—youth, immigrants, workers.”

Co-ops, Worker Ownership, and Aging Workforces

As older generations of business owners near retirement, Mena and Vasquez highlighted the need for succession planning and new ownership models.

“One solution we’re exploring is ESOPs—worker-owned companies,” said Mena. “In manufacturing, people stay for 20+ years. Why not let them own the company?”

Vasquez said IELI is piloting co-op programs with small businesses like Slow Bloom Coffee in Redlands, Mercado 536 at the Garcia Center for the Arts, and Future First Film.

“These are real examples of how a community can build wealth,” she said.

Advice for Jobseekers and Businesses

As the Inland Empire adapts to workforce automation, economic shifts, and policy uncertainty, both guests offered parting advice.

“There’s help out there,” said Vasquez. “You don’t have to figure it all out alone. We’re building an ecosystem where people can access support—whether it’s technical skills, job placement, or career planning.”

Mena encouraged businesses to keep investing. “We’re the fastest-growing region in California. If we continue coordinating efforts, there’s no reason we can’t become the next center of innovation.”

Learn More or Get Involved

• IEGO: iegocollaborative.com | Instagram: @iegocollab
  
• Inland Empire Labor Institute: ielaborinstitute.org | Instagram: @ielaborinstitute
  

For jobseekers, both encouraged visiting local AJCCs (America’s Job Centers of California), operated by the San Bernardino County and Riverside County Workforce Development Boards, which offer federally funded training, resume support, and job placement resources.