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Case Study: Optech
While the majority of companies in the country are decreasing business activity, Optech’s supply chain management division has been growing.
Increased client activity in California necessitated a new southwest location for their second twin-plant operation. Optech considered several locations but ultimately chose the Yuma region, in part because local forces came together to help the company achieve its short timeline (5 months from decision to operation).
Building owners on both sides of the border stepped up to complete renovations in an expedited manner. On the Yuma side, the owner had a contractor at the building the same afternoon as the company first toured the facility. Optech will occupy a 50,000 SF facility on the Mexican side of the border and 19,500 SF of warehouse/office space in Yuma.
Optech received $70,000 for training and employee wages on the U.S. side and the State of Sonora, Mexico, offered a tax abatement of 2% employment tax (renewable up to 10 years).
Distribution and Logistics Training
Yuma Private Industry Council was awarded a Community Based Job Training Grant to address the rapid growth in freight activity and domestic and overseas trade. The grant provides three major incentives to employers:
- CDL certification training for truck drivers. All cost completely covered by the grant.
- Forklift training for any employees. All cost completely covered by the grant.
- Logistics and Supply Chain Management 2-Year Associates Degree offered by Arizona Western Community College- Yuma. All tuition and books cost covered by grant.
Logistics and Distribution
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Annual Operating Costs for Logistics and Distribution
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Wage Comparison Distribution and Logistics
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Average Use of Electricity by State
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Incentives
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Why Yuma ?
Located near the junction of California, Arizona, and Mexico, Yuma is a natural transportation hub with over 50 million consumers within a one day truck haul via Interstate 8 or US 95 both of which run directly through Yuma County. Some of the major advantages for business in Yuma:
- Low cost labor rates
- Quick Access to Key Markets
- Significantly lower utility rates than California or Nevada
The FC "Frosty" Braden Passenger Terminal
The Southwest Arizona Port Users’ Association (SWAPU)
SWAPU is an industry organization comprising local Customs’ brokers, transportation companies, the City of San Luis, U.S. Customs & Border Protection and Mexican Customs authorities. The group gathers all of the San Luis, AZ port users together once a month and collaboratively implements practices at the port that address concerns of the parties.
Distribution
- New San Luis Commercial Port of Entry II
- New Area Service Highway
- Renovation of San Luis Port of Entry I
- Yuma International Airport
- Over 10 major trucking companies
