Advanced manufacturers follow the workforce to this region.
When people talk about the future of advanced manufacturing on the West Coast, they tend to mention names like Intel, Tesla, Boeing, Raytheon and Northrop Grumman. But often the real unsung heroes of this sector aren’t toiling away in the large labs and shop spaces of the world’s biggest companies. In many locales, they are working for mom-and-pop shops that have been there for decades.
Case in point: San Bernardino County, California. Stretching from the eastern boundary of Los Angeles to the Arizona border, this 20,000-square-mile county of 2.2 million people is a gem of manufacturing know-how. While it certainly has its fair share of spotlight-grabbing corporate names like Amazon, FedEx and other Fortune 500 firms, the manufacturing prowess of San Bernardino County is often found in small businesses that do their best work far away from the glittering lights of Hollywood.
Spend just five minutes listening to Harry Smith talk about his experience running Alger Precision Manufacturing in Ontario, California, and you quickly learn how integral his company’s location is to the firm’s sustained growth and success.
“We started here in 1958,” says Smith, president and CEO of Alger, an advanced manufacturer of precision component parts for a variety of industries. “We have been here in the same building since the 1960s. This area was mostly dairy farms and vineyards back then. It was not the wild west, but it was close to it.”
That’s not the case anymore. Smith has seen the surrounding county go on to become one of the fastest-growing places in Southern California. Alger has grown with it, now employing more than 100 skilled workers and looking for more. The firm recently invested more than $1 million into new leading-edge equipment, which will enable Alger to expand its business into more product lines.
Skilled Workers Drive Location Strategy
When asked why he chooses to stay in Ontario, he sums it up in one word: “workforce.” “About 70% of our workforce lives in the county,” Smith says. “Our work requires skilled labor; and that labor migrated from the South Bay 50 years ago to this area today. As real estate on the coast became more expensive, manufacturers moved out this way. Tooling, lubricants and other essential manufacturing shops are all local to this area now. San Bernardino County is an attractive place to be for all the suppliers you need.”
Smith adds that “every time we think about relocating, we think about our 125 employees. If we moved to Arizona or Nevada, we would lose so much of our workforce that we would be out of business.”
Transportation assets in the area help too, he says. “We are only a mile from Ontario International Airport. There is a FedEx and UPS hub there. That helps with shipping. We are also close to the Port of Long Beach, and we receive some material from there.”
Alger produces about 80 million to 90 millions parts per year. Over the last 20 years, the firm has made nearly 2 billion parts. “Most are made out of brass, but we also do aluminum and steel,” says Smith. “These are fairly heavy parts. They are found in plumbing, fire suppression systems, and fittings on hoses to gas pumps. Our expertise is in engineering design, manufacturing and assembly.”
Finding qualified workers is not a problem for Alger, adds Smith. “We partner with all the local trade schools that we can,” he says. “We use the Industrial Technical Learning Center [InTech] at Chaffey College. But for the older machines that we use, the equipment is so specialized that we have to train the workers ourselves. But we are willing to partner with anyone who wants us.”
Smith says Alger operates two facilities that total about 85,000 sq. ft., but he admits they are running out of space. “We are the largest company on the West Coast that does what we do,” he says.
Contract Drug Maker Saves Lives
Also growing robustly in the county is Amphastar Pharmaceuticals. The company announced that it intends to quadruple its domestic manufacturing capacity at its Rancho Cucamonga headquarters. The firm develops, manufactures and markets complex generic and proprietary injectable, inhalation and intranasal products.
Alger Precision Manufacturing in Ontario produces up to 90 million metal parts per year.
Photo courtesy of Alger Precision Manufacturing
“Expanding our domestic manufacturing footprint is not only a strategic milestone for Amphastar, but also a reaffirmation of our commitment to producing essential medicines in the U.S.,” said Dr. Jack Zhang, president and CEO of Amphastar. “All our finished pharmaceutical products are proudly manufactured in the U.S. This long-term investment strengthens the commitment, enhancing our ability to deliver greater flexibility, agility and quality to the health care providers and patients who depend on our products every day.”
Dan Dischner, senior vice president of human resources and corporate communications for Amphastar, says the company will invest $150 million to add 200,000 sq. ft. of manufacturing, lab and support space. The expansion creates 500 new jobs, he says, noting that the new positions will be in manufacturing, quality assurance, engineering, research and development, and administrative support.
“Our work requires skilled labor; and that labor migrated from the South Bay 50 years ago to this area today. San Bernardino County is an attractive place to be for all the suppliers you need.”
— Harry Smith, President & CEO, Alger Precision Manufacturing
When asked why Amphastar selected Rancho Cucamonga for this investment, Dischner says that “Rancho Cucamonga has been home to Amphastar since our founding, and it remains the ideal location for our continued growth. The city offers a strategic advantage due to its proximity to major transportation corridors and an airport, which are essential for efficient distribution and supply chain operations. We’ve also benefited from a supportive local government, access to a skilled and diverse workforce, and strong regional infrastructure. This combination allows us to scale our operations while maintaining the quality and reliability our customers expect. Our long-term investment in Rancho Cucamonga reflects our confidence in the area as a hub for pharmaceutical innovations and domestic manufacturing.”
Dischner says there is a lot to like in Rancho Cucamonga. “What we value most about doing business here is the strong sense of community and the region’s pro-business environment,” he says. “The city and county have been incredibly supportive of our growth, offering a collaborative atmosphere that makes it easier to expand and innovate.”
Amphastar Pharmaceuticals in Rancho Cucamonga is embarking on a $150 million plant expansion project to quadruple production capacity.
Photo courtesy of Amphastar Pharmaceuticals
Meaningful local incentives and workforce development programs helped seal the deal, notes Dischner. “A reasonable permitting process helped reinforce our commitment,” he adds. “The support we’ve received from the city and county leaders reflects a shared vision for building a stronger, innovation-driven economy right here in the Inland Empire.”
He cited the government of San Bernardino County as being especially responsive to Amphastar’s needs. “We view them as long-term partners in our mission,” he says.
This Investment Profile was prepared under the auspices of San Bernardino County. For more information, contact the County’s Economic Development Department at 909-387-4460. On the web, go to www.SelectSBCounty.com.
The Fab School Molds Students into Metalsmiths
One reason manufacturers love doing business in San Bernardino County is the fact they know they can count on The Fab School to deliver best-in-class workers.
Located in Rancho Cucamonga, The Fab School exists to give students technical and hands-on skills to become marketable candidates for immediate entry-level employment in metal fabrication, welding, digital design and manufacturing, and carbon fiber industries. The Fab School curriculum combines theory with practical, hands-on shop training in real-world applications.
This training equips graduates to go out and become immediately employable at off-road, aerospace, automotive and manufacturing companies. Around 50% of the students are military and they are able to take advantage of programs backed by the GI Bill.
Troy Johnson is the founder of The Fab School in Rancho Cucamonga.
Photo courtesy of The Fab School
Most importantly, The Fab School delivers results not found at any other training institution in Southern California. Students attending classes at The Fab School attain a 98% on-time graduation rate and a 91% career placement rate.
Tim Rasmussen, owner of Viking Metal Craft, is a 2009 graduate who says that he still draws upon that training every day in his job as a metal fabricator for off-road racing vehicles and ornamental iron railings. How good is he at his craft? The suspension he custom-made for an off-road truck racing team won the famed NORRA 1,000 race in back-to-back years in Mexico’s Baja California Desert.
To learn more about the mission and work of The Fab School, we turned to its founder, Troy Johnson.
How did you become a premier hands-on training school? What training need are you focused on?
JOHNSON: It started as a small school with the sole purpose of training a few fabricators that could help me in my fabrication shop building off-road vehicles. Word spread as the industry was starving for skilled labor, and the demand for education took off. We have spent the past 20 years refining the program by working closely with industry professionals on what skills are valuable in the current workplace. It started as welding and off-road fabrication and has grown to full metal fabrication, Computer Aided Drafting, and carbon fiber for automotive, aerospace and general manufacturing.
What enables you to achieve a 91% career placement rate for your graduates?
JOHNSON: Three factors drive our placement rates: First, the industry is in demand for skilled trades professionals. For years the number of retired blue-collar workers has been greater than those starting in these careers. Second, we have a network of 1,700 employers nationwide that hire our graduates and trust the knowledge and skills they learn. Lastly, we have a dedicated team that works with our students on resumes, interviewing and setting up employer presentations.
Do you have any particular success stories you can share about recent graduates?
JOHNSON: Fabian Marischal Rivera is a recent graduate of our carbon fiber program and started his own company called Carbon Concepts in Camuy, Puerto Rico. Fabian creates custom fenders, fairings and body panels for all types of motorcycles as well as custom parts for watercraft vehicles. He has also started his own clothing line based on his company name. Fabian’s company builds and ships custom parts all over the world.
How are you funded?
JOHNSON: We are privately owned, and students are responsible for tuition. There are several ways to pay for tuition including student and parent loans through federal financial aid, private loans, and for military veterans we accept GI Bill benefits.
What is the greatest talent demand for your students right now and why?
JOHNSON: Welding, but more specifically, TIG welding. TIG welding is very versatile and works well with several types of material and is common among most industries.
Why is the military community such a vital component in your ongoing success?
JOHNSON: Nearly 40% of our student base is comprised from ex-military personnel. Most of these men and women already have experience working with their hands while enlisted, so this is a perfect transition for them. They often step up as leaders and help guide some of our younger students who just graduated high school.
