The Inland Empire Strikes Back: How One California Region is Winning the Battle for Business.

RIVERSIDE, Calif. -- With California businesses leaving the state for greener pastures and lower costs in areas like Phoenix, Denver and Austin, one California region is striking back.

The Inland Empire Economic Partnership (IEEP) was formed to actively recruit companies from Los Angeles, San Diego, Orange County and the Bay Area looking to leave California, to instead move their businesses to the Inland Empire -- a region that includes San Bernardino and Riverside Counties and is located roughly 50 miles east of Los Angeles County.

This little known area is quickly turning into one of the state's hottest new hubs for business. From high technology (there are 223 high-tech companies in the Inland Empire) to manufacturing (MagLite, Ashley Furniture, Fleetwood RVs and Accurate Fishing Reels are just a handful of the manufacturers located there), the Inland Empire is not only striking back, but they are striking while the iron is hot.

"Companies are coming here because of the Inland Empire's lower costs of living and doing business," said Paul Hiller, CEO of the Inland Empire Economic Partnership. "The Inland Empire offers significant benefits to companies outside of California, who have compelling reasons to be doing business here, and those already in California, who need to relocate but don't want to pack up and leave the state."

The median home price in the Inland Empire is 31 percent lower than that of Los Angeles County; 47 percent lower than Orange County; 43 percent lower than San Diego County; 38 percent lower than Santa Barbara County; and 45 percent lower than Ventura County.

With access to 27 local colleges and universities and more than 250,000 degreed workers, CEOs relocating to the Inland Empire are able to recruit the best employees, says Hiller.

"What's happening here in the Inland Empire is good for California," said Hiller. "CEOs are moving their businesses here instead of leaving the state. Plus, we're recruiting companies not just from California, but from outside the state to bring in fresh revenue streams."

The tremendous growth in the Inland Empire is compelling:

As reported in The Wall Street Journal, the Inland Empire will see 2.1 million square feet of new office space in 2005, a region where "with easy money and no shortage of sites, developers are scrambling to build offices, warehouses, apartments and shopping centers" (April 27, 2005).

In addition, a recent report released by regional economist John Husing estimates that the Inland Empire will add 40,100 new jobs in 2005. That's nearly 60 percent more jobs than will be created in either Orange or San Diego counties. Plus:

--The Inland Empire is ranked number one in the country for new construction of manufacturing/industrial facilities (Source: Torto Wheaton).

--Riverside and San Bernardino counties rank third in the country for hot residential real estate investment markets (Source: The New York Times, March 1, 2005).

The Inland Empire Economic Partnership includes the following cities in Riverside County: Banning, Corona, Moreno Valley, Norco, Perris and Riverside; and the following cities in San Bernardino County: Barstow, Chino, Colton, Fontana, Grand Terrace, Hesperia, Needles, Ontario, Rancho Cucamonga, Rialto, San Bernardino, Twentynine Palms, Victorville and Yucca Valley.