Labor Trends and Industrial Real Estate Dynamics Across 16 Key Western U.S. Markets
The Western U.S. industrial market benefits from strong demographic fundamentals, with a population of nearly 49.4 million projected to grow 2.7% over the next five years, supporting consumer-driven logistics and manufacturing demand.
Nearshoring and reshoring have reinforced manufacturing and distribution activity across the region, particularly along the U.S.–Mexico corridor. Rising labor costs and heightened union activity—especially in California—are prompting occupiers to accelerate automation adoption and rethink workforce strategies. These dynamics are reshaping site selection as companies seek locations with deeper labor pools and invest in technology-driven facilities to mitigate long-term labor risk.
Looking ahead, large-scale manufacturing investments are expected to drive additional growth as suppliers and secondary businesses enter the market to support these operations.
Key Takeaways:
- Population & Income Strength: 49.4M residents with 2.7% growth projected; median income of $100K supports strong consumer demand.
- Industrial Demand Shifts: Logistics dominated historically, but manufacturing is gaining momentum amid high tariffs and major corporate investments.
- Market Moderation & Outlook: Softer economy and shifting port activity have tempered demand, but large-scale manufacturing projects signal future growth.
The West Region Industrial Labor Report External Link highlights 16 key metropolitan areas located near major industrial markets across California, Oregon, Washington, Idaho, Colorado, Nevada and Arizona. It examines the dynamics of industrial labor supply and demand within the warehouse and manufacturing sectors, as well as trends in industrial space utilization throughout the region.
This report focuses on the West Region, part of Cushman & Wakefield’s comprehensive Americas Industrial Labor Insights series. For a full regional perspective, visit our Americas Industrial Labor Insights.
