TRADED SECTORS
Food Processing and Manufacturing
Location quotient is a key measure of how concentrated economic activity is by sectors in a given geographic area. A location quotient of 1.0 means that the area’s sector activity is equal to the US average. Location quotients above 2 indicate significantly more intensive activity than the average. US Bureau of Labor Statistics Data for Occupation location quotients in Modesto, CA, May 2024 includes these food processing and manufacturing labor categories:
Food Science Technicians - 11.57
Food Processing Workers, All Other - 7.71
Modesto is home to international, national, regional, and local food and beverage brands including Pepsico, Frito-Lay, Del Monte, Sovena, Rizo Lopez Foods, Stanislaus Foods, and Sciabica Olive Oil.
Modesto’s employment concentration for beverage manufacturing, especially wine, is very high. The sheer scale of E. and J. Gallo, which produces a quarter of all wine in the world, overwhelmingly influences the wine industry LQ for the Modesto metropolitan area. The company employs thousands of people in various roles, from winemaking to marketing, boosting the region's overall employment in the industry.
Distribution and Electronic Commerce
Business activities such as warehousing and order fulfillment are the backbone of distribution and ecommerce. Modesto businesses include G3 Enterprises, Americold, and Cold Storage Manufacturing, Inc.
Agricultural Inputs and Services
Agricultural inputs and services in Modesto include companies like Meras, Blue Tech Water, Mid Valley Agricultural Services, Stanislaus Farm Supply, and Salida Ag Chem, offering products and services like water and irrigation services, fertilizer, crop consulting, and equipment repair. Additionally, government agencies like the Farm Service Agency (FSA) provide financial and disaster assistance, while other companies specialize in specific areas such as animal nutrition, labor, and harvesting.
Emerging Traded Sector Opportunities
Circular BioEconomy
The Circular Bioeconomy turns agricultural waste into value-added products and energy. The Northern San Joaquin Valley Region has large-scale biomass resources. Anchored by BEAM Circular, the Modesto area is developing into an accelerator for innovative bioproduct research startups that are transitioning to industrial scale operation.
Downstream Metal Products
The Metal Products Supply Chain - Upstream: This is the beginning of the supply chain and includes the mining of raw materials (like iron ore) and the initial production of crude metal; Midstream: This stage processes crude metal into basic shapes, such as coils, slabs, and billets, which serve as the raw material for downstream manufacturing, and Downstream: In this final stage, midstream products are processed through specialized mills (like plate, hot strip, and billet mills) to be rolled, formed, and fabricated into their final product form. These finished goods are then distributed and sold to consumers.
Modesto Manufacturers such as Bambacigno Steel, Diversified Machining & Fabrication, and California Steel Fabricators provide services to industry and agriculture including structural steel and iron, machining of small and large parts, mass production of custom parts, and fabrication services.
Livestock Processing
The Modesto area’s Location Quotient for Farmworkers, Farm, Ranch, and Aquacultural Animals is very high at 2.43. Regional ranching and livestock operations support meat processing in Modesto, with with businesses including Camp Fire Meats, Midstate Meat Processing, and Western Meat Processing.
Paper and Packaging
According to Fortune Business Insights, the US Paper and Packaging market is projected to reach $87.73 billion by 2032 at an annual compound growth rate of 3.72%. The food and beverage sector and ecommerce are the largest market demand drivers. Modesto businesses including Sunopta, Corrugated Supplies Company, Pacific Southwest Container, International Paper, and Graham Packaging supply a variety of sheet and corrugated paper packaging products.
Transportation and Logistics
Transportation and logistics involve the movement of goods and people, with transportation focusing on the physical act of moving and logistics encompassing the entire process of planning, managing, and executing that movement. Modesto firms include Saddle Creek Logistics Services, Mann Bros Transport Inc., and Bivio Transport & Logistics Company, LLC.
LOCAL SECTORS
Health Services
The healthcare services sector represents a significant and complex portion of the U.S. economy, comprising industries that provide medical services, manufacture medical equipment and drugs, or offer insurance.
Modesto is a regional hub for health services with inpatient and outpatient care, rehabilitation, physician and dental professionals, specialty services, and more. Major healthcare organizations including Tenet, Kaiser Permanente, and Sutter Health anchor the expanding Modesto health services sector. Modesto provides health services to all through a County network and private organizations including Golden Valley.
Modesto medical occupations with high Location Quotients accoring to the US Bureau of Labor Statistics:
Dentists 1.51
Emergency Medical Technicians 1.80
Health Technologists and Technicians, all other 1.42
Licensed Practical and Vocational Nurses 1.36
Medical Records Specialists 1.48
Registered Nurses 1.11
Respiratory Therapists 1.24
Hospitality Establishments
The hospitality establishments sector is a broad category that includes businesses providing services for lodging, food and beverage, and entertainment to guests. Key sectors include accommodations (hotels, motels), food and beverage (restaurants, cafes, bars), travel and tourism (airlines, tour operators), recreation and entertainment (theme parks, theaters), and meetings and events (event planning, conventions). Modesto’s accommodation sector includes major brands such as Marriott, Hilton, IHG, Best Western, and Wyndham as well as independent hotels.
Community and Civic Organizations
The community and civic organization sector includes a diverse range of groups that work for the public good, operating outside of government and for-profit companies. This sector encompasses nonprofits, charities, social clubs, and community-based organizations that address issues like social justice, education, and environmental conservation.
Modesto’s robust community and civic organization sector provides a broad range of services. Community and Social Service Occupations have a Location Quotient of 1.20:
Foundations and Philanthropy - Stanislaus Community Foundation
Financial Assistance and Education - Valley Sierra Small Business Development Center, El Concilio
Entrepreneurship, Small Business, Career Development - Stanislaus Equity Partners, Central Valley Opportunity Center, Digital Nest,
Housing, Homelessness and Crisis - Stanislaus County Community Services, Stanislaus Behavioral Health and Recovery Services, Center for Human Services, Salvation Army, Modesto Gospel Mission, Women's Education and Leadership League, Community Impact Central Valley, Haven Women’s Center, Habitat for Humanity, Sierra Vista Child & Family Services, Community Housing and Shelter Services
Community Outreach, and Organizing and Support - West Modesto Collaborative
Emerging Local Sector Opportunities
Commercial Services
The commercial services sector includes a broad range of businesses that provide services to support other companies and consumers, such as IT consulting, outsourcing, staffing, waste management, landscaping, real estate, event management, and travel arrangements.
Education and Training
The education and training sector encompasses all institutions and services that provide learning, from early childhood to adult and professional development, including public and private schools, universities, vocational centers, and online platforms. Promising niches include vocational training tailored for sustainable career jobs in manufacturing, healthcare, and technology.
Modesto's sustainable bioeconomy future is being built on its historical strengths in agriculture and manufacturing. Sustainable quality of living is being generated by investments in human capital including talent and workforce development, healthcare, and social services.
