Report: Attention should be directed toward education 

These are some of the trends uncovered in an economic profile of Ontario, prepared by Inland Empire economic analyst John Husing. 

The city's economy continues to chug along at a healthy clip and should in the foreseeable future, the report says, but underneath the vibrant commercial activity are several areas of concern. 

"Economically, the city of Ontario is one of Southern California's true success stories," Husing says. "It's in a lot better shape than some of the other cities I look at." 

In an inch-thick booklet of data, charts and graphics, Husing calls Ontario the economic hub of the Inland Empire, benefiting mostly from its location near transportation corridors: Interstates 10 and 15, the Pomona Freeway, three rail lines and a commercial airport. 

He also compliments city leaders for eyeing 8,200 acres in south Ontario for annexation to build larger, more expensive homes to improve the city's aging housing stock. 

In 1997, Ontario's 56 new home sales lagged far behind Fontana, Riverside, San Bernardino and Rancho Cucamonga. And existing home values are at 1988 levels, averaging about $108,542. 

Ontario is less educated than its neighbors, Husing says. Just 39.5 percent of residents have attended at least some college versus 48 percent for the region. Only 11 percent of Ontario's adults have received bachelor or graduate degrees versus 15 percent for the region. 

"If I was going to put my finger on a place where the community should focus its attention, that's it," Husing said. "That's a long-term issue." 

And about 16.9 percent of Ontario residents collect welfare, Medi-Cal or food stamps, Husing said, which is slightly above San Bernardino County's 16.2 percent average but down from 1997 levels of 20.2 percent. 

The economic forecast looks good. Ontario's eastern half, quickly growing into a warehouse and commercial center anchored by the Ontario International Airport, the Ontario Convention Center and the Ontario Mills mall, should provide the region's center of commerce for the next seven to eight years, Husing says. 

Land is plentiful, and firms are moving or expanding from Los Angeles and Orange counties to eastern Ontario for cheap labor and location. 

Industrial and commercial growth is raising the average pay for Ontario's work force, which jumped from $25,781 per worker in 1991 to $27,772 in 1996. That, however, did not match inflation, leaving the average worker with $1,036 less in purchasing power. 

Employment jumped 25.6 percent, or by 14,200 jobs between 1991 and 1996, and averaged 5.0 percent growth, far above the 0.6 percent to 3.7 percent for the rest of the region. 

Most of the new jobs were created in the transportation and distribution sector, which accounted for 22.2 percent of the work force in 1996 and averaged $28,622 per worker, nearly as high as industrial pay. 

A big bright spot is retail sales, which reached a record $2.2 billion in 1997, nearly as much as the $2.3 billion the region's largest city, Riverside, collected. 

Much of that credit goes to the two-year-old Mills mall, which generated $4 million in sales tax last year and proves, says Mayor Gus Skropos, that Ontario benefits both from location and city leaders who pursue commerce to boost the tax base. 
"Next year we'll overtake Riverside," he predicted.