RK Logistics Group is accelerating its growth with expansions at two South Bay sites and plans to add up to 100,000 square feet of new warehouse space next year.
The company has launched warehousing and distribution operations at a new facility in Hayward, fully subscribing the 40,200 square foot facility with clients in the semiconductor equipment and automotive manufacturing industries. RK also renewed its lease at a 42,000 square foot facility in Fremont supporting LAM Research, another semiconductor equipment manufacturing enterprise.
The Hayward facility is located at 1619 Whipple Road while the Fremont warehouse is at 40577 Albrae Street.
For its semiconductor and automotive manufacturing clients, RK has designed and deployed specialized, industry-specific programs providing dedicated warehousing, inventory stocking, optimization and management, order picking and fulfillment and on-demand expedited delivery. The operations provide just-in-time line-side manufacturing deliveries of subassemblies, components, and parts on a 24-hour basis. Other value-added services include light manufacturing such as pre-assembly and kitting.
The company is in the planning stages for a new 100,000 square foot warehousing and distribution facility in the South Bay. Expected to open early in the 2021 first quarter, the facility will provide fresh capacity to accommodate growth with current clients, as well as space for new clients. It is expected to create upwards of 50 new jobs, primarily in warehouse operations, technical support, and management.
"From mid-summer on, we've seen a surge in demand for quality warehouse capacity staffed with experienced associates," noted Rock Magnan, president of RK Logistics. "And it's not letting up. We're currently putting that growth into our Hayward and Fremont facilities, where we expect to hire another three managers, six supervisors, and up to 40 hourly employees by the end of this year."
Magnan added that the employment market remains constrained in the Bay Area, with competition for warehouse workers stiff, and is expected to become even tougher as eCommerce fulfillment and parcel carriers begin hiring workers for the seasonal holiday surge. As a result, RK Logistics has increased its compensation for warehouse workers to an entry-level base of $20.00 per hour for an applicant with no experience, up to as much as $25.00 an hour for a candidate with qualified work experience.
Eligible RK associates can also earn extra pay as they qualify for performance achievement, referral and retention bonuses, which collectively can mean an additional $8.00 an hour. RK also has added attractive features to its benefit program including free flu shots for employees. "We're investing in building capacity as well as in bringing on associates who want stable, long-term employment in a great work environment with competitive pay," Magnan said.
He added that RK's focus on the local high-tech industry also is attractive for prospective employees. "We're working with some of the Silicon Valley's most successful and innovative companies," he noted. "RK associates have the opportunity to engage with and support high-tech and automotive manufacturing, as well as pharmaceutical, medical device, high-value engineered building products, retail consumer goods and just-in-time eCommerce replenishment."
Magnan noted that local businesses which import manufactured components from overseas also can take advantage of RK's Foreign Trade Zone (FTZ) operation, which is certified for pharmaceutical and medical device handling, and is the South Bay's only certified, general purpose FTZ.
The certification allows Silicon Valley manufacturing and importing companies to benefit from various trade policies and practices that can reduce administrative regulatory costs and associated tariffs and duties for imported goods, while protecting the integrity of high-value products in a secured environment.