The Trade and Logistics Report

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• Create Date June 2, 2025
• Last Updated July 20, 2025

The Trade and Logistics industry cluster is a pillar of economic strength for Southern California and the entire state of California, facilitating the movement of goods across the nation and beyond. As the largest trade gateway in North America, Southern California’s world-class infrastructure— including the San Pedro Bay Ports (Los Angeles and Long Beach), extensive highway and rail networks, major air cargo hubs, and a vast warehousing and distribution system—ensures the efficient flow of goods for businesses and consumers.

In 2022, the Trade and Logistics industry cluster directly employed nearly 902,400 workers (including payroll workers and self-employed individuals) in Southern California, supporting a total of nearly 2 million jobs across the region, including 565,460 indirect jobs and 493,600 induced jobs created through spending linked to the sector. The industry cluster contributed nearly $497.6 billion in total economic output, including $289.6 billion in direct output, and generated $157 billion in labor income, making it one of the most significant economic drivers in the region. Additionally, economic activities directly and indirectly tied to the Trade and Logistics industry cluster generated a total of $93.3 billion in tax revenues in 2022. Of this total, 25 percent was directed to local governments, 31 percent to state governments, and 44 percent to the federal government, highlighting the industry cluster’s substantial fiscal impact at all levels of government.