IE Business Daily Business news for the Inland Empire.
IE Business Daily hosted the annual Inland Empire Economic Outlook by economist Dr. Jay Prag, Clinical Professor of Economics and Finance at the Masatoshi Ito and Peter F. Drucker School of Management. We spoke with local business leaders, Jeff Burum, founder of National CORE and Mark DiLulllo, CEO of Threshold Aviation Group on the state of the economy and what they thought Prag would predict for 2026.
Q: What is your view of the local economy as it stands now, and where do you expect your organization be in the future?
Burum: National CORE is an affordable housing provider, so in many ways it can better sustain downturn because the need for housing never goes away. But it’s really about government funding. Interest rates can negatively affect anything. But I think we’re positioned well. We’ve been through sluggish periods before.
I think the Inland Empire economy is in a good position to rebound. Hopefully the war with Iran will end in the next month or so and we can get back into a normal flow of oil. But if it continues, and oil supplies continue to be choked, it will have a ripple effect everywhere.
DiLullo: The Inland Empire remains one of the fastest-growing regional economies in California, with a population of roughly 4.6 million people and continued business expansion driven by its strategic location in the Southern California logistics corridor. Even with higher interest rates and development costs, the region continues to attract companies because of its transportation infrastructure and room for growth.
At Threshold Aviation, we see that growth reflected in aviation activity. As more businesses operate in the Inland Empire, demand for efficient business travel increases. Our focus is on continuing to develop aviation services and infrastructure at Chino Airport to support the region’s expanding business community.
Q: Do you see a connection between a healthy community and a healthy economy?
Burum: I think healthy communities can only help the economy. How people perceive their lives, whether they’re enjoying their day-to-day life, has a lot to with how the economy performs.
DiLullo: Yes, they are closely connected. Strong communities create the foundation for economic growth. When a region invests in infrastructure, education, and quality of life, it attracts businesses, investment, and talent. In turn, a healthy economy supports jobs, local services, and long-term community stability.
Q: What are some of the recreational activities that are important to your area?
Burum: I think the recreational activities in the Inland Empire are abundant, but we haven’t done a good job of advertising them. In the future, I hope we take take advantage of the park space that we have, and that we become known for that. I hope we connect all of that park with our sports teams and our youth clubs, That will help get the word out that we’re one of the best places to live.
DiLullo: One of the advantages of the Inland Empire is that we’re blessed with excellent weather and easy access to outdoor activities. Many residents spend weekends skiing in the San Bernardino Mountains, enjoying lakes like Arrowhead or Perris, or heading into the desert for hiking and off-road recreation.
The region also has a strong aviation culture. Recreational flying is very popular here, and airports like Chino Airport support an active community of pilots who fly simply for the enjoyment of it.
Q: Jay Prag has been pretty accurate in his forecasts. What do you think we’ll hear from him this year?
Burum: I think we’re going to hear Jay say that he’s apprehensive, considering the state of the market right now, and that the economy is in a tight spot.
DiLullo: Jay has done an excellent job over the years identifying the trends shaping the Inland Empire economy. I expect he’ll talk about the region’s continued growth, while also addressing some newer developments—such as the recent cooling in the warehouse sector, the impact of global trade on our logistics industry, and the importance of diversifying the regional economy. Those are all factors that will influence the Inland Empire’s next phase of growth.
Q: Why do you think it’s important for the community to get together and share their ideas on a healthy economy?
Burum: Because I think if you’re going to have a vision for a future, you’ve got to have a vision that the business leaders agree upon. Our vision should be that we need to start growing, and we need to think larger. In the past, not approaching things from that standpoint has held up back.
DiLullo: Strong regional economies are built through collaboration. When business leaders, educators, local government, and community organizations come together, it creates a better understanding of the challenges and opportunities facing the region. Conversations like this help generate ideas and partnerships that support long-term economic growth.
Q: Where is the Inland Empire poised for the most growth and opportunity?
Burum: First I would say real estate, which has always been an economic driver in the Inland Empire. I think the new sports complex in Ontario offers a lot of opportunities, along with the convention center. Those are regional benefits, not just city benefits. There also lot of opportunities around Ontario International Airport.
DiLullo: The Inland Empire continues to benefit from its strategic location and available space compared with other parts of Southern California. The region has become one of the country’s most important logistics and distribution hubs, which supports a wide range of related industries. That creates continued opportunity in logistics, manufacturing, healthcare, and aviation, particularly as investment in transportation and infrastructure keeps pace with the region’s growth.
The Inland Empire is still growing and there’s a lot of opportunity ahead. With the right investment in infrastructure and continued cooperation between business and the community, this region has a very strong future.
