NCBER LAEDC Los Angeles County Business Census

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NCBER / LAEDC Los Angeles CountyBusiness Census

• Greg Whitney
• Vice President, Business Development
• March 12, 2004

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Program Overview

• 6 month program
• 25,000 businesses
• 25 or more employees
• 5,000 completed surveys
• Early-warning system for at-risk businesses
• Identify key business issues

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Response Summaryby Region(Responses recd vs.
Total of Cos in Region)
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Response SummarySize of Firm(Responses recd
vs. Total Firms by Size in County)
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Response Summary By Major
Industry(Responses recd vs. Total of Cos in
the Industry in the County)
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Survey Findings

• Greatest job growth- finance, construction,
  technology, business services and services
• Greater emphasis on new equipment technology
  than employees
• Skilled labor and recruiting an issue for most
  businesses 89
• 85 of firms profitable last year
• Manufacturing sector hardest hit by government
  regulations taxes

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Survey Findings- continued

• 37 of all business acquire revenue by exporting
• 26 import goods
• 48 of manufacturers are exporting
• 44 are importing
• Small and medium sized companies project the most
  employment growth

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Projected EmploymentGrowth Rate by Industry
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Needs of Expanding Companies
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Barriers to Future Expansion
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Reasons for Relocating
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Reasons for Downsizing or Closing
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Difficulty Hiring Critical Occupations by Industry
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Summary

• Business attitudes improving
• LA County economy resilient improving
• Real jobs are still at stake
• Regulation, taxation and labor force are still
  major issues
• We need to help our businesses grow- not go!

Visit www.laedc.org for full NCBER report
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Presents Manufacturing in California Executive
Summary
Prepared by Kosmont Partners The Rose
Institute of State and Local Government February
2004
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The Keystone Group

• Who are we?
• A collaborative of the following economic
  development executives responding to reports
  about the loss of manufacturing jobs in
  California

• Coachella Valley Economic Partnership
• Economic Alliance of San Fernando Valley
• Economic Development Collaborative Ventura
  County
• Gateway Cities Partnership
• Greater Antelope Valley Economic Alliance
• Inland Empire Economic Partnership

• Los Angeles County Economic Development
  Corporation
• Orange County Business Council
• San Gabriel Valley Economic Partnership
• South Bay Economic Development Partnership
• Tulare County Economic Development Corporation
• Westside Economic Collaborative

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Manufacturing Jobs in California January 1998
September 2003
Net Job Loss lt288,000gt
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Change in Manufacturing Employment in California
Selected CountiesJuly 1999 -
October 2002
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Loss in Manufacturing Employment and Sales by
County (July, 1999 October, 2002)

• Largest net losses in manufacturing employment by
  county
• Largest net losses in manufacturing sales by
  county

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Conclusion

• California is losing substantial amounts of
  manufacturing employment and sales.
• 261,000 jobs and 98 billion in sales from July,
  1999 October 2002
• Manufacturing jobs pay especially well and are a
  ticket to the middle class.
• Almost 50 higher than the median income
• Manufacturing jobs have a high multiplier
  effect helping to create jobs in other sectors.
• Twice as high as retail jobs
• Manufacturing losses have the greatest negative
  impact on Latinos.
• Large population in California and predominance
  in manufacturing jobs

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Conclusion (cont.)

• California legislation in recent years has not
  helped manufacturing.
• Local land use policies exacerbate the loss of
  manufacturing businesses and jobs in California.
• Fiscalization of land uses
• The cost of doing business in California is
  higher than in neighboring states.
• workers compensation, paid leave, employer
  liability, health care
• 2004 Kosmont-Rose Cost of Doing Business Survey
• The social and economic consequences of this
  trend, unless reversed, will be increasingly
  detrimental to the overall quality of life in
  California.

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The 60 Mile Circle Region

• More people live here than in Florida

• Our manufacturing base is larger than Michigans

• Our GDP is the 10th largest in the world

• We are a top tourist destination

• We comprise one of the worlds

• most important consumer markets

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Population Growth 1930-2020
Source California Department of Finance
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Economic ReportsOn-Line

• NCBER Business Survey www.laedc.org
• Keystone Mfg Rpt- www.kosmont.com, www.laedc.org
• LA County 2004-2005 Economic Forecast,www.laedc.i
  nfo
• 60 Mile Circle, www.laedc.org

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Thank you

• LAEDC