north bay business journal economic summit 2.25.2010 [autosaved]

2010 Sonoma State UniversityEconomic Outlook Conference

Developing a Regional Strategy to Attract & Retain JobsThe View from Solano

Presented byMike Ammann, President

Solano Economic Development Corporation

The Fundamentals of EDO

• Leadership from both the CEO & from its governing group; whether it’s a board of directors, a Mayor or a Governor

• a professional, innovative & hard working staff;

• a well funded organization so that you can stand out above the crowded competition;

• a compelling “product” so that you have something to sell such as a “shovel ready sites” research park, industrial & commercial parks or unique incubators –something that differentiates you as a community.

• Now let’s discuss Solano and it’s strategy

San Francisco REGIONAL HIGHLIGHTS

• Counties: Alameda, Contra Costa, Marin, Napa, San Benito, San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano and Sonoma.

• Total Nonfarm jobs grew by 12.3% from 1995-2008, although Nonfarm jobs declined by 4% from March 2008 to March 2009. (This does not include Farm or Private Households jobs.)

• The region’s population grew 1.1% while total employment (including Farm jobs) declined 4.2% and the average annual wage grew by 22.2% (2001-2007).

• 95.7% of all businesses have fewer than 50 employees. • 9% of the population reported as self-employed. • The region’s Gross Domestic Product (GDP) grew 33.4% in five

years.

Sacramento REGIONAL HIGHLIGHTS

• Counties include: El Dorado, Placer, Sacramento, Sutter, Yolo and Yuba.

• Total Nonfarm jobs grew by 34% from 1995-2008, although Nonfarm jobs declined by 5.1% from March 2008 to March 2009.

• The region’s population grew 11.8% while total employment (including Farm jobs) grew 10.4% and the average annual wage grew by 23.8% (2001-2007).

• 96.2% of all businesses have fewer than 50 employees. • 10.4% of the population reported as self-employed. • The region’s Gross Domestic Product (GDP) grew 91.2% in

five years.

Solano - Center of Eastward Expanding SF-Sacramento Mega Region

NorCal Mega Region = 24M Pop 2050

7 Unique Cities in Solano County

Benicia, Dixon, FairfieldRio Vista, Suisun City,Vallejo & Vacaville

1989 – 2008 Population Increase +172,312

1980 to 2000 – Rapid Change

• Economy dominated by agricultural commodities & major military installations.

• Major transition with close of Mare Island Naval Base in 1993 from WWII employment peak of 40,000 to 5,800 workers.

• Genentech announces it will locate its new $250 million manufacturing facility on 100 acres in Vacaville, California, on October 31, 1994.

Solano Leads Recession In - Not as Deep - Nonfarm Payroll Change

-4.9%

2.0%

0.7%

1.5%

2.4%

1.3%

2.1%2.6%

-1.1%

1.1%

2.3%

0.4%0.3%0.6%

-2.4%

-1.3%

0.4%

-1.7%

-2.4%

-5.0%-4.3%

-4.0%-4.3%

-3.6%

-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

Marin-SF-

San Mateo

Silicon Valley East Bay Napa-

Sonoma

Solano Sacramento

2006 2007 2008 2009

Percent changes of nonfarm payroll employment, based on annual averages. Not seasonally adjusted. Source: CAEDD.

12-Mo. Payroll Employment Change December 2009

-5.9

-4.7

-4.5

-3.4

-3.4

-2.6

-2.5

-2.0

-1.7

-0.5

-0.5

0.0

0.1

0.6

-6 -5 -4 -3 -2 -1 0 1

Construction

Prof. & Business Serv.

Government

Manufacturing

Retail Trade

Wholesale Trade

Leisure & Hospitality

Finance & Real Estate

Transp. & Utilities

Other Services

Information

Mining & Logging

Agriculture

Education & Health Serv.

East Bay

Unit: thousand workers. Changes in payroll jobs between December 2008 and 2009. Not seasonally adjusted. Source: CAEDD.

Year-over-Year House Price Change

-3.8%

-7.7%

-6.2%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

97 98 99 00 01 02 03 04 05 06 07 08 09

US Average California East Bay

Housing Is Recovering

Solano Index & Cluster Studies

http://www.solanocounty.com/economic index

Major Economic Restructuring Trends

• Continued eastward migration from Bay Area.

• Higher educated family forming commuters looking for housing affordability resulting in today 75,000 leaving each work day.

• Clusters forming in life sciences, energy, trade & logistics (Travis AFB & wine) , health care, higher education (UC Davis, Touro, U of Phoenix, SCC expansions), specialized mfg & food processing (Jelly Belly's, Clorox, & Budweiser)

7 Growing Industry Clusters

• A diverse mix of sectors ranging from – life sciences – trade and logistics– health services – advanced food, beverage– other specialized manufacturing – professional services – construction

• Total clusters represent 40% of all jobs since 1995 – up from 28%.

• Population ripple effect on increased retail, residential construction & service demand.

Retention & Growth of Travis AFB

• Travis AFB is the largest employer in the City and Solano County with a workforce consists of 14,353 military members and civilian employees.

• Economic impact of over $1.6 billon annually.

• $350M investment over 5 years with new C-17 wing 13 air craft along with C-5 and KC -10

UC Berkeley /NationalLabs Innovation Hub

Livermore/Sandi Labs

Innovation Hub

UC DavisInnovation Hub

Greater East Bay Innovation Zone

Fostering regional innovation in energy by building on competitive advantages

Solano’s ED Goals for the Next Decade

• Retention and growth of Travis Air Force Base, Solano's largest employer

• Double life science cluster to 5,000 high wage job

• Energizing the retention and greening of existing carbon-based energy companies, while attracting the rapidly expanding clean energy companies that are creating new careers to meet clean air regulatory requirements of reducing CO2.

• 3 million more consumers by 2035 will increase demand for locally grown agriculture products and cause expansion of Solano's existing food processors and the location of new.

• Bar bell population of young and old will increase Health & Social Services which grew by 5 percent during 2007-08. A decade of investment in new and renovated health care facilities now ranks Solano among the finest in Northern California. West coast only remaining major military hospital and major prison medical facility. .

Michael AmmannPresident, Solano EDC

360 Campus Lane, Suite 102Fairfield, CA 94534

Toll Free (888) 864-1855mike@solanoedc.org

Contact Information