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Disruptions from the 2019 Legislatureand Automation Policy

The Nevada Independent

Jon Ralston, EditorElizabeth Thompson, Managing Editor

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Disruptions at LVCVAand Are We Really Digging a Giant High Speed Tunnel…?

Las Vegas Convention and Visitors Authority

CEO Steve Hill

Proposed Las Vegas Convention Center Loop

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Tunneling into the Future

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LVCC Loop Station Entrance

LVCC Loop Station Interior

VehicleExperience

User Experience

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Potential LVCC Loop Station Locations

Travel Times

Potential Destination

Expansion

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UNLV and Tech

Zach MilesAssociate VP for Economic Development, UNLVExecutive Director, UNLV Research Foundation

Director, UNLV Small Business Development Center

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Paul Oh – Lincy Professor of Unmanned Aerial SystemsUniversity of Nevada, Las Vegas (UNLV)

Las Vegas Valley: Epicenter of Hospitality Robotics

Robotics. Autonomous Systems. Drones. Humanoids.

From Disaster Response to Consumer Robotics

•Catalyze Robotics •Disaster Response •Humanitarian Assistance

2011 Fukushima Disaster: $2M Prize for Disaster Response Robot

“Brother” Ohs Prize Money creates Rainbow Robotics (IPO) in Korea and Vegas

Putting Vegas on the (hi-tech) Map

• Workforce Challenges• What is “Made in Nevada”• Eco-system

Putting Vegas on High-Tech Map: Blue-Sky Project?

“Iron Man Store”: Bionics E-Sports, Holodecks World-Class R&D

Not Theme Park - Need Ecosystem:• A Marketplace: Vegas-based tech companies and stakeholders• Workforce Education and Vision (K-12 and educators)• Economic Engine: Global hospitality industry and spinoff tech

Notional Roboland: Smithsonian + Epcot + Universal Studios

What is Consumer Robotics“The engineering and research aspects of the theory, design, construction, manufacture or end use of mass market electronics, systems, software and services for consumers”.

Test Case: IEEE Consumer Robotics Winter School (CES 2017)

• UNLV Hotel School• Caesars Entertainment• Downtown Grand• Wynn• Oomba Gaming

• Savioke• Zyrorobotics• DJI• Robotis

Roboticists

Industry: Samsung Subject Experts

•Semio•Samsung •Qualcomm

Hotel Execs

Source: World Economic Forum and Accenture (Jan 2015) Industrial IOThttp://www3.weforum.org/docs/WEFUSA_IndustrialInternet_Report2015.pdf

Future of Work: Jobs versus Tasks

Today 27% 11% 24% 35% 3%

In 5-years 4% 30% 29% 11% 26%

5-year difference 23% drop 19% rise 5% rise 24% drop 13% rise

Hotel SectorMust Get

Ahead of the curve

Roboland Phase 1: RoboStudio at Research Park

33 Acres4 BuildingsEach Building4 Floors25000 SF/Floor

11.65 Acres2 BuildingsEach Building3 Floors28000 SF/Floor

9 Acres2 BuildingsEach Building3 Floors22000 SF/Floor

7.45 Acres1 Building4 Floors29000 SF/Floor

10.19 Acres2 Buildings3 Floors25000 SF/Floor 27.31

Acres4 Buildings + Parking BldgEach Building4 Floors30000 SF/Floor

August 1, 2019: Building Completion

Align Exhibits and Research with Resort Industry’s 5 Pillars

Future of Entertainment (40x40 SQF)• Snowboarding, Future of Golf, sports trainers• Holograms and hologram concerts• Kinetic sculptures and digital displays• AR/VR games and immersive environments

Industry-University Collaboration Research CenterBusiness and Operation Model

Mission

• Conduct integrative multi-disciplined research in Resort’s 5 Pillars• Emphasis: Robotics, VR/AR, AI, Big Data and IOT• Enhance Guest Experiences, Increase Profits, Reduce Costs• Market Studies and Catalysis, Engage Public, Train Workforce

Membership Benefits•Pool funding for common technology (30:1 ROI over time)•Consortium of university researchers, industry leaders, government•Accelerate commercialization and IP portfolio•Access to technology talent

Roboland: For our Future

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Research Sponsors/Partners

How to Get Involved and/or Get more Info

https://www.surveymonkey.com/r/HSPF3RF

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Disruptions in Transportationand How Long Will It Take Me to Get Down the I-15…?

Jeff Lerud, Project ManagerDepartment of Transportation (NDOT) Southern Nevada

John Peñuelas, Director of Engineering Streets & Highways (RTC)

KEY MAP

LEGEND

New Pavement

Re-surface/Striping

NewBridge

RaisedMedians

Proposed Improvements

THIS SHEET

Dean Martin Access

Westbound CirculationEastbound Circulation

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HOV Lanes

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Active Traffic Management Signs

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Transit Service

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Traffic Management

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Workforce Disruptions &Longevity Risk

HighTower Las Vegas Partner Mike PeQueen

RCG Economics Principal John Restrepo

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Global Trends

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71

58

48

29

42

52

2018

2022

2025

Division of Global Labor as % of Hours Spent: 2018, 2022 & 2025

Human Machine

Source: World Economic Forum

Projected Growth in Total Hours Worked by Machines: 2018 – 2022

8%9%

10%13%13%

15%16%

17%19%

Communicating & Interacting

Reasoning & Decision-Making

Coordinating, Developing, Managing & Advising

Manual Labor

Complex & Technical Activities

Data Processing

Administering

Identifying & Evaluating Information

Collecting Job-Relevant Information

Pct-Pt Change in Hours Worked by MachinesSource: World Economic Forum

Global Emerging & Declining Occupations: 2018 – 2022

Source: World Economic Forum

Declining Roles: 75 Mil1. Data Entry Clerks2. Accounting, Bookkeeping, Payroll Clerks3. Administrative & Exec. Secretaries4. Assembly & Factory Workers5. Client Info./Customer Service Workers6. Business Services & Admin. Managers7. Accountants & Auditors8. Material-Recording & Stock Keeping Clerks9. General & Operations Managers10.Postal Service Clerks

Emerging Roles: 133 Mil1. Data Analysts/Scientists2. AI & ML Specialists3. General & Operations Managers4. Software/App. Developers & Analysts5. Sales & Marketing Professionals6. Big Data Specialists7. Digital Transformation Specialists8. New Technology Specialists9. Org. Development Specialists10.Information Technology Services

Potential Global Jobs Displaced & Changing Occupations by 2030 (Millions)

Source: McKinsey

118

6039

16 9

39

9.5 2.514.5 10.5

1 30

20

40

60

80

100

120

140

China India United States Japan Mexico Germany

Dis

plac

ed Jo

bs (M

illio

ns)

Displaced Jobs Changing Occupations

U.S.-2030Up to 33% (14.5 million)

of workforce may need to switch occupations

24.5 million jobs lost

The Many Faces of the Robot Revolution

Projected adoption rate (2016-2022)

Aerial & Underwater

Robots

19%

Oil & Gas Industry(52%)

Humanoid Robots

23%

FinancialServices & Investors

(35%)

Stationary Robots

37%

Automotive,Aerospace,

Supply Chain(53%)

Non-humanoid

Land Robots

33%

Automotive, Aerospace,

Supply Chain(42%)

First movers(2016-2022)

Source: World Economic Forum

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U.S. Trends

Automation Potential by Education Level (%): 203054% 52%

45%31%

25%

49%

29%

0%

10%

20%

30%

40%

50%

60%Au

tom

atio

n Po

tent

ial

Source: Brookings Institution

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Nevada Trends

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States Most Vulnerable to Automation: In Next 10 – 20 Years

Source: SmartAsset

1. Nevada2. South Dakota3. Wyoming4. Louisiana5. Montana6. South Carolina7. Mississippi8. Florida9. Texas10. Alabama

What the Experts Say of Possible “Gross” Job Disruption in Southern Nevada

% Jobs Automatable

By (Year) Source 2018 Jobs

PotentialJob Losses

65% 2035University of the Redlands 1,328,693 863,650

49%No

Timeline Citigroup 1,328,693 N/A

38% 2030 PwC 1,328,693 504,903

48% 2030 Brookings 1,328,693 637,773

Share of Jobs Facing Automation Risk by 2035

Source: Institute for Spatial Economic Analysis, University of the Redlands

Metropolitan Statistical Area % of Jobs1. LV-Henderson-Paradise, NV 65.2%2. El Paso, TX 63.9%3. Riverside-San Bern.-Ontario, CA 62.6%4. Greensboro-High Point, NC 62.5%5. N. Port-Sarasota-Bradenton, FL 62.4%6. Bakersfield, CA 62.4%7. Orlando-Kissimmee-Sanford, FL 61.8%8. Fresno, CA 61.5%9. Greenville-Anderson-Mauldin, SC 61.3%10. Louisville/Jefferson Cnty, KY-IN 61.3%

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OK now I am freaking out

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Find Your Inner Zen

Source: birthdaywishesexpert.com

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What ELSE do I need to know?

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The New Longevity

A Blessing or a Curse?

Source: https://www.newscientist.com/article/mg23130810-800-the-100year-life-how-should-we-fund-our-lengthening-lives/

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“Nobody in 1900 could have conceived of the possibility that life expectancy at the end of the century would be over 75.”

— Robert Fogel, Nobel laureate

Longevity risk, the chance that people will live longer than expected, is potentially very expensive.

Source: https://www.google.com/search?biw=1680&bih=898&tbm=isch&sa=1&ei=tk_tXPa4GoSesQWno4ewBQ&q=longevity+risk+example&oq=longevity+risk+example&gs_l=img.3..0i24.3716.4753..4912...0.0..0.239.1067.0j6j1......0....1..gws-wiz-img.pQeGCQJRSrM#imgrc=2rW93FXrL70cPM:

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Children born in 2007 in the United States have a 50% chance of living to age 104

FACT

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A couple retiring today at

65 can expect that at least one of them will live

to age 90

http://www.riscario.com/live-too-long

#StatPackLIVEhttps://www.linkedin.com/pulse/10-facts-longevity-andrew-scott/

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Advances in health care technology will disrupt these norms.

Source: htps://www.huffpost.com/entry/older-athletes-turn-heads_b_419637

Source: https://study.com/academy/lesson/human-longevity-the-influence-of-genetic-environmental-factors.html

20%-30% of life span is determined by genes, the rest by environmental factors

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What Will a Longer Life Cost?

Source: https://www.businesstrialgroup.com/news/finra-senior-investor-financial-exploitation/

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Adding an extra year to the average lifespan increases the world’s pension bill by 4%, or around $1 trillion, according to the IMF

Source: International Money Fund

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Who’s Going to Pay…?• Social Security • Medicare• Private Pensions

The Retirement Age Will Have to Increase

Source: https://www.forbes.com/sites/billconerly/2019/01/12/hiring-young-workers-who-want-work-life-balance-whats-an-employer-to-do/#59ee4d00e4e4

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Industries Affected by Longevity

• Life Insurance • Long Term Care Insurance• Home Health Care • Recreation and

Entertainment Providers• Home Builders• Biotech Companies• Self-Driving Cars & Personal

Mobility https://tincture.io/robots-for-everyone-3fddd94f77e0

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The Senior Investor

•Old Wisdom: Reduce Stock Market Exposure As You Age

•New Wisdom: Inflation Will Erode Purchasing Power Without Growth Exposure

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How Does Las Vegas Capitalize on this Trend…?

Source: www.rottentomatoes.com

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EVENT SPONSORS

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HighTower Las Vegas is a team of investment professionals registered with HighTower Securities, LLC, member FINRA, and SIPC & HighTower Advisors, LLC a registered investment advisor with the SEC. All securities are offered through HighTower Securities, LLC and advisory services are offered through HighTower Advisors, LLC.

No investment process is free of risk and there is no guarantee that the investment process described herein will be profitable. Investors may lose all of their investments. Past performance is not indicative of current or future performance and is not a guarantee. Carefully consider investment objectives, risk factors and charges and expenses before investing.

These materials are solely informational. In preparing these materials, we have relied upon and assumed without independent verification, the accuracy and completeness of all information available from public and internal sources. HighTower shall not in any way be liable for claims and make no expressed or implied representations or warranties as to their accuracy or completeness or for statements or errors contained in or omissions from them.

This presentation is purely for information and discussion purposes only.

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Disruption in the Workforce

Virginia KnudsenBryan Lindsey

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MULTI-GENERATIONAL DISRUPTION• Work Ethics• Priorities• Communication Styles• Value Systems• Motivation Factors

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GENERATIONS• Traditionalists: 1925-1945 = 35 Million

• Reliability• Loyalty

• Baby Boomers: 1946-1964 = 84 Million• Time• Money

• Reactive Generation X: 1965-1981 = 68 Million• Productivity• Work/Life Balance

• Millennial Generation Y: 1982-2000 = 70 Million• Parallel Career/Blended Life• Cause, Meaning and Significance

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PRIORITIES• Traditionalists

• Loyal to the Company• Longevity = Safety

• Baby Boomers• Financial Acquisition and Material Wealth• Successful and Stellar Career

• Generation X• Work/Life Balance• Quality versus Quantity

• Millennials• Shared Economy/Experiences• Parallel Career with a Blended Life

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COMMUNICATION• Traditionalists

• No news is good news. • Show up on time, do the work and don’t make waves.

• Baby Boomers • Annual Reviews with documentation. Everything in writing. • Created the 70-80 hour work weeks.

• Generation X• Open, regardless of position.• Created the open door policy.

• Millennials• Constant communication.• More comfortable communicating through technology than face-to-face.

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MILLENNIALS - What Are They Looking For?• A Boss Who is a Mentor and a Coach

• Collaborative Work Culture

• A Company That Wants To or Works Towards Making the World a Better Place

• Work-Life Integration (Blended Life/Flexibility)

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MILLENNIALS - How to Attract and Retain• Time

• DTO Discretionary Time-Off

• Flexibility• 4-Day Work Weeks• Job Sharing• Self-Managed Teams

• Growth• Interesting Things to Learn• Idea Sharing• Career Advancement• Additional Responsibility

• Relationships• Friendly and Relaxed Culture• Opportunities for Socialization• Social Networking

• Cause• Being Part of Something Bigger

Than Themselves• Having a Sense of Purpose• Changing the Human Experience

in the World

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Disruptions in BankingEdward M. Nigro, ChairmanT. Ryan Sullivan, President

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Challenges to Banking Industry“New entrants to the banking market —including challenger banks, non-bank payments institutions and big tech companies — are amassing up to one-third of new revenue, which is challenging the competitiveness of traditional banks.”

- Beyond North Star Gazing, Accenture, Oct. 2018

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Challenges to Banking Industry

Shadow Banking• Lenders, brokers, and other credit

intermediaries - outside the realm of traditional regulated banking

• Not subject to risk oversight, liquidity requirements, capital restrictions, and consumer protection

• Played a major role in the expansion of housing credit in the run up to the 2008 financial crisis

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Playing a Larger Role

• Shadow banking assets $45 trillion worldwide

• Global financial assets = $340 trillion• “Other Financial Intermediaries” now

control 30% of all global financial assets• Fastest growth across all private sectors

Source: Financial Stability Board

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Where is it Happening?

A Matter of TrustWhat Millennials Expect From Their Financial Institution

• Rewarded for loyalty (30%)• Easier and more convenient

(29%)• Honesty (28%)

Millennials value honesty in their bank 1.7X more than GenXers/BoomersSource: Facebook IQ

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The Largest Generation

Source: American Bankers Association

Starting in the Hole

Source: American Bankers Association

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Millennials Have a Plan

Source: American Bankers Association

Boomer Tech Adoption

Source: Pew Research

Shifting Payment Landscape

Source: Federal Reserve Bank of San Francisco

Share of Instrument by Number

Shifting Payment Landscape

Source: Federal Reserve Bank of San Francisco

Share of Instrument by Value

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Risk Amidst Opportunity

Source: Ponemon Institute

Cost of Complacency

• Avg. cost of IT Compromise - $1.43 million• Avg. cost of business disruption - $1.56 million• Cyber attack cause – negligent employees (61%)• Data breach cause – negligent employees or contractors (60%)

Source: Ponemon Institute

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Cyber Survival for Business

6. Control physical IT access

7. Secure your Wi-Fi

8. Best practices on payments

9. Limit employee access

10. Authentication –passwords aren’t enough

1. Train employees

2. Protect IT assets –

patch management

3. Everything behind the

firewall

4. Mobile security plan

5. Data backups

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Automation Disruptions in Gaming

Howard StutzCDC Gaming Reports Editor

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HighTower Advisors, LLC is a SEC registered investment advisor. Securities are offered through HighTower Securities, LLC, member FINRA, SIPC.This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The

investment opportunities referenced herein may not be suitable for all investors