Business leader

InsIde thIs Issue

VerdeXchange ............................ Page 2

Manufacturing Report.................Page 2

Kyser, Harrington remembered..Page 3

WTCA Assists Shenzhen Group.. Page 4

Eddy Awards® ............................ Page 6

L.A. County Strategic Plan ............. Page 7

Business Assistance Services....... Page 8

Featured Member .......................... Page 8

Healthcare Construction............ Page 9

Staff Updates .................................. Page 10

Membership Updates ................ Page 11

On February 16th, the Kyser Center for

Economic Research at the LAEDC released

its 2011-2012 Economic Forecast and

Industry Outlook report highlighting the

economic outlook for the Southern California

five-county region at its annual forecast

event at the Los Angeles Downtown Marriott.

The report sees the economic recovery

under way led by increased international

trade and growth in the high-tech sector,

entertainment and tourism.

The Los Angeles economy “appears to be

past the bottom of the recession and is

starting up the recovery path during 2011

and 2012,” said LAEDC Chief Economist

Dr. Nancy D. Sidhu. “Many industries are

back in the black and employment is rising

in some areas.”

“We project that the California and U.S.

economies will grow moderately in 2011

and 2012,” added Sidhu. “But the recession

was so deep, 2011 won’t feel all that good

despite improvements in most industries.

modest reCovery for 2011,

stronger growth for 2012

Los AngeLes County eConomiC DeveLopment CorporAtion

LAEDC

> Continued on page 4

MORE TO US THAN JUST LAEDC.ORG

LAEDC LAEDC LAEDCorpThis op-ed was published in Fox and

Hounds Daily (FoxandHounds.com).

Working for a leading California economic

development organization, I am often asked

about the state of our economy and my

thoughts on how we can get it back on track.

Clearly, this is a top concern to citizens

here in California and across the country.

We’ve seen a lot of posturing on how to

improve the economy and create much-

needed jobs from elected officials in

Washington, DC, as well as from those

campaigning for elected office last

November. No question that with sluggish

job growth, a still-stressed economy and

structural deficits as far as the eye can

see, our federally-elected officials must

a Call to Preserve the Ca

enterPrise ProgramAn op-ed by LAEDC President and CEO Bill Allen

> Continued on page 5

Los AngeLes County eConomiCDeveLopment CorporAtion

Wednesday, May 18Long Beach ConventionCenter

Join the LAEDC and the World Trade Center

Association Los Angeles-Long Beach for a

discussion on the global economy and

international trade trends. The Kyser Center

for Economic Research will also release the

2011 International Trade Trends report.

More information coming soon.www.laedc.org/tradeoutlook

Sign up to get the updates:http://bit.ly/laedcsignup

spring 2011

International Trade Outlook

Register Today!

2011_01_Feb_2011_01_Jan 3/10/11 2:20 PM Page 1

Page 2

Business leader

manufaCturing still #1LAEDC report shows County tops in manufacturing

The LAEDC recently completed its 2011

Manufacturing: Still a Force in Southern

California report highlighting the trends

in the manufacturing sector for the

Southern California, six-county region.

Nationally, the U.S. is the world’s largest

manufacturing economy, producing 21

percent of the global manufactured products.

U.S. manufacturing generated $1.6 trillion

worth of output, which represented 11

percent of the U.S.’ total GDP. And pro-

ductivity in the manu-

facturing sector is, in

fact, very high with

manufacturing jobs

often paying premium

wages and benefits.

“Industrial restructuring

has intensified, making

U.S. manufacturing

more competitive than

ever,” said LAEDC’s

Chief Economist and

report author Dr.

Nancy D. Sidhu. “The

U.S. share of global

manufacturing has remained at or above

20 percent for most of the past two

decades.”

Locally, in L.A. County, the manufacturing

sector employed 389,300 people in

2009. The value of manufacturing

shipments in the County was $153

billion in 2007 (latest data available).

Manufacturing is a “high-multiplier”

activity, supporting many local area

businesses and jobs in supplier industries

such as energy, freight transportation,

and business and professional services.

The LAEDC study also reported that the

value of total manufacturers’ shipment

in the six Southern California counties

was approximately $271 billion in 2007,

which was up by 32 percent from $206

billion in 2002.

In L.A. County, the total value of

manufacturing shipments (excluding oil

refining) increased by 21 percent between

2002-2007, though the gains varied by

sector. A similar pattern of growth held

across the rest of Southern California.

In Orange County, over the same period,

the total value of manufacturing shipments

grew by 26 percent. Riverside and San

Bernardino counties both saw increases

in manufacturing shipments as well, of

76 percent and 62 percent, respectively.

San Diego and Ventura counties

boasted gains of 24 percent 42 percent,

respectively.

The top five indus-

tries in Los Angeles

County (measured by

dollar revenues in

2007) were: petroleum

refining, computer and

electronic products,

food products, and

aerospace and fabri-

cated metal products.

Of the manufacturing

employment in the

County, 56 percent of

the workers produced

durable goods such

as computers, trans-

portation, equipment and metal products,

while the other 44 percent produced

nondurable goods such as apparel and food.

While some may believe that manufacturing

is destined for low-cost countries with a

lower cost of labor, manufacturing in the

U.S. has been an attractive investment

for foreign investors. The greater Los

Angeles area’s appeal includes some

significant advantages. Manufacturers

in the region have ready access to

global markets and suppliers through

the Ports of Los Angeles and Long Beach,

as well as Los Angeles and Ontario

International Airports. The region also

has a wide network of ground and air

infrastructure which means fast, efficient

connections to the rest of the U.S. And

perhaps most importantly, Southern

California possesses a large work force,

many of whom are highly educated.

Download the complete report at

www.LAEDC.org/reports.

China-u.s.PartnershiP inCleanteChannounCed atverdexChange

The 4th Annual VerdeXchange Conference,which attracts leaders from around theworld, the Western States and Californiato share best practices and technologiesdriving innovation and investment acrossall energy platforms, ended its 2-dayconference in January 2011 with anannouncement by Los Angeles-basedBalqon Corporation of the sale of 300electric drive systems to China-basedWinston Global Energy.

Balqon Corporation, based in Harbor City,

is a manufacturer of electric propulsion

systems for heavy-duty vehicles. Winston

Global Energy, a manufacturer of batteries

for electric bicycles, motorcycles, electric

and hybrid cars and buses, will integrate

Balqon's electric drive systems into a fleet

of buses ranging in size from 15 to 40

passenger capacity and market them to

local private and government fleet operators

in China. The order is expected to result

in the creation of approximately 150 new

green technology jobs in L.A. County.

LAEDC President and CEO Bill Allen, who

introduced Balqon’s CEO Balwinder Samra

at the press conference, said, “Goods

movement in the L.A. area supports

literally hundreds of thousands of jobs.

And to move these goods through our

region in clean, responsible ways, we need

technology entrepreneurs like Mr. Samra

and his company, which have developed

technology that allows for zero-emissions

movement of these goods.”

Allen added, “In a region that is the center

of innovation, today is the culmination of

work in two countries and in two regions

that are committed to a cleaner, greener

world and to creating economic opportunity

in the pursuit of these environmental

objectives.”

The LAEDC is a proud sponsor of the

VerdeXchange conference.

2011_01_Feb_2011_01_Jan 3/10/11 2:20 PM Page 2

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Business leader

rememBering two great friends & l.a. figures

jaCk kyser

In December 2010, the

LAEDC and the Los

Angeles community were

shocked and saddened

by the news of the sudden

passing of our beloved

colleague and dear friend

Jack Kyser. LAEDC

President and CEO Bill

Allen said it best in the

tribute poem he presented

at Jack’s public memorial

service in January 2011:

“…God decided he

needed an adviser like Jack. He called him home in the blink of

an eye before we had a chance to say a proper good-bye.”

Jack’s public memorial service was a celebration of his life which

was attended by hundreds of Jack’s friends and colleagues.

Among the many speakers were L.A. City Mayor Antonio

Villaraigosa and L.A. County Supervisor Don Knabe.

Jack was a dedicated, decent, warm, funny, gentle and kind

human being. Many speakers at the service shared their favorite

Jack moments, which often included his affinity for joking in

Spanish, taking special delight in the confounded look on the

faces of his non-Spanish speaking friends and colleagues, or how

he used to play pranks on unsuspecting staff members.

His sense of humor and his kindness was unmatched. And his

dedication to his family, friends, and the region was unparalleled.

Jack joined the LAEDC in 1991 and built our economic research

practice from scratch. He was affectionately dubbed the “Guru”

and the “voice of the Los Angeles economy” for his great depth of

knowledge, insight and uncommon ability to articulate complex

economic matters in simple and understandable terms.

Jack couldn’t stay away from the craft he loved for long when he

retired from the LAEDC in June 2010. As a tireless champion of

L.A. County and the Southern California region, he answered the

call to work with SCAG (Southern California Association of

Governments) to develop an economic recovery plan for the

entire Southern California region. Jack last spoke at a SCAG

summit the Friday before he died where he urged Sacramento

leaders to write business-friendly legislation.

What we didn’t know then was that Jack was leaving a legacy for

us to continue working on for the region he loved so much. We

will indeed honor his legacy by continuing his work to grow and

improve the region.

lee harrington

Shortly after Jack’s passing, the LAEDC lost another dear friend,

colleague and mentor. Lee Harrington, the LAEDC’s former President

and CEO and Executive Director of the Southern California Leadership

Council (SCLC), died on February 4th while surfing near his home

in Santa Barbara.

For the past five years, Lee led our Southern California Leadership

Council, an organization dedicated to making the region a better

place for the more than 20 million people who live and work here.

He worked closely with former Governors Davis, Deukmejian and

Wilson as well as Governor Brown to improve the business

climate and create a better quality of life for everyone who calls

Los Angeles County and Southern California home.

Lee also led the LAEDC for more than ten years. His accomplishments

as CEO are too many to enumerate, but he took the LAEDC to new

levels of effectiveness and prominence, and in doing so, helped

create and save more than 100,000 jobs for the people and

communities of Los Angeles County.

His life of public service and his legacy of civic responsibility are

testaments to his love and passion for this region.

As CEO, Lee was always caring to the LAEDC staff and never failed

to recognize them for a job well done. He had that ability to listen,

interpret and provide that profound leadership in the LAEDC’s

formative years that led to the LAEDC’s recognition as “Southern

California’s premier economic development organization.”

Lee also encouraged his staff to develop and grow professionally.

He was an effective leader who always encouraged his team to

excel at any endeavor they were undertaking.

Lee’s love for surfing,

fishing, and his Santa

Barbara ranch were well

known. You could often

find him discussing surf

conditions or sharing his

tales from a recent deep

sea fishing trip around

the office.

His son Ryan said at the

LAEDC and SCLC hosted

memorial service on

March 2nd that his father

passed away doing what

he truly loved.

Lee will be deeply missed by everyone in the LAEDC family.

2011_01_Feb_2011_01_Jan 3/10/11 2:20 PM Page 3

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Business leader

However, the state is headed in the right

direction, and the economy will seem

even better by 2012.”

Increased international trade activity in

2011 will benefit the ports of Los Angeles

and Long Beach, which both posted very

strong years in 2010. Hiring is also

expected to grow as well for the region’s

tourism and entertainment sectors as a

result of increased filming and more

visitors to the region, helped by the new

convention center hotel at L.A. LIVE.

Dr. Sidhu was joined by Dr. David Berson,

Senior Vice President and Chief Economist

for the PMI Group, and John Chiang,

California State Controller, for the economic

outlook panel at the event. In his remarks

about the region’s housing market, Dr.

Berson noted that the housing sector

will face another difficult year despite

some expected improvement in 2011.

He also noted that housing prices in

Southern California would be at their

current levels or lower one year from now.

As for California’s fiscal position, Controller

Chiang explained that the state is in a

better position now than this time last year.

However, with a budget deficit of more

than $25 billion, California hasn’t operated

in the black since 2007. And our state

leaders will face many tough decisions

regarding which programs to keep or

eliminate in order to balance the budget.

The Kyser Center also released a separate

report, “Growing Together: Japan and Los

Angeles County,” which shows the striking

economic and personal ties with Japan.

This second-in-a-series of key country

reports highlights the historical, business,

trade, educational and cultural ties

between Japan and Los Angeles County.

U.S.–Japan trade has increased

dramatically over the past 50 years

jumping from $3.2 billion to $211 billion

at its peak in 2000. Japan is the second

largest trading partner of the Los

Angeles Customs District with the ports

of Los Angeles and Long Beach together

handling nearly 25 percent of total trade

between Japan and the U.S. The report

also documents the growing importance

of foreign direct investment in this

relationship.

The Forecast event featured representatives

from some of Japan’s most recognizable

companies to discuss why their companies

choose to invest in L.A. County.

Representatives included Les J. Goodwin,

Senior Vice President, Commercial Treasury

Services Division, Union Bank; Gary R.

Kessler, Senior Vice President, Human

Resources, Administration & Corporate

Affairs, American Honda Motor Co., Inc.;

and Lauren Weidelman, Corporate

Communications Manager, Yakult U.S.A. Inc.

A common reason among each of these

companies for investing in L.A. County was

the established Japanese business

community, particularly in Torrance. Other

reasons were the educated workforce,

existing infrastructure and proximity to

the ports and airport, and, of course,

the weather.

eConomiC foreCastContinued from page 1 >

wtCa assistsshenzhengrouP and airChina

In January 2011, the Shenzhen New

World Group Co. announced the purchase

of the Universal Sheraton Hotel. The

World Trade Center Association Los

Angeles-Long Beach (WTCA) was

instrumental in assisting the privately-

held real estate development group

with this transaction by facilitating

meetings with key government officials.

The company plans to spend about $5

million to renovate the Sheraton's pool

area, meeting rooms and other public

spaces which will create much-needed

jobs for the region.

The WTCA L.A.-Long Beach also

provided assistance to the Shenzhen

Group last year with their purchase of

the Los Angeles Marriott Downtown.

Also in January, LAEDC Economic

Patron Air China announced that it will

add a second daily flight between Los

Angeles International Airport (LAX) and

Beijing beginning in September 2011.

The newly-added daily service is

expected to generate millions of dollars

in annual economic impact and sustain

several thousand local jobs, according

to LAX officials.

The WTCA L.A.-Long Beach assisted Air

China by utilizing LAEDC resources and

research to develop a proposal to Beijing

headquarters on the L.A. regional market

for increased trade, investment and

tourism from China to substantiate

adding the additional daily route.

An LAEDC Consulting report of the

economic activity of overseas flights at

LAX estimated that one transoceanic

flight from LAX added $623 million in

economic output and sustained 3,120

direct and in-direct jobs.

L-R: LAEDC President and CEO Bill Allen, Gary R. Kessler, Les J. Goodwin, Lauren Weidelman,

Dr. Nancy D. Sidhu, event moderator and host of KNX 1070 Business Hour Frank Mottek, LAEDC

Chair Maura O’Connor, Dr. David Berson, and Consul General of Japan Junichi Ihara.

2011_01_Feb_2011_01_Jan 3/10/11 2:20 PM Page 4

support policies that spur business growth,

stimulate the U.S. economy and encourage

private sector hiring.

Like their federal counterparts, our state

officials need to enact policies that support

economic development and job growth.

Similarly, state leaders must also safeguard

successful programs that have been shown

to generate jobs, reduce poverty levels and

support local economies – this must be part

of any rational economic recovery program.

So why then would newly-elected Governor

Brown be considering eliminating the

California Enterprise Zone program, which

for about 25 years has proven invaluable to

creating thousands of jobs, decreasing

poverty, and revitalizing entire communities?

This is not a program that should be purged

to help manage our state’s budget crisis.

Just the opposite. To solve California’s budget

crisis the smartest thing we can do is to grow

revenues by growing our economy through

the EZ Program. Even so, the program will

face outright elimination if the Governor’s

proposed budget becomes reality.

In these hard economic times, the California

Enterprise Zone Program plays a key role in

revitalizing economically-challenged areas of

the state, encourages development in blighted

neighborhoods and creates economically-stable

communities by embracing entrepreneurship

and private sector market forces to stimulate

local economies. California’s Enterprise Zones

remain one of the only dependable statewide

tax incentives that local areas can use to

encourage businesses to stay or locate in-state.

These zones provide tax incentives for

businesses in economically-distressed areas

to hire workers who face barriers to

employment. Returning veterans, laid-off

workers, government assistance recipients

and other physically, mentally and

economically-challenged job seekers are all

eligible for preferred hiring in Enterprise Zone

regions. What’s more, the working poor

(single taxpayers making less than $16,334

or joint filers making less than $32,668)

employed at an Enterprise Zone business can

obtain a state tax credit of up to $525 per year.

Contrary to the Governor’s interpretation,

the program’s success rate has been well-

documented. A 2006 Department of

Housing and Community Development

report confirmed that California Enterprise

Zones have outperformed

the rest of

the state in

several key

economic areas:

poverty decreased by

7.35 percent more than in

the rest of the state,

unemployment rates fell by 1.2 percent

more than the rest of the state, household

incomes grew 7.1 percent faster, and wages

and salary levels increased 3.5 percent

more than the rest of the state.

In addition, the Governor assumes that by

eliminating the program the state will

automatically generate an additional $924

billion dollars. But this is not true when one

factors in the lost tax revenue from

businesses and jobs that will leave the state

– but for the benefits offered in these zones

– and not return.

Here in Los Angeles County, we have eight

Enterprise Zones that deliver numerous

benefits for employees and employers and

create economic growth and stability. These

zones have been instrumental in helping

attract and retain scores of businesses in

areas that would not ordinarily have the

capacity to do so.

In Los Angeles County, zones range from

economically-depressed urban environments

in the cities of Los Angeles and Long Beach

to the more rural locales of the Antelope

Valley and Santa Clarita. Without an

Enterprise Zone designation in these once

neglected communities, opportunities for

local residents to achieve financial security

and self-sufficiency would have vanished.

That’s not to mention the social benefits

which would have been lost to these

communities; indeed, I don’t know of a

more beneficial social program than

providing someone with a well-paying job.

Terminating the Enterprise Zone Program in

the mistaken belief it would help balance the

state’s budget would be exactly the wrong

prescription for fixing our ailing economy.

Eliminating these zones would almost

certainly make things worse in already

stressed areas, which would suffer further

job losses, economic decline and

diminished quality of life.

If anything, the Governor should

strengthen his commitment to the

Enterprise Zone Program in these

difficult economic times as a

key mechanism to revitalize

economically-challenged areas by

providing incentives that create high-

wage jobs and investment in these

communities. By responsibly doing so, he

would not only strengthen local economies,

but strengthen the state’s long-term

economic foundation as well.

Too many of our state and local residents

desperately need jobs. Until such time when

this is no longer the case, there will always

be a critical role for Enterprise Zones. This

is one program our elected officials cannot

afford to eliminate.

Page 5

Business leader

enterPrise zones oP-edContinued from page 1 >

Map of California

enterprise zones

and other economic

development areas,

Department of

Housing and

Community

Development

(April 2010).

grow ez Program, grow the eConomy

2011_01_Feb_2011_01_Jan 3/10/11 2:21 PM Page 5

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Business leader

Thanks to the generous support

of its members and sponsors,

the LAEDC raised more than

half a million dollars at the 15th

Annual Eddy Awards® to fulfill

the important mission of job

retention, attraction, and growth

for the regions of Los Angeles

County.

More than 600 people from the

business, government, and

education sectors attended the

LAEDC’s celebration of economic

development leadership in

November 2010. Hosted by NBC 4

News Weathercaster Fritz

Coleman, the Eddy Awards® event

recognized the outstanding

leadership of corporate honoree,

healthcare provider Kaiser

Permanente, and individual

honoree Do Won Chang, CEO and Founder

of the Forever 21 apparel brand.

Accepting the award on behalf of Kaiser

Permanente was George A. Di Salvo, Senior

Vice President and CFO, Kaiser Permanente,

Southern California Region.

As one of the nation’s leading non-profit

integrated health plan and care providers,

Kaiser Permanente is committed to helping

shape the future of health care by providing

high-quality, affordable health

care services and improving the

health of 8.6 million health plan

members and the communities

they serve. In Los Angeles

County, Kaiser Permanente

employs over 36,000 employees

and physicians working at seven

medical centers and dozens of

outpatient medical offices as well

as specialty laboratory, pharmacy,

and manufacturing facilities

and regional headquarters.

Headquartered in the City of

Los Angeles, Forever 21 began

in 1984 and has since become

synonymous with trendy,

affordable fashions. Since then,

Forever 21 has grown to 457

stores in 15 countries with sales

of nearly $3.0 billion annually.

In L.A. County, Forever 21 operates dozens

of stores throughout the region’s malls and

shopping centers, employing more than

3,000 people and thousands more through

their supply network.

laedC honors kaiser & do won ChangThe Eddy Awards® celebrated the leadership of the healthcare leader and Forever 21’s Founder

alhamBra & Cerritos: 2010 most Business-friendly

Congratulations most Business-friendly City finalists

AzusA • CArson • CommerCe • Downey • DuArte • LA mirADA • monroviA • torrAnCe • west CovinA • whittier

For more information about these fine cities, visit LAEDC.org/eddy.

L-R: LAEDC President & CEO Bill Allen, LAEDC Executive Board member and

representative of L.A. County Supervisor Mark Ridley-Thomas Janice Bryant

Howroyd, Kaiser Permanente Southern California Region Senior Vice President

& CFO George A. Di Salvo, LAEDC Chair Maura O'Connor, and Forever 21

Founder & CEO Do Won Chang.

City of AlhambraPOPULATION OVER 60,000 • 2009 FINALIST

Located eight miles east of downtown Los Angeles, Alhambra

is often referred to as the “Gateway to the San Gabriel Valley.”

The city offers a favorable combination of housing, business,

employment and recreational opportunities. Alhambra’s

Economic Development Element in its General Plan provides a

blueprint to sustain and grow commerce and businesses

including industrial and central business district project areas,

financial assistance in redevelopment areas, land acquisition,

negotiated sales, lease agreements with an option to

purchase, rent subsidy, and rebates.

City of CerritosPOPULATION UNDER 60,000 • 2007 AND 2008 FINALIST

Located in the heart of the Los Angeles Metro Area, Cerritos

offers businesses a strategic location in a community with a

solid fiscal position, exceptional services and a tradition of

strong city leadership. The city provides fast-track permitting,

is a “no/low” property tax city with no utility user tax, and has

two redevelopment project areas, and a business retention

and expansion program. Cerritos' economic development

efforts arise from an Economic Development Strategic Plan

that focuses efforts to ensure the success of existing

businesses.

2011_01_Feb_2011_01_Jan 3/10/11 2:21 PM Page 6

Page 7

Business leader

The implementation team for the first-

ever consensus Los Angeles County

Strategic Plan for Economic Development

has completed the first year of the

Plan’s five-year implementation. During

2010, the implementation team achieved

many milestones toward making progress

in the Plan’s five goal areas.

Some of the highlights of the team’s

successes include the unanimous

endorsement by the

L.A. County Board

of Supervisors and

endorsements by

84 of L.A. County’s

88 cities; the Plan

garnered 500

individual fans and

followers on its social

media platforms

and received broad

and favorable media

coverage; and the

implementat ion

team met with

several dozen

elected officials

and businesses

throughout the

county and up-and-

down the state to brief them about the

plan. Several communities throughout the

state are now using the Plan as a model

for their own economic recovery strategies.

The LAEDC is producing an Annual

Progress Report to highlight the

successes and outcomes that were

achieved throughout the County relative

to each of the plan’s goals during the

2010 calendar year. The Annual Progress

Report begins with an introduction that

sets the stage for where we are relative

to each of the goal’s priorities along with

a broad snap shot of the current

situation, and then goes into detail

highlighting the successes toward

progress of each component area. The

successes highlighted in the report were

identified with input from the Plan’s

Implementation Champions, inquiries to

the cities and agencies throughout the

county, and online information related

to the Plan’s goals.

The successes highlighted in the Progress

Report reflect the community’s private,

public and non-profit organizations’

commitment to improve the region.

Notable successes for each goal area,

include, for example, grants that have

been awarded to educational institutions

to grow and enhance curriculum for

students, the enactment of several cost-

saving ordinances

for our region’s

businesses, pro-

grams and incen-

tives to clean our

air and improve the

environment, and

identifying smarter

uses for our avail-

able land, to name

just a few. Together,

the communities

throughout L.A.

County are making

incremental and

measurable progress

toward achieving

the aspirational

goals outlined in

the Plan.

As the implementation team begins the

second year of the plan’s five-year

implementation, we once again ask for

your continued support and leadership

to ensure that our shared vision of a

strong, diverse and sustainable economy

for Los Angeles County’s residents and

communities is realized. If your

organization has not already done so,

we ask that your organization consider

expressing its formal commitment to the

plan and our shared vision. Your

organization will be joining a growing

number of entities that are joining the

movement to take responsibility for the

health and vibrancy of our communities.

Visit www.LACountyStrategicPlan.com

for more information and to download a

copy of the Strategic Plan Progress

Report.

strategiC Plan: year oneFirst year of implementation yields important successes

“the nextdeCade” forl.a. County’sworkforCe

The LAEDC Consulting Practice recently

released "The Next Decade: Industries

and Occupations for the Los Angeles

Workforce" report, commissioned by the

City of Los Angeles Workforce Investment

Board (WIB), which provides an industry

cluster analysis for Los Angeles County.

The report identifies fifteen export-oriented

industry clusters that are the key drivers

of the regional economy, and six population-

serving industry clusters. At the county

level, one of the most promising sectors

for job creation is the Health Services and

Biomedical industry cluster. This cluster

already employs approximately 365,000

people and is expected to add workers

as our growing (and aging) population

consumes ever-improving medical services.

The report identifies 21 industries as strong

prospects for job creation, among which

are professional and technical services,

selected manufacturing industries, and

trade-related industries. These industries

will add workers in a variety of occupations,

some of which will require university training

but others which can be filled by candidates

with technical or vocational training.

The report also finds that over the longer

term, the economy in L.A. County will grow

at its trend rate of approximately 0.6

percent. The County’s economic growth

over the forecast period will be powered

by the post-recession recovery, led in large

part by service-providing industries such

as Professional and Business Services,

Educational and Health Services, and

Leisure and Hospitality, as well as by

Construction.

The WIB will use this report to provide

the critical intelligence for workforce

development strategies.

Download the complete report at

www.LAEDC.org/reports/consulting.

2011_01_Feb_2011_01_Jan 3/10/11 2:21 PM Page 7

Page 8

Business leader

In 2010, the LAEDC’s Business Assistance

and Development Program (BAP), in

conjunction with SASSFA (Southeast Area

Social Services Funding Authority) and

PGWIN (Pacific Gateway Workforce Investment

Network), produced the Economic

Development Toolkit for their respective

regions to provide an electronic source of

Los Angeles County’s business incentives

and assistance programs.

The information in these toolkits includes a

guide of general business assistance and

service providers, educational institutions,

venture capital sources and annual

conferences dedicated to supporting the

economic success and growth of businesses.

These PDF documents are available for free

on the LAEDC’s website at LAEDC.org under

“Business Assistance”.

While the toolkits were produced to help

businesses grow, the layoff aversion

program is in place to help retain employees

and sustain businesses. With layoff

aversion grants from SASSFA, PGWIN,

Southeast Los Angeles County Workforce

Investment Board (SELACO), South Bay WIB,

and the City of Los Angeles Workforce

Investment Board (LA WIB), the BAP team

continues to collaborate with local

communities, workforce investment

partners, employers and workers in

assessing small and medium-sized

businesses to explore alternatives to layoffs

through human resource solutions.

Since the beginning of the layoff aversion

program in December 2009, nearly 4,700

jobs have been saved.

The BAP team of professionals offers

confidential, free-of-charge layoff

aversion services. The team’s regional

managers can provide information and

assistance to decision makers and

consultants representing large and small,

domestic and international businesses in

the manufacturing, distribution and service

industries; and connect your business to

city and county officials, chambers of

commerce, business leaders and economic

development allies.

For more information about the toolkits and

the layoff aversion program, call us at (888)

4-LAEDC-1 or email bap@laedc.org.

Programs to assist l.a. County BusinessesLAEDC Business Assistance and Development Program continued to save jobs with free-of-charge

layoff aversion services and produced guides to help local businesses

Watson Land

Company is a

developer,

owner, and

manager of

industrial

properties

throughout

Southern California, with a legacy

spanning more than two centuries.

The company’s dedication to its

customers is based upon delivering

functional, high quality buildings

within master planned centers, coupled

with unmatched customer service.

Watson was the one of the first

industrial developers in Southern

California to design and construct

speculative industrial buildings in

accordance with the U.S. Green Building

Council’s Leadership in Energy &

Environmental Design (LEED®)

guidelines.

Watson’s assets and operations are

backed by one of the most conservatively

managed balance sheets in the real

estate industry. Unlike public companies

whose capital raising capacity is subject

to market cycles or smaller developers

who are vulnerable to credit crunches,

Watson’s stable financial resources

enable the Company to fund projects

regardless of external market forces.

Watson Land Company’s long standing

tradition of integrity, innovation, and

fiscal responsibility has made it one of

the region’s most respected names in

commercial real estate and one of the

largest industrial developers in the nation.

Through strategic financial contributions

and employee community service,

including leadership roles in a wide-

range of non-profit organizations,

Watson Land Company strives to be

an exemplary corporate citizen and

improve the quality of life by supporting

critical services and meeting

community needs.

Watson Land company has been a

member of the LAEDC since 1991.

fea

tured

mem

ber

2011_01_Feb_2011_01_Jan 3/10/11 2:21 PM Page 8

Page 9

Business leader

healthCare ConstruCtionCould Cure what ails l.a. County

This op-ed by LAEDC President and CEO Bill

Allen was published in the Los Angeles

Daily News on January 21, 2011.

What if I told you that there is an economic

development strategy that could add an

additional 200,000 much-needed construction

jobs to our state’s economy and be instituted

almost immediately without complex legislation

or ballot measures, without increasing

government-led infrastructure spending or

instituting a federal-like stimulus program

and without issuing billions of dollars

worth of new infrastructure bonds or

awarding government incentives?

Drum roll please…

It would be for the California Office of

Statewide Health Planning and

Development (OSHPD) – essentially the

building department for hospitals and

other health-related facilities – to expedite

plan reviews and approvals for hospital

and health facility construction. I know

it’s not very sexy. But it is substantive.

Right now, too many California

hospitals seeking to perform capital

improvement projects, employing many

thousands of construction workers, have been

met by unremitting postponements and

holdups in their plan review and approval

process. Some projects have required an

approval process of two or more years

before construction can even begin. In all,

OSHPD – which by the way has as one of its

articulated core service values “the efficient

processing of approvals for health facility

construction” – is holding up approximately

$23 billion in hospital and health-related

construction work in California.

From an economic development perspective,

this multi-billion dollar backlog is unacceptable.

The $23 billion in construction activity would

sustain direct, indirect, and induced impacts

including 232,000 jobs with $15.1 billion in

wages and generate approximately $1.7

billion in state and local tax revenue –

certainly, more jobs and tax revenue are two

things that California could use more of

immediately. With California’s construction

sector having been cut in half and in

desperate need of additional work; the state’s

unemployment rate lingering around 12.4

percent – third worst in the entire nation and

well above the national average of about 9.6

percent; and the state facing yet another

multi-billion dollar fiscal crisis, these

construction projects need to be brought

online as soon as possible.

Here in L.A. County, hospitals and related

health industries play a vital and leading role

in our economy. They account for almost 12

percent of the county's total economic

output and support approximately 352,000

direct and indirect jobs, with $15.6 billion in

wages. According to a 2006 report done by

the LAEDC, the sector contributes more

than one billion dollars in tax revenues to

the state's coffers, close to $70 million to

the county and more than $40 million in

sales tax revenues to cities in the county.

Even more, the sector has been one of the

few bright spots during these bad economic

times, and its expansion is almost certain to

accelerate as our county's population

continues to age and swell from about 10.4

million residents to 11.2 million by 2020.

Even so, this vital economic sector is in a

“lifeblood” struggle for survival against

threats that include deep budget cuts, new

MediCal restrictions, unfunded seismic

retrofit mandates, an emergency room network

under siege and laboring on

the fringe of unprofitability,

and a rapid increase in the

number of the uninsured. Here in Los

Angeles, we have already lost 17 hospitals

and emergency departments during the last

decade, and with two out of every five hospitals

losing money, we are in grave danger of losing

another three to four hospitals very quickly.

To make matters worse, hospitals are also

now running up against an average OSHPD

approval time of greater than 15

months before construction can begin

on many critical capital improvement

projects. All the while, increased

demand for health care services

attributable to a growing elderly

population is expected to increase by

75 percent in California by the close of

this decade.

Throughout Southern California there

are numerous examples of an OSHPD

entitlement approval process that has

gone off track. This has been further

exacerbated by furloughs, personnel

reductions and increased plan

submission activity in general. These

delays, which force hospitals to extend

their construction schedules indefinitely,

are very costly. This is not to mention the

patient (and visitor) safety issues associated

with having an active construction site on a

hospital campus as well as the diminution

of operational efficiency stemming from the

constant interruption and disruption that

lengthy and drawn-out construction causes

a hospital.

Hospitals and healthcare facilities play a

critical economic development and quality of

life role in our communities. Consequently, we

must discharge the backlog of $23 billion

worth of stalled hospital construction projects,

reverse this worsening trend of project

entitlement delays and interruptions, and

reduce the time it takes for a project to

navigate OSHPD’s plan review and permitting

process.

This is an economic development strategy

we can all get behind.

“...We must discharge the backlog of$23 billion worth of stalled hospitalconstruction projects, reverse thisworsening trend of projectentitlement delays and interruptions,and reduce the time it takes for aproject to navigate OSHPD’s planreview and permitting process.”

$23b

2011_01_Feb_2011_01_Jan 3/10/11 2:21 PM Page 9

Page 10

Business leader

laedC staff uPdatesLAEDC welcomes new additions to Business Assistance and Strategic Initiatives teams

business AssistAnCe teAm upDAte

In November 2010, Nancy Jordan, who

most recently worked on the Southeast Area

Social Services Funding Authority (SASSFA)

Layoff Aversion contract, assumed the role

of regional manager for the Central and South

Los Angeles and the Westside regions. She

has been with the LAEDC since March 2010.

Additionally, Christina Miller, who served as

a layoff aversion regional manager for the

Southeast L.A. County Workforce Investment

Board (SELACO) since July 2010, is now

taking on the layoff aversion contract for the

L.A. City Workforce Investment Board (L.A.

WIB). The SELACO area has a new regional

manager, Leonard Barrales. (More below.)

LeonArD bArrALes

regionAL mAnAger, LAyoff Aversion,

seLACo wib

Leonard joined the

LAEDC in January

2011. He is a results-

oriented professional

with more than 15

years of experience in

recruitment, marketing,

job placement, program

management, and

employee and business

retention service programs for both private

and public companies.

Most recently, Leonard served as the

Regional Business Services Manager for the

Canoga Park and Van Nuys WorkSource

Centers under ARBOR RESCARE with the City

of Los Angeles to promote the WorkSource

Center services to the local San Fernando

Valley business community.

Leonard holds a B.S. in Political Science

and has completed several courses and

certifications in Economic Development,

Real Estate, and International Trade.

LinDen johnson

business AssistAnCe & DeveLopment

AssoCiAte

Linden joined the

LAEDC in January

2011. He provides

a d m i n i s t r a t i v e

support to the BAP

team. Prior to the

LAEDC, he worked as

an Executive Assistant/

Project Manager for

an entertainment

company specializing in concert production.

Linden graduated from UCLA with a Bachelor

of Arts in Psychology.

DAnA metheny

exeCutive AssistAnt, eConomiC

DeveLopment

Dana joined the LAEDC

in January 2011.

Prior to the LAEDC,

she was the executive

assistant for the City

of Long Beach

Redevelopment Agency

and then for the city’s

Economic Development Bureau. In that role,

she interfaced with the Mayor’s Office, city

council members, city manager, the

members of the Redevelopment Board and

the Economic Development Commission, as

well as the Economic Development Bureau.

joAnne goLDen

pubLiC poLiCy mAnAger, strAtegiC

initiAtives

JoAnne joined the

LAEDC in November

2010. She administers

the various strategic

advisory committees

that have been

established to facilitate

the implementation of

the Los Angeles County

Strategic Plan for Economic Development.

Prior to joining the LAEDC, JoAnne served as

the Policy Manager for the San Diego County

Taxpayers Association where she led the

policy efforts for the Association, including

creating its policy priorities and conducting

research and analysis. She also drafted

several reports for the Association and worked

closely with local and state governments to

provide good government recommendations

throughout San Diego County.

JoAnne has a Master’s of Public Policy with

a dual emphasis in Economics and State

and Local Policy from Pepperdine University.

She graduated summa cum laude from Siena

Heights University with a B.A. in History with

a minor in Political Science and a Pre-Law

Certificate of Completion.

save the date: wednesday, july 202011 MID-YEARECONOMIC FORECAST

Los AngeLes mArriott Downtown• LAeDC.org/foreCAst

The LAEDC Economic Forecast & Industry Update is the premier source for in-depth

economic information and analysis on Los Angeles County and the surrounding areas.

Sign up to get the newest updates: http://bit.ly/laedcsignup

2011_01_Feb_2011_01_Jan 3/10/11 2:21 PM Page 10

Page 11

Business leader

laedC memBer aCtivity sinCe oCtoBer 2010

executIve commIttee members

Kelli Bernard • Executive Director of

Economic Development • Department of

Water and Power, City of Los Angeles

Neil Blakesley • Vice President Strategy

Marketing & Propositions • BT Americas

Dr. Zhihang Chi • Vice President & General

Manager • Air China Limited

Steve Mulcahy • Area Vice President • Verizon

board of Governors members

Paul Ashworth • Director of Planning and

Development • City of Santa Fe Springs

Pete Bellas • Dean, Economic Development •

College of the Canyons

Michael Bissonette • Vice President &

General Manager • AeroVironment Inc.

Richard Bruckner • Director of Planning,

Department of Regional Planning • L.A. County

Kathleen Burke-Kelly • President • Pierce

College

Jeffrey Cleveland • Senior Economist •

Payden & Rygel

James Dibbo • CFO • Fresh & Easy

David Duel • Principal • Regreen Corporation

Thomas Fassett • Office Managing Principal •

Reznick Group

Julio Fuentes • City Manager • City of Alhambra

Anita Gabrielian • Area Vice President,

External Affairs • AT&T

Brian Goodwin • Senior Vice President •

Metropolitan West Capital Management, LLC

Alex Hamilton • Assistant Community

Development Manager • City of Commerce

Reginald Harrison • Deputy City Manager •

City of Long Beach

Craig Hensley • Director of Community

Development • City of Duarte

Kenneth Karmin • CEO • Ortho Mattress

Chris Marino • Vice President of Strategic

Accounts • Pelican Products

Marvin Martinez • President • Los Angeles

Harbor College

Jane Pak • CEO • National Association of

Women Business Owners, Los Angeles

Emma Sanchez • Project Director; PCC/GCC

CTE Community Collaborative • Pasadena

City College

Michael Spindler • Executive Director •

Capstone Advisory Group LLC

David Stokols • President & CEO • AMCI Global

economIc leader companY

• Air China

IndustrY leader companY

• Verizon

corporate member companIes

• AeroVironment Inc.

• AMCI Global

• Capstone Advisory Group LLC

• City of Alhambra

• City of Commerce

• City of Duarte

• Los Angeles Harbor College

• Ortho Mattress

• Pasadena City College

• Pelican Products Inc.

• Regreen Corporation

• Reznick Group

affIlIate member companIes

• The Enterprise Zone Company

• Holthouse Carlin & Van Trigt LLP

• UPS

strateGIc partner

• National Association of Women Business

Owners, Los Angeles

For more information, contact Strategic

Relations Manager Justin Goodkind at

(213) 236-4813.

memBershiP

anniversary

awards

The anniversary awards were

presented to each company’s

representatives at the Board of

Governors holiday party in

December 2010.

15 Years of servIce and

support

• The Carson Companies

• PricewaterhouseCoopers LLP

• Matt Toledo, Former LAEDC

Chairman, Publisher & CEO at Los

Angeles Business Journal

10 Years of servIce and

support

• Apartment Association California

Southern Cities

• Automobile Club of Southern

California

• Greif & Co.

• Housing Authority of the City of

Los Angeles

• Pepperdine University Graziadio

School of Business and Management

• Planning Company Associates, Inc.

• State Farm Insurance Companies

• City of Lakewood

• City of Santa Clarita

For more photos

from our holiday

party, use the

barcode scanner

application on

your smart

phone to scan the image above

or visit Facebook.com/LAEDC

2011_01_Feb_2011_01_Jan 3/10/11 2:21 PM Page 11

laedC

Business leaderis produced by the LAEDC Marketing

& Communications department.

edItor & WrIter

nhien laskyVice President, Marketing &

Communications

desIGner & WrIter

v. oakley BorenCommunications Manager

WebsItes

www.laedC.org

www.laCountystrategicPlan.com

www.ChooselaCounty.com

prInted bY

GraphicProd.com • 714.617.5757

LAEDC would like to thank the following Economic Leaders:

los anGeles countY

economIc development corporatIon

444 S. Flower Street, 34th Floor

Los Angeles CA 90071

(213) 622-4300

As the Southern California region’s

premier economic development organization,

the LAEDC’s mission is to

attract, retain, and grow

business and jobs

in the regions of Los Angeles County.

2011_01_Feb_2011_01_Jan 3/10/11 2:21 PM Page 12