Los Angeles Economic Development Corporation – San Gabriel Valley Region
3rd Quarter: October through December 2012
To: San Gabriel Valley Region Strategic Partners
From: Bob Machuca, LAEDC Regional Manager, San Gabriel Valley
Business Assistance Highlights
The mission of the LAEDC is to attract, retain and grow businesses and jobs for the regions of Los Angeles County. The LAEDC San Gabriel Valley (SGV) Regional Manager is working with businesses throughout the SGV region, and is currently managing 35 open projects throughout the region, representing about 5,000 jobs. Assistance provided and coordination of resources include:
- Leading and/or participating in Regional Economic Development (Red) Teams, site selection, cost containment, financing, obtaining and expediting city/county permits, access to skilled workers, funding for employee training, and being an advocate for businesses with the SGV.
- The LAEDC SGV Regional Manager also supports the San Gabriel Valley Economic Partnership (SGVEP) and serves as the Director of Business Assistance for the SGVEP.
- Year-to-date (beginning in April 2012), the SGV Regional Manager conducted 173 In-Person (IP) consultations with companies in the SGV (Note: an IP becomes a project when a company executive states that jobs are at-risk and a business assistance engagement is approved to sustain or grow the business and jobs). To date, 9 projects have been closed representing 698 jobs at risk (jobs retained, sustained, expansion).
LAEDC Strategic Initiatives
- The Kyser Center For Economic Research and the Economic and Policy Analysis Group (Strategic Initiatives) are partnering on a Pacific Gateway Workforce Investment Network (PGWIN) grant on Alternative and Renewable Fuel and Vehicle Technology
- On November 8th, LAEDC staff testified at the City of Los Angeles Planning Commission hearing on the Cornfield Arroyo Seco Specific Plan
- On November 13th, the LAEDC issued a letter urging Los Angeles World Airports (LAWA) to adopt a SPAS (Specific Plan Amendment Study) alternative that provides for a safe, operationally superior and 21st Century North Airfield
- On November 26th, the Los Angeles Jobs Defense Council sent a letter to the “Gang of Eight” (Senators Lamar Alexander, Michael Bennet, Saxby Chambliss, Tom Coburn, Kent Conrad, Mike Crapo, Dick Durbin, and Mark Warner) urging them to avert sequestration and lead the way in reaching a long-term budget compromise. The “Gang of Eight” was given that name because it was a bipartisan group of senators who were working on crafting a solution to the fiscal cliff.
- On November 29th, the LAEDC Water Subgroup released a study (conducted by Professor Adam Rose and his team at USC) that analyzes the economic impact to Los Angeles County of a major, catastrophic event (like an earthquake in the Bay Delta region) that would close the California Aqueduct. Water supply reliability report: http://laedc.org/2012/11/29/new-study-details-impact-of-water-supply-disruption-on-los-angeles-county-economy/
LAEDC BAP (Business Assistance Program) Dept Highlights
- Carrie Rogers, LAEDC V.P. of Business Assistance was recently elected to the California Association for Local Economic Development (CALED) Board of Directors and participated in the Board’s Strategic Planning Process laying out the foundation for the organization’s short and long term direction
- 2012 IEDC Excellence in Economic Development Gold Award — The LAEDC has received the International Economic Development Council’s (IEDC) Gold Award in the Business Retention and Expansion Program Category for our Layoff Aversion Program. Carrie Rogers, Vice President of Business Assistance and Development, accepted the award, which was presented on October 2nd, during the awards ceremony at the IEDC Annual’s Conference in Houston, Texas. This is the second award the LAEDC has received in the last four years for excellence in economic development from the IEDC, the world’s largest and most well-respected independent non-profit membership and research organization devoted exclusively to the field of economic development.
Business Incentives and Program Highlights for 2013
- “Advanced Manufacturing” new sales and use tax exemption. As of January 1st, 2013, California has a new sales and use tax exemption (Senate Bill # 1128) for advanced manufacturing as defined as manufacturing that improve existing, or create entirely new, materials, products, and process through the use of science, engineering, or information technologies, high-precision tools and methods, a high-performance workforce, and innovative business or organization models in utilizing any of the following technology areas: micro- and nano-electronics, including semiconductors, advanced materials, integrated computational materials engineering, nanotechnology, additive manufacturing, or industrial biotechnology.
- State of California Employment Development Department (EDD) Work Sharing program –is a way for companies to compensate their workforce using EDD funds during slow times. Work Sharing is a program available to employers who reduce employee wages and hours as an alternative to layoffs. Employers may contact EDD’s Special Claims Office directly by calling (916) 464-3343 for more information. www.edd.ca.gov/unemployment/work_sharing_claims.htm
The Economic Data Global Express (e-EDGE) Highlights
- Job Growth in December: Moderate but Broad-based
- November Port Figures – A Tale of Two Ports: The Port of L.A. Feels the Negative Impact of the Strike while the Port of Long Beach Experiences Substantial Growth
Observations from the Field:
- The LAEDC BAP (Business Assistance Program) Team continues to see signs of increased economic activity (business growth) but there is still much caution with businesses throughout the LA County regions. During the last two (2) quarters more than half of the businesses we met with expressed some concern with upcoming tax changes, Workers Compensation, healthcare reform, and the Fiscal Cliff. Still, 30% to 40% of business C-level executives we met with have expressed confidence going into 2013 and have indicated that they will be hiring.
- As stated in past quarterly highlights, access to capital continues to be a stumbling block for businesses that want to expand. Though banks say they want to lend funds and support local business, stringent lending rules are being upheld.
- On the positive side, we continue to see more “back-shoring” (bringing back manufacturing to the USA). Reasons given by businesses for back-shoring: quality, design and speed to market, transportation costs, uptick in labor costs overseas.
- We are also seeing more and more entrepreneurs that want to start their own professional niche companies. Many of these startups are spin-offs from some of our local universities, or from businesses in the region that have downsized and laid-off some of these future entrepreneurs. Some entrepreneurs are starting ventures while continuing holding their full-time position.
- Due to availability of real estate, favorable interest rates and good cash positions, some companies have been able to expand within same city or in a nearby city as a refreshing alternative to relocating outside of Los Angeles County.
Upcoming Major LAEDC & San Gabriel Valley Economic Partnership (SGVEP) Events:
- LAEDC Cocktail Reception with Foreign Consulates/ February 4, Omni Hotel, Los Angeles
- LAEDC Annual Economic Forecast/ February 20, Biltmore Hotel, Los Angeles
— Theme: Innovation Thrives: Future of Film, TV, Digital Media & more
- LAEDC International Trade Outlook/ May 15, Renaissance Hotel, Long Beach
- SGVEP Economic Outlook Breakfast/ April 23, Pacific Palms Resort, Industry
- SGVEP Legislative Networking Reception/ April 5, City of Hope, Duarte
All Event/ RSVP details at http://laedc.org/events-page/ and www.valleyconnect.com
Feedback and Follow-Up:
As always, if you hear of any business in your City that is in need of any kind of business-assistance, has issues or challenges, or may be hinting of leaving Los Angeles County, please contact me ASAP.
Thank you. You can reach me at 213-595-5685 or email firstname.lastname@example.org