Inland Empire Prosperity: Long-Term Growth and Economic Opportunities

1. Inland Empire Prosperity . . . What’s It Beginning to Feel Like! John Husing, Ph.D. Economics & Politics, Inc. Chief Economist, IEEP

2. After Losing 8.71 Million Jobs …U.S. Jobs Long Slow Growth - Not Over-Heating

3. Petroleum Prices Helps Families In Modest Income Areas

4. Value of the Dollar:Helps Imports & Hurts Exports

5. Consumer Confidence, 2009-2015 Needed To Help Homes Sales

6. Confidence Helps Home Sales

7. Interest Rates Remain BenignEncourages Home Sales

9. California Wage & Salary Employment: A Record Level

10. California Job Gains/Losses 2014 Up +401,217 37.8% Up 2008-2010 -1,066,400 2011-2014 +1,301,708 Recovery Great Recession

12. Greg DevereauxChief Executive Officer San Bernardino County

13. Jay OrrChief Administrative Officer, Riverside County

14. Very Rapid Job Growth: 2 Straight Years! 2011-2014 Gained Back 139,767 of 142,933 lost or 98.8% 3,167 Jobs To Go 40,100

15. Inland Empire Growth was the 2nd LargestAbsolute Job Gain in California in 2014!

16. IE Job Growth Rate Ranked 3rd after the Bay Area in 2014

17. IE Unemployment Rate: Closing In on the National Level 7.3% 6.1%

18. Gold Mine Theory Secondary Tier Primary Tier

19. High-End & Office Based Jobs Film & Commercials Engineering Legal & Accounting Police & Fire Health Care Science & Information

20. Higher End Homes Draw Well Educated Workers UPLAND $484,914 $465,778 Claremont Loma Linda $568,700 $357,037 $345,243 $427,095 $585,199 EASTVALE $468,269 $459,000 CORONA $429,667 TEMECULA $344,095 $393,603

21. Migration of Educated Workers

22. Still Relatively Low Share of BA or Higher

23. Office Absorption Follows Higher-End Workers High-End Jobs Followed Workers into the Area

24. Office Vacancy Rates Improving But Still Very High 24.0% 15.8%

25. Office Space Ratio to Population 4.3 million people are Professionally Under-Served More educated workers will cause more firms to migrate

26. Professionals, Mgmt., Utilities, Information, Mining Slowly Coming Back +4,100 Down -5,600 Median Pay $55,308 -9,700

27. Films & Commercials

28. Economic Impact of Film Production

29. Film Projects

30. Health Care

31. Inland Empire Underserved by Health Care Workers 27.7% More People Per Health Care Worker in 2014 36.5% More People Per Health Care Worker in 2010

32. Who Will Health Care Workers Serve? 27.3% 22.0%

33. Who Will Health Care Workers Serve?

34. Health Care Jobs: Continuous Growth Up +24,100 Median Pay $57,443 +17,400 +6,700

35. Logistics Flow of Goods

36. Sophisticated Warehousing Operations

37. Port Container VolumesSoaring Even With Labor Slowdown

38. Fulfillment Warehousing

39. E-Commerce Growth RatesYear Over Year by Quarter

40. Industrial Vacancy Rate Recovering Everywhere! 2005/2006 2009Q3 2014Q4 Inland Empire 2.7% 12.8% 4.5% San Diego 7.0% 12.0% 6.7% Orange Co. 5.4% 6.5% 2.7% L.A. Co. 2.1% 3.2% 1.9%

41. Industrial Construction 2014 IE Net Absorption: 16.1 million Sq. Ft.

42. Inland Empire Logistics JobsIE’s Major Competitive Advantage Up +20,100 +31,200 Median Pay $43,911 -11,100

43. Logistics Incredibly Important To Inland Empire’s Economic Health 2012: 25% of New Jobs 2013: 19% of New Jobs 2014: 20% of New Jobs Remember: Every Gold Mine Job Also Funds Another Secondary Tier Job

44. PM 2.5: Diesel Pollution

45. Health Effects Institute dgreenbaum@healtheffects.org 617-488-2331 • EPA & CARBSPONSORED 2012-2015 SCIENTIFIC STUDY . . . • Truck Pollution Disappearing! • 2007 Truck Engines: No Lifetime Cancer Risk • 2007 Truck Engines: 90% End To NO2 & PM2.5 Emissions • 2010 Engines: NO2 & PM2.5 “Substantially” Cut Further

46. Manufacturing: Should Be A Major Growth Source

47. California Manufacturing Job GrowthJust 2.8% of U.S. Growth

49. Manufacturing Orders Rising

50. CA Is Not Loved By Executives & Entrepreneurs