John Husing, Ph.D. Economics & Politics, Inc. Chief Economist, IEEP Inland Empire Prosperity . . . John Husing, Ph.D. Economics & Politics, Inc. Chief Economist, IEEP

After Losing 8. 71 Million Jobs … Now At A Record Level of Jobs U. S After Losing 8.71 Million Jobs … Now At A Record Level of Jobs U.S. Jobs Long Slow Growth - Not Over-Heating

Value of the Dollar: Helps Imports & Hurts Exports 100.0 2012-2016 22.1%

California Job Gains/Losses Up 1,074,272 6.8% Up 2007 15,844,325 2016 16,918,587 Recovery 2,253,330 Great Recession -1,179,058

Why Pass Area Is Changing: “Dirt Theory” I-15 Freeway 1. Affordable Housing & Population Serving Jobs 2. Industrial Projects & Blue Collar Jobs 3. Expensive Housing, Skilled Workers & High Paying Jobs

Huge housing project approved that could 'forever change' Banning October 1, 2016 Huge housing project approved that could 'forever change' Banning Majority of split City Council votes in favor or Rancho San Gorgonio, a proposed 831-acre, 3,385-home, master-planned community

Inland Empire Population Greater Than 25 of 50 States 2010 2016 Change Growth Banning 29,603 30,834 1,231 4.2% Beaumont 36,877 45,118 8,241 22.3% Calimesa 7,879 8,289 410 5.2% 2010-2016 Growth: 6.2%

Inland Empire Economy Gaining Strength!

Job Quality

Inland Empire Growth was the 2nd Largest Absolute Job Gain in California in 2015!

Unemployment Rates

The Issue: Poverty 15.4% 8.3% 10.1% Banning Beaumont Calimesa Banning 32.5% 11.5% 18.7%

Median Household Income Banning Beaumont Calimesa Riverside Co. $39,556 $66,775 $42,392 $58,292

Diversity Challenge Banning Beaumont Calimesa Banning Beaumont 4.2% 6.8% 0.9% Banning Beaumont Calimesa 7.6% 6.8% 0.3% Banning Beaumont Calimesa 47.5% 45.7% 75.8% Banning Beaumont Calimesa 38.8% 37.7% 19.8%

Gold Mine Theory Secondary Tier Primary Tier

Educational Challenge For Adults & Their Children Banning Beaumont Calimesa 53.0% 36.3% 47.5%

Health Care

Health Care Jobs: Continuous Growth 2011-2016 11% of Job Growth Median Pay $54,261

Inland Empire Underserved by Health Care Workers 26.6% More People Per Health Care Worker in 2015

Sophisticated Warehousing Operations

Port Container Volumes On Pace For Import Record

Fulfillment Warehousing

E-Commerce Growth Rates Year Over Year by Quarter 1.1% 8.1%

Net Industrial Space Absorption 21.5 million

Industrial Overwhelmingly In The Inland Empire

Industrial Vacancy Rate 3.7%

Logistics Powerful Job Growth 2011-2016 23% of New Jobs Median Pay $45,677

PM 2.5: Diesel Pollution -91.4%

Manufacturing: Should Be A Major Growth Source

California Manufacturing Job Growth Just 5.4% of U.S. Growth

Inland Empire Manufacturing Jobs 2011-2016 5% of Job Growth Median Pay $49,567

Construction: Finally Coming Back

Home Price Trends -21.7% 91.3% Banning Beaumont Calimesa $230,000 $290,000 $148,750 $302,000 $369,000 $370,000 -23.8% -21.4% -59.8% -21.7% 91.3%

Long Term Competitive Price Advantage Still Exists Banning Beaumont Calimesa $230,000 $300,444 $148,750

Home Sales Volume No Breakout Banning Beaumont Calimesa 159 349 32 -1.5% -0.6% -33.0% +0.7%

Domestic In-Migration: Stalled -10,241 8 Years -1,280 per year

Construction Jobs: Growth Gaining 2011-2016 13% of Job Growth Median Pay $51,051

Assessed Valuation: July 1, 2016 Assessed Value Rank of 52 2015-2016 Growth Per Capita Banning $1,961,000,000 40 4.2% $66,561 39 Beaumont $3,915,000,000 32 7.5% $86,781 21 Calimesa $743,000,000 50 7.9% $89,598 20 Riverside Co. 5.1% $105,719

High Paying Sectors Jack Dangermond Ahmad Adel Al-Khatib

BA or Higher Banning Beaumont Calimesa BA+ 15.8% 25.4% 14.8% AA+ 23.1% 34.5%

Higher End Homes Draw Well Educated Workers UPLAND $497,455 $504,397 Claremont Loma Linda $594,476 $353,820 $355,000 $449,386 $599,310 EASTVALE $465,532 $450,500 CORONA $441,965 TEMECULA $376,303 $405,538

Migration of AA or Higher Redlands-Loma Linda Western Inland Empire Temecula-Murrieta

Professionals, Mgmt., Utilities, Mining Slowly Coming Back 2011-2015 3.8% of Growth Median Pay $65,453

Office Vacancy Rate 14.2%

Low Paying Job Growth Retail, Consumer & Bus Low Paying Job Growth Retail, Consumer & Bus. Services, Hotel, Eat & Drink Amusement, Agriculture, Employment Agency 2011-2016 40% of Job Growth Median Pay $28,927

Taxable Sales: 2015 Rank of 52 Growth Per Capita Banning $183,000,000 42 0.6% $6,228 43 Beaumont $412,000,000 35 11.1% $9,286 32 Calimesa $63,000,000 50 -1.6% $7,731 37 Riverside Co. 3.1% $14,222

Federal, State, Local Government 2011-2016 -3% of Job Growth Median Pay $57,984

Looking Ahead . . . Inland Empire Is a Job Engine Again Construction Coming Back … Moving Into Pass Area Manufacturing Will Be Under Pressure Logistics Will Remain Strong … Moving Towards Pass Area Health Care Expanding … Best Odds For High Paying Jobs Office Growth An Issue Given E-Commerce Changes Lower Paying Jobs Smaller Share Than Most Areas Higher Paying Jobs Smaller Share Than Most Areas Labor Availability May Become An Issue Forecast? 48,700 …. 41,575 so far

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