Economic Conditions in the Sacramento Region ULI Real Estate Outlook 2013 December 6, 2012 Ryan Sharp, CEcD CSER Director

ECONOMIC & DEMOGRAPHIC PROFILES SITE SELECTION RESEARCH & INFORMATION RESEARCH VALIDATION & PEER REVIEW ECONOMIC & TAX IMPACT STUDIES INDUSTRY STUDIES WORKFORCE STUDIES ECONOMIC DEVELOPMENT STRATEGIES MARKET & FEASIBILITY ANALYSES POLICY ANALYSIS & PROGRAM EVALUATION SUPPORT INFORMATION EVALUATION CONSULTATION CORE SKILLS: Economic & demographic analysis & forecasting Regional economics & economic development practices Market & feasibility analysis Econometric & input-output modeling Social science research & survey design Strategic planning & collaborative processes Performance measurement Geographic Information Systems

Current Conditions

Positive job growth for six months

Most large sectors added jobs in past year

Substantial gains in four major sectors

Total employment around year 2001 levels

Unemployment rate above statewide average

Job growth ranks in middle of state regions

Sacramento among fastest-growing large metro areas nationally

Moderate but declining competitive position

Economic Outlook

Leading indicators improving for nation and state

Stable growth expected for state

Regional business sentiment tapering off

Job growth expected to improve

Only four major sectors with negative job growth forecast

Notable declines in unemployment anticipated

Regional Strategic Planning nexteconomycapitalregion.org

Leaders from Valley Vision, the Metro Chamber, SACTO, and SARTA sparked Next Economy in response to the severe regional recession Objective is to identify catalytic strategies along with specific actions and champions to accelerate new job creation, investment, and innovation The core research agenda and related findings drove the collaborative planning process Collaborative structure includes a leadership group, a steering committee, various work groups, three regional forums, and targeted outreach Tied into California Economic Summit to leverage regions in reigniting the state’s economy (caeconomy.org) PROJECT BACKGROUND

PROSPERITY PLAN STRUCTURE Call to ActionUnified VisionGoalsObjectivesStrategies Actions / TacticsChampionsPerformance Measures SHIFTING TO ACTION

UNIFIED VISION Within five years the Capital Region will be widely regarded as a: Sought-after place for business growth, investment, and entrepreneurship Desirable place for a quality workforce and young professionals to live, study, work, and play Diverse economy renowned for its core business clusters and driven in large part by export activity

GOALS Foster a strong innovation environment Amplify the Region’s global market transactions Diversify the economy through growth and support of core business clusters Grow and maintain a world-class talent base Improve the regional business climate for economic growth

CORE BUSINESS CLUSTERS 37,000 jobs $3.5 billion output Agriculture & Food 11,000 jobs $1.7 billion output Advanced Manufacturing 3,000 jobs $850 million output Clean Energy Technology 17,000 jobs $1.1 billion output Education & Knowledge Creation 31,000 jobs $9.7 billion output Information & Communications Technology 99,000 jobs $8.6 billion output Life Sciences & Health Services

Thank You! Regional economic conditions have improved Moderate competitive position Forecast shows uptick in next 12 months Next Economy aimed at accelerating job growth and investment