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

2. 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

3. Petroleum Prices Back to 2003 Levels
Helps Families In Modest Income Areas

4. Value of the Dollar: Helps Imports & Hurts Exports
100.0 %

5. Needed To Help Homes Sales
Consumer Confidence,
Needed To Help Homes Sales

6. S & P 500 Stock Index

7. Interest Rates Remain Benign Encourages Home Sales

9. California Wage & Salary Employment: A Record Level

10. California Job Gains/LossesUp
1,932,392
13.2% Up
2007
14,598,308
2015
16,531,300
Recovery
Great
Recession

12. Inland Empire Economy Gaining Strength!

13. Job Quality
Private High-Paying
California: %
Inland Empire: %

14. Inland Empire Growth was the 2nd Largest Absolute Job Gain in California in 2014!

15. Unemployment Falling, But High

16. The Issue: Poverty

17. Diversity Challenge

18. Gold Mine Theory
Secondary Tier
Primary Tier

19. Educational Challenge For Adults & Their Children

20. Health Care

21. Health Care Jobs: Continuous Growth
12% of Job Growth
Median Pay $54,261

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

23. Sophisticated Warehousing Operations

24. Port Container Volumes Strong Even With January Labor Slowdown

25. Fulfillment Warehousing

26. E-Commerce Growth Rates Year Over Year by Quarter

27. Net Industrial Space Absorption
23.1 million
20.7 Million Sq. Ft. of Industrial Under Construction December-2015

28. Industrial Overwhelmingly In The Inland Empire

29. Industrial Vacancy Rate
3.6%

30. Asking Lease Rates On Industrial Facilities Are Rising

31. Logistics Powerful Job Growth:
23% of New Jobs
Median Pay $45,677

32. Permit Valuation Increasing But Slowly

33. PM 2.5: Diesel Pollution
-95.6%

34. Manufacturing: Should Be A Major Growth Source

35. California Manufacturing Job Growth Just 3.0% of U.S. Growth

37. CA Is Not Loved By Executives & Entrepreneurs

38. Inland Empire Manufacturing Jobs
4% of Job Growth
Median Pay $49,567

39. Construction: Finally Coming Back

40. Notices of Default At Very Low Levels
Only 835 NODs in November

41. Underwater Homeowners
Negative Equity Has Dropped
4th Qtr 2009 – 3rd Qtr 2015
54.9% to 11.4%

42. Home Price Trends
-26.9%
83.4%

43. Long Term Competitive Price Advantage Still Exists
$353,820
$350,000
$161,000
$173,000

44. Affordability to Median Income Household 3rd Quarter 2015
I. Empire: 46%-54%
LA: %-76%
SD: %-76%
Orange: 20%-80%

45. Home Sales Volume No Breakout

46. Construction Jobs: Finally Growing
12% of Job Growth
Median Pay $51,051

47. Assessed Valuation 2008-2015 Up $3.2 Billion 0.8% Inflation Up 8.6%
SB Co. Up +2.8%
Riv Co. Down -0.8%

48. High Paying Sectors
Jack Dangermond
Ahmad Adel Al-Khatib

49. Higher End Homes Draw Well Educated Workers
UPLAND
$484,409
$463,034
Claremont
Loma Linda
$590,000
$360,087
$351,504
$417,443
$585,199
EASTVALE
$468,269
$440,000
CORONA
$436,898
TEMECULA
$358,516
$399,676

50. Migration of AA or Higher

51. Professionals, Mgmt., Utilities, Information, Mining Slowly Coming Back
4.1% of Growth
Median Pay $65,453

52. Office Space Net Absorption
492,858

53. Office Vacancy Rate
15.0%

54. Office Lease Rates Barely Starting To Recover

55. Gold Mine Theory
Secondary Tier
Primary Tier

56. Retail Sales 2006-2015 Up $7.7 Billion, 12.6% Inflation Up 16.1%
SB Co. Up +14.4%
Riv Co. Up +10.7%

57. Low Paying Job Growth Retail, Consumer & Bus
Low Paying Job Growth Retail, Consumer & Bus. Services, Hotel, Eat & Drink Amusement, Agriculture, Employment Agency
45% of Job Growth
Median Pay $28,927

58. Federal, State, Local Government
-5% of Job Growth
Median Pay $57,984