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

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

7. 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

8. 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

9. 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%
Growth: 6.2%

10. Inland Empire Economy Gaining Strength!

11. Job Quality

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

13. Unemployment Rates

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

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

16. 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%

17. Gold Mine Theory
Secondary Tier
Primary Tier

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

19. Health Care

20. Health Care Jobs: Continuous Growth
11% of Job Growth
Median Pay $54,261

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

22. Sophisticated Warehousing Operations

23. Port Container Volumes On Pace For Import Record

24. Fulfillment Warehousing

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

26. Net Industrial Space Absorption
21.5 million

27. Industrial Overwhelmingly In The Inland Empire

28. Industrial Vacancy Rate
3.7%

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

30. PM 2.5: Diesel Pollution
-91.4%

31. Manufacturing: Should Be A Major Growth Source

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

34. Inland Empire Manufacturing Jobs
5% of Job Growth
Median Pay $49,567

35. Construction: Finally Coming Back

36. 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%

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

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

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

40. Construction Jobs: Growth Gaining
13% of Job Growth
Median Pay $51,051

41. Assessed Valuation: July 1, 2016
Assessed Value
Rank of 52
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

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

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

44. 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

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

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

47. Office Vacancy Rate
14.2%

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

49. Taxable Sales: 2015 Rank of 52 Growth Per Capita Banning $183,000,00042
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

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

51. 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