1. Measureable Business Expansion and Retention 90 Days A CALED TECHNOLOGY PARTNER

2. What to Expect: Ask Hard Questions… Get Real Answers How healthy is your Business Community? Can employment and sales trends predict future tax revenues? Which local businesses will fail without intervention?

3. Business Expansion and Retention Impact Analysis (businesses and projects) The Buy-Local Solution

4. “Business Fabric: A community’s total business transaction and the efficiency of money changing hands”.

5. Every business produces different impacts on the business fabric. SMI measures these influences to discover the community’s important wealth potential.

6. The Footprint 1 Metal Fabricating job in LA County The Footprint $118,160 average economic Impact for one job in LA County Sheet metal industry represents gross economic impact of the company’s revenues per employee $48,292 Average Income for CA metal worker (+ benefits) $3,323 Indirect business tax benefits per employee The JOB Taxes

7. 1. Assess Business Condition, Risks and Supply Chain 2. Identify at-risk companies. 3. Mitigate needs to retain key businesses. 4. Launch solution to capture more local contracts and spending.

8. Eureka, CA A Case Study

10. 5-Year Baseline / Sales 47% Sales Increasing 25% Sales Stable 28% Sales Decreasing

11. Sales Trends 34% increase 24% no change 42% decrease Baseline 47% Sales Increasing 25% Sales Stable 28% Sales Decreasing

12. Labor Trends 11% increase 62% no change 27% decrease

13. Enterprise Zone - Quick Look 66% of respondents in Enterprise Zone 16% use Bidding Preference 40% use Sales Tax 20% use Op Loss Forward 36% Unused Tax Credit 68% Bus Exp Deduction

14. Eureka - who need financing? 53% working capital 13% real estate 5% fixed asset 29% other

15. 4% need help with manufacturing process 22% can’t find skilled labor 23% facilities are not adequate

16. Q. Eureka, Are Your Business Facilities Adequate For Your Current Needs? 23% of respondents said NO These companies may also be at Risk. What’s the economic footprint of these companies on Eureka’s business fabric?

17. Doing the Math: What’s the Economic Value to the City for those companies whose Facilities are not adequate? Gross Economic Impact $45.8 million Labor Income$18.3 million Jobs 623 Indirect Business Tax $2.3 million 5-year Impact $229 million

18. 84% of respondents said YES

19. 92% of respondents said YES they would place their orders in the system

20. $1.3 million in gross economic impact $569k in Payroll 24 jobs $157,000 in indirect business taxes

21. Eureka - What goods and services do you buy outside the State? Chemicals, children’s furniture and clothing and accessories, clothes, computer peripherals, computers, diapers by the bale, software and hardware, exercise equipment, supplies, fragrances, essential oils, fabric and supplies, hearing aids and ear molds, medical supplies motorcycles and parts, photographic equipment and supplies, printing, publishing products and equipment, seed, bird feeders, gift items, office equipment, specialty building supplies, sterling silver jewelry, technology equipment, tractors; trailers vending machines, game machines.

22. Lost Corp Spending Typically, 10 to 15% of corporate purchasing dollars are Arbitrary! M OST ARBITRARY DOLLARS LEAVE THE AREA WITH LITTLE OR NO EFFORT TO CONTRACT WITH LOCAL COMPANIES. O UR JOB IS TO CAPTURE THESE MONIES.

23. Lost Public Dollars Public buyers use buying pools, strategic sourcing and bundling to obtain the lowest price and often without regard to local vendors or economic initiatives. Purchasing decisions that were made to save “thousands” often cost their community’s million$$.

24. EXAMPLE (not Eureka) A CA purchasing department will buy $3.5 million in computer equipment over 3 years. The decision has been narrowed to two suppliers. A local company has bid $3.5 million and an out of area vendor has bid $30k less. The purchasing agent selects the out-of-area bidder. The result of this decision is:

25. Look close… The expected: Gained - $30,000 The unexpected: Lost - $166,000 in indirect business taxes Lost - $6.5 million in gross economic impact Lost - $1.4 million in payroll Lost - 22 jobs Lost - $313,000 in capital income

26. ROI (R ETURN ON I NVESTMENT *) The typical SMI program returns its value in the first $300k of captured dollars C APTURE J OBS T AXES E CO I MPACT $1 million 24 $157,4001.3 Million $3 million 72 $472,000 4 million $5 million 119 $787,000 6.8 million *Assume half the capture is in retail and half in wholesale trade.

27. We Prove it! SMI has tools to measure the economic impact of every transaction.

28. CASE STUDY Comparing 2 CA Businesses Hardware Manufacturing Company Greenhouse/Nursery

29. Communities Share the Wealth

30. Rob Gilmore, CEO Phone: 406 763 4412 Email: Rob@solutionmountain.com Fax: 866 847 8033 URL: www.solutionmountain.com Or Call CALED 916 448 8252 Ext 10