1. Welcome Bay Area Regional Economic Vitality Conversation June 11, 2004 Made possible through generous support from Pacific Gas and Electric Company

2. Background for Bay Area Economic Vitality Conversation June 11, 2004 Presented by: Stephen Levy

3. Increasing California's Competitive Edge Reduce the Negatives  Workers' Compensation  Energy Costs  Housing Costs  Improving the Efficiency of Regulations Increase the Positives  Investing in Education  Investing in Transportation  Creating Great Communities to Live & Work

4. Where We Are Now The Impact of Low U.S. Job Growth

5. United States Change in G.D.P.

6. U.S. Productivity Growth Rate

7. Job Gains 37 Months After Recession Starts

8. If Job Growth Matched Past 7 Recoveries The United States Would Have 6.2 Million More Jobs California Would Have 688,000 More Jobs

9. Where We Are Now California Job Trends

10. Non-Farm Wage & Salary Jobs

12. Job Losses Concentrated in Manufacturing

13. A Decline in U.S. Manufacturing? Employment: A Victim of Productivity Gains & Industry Shifts to Capital Intensive Sectors

14. Where We Are Now Bay Area California Economic Regions Show Different Trends California Economic Regions Show Different Trends Industries Matter for Regional Growth Industries Matter for Regional Growth

15. Growth in Non-Farm Jobs (Mar 01-Mar 04)

16. Bay Area Job Growth by Metro Area

17. The LA Economy: Stronger Than Payroll #’s Rents: Change 01 Q1 – 03 Q4

18. Manufacturing Job Losses

19. Manufacturing Jobs

20. Manufacturing Job Loss

21. Metro Area Manufacturing Job Losses

22. Nevada Manufacturing Job Growth

23. But Manufacturing is Not the Major Part of the Bay Area's Economic Base

24. Bay Area Economic Base

25. Increasing California's Competitive Edge Reduce the Negatives  Workers' Compensation  Energy Costs  Housing Costs  Improving the Efficiency of Regulations Increase the Positives  Investing in Education  Investing in Transportation  Creating Great Communities to Live & Work

26. QUESTIONS?