Regional Economic Development Strategy

1. 2010 Sonoma State University
Economic Outlook Conference
Developing a Regional Strategy to
Attract & Retain Jobs
The View from Solano
Presented by
Mike Ammann, President
Solano Economic Development Corporation

2. The Fundamentals of EDO
• Leadership from both the CEO & from its governing
group; whether it’s a board of directors, a Mayor or a
Governor
• a professional, innovative & hard working staff;
• a well funded organization so that you can stand out
above the crowded competition;
• a compelling “product” so that you have something to
sell such as a “shovel ready sites” research park,
industrial & commercial parks or unique incubators –
something that differentiates you as a community.
• Now let’s discuss Solano and it’s strategy

3. San Francisco REGIONAL HIGHLIGHTS
• Counties: Alameda, Contra Costa, Marin, Napa, San Benito,
San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano and
Sonoma.
• Total Nonfarm jobs grew by 12.3% from 1995-2008, although
Nonfarm jobs declined by 4% from March 2008 to March
2009. (This does not include Farm or Private Households jobs.)
• The region’s population grew 1.1% while total employment
(including Farm jobs) declined 4.2% and the average annual
wage grew by 22.2% (2001-2007).
• 95.7% of all businesses have fewer than 50 employees.
• 9% of the population reported as self-employed.
• The region’s Gross Domestic Product (GDP) grew 33.4% in five
years.

4. Sacramento REGIONAL HIGHLIGHTS
• Counties include: El Dorado, Placer, Sacramento, Sutter,
Yolo and Yuba.
• Total Nonfarm jobs grew by 34% from 1995-2008,
although Nonfarm jobs declined by 5.1% from March 2008
to March 2009.
• The region’s population grew 11.8% while total
employment (including Farm jobs) grew 10.4% and the
average annual wage grew by 23.8% (2001-2007).
• 96.2% of all businesses have fewer than 50 employees.
• 10.4% of the population reported as self-employed.
• The region’s Gross Domestic Product (GDP) grew 91.2% in
five years.

5. Solano - Center of Eastward Expanding
SF-Sacramento Mega Region

6. NorCal Mega Region = 24M Pop 2050

7. 7 Unique Cities in Solano County
Benicia, Dixon, Fairfield
Rio Vista, Suisun City,
Vallejo & Vacaville

8. 1989 – 2008 Population
Increase +172,312

9. 1980 to 2000 – Rapid Change
• Economy dominated by agricultural
commodities & major military installations.
• Major transition with close of Mare Island
Naval Base in 1993 from WWII employment
peak of 40,000 to 5,800 workers.
• Genentech announces it will locate its new
$250 million manufacturing facility on 100
acres in Vacaville, California, on October 31,
1994.

10. Solano Leads Recession In - Not as
Deep - Nonfarm Payroll Change
3% 2.6% 2.4%
2.3% 2.1%
2.0%
2% 1.5%
1.3% 1.1%
1% 0.6% 0.4% 0.7% 0.4%
0.3%
0%
-1%
-1.3% -1.1%
-2% -1.7%
-3% -2.4% -2.4%
-4% -3.6%
-4.0%
-5% -4.3% -4.3%
-5.0% -4.9%
-6%
Marin-SF- Silicon Valley East Bay Napa- Solano Sacramento
San Mateo Sonoma
2006 2007 2008 2009
Percent changes of nonfarm payroll employment, based on annual
averages. Not seasonally adjusted. Source: CAEDD.

11. 12-Mo. Payroll Employment Change
December 2009
East Bay
Education & Health Serv. 0.6
Agriculture 0.1
Mining & Logging 0.0
Information -0.5
Other Services -0.5
Transp. & Utilities -1.7
Finance & Real Estate -2.0
Leisure & Hospitality -2.5
Wholesale Trade -2.6
Retail Trade -3.4
Manufacturing -3.4
Government -4.5
Prof. & Business Serv. -4.7
Construction -5.9
-6 -5 -4 -3 -2 -1 0 1
Unit: thousand workers. Changes in payroll jobs between December 2008 and 2009. Not
seasonally adjusted. Source: CAEDD.

12. Housing Is Recovering
Year-over-Year House Price Change
30%
25%
20%
15%
10%
5%
0% -3.8%
-5% -6.2%
-10% -7.7%
-15%
-20%
-25%
-30%
-35%
97 98 99 00 01 02 03 04 05 06 07 08 09
US Average California East Bay

13. Solano Index & Cluster Studies
http://www.solanocounty.com/economic index

14. Major Economic Restructuring Trends
• Continued eastward migration from Bay Area.
• Higher educated family forming commuters
looking for housing affordability resulting in today
75,000 leaving each work day.
• Clusters forming in life sciences, energy, trade &
logistics (Travis AFB & wine) , health care, higher
education (UC Davis, Touro, U of Phoenix, SCC
expansions), specialized mfg & food processing
(Jelly Belly's, Clorox, & Budweiser)

15. 7 Growing Industry Clusters
• A diverse mix of sectors ranging from
– life sciences
– trade and logistics
– health services
– advanced food, beverage
– other specialized manufacturing
– professional services
– construction
• Total clusters represent 40% of all jobs since 1995 – up
from 28%.
• Population ripple effect on increased retail, residential
construction & service demand.

16. Retention & Growth of Travis AFB
• Travis AFB is the largest
employer in the City
and Solano County with a
workforce consists of
14,353 military members
and civilian employees.
• Economic impact of over
$1.6 billon annually.
• $350M investment over 5
years with new C-17 wing
13 air craft along with C-5
and KC -10

17. Greater East Bay Innovation Zone
Fostering regional innovation in energy by building on competitive
advantages
UC Davis
Innovation Hub
UC Berkeley /National
Labs Innovation Hub
Livermore/Sandi
Labs
Innovation Hub

18. Solano’s ED Goals for the Next Decade
• Retention and growth of Travis Air Force Base, Solano's largest employer
• Double life science cluster to 5,000 high wage job
• Energizing the retention and greening of existing carbon-based energy
companies, while attracting the rapidly expanding clean energy
companies that are creating new careers to meet clean air regulatory
requirements of reducing CO2.
• 3 million more consumers by 2035 will increase demand for locally
grown agriculture products and cause expansion of Solano's existing food
processors and the location of new.
• Bar bell population of young and old will increase Health & Social Services
which grew by 5 percent during 2007-08. A decade of investment in new
and renovated health care facilities now ranks Solano among the finest in
Northern California. West coast only remaining major military hospital and
major prison medical facility. .

19. Contact Information
Michael Ammann
President, Solano EDC
360 Campus Lane, Suite 102
Fairfield, CA 94534
Toll Free (888) 864-1855
mike@solanoedc.org