Download - Solano Index Presentation @ Solano Economic Summit 4

WHAT IS AN INDEX?

The Solano County Index tells a story through indicators that measure the strength of our economy and the health of our community – highlighting challenges and providing an analytical foundation for leadership and decision making.

WHAT IS AN INDICATOR?

Indicators are measurements that tell us how we are doingGood indicators do the following: They are bellwethers that reflect fundamentals of long-

term regional health; They reflect the interests and concerns of the community; They are statistically measurable on a frequent basis; and They measure outcomes, rather than inputs.

WHAT IS AN INDUSTRY CLUSTER?

An industry cluster is a geographic concentration of independent, internationally competitive firms in related industries, and includes a significant number of companies that sell their products and services outside the region.

Healthy, outward-oriented industry clusters are a critical prerequisite for a strong economy.

OUR CHANGING ECONOMY

Our Economy has Produced Growing Revenues, Incomes, Jobs, and Firms

Our incomes have grown. Our job growth has been

strong and the number of individual business owners has proliferated.


Our Economy has Diversified and Our Competitive Advantages have Grown

Leading clusters represent a growing share of the Solano county economy.

These clusters grew faster in Solano than in other Bay Area counties.

OUR CHANGING COMMUNITY

Who We Are Our population is

becoming much more diverse.

Our population is becoming older—and younger.


Who We Are Our population growth

has slowed. We are experiencing

rising outmigration, but continued in-migration as well.

Many college educated people are arriving, but more are leaving.

HOW WE ARE DOING Incomes are rising, but many households are

being squeezed by housing costs that are rising faster.

More of our youth are in better shape, but fewer are prepared for higher education.

Crime rates have declined over the long term, but spiked up recently.

Higher home prices have increased property tax revenues, but prices are now dropping significantly.

THE CONNECTION BETWEEN OUR ECONOMY AND COMMUNITY

Connecting Residents to Jobs

We have fewer higher-skilled jobs than highly-educated residents.

Many residents must commute outside the county to work.

We have been producing more housing than jobs.

CHANGE IN PER CAPITA INCOME

Data Source: Bureau of Economic AnalysisAnalysis: CEIRest of San Francisco Bay Area includes Alameda, Contra Costa, Marin, Napa, San Benito, San Francisco,San Mateo, Santa Clara, and Sonoma Counties* Preliminary per Capita Income estimates for 2007.

Change in per Capita IncomeSolano County, Rest of San Francisco Bay Area, California, and United States

What does this mean?Since 2000 Solano County’sper capita income has beenincreasing at a faster ratethan in the rest of the BayArea, California and thenation. This means that theCounty has experienced arise in relative prosperity.

ANNUAL NUMBER OF JOBS

Annual Number of JobsSolano County 1990-2007

Data Source: California Employment Development DepartmentAnalysis: CEI

What does this mean?Solano County’s recent jobgrowth and prior reboundsfrom earlier economicshocks, such as the closureof Mare Island, indicatesthat the County hasdemonstrated resiliency.

CHANGE IN EMPLOYED RESIDENTSChange in Employed Residents and Total Industry Jobs

Trends relative to 2000 • Solano County


+ 6%Between August

2000 andAugust 2008, the

numberof jobs and employed

residents in the County

grew over 6%.

FIRM SIZE BY NUMBER OF EMPLOYEES

Firm Size by Number of EmployeesPercent of Total Solano County Firms by Employment Size

Data Source: California Employment Development DepartmentAnalysis: CEINote: Based on employers who are subject to the Unemployment Insurance provision of the UnemploymentInsurance Code.

What does this mean?Solano County is dominatedby micro-enterprisesthat are critical to thevitality of the economy.While large firms arestill important, economicdevelopment effortsshould also focus on theneeds of these microenterprises.

WHAT DOES IT MEAN?

Solano County is dominated by micro-enterprises that are critical to the vitality of the economy.

While large firms are still important, economic development efforts should also focus on the needs of these microenterprises

PERCENTAGE CHANGE IN INDUSTRY EMPLOYMENT

Percent Change in Industry Employment andIndividual Business Owners (with no employees)

Solano County

Data Source: California Employment Development Department and U.S. Census Bureau, Nonemployer StatisticsAnalysis: CEI

+ 24%Between 2000

and 2006,Individual Business

Owners with no employeesincreased by

24%.

INDUSTRY SECTOR EMPLOYMENT

Comparison of Industry Sector EmploymentSolano County


What does this mean?Solano County’s economicdiversity has created agreater balance of jobs,which provides increasedstability in times ofeconomic turbulence.

INDUSTRY CLUSTERS

Advanced Food and Beverage Manufacturing Construction Health and Social Services Life Sciences Professional and Environmental Services Specialized Manufacturing Trade and Logistics

SOLANO CLUSTERS OF OPPORTUNITY2000-2006

What does this mean?Solano County’s major industry clusters aremore specialized and growing faster than thesame industries in the rest of the Bay Area.These clusters pay higher wages and generatedemand for support services.

Size of bubble represents employment size in 2006.

CLUSTERS OF OPPORTUNITYSOLANO COUNTY & REST OF BAY AREA, 2000-2006

AGE DISTRIBUTION

+ 16%From 2000 to

2006 thepopulation between 18

and 34 years of age

increased by 13,000

people (16%).

Age DistributionNumber of People and Percent of Growth

Solano County

Data Source: U.S. Census Bureau, Decennial Census 2000 and American Community Survey 2006Analysis: CEI

POPULATION BY RACE & ETHNICITYPopulation by Race and Ethnicity

Number of People and Percent of GrowthSolano County

What does this mean?Solano County’s changingdemographics have implicationson the demandfor education, health, andpublic services as thepopulation becomes older,younger, and morediverse. Slower populationgrowth changes theunderlying drivers of someelements of the economy,including housing andconstruction, whichhistorically been driven bypopulation growth.

POPULATION GROWTH

+26,800Solano County’s

population grew by26,800 people between

2000 and 2007.Although the county has

experienced a steadyslowing in population

growth, the county grew0.5% in 2007.

Population GrowthPercent Change over Prior Year

Solano County, Rest of San Francisco Bay Area, and California

Data Source: California Department of FinanceAnalysis: CEI* Provisional population estimates for 2007** San Francisco Bay Area includes Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, andSonoma Counties.

DOMESTIC AND FOREIGN MIGRATION

Net foreignImmigrationNet foreign immigration isthe difference of all legalforeign immigrants enteringand leaving the County.

Domestic and Foreign MigrationSolano County

Data Source: California Department of FinanceAnalysis: CEI*Provisional population estimates for 2007

EDUCATIONAL ATTAINMENT

+1,100In 2006, more than 1,100

people with bachelor’sdegrees moved into the

County than left.

Educational Attainment of People Migratingin and out of Solano County

2006

HOUSING AFFORDABILITYHousing Affordability

Percent of Homeowner Households with Housing Costs Greater Than 35% of Income

Solano County, San Francisco Bay Area, and California

What does this mean?With rising housing costsand foreclosure rates,Solano County has notescaped the national andstatewide housing crisis.

RESIDENTIAL FORECLOSURE ACTIVITY

Residential Foreclosure ActivityPercent Change in Annual Foreclosure Sales

Solano County and California

Data Source: DataQuickAnalysis: CEI

1,059There were 1,059

foreclosure sales in thefirst quarter of 2008.

CHILDHOOD OBESITY

Percentage of Children Determined to NOTbe Overweight or Obese by Body Mass Index

Solano County

Data Source: UCLA Center for Health Policy Research, California Health Interview SurveyAnalysis: CEINote: For adolescents,“Overweight or obese” includes the respondents who have a BMI in the 95th percentile withrespect to their age and gender.Child population-under the age of 12 including infants.

What does this mean?Solano County has madesome progress in reducingchildhood obesity whichcan be a cause of anumber of significant andcostly health problems inlater years.

HIGH SCHOOL DROPOUT RATE

High School Dropout RateSolano County 2007

Data Source:California Department of Education, Solano County School DistrictsAnalysis: CEINote:This is the first year that dropout counts are derived from student-level data.

What does this mean?Solano County’s highschool dropout rates arerising at a time whenthe economy demandshigher skills from thelocal workforce.

FELONY OFFENSES

Felony Offenses Rate per 100,000 peopleSolano County and California

Data Source: California Department of JusticeAnalysis: CEINote: Felony offenses include violent, property, and drug offenses

What does this mean?After years of progress,crime rates have recentlyspiked in Solano County.Related to rising dropoutrates, gang violence andother socioeconomicissues, juvenile feloniesare rising dramatically.

FELONY OFFENSES

Felony Offenses Percent Change over Prior YearSolano County and California

Data Source: California Department JusticeAnalysis: CEINote: Felony offenses include violent, property, and drug offenses

+70%Juvenile violent offenses

increased by 70% between

2005 and 2006.

CITY REVENUES

Growth in City Revenues since 1998Solano County

What does this mean?While city revenues fromproperty taxes have risenin the County, revenuesfrom sales and othertaxes are more susceptibleto business cycles.

Data Source: California State Controller’s OfficeAnalysis: CEI

THE CONNECTION BETWEENOUR ECONOMY & COMMUNITY


Comparison of Educational Attainment ofPopulation to Required Level of Education for

OccupationsSolano County 2006

Source: U.S. Census Bureau, 2006 American Community Survey;O*NET; Bureau of Labor Statistics, OccupationalEmployment StatisticsAnalysis: CEI* Some College includes: Less than 1 year of college; Some college, 1 or more years, no degree; Associates degree;Professional certification

What does this mean?Solano County has theopportunity to createhigher-skilled jobs for itsresidents, especially withinits cluster industries.


Educational AttainmentSolano County, California, and United States, 2006 Some College

EducationIn 2006, residents withsome college or moremade up a larger percentageof the population inSolano County (59%) thanin California (57%) or theU.S. (54%).

Source: U.S. Census Bureau,American Community SurveyAnalysis: CEI* Some College includes: Less than 1 year of college; Some college, 1 or more years, no degree; Associates degree;Professional certification

OCCUPATIONAL DISTRIBUTION

What does this mean?Solano County needsto expand its middle andhigh-wage job opportunitiesfor its residentsby growing its clusterindustries and continuingto diversify its economy.

Comparison of Occupational Distribution by Wage LevelSolano County, San Francisco and East Bay Area, and California

2007

Data Source: Occupational Employment StatisticsAnalysis: CEISan Francisco and East Bay Area includes Alameda, Contra Costa, Marin, San Francisco, and San Mateo Counties.

RATIO OF JOBS TO HOUSING UNITS

Ratio of Jobs to Housing UnitsSolano County and the Rest of the Bay Area

Data Source:California Employment Development Department; U.S. Census Bureau,American Community SurveyAnalysis: CEI* Rest of Bay Area includes Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, and Sonoma Counties.

What does this mean?Creating higher paying jobsin Solano County willreduce the need for residentsto commute to jobsoutside the County andthereby reduce commutingstress, allow more familytime, and slow the growthin carbon emissions.

COMMUTE FLOWS

Solano County Residents' Commute FlowsShare of Population that Works Outside of the County • 2006

Source: U.S. Census Bureau, 2006 American Community SurveyAnalysis: CEINote : 74,986 Solano County Residents commute outside of the county for work.

75,000Almost 75,000 Solano

County residentscommuted outside of the

county for work.

COMMUTE FLOWS

Solano County Residents' Commute FlowsEducational Attainment of Population that

Works Outside of the County • 2006

Educated CommutersTwenty-seven percent ofresidents who commutedout of Solano Countyfor work had at least abachelor’s degree.

Source: U.S. Census Bureau, 2006 American Community SurveyAnalysis: CEI* Some College includes: Less than 1 year of college; Some college, 1 or more years, no degree; Associates degree;Professional certification

COMMUTE FLOWS

Solano County Employees' Commute FlowsShare of Workers that Live Outside of the County • 2006

Source: U.S. Census Bureau, 2006 American Community SurveyAnalysis: CEINote: 30,676 Solano County Employees commute into the county for work.

30,000In 2006, over 30,000people commuted to

Solano County for work.

COMMUTE FLOWS

Solano County Employees' Commute FlowsEducational Attainment of Workers that Live Outside of

the County • 2006

Source: U.S. Census Bureau, 2006 American Community SurveyAnalysis: CEI* Some College includes: Less than 1 year of college; Some college, 1 or more years, no degree; Associates degree;Professional certification

1,400More than 1,400

peoplewith a graduate or

professional degreecommuted to Solano

County for work.

Download - Solano Index Presentation @ Solano Economic Summit 4

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