GROWING THE MIDDLE CLASS T H E S TAT E O F ECONOMIC DEVELOPMENT - PowerPoint PPT Presentation

GROWING THE MIDDLE CLASS T H E S TAT E O F ECONOMIC DEVELOPMENT February 6, 2019

IS OUR ECONOMY GROWING? T H E S TAT E O F ECONOMIC DEVELOPMENT

NEVADA RANKS #1 IN JOB GROWTH Source: U.S. Bureau of Labor Statistics (Nov 2018 vs Nov 2017) Employment Growth RANK STATE ANNUAL GROWTH 1 NEVADA +3.9% 2 Arizona +3.6% 3 Wyoming +3.4% 4 Washington +2.9% 5 Texas +2.9% 6 Utah +2.9% 7 Florida +2.8% 8 Colorado +2.5% 9 Oregon +2.4% 10 South Dakota +2.3% GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

EMPLOYMENT IS AT AN ALL TIME HIGH AND GROWING Source: U.S. Bureau of Labor Statistics Las Vegas MSA employment levels have Top Sector Job Growth exceeded the pre-recession peak for Pre-Recession Peak to Present 45 consecutive months 1,100,000 +39,800 1,029,100 1,050,000 Education & Health Services 1,000,000 936,800 950,000 900,000 +27,200 850,000 Professional & Bus. Services 800,000 750,000 +24,100 700,000 650,000 Trade, Trans. & Utilities 600,000 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

FASTEST GROWING STATE IN THE NATION Source: U.S. Bureau of Labor Statistics Population Growth RANK STATE ANNUAL GROWTH 1 NEVADA +2.09% 2 Idaho +2.05% 3 Utah +1.87% #1 4 Arizona +1.74% 5 Florida +1.54% 6 Washington +1.48% 7 Colorado +1.42% 8 Texas +1.34% Higher 9 South Carolina +1.25% 10 North Carolina +1.10% Lower GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

THE LOCAL ECONOMY IS DIVERSIFYING Source: U.S. Bureau of Labor Statistics Las Vegas MSA Sector Employment Growth Pre-Recession Peak to Present Education and Health Services 39,800 Professional and Business Services 27,200 Trade, Transportation, and Utilities 24,100 Leisure and Hospitality 20,300 Government 13,100 Current employment Other Services 8,000 levels now exceed peak Financial Activities 600 pre-recession levels and Mining and Logging (100) are doing so with Information (500) 38,000 fewer Manufacturing (2,200) construction jobs Construction (38,000) GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

6000 5679 LVGEA HAS SUPPORTED 5000 4369 OVER 22,000 4000 3172 3347 3260 JOBS SINCE 3000 2012 2000 1563 1314 1000 0 12 13 14 15 16 17 18 Source: LVGEA

2018 COMPANY WINS +4,369 Jobs GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

LVGEA: NEVADA’S LARGEST NONPROFIT BUSINESS ASSOCIATION 1 Board Members 180+ 50 $13.2 B Strategy Investors 8 8 Economic Impact 75 (since 2012) Council of Target Partner Chambers Industries Organizations GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

THE ROI OF ECONOMIC DEVELOPMENT IS RISING $1 $144 Invested in LVGEA Creates or adds 1 year economic impact GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

DRIVING LOCAL GROWTH: Top 10 Projects $14B $14B Tourism Source: LVGEA Non-Tourism

10. UNLV MEDICAL SCHOOL $230M GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

9. PALMS RENOVATION $375M GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

8. GOOGLE $600M GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

7. EXTREME SPORTS PARK (THE EDGE) $800M GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

6. PROJECT NEON $1B GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

5. UNION VILLAGE $1.2B Note: Henderson Hospital completed construction in October 2016 . GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

4. CONVENTION CENTER EXPANSION $1.4B GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

3. LAS VEGAS STADIUM $1.8B GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

2. THE DREW $3B GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

1. RESORTS WORLD LAS VEGAS $4B GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

HOW IS OUR ECONOMY GROWING? T H E S TAT E O F ECONOMIC DEVELOPMENT

PROSPERITY 99 th overall LEVEL IS STILL WEAK Productivity Standard of Avg Annual Prosperity change in the Las Vegas Living Wage metro area, 2006-2016 100 th 94 th 96 th -20.2% -0.1% -7.9% Source: Brookings Metro Monitor

INCLUSIVITY 100 th overall LEVEL IS STILL LOW Median Relative Employment Rate Wage Poverty Inclusion change in the Las Vegas metro area, 2006-2016 88 th 99 th 97 th -4.1% -14.7% +9.6% Source: Brookings Metro Monitor

HOUSEHOLD INCOME VS. HOME PRICE CLARK COUNTY Source: U.S. Census Bureau and National Association of Realtors Median Household Income Existing Single-Family Home Median Sales Price $300,000 $266,800 $236,200 $250,000 $220,500 $202,300 $185,300 $200,000 $146,300 $150,000 $121,800 $100,000 $57,189 $54,384 $51,057 $51,214 $51,552 $49,546 $48,215 $50,000 $0 '11 '12 '13 '14 '15 '16 '17 GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

THE MIDDLE CLASS IS SHRINKING Source: Pew Research Nevada’s Middle Class 2000 57% 2016 52% 49% 50% 51% 52% 53% 54% 55% 56% 57% 58% GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

DOES THE MIDDLE CLASS STILL MATTER? T H E S TAT E O F ECONOMIC DEVELOPMENT

OUR ECONOMY IS BUILT ON CONSUMPTION Source:U.S. Bureau of Economic Analysis and Federal Reserve Economic Data United States 68% Personal Consumption GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

OUR ECONOMY IS BUILT ON CONSUMPTION United States Nevada 68% 75% Personal Personal Consumption Consumption GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

WE NEED THE Source: U.S. Bureau of Labor Statistics MIDDLE CLASS TO DRIVE ECONOMIC GROWTH T H E S TAT E O F ECONOMIC DEVELOPMENT

THIS IS AN ECONOMY T H E S TAT E O F ECONOMIC DEVELOPMENT

Source: Pew Research IF YOU STOPPED 10 PEOPLE ON THE STREET… GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

10 WOULD SAY 7 7 OUT T OF F 10 THEY ARE MIDDLE CLASS Source: Pew Research GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

Source: Pew Research ONE WAY ECONOMISTS CALCULATE CLASS: T H E S TAT E O F ECONOMIC DEVELOPMENT

Source: Pew Research ARE YOU IN THE MIDDLE CLASS? T H E S TAT E O F ECONOMIC DEVELOPMENT

Source: Pew Research ARE YOU IN THE MIDDLE CLASS? T H E S TAT E O F ECONOMIC DEVELOPMENT

Source: Pew Research IN 1971, 70% OF AMERICANS WERE MIDDLE CLASS GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

Source: Pew Research TODAY 50% OF AMERICANS ARE MIDDLE CLASS GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

HOW CAN WE CREATE MORE MIDDLE CLASS JOBS? T H E S TAT E O F ECONOMIC DEVELOPMENT

HIGHEST ECONOMIC MOMENTUM Source: State Policy Reports (March 2018) Economic Momentum Index RANK STATE INDEX 1 NEVADA 1.82 2 Idaho 1.61 3 Utah 1.33 4 Washington 1.16 #1 5 Arizona 1.08 6 Colorado 0.97 7 Texas 0.71 8 Florida 0.60 Higher 9 Oregon 0.50 10 New Hampshire 0.49 Lower GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

HIGHEST GROWTH POTENTIAL Source: (Business Facilities Magazine. 2018) Economic Growth Potential RANK STATE 1 NEVADA 2 North Carolina 3 Texas 4 Alabama #1 5 Colorado 6 Utah 7 Virginia 8 Mississippi 9 Louisiana 10 New Mexico GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

STRATEGY #1: SUPPORT PRO-JOBS POLICY - Innovative incentives - Enhanced workforce & job training programs - Stable funding for economic development programs

STRATEGY #2: BUILD GLOBALLY COMPETITIVE TRANSPORATION SYSTEMS - Connect core economic centers - Enhance multi-modal transit - Interstate 11 - Embrace autonomous systems

STRATEGY #3: STRENGTHEN WORKFORCE & EDUCATION

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GROWING THE MIDDLE CLASS February 6, 2019 T H E S TAT E O F ECONOMIC DEVELOPMENT