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?

ECONOMIC DEVELOPMENT

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

NEVADA RANKS #1 IN JOB 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%

Source: U.S. Bureau of Labor Statistics (Nov 2018 vs Nov 2017)

Employment Growth

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

EMPLOYMENT IS AT AN ALL TIME HIGH AND GROWING

Las Vegas MSA employment levels have exceeded the pre-recession peak for 45 consecutive months

Source: U.S. Bureau of Labor Statistics

936,800 1,029,100

600,000 650,000 700,000 750,000 800,000 850,000 900,000 950,000 1,000,000 1,050,000 1,100,000

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

+39,800

Education & Health Services

+27,200

Professional & Bus. Services

+24,100

Trade, Trans. & Utilities

Top Sector Job Growth

Pre-Recession Peak to Present

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% 4 Arizona +1.74% 5 Florida +1.54% 6 Washington +1.48% 7 Colorado +1.42% 8 Texas +1.34% 9 South Carolina +1.25% 10 North Carolina +1.10%

#1

Higher Lower

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

THE LOCAL ECONOMY IS DIVERSIFYING

Source: U.S. Bureau of Labor Statistics

(38,000) (2,200) (500) (100) 600 8,000 13,100 20,300 24,100 27,200 39,800 Construction Manufacturing Information Mining and Logging Financial Activities Other Services Government Leisure and Hospitality Trade, Transportation, and Utilities Professional and Business Services Education and Health Services

Las Vegas MSA Sector Employment Growth Pre-Recession Peak to Present

Current employment levels now exceed peak pre-recession levels and are doing so with 38,000 fewer construction jobs

LVGEA HAS SUPPORTED OVER 22,000 JOBS SINCE 2012

Source: LVGEA

1314 1563 3172 3347 3260 5679 4369

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

2018 COMPANY WINS

+4,369 Jobs

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

1

Strategy

50

Board Members 180+ Investors

75

Partner Organizations

8

Council of Chambers

8

Target Industries

$13.2 B

Economic Impact

(since 2012)

LVGEA: NEVADA’S LARGEST

NONPROFIT BUSINESS ASSOCIATION

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

THE ROI OF ECONOMIC DEVELOPMENT IS RISING

$1

Invested in LVGEA

$144

1 year economic impact Creates or adds

DRIVING LOCAL GROWTH: Top 10 Projects

$14B $14B

Source: LVGEA

Tourism Non-Tourism

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

• 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

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

HOW IS OUR ECONOMY GROWING?

ECONOMIC DEVELOPMENT

Prosperity change in the Las Vegas metro area, 2006-2016

PROSPERITY LEVEL IS STILL WEAK

99th overall

Productivity

96th

• 7.9%

Standard of Living

100th

• 20.2%

Avg Annual Wage

94th

• 0.1%

Source: Brookings Metro Monitor

Inclusion change in the Las Vegas metro area, 2006-2016

INCLUSIVITY LEVEL IS STILL LOW

100th overall

Median Wage

99th

• 14.7%

Relative Poverty

97th

+9.6%

Employment Rate

88th

• 4.1%

Source: Brookings Metro Monitor

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

HOUSEHOLD INCOME VS. HOME PRICE CLARK COUNTY

$48,215 $49,546 $51,057 $51,214 $51,552 $54,384 $57,189 $121,800 $146,300 $185,300 $202,300 $220,500 $236,200 $266,800 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000

'11 '12 '13 '14 '15 '16 '17 Median Household Income Existing Single-Family Home Median Sales Price

Source: U.S. Census Bureau and National Association of Realtors

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

THE MIDDLE CLASS IS SHRINKING

49% 50% 51% 52% 53% 54% 55% 56% 57% 58%

Nevada’s Middle Class

2000 2016

Source: Pew Research

57% 52%

DOES THE MIDDLE CLASS STILL MATTER?

ECONOMIC DEVELOPMENT

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

OUR ECONOMY IS BUILT ON CONSUMPTION

United States

68%

Personal Consumption Source:U.S. Bureau of Economic Analysis and Federal Reserve Economic Data

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

OUR ECONOMY IS BUILT ON CONSUMPTION

United States Nevada

75%

Personal Consumption

68%

Personal Consumption

WE NEED THE

MIDDLE CLASS

TO DRIVE ECONOMIC GROWTH

ECONOMIC DEVELOPMENT

Source: U.S. Bureau of Labor Statistics

THIS IS AN ECONOMY

ECONOMIC DEVELOPMENT

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

IF YOU STOPPED 10 PEOPLE ON THE STREET…

Source: Pew Research

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

7 7 OUT T OF F 10 10 WOULD SAY

THEY ARE MIDDLE CLASS

Source: Pew Research

ONE WAY ECONOMISTS CALCULATE CLASS:

ECONOMIC DEVELOPMENT

Source: Pew Research

ARE YOU IN THE MIDDLE CLASS?

ECONOMIC DEVELOPMENT

Source: Pew Research

ARE YOU IN THE MIDDLE CLASS?

ECONOMIC DEVELOPMENT

Source: Pew Research

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

IN 1971, 70% OF AMERICANS WERE MIDDLE CLASS

Source: Pew Research

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

TODAY 50% OF AMERICANS ARE MIDDLE CLASS

Source: Pew Research

HOW CAN WE CREATE MORE MIDDLE CLASS JOBS?

ECONOMIC DEVELOPMENT

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

HIGHEST ECONOMIC MOMENTUM

Source: State Policy Reports (March 2018)

Economic Momentum Index

Higher Lower

RANK STATE INDEX

1 NEVADA 1.82

2 Idaho 1.61 3 Utah 1.33 4 Washington 1.16 5 Arizona 1.08 6 Colorado 0.97 7 Texas 0.71 8 Florida 0.60 9 Oregon 0.50 10 New Hampshire 0.49

#1

GROWING THE MIDDLE CLASS STATE OF ECONOMIC DEVELOPMENT

HIGHEST GROWTH POTENTIAL

Economic Growth Potential

#1

RANK STATE

1 NEVADA

2 North Carolina 3 Texas 4 Alabama 5 Colorado 6 Utah 7 Virginia 8 Mississippi 9 Louisiana 10 New Mexico

Source: (Business Facilities Magazine. 2018)

• Innovative incentives
• Enhanced workforce & job training

programs

• Stable funding for economic development

programs

STRATEGY #1: SUPPORT PRO-JOBS POLICY

• Connect core

economic centers

• Enhance multi-modal transit
• Interstate 11
• Embrace autonomous systems

STRATEGY #2: BUILD GLOBALLY COMPETITIVE TRANSPORATION SYSTEMS

STRATEGY #3: STRENGTHEN WORKFORCE & EDUCATION

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HERE, YOU CAN

GROWING THE MIDDLE CLASS

February 6, 2019

ECONOMIC DEVELOPMENT