Strategic Priorities
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Transcript of Strategic Priorities
Focusing San Francisco'sEconomic Strategy:
From Goals to Strategic Priorities
Ted Egan, Ph.D.ICF International
Outline
■ Overview and Rationale
■ Goals and Objectives of the Economic Strategy
■ Impacts of San Francisco Industry
■ How San Francisco Works: The Structure of our Economy
■ Understanding Viability: The Dynamics of Change
■ Recommended Target Industries, and Strategic Priorities
Targeting and Economic Strategy
■ Economic development plans increasingly work with specific industries for two main reasons:
Industries require specialized economic foundations, e.g. workforce, physical infrastructure, regulatory system, etc.
Industries have different fiscal and labor market impacts, and essentially can put the City on different growth trajectories.
■ Two criteria are important:
Does the industry provide the kind of positive economic impacts that reflect the goals and objectives of the strategy?
Is the industry a viable strategic growth target for San Francisco?
Goals and Objectives: Proposition I
■ The San Francisco Economic Strategy was authorized by Proposition I in 2004, which voters approved
■ Proposition I focuses on:
Job creation
Opportunities for vulnerable populations
Tax revenues
Small business
Goals and Objectives:Community Survey
■ In Spring/Summer 2006 an online survey asked respondents their values for the strategy.
■ The top 5 goals and objectives are listed below (points out of 5)
Goal Score out of 5
Retaining existing businesses in the City 4.33
Creating more jobs and new employment opportunities
4.31
Investing in infrastructure to enhance residents' and workers' quality of life.
4.22
Ensuring stability in the City’s economy 4.18
Encouraging new industries to grow in the City
4.18
Goals and Objectives:Focus Groups and Public Meeting
Economic Strategy GoalLarge
BusinessSmall
BusinessChamber
Businesses NEDOsCommunity
GroupsIndustrial
BusinessesWorkforce
DevelopmentReal
EstateCreate jobs and expand economic opportunities for all residentsFocus on creating economic opportunities for low income residentsImprove neighborhood quality of life issues
Sustain and strengthen the City's economic base by retaining locally owned businessesStrengthen the City's tax base and expand revenues for servicesPromote economic growth and innovation by attracting and growing new industries Encourage entrepreneurship and support independent small business developmentPreserve industrial jobs and businesses
Industries Advance the Goals and Objectives Differently
Goal Industry Characteristics
Create job opportunities by building on our strengths to promote greater overall economic growth.
Identify San Francisco industries with high local multiplier effect.
Ensure greater inclusion and equity in job opportunities, with an aim to reducing inequality.
Identify San Francisco industries that create quality job opportunities for residents without a university degree.
Ensure a sound fiscal footing for the City by encouraging industries with a positive fiscal impact.
Identify San Francisco industries that generate more tax revenue than they consume in services.
Combined Impacts: Construction, Manufacturing, Wholesaling, Transportation
Industry Total Growth Impact
Middle Class Job Impact
Fiscal Impac
t
Combined (Out of 9)
Construction of Buildings MEDIUM HIGH MEDIUM
7
Heavy and Civil Engineering Construction MEDIUM HIGH MEDIUM
7
Specialty Trade Contractors MEDIUM HIGH MEDIUM
7
Food Manufacturing HIGH MEDIUM LOW 6
Apparel Manufacturing MEDIUM LOW LOW 4
Printing and Related Support Activities LOW HIGH MEDIUM
6
Computer and Electronic Product Manufacturing HIGH HIGH MEDIUM
8
Furniture and Related Product Manufacturing LOW MEDIUM MEDIUM
5
Merchant Wholesalers, Durable Goods HIGH HIGH MEDIUM
8
Merchant Wholesalers, Nondurable Goods HIGH MEDIUM LOW 6
Wholesale Electronic Markets and Agents and Brokers
HIGH HIGH LOW 7
Truck Transportation MEDIUM HIGH LOW 6
Transit and Ground Passenger Transportation LOW MEDIUM LOW 4
Support Activities for Transportation MEDIUM HIGH LOW 6
Couriers and Messengers LOW LOW LOW 3
Warehousing and Storage LOW HIGH LOW 5
Combined Impacts:Retail Trade
Industry Total Growth Impact
Middle Class Job Impact
Fiscal Impac
t
Combined
Motor Vehicle and Parts Dealers MEDIUM HIGH HIGH 8
Furniture and Home Furnishings Stores LOW LOW HIGH 5
Electronics and Appliance Stores MEDIUM MEDIUM HIGH 7
Building Material and Garden Equipment and Supplies Dealers
MEDIUM LOW HIGH 6
Food and Beverage Stores LOW LOW MEDIUM
4
Health and Personal Care Stores LOW LOW HIGH 5
Gasoline Stations MEDIUM LOW HIGH 6
Clothing and Clothing Accessories Stores LOW LOW HIGH 5
Sporting Goods, Hobby, Book, and Music Stores LOW LOW MEDIUM
4
General Merchandise Stores LOW LOW HIGH 5
Miscellaneous Store Retailers LOW LOW HIGH 5
Nonstore Retailers LOW MEDIUM MEDIUM
5
Combined Impacts: Information
Industry Total Growth Impact
Middle Class Job Impact
Fiscal Impac
t
Combined
Publishing Industries (except Internet) HIGH MEDIUM MEDIUM
7
Motion Picture and Sound Recording Industries HIGH LOW LOW 5
Broadcasting (except Internet) HIGH HIGH MEDIUM
8
Internet Publishing and Broadcasting HIGH MEDIUM HIGH 8
Telecommunications HIGH HIGH MEDIUM
8
Internet Service Providers, Web Search Portals, and Data Processing Service
HIGH MEDIUM HIGH 8
Credit Intermediation and Related Activities HIGH MEDIUM HIGH 8
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
HIGH MEDIUM HIGH 8
Insurance Carriers and Related Activities HIGH HIGH HIGH 9
Funds, Trusts, and Other Financial Vehicles HIGH MEDIUM HIGH 8
Real Estate HIGH HIGH MEDIUM
8
Rental and Leasing Services HIGH MEDIUM HIGH 8
Combined Impacts: Financial, Professional, Business, Environmental
Industry Total Growth Impact
Middle Class Job Impact
Fiscal Impac
t
Combined
Credit Intermediation and Related Activities HIGH MEDIUM HIGH 8
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
HIGH MEDIUM HIGH 8
Insurance Carriers and Related Activities HIGH HIGH HIGH 9
Funds, Trusts, and Other Financial Vehicles HIGH MEDIUM HIGH 8
Real Estate HIGH HIGH MEDIUM
8
Rental and Leasing Services HIGH MEDIUM HIGH 8
Professional, Scientific, and Technical Services MEDIUM MEDIUM HIGH 7
Management of Companies and Enterprises MEDIUM MEDIUM HIGH 7
Administrative and Support Services MEDIUM MEDIUM MEDIUM
6
Waste Management and Remediation Services HIGH HIGH LOW 7
Education, Health, Hospitality, and Other Services
Industry Total Growth Impact
Middle Class Job Impact
Fiscal Impac
t
Combined
Educational Services LOW LOW LOW 3
Ambulatory Health Care Services MEDIUM MEDIUM LOW 5
Hospitals HIGH HIGH LOW 7
Nursing and Residential Care Facilities LOW MEDIUM LOW 4
Social Assistance LOW LOW LOW 3
Performing Arts, Spectator Sports, and Related Industries
MEDIUM MEDIUM MEDIUM
6
Museums, Historical Sites, and Similar Institutions
HIGH LOW LOW 5
Amusement, Gambling, and Recreation Industries
LOW LOW LOW 3
Accommodation MEDIUM LOW HIGH 6
Food Services and Drinking Places LOW LOW MEDIUM
4
Repair and Maintenance MEDIUM HIGH MEDIUM
7
Personal and Laundry Services LOW LOW MEDIUM
4
Religious, Grantmaking, Civic, Professional, and Similar Organizations
LOW MEDIUM LOW 4
Summarizing the Industry Impacts
■ Successfully developing the high-impact industries means taking the San Francisco economy where we want it to go:
More job opportunities
Better job opportunities for lower-income residents
More revenue to fund services
■ But we cannot simply focus on high impact industries without considering how easy it is to encourage them to develop, grow, and remain in San Francisco.
How San Francisco Works:The Structure of Our Economy
■ The economy of all cities fundamentally depends on its trading relationships with the outside world—and this is especially true in today’s globalized economy.
■ The first step to determining which industries can grow in San Francisco is to examine our trading patterns, and understand our economic role in the world.
■ By making our export activities more competitive, they can drive our economic growth. Local-serving industries rely on export growth and increasingly face new kinds of competition.
What We Sell: Major Net Export Industries in San Francisco
Industry Exports Less Imports, 2001
($ billion)
Securities, commodity contracts, investments $7.32
Monetary authorities and depository credit in $5.39
Management of companies and enterprises $3.10
Real estate $2.86
Legal services $2.56
Advertising and related services $1.64
Architectural and engineering services $1.49
Information services $1.41
Management consulting services $1.20
Food services and drinking places $1.11
Machinery and equipment rental and leasing $1.11
Insurance agencies, brokerages, and related $1.02
Telecommunications $0.97
Hotels and motels, including casino hotels $0.63
Lessors of nonfinancial intangible assets $0.62
What We Buy: Major Net Import Industries in San Francisco
Industry Exports Less Imports, 2001
($ billion)
Oil and gas extraction -$1.21
Automobile and light truck manufacturing -$1.09
Petroleum refineries -$0.58
Pharmaceutical and medicine manufacturing -$0.46
Pipeline transportation -$0.35
Truck transportation -$0.30
Motor vehicle parts manufacturing -$0.28
Paper and paperboard mills -$0.19
Toilet preparation manufacturing -$0.11
San Francisco’s Trade Pattern and Economic Niche
Manufactured Goods
Energy
Commodities
TourismServices
Financial & Professional Services
Capital Inflows
Traditional& New Media
HighTechnology
San Francisco’sEconomy
Rest ofthe World
Rest ofthe World
Attractions
San Francisco’s Economic Structure:A Knowledge and Experience Economy
DigitalMedia
FinancialServices
InformationTechnology
Biotech
ProfessionalServices
Publishing,Film, TV
KnowledgeGeneration
Dining &Entertainment
Neighborhoods & Places
Arts &Culture
Hospitality
SpecialtyRetail Experience
Generation
Fashion
People InfrastructureTeaching, Healing, Helping, Protecting People
EducationHealthSocial ServicesBusiness ServicesPersonal Services
Physical Infrastructure:Making, Holding, Moving, Maintaining Things
Construction/Real EstateTransportation, Distribution, & TradeManufacturing SuppliersMaintenance and Repair
EnvironmentalProducts &
Technologies
Export
Design
Implications of Our Economic Structure
■ San Francisco’s economy is really based on two core activities:
Generating new knowledge (and innovative products, services, and information from new knowledge)
Providing high-quality experiences to visitors
■ These export activities drive our economic growth: the better we do them, the greater the growth potential throughout the economy.
■ Our human and physical support system help determine how competitive we are in our export activities.
Job Performance of the Four Major Sectors
■ On the following slides, we will examine the recent job performance of industries within San Francisco’s two major export sectors: Knowledge and Experience.
■ We will also examine the kinds of jobs they require, and some conclusions related to strategic directions for them.
■ In addition, industries within the two local-serving sectors—physical and human infrastructure—will be profiled to see how well their growth is matching the growth in the export sectors.
Trends in the Economic Structure: Interpreting Growth-Share Matrices
Threatened Leaders
Established Leaders
Emerging Strengths
Recent Growth Rate
Co
nce
ntr
atio
n i
n S
an F
ran
cisc
o
U.S.Average
San Francisco Average
Trends in the Knowledge Sector
Growth Share MatrixSan Francisco's Ideas Sector, 2004
Funds, trusts, otherfinancial vehicles ISPs, search portals, and data
processing
Nonstore retailers
Broadcasting,except Internet
Publishing industries, except Internet
Credit intermediation andrelated activities
Insurance carriersand related
activities
Management of companies and enterprises
Securities, commodity contracts, investments
Professional andtechnical services
Internet publishing and broadcasting
(30.8%)
Motion picture andsound recording industries
-
1.00
2.00
3.00
4.00
5.00
6.00
-10.0% -5.0% 0.0% 5.0% 10.0% 15.0%
Average Annual Employment Growth Rate, 1994-2004
Lo
cati
on
Qu
oti
ent
(U.S
. A
vera
ge
= 1
.0)
San Francisco has broad areas of strength across the entire knowledge economy, from financial and professional services, to digital and traditional media, to software and services. The orange-colored industries indicate those with a high impact, from the earlier impact analysis.
A clear distinction exists, however, between those strengths that are expanding (upper-right), and those which are declining (upper left). These differences will be explored in the next few slides.
Breakdown of Jobs by Education and Annual Salary In Growing Knowledge Industries
Employment by Educational Attainment and Average Annual Salary: Industries in the Knowledge Sector that Have Grown in San Francisco, 1994-2004
High School or Less, >$30k
8%
Some College, >$40k17%
Bachelors+, < $70k26%
Bachelors+, >$70k35%
Some College, <$40k10%
High School or Less, < $30k4%
In the growing (upper right) industries, which mainly includes Internet, media, professional, and high-end financial services, about 60% of the jobs go to workers with at least a four-year degree.
About a quarter of workers have some college or a two-year degree, and most of those jobs pay more than these workers typically make in San Francisco.
Only about 12% of the jobs go to workers with no college, although again most of those jobs pay better than average.
Breakdown of Jobs by Education and Annual Salary In Declining Knowledge Industries
Employment by Educational Attainment and Average Annual Salary: Industries in the Knowledge Sector that Have Declined in San Francisco, 1994-2004
High School or Less, >$30k10%
Some College, >$40k18%
Bachelors+, < $70k29%
Bachelors+, >$70k20%
High School or Less, < $30k7%
Some College, <$40k16%
The knowledge sector jobs that have been declining in San Francisco (corporate headquarters, mid-level financial services, and film) have a very different skills profile.
Over half of the jobs in these industries go to workers that do not have a four-year degree. Again most of these jobs offer better-than-average salaries to workers with a high school or community college education.
Our Declining Knowledge Sector is Growing Elsewhere in the Bay Area
Is the decline of the middle class knowledge sector job an inevitable part of San Francisco’s rising cost of living?
The argument for that would be stronger if we did not observe the same industries growing elsewhere in the Bay Area—even in Santa Clara county, which has higher housing costs than San Francisco.
These areas face very similar housing and labor costs as San Francisco, but have been able to expand their employment in these industries.
Total Employment in Declining Knowledge Sector Industries*:San Francisco and Other Major Bay Area Counties, 1994 and 2004
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
San Francisco Alameda Santa Clara Contra Costa San Mateo
1994
2004
* Corporate headquarters, Insurance, Credit intermediation, and Motion Picture Production
Knowledge Industries Grow from Local Creativity & Innovation Like a Funnel
Dominant Companies
Sustainable Companies
Number of Actual Start-Ups
Creative Talent – Number of Potential Entrepreneurs
Institutions, Creativity, InnovationInstitutions, Creativity, Innovation
Job Impacts Are Different For Companies at Different Stages
Dominant Companies
Sustainable Companies
Number of Actual Start-Ups
Creative Talent – Number of Potential Entrepreneurs Highly skilled, core knowledge functions only, personal networks.Upper Income Jobs.
Multiple skill levels, full set of corporate functions, formal labor market hiring.Upper, Middle, and Lower Income Jobs.
Company Stage of Development Job Characteristics
San Francisco Has a Very Wide Funnel,But Has a Bottleneck at the Bottom
Dominant SFCompanies
Sustainable SF Companies
Number of Actual SF Start-Ups
San Francisco Creative Talent – Number of Potential Entrepreneurs
San Francisco Institutions, Creativity, Innovation
San Francisco Institutions, Creativity, Innovation
Relocations / Expansions Outside SF
Buy-Outs/Mergers
Venture Capital Trends:Emerging Industries in the Bay Area
Leading Emerging Industries:Venture Capital Invested in the Bay Area and the Rest of the U.S, Q2 2006
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Softw
are
Biotec
hnolo
gy/N
anot
ech
Teleco
m/W
ireles
s Ser
vices
Semico
nduc
tors
/Wire
less C
hips
Med
ical D
evice
s
Indu
strial
/Ene
rgy/E
nviro
nmen
t
Other US
Bay Area
Given our current role as a center for small, early-stage knowledge-based companies, understanding the growth trends of emerging industries is important.
The six industries shown on the left lead the country in receiving venture capital investment, and the Bay Area leads all other regions in every one of these industries.
Regional Factors Favoring San Francisco
■ An earlier SFES report highlighted two trends that suggest San Francisco could further broaden its Knowledge sector:
Northward movement of Silicon Valley and emergence of San Francisco as a regional high technology node.
Likely increasing importance of transit to commuting in the region’s future, favoring high-density, transit-rich employment centers like downtown San Francisco.
■ While in recent decades San Francisco may not have been competitive for many emerging industries or middle-income knowledge jobs, this could change.
Key Challenges and Industries for the Knowledge Sector
■ Expanding our base of early-stage emerging industry firms:
Biotechnology / nanotechnology
Software / digital media
Clean / alternative energy
Wireless communications
■ Encouraging the retention of larger knowledge sector firms we have been losing, especially:
Corporate headquarters
Insurance and mid-level financial services
Trends in the Experience Sector
Growth Share MatrixSan Francisco's Experience Sector, 2004
Health and personal care stores
Sporting goods, hobby, book
and music stores
Food and beverage stores
Clothing and clothingaccessories stores
Furniture andhome furnishings stores
Amusements,gambling,
and recreation
Museums,historical sites,zoos, and parks
Food services and drinking places
Misc.Retail
Electronics/Appliance Stores
PerformingArts
Accomodation
-
1.00
2.00
3.00
4.00
5.00
6.00
-2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%
Average Annual Employment Growth Rate, 1994-2004
Lo
cati
on
Qu
oti
ent
(U.S
. A
vera
ge
= 1
.0)
The broad Experience sector includes companies in the hospitality, specialty retail, arts, culture, and recreation industries.
As a sector, its growth has been one of the strongest in the City over the past decade.
Many of these industries are not high-impact, although the accommodation industry is a major source of revenue for the City.
Experience Sector: Breakdown of Jobs by Education and Annual Salary
Employment by Educational Attainment and Average Annual Salary: Experience Sector
High School or Less, >$30k
5%
Some College, <$40k26%
Some College, >$40k5%
Bachelors+, < $70k19%
Bachelors+, >$70k3% High School or Less, <
$30k42%
When we look within these educational categories to examine wages, we see that most of the jobs pay below average for each level of educational attainment.
42% of the Experience sector workforce has a high school education and work in jobs paying less than $30k a year. Another 26% have some college, and work in jobs (possibly the same jobs) paying less than $40k a year.
Part of the challenge in this sector, therefore, is not merely to ensure competitiveness, but higher quality experiences dependent on higher skilled, better paid workers.
Experience Sector: Key Strategy Issues
■ Tourism is a major source of economic growth and tax revenue for San Francisco, and the experience of the city is the single biggest driver we have.
■ But we need to continue to grow the experience sector in ways that deepen and enhance the experience, and create new forms of value for visitors.
■ In many cases this depends on the quality of the workforce. We can build a higher quality experience economy as we build a higher quality workforce.
Key Industries and Challenges for the Experience Sector
■ Upgrade the training, skills, and wages of key experience-providing workers in the visitor industries:
Retail
Food Service and Preparation
Hospitality
Personal Care and Service
Arts, Design, Entertainment Workers
Trends in Human Infrastructure
Average Annual Percentage Change in Employment,Human Infrastructure Segments, 1994-2004
-1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%
Ambulatory health care services
Personal and laundry services
Membership associations andorganizations
Nursing and residential care facilities
Social assistance
Educational services
Hospitals
Industries in the human infrastructure sector, like all local-serving industries, will generally track the growth of the overall economy, unless there are changes in local demand patterns or competition from elsewhere in the region.
In the human infrastructure sector, health care (hospitals) and education have been healthy sources of job growth. Most of the industries in this sector have strong middle-income job impact, and a low overall impact only because many are exempt from property tax.
Human Infrastructure: Breakdown of Jobs by Education and Annual Salary
Employment by Educational Attainment and Average Annual Salary: Human Infrastructure Sector
High School or Less, >$30k
9%
Some College, <$40k18%
Some College, >$40k11%
Bachelors+, < $70k35%
Bachelors+, >$70k13%
High School or Less, < $30k14%
The sector offers a decent array of middle-income jobs, especially for workers with some college. Most of the jobs held by workers with a high school education or less pay less than $30k a year, the City-wide average for workers at that level.
Human Infrastructure Sector:Key Strategy Issues
■ Growth in this sector will largely be determined by the strength of the City’s export sector, and overall level of job and income growth.
■ The sector is crucial to the competitiveness of the export sectors in many ways, however, and many of the employers are in the public or non-profit sectors.
■ There is therefore a governance challenge—more than a strategy challenge—to ensure an optimal alignment between employers in this sector and the requirements of the export industries on which the entire city depends for growth.
Job Trends in Physical Infrastructure
Average Annual Percentage Change in Employment,Physical Infrastructure Segments, 1994-2004
-8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0%
Specialty trade contractors
Support activities for transportation
Food manufacturing
Rental and leasing services
Couriers and messengers
Transit and ground passenger transportation
Printing and related support activities
Electronic markets and agents and brokers
Merchant wholesalers, durable goods
Telecommunications
Merchant wholesalers, nondurable goods
Gasoline stations
General merchandise stores
Motor vehicle and parts dealers
Repair and maintenance
Administrative and support services
Real estate
Building material and garden supply stores
Construction of buildings
Truck transportation
Warehousing and storage
Waste management and remediation services
Heavy and civil engineering construction
Many jobs in the physical infrastructure sector are high impact, both because of their strong multiplier effects, and the percentage of middle-income jobs that each offer.
Unfortunately, most of these industries have been losing jobs in San Francisco, with Construction and Truck Transportation being the main bright spots.
Many manufacturing industries on this chart—and other export-oriented manufacturing industries not shown—have declined dramatically.
Physical Infrastructure: Breakdown of Jobs by Education and Annual Salary
Employment by Educational Attainment and Average Annual Salary: Physical Infrastructure Sector
High School or Less, >$30k29%
Some College, >$40k19%
Bachelors+, < $70k13%
Bachelors+, >$70k1%
High School or Less, < $30k22%
Some College, <$40k16%
Most of the jobs held by workers in the physical infrastructure sector pay an above-average wage for workers at that level.
30% of the workforce has a high school education and earns over $30k a year, while another 19% of the workforce has some college and earns over $40k a year.
Knowledge Sector & Physical Infrastructure Growth, 1995-2000
During the dot com boom, the local-serving industrial sector grew alongside of the advanced services sector that led the city’s economy.
Export-oriented industrial jobs—essentially, the manufacturing sector– declined significantly during this period
Although there was a significant change in the city’s population during that time, and many employers were displaced, in aggregate the growth of the Knowledge Sector created more job opportunities in the local-serving PDR sector.
Average Annual Employment Growth by Sector in San Francisco, 1995/96-1999/2000:Advanced Services, Local-Serving Industrial, and Tradeable Industrial (manufacturing)
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
1995-1996 1996-1997 1997-1998 1998-1999 1999-2000
Total Knowledge Sector
Local-Serving Industrial
Tradeable Industrial (manufacturing)
Knowledge Sector & Physical Infrastructure Growth, 2000-2004
In 2001, the City began to lose knowledge sector jobs in the dot com bust.
Immediately, it also began to lose local-serving PDR jobs.
What this means it that the growth of the advanced services sector has not cost the city PDR jobs. Rather the growth of the City’s knowledge and experience economy sustains local industrial suppliers.
During the recession, the more vulnerable, and disconnected, tradable PDR sector declined faster than other, stronger sectors of the economy. And faster than it did during the dot com boom.
Average Annual Employment Growth by Sector in San Francisco, 2000/01-2003/2004:Knowledge Secgtor, Local-Serving Industrial, and Tradeable Industrial (manufacturing)
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
2000-2001 2001-2002 2002-2003 2003-2004
Total Knowledge Sector
Local-Serving Industrial
Tradeable Industrial (manufacturing)
Physical Infrastructure Sector: Key Strategy Issues
■ Employment in the physical infrastructure industries is most viable when it is closely linked to growth in the export activities—such as construction, and most at risk when it depends on outside markets—such as food manufacturing.
■ Strategies for the sector should revolve around strengthening those linkages to local markets by promoting collaboration between industrial producers and local end-users.
Conclusions: Four Key Strategies for San Francisco’s Economic Future
■ Strengthen the linkages between the local-serving industrial sector and growing elements of the export base.
■ Continue to invest in, and diversify, the engines of innovation in the knowledge sector.
■ Retain growing knowledge sector companies within San Francisco to retain mid-level occupations.
■ Raise the value in the experience sector to increase revenue and expand the range and wages of jobs.
What Happens When We Succeed?
■ If San Francisco can do those four things successfully, it will create an economic dynamic that will:
Maintain and enhance the viability and diversity of San Francisco’s export base and ensure stable economic growth
Maximize the retention and creation of middle-income occupations in San Francisco, reducing income inequality.
Support the development of industries with a positive fiscal impact on San Francisco.