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CALIFORNIA BUSINESSCALIFORNIA BUSINESS
Connecting the Docs Telemedicine is tonic for rural patients
Message in a Bottle Vineyards, wineries continue to thrive
Solar FlaresCompanies, residents harness the sun
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On the Cover PHOTO BY JEFF ADKINS
Solar field at Mariani Packing Co., Vacaville
OVERVIEW 11
BUSINESS ALMANAC 12
BUSINESS CLIMATE
It’s Go Time 16Golden State companies view innovation as the key to replenishing gold in corporate treasuries.
Get Ready, Get Set 18
EDUCATION
Taking the Initiatives 19Community colleges take a tenfold approach to training high-growth employment sectors.
Schooling the Creative Class 21
TRANSPORTATION
Ports of Cal 22Harbors on the Pacifi c Coast and inland upgrade their infrastructures and adopt green policies.
Fast Times Ahead 25
HEALTH
Here’s to Your Health 26The California Endowment funds a 10-year program aimed at building healthy communities.
Connecting the Docs 28
On the Move 29
LIVABILITY
California Dreamin’ 30Recreational opportunities remain a draw for tourists – and for employers and their employees.
ENERGY/TECHNOLOGY
Raising the Green Standard 32California’s vigorous green-energy policies set a high bar for the nation.
Solar Flares 35
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RESEARCH & DEVELOPMENT
From Lab to Marketplace 36Many private sector enterprises spring from research on the University of California’s 10 campuses.
AGRIBUSINESS
Message in a Bottle 40Vineyards and wineries continue to thrive in many regions across the state.
Get the Daily Dirt 41
MANUFACTURING
Having It Made in California 42California manufacturers chalk up $250 billion in annual revenue to place No. 1 nationally.
A Capital Idea 43
ENTREPRENEURSHIP/SMALL BUSINESS
Startup Successes 44With its pro-business spirit and policies, California is a leader in supporting young companies.
A Refuge in Turbulent Times 46
RESOURCE GUIDE 47
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C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 7
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CALIFORNIA BUSINESSCALIFORNIA BUSINESS
2009 EDITION, VOLUME 2
C U S TO M M A G A Z I N E M E D I A
MANAGING EDITOR MAURICE FLIESS
COPY EDITOR JOYCE CARUTHERS
ASSOCIATE EDITORS LISA BATTLES,
SUSAN CHAPPELL, JESSY YANCEY
ONLINE CONTENT MANAGER MATT BIGELOW
STAFF WRITERS CAROL COWAN, KEVIN LITWIN
CONTRIBUTING WRITERS RENEE ELDER,
SHARON H. FITZGERALD, PAM GEORGE, JOE MORRIS,
JESSICA MOZO, AMY STUMPFL
DATA MANAGER CHANDRA BRADSHAW
REGIONAL SALES MANAGER CHARLES FITZGIBBON
INTEGRATED MEDIA MANAGERS
TRIP MILLER, DAVID MOSKOVITZ
SALES SUPPORT MANAGER SARA SARTIN
SENIOR PHOTOGRAPHER BRIAN MCCORD
STAFF PHOTOGRAPHERS JEFF ADKINS, TODD BENNETT,
ANTONY BOSHIER, IAN CURCIO, J. KYLE KEENER
PHOTOGRAPHY ASSISTANT ANNE WHITLOW
CREATIVE DIRECTOR KEITH HARRIS
WEB DEVELOPMENT DIRECTOR BRIAN SMITH
ASSOCIATE PRODUCTION DIRECTOR CHRISTINA CARDEN
PRODUCTION PROJECT MANAGERS
MELISSA BRACEWELL, KATIE MIDDENDORF, JILL WYATT
SENIOR GRAPHIC DESIGNERS LAURA GALLAGHER,
KRIS SEXTON, CANDICE SWEET, VIKKI WILLIAMS
LEAD DESIGNER JESSICA MANNER
GRAPHIC DESIGN ERICA HINES, ALISON HUNTER,
JANINE MARYLAND, AMY NELSON, MARCUS SNYDER
WEB DESIGN DIRECTOR FRANCO SCARAMUZZA
WEB PROJECT MANAGERS ANDY HARTLEY, YAMEL RUIZ
WEB DESIGN CARL SCHULZ
WEB PRODUCTION JENNIFER GRAVES
COLOR IMAGING TECHNICIAN TWILA ALLEN
AD TRAFFIC MARCIA MILLAR,
PATRICIA MOISAN, RAVEN PETTY
CHAIRMAN GREG THURMAN
PRESIDENT/PUBLISHER BOB SCHWARTZMAN
EXECUTIVE VICE PRESIDENT RAY LANGEN
SR. V.P./CLIENT DEVELOPMENT JEFF HEEFNER
SR. V.P./SALES CARLA H. THURMAN
SR. V.P./OPERATIONS CASEY E. HESTER
V.P./SALES HERB HARPER
V.P./SALES TODD POTTER
V.P./VISUAL CONTENT MARK FORESTER
V.P./EDITORIAL DIRECTOR TEREE CARUTHERS
MANAGING EDITOR/BUSINESS BILL McMEEKIN
MANAGING EDITOR/COMMUNITY KIM MADLOM
MANAGING EDITOR/CUSTOM KIM NEWSOM
PRODUCTION DIRECTOR NATASHA LORENS
PHOTOGRAPHY DIRECTOR JEFFREY S. OTTO
CONTROLLER CHRIS DUDLEY
ACCOUNTING MORIAH DOMBY, DIANA GUZMAN,
MARIA MCFARLAND, LISA OWENS
RECRUITING/TRAINING DIRECTOR SUZY WALDRIP
DISTRIBUTION DIRECTOR GARY SMITH
INFORMATION TECHNOLOGY DIRECTOR YANCEY TURTURICE
NETWORK ADMINISTRATOR JAMES SCOLLARD
IT SERVICE TECHNICIAN RYAN SWEENEY
HUMAN RESOURCES MANAGER PEGGY BLAKE
SALES SUPPORT RACHAEL GOLDSBERRY
SALES/MARKETING COORDINATOR RACHEL MATHEIS
EXECUTIVE SECRETARY/SALES SUPPORT KRISTY DUNCAN
OFFICE MANAGER SHELLY GRISSOM
RECEPTIONIST LINDA BISHOP
California Business Images is published annually by Journal Communications Inc. and is distributed through the California Association for Local Economic Development, (CALED). For advertising information or to direct questions or comments about the magazine, contact Journal Communications Inc. at (615) 771-0080 or by e-mail at [email protected].
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8 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
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CALIFORNIA
Chico
EurekaRedding
San Bernardino
Bakersfield
Modesto
Stockton
Riverside
Fresno
Oakland
San Diego
Los Angeles
San Jose
San Francisco
Monterey
San Luis Obispo
SacramentoSanta Rosa
Santa Barbara
Sonora
Long Beach
OREGON
NEVADA
ARIZO
NA
MEXICO
El Centro
Palm Springs
AN ERA FOR MANUFACTURING IDEASCALED works with partners to spur innovation, entrepreneurship
Nine distinct regions are denoted by color tinting
on this Golden State map, which also shows some
principal cities within the regions. They are:
Southern Border (San Diego, El Centro), Southern California (Los Angeles, Long Beach, Riverside,
San Bernardino, Palm Springs), Central Sierra
(Sonora), Central Coast (Santa Barbara,
San Luis Obispo, Monterey), San Joaquin Valley (Bakersfield, Fresno, Modesto,
Stockton), Bay Area (San Francisco,
Oakland, San Jose, Santa Rosa),
Greater Sacramento, Northern Sacramento Valley (Chico,
Redding) and Northern California (Eureka).
With bank bailouts and mortgage meltdowns
dominating news headlines, it’s no wonder that
companies are looking for ways to cut costs and
weather the storm. But with proper planning, the
current downturn also could mean big opportunities
for California businesses.
“It’s more important than ever to look at ways to
strengthen our approach to economic development
– investing in long-term strategy and [maximizing
use of] existing resources,” says Kathy Millison, city
manager for the city of Clovis and incoming chair
of the California Association for Local Economic
Development, or CALED. “Now is the time to
position ourselves for future growth.”
Millison says the state is working hard to develop
strategies that will support existing industries while
fostering new ideas and technologies in everything
from health and life sciences to green industries and
renewable energy.
“California has a proven record when it comes to
innovation and entrepreneurship,” she says. “Our
economy is shifting from manufacturing products
to manufacturing ideas. We have the intellectual
resources and leadership in place to spur growth,
but we also have to look at where we fit within the
global marketplace.”
Millison insists that such changes in strategy must
occur at the local and regional level. “This is going
to be a grass-roots effort. Change is not going to
come from the top but rather from the bottom
up. It’s important to help our local and regional
economic development partners understand
their strengths and seek out opportunities.”
That has been CALED’s mission from the beginning.
Established in 1980, the organization provides
training, education, research and technical
assistance to its more than 900 members, including
cities, counties, state and federal agencies, and
economic development corporations throughout
the state – as well as the private sector.
– Amy Stumpfl
C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 11
overview
GREATER SACRAMENTO
IF THIS DOME COULD TALK Like the state laws that
percolate in its legislative
chambers, construction of the
California State Capitol was a
tedious process.
It started in 1860 – the year
before Civil War broke out on
the other side of the continent.
In 1869, the legislature and
the governor moved into
the partially completed
building, but it wasn’t until
1874 – two years before the
nation celebrated its centennial
– that the building was finished.
Along the way, floods,
materials shortages, labor
issues and funding problems
hampered progress. In 1864, a
principal architect entered a mental institution with a diagnosis
of insanity arising from “continued and close attention to the
building of the State Capitol.”
Initially budgeted at $100,000, the capitol ended
up costing $2.5 million.
More information: www.statecapitolmuseum.com.
SOUTHERN BORDER
TRADE SECRETSMexico is California’s largest
trading partner. And that’s good
news for the border counties
of San Diego and Imperial.
Golden State crossing points to
Mexico are in Tecate, San Ysidro,
Otay Mesa, Calexico and Andrade.
In December 2008, officials from
the two countries announced that
a new crossing will be built and
opened in east Otay Mesa by 2014.
“This is one more step in our
continued effort to rebuild and
expand the infrastructure needed
to accommodate increased
international trade with Mexico
and other countries,” Gov. Arnold
Schwarzenegger said.
An estimated $18.3 billion in
California products – led by
computers/electronic products
and transportation equipment –
were exported to Mexico in 2007.
NORTHERN CALIFORNIA
CALIFORNIA STREAMINGWhen most people think about California, hunting and
fishing do not come immediately to mind. But for many
residents of the state’s northern tier of counties, hunting
and fishing are a way of life.
Consider, as one prime example, Six Rivers National Forest
in Del Norte, Humboldt, Siskiyou and Trinity counties.
Blacktail-deer hunting on its nearly one million acres is
renowned. Also popular is hunting for quail, grouse, wild
turkeys and – on a limited basis – Roosevelt elk.
Anglers, meanwhile, are drawn to such streams as the Smith
and Klamath rivers, where trophy-size Chinook salmon and
steelhead trout have been caught. How big? A state-record
27-pound, 4-ounce steelhead was landed in 1976, and a
monster 68-pound Chinook salmon was netted in 2004.
12 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
business almanac
SAN JOAQUIN VALLEY
FIELDS OF PLENTYAgriculture defines this eight-county region – everything from olives and nuts to asparagus and nectarines, and from beef and sheep to dairy products and cotton.
Heading the list are Tulare and Fresno counties, which are the nation’s top-two agricultural counties.
According to Paul M. Saldana, president and chief executive officer of the Tulare County Economic Development Corp., Tulare County produces about $4 billion worth of agricultural goods annually; it is No. 1 nationally in citrus and dairy production, No. 2 in almonds and grapes, and in the top five for pistachios.
Tulare County is also home to the World Ag Expo – billed as the world’s largest annual agricultural exposition. It draws more than 100,000 people each February.
NORTHERN SACRAMENTO VALLEY
CONCRETE EVIDENCEIn the same year the Allied troops stormed the beaches
of Normandy, France, on D-Day (1944), the federal
government completed construction of the Shasta Dam
on the Sacramento River near Redding.
The massive dam – 3,460 feet across at the top and 602
feet tall – provides vital control of water flowing southward
toward Sacramento and the Bay Area. The impoundment it
forms, Shasta Lake, covers as much as 30,000 acres and is
the largest manmade reservoir in California, providing
recreational opportunities of many kinds.
Another key component of the project is hydroelectric
power. Shasta’s turbines can generate up to 676 megawatts
of electricity.
SOUTHERN CALIFORNIA
LIGHTS, CAMERA, ECONOMIC ACTIONThere’s no denying it: Hollywood means more
than glitz and glamour. It also means big
bucks for the region.
A recent study commissioned by
the Los Angeles County Economic
Development Corp. found that the film industry employs
about 200,000 people in Los Angeles County. That
includes those working for motion picture or sound
companies, in broadcasting, or as independent artists,
writers and performers. The film industry is the county’s
third-biggest employer.
Another study, this one conducted in 2006 by the Motion
Picture Association of America, ranked California as a clear
No. 1 in the economic benefit of production of movies and
TV shows. It had $42.2 billion of such benefit.
C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 13
E N J O Y T H E S U I T E L I F E
Conveniently located at the Richards Blvd. exit off I-5; just minutes away from historic Old Sacramento, Downtown and Riverfront areas, the Hawthorn Suites Sacramento has everything you need to exceed
your expectations; whether you are traveling for business or pleasure.
Accommodations272 studio and two-bedroom suites, most with fully equipped kitchens (Renovated in fall of 2008)
Well-lit oversized work deskVoice mail, dataports, dual-line speaker phones and wireless high-speed Internet access
Full-size iron, ironing board, hair dryer and coffee makerSatellite TV with premium channels and Pay-Per-View
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For reservations, please call: (800) 767-1777
BAY AREA
RAIDERS AND CONTAINERSOakland is known to sports fans for the
Raiders of National Football League and
the A’s of Major League Baseball. In the
world of commerce, the city is known for
the Port of Oakland.
The port incorporates not only the
sprawling marine facilities on the east
shore of San Francisco Bay but also the
adjacent Oakland International Airport.
Together, they cover about 3,500 acres
and 19 miles of waterfront. In addition, the
port owns and manages more than 900
acres of commercial real estate, including
Jack London Square – a development of
offices, restaurants and retail stores. In
all, the port’s assets total approximately
$2 billion, and annual revenues are about
$260 million.
In 1962, the Port of Oakland became the
first on the West Coast to accommodate
container ships. Today, its 35 cranes load
and unload 99 percent of the containerized
goods moving through Northern California,
making it the fourth-busiest container port
in the United States.
More information: www.portofoakland.com.
CENTRAL COAST
VINES AND WINESIt’s been five years since the motion picture Sideways
was released, but its effects are still being felt by scores
of wineries on the Central Coast. The hit film, which was
nominated for five Academy Awards and won one,
revolved around a weeklong road trip through the region’s
wine country. For many people, it was a revelation that this
part of California – well
southeast of the fabled
Napa Valley – is a prime
wine-growing region.
But the truth is, Franciscan
friars began growing wine
grapes here a century ago.
And now there are about
400 wineries in the three
counties of Santa Barbara
(130-plus), San Luis Obispo
(200-plus) and Monterey
(65-plus). Many have won
awards for specific vintages
of such wines as cabernet
sauvignon and pinot noir.
CENTRAL SIERRA
SKIING IS BELIEVINGWhen the Sierra Mountains are blanketed in white, skiers
and snowboarders are found on the region’s many slopes.
Ski resorts include Mammoth Mountain and June
Mountain in Mono County, Badger Pass and Dodge
Ridge in Tuolumne County, and Bear Valley and Kirkwood
Mountain in Alpine County.
Of these, Mammoth is probably the best known. It offers
bowl skiing on 3,500 acres, with three gondolas and
23 chair lifts available to whisk skiers up the mountain.
Average annual snowfall is about 350 inches, but the
resort supplements that with snowmaking machinery
on about a third of the trails.
C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 15
business almanac
It’sGoTime
16 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
business climate
Companies see innovation as the key to overcoming the
economic downturn
California has experienced tough times before, and the state always has found ways to remedy the difficult situations.
Many of those remedies came in the form of innovation.
“Economic disruptions like those being experi-enced in California and the nation are challenging, but they also create new economic opportunities because the status quo is challenged,” says Brian McGowan, California deputy secretary for eco-nomic development and commerce. “California is historically innovative about creating new business models. The challenge is identifying where those new opportunities are going to lie. We will get through this and come up shining because we’re Californians – we are different from any other state.”
McGowan says one of the future innovations will involve planning highways with interchanges at strategic points. “When we construct a highway from now on, we want the interchanges built where there will be future economic growth,” he says. “We will reason why an interchange should be here instead of having it over there. No highway thinking model such as this currently exists any-where in the world, but it will become a reality in California.”
McGowan, a board member of the California Association for Local Economic Development, says the state also is encouraging economic developers to step up their efforts. Some cities have responded by increasing their advertising budgets to implore residents to buy locally and thereby save gas money while stimu lating the
Cilion Inc. built a $60 million plant in Keyes to produce 55 million gallons of ethanol annually.J
EF
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INNOVATION
In 2008, California Gov. Arnold Schwarzenegger plunked down $125,000 of his own money and purchased a Tesla Roadster. Since then, 200 more people have done so.
TESLA MOTORS INC. is a Silicon Valley-based electric vehicle manufacturer that began producing its two-passenger roadster models in 2008. The base price is $109,000.
The company, which has about 300 employees in the San Mateo County city of San Carlos, has announced that it will begin manufacturing a sedan (base price $57,400) in 2011.
More Insight
SEE VIDEO ONLINECALED’s Wayne Schell talks
about the state’s economy at
californiabusinessimages.com.
C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 17
Get Ready, Get SetCALED PROMOTES STATE’S PLUSES
Wayne Schell believes the
federal government shouldn’t
be doing everything to rescue
California’s slumping economy.
He believes individual
communities should step
up and initiate their own
economic stimulus activities.
“The main point that we are
asking communities – as well as
the state – to consider is, how
are you going to accelerate
your economic process to get
your own house in order?”
says Schell, president and
chief executive officer of the
California Association for Local
Economic Development. “As for
us at CALED, our job is to supply
information to the state and
communities that will help them
with economic development.”
Schell says one CALED
suggestion is for communities
to have land sites cleared and
ready so that interested
businesses can get facilities
built quickly. Schell adds that
there are still many growth
opportunities for the business
world in California, even though
some news media fail to report
that message.
He asks, “When do we start
mentioning the good aspects
of business? Our job at CALED
is to get the word out about all
of the positives in California,
so that a company’s grand
opening can occasionally get
ahead of headlines trumpeting
a company’s closing.”
– Kevin Litwin
local economy.McGowan constantly promotes the
state, reminding people “that while some states can maybe claim two or three leading industries, California can claim [many more]. We are the leader in entertainment, software technology, water technology, IT, logistics, nano-technology, biotechnology and on and on. That’s why it is perfectly conceivable that Californians will lead the way in coming up with innovative new business models, as we eventually see a new econ-omy emerge not only nationally but globally over the next five years.”
EXPANSIONS AMID DOWNTURNS
One county that continues to enjoy business success is San Joaquin, which has welcomed 52,000 new jobs over the past 15 years. Economic developers say they always look to capitalize on the county’s business strengths, such as its proximity to major markets.
“Most of our local companies do busi-ness with Northern California and its population of 15 million people, plus the regional eight Western states that are easy to access,” says Mike Locke, presi-dent and chief executive officer of the
San Joaquin Partnership economic devel-opment organization. “We are lucky to have an ideally located water shipping port in Stockton, great weather for our large agricultural industry, plus easy trucking access to Interstates 5, 205, 580 and State Route 99.
Locke says San Joaquin County is also a railroad freight hub. “We have BNSF doing about 400,000 container load-and-unload lifts a year at their intermodal rail yard, while Union Pacific performs 150,000 annual lifts – and is currently undergoing a major expansion to double the size of its facility,” he says.
Locke adds that USG Corp. is planning to build a $350 million gypsum sheetrock plant in San Joaquin County beginning in 2010, and The Home Depot in 2009 established its third huge distribution center in the county. In fact, 12 company expansion projects were completed in San Joaquin during 2008, even during the economic downturn.
“Sure, economic times are tough right now, but a large part of an economic downturn is psychological,” Locke says. “We are Californians, we are innovative, and we will get through all of this as a leader – just like we always have.”
– Kevin Litwin
JE
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SureWest Communications is one of the tenants in McClellan Park, a corporate office park near Sacramento that offers more than 16 million square feet of space.
18 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
business climate
JE
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Workforce development flows from nimble community colleges’ program
InitiativesTaking the
A mural saluting the arts adorns the campus of two-year Cosumnes River College.
JE
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With 110 community colleges operating in 72 districts, the California Community
Colleges system is an important vehicle for delivering workforce training across the state.
Ten strategic, priority initiatives that focus on high-growth, cutting-edge employment sectors form the basis of CCC’s Economic and Workforce Development Program, which operates out of numerous resource centers.
By continually assessing workforce and business development needs across California’s diverse economic regions and industries, the program revs up the col-leges’ workforce development engines, enabling them to provide relevant training programs quickly as well as craft career pathways for students.
The Economic and Workforce Development Program also addresses challenges confronting workers, espe-cially those in emerging technology fields. The program “is able to be at the forefront, to be agile in front of employers’ immediate needs,” says José Millan, vice chancellor of economic devel-opment and workforce preparation for California Community Colleges.
Millan says the 10 initiatives “are our research and development to go out and find what programs are needed. Then, depending on the volume of demand,
C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 19
education
FAST TRACK TO SUCCESS
Community Colleges’ Economic and Workforce Development Initiatives:
Advanced Transportation Technologies & Energy
Applied Biotechnology Centers
Centers for Applied Competitive Technologies
Business & Workforce Performance Improvement
Environment, Health, Safety & Homeland Security
Health Care
Centers for International Trade Development
Multimedia & Entertainment
Small Business Development Center
Workplace Learning Resource
More Insight
we can develop short-term programs for training on a contract basis – or, if necessary, transform training into standardized programs for all of the colleges.”
FROM RETRAINING TO VIDEO GAMING
The Multimedia & Entertainment Initiative is a prime example. Various offerings at six MEI Centers range from traditional credit instruction to noncredit and fee-based classes. Some even offer low or no cost workshops on digital media subjects or on retraining motion picture union workers, says John Avakian, MEI director.
“Beyond the more direct offerings at the various centers, there are hundreds of digital media programs offered at community colleges across California that are in existence in part because of the curriculum development efforts of the Multimedia & Entertainment Initiative,” Avakian says. As an example, he cites the Creative Entrepreneurship certificate program – devel-oped by the Northern California New Media Center at Mission College – that was based on survey input from industry professionals.
Another MEI success story relates to a series of products and events targeting the video game industry, a significant contributor to California’s economy. MEI cosponsored two industry studies and sponsored a symposium that brought togeth er 70 community colleges faculty members and 12
game industry professionals to discuss work-force needs in game development and to assess related programs of study.
The initiatives benefit from partners in related industries, all of which provide input and donate time, space and, in the case of MEI, software. MEI’s partners include Adobe, Apple, Autodesk, Unity3D, Acme Animation and the Entertainment Economy Institute.
Being on the cutting edge of new technologies also means a green emphasis permeates the initiatives.
“One thing I’ve directed all of them to do is focus on green technology within that sector,” Millan says. “For instance, in health care: Using electronic medical records versus paper or choos-ing supplies made from recyclable materials makes them greener.
“Obviously, the Advanced Transportation Technologies and Energy Initiative deals more directly with hybrid cars, biodiesel, etc. But all the initiatives can stand to incorporate new efforts to go green. ‘Helping an employer to become more green’ is our new mantra,” he says.
Visit www.cccewd.net to find out more.– Carol Cowan
The office of California Community Colleges in the state capital, Sacramento, oversees 110 colleges.
READ MORE ONLINEHigh school students gain insight into
economic development.
20 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
INNOVATION
Schooling the Creative ClassOPEN 24/7, COLLEGE GIVES STUDENTS SCHEDULING FLEXIBILITY
In addition to enriching culture
through the arts, creative people
make vital contributions to the
economy. But creative types
don’t always thrive in traditional
classroom settings. Ex’pression
College for Digital Arts, in
Emeryville on the east side of
San Francisco Bay, takes an
innovative approach that appeals
to these kinds of students and
outfits them with skills to succeed.
The college offers bachelor’s
degrees in animation and visual
effects, game art and design,
motion graphic design, and sound
arts. It also offers advantages such
as faculty that includes industry
professionals, and professional-
grade equipment. In addition, the
school is open 24 hours a day,
seven days a week, so students
can work on projects whenever
their creative muse strikes.
“The unique class structure
provides an environment more
conducive to creative people,
who often are not inspired in a
regimented 8-a.m.-to-3-p.m.
classroom day,” says Randy
Starbuck, director of
redevelopment for the city of
Pittsburg and father of an
Ex’pression College student.
“The schedule also affords the
school the opportunity to employ
as instructors people who have a
day job in the creative world.”
Starbuck continues, “Ex’pression
provides training for the new world
of performing arts – primarily
movies – and these people can
work just about anywhere.”
– Carol Cowan
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Timo Preece uses an audio-mixing console at Ex’pression College for Digital Arts.
C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 21
education
Harbors on the coast and inland improve infrastructure, adopt green policies
Ports ofCal
22 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
California’s ports are taking advantage of lesser traffic brought on by the sluggish economy to make improve-ments that will strengthen them for the future.
From the twin ports of Long Beach and Los Angeles, which handle about 40 percent of the nation’s cargo, to smaller facilities such as those at Humboldt Bay and Crescent City, as well as inland sites in Pittsburg and Stockton, upgrades to infrastruc-ture are under way or planned.
“Our ports face competitive pressures from new and expand-ing ports in Mexico and Canada as well as other domestic ports, mostly on the East Coast,” says Bill Allen, president and chief executive officer of the Los Angeles County Economic Development Corp. “Trade diversion to other ports, the sour economy and the resultant drop in container traffic … ripples out to many port-related employment sectors including longshoremen, truck drivers, industrial real estate and port finance.”
The ports of Long Beach and Los Angeles are implementing the San Pedro Ports Clean Air Action Plan, or CAAP, which involves hundreds of millions of dollars invested by them, local air districts, port-related industries and the state to cut particulate matter pollution from all port-related sources by at least 47 percent over the next five years. A major portion of CAAP is the Clean Trucks Program, which is expected to reduce air pollution from port-drayage trucks by more than 80 percent.
“There must be a commitment to ‘green growth’ so that our ports modernize and expand in a way that cuts pollution, creates thousands of new high-wage jobs and contributes billions of dollars to our local economy,” Allen says. “From an
Ports in Los Angeles, Long Beach and Oakland (pictured) are among the nation’s busiest – and taking steps to remain so.J
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READ MORE ONLINEBurlingame-based Virgin
America airline wins travel
industry accolades.
C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 23
transportation
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ScorecardPORTS REPORT
$100 billion+value of cargo that moves through the Port of Long Beach annually
$190 billionvalue of cargo handled annually by the Port of Los Angeles
1ranking of Los Angeles in container volume
24 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
transportation
INNOVATION
Fast Times AheadRIDING THE RAILS GOES HIGH-SPEED, WITH 800-MILE SYSTEM PLANNED
California’s high-speed rail plans
are fast becoming a reality, thanks
to voter approval of funding that
now may be augmented with
federal stimulus dollars.
With the establishment of
the California High-Speed Rail
Authority in 1996, the groundwork
was laid for a high-speed system
to serve the state’s major
metropolitan areas. The authority
began working on what would
become Proposition 1A, which
called for $9 billion in bond
funding plus $950 million to
improve commuter, intercity rail
and local transit lines. The measure
passed in November 2008.
The massive undertaking is
getting a boost from the federal
government via both stimulus
funding and the fiscal 2010
budget, which sets aside billions
for such projects, says San Mateo
Superior Court Judge Quentin
Kopp, chairman of the authority.
“We have notified both of our
U.S. senators and other interested
parties that with respect to the
government stimulus bill, we’ll be
applying on the basis of qualifying
for about five or six different
items, such as removing more
than 600 grade crossings between
Anaheim and San Francisco,” Kopp
says. “We also will be including in
that application the acquisition of
land and construction of a central
maintenance facility in or near
Merced in the Central Valley, and
a storage yard in the Bay Area
and one in the Los Angeles Basin.”
The cost all requests will be
about $2 billion. “I’m reasonably
confident that a substantial part,
if not all, of our application will
be granted,” Kopp says.
The proposed 800-mile system
would stretch from Sacramento to
San Diego. Trains operating as fast
as 220 miles per hour would travel
from Los Angeles to San Francisco
in about 2 hours, 40 minutes.
– Joe Morris
economic development perspective, the bottom line is jobs, and some estimates forecast that green growth at our twin ports could generate close to 1 million new jobs over 20 years.”
MAJOR IMPROVEMENTS IN LONG BEACHCurrently, the Port of Long Beach has three major infra-
structure projects in the works or wrapping up, according to James Hankla, president of the Long Beach Board of Harbor Commissioners. He identifies them as the $780 million Middle Harbor Project to combine two older piers into a new pier and terminal with enhanced rail transportation; a second new terminal costing about $700 million; and the $1.1 billion replacement of the Gerald Desmond Bridge.
“When we come out of the recession, we will have a very, very attractive infrastructure in place,” Hankla says, “We’re also doing several smaller, rail-oriented improvements and are working on a zero-emission cargo system to move between the ports and the intermodal container facility. We’re trying to make use of this downtime to get the necessary improve-ments done to make us both more competitive and more environmentally sterile.”
Similar efforts at the state’s smaller ports will be just as vital to their long-term success, says Barry Sedlik, president of California Business Ventures and former acting secretary of the California Business, Transportation & Housing Agency.
“Having viable ports and the ability to move goods in and out efficiently is critical to the state’s future economy,” Sedlik
says. “They have tremendous challenges relative to emissions and health effects, and a lot is being done relative to changing out trucks for rail and other onsite operations. Those things are very expensive to do in the short run, and they have to find the balance between improving efficiency and keeping costs competitive. It’s a big challenge, and they’re trying to meet it.” – Joe Morris
Giant wind turbines are offloaded at the Port of Stockton. Left: Thanks to a $17 million dredging project on the Sacramento River, the port can accommodate larger vessels.
C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 25
California Endowment targets 14 communities for ambitious initiative
With nearly 7 million people lacking health coverage – including more than 700,000
children – California has the highest number of uninsured residents in the nation. To compound the problem, the state is peppered with pockets of poverty.
“Low-income communities don’t have the same access to health, social, eco-nomic and cultural supports as their more affluent counterparts,” says Robert Alaniz, public affairs director for The California Endowment, based in Los Angeles. “Families in these communities live sicker and die younger.”
The California Endowment is work ing to change that. The private foundation, established in 1996 after Blue Cross of
California converted to a for-profit entity, provides funding to improve the health of Californians, particularly those in under-served communities.
“Where we live, work and play has a direct impact on our health,” Alaniz says. “The evidence is empirical, and the statistics are undeniable.” Consider that residents along Los Angeles’s South Figuerro Corridor are nearly twice as likely to die prematurely from heart disease as residents of the city’s well-heeled Westside.
To address the inequities, The California Endowment is embarking on a 10-year initiative, Building Healthy Communities, with implementation to begin in 2010. The health foundation
Established in 1996 when Blue Cross of California converted to a for-profit entity, The California Endowment has offices in five cities, including Sacramento.
ScorecardCALIFORNIA ENDOWMENT GRANT MAKING
$165 millionin fiscal year 2008
$133 millionin fiscal year 2007
$163 millionin fiscal year 2006
$165 millionin fiscal year 2005
Here’s toYour
Health
26 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
health
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C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 27
selected 14 communities, each of which must develop a plan to achieve 10 specific outcomes that will help reach statewide goals for better health.
One desired outcome, for instance, would be that residents live in commu-nities with equitable housing and health-promoting land use, transpor-tation and community development.
“We selected 14 communities so we can demonstrate that you can turn com-munities around and build them into environments that support community health,” Alaniz says. The selection took into account each community’s need, readiness and willingness to commit to a 10-year effort, infrastructure and leader ship.
The choice of 14 communities (from an initial list of 20) was based on the amount of resources the health foun-dation can commit to the project over the next 10 years.
CHILDREN DEFINE COMMUNITY HEALTH
The California Endowment, which has regional offices in Fresno, Oakland, Sacramento and San Diego, also will par-ticipate in statewide policy/advocacy efforts to create sustainable health
improvements for all Californians. Policy change can occur at the insti-
tutional, local or statewide level. An institutional policy change might mean that hospitals no longer bill low-income, uninsured patients at an inf lated rate for emergency services. A statewide policy change could involve laws that provide universal health coverage for uninsured children. A system change involves mov-ing from the current health-care model of primarily responding to the ill to focus-ing on preventing illness.
In addition to the Building Healthy Communities initiative, The California Endowment offers the Center for Healthy Communities, which provides space for nonprofit organizations and public institutions to tackle California’s most pressing health issues. It also offers curricula that address communication, advocacy and evaluation.
No matter the initiative, the health foundation’s efforts put children as a priority. “The health of a community’s children is a prime indicator for that community’s health,” Alaniz says. “If the children are doing well, it is likely that the community has access to the support it needs to be healthy.”
– Pam George
The endowment’s Building Healthy Communities initiative will be implemented over 10 years, beginning in 2010. It will address inequities in access to health care.
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INNOVATION
Connecting the DocsTELEMEDICINE LINKS RURAL PATIENTS
When a Colusa County
hospital lost the nurses who
monitored high-risk women in
labor, the rural facility faced the
end of its obstetric services.
Enter the UC Davis Health
System. In 1992, the University
of California, Davis, set up a
telephone-based fetal-
monitoring link between the
hospital and the UC Davis
Medical Center in Sacramento.
In 1996, the telemedicine
program expanded to include
real-time audiovisual
technology. Today, the program
covers more than 30 specialties
– including dermatology,
psychiatry, orthopedics,
infectious disease and pediatric
critical care – to give rural
hospitals access to specialists.
Critical-care consultations are
available 24/7, 365 days a year.
Indeed, one pediatrician did an
urgent consultation from his
home on Christmas Day, says
Dr. Javeed Siddiqui, associate
medical director of the Center
for Health and Technology at
UC Davis.
Participating hospitals and
clinics provide equipment for
the telemedicine link. An onsite
physician conducts a physical
exam, if needed, and can control
the camera to zoom in for a
closer look.
“By increasing access to
specialists, telemedicine has
demonstrated that it can
decrease the cost of health
care,” Siddiqui says.
– Pam George
28 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
health
Loma Linda University Medical Center enhances health care in Inland Empire
Bigger is better at Loma Linda University Medical Center, the only Level I trauma center in San Bernardino, Riverside, Inyo and Mono counties. The 939-bed
medical center includes a children’s hospital, a behavioral health center and the 23-acre East Campus.
“We’ve been growing by leaps and bounds,” says Steven Mohr, senior vice president of finance, who’s been on the staff for 10 years. “Since I’ve started here, we’ve grown from a $550 million organization in revenues to a $1 billion organization.”
Loma Linda’s reputation is as big as its campus. In 2008, NBC News correspondent George Lewis discussed on-air his nine-week proton cancer therapy there, and U.S. News & World Report included the medical center’s ear, nose and throat specialty on its list of America’s Best Hospitals.
Part of Loma Linda University, founded in 1905 by the Seventh-day Adventist Church, LLUMC treats the mind and spirit as well as the body. Consequently, it’s expanding behav-ioral health services at the Redlands Behavioral Medicine Center, which offers inpatient and outpatient services to treat psychological and substance abuse.
The 46,000-square-foot building, scheduled to open in fall 2009, will increase outpatient services in such areas as mar-riage and family counseling, and social work. “It will be a one-stop shop,” Mohr says.
The facility in Redlands is one of many LLUMC has built or is building in the Inland Empire.
In December 2008, it opened the Loma Linda University Heart & Surgical Hospital in Colton, which offers services in cardiac care, urology, women’s health, head and neck care, and minimally invasive surgery.
Current construction of the 106-bed Loma Linda University Medical Center-Murrieta represents a new direction for LLUMC. The $211 million hospital, expected to open in late 2010, is a joint effort between LLUMC, Physicians Group of Murrieta and Surgical Development Partners, a Nashville, Tenn.-based hospital developer. “We’re always looking to collaborate with other organizations,” Mohr says.
An accompanying medical building is slated to open in January 2011. In five years, the hospital should generate 500 jobs with an estimated payroll of $32 million, according to Surgical Development Partners’ projections. The hospital is considering the addition of 114 beds within two years after opening.
In Beaumont, LLUMC is partnering with Beaver Medical
Group and Redlands Community Hospital to build an outpa-tient surgery center, urgent care center and medical offices. The 85,000-square-foot building is scheduled to open by summer 2009.
“We’re working with area providers,” Mohr says. “Rather than expect them to drive to Loma Linda University Medical Center, we decided to team up and bring quality care to the citizens in these areas.”
– Pam George
On the Move
LLUMC’s main campus includes a 939-bed medical center.
C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 29
Tourists f lock to California to enjoy – for a week or a weekend at a time – the state’s multiple attractions and exceptional climate. The people who live here can
do so, of course, 52 weeks a year. “The great thing about California is that there are so many
different activities to experience – you can even snow ski and ocean surf all in one day,” says Carolina Beteta, president and chief executive officer of the California Travel and Tourism Commission. “There are world-class entertainment cities and majestic mountain adventures, and wildly beautiful coasts and deserts. No other state offers our diversity and abundance of inspiring landscapes and engaging activities.”
Recreational adventures range from hiking in the High Sierra to kayaking amid sea otters on the Pacific Coast. The landscapes include the highest point in the continental United States (14,505-foot Mount Whitney) and the lowest point on the North American continent (Badwater in Death Valley, 282 feet below sea level).
In fact, the topographic and recreational options in California are so diverse that tourism officials have separated the state into 12 destination regions: Central Coast, Central Valley, Desert, Gold Country, High Sierra, Inland Empire, Los Angeles County, North Coast, Orange County, San Diego County, San P
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CaliforniaDreamin’
State remains a leader in recreational opportunities
30 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A 30 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
Left: A cyclist climbs a hill in the Marin Headlands, with the Golden Gate Bridge and San Francisco Bay as a dramatic backdrop. Above: Kiteboarders soar at Ocean Beach, which, like Marin Headlands, is part of the Golden Gate National Recreation Area.
Francisco Bay Area and Shasta Cascade.“Each of the state’s 12 regions has its own character, and to
travel from one to another can give you the impression you’ve traveled into a different country entirely,” Beteta says. “There are mystic redwood forests of the North Coast, magnificent granite peaks of the Sierra Nevada and stunning beaches of Southern California. This state simply possesses a spectacular array of landscapes for residents and visitors to enjoy.”
A BOON TO EMPLOYEE RECRUITMENTThe abundant recreational options also help employers
attract the kind of talent needed to keep their companies in high gear.
“There are so many positive things happening here, including the fact that California is a leader in innovation,” Beteta says. “Creative people enjoy living in a creative atmosphere, and California is also a leader in attracting such talent.”
Beteta adds that California’s weather is a major reason why the quality of life is so exceptional. Not only is the climate ideal for active lifestyles, but it is a key component in why the state has such a vibrant agricultural industry.
“As the top producer of agriculture and wine in the United States, California offers the greatest opportunities to expe-rience the best in food and wine – not only in taste but in harmony with the land,” she says. “Great food and great wine also attract visitors, and are simply two more reasons why California remains one of the most desirable tourism and recreation destinations in the world – and always will be.”
In fact, with more than 350 million annual travelers, California is easily the most-visited state in America. Collectively, tourists spend an average of $100 billion annually, and nearly 20 percent of that spending can be attributed to international travelers.
Travel spending in California directly supports 925,000 jobs and a payroll of $30 billion. – Kevin Litwin
READ MORE ONLINEAn eco-friendly development
with 50,000 homes is
proposed in Kings County.
C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 31
livability
RaisingtheGreen
32 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
S ince passage of Assembly Bill 32, the California Global Warming Solutions Act of 2006, the Golden State has been
pumping up efforts to get its energy policy in top shape.
Its sweeping action plan is widely viewed as a national model for pursuing renewable energy and reducing greenhouse gas emissions.
I n November 20 08, G ov. A r nold Schwarzenegger signed an executive order that raised the state’s targeted renewable-energy standard to 33 percent by 2020 – the most aggres sive standard in the country. To reach it, Californians must grow the state’s solar, wind and geothermal energy assets. To further encour-age the growth of green energy, the governor’s order streamlines the approval process for renewable-energy projects.
One month after the signing of that execu-tive order, the California Public Uti l it ies Commission gave the green light to San Diego Gas and Electric’s Sunrise Powerlink electric transmission line. The $1.9 billion project will carry renewable energy that is being developed in the Imperial Valley east of San Diego, says Jennifer Briscoe, SDG&E spokesperson.
“The goal for the Sunrise Powerlink is to fill the 120-mile line with 1,000 megawatts of green energy, which is enough to power 650,000 homes here in San Diego. SDG&E has an agreement
with Stirling Energy Systems for more than 750 megawatts of solar energy. We also have two geothermal contracts for a 20-megawatt and a 40-megawatt geothermal facility. We are also interested in wind opportunities,” Briscoe says. The company expects Sunrise Powerlink to be fully energized by 2012.
The state’s largest electric utility – Southern California Edison – already is the leading pur-chaser of green power in the United States. In 2007, the company purchased 80 percent of all solar power generated in the United States. Its renewable-energy portfolio contains 1,137 mega-watts from wind, 906 megawatts from geothermal, 356 megawatts from solar, 185 megawatts from biomass and 200 megawatts from hydroelectric power sources.
In 2008, SoCal Edison signed contracts to purchase an additional 1,500-plus megawatts of wind energy, and in February 2009, it announced an agreement for 1,300 megawatts of solar thermal power, pending CPUC approval.
GOALS SET AS FAR AHEAD AS 2050
Along with developing clean, green power, the state is taking measures to improve energy efficiency and drastically reduce greenhouse-gas emissions. Assembly Bill 32 calls for emissions to be decreased to 1990 levels by 2020,
Two of hundreds of wind turbines at Altamont Pass near Tracy in Northern California PHOTO BY JEFF ADKINS
StandardCalifornia’s vigorous green-energy
policies set a high bar for the nation
More Insight
INNOVATION
PACIFIC GAS AND ELECTRIC CO. is making it easy for customers to reduce their carbon footprint.
Its voluntary ClimateSmart program uses participants’ tax-deductible payments to fund environmental projects that curb greenhouse gas emissions, such as forest conservation and the capture of methane gas from dairy farms and landfi lls.
More than 31,000 customers have signed on, including individuals, companies and cities.
C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 33
energy/technology
The San Gabriel Economic Partnership is a regional, not-for-profit corporation committed to the continued
successful economic development of the San Gabriel Valley. The Partnership, a collaboration of businesses,
local government, colleges and universities, pursues this commitment through three areas of focus: Providing
Professional Business Assistance, Advocating Public Policy and Marketing the San Gabriel Valley.
www.VisitSanGabrielValley.com
Come visit San Gabriel Valley A great place to live, work and play.
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Come visit San Gabriel Valley A great place to live, work and play.
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LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLoooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaattttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiioooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooonnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn................................................................................................Location. Location. Location.
34 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
Solar FlaresPHOTOVOLTAICS PROVIDE ENERGY BRIGHT SPOT
In 2008, Golden State
residents, business owners
and local governments shelled
out cash for a record number of
solar photovoltaic installations
that will generate 158
megawatts of electricity.
With a boost from state and
federal incentives, that figure
was more than double the 78
megawatts installed in 2007.
California now boasts nearly
70 percent of solar installations
nationwide, with a cumulative
total of 441 megawatts of
distributed solar PV systems.
One of the largest
installations in Northern
California is at the Mariani
Packing Co. in Vacaville, which
processes about 100 million
pounds of dried fruit each year.
The company recently put up
5,800 solar panels on seven
acres adjacent to the plant.
The panels generate one
megawatt of electricity –
about 25 percent of the
company’s needs, says Mark
Mariani, chairman and CEO.
“With the state and federal
tax credits and Pacific Gas and
Electric Co. rebates, we’ll be
able to recoup our costs in six
or seven years,” Mariani says.
He adds, “It makes good
business sense because it will
hedge our future utility costs.
And, being in the agriculture
business, we’ve been stewards
of the land for more than 100
years; we want to be good
stewards of the air as well.”
– Carol Cowan
with the governor’s next goal being a reduction to 80 percent below 1990 levels by 2050.
In addition, Senate Bill 375 aims to cut carbon-dioxide emissions by reducing driving. The bill, which garnered support from diverse factions such as builders, environmentalists, local governments and affordable-housing advocates, requires cities and counties to improve public transportation and combat urban sprawl. Under the law, regional planning authorities must develop workable strategies for meeting emission-reduction targets to be eligible for transportation funding.
Energy-conservation programs for businesses and homeowners represent another key component of the state’s overall strategy. For example, Southern California Gas Co. offers free, on-site energy audits for commercial customers. “Since late 2005, we have provided assess-ments for more than 100 of our largest customers – industrial end users that spend more than $500,000 per year for natural gas,” says Raul Gordillo, public relations advisor with the company. “Those who implement our recommen-dations save about 8 percent to 12 percent of their total energy use. Some save 30 percent to 50 percent.”
A recent state law enables home owners to get low-interest loans from cities and counties to install solar panels, dual-pane windows, energy-efficient air condi-tioners or other environmentally friendly products. – Carol Cowan
Although solar provided just 0.2 percent of the state’s power in 2007, new projects such as Stirling Energy Systems’ SunCatcher installations will boost that share.
Scorecard
RENEWABLE ENERGY USE
14.5percent of state’s electricity drawn from hydro projects
4.6percent from geothermal
2.3percent from wind
2.1percent from biomass
Source: California Energy Commission (2007)
C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 35
energy/technology
UCLA is one of the 10 UC campuses where research has given rise to scores of companies, including 55 in the last fiscal year.
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research & development
University of California research spawns hundreds of private sector companies
Imagine a washing machine that notifies you when it’s time to wash clothes, based on the time of day when electricity rates are lowest.
The idea is to reduce electricity consumption at times of peak demand, thus improving power-production efficiency and ultimately curbing the number of plants needed to handle the load.
Researchers at startup company SynapSense Corp. in Folsom aren’t imagining the device that will make this happen. They’re designing it.
Launched in 2006, SynapSense specializes in wireless instrumentation to collect and transmit data. Packaged as devices the size of a matchbox, the SynapSense technology already is in use by Yahoo! and the Lawrence Berkeley National Laboratory to improve the energy efficiency of their data centers.
SynapSense is just one example of a private-sector enterprise born from research at one of the University of California’s 10 campuses. In fact, more than 400 startup companies have been founded based on UC-developed tech-nologies, 55 of them during the fiscal year that ended June 30, 2008, according to Patricia Cotton, director of business development and intellectual property management for the UC system. Licens-ing income for the system from agreements with industry totaled an impressive $128.4 million for fiscal 2008.
GREEN ENERGY AND GENENTECH
“One of the goals of our tech-transfer program is to create public benefit from UC research,”
Cotton says, adding that more than 30 startup companies are in renewable or sustainable energy. From UC Riverside, there’s Viresco Energy LLC, converting feedstocks to a fuel gas. From UCLA, there’s Solarmer Energy Inc., producing trans-parent, f lexible plastic solar cells. From UC Berkeley, there’s Aurora BioFuels Inc., using microalgae to generate bio-oil. And from UC Davis, there’s SynapSense.
“We consider ourselves almost like an exten-sion of UC Davis,” says Raju Pandey, SynapSense co-founder and an assistant professor on leave from the UC Davis Department of Computer Science. Pandey’s university research forms the technological core of SynapSense’s product-devel-opment initiatives. “SynapSense is more about how to take this technology and make it more robust and more scalable and then how to apply it,” Pandey says. The data-center application is the first of many, he adds.
SynapSense employs 27 people who work mostly on system design – both hardware and software – and implementation.
Businesses spawned by UC research cover an array of sectors, from telecommunications and automation to medical devices and biotech-nology. One premier example is Genentech Inc., founded in 1976 after UC San Francisco bio-chemist Herbert Boyer and geneticist Stanley Cohen pioneered the scientific field of recom-binant DNA technology. Considered the first biotech company, Genentech uses human genetic information to make new medicines. – Sharon H. Fitzgerald
INNOVATION
In 2004, California voters approved Proposition 71, which set the wheels in motion for the state’s dominance in stem-cell research.
The ballot initiative authorized the state to sell $3 billion in bonds over 10 years to fund research and to establish the CALIFORNIA INSTITUTE FOR REGENERATIVE MEDICINE.
Today, CIRM is the world’s largest source of funding for human embryonic stem-cell research. It has funded $693 million in research, and donors and insti-tutions have provided about $900 million in matching funds.
More Insight
MarketplaceFromLab to
C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 37
H ere’s a toast to the California wine industry, which is growing strong even in these tough eco-
nomic times.The industry continues to provide a
$52 billion economic impact for California each year, with nearly 2,700 wineries in oper ation. Wine grapes valued at almost $2 billion are produced annually in California vineyards covering a total 527,000 acres.
“If we were a stand-alone country, we would rank fourth in the world for wine production behind France, Italy and Spain,” says Karen Ross, president of the California Association of Winegrape Growers. “More than 90 percent of the wine in the entire United States comes from California, with wineries and vine-yards stretching from San Diego to the Oregon border.”
Ross says California wineries are still
reporting robust sales, although con-sumers have been changing their buying habits to adjust to the times.
“In the past few years, we saw signif-icant growth in the sale of higher-priced California wines, with many bottles selling for more than $20 apiece,” she says. “But ever since late 2008 and now in the current economy, we are seeing a shift by consumers looking for value. Many bottles are selling for under $7,
The Grapecrusher by sculptor Gino Miles sits along Highway 29 and welcomes visitors to the fabled Napa Valley wine district. Middle: Some results from the state’s 527,000 acres of wine grapes Right: Antelope Valley Winery is in Los Angeles County.
Vineyards and wineries continue to thrive
BottleMessagein a
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agribusiness
INNOVATION
Get the Daily DirtCOMPANY IS AT FOREFRONT OF ORGANIC GROWING
Peaceful Valley Farm &
Garden Supply has been around
since 1976, which is basically
when the organic growing
movement began.
The Grass Valley-based
company has gone from a small
operation to one that sells more
than 4,000 organic products
and today has thousands of
customers. It also has 40
full-time employees.
A third of Peaceful Valley’s
annual revenue is generated
from walkup customers to
its store, while another third
comes via Internet sales from
its www.groworganic.com Web site. The other third is
from catalog sales.
“Our catalog has become
an institution in itself and
has actually become required
reading at some colleges
that offer organic agriculture
courses,” says Luke Giniella,
marketing director. “Organic
farming and gardening has
certainly grown in interest,
especially over the past 10
years, and we have been
along for the entire ride.”
Organic agriculture involves
growing food and plants
while strictly limiting the
use of synthetic fertilizers
and synthetic pesticides.
This sustains the health of
soils, ecosystems and people.
“For example, most people
want to use fertilizers in their
personal gardens, so we
recommend natural products
such as liquid kelp or liquid
fish,” Giniella says.
– Kevin Litwin
while we are also seeing significant growth in the $7-to-$15 price range. So the industry is growing by volume but not as much in value right now, compared to what we experienced over the past four or five years.”
Ross adds that California should remain a strong wine-producing region simply because of Mother Nature. “Our Mediterranean climate of moderate temperatures, warm days, cool nights and Pacific Coast breezes makes California ideal for grape growing,” she says. “Plus the innovations of our winemakers help us compete on a worldwide basis.”
ADVANTAGES OF HAND-PICKED GRAPES
Charlie Olken, publisher of a monthly subscription-only magazine, Connoisseur’s Guide to California Wine, says the state also is fortunate to have a large number of agricultural hand laborers available.
“We can hand-pick our grapes, not like Australia and other places that grow grapes but don’t have such a labor force,” Olken says. “Many of those countries pick grapes by machine, which means that all
of the grapes get picked. That includes the less desirable ones that might have mold, are shriveled and have other defects. That doesn’t happen with California hand-picked grapes.”
The Napa Valley, Sonoma and the Central Coast continue to be the super-stars of California wine production, but Olken says several other parts of the state are strong producing regions. On the southern extremity of the Central Coast, “Santa Barbara is excellent, and its close proximity to Los Angeles makes it where Los Angelinos go to taste wine and enjoy a weekend in wine country,” he says. “Other top areas include the counties of Alameda, Lake, Mendocino, Monterey, San Luis Obispo and Santa Clara.”
Olken also points out that California wineries don’t necessarily need to grow grapes to succeed. “For example, Rosenblum Cellars in Alameda City ships in all of its grapes to a headquarters build-ing, where it then makes 200,000 cases of wine each year,” he says. “There are a variety of ways to make wines these days in California – a variety of success-ful ways.” – Kevin Litwin
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Capital investment and good wages in manufacturing strengthen the economy
CaliforniaScorecardCALIFORNIA MANUFACTURING
1.43 million workers
30,000companies
$250 billionin annual revenue
As the nation’s leader in manufacturing, California produces products as varied as pipe components at the Tri Tool Inc. plant in Rancho Cordova (above) to Budweiser and Busch beers at Anheuser-Busch Cos. Inc.’s brewery in Fairfield (facing page).
Having It Made in
42 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
manufacturing
The long track record of success hasn’t dimmed for the state’s 30,000 manufacturing opera-
tions, which continue to provide a solid base of capital investment and jobs throughout the state.
California manufacturers employ an estimated 1.43 million workers and produce $250 billion in annual revenue – making it the top manufacturing state in the nation.
“Manufacturing’s salary, benefits and job multipliers are very important to California’s working families,” says Gino DiCaro, vice president of communica-tions for the California Manufacturers and Technology Association. “Manufac-turing is the gateway to the middle class for our workers.”
Computer and electronic products, petroleum and coal, chemicals, food products, and transportation equipment make up the top five manufacturing cate-gories in the state. The average annual salary for manufacturing employees exceeds $66,000 – a figure $10,000 higher than the average of all jobs in the state, according to the National Association of Manufacturers.
INCENTIVES PAY DIVIDENDS
Although the sector faces challenges, such as increased environmental regula-tion and suppliers’ price hikes, California’s leaders are working to ensure that busi-nesses continue to thrive.
The state has instituted a system of enterprise zones offering incentives for companies making certain types of busi-ness investments, which helps draw new companies to the area, says Richard Chapman, president and chief executive officer of Kern Economic Development Corp. in Bakersfield. “Some companies can get a $35,000 credit per employee in tax offsets,” he says.
Another positive factor is the state’s network of deep-water ports, provid-ing access to Asia and other overseas markets, Chapman says, adding, “Our market strengths are location, logistics and labor.”
While traditional manufacturing con-tinues under such brand names as Alcoa, Del Monte Foods and Tyco Electronics, the use of innovative technologies and new product development move the indus try forward. One such company is Tesla Motors, an electric vehicle plant in San Carlos. Tesla benefits from another state program that waives sales tax on new manufacturing investment for zero-emission vehicles.
The company’s production facility con-stitutes a $300 million investment and creates about 300 jobs.
While impressive, those figures actu-ally underestimate the plant’s impact, DiCaro says. “For every one job created, 2.5 jobs are created in the economy as a result of the vast supplier networks that are needed in manufacturing.”
– Renee Elder
INNOVATION
A Capital IdeaLETTER OF CREDIT HELPS GUARANTEE INDUSTRIAL BONDS
A business needs to grow to
thrive, and California is finding
ways to nurture growth even
when financial times are tough.
In one case, the California
Enterprise Development
Authority turned a new federal
provision to its economic
advantage by helping Pocino
Foods in the city of Industry in
Los Angeles County, says Daniel
J. Bronfman, president of
Growth Capital Associates Inc.
CEDA is a government
agency – local cities and
counties created it – “and its
role is very specific,” Bronfman
says. “It issues bonds with low
interest rates to finance various
types of projects.”
The federal law passed in July
2008 was intended to support
the struggling housing market
by permitting Federal Home
Loan Banks to back tax-exempt
bonds with letters of credit. But
its provisions also benefit
agencies like CEDA that issue
industrial development bonds.
Shortly after the law was
passed, CEDA became one of
the first issuers to use a support
letter of credit from the Federal
Home Loan Bank Board to
complete a financing. This
“credit enhancement” helps
guarantee the bonds, making
them more saleable.
Pocino Foods, which
produces meat and poultry
products, will use the $9 million
in bond financing to cover $5.5
million of debt and spend $3.5
million for building renovation
and equipment purchases.
– Renee Elder
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C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 43
Entrepreneurs benefit from California’s pro-business spirit and policies
If you’re thinking about starting a business, there may be no better place than California.
A 2007 ranking of startup activities nationally found the Golden State was No. 1 or No. 2 in a dozen industries. These successes come as no surprise to Tracie Stafford, who sits on the
California Small Business Board and owns a Sacramento-based event market-ing and planning company, Exceptional Events Inc.
“Before starting Exceptional Events, I was in management for a high-tech company,” Stafford says. She chose to build the business in California – as opposed to, say, Nevada – because “there are so many programs here to support entrepreneurs, including the governor’s Small Business Board, where folks come together to make sure small-business owners have a voice.”
Stafford’s devotion to California was further strengthened by her travels else-where. “I found California is one of the most innovative states. There’s definitely a spirit of entrepreneurship here that I didn’t see in other states.”
Stafford, who in 2007 became the first African-American to win the Mrs. California pageant, says she’s also been impressed with the state’s efforts to reach out to minority-owned businesses. “There are so many small minority busi-nesses aided by programs the state offers to ensure there’s equality in the distri-bution of government contracts.”
GOVERNOR SETS TONEThe administration of Gov. Arnold
Schwarzenegger strongly supports entrepreneurship and small business, as evidenced by the first Governor’s
Conference on Small Business & Entrepreneurship held in Los Angeles in November 2008. Schwarzenegger invited entrepreneurs and smal l business leaders to discuss ideas on improving the partnership between the private sector and state government to stimulate the economy.
“The governor understands that in times of economic change like we’re going through now, you have to have a process to listen to what constituents need, and that was the whole purpose of the conference,” says Marty Keller, direc-tor of the Governor’s Office of the Small Business Advocate. “Clearly, the governor has a very strong commitment to ensur-ing entrepreneurs have the opportunity to be successful and are not stymied by state policies.”
One example of a successful small business is Merlot Marketing Inc., a full-service marketing agency started in Sacramento by entrepreneur Debi Hammond in 2001. It now has a full-time staff of 17 and recently added a San Francisco office.
In fact, about 98 percent of California enterprises are small businesses; they number 3.6 million companies and employ about 52 percent of the work-force. And that workforce is highly skilled, “thanks to our community college network,” Keller says.
– Jessica Mozo
StartupSuccesses
44 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
Inspirational words decorate a colorful meeting space at Merlot Marketing Inc., which was founded in Sacramento in 2001. Left: Also in 2001, Tracie Stafford started Exceptional Events Inc., and she now serves on the California Small Business Board.
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READ MORE ONLINEStatewide competition will
reward innovative entrepreneurs.
C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 45
entrepreneurship/small business
See what has arrived at the Montclair Plaza and other popular retailers in the City of Montclair
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Make it fun and easy by having all your shopping choices
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Come see what’s new in town.
Visit Montclair Plaza and you will be amazed at its new look
and exciting new stores.
While you’re in town, be sure to shop at Montclair’s other great
retailers and restaurants.
www.cityofmontclair.org
INNOVATION
A Refuge in Turbulent TimesSMALL BUSINESS DEVELOPMENT CENTERS OFFER VITAL HELP
California leaders know good
businesses often come in small
packages. That’s why 30 Small
Business Development Centers
dot the state to help owners
with everything from securing
financing to expanding operations.
“SBDCs are really valuable,” says
Mike Roessler, director of Small
Business Programs for California
Community Colleges’ Economic
and Workforce Development
Program. “A person can spend
four hours or 14 hours with a
business consultant at an SBDC,
and it’s completely free. Most of
the centers have expertise
in many different areas.”
Twenty-three of
California’s centers are
hosted by community colleges
and receive state dollars to
supplement funding from
the federal Small Business
Administration.
“All our SBDCs are really
focused on the retention of
jobs in this economy, because
there isn’t a whole lot of new
job creation right now,”
Roessler says. “All of them
offer training events focused
on doing business in tough
economic times.”
Despite the fact SBDC
services are helpful and free,
Roessler says they’re not used
as much as they could be.
“We want to encourage small
business owners to visit an
SBDC before they get into
trouble,” he says. “They’re
a support system where
business owners can
seek assistance.
“The centers are focusing
on reaching out as much as
possible and figuring out how
we can work together with
state agencies to assist small
businesses as much as we can.”
Nineteen of the centers are
even reaching out to young
people and inspiring them to
consider the possibility of
starting a company. “Our Youth
Entrepreneur Program focuses
on our SBDCs getting in front of
14-to-27-year-olds to talk about
entrepreneurship as a potential
career path,” Roessler says.
– Jessica Mozo
46 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
entrepreneurship/small business
visit ouradvertisersCity of Barstowwww.barstowca.org
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City of Pinole www.ci.pinole.ca.us
City of Tulare www.ci.tulare.ca.us
Elk Grove Economic Development Group www.elkgroveedc.org
Hawthorn Suites www.hawthorn.com
Merced County Department of Economic Development www.co.merced.ca.us
Pacific Palms Resort www.pacificpalmsresort.com
Palm Dale www.cityofpalmdale.org
Rancho Cucamonga Redevelopment Agencywww.rcrda.us
Regional Hispanic Chamber of Commerce www.regionalhispaniccc.org
Riverside www.riversideca.gov
San Gabriel Valley Economic Partnership www.visitsangabrielvalley.com
Southern California Edison www.sce.com
Town of Apple Valley www.applevalley.org
BUSINESS CLIMATEThis section of the magazine gives an overview of the economy in
each of nine regions: Northern California, Northern Sacramento Valley,
Greater Sacramento, Bay Area, San Joaquin Valley, Central Coast,
Central Sierra, Southern California and Southern Border.
RESOURCE GUIDE
NORTHERN CALIFORNIA
POPULATION532,494
PER CAPITA INCOME (2006)$30,466
JOB GROWTH (2001-06)1.3%
The Northern California region
is composed of 11 counties –
Del Norte, Humboldt, Lake,
Lassen, Mendocino, Modoc,
Nevada, Plumas, Sierra, Siskiyou
and Trinity – along the north
coast, Oregon border and
northeastern Sierra Nevada.
In terms of population, it is
the third-smallest region in the
state, with 1.5 percent of
Californians residing here
(2006). The region is the second
smallest based on employment,
with 1.1 percent of California’s
jobs (2006).
NORTHERN SACRAMENTO VALLEY
POPULATION508,733
PER CAPITA INCOME (2006)$28,074
JOB GROWTH (2001-06)6.4%
The Northern Sacramento
Valley region encompasses
Butte, Colusa, Glenn, Shasta
and Tehama counties.
It is the state’s second-smallest
region based on 2006
population, with 1.4 percent
of the population, and is the
third smallest based on 2006
employment, with 1.2 percent
of its jobs.
GREATER SACRAMENTO
POPULATION2,255,258
PER CAPITA INCOME (2006)$36,307
JOB GROWTH (2001-06)9.4%
The six counties of El Dorado,
Placer, Sacramento, Sutter,
Yolo and Yuba make up the
Greater Sacramento region,
which is the state’s fifth most
populous. The region is home
to 6.1 percent of the state’s
population and 6.2 percent
of its jobs (2006).
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C A L I F O R N I A C A L I F O R N I A B U S I N E S S I M A G E S . C O M 47
BAY AREA
POPULATION5,746,018
PER CAPITA INCOME$54,234
JOB GROWTH (2001-06)-5.8%
The Bay Area region includes
11 counties: Alameda, Contra
Costa, Marin, Napa, San Benito,
San Francisco, San Mateo, Santa
Clara, Santa Cruz, Solano and
Sonoma. This is the California’s
second-most-populous region,
with 19.8 percent of the state’s
population and 22 percent of its
jobs (2006).
SAN JOAQUIN VALLEY
POPULATION3,834,766
PER CAPITA INCOME
JOB GROWTH (2001-06)9.9%
The San Joaquin Valley
region covers eight counties:
Fresno, Kern, Kings,
Madera, Merced, San Joaquin,
Stanislaus and Tulare. It is
the state’s third-largest region
based on population and
fourth largest based on
employment, with 10.4
percent of the population
and 8.6 percent of the
jobs (2006).
CENTRAL COAST
POPULATION1,128,937
PER CAPITA INCOME (2006)$39,697
JOB GROWTH (2001-06)3.6%
The counties of Monterey, San
Luis Obispo and Santa Barbara
comprise the Central Coast
region. It is California’s sixth-
largest region, with 2.9 percent
of its population and 3 percent
of its jobs (2006).
CENTRAL SIERRA
POPULATION190,759
PER CAPITA INCOME (2006)$31,226
JOB GROWTH (2001-06)5.9%
The Central Sierra, California’s
least populous region, is
composed of seven counties:
Alpine, Amador, Calaveras, Inyo,
Mariposa, Mono and Tuolumne.
SOUTHERN CALIFORNIA
POPULATION17,755,322
PER CAPITA INCOME (2006)$37,306
JOB GROWTH (2001-06)6.5%
Southern California is the
state’s largest region, with
48.7 percent of its population
and 46.9 percent of its jobs
(2006). Los Angeles, Orange,
Riverside, San Bernardino
and Ventura counties make
up the region.
SOUTHERN BORDER
POPULATION3,136,726
PER CAPITA INCOME (2006)$41,784
JOB GROWTH (2001-06)7.7%
Imperial and San Diego counties
form the Southern Border
region. It is the state’s fourth-
largest region based on 2006
population and third largest
based on 2006 employment,
with 8.6 percent of the popu-
lation and 8.8 percent of the jobs.
FOR MORE INFORMATION
California Association for
Local Economic Development
550 Bercut Drive, Suite G
Sacramento, CA 95811
Phone: (916) 448-8252
Fax: (916) 448-3811
www.caled.org
SOURCES:
California Economic Strategy
Panel, California Association for
Local Economic Development
The information provided was the most current available.
48 C A L I F O R N I A B U S I N E S S I M A G E S . C O M C A L I F O R N I A
resource guide
Ad Index 9 CITY OF BARSTOW
46 CITY OF MONTCLAIR
34 CITY OF PINOLE
38 CITY OF TULARE
6 ELK GROVE ECONOMIC DEVELOPMENT GROUP
14 HAWTHORN SUITES
C4 MERCED COUNTY DEPARTMENT OF ECONOMIC DEVELOPMENT
10 PACIFIC PALMS RESORT
2 PALM DALE
4 RANCHO CUCAMONGA
REDEVELOPMENT AGENCY
47 REGIONAL HISPANIC
CHAMBER OF COMMERCE
C3 RIVERSIDE
34 SAN GABRIEL VALLEY
ECONOMIC PARTNERSHIP
1 SOUTHERN
CALIFORNIA EDISON
C2 TOWN OF APPLE VALLEY
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