East Bay economy continues growth ---
Whether it’s car manufacturing, almond farming, or construction, the East Bay’s economy is diverse as the local population. The actual health of the local economy is an ongoing question that is usually answered family by family. Some positive news was just released by the East Bay Economic Development Alliance (East Bay EDA), which says the East Bay’s economy is projected to continue growing in 2014 and 2015.
EDA points to an economic recovery based on numerous findings related to recent labor market, business activity, real estate, and demographic trends. Employment levels in the East Bay increased at a significantly faster pace than previously estimated - a healthy 2.4% from December 2012 to December 2013. More recently, the total number of workers employed at businesses in the East Bay expanded by 1.7% (17,000 jobs) from March 2013 to March 2014.
Some of the fastest growing sectors over the past year have been transportation and warehousing (4.9%), real estate (4.2%), and wholesale trade (4.0%) - much of the growth can be attributed to increased activity at the port of Oakland, with the value of exports such as food, wine, and machinery increasing 6.1% from 2012 to 2013.
“We are not quite seeing the economy improving for small businesses - it is happening mainly in the high-end jobs and companies doing construction,” says Jose Dueñas, CEO of the Hispanic Chamber of Commerce of Alameda County. “We have to find a way to channel this improvement in the economy to help small businesses take advantage of it.”
According to EDA’s report, there was healthy growth in high-skilled sectors such as professional scientific and technical services (3.5%) and health care (3.3%) from March 2013 to March 2014. Employment growth in computer systems design services increased payrolls by a substantial 7.4% over the past 12 months.
“It may well be true that the East Bay economy is stable but I don’t know that I would agree that it is healthy,” says Viola Gonzales, Chief Executive Officer of AnewAmerica Community Corporation, an East Bay organization that helps low income entrepreneurs start or expand their businesses. “We have had considerable underemployment over the years.”
“Among the clients we serve, 95 percent are already employed - so the unemployment rate only tells some of the story,” adds Gonzales. “Often our clients already have two jobs but that is still not enough to support a family. So they look to create small businesses to either supplement or supplant the two jobs they already have.”
Among the highlights in EDA’s report:
• The region remains an attractive place for investment with noticeable increases in sectors connected with computer hardware and software.
• Improved international trade has bolstered activity in related sectors, such as transportation and warehousing.
• Relative affordability has attracted homebuyers and renters to the East Bay from neighboring regions.
“We see considerable growth in small businesses not with fifty or less employees but with five or less employees - this trend will continue into the foreseeable future,” says Gonzales. “We need support across the board - not just for firms with more than fifty employees; most job growth will be from small businesses with five or less.”
While most people focus on the employment picture, a growing number of people are realizing the ultimate solution for prosperity – owning their own business, no matter how small.
“In the new economy that is evolving everyone becomes an entrepreneur by necessity - this is also true for young professionals with advanced degrees,” adds Gonzales. For low income families, creating their own businesses is often the only way they can hope to generate revenue, build assets, and create wealth.”