1. John Husing, Ph.D. Economics & Politics, Inc. Chief Economist, IEEP Inland Empire Economic Growth... Building An Expansion

3. After Losing 8.71 Million Jobs … U.S. Jobs All The Way Back & More

4. Value of the Dollar Will Spur Imports

5. Interest Rates Remain Benign Fed Likely To Make Two.0025 Move: September & December

7. U.S. & CA Unemployment History Great Recession 5.5% 6.4%

8. California Job Gains/Losses 2008-2010 -1,066,400 Great Recession 2011-2015e +1,942,492 2015 Up +879,733 Recovery

10. Where is the IE in its Job History? 2008-2010 -142,933 2011-2015 +192,807 Change +49,873

11. Inland Empire Growth was the 2 nd Largest Absolute Job Gain in California in 2014!

12. Inland Empire Unemployment Down

13. Primary Tier Secondary Tier Economic Development … Increase The Economic Base! How Regional Economies Work

14. Logistics Flow of Goods

15. Value of the Dollar Will Spur Imports

16. Strong Industrial Space Absorption 17,110,027 SF

17. Industrial Vacancy Rate 4.1%

18. Industrial Construction

19. Port Container Volumes -15.0% -2.3%

20. Fulfillment Centers

21. E-Commerce Growth Rates Year Over Year by Quarter

22. Manufacturing: Should Be A Major Growth Source

23. California Manufacturing Job Growth Just 3.5% of U.S. Growth

25. Regulatory Instability Destroying CA Blue Collar Sectors

26. Nestle to close Valley food Plant 360 California jobs will be lost as Hot Pockets production goes to Kentucky “In higher skilled industries they are hesitant to move because the labor force is not available anywhere. But lower- skilled one, they have an easier time leaving. That trend in California has the potential to leave lower-educated workers behind. BUSINESS Thursday, August 7, 2014 LATIMES.COM/BUSINESS ::

27. d. Spreads of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased) All RespondentsLarge BanksOther Banks BanksPercentBanksPercentBanksPercent Tightened considerably000000 Tightened somewhat22.912.713 Remained basically unchanged4158.62259.51957.6 Eased somewhat2738.61437.81339.4 Eased considerably000000 Total701003710033100 Commercial Industrial Loans Under $50 Million

28. Blue Collar Job Growth! Median Pay $51,923 Median Pay $49,391 Median Pay $43,911

29. Clash Reducing Poverty in a Marginally Educated Area Next Iteration in Clean Air

30. Marginally Educated Share of Adults

31. Poverty

32. Causes of Public Health Difficulties 1.Socio-Economics 40% 2.Population’s Health Behaviors30% 3.Access to Medical Care20% 4.Environmental 10% Source: Different Perspectives For Assigning Weights To Determinants of Health, University of Wisconsin, Public Health Institute, 2010 90%

33. PM 2.5: Diesel Pollution

34. EPA-CARB-AQMD Standards Eliminating Ability of Blue Collar Sectors to Grow: Manufacturing (Not Growing) Logistics (Prime New Target) Construction (NIMBY’s Love CEQA) Blue Collar Sector Growth Needed To Allow Marginally Educated To Access the Middle Class Poverty is Exacerbated as a Result!

35. Health Effects of 2007 Compliant Diesel Truck Engines

36. HEI Releases Final Report CARB & EPA Appear To Be Ignoring Results of a Study They Helped Fund. AQMD Denies It Affects Their Positions …

37. Strategy 1.Congress & Legislature To Look Into Why EPA & CARB Have Basically Hidden The Health Effects Study 2.Look To Democrats In Low Income Districts To Work To Change Their Party’s Direction In CA Legislature 3.AB 1286

38. Office Market

39. Office Absorption Follows Higher-End Workers & Residential Construction Activity High-End Jobs Follow Workers into the Area

40. Higher End Homes $585,199 $427,095 $484,914 UPLAND EASTVALE $468,269 $465,778 $459,000 CORONA $429,667 TEMECULA $344,095$393,603 $568,700 Claremont

41. Migration of Educated Workers

42. Construction Finally Starting To Come Back!

43. Office Vacancy Rates Improving But Still High 15.3% 24.0%

44. High-End Job Growth Median Pay $55,308 Median Pay $65,904

45. Review 2015 Better Than 2014 Logistics Strong Manufacturing Modest Construction Returning Health Care Set To Take-Off Office Sectors Modest Return Unemployment Down to 6.4% Growth Strong 49,800 Jobs Above Pre-Recession

46. www.johnhusing.com