1. Dr. Wallace Walrod, PhD Vice President, Research & Communications Orange County Business Council Orange County Economic Development Overview

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3. 3 World Trade Economic & Business Climate

4. 4 World Trade Economic & Business Climate

5. 5 Tourism & Entertainment Economic & Business Climate

6. High Tech Cluster Diversity

7. 7 2008 Workforce Clusters Business and Professional Services –Management and Administration (sub- cluster) Construction Finance, Insurance, Real Estate Healthcare Information Technology Logistics and Transportation –Transportation (sub- cluster) Manufacturing –Advanced Manufacturing (sub-cluster) Hospitality and Tourism –Hospitality (sub-cluster) Emerging Clusters Biotechnology and Nanotechnology Energy, Environment and Green Technologies

8. Orange County Cluster Employment -- 2007

9. Patent Grants

11. Venture Capital

12. 12 Business Climate Economic & Business Climate Lowest Rank Highest Rank 200-161160-121120-8180-4140-1

13. Rank Educational Attainment 29 Job Growth 64 Cost of Doing Business 184 Overall 92 Business Climate Orange County Ranking by Business Climate Component, 2008

14. Linkage Young Adult Exodus Young adults continue to leave Orange County, likely in search of a lower cost of living elsewhere. Cost of Living Economic & Business Climate Cost of Living Index 2008 Total Index Value San Francisco171.7 San Jose156.6 Orange County155.8 Los Angeles150.1 San Diego139.9 Boston135.6 Seattle122.8 Riverside/San Bernardino119.9 Austin95.0 Dallas90.8

15. 15 Orange County Business Council Core Initiatives Workforce Housing Workforce Development Infrastructure …………….What’s Next?

16. 16 Recent Economic Challenges Orange County’s unemployment rate currently stands at 5.7% in September 2008, up from 4.2% a year ago and 3.4% in 2006 The financial and construction sectors accounted for nearly 2/3rds of job losses in the last year Median home prices are down 28% in the last 12 months

17. 17 How Our Neighbors Have Fared San Diego County’s current unemployment rate is 6.4%, with median home prices down 33%. Orange County has nearly 200,000 more jobs with approximately the same population Los Angeles County’s unemployment rate is 7.8% versus 4.9% a year ago, with median home prices down 35% San Bernardino County’s unemployment rate is 8.5%, Riverside County’s is 9.5%, with median home prices down over 39%

18. 18 OC Has Been Here Before In 1990, Orange County’s unemployment rate stood at 3.5%, rising to 5.3% in 1991, 6.7% in 1992, and peaking at 6.9% in 1993 From then on, the Orange County economic engine began to create jobs, jobs, jobs Beginning in the latter half of 1993, by 1999 Orange County created over 230,000 jobs taking the unemployment rate down to 2.7%

19. Thank You!