2. ORANGE COUNTY BUSINESS COUNCIL Unemployment Rate Comparisons Source: California EDD Orange County’s unemployment has been under 7 percent since February 2013. Unemployment at the county, state, and national levels has fallen across the board for 2013.

3. ORANGE COUNTY BUSINESS COUNCIL Cal State University Fullerton: Business Expectations Index Cal State University Fullerton: Business Expectations Index Source: Cal State University Fullerton An index rating over 50 indicates higher confidence in the OC economy from executives. The Q3 2013 score of 93.9 is the highest rating achieved since July 2004.

4. ORANGE COUNTY BUSINESS COUNCIL Chapman University: Orange County Manufacturing Composite Employment Index Source: Chapman University An index rating above 50 indicates expansion of the manufacturing industry in Orange County. Orange County has maintained a manufacturing index of above 50 for the past four years.

5. ORANGE COUNTY BUSINESS COUNCIL Chapman University: California Consumer Sentiment Index Chapman University: California Consumer Sentiment Index Source: Chapman University An index rating above 100 indicates a positive consumer outlook. Consumer sentiment has been above 90 since Q3 2012, but has not surpassed 100 in 2013 for the state.

6. ORANGE COUNTY BUSINESS COUNCIL Chapman University: Current and Future Consumer Sentiment Index Chapman University: Current and Future Consumer Sentiment Index Source: Chapman University An index above 100 indicates a positive outlook for current or future conditions in Orange County. Though the future conditions index fell below 100 in Q3 2013, the current conditions index has been trending upward since its last significant low in Q4 2011.

7. ORANGE COUNTY BUSINESS COUNCIL Chapman University: California Employment Indicator Index Chapman University: California Employment Indicator Index Source: Chapman University Variable used in this index include lagged real GDP, exports, construction spending, and the S&P 500. State employment is relatively improving for Q4 2013.

8. ORANGE COUNTY BUSINESS COUNCIL Chapman University: Employment Indicator Index & Payroll Employment Chapman University: Employment Indicator Index & Payroll Employment Source: Chapman University This index demonstrates the Employment Index’s correlation with payroll employment for the state. Currently, payroll employment is appreciating in-line and slightly ahead of the Employment Index.

9. Industry and Occupation Trends

10. ORANGE COUNTY BUSINESS COUNCIL Orange County Monthly Industry Trends, 2007-2013 Source: California EDD Jun-13Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13 Mining and Logging400500 400 Construction76,00077,70080,40082,60083,30082,70084,700 Durable Goods117,400117,200117,500117,300118,400119,000119,300 Nondurable Goods43,00044,00043,80043,50042,90043,60043,000 Wholesale Trade78,90079,30079,90079,10080,00080,40080,900 Retail Trade139,400140,400140,200139,900141,800148,800149,900 Transportation, Warehousing & Utilities27,60027,50027,700 27,60027,80028,300 Information24,400 24,60024,700 Financial Activities113,800114,500115,100114,500114,400113,100113,600 Professional & Business Services257,200257,700262,200262,000266,600266,800267,900 Educational & Health Services168,700164,900164,700168,300169,300170,500170,000 Leisure & Hospitality189,700190,900192,100190,500189,300187,900187,600 Other Services45,30045,80045,00044,40045,00044,90044,800 Government152,100139,600134,300138,700144,500146,900146,000

11. ORANGE COUNTY BUSINESS COUNCIL Average Salaries of Fastest Growing Occupations By Absolute Job Growth Average Salaries of Fastest Growing Occupations By Absolute Job Growth Source: California EDD Registered Nurses lead in salaries by a wide margin, with Office Clerks a distant second place.

12. ORANGE COUNTY BUSINESS COUNCIL Average Salaries of Fastest Growing Occupations By Percent Job Growth Average Salaries of Fastest Growing Occupations By Percent Job Growth Source: California EDD Biomedical Engineers lead both in terms of employment growth and earning potential. Other technical professions projected to grow include Logisticians and Audiologists.

13. ORANGE COUNTY BUSINESS COUNCIL Industry Cluster Drivers Fast Facts Orange County’s Cross-Cutting Clusters: International Trade Creativity Information Technology Green Technology Three Largest Clusters by Employment (2012): Tourism Manufacturing Hotels and Restaurants Two Greatest Exports by Industry Sector (2011): Computer & Electronic Products Transportation Equipment

14. ORANGE COUNTY BUSINESS COUNCIL Orange County Cluster Employment, 2008-2012 Source: OCBC analysis of California Employment Development Department QCEW dataset Tourism, Manufacturing, Hospitality, and Healthcare have all seen significant recovery since the recession.

15. ORANGE COUNTY BUSINESS COUNCIL Orange County Cross-Cutting Cluster Employment, 2012 Orange County Cross-Cutting Cluster Employment, 2012 Sources: OCBC Analysis of California EDD Data, OTIS Report, Next10, Los Angeles Economic Development Corporation The four cross-cutting clusters are key economic drivers for Orange County. Though the vast majority of industries have an International Trade component, Creativity and Information Technology have their greatest impact on Business Services, one of Orange County’s most important clusters for innovation.

16. ORANGE COUNTY BUSINESS COUNCIL Average Salaries Within Orange County’s Selected Industry Drivers, 2012 Average Salaries Within Orange County’s Selected Industry Drivers, 2012 Source: OCBC analysis of California Employment Development Department data, Otis Report, Next10, and Los Angeles Economic Development Corporation Information Technology salaries fell from 2011 to 2012, but are still the highest overall among compared clusters. Creativity experienced the largest year-over- year increase in annual average salaries.

17. ORANGE COUNTY BUSINESS COUNCIL Orange County Median Home Prices 2003-2013 Source: DataQuick News December 2013 - $570,000 The median home price hit its five-year high in December 2013, after a year of near- constant appreciation.

18. ORANGE COUNTY BUSINESS COUNCIL Orange County Total Housing Permits Per Month Source: U.S. Census Bureau, CenStats November 2013 – 542 Building activity has picked up considerable steam through 2013, with July 2013 marking a five-year high for building permits.

19. ORANGE COUNTY BUSINESS COUNCIL Orange County New Car and Light Truck Registrations Source: Orange County Auto Dealers Association Registrations have been on the rise since January 2012, and have maintained relatively steady increases through 2013.

20. Orange County Industry Cluster Detailed Employment Summaries Orange County Industry Cluster Detailed Employment Summaries

21. ORANGE COUNTY BUSINESS COUNCIL Overview Employment Clusters Reviewed: Business & Professional Services Energy & Environmental FIRE (Finance, Insurance & Real Estate) Construction Healthcare Information Technology Transportation & Logistics Manufacturing Biotechnology Hospitality Data Source: Econovue, 2013

22. ORANGE COUNTY BUSINESS COUNCIL Business & Professional Services Cities Total Employment Irvine54,630 Santa Ana37,642 Costa Mesa31,483 Anaheim29,924 Newport Beach22,323 Orange22,149 Huntington Beach18,132 Garden Grove11,311 Tustin11,200 Fullerton10,273 Cities Employment Concentration Villa Park42.6% Costa Mesa42.3% Aliso Viejo38.7% Tustin35.5% Laguna Hills35.0% Mission Viejo34.4% Laguna Beach34.1% Santa Ana33.9% Yorba Linda33.8% La Habra32.4%

23. ORANGE COUNTY BUSINESS COUNCIL Finance, Insurance & Real Estate Cities Total Employment Irvine27,136 Newport Beach16,633 Santa Ana12,958 Anaheim9,456 Orange7,695 Costa Mesa6,967 Huntington Beach6,391 Brea4,911 Fullerton3,636 Tustin3,613 Cities Employment Concentration Laguna Woods48.2% Newport Beach21.9% Cypress20.4% Villa Park16.2% Laguna Beach15.6% Aliso Viejo14.6% Brea14.5% Mission Viejo13.7% Irvine13.7% La Palma13.3%

24. ORANGE COUNTY BUSINESS COUNCIL Manufacturing Cities Total Employment Irvine48,456 Anaheim29,032 Santa Ana23,599 Huntington Beach17,465 Orange9,324 Garden Grove9,234 Lake Forest9,103 Buena Park8,249 Fullerton7,852 Costa Mesa7,457 Cities Employment Concentration Buena Park33.2% Seal Beach30.2% Lake Forest27.3% Huntington Beach26.6% Irvine24.5% Anaheim23.2% Los Alamitos23.2% Garden Grove22.3% Santa Ana21.2% Brea21.0%

25. ORANGE COUNTY BUSINESS COUNCIL Healthcare Cities Total Employment Orange21,905 Newport Beach13,742 Santa Ana13,065 Irvine11,473 Anaheim11,075 Fullerton9,435 Costa Mesa8,068 Huntington Beach6,810 Mission Viejo6,209 Fountain Valley5,999 Cities Employment Concentration Fountain Valley29.3% Orange25.6% Mission Viejo23.7% Laguna Woods23.0% Fullerton22.9% Laguna Hills21.6% La Palma19.4% Newport Beach18.1% Villa Park17.5% Los Alamitos16.5%

26. ORANGE COUNTY BUSINESS COUNCIL Hospitality Cities Total Employment Anaheim18,064 Irvine12,846 Newport Beach9,695 Santa Ana7,563 Costa Mesa7,412 Huntington Beach7,282 Orange6,211 Buena Park4,497 Fullerton4,143 Garden Grove3,950 Cities Employment Concentration Laguna Beach23.0% Buena Park18.1% La Habra14.6% Anaheim14.5% Newport Beach12.8% Seal Beach11.9% Stanton11.8% Mission Viejo11.7% La Palma11.7% Cypress11.7%

27. ORANGE COUNTY BUSINESS COUNCIL Construction Cities Total Employment Anaheim16,176 Orange10,832 Irvine10,091 Costa Mesa6,959 Santa Ana6,548 Huntington Beach5,153 Brea3,769 Newport Beach3,722 Garden Grove3,141 Fullerton2,696 Cities Employment Concentration Placentia17.6% Stanton15.1% Anaheim13.0% Orange12.6% Los Alamitos12.6% Yorba Linda11.3% Brea11.1% La Habra10.1% Costa Mesa9.4% Villa Park8.9%

28. ORANGE COUNTY BUSINESS COUNCIL Information Technology Cities Total Employment Irvine8,363 Santa Ana4,493 Anaheim3,308 Newport Beach1,903 Tustin1,734 Orange1,605 Costa Mesa1,601 Brea1,450 Huntington Beach1,385 Garden Grove999 Cities Employment Concentration La Palma8.5% Tustin5.5% Los Alamitos5.4% Brea4.3% Cypress4.2% Irvine4.2% Santa Ana4.0% Aliso Viejo3.5% Westminster3.4% Buena Park3.0%