Solano County polishes ‘business first’ message

GARY QUACKENBUSH

FOR NORTH BAY BUSINESS JOURNAL | February 23, 2017, 9:27AM

02/23/2017

Solano’s economic pulse

Contributors to gross county product

·        Advanced-materials manufacturing, 24.9 percent

·        Travis Air Force Base (military and civilian), 10 percent

·        Health care, 9.7 percent

·        Real Estate, 8.9 percent

·        Retail trade, 6.6 percent

·        Construction, 5.1 percent

·        Professional services, 4.7 percent

·        Wholesale trade, 4.6 percent

·        Logistics, 3.3 percent

·        Financial and insurance services, 3.3 percent

·        Agriculture, 1.1 percent

·        Information services, 1.1 percent

·        Other, 16.8 percent

Contributors to new jobs, 2016–2024

·        Advanced-materials cluster, 2.9 percent growth, 2,117 more jobs

·        Logistics, 5.6 percent, 1,189

·        Biotechnology and bomedical, 2.6 percent, 588

·        Food and beverage industry, 2.3 percent, 463

·        Countywide, 2.9 percent, 2,117

Source: Economic Forensics and Analytics

Key industries and a military base powering $19.6 billion in annual gross regional product, Solano County is increasing promotion of itself as a premier business location.

Funded by a $453,000 grant from the federal Office of Economic Adjustment and local funding from the county of Solano, the “Moving Forward Solano” effort is “an inclusive partnership of public–private stakeholders led by the county and the Solano EDC to develop a forward-thinking strategy based on extensive research, data and engagement,” said Sandy Person, president of the Solano Economic Development Corporation.

“Business first” is a key message of the campaign’s next phase.

It includes a robust website, serving as a one-stop information clearinghouse that will assist businesses, local governments’ brokers and site selectors. It is set to provide economic and demographic data, and dynamic mapping showcasing unique market locations, all county business parks, mega-sites and specific properties.

Tools and services will be offered to cities, including the identification of public–public and public–private financing opportunities that can be used to invest in infrastructure to attract economic activity.

Person noted that Solano is strategically located 16 miles from Napa, 22 miles from Sacramento, 25 miles from the Port of Oakland, 31 miles from San Francisco and about an hour from San Jose. The county has 2.8 million workers in the labor market, including 168,000 who commute into and out of the area, as well as 6,700 acres of land available for businesses.

Economist Robert Eyler, Ph.D., president of Petaluma-based Economic Forensics and Analytics and professor of economics at Sonoma State University, is part of a four-member consulting team for the project.

“Solano County had a strong 2016 with personal income and wages rising fueled by continued growth in the wake of the recession,” Eyler said. “With regional housing and commercial real estate prices increasing, the question is how can Solano gain from some of the exodus as workers migrate to this county from other areas? Other questions include how to identify the businesses that will come to Solano, how supply chains will be affected and the ability of the county to plan around these variables.”

Eyler said Solano has specific industries that drive its economy. A wide array of advanced-materials manufacturing, including biotechnology and petrochemical firms, is the largest private-sector contributor, representing 24.9 percent of the county’s gross product.

This large business category is followed by Travis Air Force Base, split between military and civilian workers on the base, that generates about 10 percent of the economy; health care, including for profit and nonprofit hospitals, health organizations and outpatient care facilities, 9.7 percent; Real Estate and Rental Businesses, 8.9 percent; Retail Trade, 6.6 percent; Construction, 5.1 percent; Professional Services, 4.7 percent; Wholesale Trade, 4.6 percent; Logistics and Financial/Insurance Services with 3.3 percent each; along with Agriculture and Information Services with 1.1 percent each. All other services collectively account for the remaining 16.8 percent of Solano County’s gross product.

“Retail and construction were larger contributors before 2010 and are likely to become a larger part of the Solano County economy as the recovery continues,” Eyler said.

He said five industry groups act as a foundation for driving the regional economy due to their ability to offer higher than average wages, an export market focus, relatively large multiplier effects, their “industry fit” and niche in Solano County as well as their location quotient.

Solano’s economic pulse

Contributors to gross county product

·        Advanced-materials manufacturing, 24.9 percent

·        Travis Air Force Base (military and civilian), 10 percent

·        Health care, 9.7 percent

·        Real Estate, 8.9 percent

·        Retail trade, 6.6 percent

·        Construction, 5.1 percent

·        Professional services, 4.7 percent

·        Wholesale trade, 4.6 percent

·        Logistics, 3.3 percent

·        Financial and insurance services, 3.3 percent

·        Agriculture, 1.1 percent

·        Information services, 1.1 percent

·        Other, 16.8 percent

Contributors to new jobs, 2016–2024

·        Advanced-materials cluster, 2.9 percent growth, 2,117 more jobs

·        Logistics, 5.6 percent, 1,189

·        Biotechnology and bomedical, 2.6 percent, 588

·        Food and beverage industry, 2.3 percent, 463

·        Countywide, 2.9 percent, 2,117

Source: Economic Forensics and Analytics

Since the close of the Great Recession, the Solano advanced-materials sector has experienced the greatest growth, expanding from 189 firms in 2010 to 210 in 2016. Advanced materials includes machine manufacturing, repair and maintenance; engineering and scientific services; waste management; and some logistics.

Examples of advanced-materials firms are Fairfield’s Tencate Advanced Composites, which manufactures aerospace and industrial materials, and Dixon’s Powerscreen, manufacturing equipment for mining, quarrying, crushing, screening, demolition and recycling.

Some representative businesses in the food and beverage group include Caymus Winery, Vallejo’s Craft Brewery and Wine, Critelli, Formaggi Di Ferrante, Gold Star Foods and Anheuser-Busch InBev.

Napa Valley-based Caymus plans expansion of its Fairfield bottling plant and upgrades to fermentation tanks and grape processing. Critelli fine olive oils and vinegars just opened a Fairfield facility with tasting of wine and its Sonoma Harvest Food brand. Formaggi Di Ferrante makes fine Italian cheeses in Fairfield and is adding organic products with a tasting room and restaurant. Gold Star Foods, Inc., in Dixon prepares K–12 school lunches each day for 300 school districts in Northern and Central California. Anheuser-Busch InBev is expanding its Fairfield brewery.

The logistics sector has firms such as Acorn Paper Products, which recently moved its distribution center to Vacaville from Napa Valley, and Vacaville’s ACX Global, an exporter of alfalfa hay, forage and roughage products.

“Looking ahead, labor market projections from the EDD and our own EFA calculations indicate that the advanced-materials cluster in Solano County will see 2.9 percent growth between 2016 and 2024, adding 2,117 more workers,” Eyler said.

In the same eight-year period, the food and beverage industry could grow by 2.3 percent with 463 new positions; biotech/biomed by 2.6 percent, with 588 more employees; and logistics could expand by 5.6 percent, adding 1,189 new workers.”

Gary Quackenbush is a special correspondent for North Bay Business Journal.

SOLANO COUNTY TO UNVEIL STRATEGY FOR NEW GROWTH & INVESTMENT MARCH 10, 2017

The County of Solano and Solano Economic Development Corporation will announce details of the new forward-thinking economic development strategy Solano Means Business at 8 am, March 10th at the Hilton Garden Inn, 2200 Gateway Court, Fairfield.

The focus of Solano Means Business is to grow the economy through the creation of new jobs and the infusion of new investment. On March 10^th, experts will share why this strategy, why now, and outline steps on how Solano County can get on the radar screen of those firms looking scale their business in a premier location.   A key component of the presentation focuses on how “shared purpose” and “mission focused” drives economic growth through collaboration.

“The private sector and local government come together — at long last — with a shared vision to attract new employers, retain who we have, create a workforce of the future. For health care, it’s essential to let everyone know advanced medicine is delivered here. Not just for patients, but for the best and brightest who want to come here to live, play and work”. – Steve Huddleston, NorthBay HealthCare
The one hour presentation features a panel of speakers including:

Dr. Robert Eyler – President, Economic Forensics & Analytics

Audrey Taylor – President, Chabin Concepts, Inc.

Mario Giuliani – Acting Deputy City Manager & Economic Development Manager, City of Benicia

Erin Hannigan – Vice-Chairwoman, Supervisor District 1, County of Solano

Topics will include Solano’s economy, business sectors that drive Solano’s $19.65 billon economy, the strategic framework created to achieve Solano’s economic development goals, and perspectives from both the public and private sectors.  Time is scheduled for Q&A.

Attendees can expect to leave with a better understanding of Solano County’s assets, opportunities and a path forward for new jobs and investments as well as ways in which they can become involved. 

Cost to attend the event is $27 for Solano EDC members, $37 for non-members.  Registration is available online or call 707-864-1855 or email pat@solanoedc.org.

##

Solano Means Business is an economic development campaign of the County of Solano and Solano Economic Development Corporation. Its purpose is to focus on Solano Means Business and its Business First commitment recognizing the role business plays in driving the local economy.  With strengths of location, industry and workforce, Solano County is the premier location for traded-sector industries looking to scale outside the Bay Area while remaining close.  Value priced industrial space, high employee productivity ranking, a large shared workforce and outstanding local education focused on careers, affordable housing and a healthy environment position Solano County as an outstanding location for work/life balance. Please visit www.MovingSolanoForwardII.com  for more information on the project.

Solano EDC announces new directors

By Daily Republic staff From page B8 | January 25, 2017                                                                

FAIRFIELD — Newly appointed Solano County Superintendent of Schools Lisette Estrella-Henderson is one of seven new directors on the Solano Economic Development Corporation board, which also includes two area councilmen. Dixon Mayor Thom Bogue and Rio Vista Vice Mayor Ronald Kott were also added to the organization’s 45-member board of directors, which is a mix of private sector and public officials.

Also new to the board are Touro University Chief Executive Officer Shelley Berkely; Brian Bliek, plant manager of Simonton Windows; Jeff Donlevy, division manager of Republic Services; and Sheila McCabe, executive director of administrative services and community engagement for the Fairfield-Suisun School District.

Reach the Daily Republic newsroom at 425-4646.

Bank executive takes over as Solano EDC chairwoman

FAIRFIELD — Solano Economic Development Corporation CEO Sandy Person joked at the group’s annual luncheon this week about “power and money” being a concept women truly understand.

Shortly after that, Louise A. Walker, president and chief executive officer of First Northern Community Bancorp and First Northern Bank, was introduced as the new chairwoman of the Solano County organization.

Walker, a Dixon resident, has held her current position since Jan. 1, 2011, and has been with First Northern since 1979.

Walker will help lead the economic development organization into the implementation stage of the branding and marketing program, Moving Solano Forward, with a Feb. 15 announcement that Person said will “knock the socks” off everyone, but offered no details at Thursday’s luncheon.

“We’re unveiling the final presentation of Moving Solano Forward,” Person said Friday, specifically noting a marketing video about which she is particularly proud.

“Part of this process is how do we position ourselves, what are our assets, in the global market,” Person said.

“We are really trying to send a message that it’s business first (in Solano County),” Walker said in a phone interview Friday.

“I think it is really focused on job growth in the county. It is really focused on retaining existing business and attracting new ones,” Walker said.

It will take even stronger private-public collaboration for Moving Solano Forward to reach its goals, Walker said.

Moving Solano Forward has been a two-year, two-phase effort funded by a $453,000 Economic Adjustment Grant through the U.S. Department of Defense, with the Solano Economic Development Corporation as the primary agency, although Person describes it as a public-private collaboration.
“There were a lot of things that impressed me, and, yes, there were some things that surprised me,” Person said.

Person, however, disagrees with Supervisor Jim Spering’s recent statement that the marketing program and branding cannot include “Solano” because of what he describes as negative impressions attached to the name.

Person said Spering is knowledgeable about regional matters, but said, “we’re not losing Solano. I respectfully disagree with Supervisor Spering.”

Person said she believes the work to retain and expand existing business while recruiting new industry to the county is not about overcoming any kind of negative impressions.

“I think we have to overcome a lack of awareness,” she said.

In addition to Walker taking over as chairwoman of the group, which has about 100 private-sector members plus representatives from public agencies, several new directors were seated. The full list was not immediately available.

Walker replaces Steve Huddleston, who is vice president of public affairs for NorthBay Healthcare.

Reach Todd R. Hansen at 427-6932 or thansen@dailyrepublic.net.

Air Force general shares AMC’s needs with Solano leaders

By Ian Thompson From page A1 | January 20, 2017

FAIRFIELD — The Air Force faces challenging times to retain and keep talented airmen, expand a shrunken service to meet unrelenting world challenges and stay ahead of foreign militaries who are challenging American military dominance.

That was what Gen. Carlton D. Everhart II, Air Mobility Command commander, told the 34th annual meeting of the Solano Economic Development Corporation on Thursday.

Everhart began his talk with the latest example of Air Mobility Command’s global reach – the KC-135 air tanker support that made a Wednesday night strike on two Islamic State group camps in Libya possible.

Air Mobility Command tankers refueled the B-2 bombers that flew a 34-hour round trip from Whitman Air Force Base, Missouri, to hammer the terrorist camps.

Everhart used it as an example of Air Mobility Command’s capability to support American commitments around the world to “take the fight to foreign soil to make sure every war is an away game.”

He went on to point out other examples that ranged from Travis’ recent role in running an airfield crucial to the retaking of Mosul in Iraq and supporting NATO exercises to humanitarian missions.

Everhart said he was proud of relationship the community surrounding Travis had with the base.

“One of the most important aspects of our partnership is working together to do the right thing for our airmen, our communities and our national defense,” Everhart said.

Everhart said his own foremost challenge is tackling the problem of retaining and recruiting talented airmen in a growing economy.

He said Air Mobility Command faces a growing shortage of pilots, maintainers, cyber systems operators and aerial medical evacuation personnel. He stressed that more needs to be done to get young talent to consider the military on graduation.

“Help me reach out to these young people,” Everhart asked the room of local community leaders. “I could use that talent. We need your help to highlight the opportunities available through military service.”

Another challenge has been the shrinkage of Air Mobility Command despite what Everhart described as unrelenting demands.

“Five years ago, AMC flew about 1,200 sorties every day,” Everhart said. “Today, we fly about half that number, not because of demand, but because we no longer have that capacity.”

In that time, 10 squadrons were shut down, the service’s C-5 fleet has been cut from 112 aircraft to 52 and the refueling fleet has dropped from 600 aircraft to 455.

This was mainly because of the federal Budget Control Act and sequestration.

“You all felt the impact here when 1,500 civilian airmen were furloughed for 22 days in 2013, and flying hours were cut by 18 percent,” Everhart said.

Ongoing budget problems have eroded the service’s ability to plan effectively and Everhart warned that such budget challenges could eventually threaten mobility programs such as the KC-46 program.

Everhart said the Air Force is the smallest it’s been in its history.

“We are not only smaller, but we’ve also struggled to modernize and outpace out adversaries when it comes to capabilities,” Everhart said.

Moving to another challenge, he said the stunning success of aerial dominance in Desert Storm in 1991 prompted other major powers to take note and spend the next two decades working out countermeasures using advancing technology.

“Today, middle powers possess the resources, technology and know-how to challenge control of the air, and our military has struggled to keep pace,” Everhart said.

He said it’s one of the reasons that the Air Force has invested in advanced airframes such as the F-22, the F-35 and the B-21.

Air Mobility Command is also working to upgrade and improve its own fleet to make it more flexible, durable and far-reaching – for example the KC-46, which Travis is now slated to get, and the C-5M.

“However, these airframes do not possess the capability to operate in high-threat denied environments,” Everhart said of the C-5M and KC-46. “So we have plenty of work ahead to guarantee rapid global access to our military.”

Everhart said one had only to look west to the South China Sea “where we’ve seen a buildup of the kinds of technology I’m talking about.”

Despite the challenges, Everhart closed his talk on an optimistic note.

“Make no doubt about it, despite all challenges, we are the world’s greatest air, space and cyber force,” he said.

The talk before members of the Solano Economic Development Corporation was just one of Everhart’s stops here.

Rep. John Garamendi, D-Walnut Grove, met Tuesday with Everhart at Travis Air Force Base to talk about the KC-46A air refueling tanker that’s scheduled to come to the Fairfield base.

“General Everhart and I had a good conversation on the next steps to ensure a smooth transition,” Garamendi said in a press release. “Solano County is lucky to have so many leaders in military and civilian life focused on Travis’ continued success.”

Travis is slated to get 24 KC-46A aircraft. A routine environmental review will be completed by the summer of 2018, with the first of the KC-46s scheduled to arrive in 2020.

Reach Ian Thompson at 427-6976 or ithompson@dailyrepublic.net. Follow him on Twitter at www.twitter.com/ithompsondr.

SF Fed executive delivers positive economic forecast

By Todd R. Hansen From page A1 | January 20, 2017

FAIRFIELD — The top executive of the Federal Reserve Bank of San Francisco told a gathering of business and government leaders Thursday that the economy is healthy and the Fed’s monetary policy focus has changed from short-term recovery to long-term growth and stability.

“It’s more about getting the economy on a consistent pattern,” said John Williams, guiding his left hand as if following an upward trend on a chart.

He said he expects the gross national product to increase by about 2 percent in 2017, and because of the changing demographics of the labor force, he also expects productivity growth to maintain a slower pace than historical levels.

Williams was one of two keynote speakers at the 34th annual Solano Economic Development Corporation luncheon meeting at the Hilton Garden Inn in Fairfield. The other speaker was Gen. Carlton D. Everhart II, commander of Air Mobility Command out of Scott Air Force Base, Illinois. The 60th Air Mobility Wing at Travis Air Force Base is under his authority.

The four-star general also touched on economic matters, noting the estimated $1.6 billion annual impact Travis Air Force Base has on the regional economy and the $15 billion economy his command generates globally.

Williams talked at length about the national labor force, noting that is one of the critical pieces in the Fed’s annual goals.

He said realistically, the country has reached its maximum employment level, with an unemployment rate of about 4.7 percent. He also said that because of the number of retiring baby boomers in an aging society, and the lower birth rate, the country needs to create only about 80,000 new jobs each month instead of the 150,000 in the recent past.

The other critical piece in the Fed’s goals is price stability. Williams said that is why interest rates have been raised twice in recent months, and that he fully expects inflation to be maintained at what he described as a healthy 2 percent. The price of oil, which have increased in recent months, is a big part of that equation.

He said he wants to see a Goldilocks economy, “not too hot and not too cold.”

Williams said the greatest threats to and uncertainties about the economy remain the usual suspects of economic pressures from Europe, Asia and shifting oil prices, and said the challenges will have far less to do with a new administration and Congress.

“We always have uncertainties when making monetary policy,” Williams said.

The shift to a stiffer regulatory posture in the finance sectors will help in that regard, he said.

Asked what the effect of income inequality might have on the economy, Williams did point out risks if that gap continues to grow. He noted the negative impact it can have on consumer spending. More importantly, he suggested, is the effect it has on the morale of those who can no longer achieve the American dream.

“What we know is for people to live the American dream, it is much harder if you start three steps back,” Williams said.

From his perspective, he said it is critical to invest in education to give the next generations a step up – and that starts before kindergarten and continues through K-12.

“And that makes me worry about the investments we are making in the youth today,” Williams said.

Reach Todd R. Hansen at 427-6932 or thansen@dailyrepublic.net.

San Francisco Fed: GDP growth 1.5%-1.7% in 2017

GARY QUACKENBUSH

FOR NORTH BAY BUSINESS JOURNAL | January 19, 2017, 5:27PM

FAIRFIELD — “The U.S. economy is healthy and the financial system of the U.S. is much more resilient today than it was prior to the Great Recession that hit bottom in 2008,” said John C. Williams, president and CEO of the Federal Reserve Bank of San Francisco at a Solano County economic conference today.

He was the keynote speaker before more than 200 county business leaders and public officials at Solano Economic Development Corporation’s 34th annual meeting. Fed monetary policy has two key goals — to maximize employment and achieve price stability to avoid inflation, Williams said. The ideal situation would be to maintain an unemployment rate between 4.75 percent and 5 percent — since full employment is not practical with some people between jobs, students who are not working, etc. Today’s 4.7 percent rate has achieved the first goal with some 140 million people employed in the workforce.

He said in 2009 the unemployment rate nationally was 10 percent. Back then, the unemployment rate in in the Solano area was 12.5 percent. “Since then we’ve added 15.5 million jobs, and the local unemployment rate in this county is down to 5 percent,” he said.

Williams noted that the U.S. added 180,000 jobs a month on average during 2016, but that the new norm for job creation moving forward will probably be in the 80,000 jobs per month range.

He observed that national gross domestic product growth in 2016 was about 2 percent and sees this rate remaining about the same, or perhaps a little lower, in 2017. Williams believes average GDP growth could be between 1.5 percent and 1.75 percent this year and into 2018.

“There are a lot of uncertainties when it comes to setting the Federal Reserve System’s central bank U.S. funds base rate, currently at 0.75 percent after two increases,” he said. The last increase occurred in December.

According to Williams, to achieve the price-stability objective involves balancing future upside and downside uncertainties when setting monetary policy.

“Inflation has been a big issue with the goal of keeping it between 1.75 percent and 2 percent year over year — which we have done,” he said.

While more incremental increases are anticipated over the next year or so, he believes it is time to move toward a long-term, neutral monetary policy that will not stall a recovery but rather continue to expand the economy as long as possible.

However, he cautioned that when an economic recovery lasts for a long time, market forces can lead to a downturn. For example, oil and housing prices are rising dramatically again. While history shows that the U.S. has had a recession about once every four years, the current recovery is one of the longest on record, with almost seven years of slow economic growth. One variable fueling the rebound is the gradual nature of the ongoing turnaround.

At the same time, Williams said there is a huge difference between today’s economy and factors that led to the 2007–2009 “great recession.”

“Banks are now required to keep higher reserves, and have more liquidity,” he said. “There is also a greater understanding of the interrelationships between the various segments that comprise the financial infrastructure of our country.”

Sponsored Links The Solano EDC annual meeting also featured at presentation by four-star Gen. Carlton D. Everhart II, commander of the Air Mobility Command that includes Travis Air Force Base in Fairfield. He recapped the mission of this command and the contribution made by the local base, its 24,000 uniformed personnel and dependents, to the regional economy.

Sandy Person, president of the Solano EDC, provided an overview of economic development highlights leading to a total gross regional product of $19.65 billion. Here are the economic contributions from just the top five Solano County industry sectors: Food and beverage ($0.81 billion), biotech and biomed ($1.28 billion), logistics ($1.47 billion), Travis AFB ($1.69 billion) and advanced materials ($2.23 billion).

Link to original article found in the North Bay Business Journal.