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2019-05-07 CC Agenda Packet - Item #19 - Attachment - El Segundo Creative Economy Reportdk� The Creative Economy City of EI Segundo Prepared by Beacon Economics Founded in 2007, Beacon Economics, an LLC and certified Small Business Enterprise (SBE) with the state of California, is an independent research and consulting firm dedicated to delivering accurate, insightful, and objectively -based economic analysis. Leveraging unique proprietary models, vast databases, and sophisticated data processing, the company specializes in services including industry analysis, economic policy analysis, economic impact analysis, and real estate market analysis. Beacon Economics equips its clients with both the data and analysis required to understand the significance of on -the -ground realities and make informed business and policy decisions. cons and Taxonomy Architecture and Related Services This sector captures firms that specialize in architectural services, interior design, landscape design, and drafting services. Composed of five (5) sub sectors Creative Goods and Products Composed of Project Advisors Project Team This sector captures the manufacture, warehouse, import, - � � twelve (12) sub Christopher Thornberg, PhD, Founding Partner Adam J. Fowler, Director of Research = and export of furniture. It also includes textiles mills, china and Sectors Robert Kleinhenz, PhD, Executive Director of Economic Research Alysa Hannon, Manager, Sustainable Growth and Development pottery producers, and industrial designers. Brian Vanderplas, Senior Research Associate Hoyu Chong, Senior Research Associate Entertainment & Digital Media Film and digital media encompass a wide variety of sectors. As Comprised of Acknowledgements QQ film and digital media continue to co -evolve, embracing new and Commissioned by The City of EI Segundo thirty (30) sub innovative activities, film and digital media become increasingly more sectors EI Segundo, a Los Angeles County beach city of almost 17,000 with a considerably larger daytime population, is located on the Santa co -mingled. Major sectors include film, publishers, broadcasting, Monica Bay. With its proximity to major freeways, the 405 and the 105, and bisected by the historic Pacific Coast Highway, EI Segundo is emerging digital media, sound production and recording. ideally situated for both residents and businesses. The City offers all the natural elements of fun and adventure that you'd expect from a beach city. Residents enjoy classic California living with ocean breezes and a healthy outdoor lifestyle EI Segundo balances an ideal business environment with a small town community to provide a high quality of life for its residents and Fashion This sector captures apparel design, manufacturing, and Comprised of eleven (11) sub sectors. employers. There are tree -lined neighborhoods with award winning schools (its high school is an architectural landmark), parks, and wholesaling. Note: Does not include retail sectors. athletic fields. A wealth of thriving dining and retail experiences range from historic Main Street to modern multiplexes. EI Segundo is home to numerous Fortune 500 companies including Chevron, and aerospace giants including Boeing, Raytheon, Lockheed Martin, Northrop Grumman, and The Aerospace Corporation. More information is available at www.elsegundobusiness.com. Fine Arts and Performing Arts Comprised of This sector includes theater and dance companies, art galleries, seven (7) sub Special Thanks to: musical groups, performing arts companies, and museums. sectors Max Yoffe, Big Door; Eva Sweeney, ArtLab21; Jason Haffley, OneNineth Media; Damien Fulton; Jason Haim, Perkins Eastman; Jennifer Cron, eko; Marc Chedhade, Angora Group; Bronwyn Mauldin, LA County Arts Commission; Stephanie Sykes, Academy of Motion Picture Arts and Sciences; Todd Jerry, Marmol Radziner; Joan Weinstein, Getty Foundation The contents of this report are based on information derived from carefully selected sources we believe are reasonable. We do not guarantee its accuracy or completeness and nothing in this document shall be construed to be a representation ofsuch a guarantee. T.bIP� 01 OF CONTENTS 07 Title. Flying or Falling II Artist: John Park Location: Main Street and Pine Avenue 57 `f 9 41 f� z, v J! c000pc00000v Vco*,,o SUMMARY Dvc�rViCloovv TNS CREATIVE INDUSTRIES IN ELSEGUNDO 0 Ob r } t 4 Yl Vt kk y . 41 t 41 z 1 * ti i y ^s w .r 1 � !.VIP Y Ma M ... Aw. .. i t, i. p , nld6 �, ON A Created as a tribute to EI Segundo's status as a major aerospace capital, the AN Spirit of Aerospace Mural stretches more than three stories high and 118 feet A • tt t wide. It was dedicated in the late 1990s and depicts a series of images relating F• ,r �i ��,=,;� to space exploration and the aerospace industry. • Title: Fire Artists: Eric "King Cre8" Walker, Marcus "Mark -7" Ward, and Jose "KEO" Carrillo. Location: Nash Street and EI Segundo Blvd. 0 �S+a b I'l Sh rvie-lylfiS The number of establishments working in the creative industries has been booming at a healthy pace. 2017 averaged 262 firms, or 36% more firms than 2008's average of 192 firms. It should be noted that the creative industries are constantly changing and innovating and therefore the number of establishments does not stay static throughout a given year. 2017 has proved to be a fruitful year in terms of growth in the number of establishments, adding 31 firms from 245 in the end of first quarter of 2017 to 276 in the fourth quarter of 2017. This represents a 13% increase in the number of firms working in the creative economy within the year. Establishments in Creative Economy, City of EI Segundo, 2008 vs. 2017 Figure 1.1 300 250 200 150 M 50 n I I I I Q1 Q2 Q3 Q4 ■ 2008 ■ 2017 Source: California Employment Development Department; Analysis by Beacon Economics By comparison, 2008 added just 11 establishments (+6%) from the first quarter to the fourth quarter. In the City of EI Segundo, slightly over three out of four establishments in the creative industries fall under the Entertainment & Digital Media creative sector. As such, Entertainment & Digital Media also account for the lion's share of growth (57 out of 69) in establishments. Creative Goods and Products, Architecture and Related Services, and Fine Arts and Performing Arts each have registered increases in the number of firms between 2008 and 2017 There were 12 establishments in Fashion in 2017, down one firm from 2008. A plausible reason for the dip in Fashion establishments is that a handful of these firms engage primarily in apparel manufacturing. Since apparel manufacturing is an especially margin - sensitive industry, meaning that slight changes in the cost of certain inputs can affect the viability of business location in certain regions. 12 Number of Establishment Gains by Creative Sector, City of EI Segundo, 2008 vs. 2017 Figure 1.2 300 250 200 150 K13 50 9 2008 2017 ■ Architecture and Related Services ■ Creative Goods and Products ■ Entertainment & Digital Media ■ Fashion ■ Fine Arts and Performing Arts Source: California Employment Development Department; Analysis by Beacon Economics Compared to Los Angeles County and California, EI Segundo had performed fairly well. EI Segundo's 36% overall growth in establishments is about triple the pace of Los Angeles County (+12%) and California (+10%). In addition, while Los Angeles County has registered somewhat decent growth in the number of establishments in Architecture and Related Services (+7%), Entertainment & Digital Media (+22%), and Fine Arts and Performing Arts (+7%), the number of establishment in these creative sectors in EI Segundo have grown leaps and bounds - by 13%,39%, and 78%, respectively, in EI Segundo Both Los Angeles County and California have seen more Creative Goods and Products firms leaving than entering, which is not surprising given that these are manufacturing companies, which have been on a continuous decline notjust within Los Angeles County or California but also nationwide. However, the number of establishments in Creative Goods and Products actually grew 50% in EI Segundo, or a net gain of nine firms. This is an impressive achievement and speaks volume to the City's unique competitive advantage. Establishment% Growth by Creative Sector, City of EI Segundo vs. Los Angeles County and California Figure 1.3 Architecture and Related Services Creative Goods and Products Entertainment & Digital Media Fashion Fine Arts and Performing Arts Total 20% ■ EI Segundo 0% 20% 40% 60% ■ Los Angeles County ■ California 80% 100% Source: California Employment Development Department and U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW); Analysis by Beacon Economics 15 14 AA On left, Tit On right, Title: "Madre" Artist: Tristan Eaton Location: Grand Ave. (between Continental Boulevard and Nash Street) 6,300 6,200 6,100 6,000 5,900 ' 5,800 5,700 5,600 5,500 Jan mplo ny►evI In 2017, about 5,900 workers were employed in EI Segundo's creative industries on average. While this is 3.7% below 2008's 6,100 workers, the dip is less than that of Los Angeles County's (49%). Again, the creative industries are constantly changing and innovating, therefore, the number of professionals employed in these industries fluctuate throughout a given year. In both 2008 and 2017, the first three months tend to be slowest season, employing fewer workers than the rest of the year. Employment plateaus in the middle of the year, then levels off in August and September, and peaks in the last three months of the year. Feb Mar Apr May Employment in Creative Economy, Total all Creative Industries, City of EI Segundo, 2008 vs 2017, by Month Figure 1.4 Source: California Employment Development Department; Analysis by Beacon Economics Note: Figures excludes proprietors and the self-employed. Jun Such overall trends reflect the cyclical nature of the creative economy. For example, a studio would bring on workers temporarily in anticipation of the busier season and then lay them Jul Aug off at the beginning of the next year. Indeed, employment trends in both Creative Goods and Products as well as Entertainment & Digital Media were similar in 2017: lowest and unchanged from Sep 2008 2017 Oct January through March, gradual increase until June and July, slightly tapering off in subsequent months, and finally peaking in December. Nov Dec 17 18 Employment by Month by Creative Sector, City of EI Segundo, 2017, Indexed to January 2017 Figure 1.5 108 106 104 102 100 98 96 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Creative Goods and Products Entertainment & Digital Media Other Creative Sectors Source: California Employment Development Department; Analysis by Beacon Economics Note: Figures excludes proprietors and the self-employed. Other creative sectors include Architecture and Related Services, Fashion, and Fine Arts and Performing Arts since these creative sectors make up less than 10% of the City's total creative employment. Entertainment & Digital Media and Creative Goods and Products are the most dominant creative sectors in EI Segundo, comprising 55% and 39% of the City's total creative industry employment, respectively. Architecture and Related Services and Fashion each make up 3% of the total creative industry employment, while Fine Arts and Performing Arts accounts for less than 1% of the total creative industry employment. Employment Share by Creative Sector, City of EI Segundo, 2017 Figure 1.6 Source: California Employment Development Department; Analysis by Beacon Economics Compared to 2008, there are some 225 fewer workers employed in creative industries in 2017. However, Fashion (274 fewer workers) alone accounted for the entire decline in employment. The loss of jobs in Fashion is not surprising, given that many were employed in manufacturing related jobs (e.g., Women's cut and sew apparel manufacturing) and the loss of manufacturing jobs is also a countywide, statewide, and nationwide trend. Still, this represents a notable decline of Fashion, shrinking its share of ■ Architecture and Related Services ■ Creative Goods and Products ■ Entertainment & Digital Media ■ Fashion ■ Fine Arts and Performing Arts total creative industries employment from 7% in 2008 to just 3% in 2017. On the other hand, the very slight decrease in employment in Entertainment & Digital Media (-1%) may be a more surprising revelation. During the same time period, Los Angeles County posted a 3% gain in Entertainment & Digital Media employment. Meanwhile, Architecture and Related Services, Creative Goods and Products, and Fine Arts and Performing Arts each recorded modest increases in employment from 2008 to 2017. 19 20 Employment Change by Creative Sector, City of EI Segundo, 2008 vs. 2017 Figure 1.7 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2008 2017 ■ Architecture and Related Services ■ Creative Goods and Products ■ Entertainment & Digital Media ■ Fashion ■ Fine Arts and Performing Arts Source: California Employment Development Department; Analysis by Beacon Economics The fact that total creative industries employment decreased slightly amid a boom in the number of establishments implies that the average establishment size has become smaller, shrinking from 32 workers in 2008 to 22 in 2017 For Creative Goods and Products and Entertainment & Digital Media, the smaller average establishment size is due to rapid increases in the number of firms incorporated in the City while employment remained almost unchanged. For Fashion, however, the smaller average firm size is due to a decline in employment while the number of establishments only decreased modestly. Average Firm Size by Creative Sector, City of EI Segundo, 2008 vs. 2017 Figure 1.8 160 140 120 100 80 60 40 20 11 0 9 Architecture and Creative Goods Related Services and Products 16 Entertainment & Digital Media /2008 ■ 2017 Source: California Employment Development Department; Analysis by Beacon Economics It should be noted that the shrinking average establishment size holds true in Los Angeles County as well, where the average establishment size decreased from 13 workers per firm in 2008 to 11 in 2017. Furthermore, even though the average establishment 35 32 Fashion Fine Arts and Total Performing Arts size is becoming smaller more rapidly in EI Segundo than in Los Angeles County, EI Segundo's average establishment size in creative industries is still double that of Los Angeles County. >> 22 Average Firm Size by Creative Sector, City of EI Segundo vs. Los Angeles County, 2017 Figure 1.9 100 80 60 I 89 Architecture Creative Goods Entertainment & Fashion Fine Arts and Total and Related and Products Digital Media Performing Arts Services L Los Angeles County ■ City of EI Segundo Source: California Employment Development Department; Analysis by Beacon Economics The average establishment size in the Creative Goods and Products sector in the City of EI Segundo is significantly larger than the average establishment size in other creative sectors and larger than in Los Angeles County counterpart, as Figures 1.7 and 1.8 illustrate. This is partly due to the presence of Mattel Inc. and Namco Bandai Holdings USA Inc., both of which are major doll, toy, and video game manufacturers and distributors, and employ more than 100 employees in the City. Figure 1.9 shows the dominant presence of the Creative Goods and Products sector in EI Segundo compared to Los Angeles County and California. Employment Share in Creative Industries by Creative Sector, 2017 Figure 1.10 El Segundo Los Angeles County California 1% 11-1 0% 20% 40% 60% 80% 100% ■ Architecture and Related Services ■ Creative Goods and Products ■ Entertainment & Digital Media ■ Fashion ■ Fine Arts and Performing Arts Source: California Employment Development Department; Analysis by Beacon Economics 23 24 Between 2008 and 2017, the average annual wage in EI Segundo's creative industries increased 43% from $105,700 to $151,100. Entertainment & Digital Media is the highest paying creative sector. In 2017, the sector paid an annual average wage of $174,000 in EI Segundo. Fine Arts and Performing Arts is the lowest paying sector of EI Segundo's creative industries, paying an average annual wage of $35,600. Annual Average Wage by Creative Sector in EI Segundo, 2008 vs. 2017 Figure 1.11 $200,000 $150,000 $100,000 $50,000 $0 — Architecture and Related Services 1 Creative Goods Entertainment & and Products Digital Media /2008 ■ 2017 Source: California Employment Development Department; Analysis by Beacon Economics Entertainment & Digital Media also has the fastest growing annual average wage, almost doubling between 2008 and 2017.On the other hand, the annual average wages for Fashion and Fine Arts and Performing Arts have actually decreased during the same period, declining 15.9% and 16.4% respectively. EI Segundo's professionals working in creative industries 25 F/// generally enjoy higher wages than their Los Angeles County counterparts. Compared to Los Angeles County, the average annual wage in EI Segundo's creative industries is 38% higher. EI Segundo workers in every creative sector except for Fine Arts and Performing Arts earn a wage premium ranging from 7% to 125% compared to workers in Los Angeles County. Annual Average Wages by Creative Sector in EI Segundo and Los Angeles County, 2017 Table 1.1 CREATIVE SECTOR EL SEGUNDO LOS ANGELES COUNTY PERCENTAGE DIFFERENCE Architecture and Related Services $90,100 $83,900 7% Creative Goods and Products $128,300 $57,000 125% Entertainment & Digital Media $174,200 $137,600 27% Fashion $101,700 $49,600 105% Fine Arts and Performing Arts $35,600 $84,900 -58% Total Creative Economy $151,100 $109,800 38% Source: California Employment Development Department and U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW); Analysis by Beacon Economics Employment Share and Annual Average Wage by Creative Sector, City of EI Segundo, 2008 and 2017 Figure 1.12 $200.000 2008 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 0% 20% 40% 60% 80% 100% ■ Architecture and Related Services ■ Creative Goods and Products ■ Entertainment & Digital Media ■ Fashion ■ Fine Arts and Performing Arts Source: California Employment Development Department; Analysis by Beacon Economics 2017 0% 20% 40% 60% 80% 100% ■ Architecture and Related Services ■ Creative Goods and Products ■ Entertainment & Digital Media ■ Fashion ■ Fine Arts and Performing Arts 27 28 Creative Sector Share of Wage, Employment, and Establishment, City of EI Segundo, 2017 Figure 1.13 Wage Employment Establishment 0 20 ■ Architecture and Related Services ■ Fashion 40 60 Creative Goods and Products ■ Fine Arts and Performing Arts Source: California Employment Development Department; Analysis by Beacon Economics Despite the City's small population, EI Segundo has a robust creative economy, where workers work in a diverse range of creative sectors for firms of various sizes. Even though the City's population is less than 0.2% of the entire Los Angeles County population, the fact that it employs roughly 1.4% of the County's creative workforce underscores the City's role as an important player in the County's creative economy. The presence of large firms such 80 ■ Entertainment & Digital Media •11 as Mattel Inc., Bandai Namco Holdings USA Inc., Square Enix Inc., and Internet Brands Inc., cement the City's importance as a key contributor to the creative economy countywide and statewide. On the other hand, small establishments are also abundant, which give the City its unique character. EI Segundo is a place where creative establishments of all sizes can coexist and flourish. 0.1 0.5 29 30 AND WO IKFORCE MAPPING The industry mapping displays employment by size and type of the creative industries throughout the City of EI Segundo. The map is rendered based on publicly available information published by the California Employment Development Department. There are a few distinctive patterns that make up EI Segundo's creative economy. First, most of the establishments are concentrated on just a few major corridors: the block between Pacific Coast Highway and Nash Street south of the 1-105 and north of EI Segundo Boulevard, EI Segundo Boulevard east of Pacific Coast Highway, and between Douglas Street and Apollo Street north of Rosecrans Avenue. There is also a clear pattern of where firms tend to cluster depending on employment size. Small, boutique firms with fewer than 50 employees tend to be concentrated along EI Segundo Boulevard west of Pacific Coast Highway. This area is known as Smoky Hollow, a formerly industrial area that is being revitalized into a more walkable neighborhood with a mix of creative office, research and development activity, and light industrial space. As evidenced by the cluster mapping, there is a more diverse mix of creative industries in Smokey Hollow than in most other neighborhoods of the City, with Creative Goods and Products particularly well -represented given the industrial space available. In recent years, EI Segundo has seen a broad-based rise in creative tenants occupying space in the Smoky Hollow district. This transition positions Smoky Hollow as an important creative hub and helps to further cement EI Segundo's leadership in the creative space. Meanwhile, large firms with at least 100 employees are clustered on Pacific Coast Highway immediately south of the 1-105, along Continental Way and Apollo Street to the south of Park Place in the southeastern part of the City, and in the area to the immediate west of Mariposa Green Line Station. Finally, each of the five creative sectors workforce generally cluster in different parts of the City. For Architecture and Related Services, the majority of the firms sit alongside Franklin Avenue and EI Segundo Boulevard west of Pacific Coast Highway. For Creative Goods and Products, the larger establishments can be found to the east of Pacific Coast Highway while the smaller establishments reside in the same general area as Architecture and Related Services. Entertainment & Digital Media's patterns follow the general creative economy: small firms to the west of Pacific Coast Highway on Franklin Avenue, EI Segundo Boulevard and Main Street, and large firms in the northern part of the City on Pacific Coast Highway and the southeastern part of the City. For Fashion, once again the larger firms are on the East side while the smaller firms are on the West side. Finally, most of the Fine Arts and Performing Arts establishments, which are studios with few employees, tend to reside along Main Street. • t •• z CIOs0 elindQ • • • • no .• ♦ • • • E EI Segundo 1131v, EL Creative Economy in EI Segundo Figure 1.14 Roecrara 'r •• n Marine Ave Source: Employers by Geographic Area Database, California Employment Development Department -(EDD) and InfoGr9(6p O / \ 1-4 Employees 5-9 Employees 10-19 Employees 20-49 Employees 50-99 Employees 100-249 Employees rlrk 250-499 Employees • Architecture and Related Services • Creative Goods and Products • Entertainment & Digital Media • Fashion • Fine Arts and Performing Arts 31 32 l i� T--T+"�` .�: '•$. 4 _ t ,�.. ,t.y .'._•"+;� +� .yam, � ' .,, RO �' �;� ,° � : j' \�� _ -:.� k53: "\ _ RR _ ,e_.' .L` �" --''�� . }•moi' �. � � IN 01 pp , e 1 Vli yy, ` Title: Willow/Sausal �3e i. — _ --_ Artist: Celeste Korthase aFP ,�•'�° t`' }"' g� ( , l r Location: Franklin Avenue (at the corner of Main Street) �E �`. ._ `� �'� "' Y�f''� '' � ' ..drdQ���aQbO - < � i� '��` a � • � �" �'� 6ff tib E,e�! -. �,,,,- M. _ - fir• ' ", .� _ ' c. �- ,�-. � ,<�rx --- .x+-� ^y �g, - as - to �"E%'' 1 _----�-.��'�vJ►�+, ...•r4 "",- .t'"` � e � K is gra y . .{� � S- , . �, r -,p„� _ e - _.,•. 'w- '"`�. ---�,. _. _....r ,. , _ ��yc:, „, ,._ .,,. .: s.. 1, ,lis - .�-�.�_:.- � ��-. tif• ��_ ,.�-*M�,_"^' ,���^.�`. `'.,�. �+:' ,.`', .F-- -y y — d k` , a r. AT a a -rhe Feo le C ATIVE OCCUPATIONS ANALYSIS 38 pe,proo"o-raCIOUNTY'Shi� F7V-0il� OF LOS A ELES WORK ORCE IN THE CREATIVE INDUSTRIES Gender This analysis uses L.A. County as the unit of geography for its study of demographic trends which are derived from occupational data. The City of EI Segundo's labor pool is that of L.A. County, as labor sheds functional regionally as opposed to along jurisdictional lines. Practically speaking, this means that EI Segundo's creative firms pull talent from across the County and beyond to staff their ranks. Additionally, occupational data available at the County level provide a richness of insight that's unavailable at lower levels of granularity, for example around demographic composition of workers by creative industry. Employment and Average Wage by Gender, Total Creative Industries, Los Angeles County, 2017 Figure 2.1 v 3 c iv m m a' $90,000 $80,000 $70,000 $60,000 1 $50,000 $40,000 $3Q000 $20,000 $10,000 Women earn 77 cents for every one dollar their male counterpart earn. 40% Source: Census Bureau, American Community Survey 1 -Year PUMS; Analysis by Beacon Economics / Female ■ Male Employment and Average Wage by Gender and Creative Industry, Los Angeles County, 2017 Figure 2.2 Architecture and Related Services $100,000 Women m $90,000 25 0ofs $80,000 workfc $70,000 $60,000 j $50,000 $40,000 $30,000 $20,000 $10,000 $0 Creative Goods and Products $100,000 $90,000 0% 20% 40% 60% 80% 100% $80,000 Women made up 60% 80% 100% 34% of sector $70,000 workforce. $60,000 In Los Angeles County, employment by gender in the creative industries remained fairly stable from 2007 to 2017; $50,000 women have made up about 40% of the creative industries workforce. By comparison, in New York City, which also has $40,000 a very robust creative economy and is a major competitor of the Los Angeles region, women have made up about 45% j of the region's creative industries workforce. However, employment levels have risen faster for female professionals in $30,000 L.A. County than for male professionals within the past ten years. $20,000 A breakdown by the five Creative Industry groups reveals very different workforce distributions by gender. In the $10,000 Architectural and Related Services sector, women only make up a quarter of the creative industries workforce whereas $0 women make up 51% of the creative industries workforce in Fashion as well as Fine Arts and Performing Arts. 0% 20 Women made 76 cents per dollar males earned. 40% 60% / Female ■ Male 80% 100% 59 40 Entertainment & Digital Media $100,000 Women r $90,000 37% Of $80,000 workf $70,000 j$60,000 $50,000 $40,000 $30,000 $20,000 $10,000 / Female ■ Male $0 1 0% Fashion $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 20% Women made up 51% of sector workforce. 40% Women made 83 cents per dollar males earned. 60% 80% I Z Female ■ Male 100% $0 0% 209. 40% 60% 80°0 100% Fine Arts and Performing Arts $100,000 Women made up $90,000 51% of sector $80,000 1 workforce. $70,000 $60,000 $50,000 IF $40,000 $30,000 $20,000 $10,000 $0 0% 20% 40% Source: Census Bureau, American Community Survey 1 -Year PUMS; Analysis by Beacon Economics Women made 70 cents per dollar males earned. / Female ■ Male 60% 80% 100% Nevertheless, in each of the five Creative Industry groups, women make less than men on average, earning from 70 cents in Fine/Performing Arts for every dollar their male counterparts earn to 86 cents in Architectural and Related Services. Educational Attainment The creative industries employ many highly -educated workers. 51% of the professionals in L.A. County's creative industries had at least a bachelor's degree in 2017, representing a 9% increase from 2007 By comparison, just one-third of workers in L.A. County's non -creative industries had a bachelor's degree or above in 2017 Because workers in the creative industries are becoming more educated, the%age of workers with less than a high school diploma and the%age with just a high school diploma have dramatically declined, by 28.5% and 20.6%, respectively over the last ten years. In contrast, among Los Angeles County's workers in the non -creative industries, the%age of workers with less than a high school diploma (-14.3%) and the%age with just a high school diploma (-3.7%) have declined more modestly. 41 42 Professionals in creative industries in L.A. County enjoy higher wages than those in non -creative industries and this holds true across all educational attainment levels. In Los Angeles County, the wage premium is the highest among those with some college (including associate's degree, +27.1%), followed closely by those with a high school diploma (+26.9%) Creative Industries Workforce: Very Educated and Becoming More Educated in Los Angeles County Figure 2.3 Not in Creative Industries (2017) In Creative Industries (2017) In Creative Industries (2007) 0 20 40 60 80 100 ■ Less Than High School ■ High School Graduate ■ Grad./Prof. Degree ■ Some College ■ Bachelors Degree Source: Census Bureau, American Community Survey 1 -Year PUMS; Analysis by Beacon Economics Percentage Change in Employment Los Angeles County, 2007 to 2017 Figure 2.4 40 20 0 -20 -40 28.3 1A � 1A z ')G1 24.6 -28.5 Not in Creative industries In Creative Industries ■ Less Than High School ■ High School Graduate ■ Grad./Prof. Degree ■ Some College ■ Bachelors Degree Source: Census Bureau, American Community Survey 1 -Year PUMS; Analysis by Beacon Economics Race Non -Hispanic Whites (44%) make up the largest share of the creative industries workforce in Los Angeles County, followed by Hispanics (33%). The racial distribution has remained almost the some in Los Angeles County over the past ten years, the only notable change is Asians have gained nearly a one -percentage point increase over the period 2007 - 2017 as a share of the creative industries workforce from 13.8% to 14.7%. Creative Industry Workforce by Race, Los Angeles County, 2007 vs. 2017 Figure 2.5 Source: Census Bureau, American Community Survey ]-Year PUMS; Analysis by Beacon Economics 2017 Share (Outside) ■ Hispanic (All Races) ■ Non -Hispanic Asian ■ Non -Hispanic Black ■ Other ■ Non -Hispanic White 43 44 Ar 19L All x �� � 0 � ` �� �X I y f Y• � �. � +. .r. ;. iii t5i�` ■ �; � • - A. Elf 10, IP i rte -+fir +•'F'a` 5{ iy�� J ■ , �1 ti I ` r y ■ T L�aiJ15 1� w Lk ��� mop Title: John VSSn Hamersveld tank mural -„ f Artist: John Van Hamersveld Location: Grand Avenue in EI Segundo 6,re"D--hvc, 0C.�A-lafioplill;ANALYSIS AND WORKFCE TRENDS Occupational Groups in Creative Industries As mentioned, this analysis uses L.A. County as the unit of geography for its study of creative occupations. The City of EI Segundo's labor pool is that of L.A. County, as labor sheds functional regionally as opposed to along jurisdictional or municipal lines. Thus, a study of workers' occupations is necessarily performed at the County level. Los Angeles County's creative economy comprises a variety of creative industries, which employ an expansive range of occupations.' Of the major occupational groupings,' a quarter of the workforce in L.A. County's creative industries were employed in Arts, Design, Entertainment, Sports, and Media occupations (or Arts/Entertainment for short) in 2017 This was the region's largest occupational group in 2017, followed by Management (14.9%) and Production (12.3%). To note, Production was previously the second largest major occupational grouping, however, Management has overtaken Production since 2015 due to the continuous decline in manufacturing -related jobs in Los Angeles County, mirroring trends nationwide. Employment in Creative Economy by Occupation, Los Angeles County, 2007 to 2017 Figure 2.6 120 a 100 0 0 80 60 0 6 Q V 0 40 T Q C T 20 0 Q :_ W 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ■ Arts/Entertainment ■ Management ■ Production ■ Office/Administrative ■ Sales ■ Computer/Mathematical ■ Other Occupations Source: Public Use Microdata Sample, U.S. Census, American Community Survey 1 -Year PUMS; Analysis by Beacon Economics I Standard Occupational Classification (SOC), which is used by federal agencies to classify workers into occupational categories for the purpose of collecting, calculating, 47 or disseminating data. This report uses the 2010 SOC system rather than the new 2018 SOC system, given that the data runs to 2017. Ten Year Employment Growth Overview in Los Angeles County in Creative Industries by Major Occupational Groups Figure 2.7 120% 100% 80% 60% 40% 20% 0% 2007 2017 ■ Arts/Entertainment ■ Management ■ Production ■ Office/Administrative ■ Sales ■ Computer/Mathematical ■ Other Occupations Source: Public Use Microdata Sample, U.S. Census, American Community Survey 1 -Year PUMS; Analysis by Beacon Economics Of the top occupational groups by employment, Computer/Mathematical is the fastest growing, seeing a 40% increase over the last ten years in Los Angeles County. Much of the increase can be attributed to the boom in employment in firms classified under the Computer Systems Design and Related Services industry. More broadly, the Emerging Digital Media subsector including Computer Systems Design and Related Services as well as other industries accounted for most of the increase in Computer/Mathematical occupational demand. On the other hand, Production has suffered a 28% drop in employment, which is perhaps unsurprising given the long-term trends at play in manufacturing, countywide and nationwide. Each of the five creative sectors profiled in this report employ a wide range of detailed occupations in Los Angeles County. Entertainment & Digital Media, which is the largest creative sector by far, employs the greatest number of distinct detailed occupations; the top five detailed occupations in the Entertainment & Digital Media sector make up only 27.7% of the sector's employment. 3 Detailed occupations (6 -digit level) are combined to form 459 broad occupations (5 -digit level), 98 minor groups (3 -digit level), and 23 major groups (2 -digit level). Here, the term "major occupational groups" refers to the 23 major groups. The 2010 SOC classification system can be viewed here: https://www.bls.gov/soc/Soc-structure-2010. 48 pdf — Top Five Detailed Occupations by Creative Industry, Los Angeles County, 2017 Figure 2.8 Naval, 12.5 Exceptcivil Inspectors, Testers, Architecture and Related Services Naval, 12.5 F-8.6 Engineers, � Sorters, Samplers, and Weighers, 2.7 Architects (except Naval) is the largest occupation in the Architecture and Related Services sector in Los Angeles County, employing one-eighth of the sector's total employment, NONNI, followed by Designers (10.5%) and Civil Engineers (8.6%). L_ Designers, L -Miscellaneous L -All, ther 10.5 Managers, 8.6 Occupations, 57.1 Miscellaneous Managers, 8.5 Miscellaneous Assemblers and Fabricators, 6.4 17- Designers, 3.7 I� NONNI Sales L- All Other Representatives, Occupations, 69.9 Miscellaneous 5.1 Production Workers, 6.4 Miscellaneous Managers, 8.0 Designers, 4.6 Artists and Related I- Workers, 3.5 Software Developers,L_ All Other Applications and Systems Occupations, 72.3 Software, 4.3 Producers and Directors, 7.3 .Sewing Machine - First -Line Supervisors of Non -Retail Sales Operators, 21.1 Workers, 5.7 Tailors, Dressmakers, And I- Sewers 4.8 r -on mill 0 _Sales L- All Other Designers, Representatives, 5.6 Occupations, 55.6 7.0 Other Teachers First -Line Supervisors of Retail Sales and Instructors, FWorkers, 4.9 Postsecondary 18.9 Teachers, 3.5 Milli L -Retail Education L_AlIOther Salespersons, Administrators, 4.4 Occupations, 63.1 5.1 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: Census Bureau, American Community Survey 1 -Year PUMS; Analysis by Beacon Economics Creative Goods and Products Miscellaneous Managers (8.0%) is the largest occupation in the Creative Goods and Products sector in Los Angeles County, followed by Miscellaneous Production Workers (6.4%) and Miscellaneous Assemblers and Fabricators (6.4%). Designers (3.7%) is the fifth most common occupation, highlighting the importance of creative work in the industry though it is primarily manufacturing -based. Entertainment & Digital Media Miscellaneous Managers (8.0%) is also the largest occupation in the Entertainment & Digital Media sector in Los Angeles County, followed by Producers and Directors (7.3%), Designers (4.6%), Software Developers, Applications and Systems Software (4.3%), and Artists and Related Workers (3.5%). Several of the industry's more high-profile occupations - Musicians, Singers, and Related Workers (2.2%), Editors (2.3%), Writers and Authors (2.6%) and Photographers (2.2%) - comprise less than 10% of Entertainment & Digital Media's total employment in L.A. County. Actors, the sector's twelfth largest detailed occupation, make up another 2.0%. Fashion 0 o Sewing Machine Operators (21.2%) is by far the largest occupation in the Fashion sector in Los Angeles County, followed by Designers (7.0%) and First -Line Supervisors of Non -Retail Sales Workers (5.7%). Fine Arts and Performing Arts Slightly under one-fifth of the total workforce of the Fine Arts and Performing Arts sector ("Fine/Performing Arts") in Los Angeles County are employed as Other Teachers and Instructors, making that occupational group more than three times larger than the next largest occupational group, Retail Salespersons (5.1%). Other Teachers and Instructors may include for example art and music teachers who provide private lessons either in private homes or at studios. pPPorfivni�ieS ADVANTAGE Historical context and assets Named after a second siting of a Chevron refinery, EI Segundo has had a long history with big industry. In addition to the oil industry, the aerospace industry has maintained a strong footprint in EI Segundo over time. These two traditional industries have provided important hard and soft assets for creative firms in EI Segundo. Stock of mid-century designed and industrial buildings [Hard assets]: Showcased well in the area of SmokyHollow, EI Segundo has a plethora of industrial buildings and warehouses, or an g p g "industrial chic aesthetic" as one stakeholder called it, appealing to creative individuals and firms. Parcels were also noted to be available in conveniently smaller increments in EI Segundo, allowing for the gradual expansion of big firms or the entrance of smaller firms requiring less space. One stakeholder explained, "As perhaps some of the older, legacy industries in EI Segundo don't need as much space as they once did, they are downsizing and as a result, you can buy in EI Segundo and actually develop your vision for your space here" This base of industrial real estate in an appealing neighborhood and in close proximity to other parts of Los Angeles County represents an ideal and unique value proposition for many of EI Segundo's creative economy industry stakeholders. One stakeholder detailed his own search for his firm's new space as they were growing, explaining, "We triangulated on EI Segundo because of its proximity to other relevant parts of the County and we were looking for a certain type of industrial space needed by a creative firm like ours - which means a certain square footage and allowable use but also an atmosphere and an aesthetic. That's how we kind of ended up in EI Segundo. It's been great. 0 It's been perfect actually. I want to say it's kind of a perfect place for business. I don't think there's anything else in L.A. County that would be as accessible, fit our needs better in terms of space, and be as affordable" EI Segundo's accessible location and real estate stock also allow for certain business models to thrive that may not be possible elsewhere. In this sense, EI Segundo's stock of industrial assets and central location in L.A. County is not only an advantage to EI Segundo but an important advantage to the County as well. One stakeholder explained this idea, saying, "It's highly unlikely that our offices in San Francisco or New York would ever become the same business model as our operation in L.A., where we have a huge multi -facility, vertically -integrated operation, with production here in EI Segundo. I think that's going to remain L.A.-centric and it's going to be difficult to replicate that elsewhere." 52 Authentic cultural roots [Soft assets]: Given the presence of industries like oil and aerospace, a blue-collar workforce settled historically in EI Segundo as well as a tight -knit community over time. Both long-time residents of EI Segundo as well as newcomers remarked on the City's "small-town feel, character, charm, and sense of place." As one industry stakeholder and long-time resident of EI Segundo elaborated, "I am delighted in the shift of perspective on EI Segundo: What made EI Segundo once the stepchild of Manhattan Beach is what makes it charming today. EI Segundo has a sense of authenticity to it. When you think of other attempts to cultivate creative communities, EI Segundo has a unique history and a sense of community here that I think strikes a different tone. Creativity is colliding with that history in dynamic ways but not overriding it. I think that's an opportunity for everyone." As many industry stakeholders spoke to the human-centeredness of creative work and the uniquely human inputs to success in creative industries despite massive technological transformation, the community -orientation of EI Segundo and its palpable humanity was repeatedly praised. One industry stakeholder who relocated his creative business to EI Segundo having considered other parts of L.A. County said, "I love the authentic ambiance here. You can go to some of these other hipster neighborhoods but they feel forced. There's something about EI Segundo: You still have traditional car shops and manufacturing businesses mixed in with creative agencies. There's an authenticity to the City. It feels real but still looks great; it feels like Main Street but you also have a good deal of newer companies coming in. It's an ideal blend." As the broader creative economy is searching for a diversity of voice and the ability to communicate authenticity, EI Segundo's strong identity is considered an asset and an inspirational context for creative work. ADVANTAGE Creative, collaborative community Many industry stakeholders spoke to EI Segundo's high-quality and, importantly, tight -knit creative community, as well as its openness to collaboration. In discussing how that collaboration is operationalized and why it's important to creative business, one stakeholder explained, "One of the things we find here in the South Bay, in our experience, is something we felt was missing in some of the older and maybe more well-established, Hollywood -based hubs for production companies. The South Bay and EI Segundo in particular has a different mindset, more "make it on the table" or generally collaborative. Over time, we felt that our preferred vendor partners in this part of town were more creatively open, more flexible, and more transparent in the context of collaboration. A lot of our vendors are our clients and many of our clients are our vendors so that type of open- minded, transparent collaboration is important to our business and more of the way things are done here, we think" ADVANTAGE Corporate synergies In addition to the advantages of the creative community in EI Segundo, industry stakeholders also spoke to the value of EI Segundo's broader business community, including its more traditional and corporate elements. Corporate funding: Some industry stakeholders articulated that value as potential for direct partnership or funding. One stakeholder noted, "Aerospace and oil are big business. That's useful. In one sense we might think of those firms as traditional clients, and in another as potential sponsors. Either way, it's useful having Fortune 500s in your backyard." Innovation ecosystems: Other industry stakeholders discussed the utility of the intellectual capital borne of proximity to such large and rapidly innovating industries as those located in EI Segundo. One stakeholder gave the City of EI Segundo direct credit for cultivating that innovation ecosystem historically. While the City may not have been explicitly targeting creative firms over the entirety of those efforts, the stakeholder underlined the connections and synergy between creativity and innovation. He continued, saying, "The City has demonstrated evidence of a willingness, a desire, and a commitment to support business and especially innovative business and within that I put creative. The tagline for EI Segundo is backed by real investment and that's been historically true but recently in the last few years that track record for the first time is colliding beautifully with arts and culture." 53 4 ADVANTAGE Transit -oriented location When asked, the number one advantage of locating in EI Segundo as a creative firm, one stakeholder responded, saying, "Location, location, location. It's on the westside, right next to the beach and offers a beautiful lifestyle through that. The proximity to LAX airport as well as the freeways you cannot beat, both with regard to bringing clients in and getting out ourselves. And proximity to other innovative film and entertainment communities - Culver City for example and the blooming Sports market with Rams, Chargers, LeBron." EI Segundo's proximity to Orange County compared with locations further north on the westside was also noted as an advantage. More generally, the move of creative activity in Los Angeles County both west and south was mentioned by stakeholders as part of a larger trend. As one stakeholder explained, "Everything used to be on the other side of Baldwin Hills. Over the course of time creative activity - entertainment and advertising particularly - in L.A. just kept moving west, and I think EI Segundo is a logical conclusion and destination of this migration and what has been driving it." ADVANTAGE Quality of life In discussion of EI Segundo's location, proximity to the beach and the impact of that proximity on culture was mentioned numerous times with one stakeholder labeling EI Segundo's beach culture as "urban surf." In a fast - paced world of many dichotomies, the unique combination of community, freedom, sense of opportunity, and quality of life in EI Segundo was celebrated by its creative industry stakeholders. One stakeholder put that charm in the context of Southern California's historical appeal, "Everything that is good about Southern California, everything that we historically love about it - the artistic side, the creative side, the beaches, the free and easy newness paired with a sense of identity - all of that is magnified and epitomized in EI Segundo" Awareness of the value proposition that EI Segundo offers seemed to be anecdotally on the rise, spurring the continued organic migration of firms to the City, especially creative firms. One industry stakeholder cited an example, saying, "We have clients that come down here to our offices and they like it and they start asking questions and before long they are saying they want to come down here. That's what has been happening and it's accelerating. I can say from my industry perspective, there's been a real surge in creative activity since our beginning in 2013." ` ` It's the some reason I choose to live here, the City itself is quite pleasant and a nice place to hang your hat whether that's at home at night or during the day when you're at the office. What else can I ask for?" Y) 56 ADVANTAGE Low cost -high talent intersection While a more traditional competitive advantage for business attraction, the relatively lower cost of land and cost of doing business in EI Segundo was noted by creative economy industry stakeholders. Importantly, creative firms are still able to benefit from the County's broader workforce and employment base, uniquely strong in creative skills and competencies, while enjoying those lower transaction costs. One stakeholder commented on that pairing of optimal inputs, explaining, "From a commercial leasing and business licensing perspective, EI Segundo's comparative lower rates were important for us as a small firm. We have a small staff and three main partners at our main location but we send out over 701099s every year as we crew up for production. Most of our jobs are outside of city limits as we travel to client locations or exotic locations for shoots. We need to be able to pull creative workers from across the region but still operate efficiently at our home office." The L.A. County region represents the biggest national hub of creative professionals, a unique asset for creative firms in the City of EI Segundo. Ultimately, the labor pool the City's firms are able to pull from is in number and creative competencies unmatched and the City of EI Segundo represents a cost-effective location from which to access that talent. ` ` I was originally going to buy in Hollywood that's where most of our big clients are located. But I always loved the vibe here in EI Segundo and wanted to be closer to home so I made a personal decision to move here but it ended up being a great business decision too.1_just didn't know it at the time." ADVANTAGE Cooperative government The City of EI Segundo and its government representatives were perceived as both friendly and accessible to business. Commenting on the relationship between the business community and the City, one stakeholder said, "I've always known EI Segundo to be very business friendly. Since setting up shop here, I've found that to be true. EI Segundo cares about their businesses, they are responsive, you can talk to people, and you can get answers. Business people know the Council members and feel comfortable approaching them." Other stakeholders spoke about experiences like getting a special use permit for space and the ease of working with the City. The City's ability to operationalize decisions efficiently was also noted. Commenting on the City's ability to solve challenges like parking as the creative economy grows in EI Segundo, an industry stakeholder said, "EI Segundo is good at making things happen quickly. I'd love to see parking solutions happen fast and I'm confident the City of EI Segundo can do it." The L.A. County region represents the biggest national hub of creative professionals, a unique asset for creative firms in the City of EI Segundo. Ultimately, the labor pool the City's firms are able to pull from is in number and creative competencies unmatched and the City of EI Segundo represents a cost-effective location from which to access that talent. 57 �)8 (�allen�� Stakeholders also spoke to challenges in EI Segundo which the City may consider addressing as it looks to support the growth of the City's Creative Economy. ` Two things I hear people say: Do you have parking and do you have a fast internet? We can build everything else." CHALLENGE Better and more options for high-speed internet Faster internet was highlighted as a challenge and the desire for more and better options for high-speed internet was repeatedly voiced. It was underlined that this need and these options are all the more important for creative firms and especially creative -tech firms. One stakeholder elaborated, saying, "Having choices with fast internet since we are tech -creative companies is really important. Having at least one other company in addition to the one we have now would give us more choice. I'd love to have Fios/Charter because they have the fastest and least expensive internet for business. I know it's in Manhattan Beach." CHALLENGE Parking By far, the challenge most discussed was parking. As EI Segundo's business community grows, the pressure to build infrastructure like parking to serve its desired labor-intensive uses mounts. Stakeholders did comment positively on the absence of meters and a preference for revenue -neutral parking options where possible but weren't generally opposed to being charged as long as parking was structured to serve businesses [e.g. ensuring that parking regulation prevents people from leaving their cars overnight but also doesn't require workers to go out every two hours to fill a meter]. One stakeholder summarized emphatically, saying, "EI Segundo has three major problems that I think have to be overcome for current business and for future businesses to grow. Parking, Parking, and Parking. There's not enough parking. Please build parking structures and please don't take away any existing parking. Autonomous vehicles are not going to fix the problem any time soon. EI Segundo is growing now. Do what's necessary to accommodate that growth before it goes elsewhere." 59 60 5VWC/1�+C,01 TION ITEMS Stakeholders also suggested actions on the part of the City to continue cultivating the current growth in EI Segundo's creative economy. Some of those suggestions are highlighted below: ACTION ITEM Maintain EI Segundo's unique community Given the allure of EI Segundo's unique community, there was emphasis placed on preserving it. One stakeholder said, "There is an expectation that businesses that come here respect the City's traditions and history and really participate in City life. That expectation enforced is what will help EI Segundo continue to hang on to the authenticity it's been able to maintain and market." Another stakeholder commented sympathetically on the difficulty of simultaneously evolving and maintaining history in EI Segundo, noting, "One of my concerns is this. There are definitely some conservative mindsets in EI Segundo and folks scared of change in general and that's not my issue. I'm all for the evolution and growth of EI Segundo and the changes that come along with it. But, I am hoping that EI Segundo can protect, maintain, and preserve the individuality and the unique personality it has while it goes through this growth phase. If it does, I think that will be of tremendous value to everyone now and into the future." ACTION ITEM Include artists As noted by the stakeholder above, one way of maintaining community is actively seeking participation from creatives and community members alike. Creative industry stakeholders asked to be more intimately included in the City's planning, development, and beautification. Many of the stakeholders interviewed identified as artists themselves and as invested community members. They offered their services as EI Segundo thinks about enhancing its efforts to make EI Segundo a destination home for creatives. One stakeholder said bluntly, `Ask us. Ask artists to help beautify and plan the City of EI Segundo, whether that's just painting sidewalks or deciding how to integrate beach access, artists can be tangibly helpful. They also know what other creatives look for and not all of that is easily communicated or measured." ` ` I've done a lot of volunteer work and project work with the City using my art skills and I've found it to be very gratifying." 61 62 ACTION ITEM Creative network building While the creative community and the community of EI Segundo more broadly was characterized as tight -knit and collaborative, as the creative economy of EI Segundo grows there was voiced desire for business -oriented network building and active facilitation of a creative business ecosystem in EI Segundo. An industry stakeholder explained, saying, "Something we haven't done yet and certainly something we should start to explore: We haven't done business networking in EI Segundo to explore what business opportunities might be there. Maybe once a quarter or something, see what other creative firms are doing in EI Segundo and if there are ways of working together more. What I have seen are more arts and culture phenomena from a community and quality of life stand point and they have been great. Like the EI Segundo Art Walk which brings out of the woodwork this hidden group of creatives living and working in EI Segundo." In terms of cultural efforts like the Art Walk, there was mention of a potential film festival or other public - facing events that could help to punctuate and broadcast the creative community in EI Segundo in addition to showcasing its unique spaces. 63 ACTION ITEM Fee for the Arts Finally, community-based stakeholders discussed the expanded opportunities that would be made possible by policies such as a percent fee for the arts. T:: I Y1 a I WO roj The City of EI Segundo presents many advantages as a home for creative professionals and a hub for firms in the creative industries. Creative industry stakeholders interviewed for this analysis praised the City's human -centered advantages including "creative -friendly" industrial space, a charming historical sense of place, a collaborative creative community, a cooperative local government, and a quality of life that is reflected in its beachfront real estate, vibrant neighborhoods, and diversity of cultural and recreational resources. Stakeholders also highlighted business -oriented perks such as proximity to big industry, including EI Segundo's well-established oil and aerospace footprint, and the convenience of the City's westside location, close to both LAX and major freeways. Furthermore, the City of EI Segundo often provides this suite of benefits to firms at costs that are consistently lower than many other creative industry hubs in L.A. County. While creative industry firms have many reasons to locate in EI Segundo, the City's most valuable asset is the creative workforce that powers those firms as well as its broader creative ecosystem. EI Segundo is able to tap into the largest hub of creative professionals and experts in the country and it is that talent pool that provides the greatest input to the City's creative industry complex. As EI Segundo looks to solve common challenges faced by the region collectively, such as sufficient parking and better information - communication technology infrastructure, the City's creative stakeholders have actively put themselves forward as partners to the City and co -stewards of EI Segundo's creative community. Together, the City and its creative stakeholders continue to build strong professional networks in the local creative ecosystem while investing in those unique, community -oriented elements that make the City of EI Segundo both a hub for creative firms and, importantly, a community for creative workers. OF TERMS IMPLAN Impact Analysis for Planning. It is a leading provider of input-output model that uses Value Added The difference between an industry's or an establishment's total output and the most up-to-date underlying data and is highly customizable. the cost of its intermediate inputs. It equals gross output (sales or receipts and other operating income, plus inventory change) minus intermediate inputs Input -Output Model A quantitative economic model that represents the interdependencies between (consumption of goods and services purchased from other industries or imported). different branches of a national economy or different regional economies. Value added consists of compensation of employees, taxes on production and imports less subsidies (formerly indirect business taxes and nontax payments), Economic Impact A study to trace spending through an economy and measure the cumulative effects and gross operating surplus (formerly "other value added"). (Bureau of Economic of that spending. The need to measure an economic impact is normally triggered Analysis) Gross value added is the value of output less the value of intermediate by an economic event, catastrophe, change in government policy, justification for consumption; it is a measure of the contribution to GDP made by an individual funding, or as needed for planning. producer, industry or sector; gross value added is the source from which the primary incomes of the System of National Accounts are generated and is therefore Employment Input-output multipliers used to estimate the total number of jobs (both full-time carried forward into the primary distribution of income account. (System of Multipliers and part-time) throughout the economy that are needed, directly and indirectly, National Accounts) to deliver $1 million of final demand for a specific commodity. (Bureau of Economic Analysis) Direct Effects It is a series (or single) of production changes or expenditures made by producers/ consumers as a result of an activity or policy. Applying these initial changes to jobs Ajob in IMPLAN = the annual average of monthlyjobs in that industry (this is the the multipliers in an IMPLAN model will then display how the region will respond, same definition used by QCEW, BLS, and BEA nationally). economically to these initial changes. Labor Income All forms of employment income, including Employee Compensation (wages and Indirect Effects The impact of local industries buying goods and services from other local industries. benefits) and Proprietor Income. The cycle of spending works its way backward through the supply chain until all money leaks from the local economy, either through imports or by payments to Output Output represents the value of industry production. In IMPLAN, these are annual value added. The impacts are calculated by applying Direct Effects to the Type I production estimates for the year of the data set and are in producer prices. For Multipliers. manufacturers, this would be sales plus/minus change in inventory. For service sectors production = sales. For Retail and wholesale trade, output = gross margin Induced Effects The response by an economy to an initial change (direct effect) that occurs through and not gross sales. re -spending of income received by a component of value added. IMPLAN's default multiplier recognizes that labor income (employee compensation and proprietor income components of value added) is not a leakage to the regional economy. This money is recirculated through the household spending patterns causing further local economic activity. 67 68