Solano County study lays out economic challenges, in-out commute patterns

Solano County study lays out economic challenges, in-out commute patterns
Monday, November 24, 2008

BY JEFF QUACKENBUSH NORTHBAY BUSINESS JOURNAL STAFF REPORTER

FAIRFIELD – Napa County employers rely on nearly 11,000 commuters from Solano County, where economic development and political leaders are committing themselves to creating more high-paying jobs and reversing alarming education statistics on the next generation of workers.

The data is part of a new report that demonstrates the interdependence between the entire Bay Area and Solano County. Traditionally a bedroom community for Sacramento and the Bay Area, the report demonstrates somewhat of a shift in that role as Solano has become home to major life sciences and other industries.

For instance, there were more than nine jobs for every 10 homes in the county in 2006, the latest U.S. Census Bureau figures available in the 48-page report prepared for the Solano Economic Development Corp., or SEDCORP. The report prepared by Collaborative Economics of Mountain View is the county’s first economic index, paid for under a three-year, $484,500 contract from the county of Solano, and intended to provide a long-term strategy for sustaining more high-paying jobs in the county.

That ratio is an improvement over the 10 years of data analyzed in the economic index, but it lags the jobs-housing ratios for the other eight Bay Area counties, which was 13 jobs per 10 homes in the same period.

Nearly 75,000 Solano County residents commuted out of the county in 2006, with top destinations being the East Bay, Napa and San Francisco. One of the top destinations for several hundred of the nearly 11,000 commuters going to work in Napa County is pharmaceutical maker Dey Labs LP, which employs 530, according to SEDCORP CEO Mike Ammann. Mylan, Dey’s parent company, in September announced it would wind down Dey’s operations.

Life sciences companies such as Dey and Genentech, which has a large plant in Vacaville, top the list of five groupings of similar business types, called industry clusters, predicted to be job-growth areas in coming decades. “I think biotech jobs will double in Solano in the next 10 years,” Mr. Ammann said. The life sciences cluster employed 2,300 in 2006.

Another target cluster is logistics and transportation because of the proximity of the county between the state capital and the Bay Area, according to Mr. Ammann.

“Our job is to get higher-paying jobs in industry clusters to settle this outbound commuting down somewhat,” Mr. Ammann said.

More local high-paying jobs also will take pressure off thoroughfares such as Highway 12 between Fairfield and Napa and interstates 80, 580 and 680 into the East Bay, he said. SEDCORP plans to release a report on the life sciences cluster in February.

More than 30,000 commuters entered the county daily in 2006, according to the economic report. Contra Costa, Sacramento, Yolo, Napa and Alameda were the top five counties from which the workers came.

The new county index was presented last week at the fourth economic summit held in recent months. One of the findings to be addressed was the outlook for work force education, which showed a 31 percent high-school dropout rate in Solano vs. 24 percent for the state in the 2006-‘07 school year. Eighty-two percent of jobs in the county require at least a secondary-school diploma, according to the new economic report.

“If you try to develop an economy with a skilled work force, this is a troubling statistic,” Mr. Ammann said.

Economic study addresses high crime, dropout rates

Economic study addresses high crime, dropout rates
By Ben Antonius Daily Republic November 20, 2008 17:15

FAIRFIELD - A new economic study commissioned by Solano County shows troubling high crime and high school dropout rates in recent years, but it also shows a handful of fast-growing employment 'clusters' that could be the area's economic backbone in the future. The 'Index of Economic and Community Progress' was presented to business and government leaders Thursday morning during Solano Economic Summit 4 at Hilton Garden Inn.

'Hopefully this information can also be used by people and organizations when they're trying to make choices and decisions,' said Doug Henton of Collaborative Economics, the firm that compiled the data for the study. The concerns about crime and dropout rates are not new. School officials have long fretted over ways to keep students in high school for all four years. But the report quantifies just how serious the situation is.For example, Solano County had a 31 percent dropout rate in 2006-2007, higher than the statewide rate of 24 percent. Broken down by ethnic groups, the rates are even higher: 48 percent of black students, 41 percent of Pacific Islanders and 37 percent of Hispanics dropped out.

'The economic indicators foretell of the hard work that is left to be done,' Solano County Board of Supervisors Chairman John Silva stated in his introduction. 'Our community could do more to prepare our children to be successful in the world of work.'Conversely, the most encouraging finding was one showing the rapid expansion of Solano County's cluster of 'life sciences' industries, a term that encompasses pharmaceuticals, medical devices and biotechnology. In that category, the county has far outstripped the industry's growth rate statewide.'It really has a potential for the region,'

Henton said. 'Our overall assessment is even with the economic situation, life sciences seems to be pretty well positioned.'

Reach Ben Antonius at 427-6977 or bantonius@dailyrepublic.net.

Solano's changes documented in new bookletBy

Solano's changes documented in new booklet
Solano's changes documented in new booklet

By Danny Bernardini/ DBernardini@TheReporter.com

Posted: 11/21/2008

Solano County is changing.From the industries it houses, to the ethnicity of the people living in the county, there is a difference when comparing it to previous years.

In an effort to document the change and to attempt to find trends and solutions to some of the issues arising from these changes, the data has recently been collected in one place.Born from a partnership between the Solano Economic Development Corporation (SEDC) and Solano County, the "Index of Economic and Community Progress" was produced.

This booklet and many of the ideas behind it were on display Thursday during the Solano Economic Summit 4 in Fairfield. The booklet and accompanying Web site was created by Doug Henton with Collaborative Economics. "We need facts. We need a baseline of information," Henton told the group. "But this is not just data. It's designed to be a call to action.

There's some good news here, but there are some challenges."Since 2000, the county's per capita income has increased at a higher rate than the Bay Area. Housing production has exceeded the amount of residents in the county, but those that are here are helping bridge that gap, Henton said."This is a region people came to, but that's changed. A lot of the people who came here were highly educated and created a nice economic base," he said. "Per capita income is one of the most important indicators of economic prosperity.

"While many larger industries, like Life Sciences, are growing and hiring more employees, Henton said other smaller fields are quietly expanding without the need to hire more bodies.Henton dubbed them micro enterprises, those that employ 10 workers or less. These include law firms, consultants and engineers, Henton said. He said it's important to factor these companies in the big picture."Not everybody works for a big company anymore," he said. "Now, how do you service these companies?"

Students in the county were also discussed as 31 percent of those that started high school failed to finish. John Thompson, former Vacaville city manager, spoke about how America's school systems differ than those abroad. Thompson said foreign schools go to school more days per year, and compare themselves globally, not to similar districts. He said less and less students are leaving high school prepared for high paying jobs."For many of our young people, they don't even know they are in a battle," he said. "Let alone that they are losing."

For a full version of the report visit www.solanocounty.com/economicindex.

Solano County Index of Economic & Community Progress

Solano County Index of Economic & Community Progress

The County of Solano awarded a three-year contract to the Solano EDC to create and annually update the first Solano County Index of Economic and Community Progress as well as conduct the in-depth profiles of five Key Industry Clusters.

"This is a tremendous step forward in Solano County's collaborative effort to assist local communities and businesses in creating a baseline of data that will make future economic development decision making easier," said Scott Reynolds, Solano EDC chairman.

Solano EDC will contract with Doug Henton, president and co-founder of Collaborative Economics, the firm which originated the Index of Silicon Valley, to measure the economic strength and health of that community by providing an analytical foundation for decision making.

If you want to learn more about the Solano Index and Cluster Studies?

Watch this blog for updates provided by DOUG HENTON, President and Co-Founder of Collaborative Economics who will provide an overview and answer your questions and the Solano Index and cluster studies are published. Member events will highlight of include updates on the Solano Index over the next 3 years. Call Pat at 864-1855 to make sure your on the Solano EDC meeting and events mailing list and to make your reservation for these future events.

Sponsorship of Solano Index events are available by contacting Sandy Person at 707-864-1855 or sandy@solanoedc.org.

Solano EDC three-year contract includes the follow components:

· An annual Index which includes a unique set of economic, workforce, housing, education, transportation and related indicators that together tell the story of the County and its seven communities' growing role as a regional hub of innovation and opportunity.

· A Land Inventory and Absorption Study will identify all undeveloped parcels in the county that are zoned commercial and industrial. This study will identify the parcel readiness for development.

· Five key industry profiles will be created over the next three years. Each Cluster will provide a focus for meeting the twin challenges of economic growth and workforce investment. A target of opportunity, such as the biotechnology industry, can be export-oriented, population-driven, or represent an opportunity with career potential for local residents. This portfolio of clusters will enable the Solano EDC and local economic developers to more successfully target companies for expansion and growth.

Supervisor Michael Reagan, immediate past chair of the Solano County Board of Supervisors, said. "The commissioning of these reports demonstrates the County's commitment to attracting more quality jobs across the county. These tools will be a tremendous asset to the cities in their economic development efforts."

Last year Supervisor Reagan was the driving force behind the County hosting a series of three Economic Summits to create a collaborative Solano County economic development vision and a new role for the County in supporting existing countywide development efforts. Summit sponsors included the City and County Coordinating Council, Solano EDC, Solano Transportation Authority and the University of California, Davis.

"The collaborative leadership of the County cannot be stressed enough," said Michael Ammann, Solano EDC president.