Lee Harrington (left) of the Los Angeles County EDC was joined by Greg Schementi of awards co-sponsor Equis Corp.

Proactively stemming attrition from the existing industry base of a metro market the size of Los Angeles can be a daunting task, starting with the sheer depth and breadth of the MSA.

As Los Angeles County Economic Development Corporation (LA EDC) President and CEO Lee Harrington pointed out, with some measure of insight and creativity, the beast can be tamed, at least to a meaningful degree. The formula is based first on an important business census, Harrington told the awards judges.

“The Business Census program, a partnership with the National Center for Business and Economic Research (NCBER) incorporates a systematic approach to real-time employer satisfaction data, market position and unmet needs intelligence, and public policy impacts assessment, combined with an early warning system of employer retention and expansion project opportunities,” Harrington explained.

The original concept for the business survey evolved from LA EDC's membership body which desired to employ a strategic business intelligence program to benefit them directly with market-position intelligence and at the same time support the LAEDC economic development mission.

With funding of $700,000 from key LAEDC sponsors, Union Bank, Marsh, Strategic Benefits Group, Wells Fargo, US Bank, CB Richard Ellis, and LA DWP, NCBER was selected to embark on this historic business census program.

“The program proved to be equally important and a win-win for both the LA EDC and its member sponsors in terms of recognition and unique business opportunities,” observed Harrington. “Exclusive market information and business intelligence was included. Real-time customer satisfaction data, market position intelligence, unmet needs intelligence, dynamic market feedback and public relations are also part of the mix.”

Additional information of benefit to sponsor-members included: reliable intelligence on how customers rate products, market needs of products and services by industry, area and company size, niche market feedback, and promotion of sponsor's name throughout the business census.

More than 5,000 of Los Angeles County's 25,000 employers, with 25 or more employees, participated in the initial census focusing on a detailed conversation limited to C-Suite level employer representatives.

Business operating issues identified included financing, training, state and local regulation, skilled labor availability, availability of new facilities, revenue enhancement, cost control, energy, incentives, taxation, workers compensation, and foreign competition.

“As of July 2005, 39 of a total of eighty-three 83 ongoing business expansion-retention projects, identified by the census, have resulted in the saving or adding 3,927 jobs,” Harrington related. “Using local economic impact formulas these 3,927 jobs can be translated to an annual salary impact of $137.5 million and an annual fiscal (tax) benefit of $7.2 million on the local economy.”

The census findings have led to a heightened focus on employer needs and business climate generally and a specific focus on Southern California manufacturing, Harrington added. “While manufacturing in LA County pays $44,000 per year compared to an overall average wage of $35,000, state and local policy makers have created a business climate which discourages manufacturing employment. Results of the Business Census indicate manufacturers are the least likely of all sectors to add employees, opting for equipment and technology investments to reduce costs and increase productivity.”

Other findings included greatest job growth in finance, construction, technology, business services and services. Also, availability of skilled labor and recruiting and retention of employees was major issue for most businesses at 89%. The manufacturing sector is hardest hit by government regulations and taxes. Almost half (48%) of Southern California manufacturers are exporting, and 44% are importing. “This activity is placing increased emphasis on the supply chain and goods movement. The LAEDC and Subsidiary World Trade Centers Los Angeles and Long Beach are expending initiatives to address the opportunities and challenges,” Harrington said.

The Business Census has led to further research and a publication of “Recapturing the Dream: A Winning Strategy for the LA Region,” authored by LA EDC Chief Economist, Jack Kyser and Joel Kotkin, Irvine Senior Fellow, Los Angeles County Economists and Senior Fellows. “This publication and the momentum generated have led to creation of LA EDC's Southern California Leadership Council,” Harrington informed the judges. The Southern California Leadership Council is a business-led and funded public policy partnership for the Southern California region. “The Council provides proactive leadership for a strong economy; a vital business environment and a better qualify of life for everyone who lives here.”

Founded in 2005, as a voice for the region's business community and like-minded individuals to focus and combine their efforts, the Leaderships Council's objective is help enable public sector officials, policy makers and other civic leaders to address and solve public policy issues critical to the region's economic vitality and quality of Life.

The Council, initially chaired by former Governor Pete Wilson, will lead the identification of key public policy issues and set specific public policy initiatives.