AGENDA During the COVID19 pandemic, no physical location will be provided for this meeting. The meeting will instead be live streamed from remote locations as allowed by SB 1031, 25 O.S. Supp. 2020 §307.1(C). Instructions on how to join the meeting can be found on the second page of this agenda.
April 27, 2021 3:00 PM
TRUST MEMBERS Vacant Rhonda Hooper, Vice Chair Jim Roth Todd Stone Miriam Campos
Craig Freeman, General Manager Catherine O'Connor, Surrogate General Manager
Amy K. Simpson, Secretary Wiley Williams, Deputy Municipal Counselor Phone: 13462487799 (cell phone) Toll Free: 18884754499 or 18778535257 (land line) Webinar URL: https://okc.zoom.us/j/92917451035 Webinar ID: 929 1745 1035 All members will be attending via Video Conference
Oklahoma City Economic Development Trust Participant Instructions
The City encourages participation in the public meeting from the residents of Oklahoma City. The City Council Chamber will be closed and the only alternative to participate in the meeting will be by Zoom. Below are instructions on how to access to the meeting, request to speak on certain agenda items and how to request to speak under Comments from Citizens. To participate in the meeting via ZOOM, go to meeting URL: https://okc.zoom.us/j/92917451035
When prompted, enter Webinar ID: 929 1745 1035 To participate in the meeting by cell phone, call 13462487799. To participate by land line toll free, call 18884754499 or 18778535257. To speak on a certain agenda item, place a call in advance of the meeting to 4052972245 or text 405 2197987 or email [email protected]. Include your name, the agenda item number and the reason you would like to speak (protest, representing applicant, i.e.). Please submit your request prior to the beginning of the meeting to avoid receiving your request after your item has been considered. City staff will attempt to submit requests received during the meeting to process them to the meeting Chair.
The Chair will announce at the beginning of the meeting that if connections are lost, the City will attempt to restore communications for a maximum of ____minutes and if communications cannot be restored, the meeting will reconvene at a certain date, time and place. If you are disconnected, please try again before calling 4052972245.
INFORMATION ABOUT OCEDT TRUST MEETINGS
The Oklahoma City Economic Development Trust (OCEDT) generally meets on a monthly basis in the Council Chamber at City Hall unless prior notice of a change is posted. If Council or another City Trust is in session, the OCEDT meeting will be held in the Executive Conference room (same floor). To confirm meeting dates, call (405) 2972245. It is the policy of the City to ensure that communications with participants and members of the public with disabilities are as effective as communications with others. Anyone with a disability who requires an accommodation, a modification of policies or procedures, or an auxiliary aid or server in order to participate in this meeting should contact the ADA department coordinator at 2972506 or TDD 297 2020 as soon as possible but not later than 48 hours (not including weekends or holidays) before the scheduled meeting. The department will give primary consideration to the choice of auxiliary aid or service requested by the individual with disability. If you need an alternate format of the agenda or any information provided at said meeting, please contact the ADA department coordinator listed above 48 hours prior to the scheduled meeting. Addressing the Trust Citizens may address the Trust on certain items by signing up to speak and providing the agenda item number and reason for appearing, but all comments must be relevant to the item. Citizens may also address the Trust on individual concerns at the end of the agenda when the Chairman asks if there are any comments by citizens. Comments should concern OCEDT matters. The Chair or presiding officer may in her or his discretion prohibit a person from addressing the Trust, or have any person removed from the Council Chamber, if that person commits any disorderly or disruptive behavior, which includes without limitation any of the following: speaking without being recognized by the Chair or presiding officer; continuing to speak after notice that the speaker’s allotted time has expired; presenting comments or material not relevant to the item under discussion; failing to comply with the lawful instructions of the Chair or presiding officer; engaging in other conduct, activity or speech that delays, disrupts or interferes with the effective or timely conduct of the meeting. A person may also be subject to arrest and removal from the Municipal Building if she or he violated Oklahoma City Municipal Code 2020, § 3081 – Disorderly conduct. PLEASE LIMIT YOUR COMMENTS TO 3 MINUTES. If you know in advance that you wish to address the Trust, you may call 2972245 and provide your name and subject about which you wish to speak. Trust Actions Official action can be taken only on items that appear on the agenda. The Trust may dispose of business on the agenda by adopting, approving, amending, correcting, ratifying, denying, deferring or continuing resolutions, plans and specifications, addenda, amendments and contracts. Other actions may also be taken. When more information is needed to act on an item, the Trust may refer items to the General Manager or Legal Counsel. The Trust may also refer items to committees of the Trust, to a board or commission, or to independent consultants for additional study. Under certain circumstances, items are stricken from the agenda entirely or no action of any kind is taken. For more information about the Oklahoma City Economic Development Trust, call 2972245.
AGENDA Oklahoma City Economic Development Trust April 27, 2021 3:00 PM
I. Call to Order
II. Election of Chair
III. Approval of Minutes March 30, 2021 Oklahoma City Economic Development Trust Meeting
IV. Ratify OCEDT Claims
V. Items for Individual Consideration
A. Final Acceptance with the Oklahoma City Water Utilities Trust, the City of Oklahoma City, and RDNJ, LLC dba ATech Paving, Project PC0399(17), WC0915 Downtown Streetscape Project Bid Package 8, Broadway Avenue from Main Street to Robert S. Kerr Avenue, Main Street from Broadway to Robinson Avenue, Robert S. Kerr Avenue from North Walker Avenue to North Hudson Avenue; accepting the project and placing the maintenance bond into effect. (TIF)
B. Economic Development Agreement with Skydweller Aero Inc. in exchange for locating its Headquarters facility in Oklahoma City and for its commitment to create approximately 75 new quality jobs, not to exceed $275,000. (GOLT)
C. Oklahoma City Economic Development Foundation FY21 3rd Quarter Report (GENED)
VI. General Manager Reports
VII. Comments from Staff, Trustees and Citizens
VIII. Adjourn AGENDA During the COVID19 pandemic, no physical location will be provided for this meeting. The meeting will instead be live streamed from remote locations as allowed by SB 1031, 25 O.S. Supp. 2020 §307.1(C). Instructions on how to join the meeting can be found on the second page of this agenda.
April 27, 2021 3:00 PM
TRUST MEMBERS Vacant Rhonda Hooper, Vice Chair Jim Roth Todd Stone Miriam Campos
Craig Freeman, General Manager Catherine O'Connor, Surrogate General Manager
Amy K. Simpson, Secretary Wiley Williams, Deputy Municipal Counselor Phone: 13462487799 (cell phone) Toll Free: 18884754499 or 18778535257 (land line) Webinar URL: https://okc.zoom.us/j/92917451035 Webinar ID: 929 1745 1035 All members will be attending via Video Conference
Oklahoma City Economic Development Trust Participant Instructions
The City encourages participation in the public meeting from the residents of Oklahoma City. The City Council Chamber will be closed and the only alternative to participate in the meeting will be by Zoom. Below are instructions on how to access to the meeting, request to speak on certain agenda items and how to request to speak under Comments from Citizens. To participate in the meeting via ZOOM, go to meeting URL: https://okc.zoom.us/j/92917451035
When prompted, enter Webinar ID: 929 1745 1035 To participate in the meeting by cell phone, call 13462487799. To participate by land line toll free, call 18884754499 or 18778535257. To speak on a certain agenda item, place a call in advance of the meeting to 4052972245 or text 405 2197987 or email [email protected]. Include your name, the agenda item number and the reason you would like to speak (protest, representing applicant, i.e.). Please submit your request prior to the beginning of the meeting to avoid receiving your request after your item has been considered. City staff will attempt to submit requests received during the meeting to process them to the meeting Chair.
The Chair will announce at the beginning of the meeting that if connections are lost, the City will attempt to restore communications for a maximum of ____minutes and if communications cannot be restored, the meeting will reconvene at a certain date, time and place. If you are disconnected, please try again before calling 4052972245.
INFORMATION ABOUT OCEDT TRUST MEETINGS
The Oklahoma City Economic Development Trust (OCEDT) generally meets on a monthly basis in the Council Chamber at City Hall unless prior notice of a change is posted. If Council or another City Trust is in session, the OCEDT meeting will be held in the Executive Conference room (same floor). To confirm meeting dates, call (405) 2972245. It is the policy of the City to ensure that communications with participants and members of the public with disabilities are as effective as communications with others. Anyone with a disability who requires an accommodation, a modification of policies or procedures, or an auxiliary aid or server in order to participate in this meeting should contact the ADA department coordinator at 2972506 or TDD 297 2020 as soon as possible but not later than 48 hours (not including weekends or holidays) before the scheduled meeting. The department will give primary consideration to the choice of auxiliary aid or service requested by the individual with disability. If you need an alternate format of the agenda or any information provided at said meeting, please contact the ADA department coordinator listed above 48 hours prior to the scheduled meeting. Addressing the Trust Citizens may address the Trust on certain items by signing up to speak and providing the agenda item number and reason for appearing, but all comments must be relevant to the item. Citizens may also address the Trust on individual concerns at the end of the agenda when the Chairman asks if there are any comments by citizens. Comments should concern OCEDT matters. The Chair or presiding officer may in her or his discretion prohibit a person from addressing the Trust, or have any person removed from the Council Chamber, if that person commits any disorderly or disruptive behavior, which includes without limitation any of the following: speaking without being recognized by the Chair or presiding officer; continuing to speak after notice that the speaker’s allotted time has expired; presenting comments or material not relevant to the item under discussion; failing to comply with the lawful instructions of the Chair or presiding officer; engaging in other conduct, activity or speech that delays, disrupts or interferes with the effective or timely conduct of the meeting. A person may also be subject to arrest and removal from the Municipal Building if she or he violated Oklahoma City Municipal Code 2020, § 3081 – Disorderly conduct. PLEASE LIMIT YOUR COMMENTS TO 3 MINUTES. If you know in advance that you wish to address the Trust, you may call 2972245 and provide your name and subject about which you wish to speak. Trust Actions Official action can be taken only on items that appear on the agenda. The Trust may dispose of business on the agenda by adopting, approving, amending, correcting, ratifying, denying, deferring or continuing resolutions, plans and specifications, addenda, amendments and contracts. Other actions may also be taken. When more information is needed to act on an item, the Trust may refer items to the General Manager or Legal Counsel. The Trust may also refer items to committees of the Trust, to a board or commission, or to independent consultants for additional study. Under certain circumstances, items are stricken from the agenda entirely or no action of any kind is taken. For more information about the Oklahoma City Economic Development Trust, call 2972245.
AGENDA Oklahoma City Economic Development Trust April 27, 2021 3:00 PM
I. Call to Order
II. Election of Chair
III. Approval of Minutes March 30, 2021 Oklahoma City Economic Development Trust Meeting
IV. Ratify OCEDT Claims
V. Items for Individual Consideration
A. Final Acceptance with the Oklahoma City Water Utilities Trust, the City of Oklahoma City, and RDNJ, LLC dba ATech Paving, Project PC0399(17), WC0915 Downtown Streetscape Project Bid Package 8, Broadway Avenue from Main Street to Robert S. Kerr Avenue, Main Street from Broadway to Robinson Avenue, Robert S. Kerr Avenue from North Walker Avenue to North Hudson Avenue; accepting the project and placing the maintenance bond into effect. (TIF)
B. Economic Development Agreement with Skydweller Aero Inc. in exchange for locating its Headquarters facility in Oklahoma City and for its commitment to create approximately 75 new quality jobs, not to exceed $275,000. (GOLT)
C. Oklahoma City Economic Development Foundation FY21 3rd Quarter Report (GENED)
VI. General Manager Reports
VII. Comments from Staff, Trustees and Citizens
VIII. Adjourn AGENDA During the COVID19 pandemic, no physical location will be provided for this meeting. The meeting will instead be live streamed from remote locations as allowed by SB 1031, 25 O.S. Supp. 2020 §307.1(C). Instructions on how to join the meeting can be found on the second page of this agenda.
April 27, 2021 3:00 PM
TRUST MEMBERS Vacant Rhonda Hooper, Vice Chair Jim Roth Todd Stone Miriam Campos
Craig Freeman, General Manager Catherine O'Connor, Surrogate General Manager
Amy K. Simpson, Secretary Wiley Williams, Deputy Municipal Counselor Phone: 13462487799 (cell phone) Toll Free: 18884754499 or 18778535257 (land line) Webinar URL: https://okc.zoom.us/j/92917451035 Webinar ID: 929 1745 1035 All members will be attending via Video Conference
Oklahoma City Economic Development Trust Participant Instructions
The City encourages participation in the public meeting from the residents of Oklahoma City. The City Council Chamber will be closed and the only alternative to participate in the meeting will be by Zoom. Below are instructions on how to access to the meeting, request to speak on certain agenda items and how to request to speak under Comments from Citizens. To participate in the meeting via ZOOM, go to meeting URL: https://okc.zoom.us/j/92917451035
When prompted, enter Webinar ID: 929 1745 1035 To participate in the meeting by cell phone, call 13462487799. To participate by land line toll free, call 18884754499 or 18778535257. To speak on a certain agenda item, place a call in advance of the meeting to 4052972245 or text 405 2197987 or email [email protected]. Include your name, the agenda item number and the reason you would like to speak (protest, representing applicant, i.e.). Please submit your request prior to the beginning of the meeting to avoid receiving your request after your item has been considered. City staff will attempt to submit requests received during the meeting to process them to the meeting Chair.
The Chair will announce at the beginning of the meeting that if connections are lost, the City will attempt to restore communications for a maximum of ____minutes and if communications cannot be restored, the meeting will reconvene at a certain date, time and place. If you are disconnected, please try again before calling 4052972245.
INFORMATION ABOUT OCEDT TRUST MEETINGS
The Oklahoma City Economic Development Trust (OCEDT) generally meets on a monthly basis in the Council Chamber at City Hall unless prior notice of a change is posted. If Council or another City Trust is in session, the OCEDT meeting will be held in the Executive Conference room (same floor). To confirm meeting dates, call (405) 2972245. It is the policy of the City to ensure that communications with participants and members of the public with disabilities are as effective as communications with others. Anyone with a disability who requires an accommodation, a modification of policies or procedures, or an auxiliary aid or server in order to participate in this meeting should contact the ADA department coordinator at 2972506 or TDD 297 2020 as soon as possible but not later than 48 hours (not including weekends or holidays) before the scheduled meeting. The department will give primary consideration to the choice of auxiliary aid or service requested by the individual with disability. If you need an alternate format of the agenda or any information provided at said meeting, please contact the ADA department coordinator listed above 48 hours prior to the scheduled meeting. Addressing the Trust Citizens may address the Trust on certain items by signing up to speak and providing the agenda item number and reason for appearing, but all comments must be relevant to the item. Citizens may also address the Trust on individual concerns at the end of the agenda when the Chairman asks if there are any comments by citizens. Comments should concern OCEDT matters. The Chair or presiding officer may in her or his discretion prohibit a person from addressing the Trust, or have any person removed from the Council Chamber, if that person commits any disorderly or disruptive behavior, which includes without limitation any of the following: speaking without being recognized by the Chair or presiding officer; continuing to speak after notice that the speaker’s allotted time has expired; presenting comments or material not relevant to the item under discussion; failing to comply with the lawful instructions of the Chair or presiding officer; engaging in other conduct, activity or speech that delays, disrupts or interferes with the effective or timely conduct of the meeting. A person may also be subject to arrest and removal from the Municipal Building if she or he violated Oklahoma City Municipal Code 2020, § 3081 – Disorderly conduct. PLEASE LIMIT YOUR COMMENTS TO 3 MINUTES. If you know in advance that you wish to address the Trust, you may call 2972245 and provide your name and subject about which you wish to speak. Trust Actions Official action can be taken only on items that appear on the agenda. The Trust may dispose of business on the agenda by adopting, approving, amending, correcting, ratifying, denying, deferring or continuing resolutions, plans and specifications, addenda, amendments and contracts. Other actions may also be taken. When more information is needed to act on an item, the Trust may refer items to the General Manager or Legal Counsel. The Trust may also refer items to committees of the Trust, to a board or commission, or to independent consultants for additional study. Under certain circumstances, items are stricken from the agenda entirely or no action of any kind is taken. For more information about the Oklahoma City Economic Development Trust, call 2972245.
AGENDA Oklahoma City Economic Development Trust April 27, 2021 3:00 PM
I. Call to Order
II. Election of Chair
III. Approval of Minutes March 30, 2021 Oklahoma City Economic Development Trust Meeting
IV. Ratify OCEDT Claims
V. Items for Individual Consideration
A. Final Acceptance with the Oklahoma City Water Utilities Trust, the City of Oklahoma City, and RDNJ, LLC dba ATech Paving, Project PC0399(17), WC0915 Downtown Streetscape Project Bid Package 8, Broadway Avenue from Main Street to Robert S. Kerr Avenue, Main Street from Broadway to Robinson Avenue, Robert S. Kerr Avenue from North Walker Avenue to North Hudson Avenue; accepting the project and placing the maintenance bond into effect. (TIF)
B. Economic Development Agreement with Skydweller Aero Inc. in exchange for locating its Headquarters facility in Oklahoma City and for its commitment to create approximately 75 new quality jobs, not to exceed $275,000. (GOLT)
C. Oklahoma City Economic Development Foundation FY21 3rd Quarter Report (GENED)
VI. General Manager Reports
VII. Comments from Staff, Trustees and Citizens
VIII. Adjourn AGENDA During the COVID19 pandemic, no physical location will be provided for this meeting. The meeting will instead be live streamed from remote locations as allowed by SB 1031, 25 O.S. Supp. 2020 §307.1(C). Instructions on how to join the meeting can be found on the second page of this agenda.
April 27, 2021 3:00 PM
TRUST MEMBERS Vacant Rhonda Hooper, Vice Chair Jim Roth Todd Stone Miriam Campos
Craig Freeman, General Manager Catherine O'Connor, Surrogate General Manager
Amy K. Simpson, Secretary Wiley Williams, Deputy Municipal Counselor Phone: 13462487799 (cell phone) Toll Free: 18884754499 or 18778535257 (land line) Webinar URL: https://okc.zoom.us/j/92917451035 Webinar ID: 929 1745 1035 All members will be attending via Video Conference
Oklahoma City Economic Development Trust Participant Instructions
The City encourages participation in the public meeting from the residents of Oklahoma City. The City Council Chamber will be closed and the only alternative to participate in the meeting will be by Zoom. Below are instructions on how to access to the meeting, request to speak on certain agenda items and how to request to speak under Comments from Citizens. To participate in the meeting via ZOOM, go to meeting URL: https://okc.zoom.us/j/92917451035
When prompted, enter Webinar ID: 929 1745 1035 To participate in the meeting by cell phone, call 13462487799. To participate by land line toll free, call 18884754499 or 18778535257. To speak on a certain agenda item, place a call in advance of the meeting to 4052972245 or text 405 2197987 or email [email protected]. Include your name, the agenda item number and the reason you would like to speak (protest, representing applicant, i.e.). Please submit your request prior to the beginning of the meeting to avoid receiving your request after your item has been considered. City staff will attempt to submit requests received during the meeting to process them to the meeting Chair.
The Chair will announce at the beginning of the meeting that if connections are lost, the City will attempt to restore communications for a maximum of ____minutes and if communications cannot be restored, the meeting will reconvene at a certain date, time and place. If you are disconnected, please try again before calling 4052972245.
INFORMATION ABOUT OCEDT TRUST MEETINGS
The Oklahoma City Economic Development Trust (OCEDT) generally meets on a monthly basis in the Council Chamber at City Hall unless prior notice of a change is posted. If Council or another City Trust is in session, the OCEDT meeting will be held in the Executive Conference room (same floor). To confirm meeting dates, call (405) 2972245. It is the policy of the City to ensure that communications with participants and members of the public with disabilities are as effective as communications with others. Anyone with a disability who requires an accommodation, a modification of policies or procedures, or an auxiliary aid or server in order to participate in this meeting should contact the ADA department coordinator at 2972506 or TDD 297 2020 as soon as possible but not later than 48 hours (not including weekends or holidays) before the scheduled meeting. The department will give primary consideration to the choice of auxiliary aid or service requested by the individual with disability. If you need an alternate format of the agenda or any information provided at said meeting, please contact the ADA department coordinator listed above 48 hours prior to the scheduled meeting. Addressing the Trust Citizens may address the Trust on certain items by signing up to speak and providing the agenda item number and reason for appearing, but all comments must be relevant to the item. Citizens may also address the Trust on individual concerns at the end of the agenda when the Chairman asks if there are any comments by citizens. Comments should concern OCEDT matters. The Chair or presiding officer may in her or his discretion prohibit a person from addressing the Trust, or have any person removed from the Council Chamber, if that person commits any disorderly or disruptive behavior, which includes without limitation any of the following: speaking without being recognized by the Chair or presiding officer; continuing to speak after notice that the speaker’s allotted time has expired; presenting comments or material not relevant to the item under discussion; failing to comply with the lawful instructions of the Chair or presiding officer; engaging in other conduct, activity or speech that delays, disrupts or interferes with the effective or timely conduct of the meeting. A person may also be subject to arrest and removal from the Municipal Building if she or he violated Oklahoma City Municipal Code 2020, § 3081 – Disorderly conduct. PLEASE LIMIT YOUR COMMENTS TO 3 MINUTES. If you know in advance that you wish to address the Trust, you may call 2972245 and provide your name and subject about which you wish to speak. Trust Actions Official action can be taken only on items that appear on the agenda. The Trust may dispose of business on the agenda by adopting, approving, amending, correcting, ratifying, denying, deferring or continuing resolutions, plans and specifications, addenda, amendments and contracts. Other actions may also be taken. When more information is needed to act on an item, the Trust may refer items to the General Manager or Legal Counsel. The Trust may also refer items to committees of the Trust, to a board or commission, or to independent consultants for additional study. Under certain circumstances, items are stricken from the agenda entirely or no action of any kind is taken. For more information about the Oklahoma City Economic Development Trust, call 2972245.
AGENDA Oklahoma City Economic Development Trust April 27, 2021 3:00 PM
I. Call to Order
II. Election of Chair
III. Approval of Minutes March 30, 2021 Oklahoma City Economic Development Trust Meeting
IV. Ratify OCEDT Claims
V. Items for Individual Consideration
A. Final Acceptance with the Oklahoma City Water Utilities Trust, the City of Oklahoma City, and RDNJ, LLC dba ATech Paving, Project PC0399(17), WC0915 Downtown Streetscape Project Bid Package 8, Broadway Avenue from Main Street to Robert S. Kerr Avenue, Main Street from Broadway to Robinson Avenue, Robert S. Kerr Avenue from North Walker Avenue to North Hudson Avenue; accepting the project and placing the maintenance bond into effect. (TIF)
B. Economic Development Agreement with Skydweller Aero Inc. in exchange for locating its Headquarters facility in Oklahoma City and for its commitment to create approximately 75 new quality jobs, not to exceed $275,000. (GOLT)
C. Oklahoma City Economic Development Foundation FY21 3rd Quarter Report (GENED)
VI. General Manager Reports
VII. Comments from Staff, Trustees and Citizens
VIII. Adjourn
Minutes Oklahoma City Economic Development Trust March 30, 2021 3:00 PM
The meeting agenda via videoconference was posted on okc.gov at 2:48 p.m. on March 25, 2021. Staff announced if the videoconference is disconnected any time during the meeting, the meeting shall be stopped and reconvened once the audio connection is restored. If communication is unable to be restored with 15 minutes, the meeting will reconvene on March 30, 2021 at 5:00 P.M. by videoconference.
I. Call to Order at 3:03 p.m. Trustees Present: Larry McAtee, Todd Stone, Rhonda Hooper, Jim Roth, and Miriam Campos
Trustees Absent: None
II. Resolution Thanking and Commending Larry McAtee for his dedicated service to the Oklahoma City Economic Development Trust
ADOPTED. MOVED BY HOOPER, SECONDED BY ROTH AYES: MCATEE, HOOPER, ROTH, STONE, CAMPOS
III. Approval of Minutes February 16, 2021 Oklahoma City Economic Development Trust Meeting
APPROVED. MOVED BY ROTH, SECONDED BY STONE AYES: MCATEE, HOOPER, ROTH, STONE. ABSENT: CAMPOS
IV. Ratify OCEDT Claims
RATIFIED. MOVED BY HOOPER, SECONDED BY ROTH AYES: MCATEE, HOOPER, ROTH, STONE, CAMPOS
V. Items for Individual Consideration
A. Resolution approving Boathouse Bark LLC as the developer for the Bar K Dog Park Project. (TIF)
ADOPTED. MOVED BY ROTH, SECONDED BY HOOPER AYES: MCATEE, HOOPER, ROTH, STONE, CAMPOS B. Second Addendum to the Economic Development Agreement for Redevelopment of Lantana Apartments, now known as Hartford at 10th Apartments, 7408 NW 10th Street. (GEN-ED)
APPROVED. MOVED BY ROTH, SECONDED BY CAMPOS AYES: MCATEE, HOOPER, ROTH, STONE, CAMPOS C. Acceptance of the Deeds of Declaration of Covenants for Parcel R-133204040 and Parcel R-133204050, related to the Homeland Grocery Store Project, located at the northeast corner of North Lincoln Boulevard and NE 36th Street. (TIF)
APPROVED. MOVED BY HOOPER, SECONDED BY STONE AYES: MCATEE, HOOPER, ROTH, STONE, CAMPOS D. Economic Development Agreement with Corken Inc. in exchange for locating a headquarters facility and manufacturing operations in Oklahoma City and for its commitment to create approximately 120 new quality jobs, not to exceed $300,000, 9201 North I-35 Service Road. (GOLT)
APPROVED. MOVED BY HOOPER, SECONDED BY CAMPOS AYES: MCATEE, HOOPER, ROTH, STONE, CAMPOS E. Final Plans and Specifications to be advertised for bids, Project MB-1540, Myriad Gardens Crystal Bridge Renovation. (TIF)
APPROVED AND AUTHORIZED MOVED BY ROTH, SECONDED BY STONE AYES: MCATEE, HOOPER, ROTH, STONE, CAMPOS F. Alliance for Economic Development of Oklahoma City FY2020/2021 1st and 2nd Quarter Report. (GOLT) (TIF)
APPROVED. MOVED BY ROTH, SECONDED BY STONE AYES: MCATEE, HOOPER, ROTH, STONE, CAMPOS
VI. General Manager Reports
VII. Comments from Staff, Trustees and Citizens
VIII. Adjourn 3:42 p.m.
______Larry McAtee, Chairman Catherine O’ Connor, Surrogate General Manager
______Amy K. Simpson, Secretary
OCEDT Agenda Item No. IV. 4/27/2021
TO: Chairman and Trustees of the Oklahoma City Economic Development Trust
FROM: Craig Freeman, General Manager
SUBJECT: Ratify OCEDT Claims
Attached are the OCEDT payments for the period from March 26, 2021 through April 21, 2021 which includes Dockets 39-41 of Fiscal Year 2021. Staff will be available should you have any questions.
Recommendation: Ratify OCEDT Claims.
Attachment
Docket Voucher Fund Op. Unit Project Fund Type Vendor Description Amount 39 00001771 120 5930 ED0940 GEN-ED OKC Outlets I LLC Regional Marketing Reimbursement Nov. 2020 - Jan. 2021 179,845.13 40 00001773 100 5200 ED0200 TIF Alliance for Economic Development of FY21 Professional Services: TIF 2 17,925.62 40 00000047 100 5230 ED0270 TIF Oklahoma City Public Schools I-89 Clara Luper Center Capital Project 194,470.28 40 00001773 100 5400 ED0400 TIF Alliance for Economic Development of FY21 Professional Services: TIF 4 3,121.12 40 00001773 100 5800 ED0800 TIF Alliance for Economic Development of FY21 Professional Services: TIF 8 3,567.00 40 00001773 110 5709 ED0100 GOLT Alliance for Economic Development of FY21 Professional Services: GOLT 11,636.25 40 00001775 120 5920 ED0920 GEN-ED Myriad Gardens Foundation FY21 Lease and Management Fee 205,629.17 40 00001774 120 5970 ED0970 GEN-ED Scissortail Park Foundation Inc FY21 Lease and Management Fee 262,735.42 41 00001930 100 5815 ED0851 TIF Oklahoma County Oklahoma County Annex Project 232,276.16 41 ICV0158866 130 5356 ED0259 TIF TIF 2 CCH Debt Serv FY22 FY22 Debt Service on Convention Center Hotel Bonds 5,969,619.00
Total $7,080,825.15
\\ci.okc\okc\FI-Admin\Econ Development Trust\Trust Meetings\2021\4 - April 27, 2021\Docket_Summary_Listing_04-27-21 1 of 1 OCEDT Agenda Item No. V.A. 4/27/2021
TO: Chairman and Trustees of the Oklahoma City Economic Development Trust
FROM: Craig Freeman, General Manager
Final Acceptance with the Oklahoma City Water Utilities Trust, the City of Oklahoma City, and RDNJ, LLC dba A-Tech Paving, Project PC-0399(17), WC-0915 Downtown Streetscape Project Bid Package 8, Broadway Avenue from Main Street to Robert S. Kerr Avenue, Main Street from Broadway to Robinson Avenue, Robert S. Kerr Avenue from North Walker Avenue to North Hudson Avenue; accepting the project and placing the maintenance bond into effect. (TIF)
Location: Broadway Avenue from Main Street to Robert S. Kerr Avenue Main Street from Broadway to Robinson Avenue Robert S. Kerr Avenue from North Walker Avenue to North Hudson Avenue
Background: Project 180 provided for approximately 13 streetscape and street improvement projects in downtown Oklahoma City. These projects were phased and bid in accordance with the Tax Increment Finance District No. 8 priority list during the period 2016-2018. This phase of the Tax Increment Finance District No. 8 provided for street improvements at the above location, including but not limited to; reconstruction from face of building or property line to face of building or property line, and exterior planting areas; landscaping for streetscape and adjacent areas; hardscape elements, including paving, lighting, bike racks, tree grates, trash receptacles, benches, and related site specialty elements.
The Oklahoma City Water Utilities Trust (OCWUT) funded the WC-0915 portion of this project.
This project has been built according to the project plans and specifications and is ready for final acceptance.
Hudson Insurance Company is the surety company for the two-year maintenance Bond No. HICSW-10-A217-0157
Engineer: Smith Roberts Baldischwiler, LLC
Contractor: RDNJ, LLC dba A-Tech Paving
6 8 5 8 Final Inspection: Regular inspections were conducted over the duration of this project. The final inspection was held on March 5, 2020. The following individuals were present:
John Phillips, RDNJ, LLC dba A-Tech Paving Felix Arndt, RDNJ, LLC dba A-Tech Paving Red Chambers, Traffic & Lighting Systems, LLC Craig Wallace, Smith Roberts Baldischwiler, LLC Robbie Witt, Public Works Department/Field Services Scott Hodgden, Public Works Department/Field Services Ken Bull, Public Works Department/Field Services Travis Owen, Public Works/Field Services Bill West, Public Works/Field Services Chad Harrison, Public Works Department/Engineering
Final Claim: PC-0399(17) $ 136,387.83 WC-0915 $ 11,236.75
Final Construction Cost: PC-0399(17) $ 1,990,057.49 WC-0915 $ 224,735.00 TOTAL $ 2,214,792.49
Source of Funds: Oklahoma City Economic Development Trust –TIF Fund – TIF 8 2013 Series B Project – OKC Economic Development Trust – Project 180 Streetscape #8 - Construction in Progress (OCEDT – 100 – 5800 – 0400599 – ED0859 – 54040007) Total Allocation to Date: $ 1,990,057.49
OCWUT-Water Facility Fund-Water Trust Capital-Transmission Mains-Project WC-0915- Construction in Progress (360-3060-3901600-06140-WC-0915-54040007) Total Allocation to Date: $ 224,735.00
Recommendation: Project be accepted; and maintenance bond be placed in effect.
6 8 5 8 OCEDT Agenda Item No.V.B. 4/27/2021
TO: Chairman and Trustees of the Oklahoma City Economic Development Trust
FROM: Craig Freeman, General Manager
Economic Development Agreement with Skydweller Aero Inc. in exchange for locating its Headquarters facility in Oklahoma City and for its commitment to create approximately 75 new quality jobs, not to exceed $275,000. (GOLT)
Location: The Company’s Headquarter facility will be located in Downtown Oklahoma City, the Innovation District and/or within Oklahoma City limits
Background: The Company plans to add 75 new jobs in Oklahoma City over the next five (5) years. These jobs reflect a new business presence in Oklahoma City by the Company. The average wage of these new jobs is estimated to be $87,000. After evaluating options for the location of this business unit, Skydweller Aero Inc. decided to lease an existing building in Oklahoma City due to the business environment, leadership, thriving aerospace engineering community, and availability of state and local business incentives.
Company Background Skydweller was founded in 2017. It conducted its Series A investment round in September 2019 and launched full scale operations. Its current company headquarters is in Alexandria, Virginia and it has a Spanish Subsidiary. The company plans to move its company worldwide headquarters to Oklahoma, as well as its US subsidiary.
Skydweller is pursuing the development of large renewably powered, unmanned aircraft for commercial communications and government surveillance. Skydweller currently employs roughly 70 engineers in Spain and 5 engineers in the US.
Project Background The Greater Oklahoma City Chamber and the City have worked with the Company since January 2020. In evaluating its location options for their headquarters facility, Company management met with City and Chamber staff to discuss the needs of their planned operation. Based in part upon local incentives (city and state), the Company has decided to locate this operation in Oklahoma City.
Economic Impact The total estimated economic impact of this project is $229,960,145 over the first seven (7) years
7 2 2 2 of operation (based on total project impact, including capital investment, wages, state and local taxes). The estimated local sales tax and property tax revenue is expected to be $276,757 over the first seven (7) years of operation and $61,039 annually from the seventh year forward.
Recommended SIP offer: $275,000 The Greater Oklahoma City Chamber Economic Development Division recommends a local incentive package of up to $275,000 based on the following information provided by the Company:
•Incentive based on the creation of 75 new jobs over five (5) years. •Estimated average annual wage of $100,000 (first year wage) to $87,000 (third year wage). •Estimated first year additional payroll of $900,000, ramping up to $6.5 million by the end of the seventh year. •Total capital investment of $475,000. •The Oklahoma City facility will support the Company’s worldwide headquarters requirements. •The Company is in the aerospace industry, one of our targeted industries. Additionally, it is within a new aerospace subsector - unmanned aircraft - and it is also in the renewables industry. •The Company is high-tech and will offer several highly paid jobs, primarily engineering roles.
The Company considered a number of alternative locations for these jobs. The state and local incentives were important in positioning Oklahoma City as a competitive location for this operation.
The maximum incentive amount of $275,000 anticipates that the Company locates their Headquarters in the Downtown area or in the Innovation District. If the Company locates elsewhere in Oklahoma City, the maximum incentive amount is $215,000.
Approval of the agreement outlines the job creation and private investment requirements of Skydweller Aero Inc. and the Oklahoma City Economic Development Trust.
Cost: Not to exceed $275,000
Source of Funds: OCEDT - GOLT Fund - ED Operations-Rstr - OKC Economic Development Trust - Skydweller - Economic Development Contract (OCEDT - 110 - 5709 - 0400599 – ED0177 - 52010030)
Recommendation: Agreement be approved.
7 2 2 2
ECONOMIC DEVELOPMENT AGREEMENT
by and between the
OKLAHOMA CITY ECONOMIC DEVELOPMENT TRUST, a public trust,
and
SKYDWELLER AERO, INC., a Delaware corporation
Economic Development Agreement with Skydweller Aero, Inc.
THIS ECONOMIC DEVELOPMENT AGREEMENT (“Agreement”) made and entered into as of this day of , 2021 (the later date of approval by the Trust or concurrence by The City of Oklahoma City (“The City”); the “Effective Date”), by and between the Oklahoma City Economic Development Trust (“OCEDT” or “Trust”), an Oklahoma public trust, and Skydweller Aero, Inc. (“Skydweller”), a Delaware corporation.
WITNESSETH:
WHEREAS, The City of Oklahoma City is an Oklahoma municipal corporation operating under a City Charter and the laws of the State of Oklahoma; and
WHEREAS, OCEDT, a public trust whose sole beneficiary is The City, was created in part for the purpose to promote and assist The City with economic and community development and redevelopment projects, in particular those projects which involve substantial capital investments and the creation and retainage of jobs and employment opportunities within Oklahoma City; and
WHEREAS, The City and OCEDT have determined that it is in the best interest of The City and its citizens to promote, and when deemed appropriate, incentivize economic and community development and redevelopment; and
WHEREAS, The City and OCEDT wish to support redevelopment and investment in the urban core of the City by providing assistance in the form of job creation incentives that make possible the creation and retainage of new-to-market jobs, which in turn spur additional investments, developments, redevelopments, and economic growth within The City; and
WHEREAS, The City and OCEDT created a local economic development incentive program (the Strategic Investment Program or “SIP”) in November 2007 to provide job creation incentives using proceeds from a $75 million general obligation limited tax bond issue authorized under 62 Okla. Stat. § 800, et seq. (“Municipal and County Economic and Community Development Bonds Act”), and approved by the voting citizens of Oklahoma City for economic and community development purposes; and
WHEREAS, the Greater Oklahoma City Chamber of Commerce (“Chamber”), in the exercise of its obligations under its agreement with The City and OCEDT to identify and promote new business opportunities, along with the expansion of existing business within Oklahoma City, has assisted OCEDT in searching for and recruiting companies interested in expanding operations and jobs and/or relocating their business operations into Oklahoma City and who meet the criteria established under the Strategic Investment Program; and
WHEREAS, the Chamber received an application for economic incentives from Skydweller in conformance with The City’s and OCEDT’s Strategic Investment Program; and
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WHEREAS, Skydweller is a multi-national aerospace company with a presence in both Spain and the United States that develops renewably powered aircraft, including drones, for defense and commercial industries; and
WHEREAS, Skydweller was founded in 2017 and has offices in the Washington, D.C., area, Madrid, and Valdepeñas, Spain; and
WHEREAS, Skydweller is locating its Headquarters to Oklahoma City and will be recruiting top-tier aerospace and engineering talent to further the development and deployment of their ultra-persistent, unmanned aircraft over the coming years; and
WHEREAS, prior to meeting with City and Chamber staff to discuss the needs of its expansion and development of its Headquarters office, Skydweller considered multiple locations including Mississippi, Alabama, and New Mexico, and chose Oklahoma as its new home because Oklahoma is home to innovative technology across all industries and is considered to have a skilled workforce; and
WHEREAS, based largely on the availability of state and local incentives and the positive attributes of Oklahoma City and its business community, including low utility and occupancy costs, the company has decided to locate its Headquarters in Oklahoma City at one of several locations under consideration; and
WHEREAS, Skydweller’s application with the Chamber provides that it intends to add 75 new-to-market jobs at its Headquarters over a five-year period; and
WHEREAS, Skydweller plans to lease space and to invest or cause the investment of approximately $475,000 in leasehold/capital improvements and furniture, fixtures, and equipment over the next two to three years; and
WHEREAS, Skydweller’s application to the Chamber further reflects that the company anticipates the average first year wage for the new jobs will be around $100,000; and
WHEREAS, based in part on the number of jobs that will be created by Skydweller, and in part on the investment anticipated by Skydweller in Oklahoma City, City staff recommended that OCEDT and The City allocate up to $275,000 ($275,000 if Skydweller locates in the Downtown area or in the Innovation District, and $215,000 if Skydweller locates elsewhere in Oklahoma City) from the General Obligation Limited Tax bond proceeds and/or investment income for a proposed Economic Development Agreement with Skydweller; and
WHEREAS, on August 18, 2020, OCEDT received information from the application Skydweller submitted to the Greater Oklahoma City Chamber Economic Development Division for economic incentives under the Strategic Investment Program; and
WHEREAS, based on the information presented at its August 18, 2020 meeting, OCEDT recommended and approved an allocation of up to $275,000 from the General Obligation Limited
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Tax bond proceeds and/or investment income, which allocation was subsequently approved by the Mayor and City Council of The City on September 15, 2020; and
WHEREAS, upon approval of the $275,000 allocation, OCEDT and The City also authorized and directed staff to negotiate a job creation economic development agreement (“EDA” or “Agreement”) with Skydweller for subsequent OCEDT consideration and approval and City concurrence; and
WHEREAS, Skydweller, for purposes of this Agreement and in contemplation of the receipt of certain economic job creation incentives, has announced its intent to locate its Headquarters in Oklahoma City and its intent to create and fill up to 75 new-to-market jobs over the next five years to develop renewably powered aircraft; and
WHEREAS, the new-to-market jobs will be filled with full-time, benefit enhanced employees who will work at Skydweller’s Oklahoma City Headquarters location; and
WHEREAS, Skydweller’s new-to-market jobs, when the annual paid salaries are averaged over the fiscal year period, will result in an estimated average annual salary of $100,000 during the first year; and
WHEREAS, the estimated first year payroll attributable to the Oklahoma City Location is estimated to be around $900,000, which is expected to grow to over $6,000,000 by the end of the fifth year of operation; and
WHEREAS, the creation of approximately 75 new-to-market jobs and the capital investment of $475,000 is expected to generate additional new property and sales taxes for The City; and
WHEREAS, Skydweller’s announcement and application meet the criteria for consideration for a job creation incentive under the Strategic Investment Program; and
WHEREAS, as directed by the Trust, staff has engaged in discussions with Skydweller and negotiated this Economic Development Agreement for consideration by the Trust and for consideration of concurrence by the City Council; and
WHEREAS, the Trust deems it appropriate to approve the execution of this Economic Development Agreement which provides for implementation of the Skydweller Headquarters Project because approval of the Skydweller Headquarters Project is in the best interest of The City and will result in a benefit to the health, safety, and welfare of its citizens and to the State of Oklahoma through the creation of quality jobs and development of its Oklahoma City Location; and
WHEREAS, The City, by its concurrence, deems it appropriate for the Trust to approve the execution of this Economic Development Agreement which provides for implementation of the Skydweller Headquarters Project because approval of the Skydweller Headquarters Project is in the best interest of The City and will result in a benefit to the health, safety, and welfare of its
Page 3 of 24 citizens and to the State of Oklahoma through the creation of quality jobs and development of its Oklahoma City Headquarters.
NOW, THEREFORE, in consideration of the promises and mutual obligations herein set forth, the parties hereby covenant and agree with each other as follows:
SECTION 1. DEFINED TERMS
Unless specifically provided otherwise or the context otherwise requires, when used in this Agreement:
1.1 Agreement. “Agreement” means this Economic Development Agreement (amended and restated), as the same may be amended, modified and in effect from time to time, pursuant to the terms of this Agreement.
1.2 Average Annual Salary. “Average Annual Salary” means the wages paid to full- time employees as regular, overtime, vacation, sick, premium overtime, or gain share (bonus). It does not include any payroll taxes paid by the employee or employer nor does it include any retirement or health/life insurance contributions by the employee or employer.
1.3 City. “The City” means The City of Oklahoma City, Oklahoma, a municipal corporation.
1.4 Fiscal Year. “Fiscal Year” shall mean the twelve (12) month period of each related year beginning January 1 and ending December 31, beginning on January 1, 2021.
1.5 Full-time employee. “Full-time employee” shall mean a person employed by Skydweller at its Oklahoma City Location who works and is paid for working not less than 32 hours per week.
1.6 Oklahoma City Location. Skydweller’s “Oklahoma City Location” shall mean the location ultimately selected by Skydweller for its Headquarters. Skydweller will timely notify the Project Manager of its selection and any subsequent change in location.
1.7 Skydweller Headquarters Project. “Skydweller Headquarters Project” means the Skydweller project generally described in Section 3.1 herein.
1.8 Maximum Total Incentive. “Maximum Total Incentive” means $275,000 if Skydweller locates in the Downtown area or in the Innovation District, or it mean $215,000 if Skydweller locates elsewhere in Oklahoma City.
1.9 Project Manager. “Project Manager,” unless otherwise indicated, means the Economic Development Project Manager. The Trust shall inform Skydweller of
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any change in the designee by correspondence and may change said designation from time to time.
1.10 Trust. “Trust” means the Oklahoma City Economic Development Trust (“OCEDT”), an Oklahoma public trust.
SECTION 2. TERM OF AGREEMENT
The term of this Agreement shall be for a period not to exceed seven (7) years from the Effective Date and may not be extended. The Agreement will be deemed terminated upon any of the following conditions:
1) one year following the date of the final payment of the Maximum Total Incentive, provided, that for a period of one year following final payment of the job incentive by the Trust, Skydweller shall have maintained, at the Oklahoma City Location, the number of positions for which it claimed payment for the preceding year under this Agreement. In the event Skydweller fails to retain a minimum of 80% of the final incentivized employment level for the one-year period following the final payment, the Trust shall have the right to seek liquidated damages for such failure, which the parties stipulate that said liquidated damages shall be $100,000; or
2) until such time that Skydweller has added 75 new full-time employees above the number of full-time employees as of the Threshold Date (as subsequently defined herein), in the event that Skydweller, following any two consecutive Fiscal Year periods, fails or is unable to document an increase of at least 15% in the number of full time employees qualifying for the job-creation incentive, over and above the number of qualified full-time employees existing at the beginning of the two-year period.
The parties recognize that these deemed termination provisions are critical to the Trust because the Trust has determined that it is obligated to use its limited resources to promote economic development and job growth within the community and therefore, in the event Skydweller is not able to reach its intended growth and expansion, the Trust desires to redirect the resources committed by this Agreement to another viable project.
This Agreement may be terminated by Skydweller at any time by written notice to the General Manager. SECTION 3. SKYDWELLER HEADQUARTERS PROJECT
3.1 Obligations of Skydweller – New-to-Market Job Creation and Investment in the Expansion and Redevelopment of the Oklahoma City Location and Related Conditions.
Skydweller agrees to the following obligations and conditions:
Page 5 of 24 a) Based on Skydweller’s previous announcement that it, or its subsidiaries or affiliates, will make or cause to be made a capital investment of approximately $475,000 related to leasehold/capital improvements, and for the purchase and installation of furniture, fixtures, equipment, or other one-time capitalized expenditures determined to be reasonably acceptable by the Project Manager, for the operation of its Oklahoma City Location in order to provide working space for the 75 new-to-market jobs, Skydweller agrees and will provide supporting documentation of such investment, in the amount of $475,000. Skydweller shall provide said documentation to the Project Manager. The documentation shall be in form reasonably acceptable to the General Manager of the Trust and shall be sufficient to demonstrate to the Project Manager the actual investment made by Skydweller, to include Skydweller providing an accounting of the out-of-pocket expenses related to site acquisition, along with the purchase of furniture, fixtures, equipment, or other one-time capitalized expenditures determined to be reasonably acceptable by the Project Manager, for its Oklahoma City Location.
In order to qualify for the job creation incentive in any given Fiscal Year under this Agreement, Skydweller acknowledges and agrees that it must first make and document a cumulative capital investment of $475,000 at the Oklahoma City Location as follows:
Fiscal Year 1 $200,000 Fiscal Year 2 $350,000 Fiscal Year 3 $475,000
Only purchases and expenditures made on or after August 1, 2020 may be utilized to support the minimum capital investment threshold.
While the parties mutually recognize that the announced project investment costs of at least $475,000 is only an estimate, the parties recognize that a substantial factor in determining the Maximum Total Incentive amount potentially available under this Agreement is based on the announced estimated investment costs. The parties agree that in the event the actual investment made or caused by Skydweller is more than 10 percent less than the minimum investment of $475,000 announced by Skydweller, the maximum job creation incentive provided under this Agreement will be reduced from the Maximum Total Incentive on a proportional basis. By way of example, if the actual capital expenditure is 11% less than $475,000, then the Maximum Total Incentive allowed under this Agreement will be reduced by 1%. In the event the actual capital expenditure is 15% less than $475,000, the Maximum Total Incentive allowed under this agreement will be reduced by 5%. There will be no increase in the maximum incentive allowed in the event capital investment costs exceed $475,000. b) Skydweller agrees that during the term of this Agreement, it will endeavor to hire and retain up to 75 new jobs at its Oklahoma City Location. Once the 75 new-to-market job number is reached, Skydweller agrees that it must retain a minimum average of 80% of the 75 new-to-market jobs for at least four (4) consecutive calendar quarters and that failure to do so could result in a reduction of future incentive payments earned
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by Skydweller or in a claw back of a paid incentive pursuant to the liquidated damages provision as more specifically described in Section 2.
In order to receive a job creation incentive payment, Skydweller agrees to support its claim for the job creation incentive by submitting supporting records and documentation to the Project Manager in accordance with this Agreement. Skydweller will be responsible for submitting documentation. All incentive payments will be made to Skydweller under its tax EIN. Skydweller must supply a completed W-9.
Since the purpose of this Agreement is to incentivize new jobs added by Skydweller at its Oklahoma City Location, the parties agree, for purposes of establishing the start date for counting the new 75 full-time employee positions incentivized under this Agreement, to utilize the date of August 1, 2020 (“Threshold Date”).
c) By the end of the first full Fiscal Year of operation following the Effective Date of the Agreement, the average annual wage paid by Skydweller for the new employees will be at least $100,000, in addition to offering an employee medical health insurance plan that provides for a Company (or parent company) contribution of at least fifty percent (50%) for such plan. For clarification, it is expressly agreed upon by the parties that, notwithstanding anything to the contrary, termination of this Agreement is the sole remedy available as related to Skydweller’s uncured failure to provide employee health insurance coverage that meets the requirements herein.
d) Documentation of the healthcare benefits offered can be supported by supplying a copy of the annual Statement of Benefits and Coverage provided to employees (redacted to delete any employee confidential information) and by a letter from Skydweller’s chief financial officer or someone in upper management to the effect that Skydweller (or its parent company) offers an employee medical health insurance plan that provides for Skydweller (or its parent company) to contribute at least fifty percent (50%) of the cost for such healthcare plan.
SECTION 4. TRUST – OBLIGATION, CONDITIONS, AND PROCESS FOR PAYMENT OF JOB- CREATION INCENTIVE
4.1 Conditions and Process for Payment of Job Creation Incentive.
In consideration of the obligations of Skydweller, as set forth in Section 3 above, the Trust, consistent with its commitment to The City, its sole beneficiary, agrees to pay Skydweller earned job-creation incentives up to the Maximum Total Incentive amount during the term of this Agreement, unless said total amount is reduced as provided in this Agreement. The Trust, using the process further described in this Section 4, agrees to pay Skydweller, at the end of each Fiscal Year, the amount shown below per new employee per fiscal year, provided: 1) said employees were hired as full-time employees by Skydweller on or after the Threshold Date to work at the Oklahoma City Location; 2) the employees included in the request for incentive collectively meet the minimum Average Annual Salary requirement for the corresponding (relative) Fiscal Year;
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and 3) Skydweller has substantiated that it (or its parent company) paid a specified portion of the employee’s health insurance costs, as described in this Agreement.
If the Maximum Total Incentive is at the $275,000 level, the amount of incentive to be paid during the relative Fiscal Year for each employee claimed by Skydweller and who meets the minimum requirements for an incentive payment, is as follows:
Fiscal Year 1 $1,500 per incentivized employee Fiscal Year 2 $1,250 per incentivized employee Fiscal Year 3 $1,000 per incentivized employee Fiscal Year 4 $1,000 per incentivized employee Fiscal Year 5 $1,000 per incentivized employee Fiscal Year 6 $1,000 per incentivized employee Fiscal Year 7 $1,000 per incentivized employee
If the Maximum Total Incentive is at the $215,000 level, the amount of incentive to be paid during the relative Fiscal Year for each employee claimed by Skydweller and who meets the minimum requirements for an incentive payment, is as follows:
Fiscal Year 1 $1,250 per incentivized employee Fiscal Year 2 $1,000 per incentivized employee Fiscal Year 3 $ 900 per incentivized employee Fiscal Year 4 $ 900 per incentivized employee Fiscal Year 5 $ 900 per incentivized employee Fiscal Year 6 $ 900 per incentivized employee Fiscal Year 7 $ 900 per incentivized employee
The total amount of earned job creation incentive to be paid to Skydweller each Fiscal Year (until the Maximum Total Incentive is attained) will be determined under the following criteria and guidelines:
a. For the Fiscal Year under consideration, the average number of full-time employees or full-time employee equivalents eligible for an incentive payment will be determined by averaging the monthly totals of full-time employees or full-time equivalents on the Skydweller Headquarters Project payroll at the Oklahoma City Location, whose composite paid salaries, when averaged together, meet the minimum Average Annual Salary set forth in paragraph (b) below. The parties agree that in order for the employee to be counted in the monthly totals for calculating the Average Annual Salary, the employee or full-time equivalent position must: 1) be considered a full-time employee or position, and 2) the employee or position must be eligible for a medical health insurance plan that provides for a Company (or parent company) contribution of at least fifty percent (50%) of the costs for such plan, all as defined in this Agreement.
Documentation of the number of employees or positions to be incentivized will come from reports provided by Skydweller for review by and reasonably acceptable to the Project Manager, but may include documents submitted by Skydweller to the
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Oklahoma Quality Jobs Program and the Oklahoma Employment Security Commission. b. The parties agree that in order to qualify for the job incentive the Average Annual Salary to be paid by Skydweller to the group of incentivized employees, exclusive of the costs for any employment benefits or the required health insurance benefits, must be a minimum Average Annual Salary as provided below. If needed, Skydweller will have the ability to exclude lower paid employees to meet the minimum average annual salary required below. Such excluded lower paid employees will not be counted toward any incentive payments for the months that they are excluded.
Fiscal Year 1 $100,000 Fiscal Year 2 $ 87,000 Fiscal Year 3 $ 87,000 Fiscal Year 4 $ 87,000 Fiscal Year 5 $ 87,000 Fiscal Year 6 $ 87,000 Fiscal Year 7 $ 87,000
c. For purposes of the Skydweller Headquarters Project, the parties agree that as of the Threshold Date, the threshold number of full-time employees employed by Skydweller at the Oklahoma City Location is 0 full-time employees.
d. Within 120 days following the end of the related Fiscal Year, Skydweller is expected to submit an application for payment of the job-creation incentive to the General Manager and/or Project Manager. The application shall contain supporting details and documentation for the amount of the job-creation incentive being claimed. The documentation and information supplied should be sufficient to allow a reasonable person to ascertain with reasonable certainty the average number of full-time positions/employees hired and retained by Skydweller at the Oklahoma City Location on a monthly basis during the applicable preceding Fiscal Year, meeting the requirements set forth in this Agreement for an incentive payment.
e. It is critical to the Trust and important to the continued success of the job-creation incentive program (the Strategic Investment Program) that Skydweller timely submit its application for payment of the job-creation incentive. Therefore, beginning with Fiscal Year 2, if Skydweller does not submit an application within 120 days following the end of the fiscal year, Skydweller’s incentive may be reduced by up to 50% of the earned incentive for such fiscal year. The General Manager will make the determination regarding any reduction of the incentive. In the event the General Manager determines, based on the reasons provided by Skydweller for non- compliance, to reduce the earned incentive, Skydweller may petition the Trust to request a waiver of such forfeiture. The decision of the Trust in this regard shall be final. The responsibility for compliance with submitting the application for payment is wholly within the control of Skydweller.
Page 9 of 24 f. A full-time position (or full-time equivalent position) shall be a benefit enhanced salaried or hourly paid position that is filled for the purpose or intent to work for a cumulative minimum of 1,664 hours total for that particular position during a measured or specified Fiscal Year. (Minimum hours are determined by multiplying 32 hours per week x 52 weeks). g. Based upon the documentation supplied by Skydweller and/or requested by the Project Manager, the Project Manager shall determine and verify the average number of full- time, benefit enhanced employees/positions retained and filled by Skydweller during the Fiscal Year or specific or measured period, whose composite annual salaries, when averaged together, meet the minimum Average Annual Salary for the Fiscal Year under consideration. The determination shall be made within thirty (30) days after receipt of the application and supporting documentation from Skydweller. The Project Manager shall inform Skydweller of his or her determination. h. If there is a disagreement between the average number of full-time, benefit enhanced jobs claimed by Skydweller in the application and the determination made by the Project Manager, the Project Manager shall meet and confer with Skydweller’s designated agent or agents and attempt to resolve the disagreement. However, the Project Manager shall have the final determination as to the average number of full- time positions filled and retained by Skydweller or its Oklahoma City based affiliates and designees at the Oklahoma City Location during the measured or specific Fiscal Year. The Project Manager shall use good faith efforts in making said determination and shall base said determination upon the documents required or requested under this Agreement. Provided as Attachment A is a Payment Worksheet and Attachment B is a Checklist Form to be completed by Skydweller to assist the Project Manager in the calculation of the annual incentive to be paid to Skydweller. i. The amount of job-creation incentive to be paid to Skydweller for a measured period or specific Fiscal Year will be determined by multiplying the number of qualified full- time, benefit enhanced positions (those positions meeting the minimum number of hours of employment and included in the calculation of the Average Annual Salary paid by Skydweller for the Fiscal Year under consideration) as determined by the Project Manager, by the amount identified in this Section to be paid as the incentive for each eligible employee or position. The job-creation incentive should be paid within thirty (30) days after the determination has been made by the Project Manager. j. Part-time or temporary employees will not be included in the calculation. k. Nothing herein shall require Skydweller to retain or employ any particular person or employee for any length of time, nor is any provision of this Agreement in any way intended to interfere with Skydweller’s employment processes or procedures. The goal is to determine the average number of new full-time positions, as defined herein, which are filled and receive a salary or wage during the Fiscal Year or the period being measured or under consideration, so that the total number of quality new jobs created under this Agreement can be determined.
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l. The payment of the job-creation incentive, as outlined herein, is also conditioned upon the obligation that Skydweller documents the amount of capital investment expenditures required by Sections 3 and 5. If documentation is provided by Skydweller as required, and Skydweller substantiates the job creation requirements, the Trust will be obligated to pay the qualified job creation incentives, on a fiscal-year basis until the Maximum Total Incentive has been paid. Upon payment of the Maximum Total Incentive, the Trust’s obligation to pay incentives shall end. However, in the event that Skydweller is unable or unwilling to provide documentation to support the expenditure of capital investment of approximately $475,000, then the total amount of job creation incentive required under this Agreement shall be reduced in accordance with Section 3.1(a). Although not required in the sense that Skydweller can be forced or mandated to make the capital investment, it is expected that Skydweller will complete its announced capital investment described in this Agreement by the end of Fiscal Year 3 or will be subject to the incentive reduction set forth in this agreement.
m. Unless otherwise agreed in writing between the parties, Skydweller will have up to seven (7) years after the execution of this Agreement to earn the job-creation incentives provided by this Agreement. If Skydweller fails to create and retain an adequate number of qualified employees, earning the minimum required average annual salary, within the first seven (7) fiscal years after the Threshold Date the Trust’s obligation to continue to pay any job creation incentive shall cease.
SECTION 5. SUBMITTAL OF VERIFYING DOCUMENTS
5.1 Documentation for Verification of Expenditures Related to the Skydweller Project.
Prior to requesting the Fiscal Year 1 job creation incentive, Skydweller is obligated to provide the Project Manager with documentation supporting a minimum capital expenditure of $200,000 in out-of-pocket expenses related to leasehold/capital improvements and furniture, fixtures, and equipment for its Oklahoma City Location for the Skydweller Headquarters Project. In subsequent years, and to the extent that Skydweller has not otherwise already met the maximum cumulative capital expenditure of $475,000, Skydweller shall have capital expenditures consistent with the schedule set forth in Section 3.1(a) up to a maximum cumulative capital expenditure of $475,000.
5.2 Documentation for Verification of New Job Creation.
The documentation required in Section 4.1 above shall contain information allowing a reasonable person to ascertain with reasonable certainty the average number of full-time, benefit enhanced positions/employees filled and retained by Skydweller at its Oklahoma City Location on a monthly basis during the Fiscal Year. The Trust, by and through the Project Manager, reserves the right to request additional information that may be necessary for the Project Manager to reasonably ascertain the average number of full-time positions filled and retained by Skydweller. That documentation may include the documentation submitted to the State of Oklahoma Quality
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Jobs Program, and any other reasonable documentation requested by the Project Manager necessary for the Trust/City to reasonably ascertain that average number for the Fiscal Year. Additional documentation may include the Employer’s Quarterly Contribution Reports filed by Skydweller with the Oklahoma Employment Security Commission (redacted to delete employee social security numbers and/or other confidential or personally identifiable information).
5.3 Quarterly Progress Reports
In the event that the Project Manager has reasonably established concerns that substantial progress has not been made in relation to the Skydweller Headquarters Project, Skydweller may provide quarterly progress reports upon request by the Project Manager within forty-five (45) calendar days from the request by the Project Manager, which reports shall include the number of jobs created and retained during the previous quarter and the related salaries.
5.4 Documentation related to Health Insurance Benefits.
It is a requirement of this Agreement that Skydweller (or its parent company) offer an employee medical health insurance plan that provides for Skydweller (or its parent company) to contribute at least fifty percent (50%) of the costs for such plan. In order to document fulfillment of this requirement, Skydweller will provide along with its annual application for an incentive payment, a copy of the annual Statement of Benefits and Coverage provided to employees (redacted to delete any employee confidential or personally identifiable information) and a letter from the Chief Financial Officer or some individual in upper management attesting that Skydweller (or its parent company) offers an employee medical health insurance plan to Company employees that provides for Skydweller’s (or its parent company’s) contribution of at least fifty percent (50%) toward the costs for such plan. SECTION 6. MAXIMUM LOCAL INCENTIVE
The total amount of all local economic development (job creation) incentives to be paid to Skydweller for the Skydweller Headquarters Project under this agreement shall not exceed $275,000 if the Oklahoma City Location is located in the Downtown area or in the Innovation District, and shall not exceed $215,000 if the Oklahoma City Location is located elsewhere in Oklahoma City.
SECTION 7. FINANCING AND APPROPRIATION REQUIREMENTS
7.1 Appropriation Requirements.
All or a portion of the payments promised hereunder by the Trust may be financed or funded by monies received from The City, a municipal corporation. Financing or funds received from The City will be subject to annual appropriation and encumbrances of revenues by the City Council of The City, as mandated by Okla. Const. Art. 10, § 26 and by the Oklahoma Municipal Budget Act, 11 O.S. § 17-201 et seq. However, under no circumstances does or shall The City incur any financial obligation to Skydweller under this Agreement. The City is simply a
Page 12 of 24 beneficiary of the Trust, and the Trust remains solely responsible for all financial obligations hereunder.
7.2 Cooperation by Skydweller in any Financing Options Available to The City and the Trust.
The Trust and/or The City may desire to finance or fund the financial obligations required under this Agreement with the proceeds from the issuance of bonds, or other financing instruments, including, but not limited to, bonds authorized by Article 10, § 35 of the Oklahoma Constitution and 62 O.S. § 801 et seq. In the event the Trust or The City decides to finance the incentives contemplated by this Agreement through the issuance of bonds or other financing instruments, Skydweller agrees to cooperate and assist the Trust/City in any reasonable manner and with no cost or expense to Skydweller, which includes the submission of reasonable documentation required to qualify this Economic Development Agreement for funding or financing under any financing mechanisms available to the Trust or City under the laws of the State of Oklahoma.
SECTION 8. NOTICES AND DEMANDS
A notice, demand or other communication under this Agreement by either party to the other will be sufficiently given or delivered if dispatched by email and either by: (i) registered or certified mail, postage prepaid, return receipt requested; (ii) reputable courier; or (iii) delivered personally, and: in the case of Skydweller, is addressed (or delivered personally) to:
Skydweller Aero, Inc. Attn: Dale F. Jordan, Jr. 9009 N. May Avenue, #116 Oklahoma City, OK, 73120 Email: [email protected] in the case of the Trust, is addressed (or delivered personally) to:
Craig Freeman, General Manager 200 North Walker Avenue, 3rd Floor Oklahoma City, OK 73102 Email: [email protected] with copy to:
City Clerk for the City of Oklahoma City (Trust Secretary) 200 N. Walker, 2nd Floor Oklahoma City, OK 73102 Email: [email protected]
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or at such other address with respect to either such party as that party may from time to time designate in writing and forward to the other as provided in this Section.
SECTION 9 PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER
9.1 Representations as to Project.
Skydweller represents and agrees that its undertakings pursuant to the Agreement are, and will be used, for the purpose of enhancing its Oklahoma City Location and operations, including the development of new and additional job opportunities within the urban core of The City (The City and the Trust agreeing that the Oklahoma City Location is considered to be within the urban core of the City for purposes of this Agreement) and not for speculation in land holding. Skydweller further recognizes that the City believes in the:
a) importance of the development of the Oklahoma City Location and job enhancements to the general welfare of the community;
b) fact that a transfer of the majority ownership or stock in Skydweller to a third party that is not related to Skydweller Aero Inc. or its subsidiaries, affiliates, parent companies, members or owners, or any other act or transaction involving a third party that is not related to Skydweller Aero Inc. or its subsidiaries, affiliates, parent companies, members or owners resulting in a change in the majority ownership of such stock, is for practical purposes a transfer or disposition of the property then owned or leased by Skydweller.
The qualifications and identity of Skydweller, and its stockholders, or partners, whether general or limited, are of particular concern to the community and the Trust. Skydweller further recognizes that it is because of such qualifications and identity that the Trust is entering into this Agreement with Skydweller, and, in so doing, is further willing to accept and rely on the obligations of Skydweller for the faithful performance of all undertakings and covenants hereby by it to be performed without requiring in addition a surety bond or similar undertaking for such performance of all undertakings and covenants in this Agreement.
9.2 Prohibition Against Transfer of Property and Assignment of Agreement.
For the foregoing reasons, Skydweller represents and agrees for itself and its successors and assigns that:
a) Except by way of security for, and only for (i) the purpose of obtaining financing necessary to enable Skydweller, an affiliate or subsidiary of Skydweller or any successor in interest to the Oklahoma City Location, or any part thereof, to perform its obligations with respect to its obligations under this Agreement, and (ii) any other purpose authorized by this Agreement;
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For the Term of the Agreement, Skydweller (except as so authorized) has not made or created, and that it will not, prior to the proper completion of its obligations under this Agreement, as certified by the Trust, or the termination of this Agreement, whichever first occurs, make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or lease, of this Agreement with the Oklahoma City Location, except to an affiliate or subsidiary of Skydweller or its parent company, without the prior written approval of the Trust, which approval shall not be unreasonably withheld, conditioned or delayed. b) The Trust shall be entitled to require, except as otherwise provided in the Agreement and as related to an affiliate or subsidiary of Skydweller or its parent company, as conditions to any such approval that:
1) Any proposed transferee/assignee shall have the qualifications and financial capability, as determined by the Trust, necessary and adequate to fulfill the obligations undertaken in this Agreement by Skydweller.
2) Any proposed transferee/assignee, by instrument in writing satisfactory to the Trust and in form recordable among the land records, shall, for itself and its successors and assigns, and expressly for the benefit of the Trust, have expressly assumed all of the obligations of Skydweller under this Agreement and agreed to be subject to all the conditions and restrictions to which Skydweller is subject; provided, that the fact that any transferee of, or any other successor in interest whatsoever, shall, whatever the reason, not have assumed such obligations or so agreed, shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Trust) relieve or exempt such transferee, assignee or successor of, from such obligations, conditions, or restrictions, or deprive or limit the Trust of or with respect to any rights or remedies or controls with respect to this Agreement; it being the intent of this provision, together with other provisions of the Agreement, that (to the fullest extent permitted by law and equity and excepting only in the manner and to the extent specifically provided otherwise in the Agreement) no transfer of, or change with respect to, ownership in the Agreement or the leasehold interest in the Oklahoma City Location, or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the Trust of or with respect to any rights or remedies or controls provided in or resulting from this Agreement that the Trust would have had, had there been no such transfer or change.
3) There shall be submitted to the Trust for review all instruments and other legal documents directly regarding effecting transfer of this Agreement; and, if approved by the Trust, its approval shall be indicated to Skydweller in writing.
4) Provided, that in the absence of specific written agreement by the Trust to the contrary, no such transfer or approval by the Trust thereof shall be deemed to
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relieve Skydweller, or any other party bound in any way by this Agreement from any of its obligations with respect thereto.
Notwithstanding anything to the contrary contained herein, it is expressly agreed upon by the parties that Skydweller may transfer or assign the Oklahoma City Location and any interest therein or related thereto to an affiliate or subsidiary of Skydweller or its parent company. Further, notwithstanding anything to the contrary contained herein, Skydweller shall be free to transfer any portion of this Agreement or its ownership interest in the Oklahoma City Location, or any part thereof, without the prior written consent of the Trust, if (1) Skydweller continues its operations in the corporate limits of Oklahoma City in a facility of similar size and quality allowing to maintain the number of employees anticipated to be hired under this agreement; and (2) documentation of information is provided to the Trust in a form reasonably acceptable to the General Manager.
SECTION 10 REMEDIES AND TERMINATION
10.1 In General.
Except as otherwise provided in this Agreement, in the event of any default in or breach of this Agreement, or any of its terms or conditions, by any party hereto, or any successor to such party, such party (or successor) shall, upon written notice from the other, proceed immediately to cure or remedy such default or breach, and, in any event, within sixty (60) days after receipt of such notice. In case such action is not taken or not diligently pursued, or the default or breach shall not be cured or remedied within 60 days of receipt of notice from the other party, the parties shall meet and confer in an attempt to amicably resolve that matter. In the event an amicable resolution is not achieved, the aggrieved party retains all rights and remedies as related to the uncured breach.
10.2 Termination by Skydweller.
Without limitation to any other termination rights afforded to Skydweller pursuant to this Agreement, in the event that:
a) Skydweller shall furnish evidence satisfactory to the Trust that it has been unable, after and despite diligent efforts, complete the construction of its Oklahoma City Location or create 300 new jobs; or
b) the Trust or its Designee shall fail to perform any of its covenants or obligations to be performed hereunder, and any such failure shall not be cured within thirty (30) days after the date of written demand by Skydweller; or
c) Skydweller determines it is unable or unwilling to meet its obligations under this Agreement by sending written notice to the General Manager. (In such case the Trust obligation to further incentivize any jobs created by Skydweller shall terminate on the date the notice is received.)
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then this Agreement, or the relevant portion thereof, may, at the option of Skydweller be terminated by written notice thereof to the Trust. Except for any right of payments to Skydweller for incentives earned under this Agreement, neither the Trust nor Skydweller shall have any further rights against or liability to the other under this Agreement with respect to the terminated portion thereof.
10.3 Termination by Trust.
The Trust may terminate this Agreement in the event that:
a) Skydweller is in breach of this Agreement and fails to cure such breach during the applicable cure period, which requires, among other things, the consent of the Trust to certain transfers, assignments, as more specifically described in Section 9.2.
b) there is any change in the controlling interest to a third party not related to Skydweller or its subsidiaries, affiliates, parent companies, members or owners and with respect to the identity of the parties in control of Skydweller, which has not been approved by the Trust, if required.
c) if any default or failure referred to in this Agreement shall not be cured within ninety (90) days after the date of written demand by the Trust; then this Agreement, and any future rights of Skydweller, or any assignee or transferee, in this Agreement, or arising therefrom with respect to the Trust, may, at the option of the Trust, be terminated by the Trust, in which event, neither Skydweller (or assignee or transferee) nor the Trust shall have any further rights against or liability to the other under this Agreement.
d) The City, for any reason, fails or refuses to appropriate and budget, on a fiscal year basis, sufficient funds from available funding sources to cover the financial obligations of the Trust under this Agreement.
e) in the event that Skydweller fails to substantially create a minimum of 20 new jobs that meet qualifying criteria by December 31, 2022.
f) For any of the reasons set forth in Section 2 of this Agreement.
10.4 Forced Delay in Performance for Causes Beyond Control of Party.
For the purpose of any of the provisions of the Agreement, neither the Trust, nor Skydweller, as the case may be, nor any successor in interest, shall be considered in breach of, or default in, its obligations with respect to the obligations hereunder, or progress in respect thereto, in the event of forced delay in the performance of such obligations due to unforeseeable causes beyond its reasonable control and without its fault or negligence, including, but not restricted to, acts of God, acts of the public enemy, acts of the Federal Government, acts of the other party, fires, floods, tornados, epidemics, quarantine restrictions, strikes, freight, embargoes, and unusually severe weather or delays of subcontractors due to such causes; it being the purpose and intent of
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this provision that in the event of the occurrence of any such forced delay, the time or times for performance of the obligations of the parties hereunder, as the case may be, shall be extended for the period of the forced delay as reasonably determined by the Trust; provided, that the party seeking the benefit of the provisions of this Section shall, within thirty (30) days after the beginning of any such forced delay, have first notified the other party thereof in writing, and of the cause or causes thereof, and requested an extension for the period of the forced delay.
10.5 Rights and Remedies Cumulative.
The rights and remedies of the parties to this Agreement, whether provided by law or by this Agreement, shall be cumulative, and the exercise by either party of any one or more of such remedies shall not preclude the exercise by it, at the same or different times, of any other such remedies for the same default or breach or of any of its remedies for any other default or breach by the other party. No waiver made by either such party with respect to the performance, or manner or time thereof, or any obligation of the other party or any condition to its own obligations under this Agreement shall be considered a waiver of any rights of the party making the waiver with respect to the particular obligation of the other party or condition to its own obligations beyond those expressly waived in writing and to the extent thereof, or a waiver in any respect in regard to any other rights of the party making the waiver or any other obligations of the party.
SECTION 11 GENERAL
11.1 City’s Right to Concurrence with this Agreement – Effective Date.
As required by policy of the City Council, The City is entitled to, and the parties hereby acknowledge the right of The City to, concur or not concur with OCEDT in OCEDT’s entering into this Agreement. In the event that The City should not agree to concur with OCEDT in approving this Agreement, the parties agree to work together to resolve any valid issues raised by The City as a condition to concurrence. Provided that both parties have duly executed the Agreement, this Agreement will become effective as of the Date of Concurrence by The City.
11.2 Trust Representatives not Individually Liable.
No individual member, official, or employee of the Trust or the City shall be personally liable to Skydweller, or any successor in interest, in the event of any default or breach by the Trust or for any amount which may become due to Skydweller or successor on any obligations under the terms of the Agreement.
11.3 Equal Employment Opportunity.
Skydweller, for itself and its successors and assigns, agrees that during this Agreement:
(a) Skydweller will not discriminate against any employee or applicant for employment because of race, color, religion, sex, gender, sexual orientation, or national origin. Skydweller will take appropriate legal action to ensure that applicants are employed, and that
Page 18 of 24 employees are treated during employment, without regard to their race, color, religion, sex, gender, sexual orientation, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. Skydweller agrees to post in conspicuous places, available to employees and applicants for employment, notices required by law relating to such anti-discriminatory practices.
(b) Skydweller will, in all solicitations or advertisements for employees placed by or on behalf of Skydweller, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin.
The Trustees of OCEDT and the City Council agree and consent that administration and compliance enforcement of this provision is hereby delegated to the Project Manager.
11.4 Titles of Articles and Sections.
Any titles of the several parts and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. The descriptive headings of the sections and subsections of this Agreement are inserted or annexed for convenience of reference only and shall not affect the meaning, construction, interpretation or effect of this Agreement. The preamble “Whereas” clauses to this Agreement are essential elements of this Agreement and expressly incorporated herein.
11.5 Applicable Law, Severability and Entire Agreement.
If any provisions of this Agreement or the application thereof to any persons or circumstances shall, to any extent, be invalid or unenforceable, then the remainder of this Agreement, or the application of such provision, or portion thereof, and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. This Agreement sets forth the entire understanding between the parties with respect to its subject matter, there being no terms, conditions, warranties or representations with respect to its subject matter other than that contained herein. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their respective successors and assigns.
11.6 Amendments to Agreement.
This Agreement may be changed only by an agreement in writing and signed by the parties hereto. Changes in statutes and regulations relevant to the subject matter of this Agreement shall become part of the Agreement subject to the parties’ right to terminate the Agreement if said statutes or regulation materially affect the responsibilities of the parties under this Agreement.
11.7 Third Parties.
Except as expressly provided otherwise in this Agreement, the provisions of this Agreement are for the exclusive benefit of the parties hereto and not for the benefit of any other
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persons, as third-party beneficiaries or otherwise, and this Agreement shall not be deemed to have conferred any rights express or implied, upon any other person.
11.8 No Partnership Created.
Skydweller and the Trust expressly agree that the relationship hereby created is that of independent contractors and no other relationship is created or deemed to be created between the parties. This Agreement specifically does not create any partnership or joint venture between the parties hereto or render any party liable for any of the debts or obligations of any other party.
11.9 Time Is of the Essence.
The parties understand and agree that time is of the essence with regard to all the terms and provisions of this Agreement.
11.10 Formalities and Authority.
The parties hereto represent and warrant that they are validly existing and lawful entities with the power and authorization to execute and perform this Agreement.
11.11 Construction.
This document incorporates and includes all prior negotiations, correspondence, conversations, agreements, and understandings applicable to the matters contained herein, and the parties agree that there are no commitments, agreements or understandings concerning the subject matter of this Agreement that are not contained in this document. The rule of construction that a document is to be construed most strictly against the party who drafted the document shall not be applicable to this Agreement because all parties participated in the preparation of this Agreement. In the event of ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party on the basis that such party did or did not author the same. “Includes” and “including” are not limiting. References to articles, sections, and exhibits shall be to articles, sections, and exhibits of this Agreement unless otherwise indicated. The headings set forth in this Agreement are for convenience and reference only, and in no way define or limit the scope or content of this Agreement or in any way affect its provisions.
11.12 Governing Laws, Construction and Enforcement.
This Agreement shall be construed and enforced in accordance with the laws and regulations of the State of Oklahoma, exclusive of its choice of law rules. Any litigation brought under this Agreement shall be conducted in the State of Oklahoma in State District Court in Oklahoma County or the Federal District Court for the Western District of Oklahoma.
11.13 Representation of Skydweller.
Skydweller represents and warrants to the OCEDT and The City that Skydweller is a duly organized and validly existing limited liability company, in good standing under the laws of the
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State of Oklahoma and that the undersigned representative has all requisite power and authority to execute and deliver this Agreement.
11.14 Compliance with Laws, Ordinances and Regulations.
Skydweller and the Trust shall comply with all applicable existing federal, state and local laws, standards, codes, ordinances, administrative regulations and all amendments and additions thereto, pertaining in any manner to the work and/or services provided by this Agreement.
11.15 Counterparts.
This Agreement is executed in multiple counterparts, each of which shall constitute an original of this Agreement. Electronic pdf signatures shall be considered original signatures.
[Signatures on separate pages below]
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[Signature Page for the Oklahoma City Economic Development Trust]
“TRUST”
ATTEST: OKLAHOMA CITY ECONOMIC DEVELOPMENT TRUST, a public trust
By: SECRETARY CHAIRMAN
Date Approved:
Reviewed for form and legality.
______Assistant Municipal Counselor
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[Signature Page for The City of Oklahoma City’s Concurrence]
“CITY” ATTEST: THE CITY OF OKLAHOMA CITY, a municipal corporation
By: City Clerk MAYOR
Reviewed for form and legality.
______Assistant Municipal Counselor
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Attachment A Payment Worksheet
Skydweller Aero Strategic Investment Program Job Creation Reconciliation Totals Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Jobs Wages Jobs Wages Jobs Wages Jobs Wages Jobs Wages Jobs Wages Jobs Wages Jobs Wages
(1) Employees in Oklahoma 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 Annual Average #DIV/0!
Employees in Oklahoma outside (2) Oklahoma City Site 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0
(3) Baseline Employees 0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 Key Hiring Date - on or after 01/01/21
(4) Skydweller- net jobs/wages 0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 #DIV/0!
Part-Time 0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Oklahoma City Totals 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0
Reconciliation 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 Percent of Oklahoma Totals #DIV/0!
Jobs Incentive Summary Total Incented Jobs 0.00 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 (5) Less: Baseline Adjustment 0.00 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 (6) Adjusted Incented Jobs 0.00 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Average Salaries #DIV/0!
Salary Threshold Year 1 $100,000
Qualified Jobs #DIV/0! Per Job Payment Year 1 $1,500 Incentive Payment Due #DIV/0!
All numbers denoted in YELLOW are inputs to be provided by the Company
(1) Verify to quarterly OESC forms (2) To be provided by Company - No detail required (3) Based on contract with OCEDT. Must be maintained on a monthly basis. If it is not maintained, new jobs must be used to get back to the baseline number in Step 6. (4) All new jobs created after a certain date. Some jobs may be removed from this category if the baseline is below in any given month. Jobs cannot exceed the contracted number of jobs (5) Adjustment to remove new jobs in order to maintain the contracted baseline jobs. Company may select any jobs included in the Step 4. Company will have to input the monthly salary for the month in which the job is included in the adjustment.
Attachment A
Attachment B
CHECKLIST
This checklist is a summary of the required procedures and/or documents for the company submitting an incentive request to be considered valid. In order to expedite the review and payment process, it is recommended that the company requesting an incentive payment submit all required documents on this list. This sheet is for your convenience and is intended to assist in processing an incentive payment.
Required Procedures/Documents Annual Submission deadline - 120 days following end of Fiscal Year (Section 4.1 (d))
Capital Investment Documents Attached? Section 3.1 (a); Contractor’s Certification or other third-party Section 4.1.(l); documentation verifying total investment Section 5.1
Job Creation Documentation Job Creation Reconciliation Worksheet Attachment A Job Incentive Supporting Documentation – uniquely identifying jobs and wages on monthly basis – can be Section 5.2 reviewed through email or in person Health Insurance coverage and attestation Section 5.4 Quarterly OESC records to tie total wages and jobs Section 5.2 Quality Jobs data (optional if SIP contracted entity also Section 5.2 has a Quality Jobs reporting requirement with same dates and baseline) Verification of minimum job threshold met over first two- Section 10.3 (e) year period City Financial System Documents
Vendor registration form, ACH direct deposit form, invoice summarizing job data for payment
Attachment B OCEDT Agenda Item No. V.C. 4/27/2021
TO: Chairman and Trustees of the Oklahoma City Economic Development Trust
FROM: Craig Freeman, General Manager
Oklahoma City Economic Development Foundation FY21 3rd Quarter Report (GEN-ED)
Background: The Oklahoma City Economic Development Trust has a contract in place with the Oklahoma City Economic Development Foundation (Greater Oklahoma City Chamber) to provide certain economic development services to the Trust.
The contract requires the Foundation to provide periodic reports to the Trust. Jeff Seymour from the Greater Oklahoma City Chamber is available to discuss the FY21 3rd Quarter Report.
Recommendation: Report be received.
7 2 1 5
The Oklahoma City Economic Development Foundation, Inc. and The City of Oklahoma City Economic Development Trust
Contract for Professional Services Fiscal Year 2020-2021
Third Quarter January 1, 2021 to March 31, 2021
Report On Economic and Community Development Activities And Accomplishments
TABLE OF CONTENTS
Narrative Report of Accomplishments and Measurements
A. Report to Trust by Contract Area Create Additional Local Economic Outcomes Diversify The Local Economic Base Increase Income And Wages Across Economic Spectrums Increase Local Investment in Oklahoma City and Increase The Tax Base Improve Oklahoma City’s Reputation (Marketing and Research Support) Retail Recruitment and Development Improve Oklahoma City’s Brand Recognition with Retailers and Developers Recruit New Destination Retail to Oklahoma City Assist The City of Oklahoma City Predict and Increase Sales Tax Collections Increase Oklahoma City Resident’s Quality‐Of‐Life/Support Existing Retailers Economic Recovery and Revitalization Overall Outcomes Summary
B. Charts Measurements
C. Exhibits 2021 Economic Forecast 2020 Aerospace Industry Study
Narrative Report of FY 20/21 Accomplishments and Measurements
______
Project(s)/Initiative(s) underway or completed – January 1, 2021 – March 31, 2021
Business Recruitment
JANUARY Costco held their grand opening celebration for their ecommerce and travel member service center. Gathered information on all regional sites with trans‐loading capabilities in partnership with UP, BNSF and Watco. Working with City on permitting/fees/process flow chart for commercial projects. Discussed potential partnership on workforce recruitment campaign with Skydweller. Recruitment team participated in Site Selection Guild Webinar Predictions for 2021.
FEBRUARY Announced three projects this month:
PurFoods (Project 3K) provides fully prepared, refrigerated meals delivered directly to homes through Medicaid and Medicare programs. They will create approximately 550 new jobs.
IDEX Energy‐ Advanced Flow Systems (Project Picasso) will be moving their HQ to OKC along with their Liquid Controls manufacturing operations. They manufacture pumps, compressors and precision measurement equipment and will create 120 new jobs paying an average of $57,658.
JASCO (Project Outlet) assembles, tests and distributes GE electronic and consumer products in OKC. They will be making approximately $16M in new capital investment as they move to automate their existing operations.
The recruitment team also participated in the Shared Services & Outsourcing Network’s Intelligent Automation virtual trade show to continue to network with industry prospects.
MARCH Recruitment activity continues to steadily increase in 2021. This month’s activity included 12 new business project leads and 4 company site visits (4 manufacturing projects). Other Outreach activity during the month included: A virtual happy‐hour event with more than 30Dallas‐based site location consultants and brokers. Sponsored the Site Selection Guild’s Virtual Table Talk where we were able to have individual time with 7 site location consultants to share information about the Greater OKC region. Continued to better streamline processes with City and Alliance staff on responding to competitive project proposals. Recruitment staff also presented to the Board of advisors about economic development and the competitive project process. Presentation goals included an inside peek at what is done behind the scenes on how leads are generated and how collaborative occurs to push projects through the pipeline.
1 Talent and Business Growth
JANUARY There seems to be solid growth opportunities for local manufacturers supporting the aviation and aerospace industry. Recent federal funding has brought renewed optimism in those connected to commercial aviation that recovery is in the future and some have also begun to bring back furloughed workers. Many companies have reported an overall conservative approach to hiring in the short‐run. Engagement is indicating that many companies are opting for natural attrition to help them reduce their headcounts and looking toward much later in the calendar year to add new positions. Companies that offer products to other businesses to support business functions such as payroll, accounting and HR. Continue to see very positive growth and are adding jobs here in OKC to support that growth. Companies that have made pivots to remote working are discovering access to un‐tapped talent to support their technology needs – though not necessarily talent located in OKC. This discussion is on‐going about how remote working will/won’t impact hiring trends – especially when acquiring much‐needed tech talent.
FEBRUARY The TBG Team interfaced with a number of OKC employers, particularly those in energy, banking, back office/call center and manufacturing this month. Overall industry sector takeaways for this month’s engagement: Manufacturing: Overall, the manufacturing seems to be strong, with the strongest performers being in those that produce food and beverage or products that support the building and automobile parts industries. Demand remains high for items such as supplies for the QST industry, bottled beverages and pet food. In fact, two manufacturers (Purina (pet food) and Malarkey (roofing products) both volunteered that 2020 was the best year either company had experienced previously. Some manufacturing continues to see reduced demand. Not surprisingly, local manufacturers producing products that support oil & gas or commercial aviation have not seen a recovery in product demand and have taken steps to address the drop in revenue by adjusting headcount and expenses through layoffs, furloughs and shift adjustments. Distribution/Logistics: There is very positive growth with companies supporting distribution and logistics, with companies that deliver products or services all looking for qualified talent to deliver goods. A local company that supports distribution contracts for Amazon has acquired additional property and will be expanding their operations in OKC. We also received feedback that while this talent is currently available, due to layoffs in oil & gas, some employers expected turnover in these positions if the lucrative jobs in oil and gas return in the future. Shared Services/Back‐Office: There is very steady hiring in companies that have located customer service/call center operations in OKC. Plentiful talent and high satisfaction with cost of living and quality of life have led several companies to find growth and continue to hire in OKC. These operations range from insurance claims to member call center and inbound sales operations. There continues to be steady demand in OKC, for mortgage origination and refinance, with new talent being hired by banks to cover this demand which seems to support the continued growth of demand for home improvement products. Overall, MOST companies are facing 2021 with flat or reduced headcounts. Nearly every company reported that 2020 had forced them to adopt more stringent analysis for future hiring with an overwhelming emphasis on running lean, increasing efficiency and focusing on investing in absorbing attrition internally.
2 MARCH The TBG Team interfaced with a number of OKC employers, particularly those in manufacturing, construction and aviation & aerospace this month. Overall industry sector takeaways for this month’s engagement include: Manufacturing: Manufacturers whose products support food & beverage products have been thriving, with increased demand for their products during COVID. Similarly, local manufacturers who have been able to make pivots to diversify their product lines beyond oil and gas, are also seeing some success with new products from PPE to components to support the aviation & aerospace sectors. Manufacturers whose product lines wholly depend on demand from the oil & gas industry have been hardest hit and are showing the slowest recovery. Construction: Overall, the construction industry has remained fairly strong with overall general optimism with open contracts for bids on the horizon. Aviation & Aerospace: While the aviation sector was severely impacted during the pandemic, an influx of federal stimulus and increasing demand for commercial travel is driving some renewed optimism among vendors, manufacturers and companies that support the commercial aviation sector. Manufacturers and companies supporting government/military aviation continues to grow and thrive. Additional insights: With modest gains in the price of oil and gas, some companies that support these industries have seen modest hiring, or re‐hiring. These talent moves are having some trickle‐down impact on local employers who had absorbed some displaced talent during 2020 including trucking, hauling, transportation and manufacturing. Finally, most companies that made complete pivots to remote working are very slowly working on modified “return to work” policies, as many will retain some portion of their workforce as solely, or partially remote. This is likely to impact their space usage and eventually may have impact on where they source some talent, particularly in the technology arena.
Entrepreneurship and Innovation
JANUARY Continued involvement in the project management and consultant engagement for the OKC Economic Resiliency Plan that is being developed by EY in partnership with the City of Oklahoma City, the Alliance for Economic Development, and the Greater OKC Chamber of Commerce. Phase I of the report is complete, and it identified gaps in access to capital for small businesses, resources for small businesses and entrepreneurs, and neighborhood alliance building. Developed and published the 2021 OKC Startup Census survey, wherein we hope to gather at least 100 responses from OKC‐area startup companies and understand their demographics, growth, and economic impact in OKC. Survey is live until February 12th and has been shared across a multitude of channels. Working with gener8tor, a nationally‐ranked startup accelerator program, to establish a program in Oklahoma City in partnership with the Inasmuch Foundation, the McLaughlin Family Foundation, and others. Continued work on the City’s Minority Business Recovery Program to provide remaining businesses with technical assistance in the areas of accounting & finance, web development and marketing, and HR consulting. Staff participated in the OKC Innovation District’s first Programming Committee meeting of 2021 wherein we discussed the Innovation District Symposium, monthly meetups, and activities to build the culture of the district.
3 FEBRUARY Working with OSU Discovery leadership to plan community engagement around entrepreneurship and workforce development. Met with the team from The Cannon, a Houston‐based innovation consultancy, about the Oklahoma City startup ecosystem and the possibility of their expansion into our market to serve entrepreneurs. Continued work with i2E on OKBio and the BIO 2021 Digital Conference to highlight the region. Submitted application for gener8tor’s gBETA programming through the Inasmuch Foundation, and continued work in bringing other partners to the table to support programming for entrepreneurs. Continued involvement in the project management and consultant engagement for the OKC Economic Resiliency Plan that is being developed by EY in partnership with the City of Oklahoma City, the Alliance for Economic Development, and the Greater OKC Chamber of Commerce. Held Council briefings to update Councilmembers on the progress with the EY report to date and field any questions. Continued work on the City’s Minority Business Recovery Program to provide remaining businesses with technical assistance in the areas of accounting & finance, web development and marketing, and HR consulting.
MARCH Working with OSU Discovery leadership to plan community engagement around entrepreneurship and workforce development in and around the OKC Innovation District. Staff attended the virtual OKC Innovation District Symposium on UAV/UAS systems. Completed the Ecosystem Health & Data Challenge presented by Chapman & Company from Omaha, NE. This data methods cohort focused on measuring and reporting on startup ecosystem metrics and tracking efficacy of programs. Partnering with i2E to organize Oklahoma’s presence at BIO Digital in 2021, where local biotech and healthcare companies will have the opportunity to virtually meet with partners around the world. Attended information sessions and training to become a Kiva Trustee organization – enabling us to support and vouch for businesses that apply for Kiva microloans and help to ensure their success as a local business. Continued involvement in the project management and consultant engagement for the OKC Economic Resiliency Plan that is being developed by EY in partnership with the City of Oklahoma City, the Alliance for Economic Development, and the Greater Oklahoma City Chamber of Commerce. Community focus groups, 1:1 interviews, and questionnaires to collect data are beginning to happen with stakeholders.
Aerospace
JANUARY A member of the Economic Development Division staff participated in the Leadership Oklahoma Master Class Series session on the Military in Oklahoma. This event’s goal was to develop a deeper understanding of the power of Oklahoma’s military installations on the defense of our Nation, the economic strength of the state, and the vitality of the communities. Speakers included Brent Kisling, Executive Director for the Oklahoma Department of Commerce, Brig. Gen. (Ret) Ben Robinson, Oklahoma Secretary of Veterans Affairs and Military, and the five Commissioners of the Oklahoma Strategic Military Planning Commission. Due to the continued battle against COVID‐19 and the high number of cases in Oklahoma that continues rising every month, Tinker Air Force Base officials have made the decision to cancel the 2021 Tinker Air and Space Show. The air show, featuring the U.S. Air Force Thunderbirds, was originally scheduled for June 19‐20, 2021. Installation Commander Col. Paul Filcek indicated that the base considered a number of alternatives but determined they could not host an event that would not potentially endanger both the community and members of the base. The second of two B‐52H “Stratofortress” bombers has been resurrected from the Arizona desert at Davis‐Monthan Air Force Base. The aircraft, named Wise Guy, has just completed its regeneration at
4 Tinker Air Force Base and will rejoin the B‐52 fleet at the 5th Bomb Wing at Minot AFB in North Dakota. This means that the number of B‐52 bombers in service will be at Congressionally mandated full strength of 76 aircraft. Wise Guy presented the Oklahoma City Air Logistics Complex and the B‐52 System Program Office with a number of challenges, including an extensive rewiring effort, the manufacture of all wire harnesses, and repair of the main landing gear.
FEBRUARY The Navy’s Strategic Communications Wing One located on Tinker AFB celebrated its Change of Command on February 26. The previous Commodore, CAPT Anthony C. Barnes has retired from active duty, and the new Commodore is CAPT Cedrick L. Jessup who previously served as the Deputy Commodore. Staff from the Economic Development Division attended the Oklahoma Department of Commerce Aerospace Commerce Economic Services (ACES) annual meeting on February 24. The purpose of the event was to provide an update on the state’s Aerospace and Defense Industry. The agenda included a recap of program success through 2020, the release of the 2021 ACES Strategic Plan, and an overview of the planning 2021 tradeshow and marketing opportunity schedule. The chamber will be partnering with ACES in support of their planned 2021 activities.
MARCH Staff from the Economic Development Division attended a seminar on the outlook for the Department of Defense in the Biden Administration. As expected, a new administration is ushering in policy changes. The majority of the discussion focused on three systems, all of which have impacts for Tinker Air Force Base including the transition to the B‐21 Bomber while also upgrading the B‐52 Bomber; the diminished availability of F135 engines that support the F‐35 Fighter; and the transition of the KC‐135 to the KC‐46. There was also a discussion about the increasing use of Unmanned Aerial Systems in lieu of other aircraft which has significantly supported the growth of Kratos’ Unmanned Systems Division which has a production facility in Oklahoma City. Tinker Air Force Base has partnered with the Oklahoma County Public Health Department to do a mass COVID vaccination clinic on the base in March. The vaccines were available to military, military dependents, civilians, contractors, and retirees as long as they were 18 and older, although active duty military and dependents had designated priority times. The chamber hosted a virtual Tinker Leadership Community (TLC) event in March. The Economic Development Division provided an overview of the recently completed 2021 Greater Oklahoma City Aerospace Industry Assessment & Economic Impact Study. This benchmark report serves to facilitate a better understanding of the economic role played by the growing aerospace sector in the region. Additionally, Eric Long, Greater OKC Chamber research economist, shared highlights of the 2021 Greater OKC economic outlook.
Retail
JANUARY Attended Costco OKC distribution virtual grand opening. Site visit with Colorado based retailer evaluating sites in OKC. Opening of Chicken N Pickle for first location in Oklahoma. Worked with local broker on sites for physician clinic evaluating sites in NE OKC. Conference call with Bram’s to discuss expansion plans specific to Innovation District. CREC Forecast Planning Committee meeting. Worked with Cross Development on SPUD for Caliber Collision at 122nd and Penn. Updated demographic information for Chisholm Creek and The Half Development. ULI Retrofitting Suburbia webinar. ICSC Western Division Research webinar. 5
FEBRUARY Chamber Board Presentation highlighting retail activity. ICSC Southern Division Leadership Discussion. Work with Capitol Hill and discuss latest demographic data. Retail 2021 webinar: the key questions driving retail success in the coming year. Work with Hogan Properties on downtown stats for retail prospect. CREC Forecast Committee Meeting. Continued efforts to collaborate with leadership to discuss retail prospects for Adventure District. Site visit with out of state developer on project in west OKC.
MARCH Work with stakeholders and key leadership regarding restaurant options for NE OKC. Retail Presentation to Rotary Club. Meeting with Adventure District and stakeholders to discuss retail/events. Virtual Trivia Happy Hour event with Dallas Partners. Tour of First National with Gary Brooks to learn more about retail space. Update marketing material for Downtown Snapshot brochure.
Research
JANUARY Continued work on 2021 Greater Oklahoma City Economic Forecast, a cooperative effort between the Greater Oklahoma City Chamber, Oklahoma City and Oklahoma City University. Anticipated release date of February 11th, 2021. Provided significant RFP research support for multiple new to market Projects. Continued work on the Greater Oklahoma City Aerospace Industry Impact & Assessment report that will provide a current workforce update on the sector. The report will be used to promote the region to aerospace companies looking to expand and relocate facilities. Conducted field work for C2ER’s Q1 2021 Cost of Living Index, detailing prices paid for select goods and services in Oklahoma City. This is a nationwide project in which prices are collected/compared nearly 300 metros to develop a uniform comparative cost of living index among participating communities. Hired Catherine Palipatana as new Research Coordinator. Catherine is a recent graduate from Cornell University where she graduated with a B.S. in Policy Management with a focus in Business Analytics.
FEBRUARY Released the 2021 Greater Oklahoma City Economic Forecast (in cooperation with Oklahoma City University and the City of Oklahoma City). The forecast is used by both chamber members and outside investors to better understand economic conditions and expectations in the market. Results were presented to the Chamber Board of Directors. Released C2ER’s 2020 Year End Cost of Living Index, detailing prices paid for select goods and services in Oklahoma City. This is a nationwide project in which prices are collected/compared across more than 300 metros to develop a uniform comparative cost of living index among participating communities. Provided significant RFP research support for multiple new to market Projects. Also provided wage analysis to multiple businesses as a way of support Talent and Business Growth initiatives. Continued work on the Greater Oklahoma City Aerospace Industry Impact & Assessment report that will provide a current workforce update on the sector. The report will be used to promote the region to aerospace companies looking to expand and relocate facilities. Release date is scheduled for March 3rd.
6 MARCH The Greater Oklahoma City Aerospace Industry Impact & Assessment report was released on March 3rd. The report will be used to promote the region to aerospace companies looking to expand and relocate facilities. Provided Economic Forecast presentation to the Economic Development team and Tinker Leadership Council. Provided significant RFP research and GIS support for multiple new to market Projects. Also provided wage analysis to multiple businesses as a way of support Talent and Business Growth initiatives. Research staff attended the Commercial Real Estate Council Forecast event that offered insights into current and expected economic and commercial real estate conditions for Oklahoma City. Continued evaluation process for identifying a suitable commercial real estate data feed for OKCEDIS.com, the demographic and property locator tool used for site selection purposes in the Greater OKC Partnership region.
State/Regional/International Engagement
JANUARY Met with Shawnee Forward to discuss speculative building promotional efforts. Met with Oklahoma Department of Commerce ACES team to discuss 2021 aerospace recruitment events. Participated in Oklahoma Department of Commerce FDI strategy meeting. Participated in discussion on Governor’s Economic Development Marketing Team/Oklahoma Economic Development Council merger. Participated as Chamber representative for the Embark Bus Rapid Transit (BRT) Advisory Committee. Discussion with ACOG on modern energy workforce training grant and provided a letter of support. Attended Greater OKC Partnership Quarterly meeting where staff presented a year end summary of recruitment activities as well as an update on the aerospace economic impact analysis research study.
FEBRUARY Partnering with the Greater Oklahoma City Career Technology Centers of Excellence Compact to conduct a workforce talent data research project to support HQ, back‐office/shared services, software/IT/cyber project labor needs. Support the creation of the new Select Oklahoma organization, which is the merging of OEDC and the Governor’s Economic Development Marketing team. Also, a part of the organization’s marketing committee. Working with the local workforce development boards on understanding and developing processes to include letters of funding support for workforce training from the Central Oklahoma Workforce Investment Board, Western Oklahoma Workforce Development Board, and South Central Oklahoma Workforce Investment Board. Met with Oklahoma Department of Commerce to discuss the new RFP project portal and new industry sector‐based project managers, and their impact on the Greater Oklahoma City Partnership. Held two Greater Oklahoma City Partnership Advisory Group meetings. The January 26th meeting provided an update on the Paycheck Protection Program, and gave updates on legislative items, research and competitive projects. The February 23rd meeting discussed ODOC’s new project portal and an overview of competitive project activity. Participated in OG&E’s Power Connections virtual event featuring Ron Bertasi, CEO of GIS WebTech. Participated. In Oklahoma Department of Commerce’s training with site location consultant Bob Hess.
7 MARCH In partnership with the Oklahoma Department of Commerce, met with several manufacturers and bioscience companies that had potential plans to expand in the future. The program was result of our sponsorship of the IMPACT Smart Manufacturing and R&D Virtual Summit. Continued to prep for the IEDC 2022 Annual Conference Participated in Oklahoma Department of Commerce’s monthly EDO call.
8 OKLAHOMA CITY ECONOMIC DEVELOPMENT FOUNDATION FY 20/21 PROGRAM PERFORMANCE MEASUREMENT
PROGRAM 1: CREATE ADDITIONAL LOCAL ECONOMIC OUTCOMES
DIVERSIFY THE LOCAL ECONOMIC BASE
Performance Measure‐ FY 20/21 Target Progress Indicators Recruitment 3rd Qtr. YTD
Engage in efforts to maintain Average number of 62 60 and grow the number of projects each month (goal active prospects considering of 45).
locations or expansions
Number of company 6 14 prospect visits/virtual
tours annually (goal 15).
Projects in pipeline that 2 13 reached a stage of active negotiation (goal of 15 annually).
Conduct outreach to national Contact 200 national site 83 219 site consultants and company consultants and real decision makers estate executives annually.
Contact 75 corporations 16 397 annually.
Participate in target industry Participate in 4 target 1 7 trade shows and forums to industry shows or forums market Oklahoma City annually. Staff attended the Shared Services and (examples include aerospace Outsourcing Network’s Intelligent shows, back‐office/shared Automation show to gain insight into services, software/cyber/tech, robotic process automation and engage bioscience) companies utilizing this technology.
Active recruitment of Implement specific Chamber staff continues specific outreach in aerospace/transportation and marketing campaign in the aerospace, shared service and back‐ back‐office, shared service, the following sectors: office sectors. The Chamber is currently
1 Performance Measure‐ FY 20/21 Target Progress Indicators Recruitment 3rd Qtr. YTD
and other Class A&B office Aerospace/transportation managing a pipeline of 9 aerospace projects user projects industry companies & and 13 shared service projects. back‐office/shared service center projects. Chamber is also partnering with regional CareerTech districts to conduct a shared service sector labor shed study to better analyze and predict current and future labor trends in this sector.
Strategic Investment Program Assist in the review of Chamber staff works alongside the Alliance applicants to the SIP for Economic Development and the City of program and conduct Oklahoma City market, review, evaluate and economic modeling to process applications for the City’s SIP local determine incentive deal closing funds. offerings. Staff has continued to support Project Picasso as the company completes their SIP contract approval process with the ED Trust and City Council.
Performance Measure – FY 20/21 Target Progress Indicators Innovation / 3rd Qtr. YTD Entrepreneurship
Actively support Innovation Actively assist Innovation Staff sits on Innovation District District District board and staff Programming Committee, the entity that launch and promote assists the District in planning symposia, programming in the educational forums, and local district. programming. Staff also involves the Innovation District where appropriate in entrepreneurship ecosystem building activities that the Chamber engages in.
Provide project Staff is engaged in conversations around management for real estate development and placemaking, recruitment/expansion strategic partnerships, and recruitment of projects that could locate industry in the District. We are working in the Innovation District alongside several local companies looking boundaries. to expand into the Innovation District as
2 Performance Measure – FY 20/21 Target Progress Indicators Innovation / 3rd Qtr. YTD Entrepreneurship
well as providers of entrepreneurial resources that may operate from within the Innovation District.
Bioscience Sector Participate in bioscience Staff is planning, in partnership with i2E, sector development efforts the OKBio presence at BIO Digital 2021. including any local We are currently raising support and participation in OKBio/BIO growing the delegation for the all‐digital International conference this year.
Community best practices Host engagements/site Currently participating in the Startup visits with consultants Ecosystem Health Challenge facilitated by providing “best‐in‐class” Chapman & Company, a national programming in core consultancy based in Omaha, NE. Within innovation competencies the 6 month long class, there are 5 other cities represented: Ft. Worth, Des Moines, Tulsa, Waco, and the greater Boston area.
Conduct best practice 1 1 outreach to other communities (goal of 2) Indianapolis, IN
Support existing and new Identify/support Currently working with the Inasmuch programs programming with the Foundation and other community partners following emphasis areas: to bring a nationally‐ranked startup Corporate accelerator program to our market that will innovation increase the number of early‐stage R&D/business and companies that are scaling in Oklahoma technology City. In addition, Chamber staff continues partnerships to work with the City of OKC and The Early/growth‐stage Alliance for Economic Development to company growth design and implement programs for small businesses utilizing COVID‐19 relief funding.
3 Performance Measure – FY 20/21 Target Progress Indicators Inventory 3rd Qtr. YTD
Assist the Alliance for Identify and work on two Staff, in partnership with the Alliance for Economic Development and (2) industrial land sites to Economic Development of Oklahoma City the City of Oklahoma City engage with and City of Oklahoma City continues to identify and accelerate owners/representatives in support land site development around development of industrial a process of moving them Tinker Air Force Base corridors and Eastern land sites. forward for use. Oklahoma City.
Due to increased interest by several prospects on the I‐240/Eastern site, additional detailed information on site readiness was gathered and compiled by City, Chamber and Alliance staff.
Create meaningful Actively market Oklahoma Staff working with City of Oklahoma to relationships with brokers and City primary job market land to outside developers developers to assist in the employment sites to creation and marketing of outside developers (goal of 1 2 primary job site locations. 10 including development partners for Innovation District area as appropriate).
Host at least one formal 0 1 annual local broker engagement event.
Assist Will Rogers Airport Actively partner with Staff continues to put forth Lariat Landing actively market Lariat Landing airport to market site to for applicable competitive projects. property for new investment brokers, developers and tenants throughout year.
4 INCREASE INCOME AND WAGES ACROSS ECONOMIC SPECTRUMS
Performance Measure – FY 20/21 Target Progress Indicators Talent 3rd Qtr. YTD
Actively meet with existing Formal one‐on‐one surveys 27 40 Oklahoma City companies of 50 companies regarding regarding current and future talent development needs. talent needs
Talent consortium Continue talent “Project Accelerate”, a local consortium of consortium work in the private employers with work focus areas following areas: including digital talent needs, recently held their second workshop to formalize the Digital skills core problem the Oklahoma City market including has to address related to digital talent IT/cyber/software availability in the Oklahoma City market. and automation This workshop also included efforts to Aerospace sector formalize root causes and contributing skills factors to this work. Next stages of this work includes formalizing action steps and ownership of the work moving forward.
Work also continues with local major aerospace employers regarding the ability to cooperate on mid‐career talent recruitment from outside markets.
INCREASE LOCAL INVESTMENT IN OKLAHOMA CITY AND INCREASE THE TAX BASE
Performance Measure – FY 20/21 Target Progress Indicators Local Companies 3rd Qtr. YTD
Existing Company Have one‐on‐one contact One‐on one contacts with primary engagement with 250 primary businesses: businesses in Oklahoma 3Q 110 YTD 192 City supporting opportunities for growth, Assists: expansion and service Current Quarter YTD provision (provide assist to 40 63 125‐150 of these companies).
5 Performance Measure – FY 20/21 Target Progress Indicators Local Companies 3rd Qtr. YTD
Actively maintain at least 5 # of expansion projects expansion projects as part Current Quarter YTD of project pipeline. 9 9
Conduct, publish and Staff has assembled an annual BRE update report an annual existing that was presented to the Economic business survey. Development Trust on October 27th, 2020.
IMPROVE OKLAHOMA CITY’S REPUTATION (Marketing and Research Support)
Performance Measure – FY 20/21 Target Progress Indicators Marketing 3rd Qtr. YTD
Marketing: Increased unique Five percent gain year over 38% increase 41% increase visitors to year on www.greateroklahomacity.com and greateroklahomacity.com and 62% increase 70% increase
abetterlifeokc.com on www.abetterlifeokc.com
Complete high‐quality Completion (and use) of 2 4 marketing materials materials throughout the year
Media Relations: Number Up to 300 media stories 10 44 and quality of stories nationally National media stories pitched/placed and assisted.
Performance Measure – FY 20/21 Target Progress Indicators Research 3rd Qtr. YTD
Research tool capacities Maintain a robust array of Maintain 32 research tools and databases research tools capable of that are used in the attraction of new analyzing local, regional businesses to Oklahoma City and in helping and national economic existing companies grow. Tools include trends as well providing input/output economic impact modeling, local data to support job forecasting, business performance existing and new tracking wage analysis, demographics, data companies. visualization, and others.
6 Performance Measure – FY 20/21 Target Progress Indicators Research 3rd Qtr. YTD
Economic impact analysis Maintain specific research Ongoing assistance provided through the tools to help the City and Regional Project Assessment System Alliance review and (RPAS), which provides economic impact analyze request for and fiscal tax impact analysis for each new Strategic Investment to market project evaluated for the Program funding Strategic Investment Program (SIP).
PROGRAM 2: RETAIL RECRUITMENT AND DEVELOPMENT
IMPROVE OKLAHOMA CITY’S BRAND RECOGNITION WITH RETAILERS AND DEVELOPERS
Performance Measure – FY 20/21 Target Progress Indicators Brand Recognition 3rd Qtr. YTD
Participate in key retail Participate in at least 7 3 7 industry shows and forums to shows and forums annually *Please note that trade show attendance highlight Oklahoma City retail has been largely impacted by COVID‐19 offerings travel restrictions.
Industry Leadership Maintain an active role in Serving as the Program Chair for ICSC Red the leadership of ICSC and River Conference, ICSC State Director for other industry events. Oklahoma and actively involved on the ULI Advisory Board. Also currently serving on board for the Commercial Real Estate Council.
Participate in speaking 2 3 events and best practice forums to highlight Oklahoma City retail successes (goal of 2 annually)
Maintain on‐line and physical Maintain and market a Work closely with marketing team to material that highlights retail focused website that highlight and add content/success stories Oklahoma City’s strength and highlights Oklahoma City to the retail website.
7 Performance Measure – FY 20/21 Target Progress Indicators Brand Recognition 3rd Qtr. YTD
opportunities for new retail retail strengths and development opportunities. Updated content and marketing brochure Support the creation of for Downtown Snapshot. marketing/sales materials that highlight Oklahoma City’s advantages and assets.
RECRUIT NEW DESTINATION RETAIL TO OKLAHOMA CITY
Performance Measure – FY 20/21 Target Progress Indicators Recruit Retail 3rd Qtr. YTD
Meet with target destination Goal of 35 annually 7 28 retailers and developers on Virtual meetings, zoom, etc. on‐going basis
Maintain an active pipeline of Maintain an average of 20 19 18 new destination retail projects projects Coordinate and host a 2 4 minimum of three (3) site visits from new to market retailers and developers in Oklahoma City.
Lead Oklahoma City’s retail Lead Oklahoma City’s Conference rescheduled to Dec. 2021 recruitment efforts at ICSC effort to coordinate the ReCon Event meetings, logistics and booth responsibilities for ICSC ReCon as appropriate
Continue an active Contact and track 100 54 133 partnership with Oklahoma individual brokers, City, national and local retailers, or developers brokers/developers to identify and recruit
8 Performance Measure – FY 20/21 Target Progress Indicators Recruit Retail 3rd Qtr. YTD
destination and high quality retail in targeted areas of the city.
ASSIST THE CITY OF OKLAHOMA CITY PREDICT AND INCREASE SALES TAX COLLECTIONS
Performance Measure – FY 20/21 Target Progress Indicators Brand Recognition 3rd Qtr. YTD
Provide data and reports to Create and present an Presented retail data trends to OCEDT Trust the City regarding retail annual retail industry at December meeting. trends to support public report for the City of policy. Oklahoma City
Assist the City of Oklahoma Support retail Continue to meet with developers to City and other partners development incentive discuss projects regarding incentives determine the viability and discussions as appropriate. discussions. need for retail project incentives.
INCREASE OKLAHOMA CITY RESIDENT’S QUALITY-OF-LIFE/SUPPORT EXISTING RETAILERS
Performance Measure – FY 20/21 Target Progress Indicators Quality‐of‐Life 3rd Qtr. YTD
Recruit destination retailers Actively support retail 0 2 and developers to development in NE OKC, economically challenged Innovation District and *Continue to work with the Alliance for regions. South/Southeast OKC. Economic Development, Innovation District and City partners regarding commercial development opportunities in NE OKC and Oklahoma City Adventure District.
Support existing retail Goal of engagement with 5 3 17 districts and neighborhoods. OKC retail or neighborhood districts annually.
9 Performance Measure – FY 20/21 Target Progress Indicators Quality‐of‐Life 3rd Qtr. YTD
Support and assist existing Assist 36 local retailers. 9 31 retailers *Provided assistance to 33 existing retail businesses for COVID‐19 related
PROGRAM 3 (AS NEEDED): ECONOMIC RECOVERY AND REVITALIZATION
Performance Measure – FY 20/21 Target Progress Indicators Economic Recovery 3rd Qtr. YTD
Assist the City of Oklahoma Actively support the Chamber staff continues to work with City City with programming to creation, formatting and and Alliance staff to manage and support business sectors implementation of administer the Small Business Continuity impacted by the COVID‐19 programming in Program in its various forms. health crisis and related partnership with the City economic instability. of OKC and Alliance for Economic Development.
Partner with the City, Alliance Assist the City/Alliance, See above. and other partners with the others with disbursement disbursement of local, State funding as appropriate. and Federal funds designed to aid economic recovery.
Other efforts as required to Other efforts as required. See above. aid in economic recovery/revitalization
10 OVERALL OUTCOMES SUMMARY The combined components of the Chamber/Foundation’s divisions have a key role in supporting The City of Oklahoma City. A group of topline outcomes is being monitored relative to the goal of the ongoing work by the Chamber/Foundation.
Selected Topline Performance Outcomes
Five Year Five Year Annual 2021 Targets Actuals To Targets Actuals Date (End of Q1 of Year 1 of 5 year plan)
New jobs resulting from Chamber assisted projects 20,000 1,448 4,000 1,448 (Existing Business Support + Recruitment)
Average salary of new 15% above $47,614 15% above $47,614 jobs MSA avg. of MSA avg. of $47,059 (2015) $47,059
Capital investment from $2 billion $130.2 million $400 $130.2 projects Million Million
Increase in taxes from Chamber‐assisted $110 $4.6 $22 $4.6 companies and efforts million million million million
NOTE: Targets and Actuals are provided on a calendar year to coincide with Forward Oklahoma City V reporting. For jobs outcome measure, the overall target is an annual average of 4,000. That likely would be split between existing employer growth (est. 2,500) and new employer locations (est. 1,500). Target wages for existing employment growth is 10% above metro average and for new locations it is 15-20% above metro average (overall target wage for new jobs is 15% above average wage).
11 CHAMBER-ASSISTED PROJECTS 2021 FOKC VI Program Metrics March Report
One Year Goal Q1 2021 2021 YTD 5-Year Goals Forward VI (2020)
1 Jobs 1,448 4,000 1,448 20,000 – 24,000**
20% above most 2 Average Salary*** $47,614 $56,471 $47,614 recent average metro wage 3 Capital Investment $130.2M $400M $130.2M $2B
4 Tax Revenue* $4.6M $22M $4.6M $110M
*Includes local property (real & personal) and sales tax collections from Chamber‐assisted projects during period. ** Five year jobs goal include both target goal and stretch goal figures. *** Goal of 20% above average metro wage for jobs involved with Chamber assisted projects (both BRE and recruitment); average salary figure will change each year as new data is available.
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PROJECTS / RETENTIONS
Project 3K – PurFoods Oklahoma City, Oklahoma County NAICS: 311991 Company Description: Perishable Prepared Food Manufacturing Employees: 549 Investments: $110,000,000 Type: New to Market Date: February, 2021
Project Outlet – Jasco Products Co. Oklahoma City, Oklahoma County NAICS: 423690 Company Description: Other Electronic Parts and Equipment Merchant Wholesalers Employees: ‐0‐ Investments: $16,250,000 Type: Project Expansion Date: February, 2021
Project Picasso2 – IDEX Energy – Advanced Flow Solutions Oklahoma City, Oklahoma County NAICS: 333912 Company Description: Air and Gas Compressor Manufacturing Employees: 120 Investments: $2,000,000 Type: Project Expansion Date: February, 2021
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TALENT AND BUSINESS GROWTH ENGAGEMENT / ASSISTANCE
Tapstone Energy Oklahoma City, Oklahoma County NAICS: 213112 Company Description: Support Activities For Oil And Gas Operations Employees: 83 Investments: $‐0‐ Type: Expansion Date: January 2021 Engagement Type: Ongoing Engagement
International Paper Oklahoma City, Oklahoma County NAICS: 322130 Company Description: Paperboard Mills Employees: 6 Investments: $‐0‐ Type: Expansion Date: January 2021 Engagement Type: Ongoing Engagement
Associated Wholesale Grocers, Inc. Oklahoma City, Oklahoma County NAICS: 424410 Company Description: General Line Grocery Merchant Wholesalers Employees: 50 Investments: $‐0‐ Type: Expansion Date: January 2021 Engagement Type: Ongoing Engagement
SafetySkills Oklahoma City, Oklahoma County NAICS: 541618 Company Description: Other Management Consulting Services Employees: 7 Investments: $‐0‐ Type: Expansion Date: January 2021 Engagement Type: Ongoing Engagement
Schwarz Ready Mix Yukon, Cleveland County NAICS: 327320 Company Description: Ready‐Mix Concrete Manufacturing Employees: 20 Investments: $‐0‐ Type: Expansion Date: January 2021 Engagement Type: Ongoing Engagement
Mint Turbines Stroud, Lincoln County NAICS: 336412 Company Description: Aircraft Engine and Engine Parts Manufacturing Employees: 7 Investments: $‐0‐ Type: Expansion Date: January 2021 Engagement Type: Ongoing Engagement Vox Printing Oklahoma City, Oklahoma County NAICS: 323111 Company Description: Commercial Printing (except Screen and Books) Employees: 8 Investments: $‐0‐ Type: Expansion Date: January 2021 Engagement Type: Ongoing Engagement
Dow Aero Logistics, LLC Oklahoma City, Oklahoma County NAICS: 488190 Company Description: Other Support Activities for Air Transportation Employees: 8 Investments: $‐0‐ Type: Expansion Date: January 2021 Engagement Type: Ongoing Engagement
Economic Development Division Page 2 of 5 March 2021 – Chamber Assisted Projects
Paycom Oklahoma City, Oklahoma County NAICS: 541214 Company Description: Payroll Services Employees: 250 Investments: $‐0‐ Type: Expansion Date: January 2021 Engagement Type: Ongoing Engagement
180 Medical Oklahoma City, Oklahoma County NAICS: 423450 Company Description: Medical, Dental, And Hospital Equipment And Supplies Merchant Wholesalers Employees: 130 Investments: $‐0‐ Type: Expansion Date: February 2021 Engagement Type: Ongoing Engagement
Nestle Purina PetCare Company Edmond, Oklahoma County NAICS: 311111 Company Description: Animal Food Manufacturing Employees: 30 Investments: $‐0‐ Type: Expansion Date: February 2021 Engagement Type: Ongoing Engagement
Dolese Bros Co Oklahoma City, Oklahoma County NAICS: 327320 Company Description: Ready‐Mix Concrete Manufacturing Employees: 27 Investments: $‐0‐ Type: Expansion Date: February 2021 Engagement Type: Ongoing Engagement
Phoenix Design & Manufacturing Oklahoma City, Oklahoma County NAICS: 423120 Company Description: Motor Vehicle Supplies and New Parts Merchant Wholesalers Employees: 6 Investments: $‐0‐ Type: Expansion Date: February 2021 Engagement Type: Ongoing Engagement
ATC Drivetrain, LLC Oklahoma City, Oklahoma County NAICS: 331000 Company Description: Primary Metal Manufacturing Employees: 4 Investments: $‐0‐ Type: Expansion Date: February 2021 Engagement Type: Ongoing Engagement
Scott Manufacturing Oklahoma City, Oklahoma County NAICS: 339999 Company Description: All Other Miscellaneous Manufacturing Employees: 3 Investments: $‐0‐ Type: Expansion Date: February 2021 Engagement Type: Ongoing Engagement
Economic Development Division Page 3 of 5 March 2021 – Chamber Assisted Projects
AGC Aerospace & Defense Oklahoma City, Oklahoma County NAICS: 523910 Company Description: Miscellaneous Intermediation Employees: 2 Investments: $‐0‐ Type: Expansion Date: February 2021 Engagement Type: Ongoing Engagement
American Precious Metals Exchange (APMEX) Oklahoma City, Oklahoma County NAICS: 453998 Company Description: All Other Miscellaneous Store Retailers (Except Tobacco Stores) Employees: 50 Investments: $2,000,000 Type: Expansion Date: March 2021 Engagement Type: Ongoing Engagement
Leader Communications Incorporated (LCI) Oklahoma City, Oklahoma County NAICS: 5416 Company Description: Management, Scientific, and Technical Consulting Services Employees: 38 Investments: $‐0‐ Type: Expansion Date: March 2021 Engagement Type: Ongoing Engagement
Tailwind Oklahoma City, Oklahoma County NAICS: 541613 Company Description: Marketing Consulting Services Employees: 23 Investments: $‐0‐ Type: Expansion Date: March 2021 Engagement Type: Ongoing Engagement
Del Real Foods, LLC Oklahoma City, Oklahoma County NAICS: 311412 Company Description: Frozen Specialty Food Manufacturing Employees: 10 Investments: $‐0‐ Type: Expansion Date: March 2021 Engagement Type: Ongoing Engagement
Manhattan Construction Company Oklahoma City, Oklahoma County NAICS: 236220 Company Description: Commercial and Institutional Building Construction Employees: 5 Investments: $‐0‐ Type: Expansion Date: March 2021 Engagement Type: Ongoing Engagement
Manhattan Road & Bridge Oklahoma City, Oklahoma County NAICS: 237310 Company Description: Highway, Street, and Bridge Construction Employees: 5 Investments: $‐0‐ Type: Expansion Date: March 2021 Engagement Type: Ongoing Engagement
Economic Development Division Page 4 of 5 March 2021 – Chamber Assisted Projects
SafetySkills Oklahoma City, Oklahoma County NAICS: 541618 Company Description: Other Management Consulting Services Employees: 3 Investments: $‐0‐ Type: Expansion Date: March 2021 Engagement Type: Ongoing Engagement
Johnson & Associates, Inc. Oklahoma City, Oklahoma County NAICS: 541330 Company Description: Engineering Services (Primary) Employees: 2 Investments: $‐0‐ Type: Expansion Date: March 2021 Engagement Type: Ongoing Engagement
ADG Oklahoma City, Oklahoma County NAICS: 541310 Company Description: Architectural Services Employees: 2 Investments: $‐0‐ Type: Expansion Date: March 2021 Engagement Type: Ongoing Engagement
Greater Oklahoma City Chamber 123 Park Ave • Oklahoma City, OK 73102 phone 405.297.8998 • fax 405.297.8986 www.okcchamber.com • www.greateroklahomacity.com
Economic Development Division Page 5 of 5 March 2021 – Chamber Assisted Projects GREATER OKLAHOMA CITY ECONOMIC FORECAST OKLAHOMA CITY METRO 2021
TABLE OF CONTENTS Overview...... 2 Introduction...... ……………………………………………………………………4 The U.S. Economic Outlook …………………………………………………...... 8 The Oklahoma Economic Outlook ……………………………………………...... 12 The Oklahoma City MSA Economic Outlook...... …………………………………18 Conclusion, Announcements and Retail Successes...... 28 Appendix: Detailed Forecast Tables …………………………………………...... 31
LIST OF FIGURES Figure 1: Oklahoma GDP and Personal Income...... 4 Figure 2: 2nd Quarter Percent Change: GDP and Personal Income...... 5 Figure 3: CARES Act Contributions to Personal Income...... 6 Figure 4: Oklahoma Energy Index...... 7 Figure 5: U.S. Real GDP and Personal Consumption Expenditures...... 8 Figure 6: U.S. Nonfarm Employment...... 9 Figure 7: U.S. Inflation and Interest Rates...... 11 Figure 8: Oklahoma Emloyment Pre-Pandemic...... 12 Figure 9: Oklahoma GDP and Personal Income...... 13 Figure 10: Oklahoma Real GDP and Personal Income...... 14 Figure 11: Oklahoma Population and Per Capita Income...... 15 Figure 12: Oklahoma Nonfarm and Private Employment...... 16 Figure 13: Oklahoma Goods and Services Employment Growth...... 17 Figure 14: Oklahoma City MSA Income and GDP...... 18 Figure 15: Oklahoma City MSA Per Capita Personal Income...... 19 Figure 16: Oklahoma City MSA Population...... 19 Figure 17: Oklahoma City MSA Nonfarm Employment...... 20 Figure 18: Oklahoma City MSA Goods Sector Employment...... 21 Figure 19: Oklahoma City MSA Services Sector Employment...... 21 Figure 20: Crude Oil Production (OK and US) …………………………………………………………...... 22 Figure 21: Baker Hughes Active Rig Count...... 22 Figure 22: Oklahoma City MSA Oil and Gas Employment...... 23 Figure 23: Oklahoma City MSA Manufacturing Employment...... 24 Figure 24: Oklahoma City MSA Financial Services Employment...... 25 Figure 25: Oklahoma City MSA Leisure Servics Employment...... 26 Prepared by Russell R. Evans, Ph.D. Eric Long Associate Professor of Economics Research Economist Executive Director, Steven C. Agee Economic Research and Policy Institute Economic Development Division Meinders School of Business, Oklahoma City University Greater Oklahoma City Chamber 405-297-8976 [email protected]
2021 ECONOMIC FORECAST 1 The Greater Oklahoma City Economic Forecast provides a comprehensive analysis of the national, state and metro economies. It OVERVIEW details historic trends, a snapshot of the current situation, as well as a forecast for 2021.
In 2021, the Oklahoma City metro should benefit from UNEMPLOYMENT RATES REMAIN LOW improved economic conditions as the nation gradually AFTER SIGNIFICANT FLUCTUATION exits the pandemic economic reality and the bottom to the current energy cycle. This should set the stage The Oklahoma City metro finished 2020 with an for a return to more traditional growth in 2022 as the unemployment rate of 4.8% and a yearly average of Oklahoma City region builds upon pre-pandemic levels approximately 6.5%. Monthly unemployment rates ranged of economic activity. Overall in as low as 2.7% (March) and as 2020, year-over-year nonfarm high as 14.8% (April). In March, annual job growth declined by heading into the pandemic, the 3% or shed 19,700 jobs in the Oklahoma City MSA had the Oklahoma City MSA. The largest lowest unemployment rate among percentage year-over-year job all large metros in the nation gains were found in transport/ and the lowest unemployment warehouse/utilities (+3.2%), retail rate again in September. trade (+2.9%), health services Oklahoma City finished out the (+2.4%), financial services year ranked among the lowest (+0.7%) and scientific services 10 unemployment rates for large (+0.5%). metros (more than 1 million in population). Throughout the year, The largest declines were rankings fluctuated from No. found in oil and gas (-30.7%), 1 (March) to No. 34 (April). wholesale trade (-9.9%), Unemployment rates in the final information (-9.0%), leisure five months of the year closely services (-8.5%), food services paralleled what the metro and administration (-6.2%), saw coming out of the 2009 administrative support (-6.1%) recession. and manufacturing (-6.0%). VALUE OF Positive Oklahoma City metro job growth in 2021 is expected, CONSTRUCTION with the more optimistic job PROJECTS forecast scenario growing by According to Dodge, in 2020 the 3.2% or approximately 20,500 total construction value of tracked jobs by the end of 2021. This contract projects (residential, growth parallels expectations for non-residential and non-building the nation. An alternative model infrastructure) in the Oklahoma shows a more pessimistic start to City MSA was $3.5 billion. That 2021 with the Oklahoma City was 6% less than the prior year. MSA job growing at 1.5% or just The largest positive year-over- under 10,000 jobs added by the year percentage gains were end of the fourth quarter – and found in the hotels and motels, hospitals and other health overall jobs total still below 2019 levels. The local economy treatment and religious buildings categories. The largest remains vulnerable to national and global uncertainties year-over-year construction value declines were in the surrounding COVID-19 that may cause a delay in office and bank, government service and miscellaneous improved economic conditions. non-residential buildings categories. For 2021, the total 2 2021 ECONOMIC FORECAST construction value of contract projects is forecasted by Since 2016, 23,914 jobs with payroll in excess of $1.2 Dodge to be relatively flat and decline by 3% with small, billion and $2.2 billion in capital investment has been positive gains in both non-residential and residential. A announced by Chamber-assisted companies. large 21% decline is expected in non-building (bridges, water supply systems and other). This non-building As part of that program, overall metrics are tracked for category is what is expected to bring total construction Chamber-assisted companies in several different areas: value into negative territory year-over-year. new startup companies assisted, job growth from existing companies as well as new to market firms, wages, capital As described in the methodology (page 30), the Greater investment and growth in the tax base. In 2020, 49 Oklahoma City outlook and forecast for construction Chamber-assisted companies announced plans for the employment is entirely determined by the past information creation of 3,866 jobs with an annual average salary of contained in the dataset and the econometric specification $54,983. In addition, those same companies announced of the models. So, forecasted construction contract detail or more than $307 million in capital investment and $212 proposed infrastructure investment is not incorporated into million in payroll. the baseline forecast for employment. The Greater Oklahoma City Chamber ended 2020 JOB GROWTH with 58 active projects in its economic development pipeline. The pipeline tracks companies or projects that are 2020 brought about the end of a five-year economic potentially looking to relocate or expand in the Greater development program called Forward Oklahoma City V. Oklahoma City region. The largest number of projects by This is the fifth iteration of the Forward campaign that has facility type included manufacturing, office, distribution, provided longer-term strategic planning to the region’s aviation and shared-services/call center. economic development initiatives over the past 25 years.
2021 ECONOMIC FORECAST 3 The ability of the Oklahoma economy to withstand 2020 may well depend on the ability of the U.S. INTRODUCTION economy to extend its record-breaking expansion one more year. - 2020 Greater Oklahoma City Forecast
A year ago, as the 2020 outlook was being produced, production. The result was a perplexing mix of a collapse Oklahoma’s economic activity was already stressed. A in production and a spike in personal income (see figure severe and ongoing oil and gas contraction had already below). spilled over into the other goods-producing sectors (construction and manufacturing) and was constraining the The Oklahoma economy moved squarely into recession in pace of growth in the services sector. At the time, the novel the first quarter of 2020. It is worth noting again, that this coronavirus was still a foreign affair with the hope that, like move was largely foreseen and the result of the preceding previous coronavirus outbreaks, the COVID-19 pandemic energy contraction. The coronavirus pandemic was a would remain regional rather than global. Oklahoma’s contributing rather than a leading factor. By the second economic hopes hinged on the balance of outside forces quarter, however, the relative weight of the contributing being strong enough to offset the internal weakness. elements had flipped. The coronavirus and accompanying economic shutdowns led GDP in the second quarter to Were Oklahoma’s hopes realized? Yes and no.Personal Concerns income contract at an annualized rate of 31.1%. This collapse of the energy bust quicklyReal yielded GDP, to the reality(millions of a of dollars,in productionPer capitaremoved personal access to income for the many global pandemic. In an attemptChained to 2012stall the $ paceseasonally of virus adjusted)workers removedincome (dollars)from productive 2/ activity. To replace transmission, while the healthOK_RGDP care system developedOK_PI this lost income,OK_PCPI federal policy delivered a combination Annualized Percent Change the processes 2019:Q1to handle the coming198134.5 storm, economic 186866.4of direct economic impact payments,47296 Real forgivable GDP Personal Income Per Capita Income activity was severely2019:Q2 restricted. The 197739.2result was a collapse 186543.7paycheck protection program47170 loans and an expanded -0.8% -0.7% -1.1% in measured economic2019:Q3 activity as communities198518.9 sheltered 187709.4unemployment insurance program47406 with a weekly 1.6% 2.5% 2.0% in place to stay2019:Q4 safer at home. At the197208.9 same time, federal 188190.4supplement. The combined result47471 was a second-quarter-2.6% 1.0% 0.5% and local programs2020:Q1 pumped trillions193501.4 of dollars of transfers 189373.6spike in personal income of more47728 than 47%. -7.3% 2.5% 2.2% 2020:Q2 176264.4 208784.4 52568 -31.1% 47.7% 47.2% into the system2020:Q3 to replace the lost income186075.7 from foregone 195168.1 49078 24.2% -23.6% -24.0%
Oklahoma GDP and Personal Income 60.0% 50.0% 47.2% 40.0%
30.0% 24.2% 20.0% 10.0% 1.6% 2.0% 0.5% 2.2% 0.0% -0.8% -1.1% -10.0% -2.6% -7.3%
Percent Change, Annual Rate Annual Change, Percent -20.0% -30.0% -24.0% -31.1% -40.0% 2019:Q2 2019:Q3 2019:Q4 2020:Q1 2020:Q2 2020:Q3
Real GDP Personal Income Per Capita Income Figure 1: Oklahoma GDP and Personal Income
4 2021 ECONOMIC FORECAST 2020 Q1-2020 Q2 2020 Q1-2020 Q2 State % Change, PI, Annual Rate % Change, GDP, Annual Rate Divergence Oklahoma 47.1 -31.1 1.514469 New Mexico 40.2 -28.3 1.420495 Texas 34.1 -29 1.175862 Missouri 31.4 -32.1 0.978193 Colorado 26.4 -28.1 0.939502 Wyoming 28.2 -32.5 0.867692 Oklahoma was not alone in this second quarterKansas experience. But the gap between25.3 personal income gains and-30.3 GDP 0.834983 losses was larger in Oklahoma than in surroundingNebraska states. The experience in 23.8New Mexico was similar, suggesting-31.0 some 0.767742 of the energy industry weakness unrelated to the pandemic was swept up in the pandemic policy response.
2nd Quarter Percent Change: GDP and Personal Income
55 47.1 40.2 34.1 31.4 35 28.2 26.4 25.3 23.8
15
-5
-25
Percent Change, Annualized -28.3 -28.1 -31.1 -29.0 -32.1 -32.5 -30.3 -31.0 -45 Oklahoma New Mexico Texas Missouri Colorado Wyoming Kansas Nebraska
Personal Income State GDP Figure 2: 2nd Quarter Percent Change: GDP and Personal Income
2021 ECONOMIC FORECAST 5 Colorado Kansas Missouri Nebraska New Mexico Oklahoma Wyoming US 7-State Sha 2,785,600 1,423,000 2,901,600 1,027,100 856,900 1,703,400 289,600 150,939,000 7.3%
$ Millions UI 11568.4 3572.2 6070.7 1230.3 2284.3 7072.4 753.5 816000 4.0% EIP 18396The 9851 initial round 21465of coronavirus 6707relief consisted 7106primarily of an 13459 expanded unemployment 2034 insurance 1078100program (coverage, 7.3% duration and federal supplements), direct economic impact payments and forgivable paycheck protection loans. To PPP Loans 4779.9 2030.6 3867 1097 911.7 3024.4 436.8 209100 7.7% allow for comparison across states, the federal flow of dollars through each of these programs was divided by the level of nonfarm employment in 2019. The figure below underscores the generosity of each of these programs in Oklahoma. The federal flow of income support through the expanded unemployment insurance program was more than $4,000 1000000 Per Worker Colorado Oklahomaper worker.New Direct Mexico economicWyoming impact Kansaspayments and PPPMissouri loans contributedNebraska nearlyTexas $8,000 and $2,000 per worker, UI $ 4,152.93 4,151.93$ respectively. 2,665.77$ The combined 2,601.86$ effect was$ a 47% 2,510.33 spike in personal 2,092.19$ income 1,197.84$ amid the recession. 4,604.95$ A complicating factor in the EIP $ 6,603.96 7,901.26$ outlook for 2021 8,292.68$ is the unknown 7,023.48$ future$ policy 6,922.70 response. 7,397.64$ The recently passed 6,530.04$ $900 7,088.81$ billion economic relief package is PPP Loans $ 1,715.93 1,775.51$ expected to 1,063.95$ be followed by 1,508.29$ another large$ 1,426.99 policy response 1,332.71$ as the new 1,068.06$ administration 1,876.01$ prioritizes economic relief.
CARES Act Contributions to Personal Income $9,000.00
$8,000.00
$7,000.00 (Mil) Texas 12,801,300.00 UI 58949.4 4,604.95 $6,000.00 EIP 90746 7,088.81 $5,000.00 PPP 24015.4 1,876.01 $4,000.00
$3,000.00
$2,000.00
$1,000.00
$- Colorado Oklahoma New Mexico Wyoming Kansas Missouri Nebraska Texas
UI EIP PPP Loans Figure 3: CARES Act Contributions to Personal Income (UI=Unemployment Insurance, EIP=Economic Impact Payment or Stimulus, PPP=SBA Paycheck Protection Program)
6 2021 ECONOMIC FORECAST The aggressive fiscal policy response makes this energy cycle experience very different for Oklahoma. Normally, an energy contraction associated with building crude inventories and falling prices stifles the state economy while offering a minor boost to the national economy. As a result, no federal policy support is generally available. We are usually left to deal with our energy cycle on our own. In contrast, this cycle was swallowed up in the pandemic response. It would be wrong to conclude that the state’s economy is sufficiently separated from the state’s energy industry that future energy cycles will pass similarly. Oklahoma’s oil and natural gas industry is at the end of a nearly unparalleled contraction. New drilling is all but shut down in the state. In September 2014, the state averaged 214 active rigs per week. After a stall to only 57 active rigs per week in May 2016, drilling activity recovered to 145 active rigs per week in November Date Energy Index 2018. In December 2020, weekly active rig counts averaged only 14. Industry activity is working towards a slow crawl Jan-00 89.75687242 Jan-00 105.22 from the bottom of this cycle with a highly uncertain future. While some move toward recovery in 2021 is anticipated, the Feb-00 90.43299452 0.8% Feb-00 105.22 combination of economic conditions, geology and federal regulatory policy is likely to preclude any rapid run-up to the Mar-00 91.96040376 1.7% Mar-00 105.22 Apr-00 90.59463104 -1.5% Apr-00 105.22 next boom. May-00 95.32492521 5.2% May-00 105.22 Jun-00 98.4003369 3.2% Jun-00 105.22 Oklahoma Energy Index Jul-00 100.6682204 2.3% Jul-00 105.22 300 Aug-00 104.6885789 4.0% Aug-00 105.22 Sep-00 107.1630944 2.4% Sep-00 105.22 Oct-00 106.7549709 -0.4% Oct-00 105.22 Nov-00 108.2488694 1.4% Nov-00 105.22 250 Dec-00 116.0061022 7.2% Dec-00 105.22 0
0 Jan-01 114.1472259 -1.6% Jan-01 105.22 0 2 Feb-01 113.718549 -0.4% Feb-01 105.22 r a e 200 Mar-01 114.6752798 0.8% Mar-01 105.22 Y Apr-01 114.3301623 -0.3% Apr-01 105.22 n i
0 May-01 115.0661053 0.6% May-01 105.22 0
1 Jun-01 117.8807298 2.4% Jun-01 105.22
=
150 Jul-01 115.7307371 -1.8% Jul-01 105.22 e s Aug-01 115.4488185 -0.2% Aug-01 105.22 a B
, Sep-01 109.6530492 -5.0% Sep-01 105.22 x
e Oct-01 106.8265476 -2.6% Oct-01 105.22 d 100 n I
Nov-01 103.1010504 -3.5% Nov-01 105.22 y g
r Dec-01 100.5625544 -2.5% Dec-01 105.22 e
n Jan-02 97.60860208 -2.9% Jan-02 105.22 E 50 Feb-02 98.10426349 0.5% Feb-02 105.22 Mar-02 101.1302394 3.1% Mar-02 105.22 Apr-02 102.5533126 1.4% Apr-02 105.22 May-02 107.0174808 4.4% May-02 105.22 0 Jun-02 107.4486455 0.4% Jun-02 105.22 Jul-02 106.9019796 -0.5% Jul-02 105.22 Aug-02 107.9578487 1.0% Aug-02 105.22 Sep-02 106.2532545 -1.6% Sep-02 105.22 OK Energy Index Current 6 per. Mov. Avg. (OK Energy Index) Oct-02 105.3903447 -0.8% Oct-02 105.22 Figure 4: Oklahoma Energy Index Nov-02 104.5232428 -0.8% Nov-02 105.22 Dec-02 106.9755323 2.3% Dec-02 105.22
The year ahead remains extraordinarily uncertain. There is some hope that widespread vaccination provides an exit to this pandemic period. There is some hope that Oklahoma’s energy industry finds its footing. There is some expectation Jan-03 110.5764921 3.4% Jan-03 105.22 that, in the meantime, personal income is artificially supported by federal economic policy. But beneath these hopes and expectations lay the inescapable reality that the state’s economy is distressed. At best, the year ahead may provide an opportunity to emerge from a period of extreme economic and social hardship, take stock of local industries and Feb-03 115.373476 4.3% Feb-03 105.22 opportunities, and navigate towards solid economic growth in 2022.
2021 ECONOMIC FORECAST 7 Mar-03 113.6755049 -1.5% Mar-03 105.22
Apr-03 112.2372634 -1.3% Apr-03 105.22
May-03 114.4249127 1.9% May-03 105.22
Jun-03 117.6147117 2.8% Jun-03 105.22 Jul-03 116.6268962 -0.8% Jul-03 105.22 Aug-03 119.136064 2.2% Aug-03 105.22 Sep-03 118.1419006 -0.8% Sep-03 105.22 Oct-03 119.1375835 0.8% Oct-03 105.22
Nov-03 119.4081263 0.2% Nov-03 105.22 Dec-03 123.0427808 3.0% Dec-03 105.22 Jan-04 124.3805988 1.1% Jan-04 105.22 Feb-04 124.5918957 0.2% Feb-04 105.22 Mar-04 126.9851598 1.9% Mar-04 105.22 Apr-04 129.5533157 2.0% Apr-04 105.22 May-04 132.6406308 2.4% May-04 105.22 Jun-04 134.8740523 1.7% Jun-04 105.22 Jul-04 135.5760571 0.5% Jul-04 105.22 Aug-04 136.1590063 0.4% Aug-04 105.22 Sep-04 135.2293168 -0.7% Sep-04 105.22 Oct-04 140.1338261 3.6% Oct-04 105.22 Nov-04 139.9985542 -0.1% Nov-04 105.22 Dec-04 139.6167878 -0.3% Dec-04 105.22 Jan-05 141.3470643 1.2% Jan-05 105.22 Feb-05 142.9027754 1.1% Feb-05 105.22 Mar-05 145.9554212 2.1% Mar-05 105.22 Apr-05 145.8213849 -0.1% Apr-05 105.22 May-05 145.8997213 0.1% May-05 105.22 Jun-05 149.3319243 2.4% Jun-05 105.22 Jul-05 151.4146842 1.4% Jul-05 105.22 Aug-05 157.199375 3.8% Aug-05 105.22 Sep-05 160.2616434 1.9% Sep-05 105.22 Oct-05 162.0359655 1.1% Oct-05 105.22 Nov-05 159.833005 -1.4% Nov-05 105.22 Dec-05 164.7891049 3.1% Dec-05 105.22 Jan-06 162.8765875 -1.2% Jan-06 105.22 Feb-06 165.219074 1.4% Feb-06 105.22 Mar-06 167.084843 1.1% Mar-06 105.22 Apr-06 171.7176246 2.8% Apr-06 105.22 May-06 173.3505687 1.0% May-06 105.22 Jun-06 177.1229914 2.2% Jun-06 105.22 Jul-06 178.3589683 0.7% Jul-06 105.22 Aug-06 183.6880562 3.0% Aug-06 105.22 Sep-06 178.2939131 -2.9% Sep-06 105.22 Oct-06 178.2463522 0.0% Oct-06 105.22 Nov-06 181.6272656 1.9% Nov-06 105.22 Dec-06 182.8012172 0.6% Dec-06 105.22 Jan-07 179.3973264 -1.9% Jan-07 105.22 Feb-07 183.1082681 2.1% Feb-07 105.22 Mar-07 184.6635777 0.8% Mar-07 105.22 Apr-07 185.4545506 0.4% Apr-07 105.22 May-07 187.9301582 1.3% May-07 105.22 Jun-07 192.0566078 2.2% Jun-07 105.22 Jul-07 193.7715027 0.9% Jul-07 105.22 Aug-07 196.1999388 1.3% Aug-07 105.22 Sep-07 196.8772944 0.3% Sep-07 105.22 Oct-07 202.9135053 3.1% Oct-07 105.22 Nov-07 207.7620558 2.4% Nov-07 105.22 Dec-07 207.4326518 -0.2% Dec-07 105.22 Jan-08 209.2658516 0.9% Jan-08 105.22 Feb-08 212.2309875 1.4% Feb-08 105.22 Mar-08 217.1705924 2.3% Mar-08 105.22 Apr-08 221.2233465 1.9% Apr-08 105.22 May-08 227.1994968 2.7% May-08 105.22 Jun-08 233.8252181 2.9% Jun-08 105.22 Jul-08 232.4812923 -0.6% Jul-08 105.22 Aug-08 230.142282 -1.0% Aug-08 105.22 Sep-08 227.2100927 -1.3% Sep-08 105.22 Oct-08 220.3563702 -3.0% Oct-08 105.22 Nov-08 213.1410743 -3.3% Nov-08 105.22 Dec-08 201.4340782 -5.5% Dec-08 105.22 Jan-09 188.8163142 -6.3% Jan-09 105.22 Feb-09 178.8215519 -5.3% Feb-09 105.22 Mar-09 171.8219728 -3.9% Mar-09 105.22 Apr-09 160.1627289 -6.8% Apr-09 105.22 May-09 156.5639328 -2.2% May-09 105.22 Jun-09 155.2371935 -0.8% Jun-09 105.22 Jul-09 150.9031573 -2.8% Jul-09 105.22 Aug-09 149.5661298 -0.9% Aug-09 105.22 Sep-09 145.5870882 -2.7% Sep-09 105.22 Oct-09 147.1531762 1.1% Oct-09 105.22 Nov-09 148.4888992 0.9% Nov-09 105.22 Dec-09 154.5323489 4.1% Dec-09 105.22 Jan-10 157.6310377 2.0% Jan-10 105.22 Feb-10 158.677709 0.7% Feb-10 105.22 Mar-10 160.0426905 0.9% Mar-10 105.22 Apr-10 163.784463 2.3% Apr-10 105.22 May-10 165.0230271 0.8% May-10 105.22 Jun-10 170.6583617 3.4% Jun-10 105.22 Jul-10 172.6041051 1.1% Jul-10 105.22 Aug-10 174.5260494 1.1% Aug-10 105.22 Sep-10 174.0585598 -0.3% Sep-10 105.22 Oct-10 177.8930762 2.2% Oct-10 105.22 Nov-10 179.2334684 0.8% Nov-10 105.22 Dec-10 186.287821 3.9% Dec-10 105.22 Jan-11 189.0435101 1.5% Jan-11 105.22 Feb-11 188.6285209 -0.2% Feb-11 105.22 Mar-11 193.6248289 2.6% Mar-11 105.22 Apr-11 198.7182365 2.6% Apr-11 105.22 May-11 200.5577602 0.9% May-11 105.22 Jun-11 203.5912053 1.5% Jun-11 105.22 Jul-11 208.7314029 2.5% Jul-11 105.22 Aug-11 208.8679439 0.1% Aug-11 105.22 Sep-11 210.6266679 0.8% Sep-11 105.22 Oct-11 212.6292882 1.0% Oct-11 105.22 Nov-11 214.5347021 0.9% Nov-11 105.22 Dec-11 217.1733631 1.2% Dec-11 105.22 Jan-12 213.8906713 -1.5% Jan-12 105.22 Feb-12 216.5370467 1.2% Feb-12 105.22 Mar-12 217.4062564 0.4% Mar-12 105.22 Apr-12 216.6783018 -0.3% Apr-12 105.22 May-12 220.6496954 1.8% May-12 105.22 Jun-12 221.4194989 0.3% Jun-12 105.22 Jul-12 226.1684601 2.1% Jul-12 105.22 Aug-12 227.2754819 0.5% Aug-12 105.22 Sep-12 225.5691867 -0.8% Sep-12 105.22 Oct-12 227.0414158 0.7% Oct-12 105.22 Nov-12 227.133529 0.0% Nov-12 105.22 Dec-12 224.6360126 -1.1% Dec-12 105.22 Jan-13 224.9758224 0.2% Jan-13 105.22 Feb-13 226.5508111 0.7% Feb-13 105.22 Mar-13 227.6166228 0.5% Mar-13 105.22 Apr-13 229.3303241 0.8% Apr-13 105.22 May-13 231.5731507 1.0% May-13 105.22 Jun-13 232.0816641 0.2% Jun-13 105.22 Jul-13 230.6199449 -0.6% Jul-13 105.22 Aug-13 230.4815751 -0.1% Aug-13 105.22 Sep-13 230.0672898 -0.2% Sep-13 105.22 Oct-13 231.035736 0.4% Oct-13 105.22 Nov-13 229.5636123 -0.6% Nov-13 105.22 Dec-13 233.4443517 1.7% Dec-13 105.22 Jan-14 233.2081035 -0.1% Jan-14 105.22 Feb-14 237.1153323 1.7% Feb-14 105.22 Mar-14 235.5875168 -0.6% Mar-14 105.22 Apr-14 236.5850287 0.4% Apr-14 105.22 May-14 238.82663 0.9% May-14 105.22 Jun-14 243.4478755 1.9% Jun-14 105.22 Jul-14 244.2981666 0.3% Jul-14 105.22 Aug-14 246.5036169 0.9% Aug-14 105.22 Sep-14 247.3392793 0.3% Sep-14 105.22 Oct-14 246.2382927 -0.4% Oct-14 105.22 Nov-14 247.316488 0.4% Nov-14 105.22 Dec-14 240.4632609 -2.8% Dec-14 105.22 Jan-15 228.2511319 -5.1% Jan-15 105.22 Feb-15 215.8014186 -5.5% Feb-15 105.22 Mar-15 202.9776558 -5.9% Mar-15 105.22 Apr-15 191.8898614 -5.5% Apr-15 105.22 May-15 186.2143691 -3.0% May-15 105.22 Jun-15 183.8858651 -1.3% Jun-15 105.22 Jul-15 181.574044 -1.3% Jul-15 105.22 Aug-15 177.563807 -2.2% Aug-15 105.22 Sep-15 175.1794335 -1.3% Sep-15 105.22 Oct-15 167.2793836 -4.5% Oct-15 105.22 Nov-15 160.7233588 -3.9% Nov-15 105.22 Dec-15 156.9936092 -2.3% Dec-15 105.22 Jan-16 153.2489506 -2.4% Jan-16 105.22 Feb-16 146.7187084 -4.3% Feb-16 105.22 Mar-16 142.0168594 -3.2% Mar-16 105.22 Apr-16 140.2042012 -1.3% Apr-16 105.22 May-16 137.8349367 -1.7% May-16 105.22 Jun-16 140.5466634 2.0% Jun-16 105.22 Jul-16 140.4686591 -0.1% Jul-16 105.22 Aug-16 141.4898857 0.7% Aug-16 105.22 Sep-16 143.4228653 1.4% Sep-16 105.22 Oct-16 147.7134564 3.0% Oct-16 105.22 Nov-16 147.829216 0.1% Nov-16 105.22 Dec-16 155.9053938 5.5% Dec-16 105.22 Jan-17 156.9591492 0.7% Jan-17 105.22 Feb-17 161.7691104 3.1% Feb-17 105.22 Mar-17 164.1232682 1.5% Mar-17 105.22 Apr-17 170.6224102 4.0% Apr-17 105.22 May-17 172.0433083 0.8% May-17 105.22 Jun-17 176.2447961 2.4% Jun-17 105.22 Jul-17 179.2624717 1.7% Jul-17 105.22 Aug-17 181.0636249 1.0% Aug-17 105.22 Sep-17 183.1948046 1.2% Sep-17 105.22 Oct-17 183.9096035 0.4% Oct-17 105.22 Nov-17 186.4043412 1.4% Nov-17 105.22 Dec-17 187.818382 0.8% Dec-17 105.22 Jan-18 191.3616803 1.9% Jan-18 105.22 Feb-18 189.5771334 -0.9% Feb-18 105.22 Mar-18 191.5254047 1.0% Mar-18 105.22 Apr-18 194.7570051 1.7% Apr-18 105.22 May-18 199.0012039 2.2% May-18 105.22 Jun-18 202.0763101 1.5% Jun-18 105.22 Jul-18 204.286187 1.1% Jul-18 105.22 Aug-18 206.0436972 0.9% Aug-18 105.22 Sep-18 206.4101956 0.2% Sep-18 105.22 Oct-18 208.913911 1.2% Oct-18 105.22 Nov-18 208.6569227 -0.1% Nov-18 105.22 Dec-18 206.5079791 -1.0% Dec-18 105.22 Jan-19 198.2058681 -4.0% Jan-19 105.22 Feb-19 193.6563021 -2.3% Feb-19 105.22 Mar-19 192.9292196 -0.4% Mar-19 105.22 Apr-19 190.7120157 -1.1% Apr-19 105.22 May-19 186.7583424 -2.1% May-19 105.22 Jun-19 182.9753169 -2.0% Jun-19 105.22 Jul-19 176.6325595 -3.5% Jul-19 105.22 Aug-19 169.9276413 -3.8% Aug-19 105.22 Sep-19 165.6228382 -2.5% Sep-19 105.22 Oct-19 161.2634874 -2.6% Oct-19 105.22 Nov-19 156.800726 -2.8% Nov-19 105.22 Dec-19 153.2323706 -2.3% Dec-19 105.22 Jan-20 147.5836236 -3.7% Jan-20 105.22 Feb-20 144.9233269 -1.8% Feb-20 105.22 Mar-20 136.5167743 -5.8% Mar-20 105.22 Apr-20 115.2603855 -15.6% Apr-20 105.22 May-20 107.382907 -6.8% May-20 105.22 Jun-20 103.5934671 -3.5% Jun-20 105.22 Jul-20 103.2257421 -0.4% Jul-20 105.22 Aug-20 105.2725103 2.0% Aug-20 105.22 Sep-20 104.7881596 -0.5% Sep-20 105.22 Oct-20 104.6303837 -0.2% Oct-20 105.22 Nov-20 105.2216898 0.6% Nov-20 105.22 THE U.S. ECONOMIC OUTLOOK
Assessing the true state of the national economy is less straightforward than the analysis of Oklahoma. Before the pandemic, the U.S. economy enjoyed an uninterrupted run of economic growth dating back to the first quarter of 2014. The growth was modest but persistent. Signs of slowing activity emerged in late 2019 before the arrival of the novel coronavirus in early 2020 froze much of the economic system in place. While there is optimism that vaccination programs can move the economy past this period of pandemic later in 2021, it’s not clear what will be found in its wake. Behaviors like business travel, social enjoyment of the arts and unquestioning belief in the virtues of density may be slow to return to pre-pandemic levels. For much of the labor force, there will be a reckoning of their personal income and production realities. At the very least, it seems unlikely that pent up demand is waiting in the wings to launch economic activity back to and beyond trend growth. Instead, it is more likely that we see a slow reconciliation of the true economic hardship imposed by the pandemic and the policy that obscures that reality. The U.S. economy returns to growth in 2021 with real GDP growing by roughly 2%, a pace that would have real GDP return to pre- pandemic levels only in late 2021. Barring another impediment to growth, economic activity should post stronger gains in 2022. U.S. Real GDP and Personal Consumption Expenditures 5.0 U.S. Real GDP and Personal Consumption Expenditures 5.0 3.8 4.0 3.8 4.0 3.1 2.9 2.9 2.8 3.0 2.6 3.1 2.7 2.7 2.9 2.9 2.5 2.4 2.3 2.5 2.8 3.0 2.6 2.2 2.1 2.7 2.7 2.1 2.3 1.9 2.5 2.4 2.3 2.5 1.9 2.0 1.6 2.2 2.1 2.1 2.3 1.5 1.9 1.9 2.0 1.5 1.6 1.0 1.0 0.0
% Change, Annual 0.0
% Change, Annual -1.0 -1.0 -2.0 -2.0 -3.0 -2.6 -2.5 -3.0 2012 2013 2014 2015 2016 2017 2018 2019-2.6 2020-2.5 2021 2022 2012 2013 2014 2015 2016 2017Year 2018 2019 2020 2021 2022 Year Real GDP Personal Consumption Expenditures Real GDP Personal Consumption Expenditures Figure 5: U.S. Real GDP and Personal Consumption Expenditures
8 2021 ECONOMIC FORECAST Nonfarm employment plummeted in 2020 as large segments of production were disrupted by the pandemic and policies meant to contain it. Before the pandemic, there were approximately 152 million nonfarm payroll jobs in the U.S. economy. In the spring of 2020, with much of the country in a shelter-in-place strategy, that number fell to 130 million. As steps have been taken to re-engage the economy, some jobs have returned with the payroll job count currently at 142 million. The pace of job recovery has slowed, even losing jobs in December. The difficulty in regaining jobs will carry into 2021 and is only expected to accelerate later in the year. As payroll job counts fell, the share of workers in the labor force who were unemployed spiked to 14.8%. Measuring the unemployment rate proved particularly challenging as workers on temporary leave from their positions, even if unpaid, are still counted as employed. The survey administered to participating households struggled to classify confused workers as it was not clear if their leave was temporary or permanent. In the end, reported unemployment rates probably understate the true health of the labor market. The unemployment rate is currently 6.7% and is expected to fall modestly through 2021, averaging 5.7% for the year.
U.S. Nonfarm Employment 155.0 18.0
150.9 151.3 16.0 150.0 147.5 14.0
145.0 12.0 142.4
10.0 140.0 8.1 8.0
5.7 135.0 6.0 4.7 Civilian Civilian Unemployment Rate
Nonfarm Employment, Millions 3.7 4.0 130.0 2.0
125.0 0.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year Figure 6: U.S. Nonfarm Employment
2021 ECONOMIC FORECAST 9 10 2021 ECONOMIC FORECAST The preceding discussion tells the story of 2021. Economic activity has stabilized and is working to withstand the most recent surge in virus activity. But the path from stable to full health is still ahead and will not be easily passed. Federal Reserve officials were quick to acknowledge this reality and move quickly not just to address the abrupt economic challenges of 2020 but pledge to hold an accommodative stance well into 2022. We expect monetary authorities to keep this promise and hold the federal funds rate near zero through the forecast horizon. Core inflation, as measured by the personal consumption expenditures price index, is expected to hold right at the Fed’s target of 2%. The Federal Reserve has also signaled a willingness not just to treat the downside and upside of this target symmetrically, but also to allow inflation to run a bit above target, if necessary, to achieve a 2% average over time. It remains to be seen how committed monetary policymakers are to this strategy and how tolerant markets will be of it. Treasury yields remain low keeping mortgage rates and other related interest charges low by historical standards.
U.S. Inflation and Interest Rate 3.5
3.0
2.5 2.2 2.0 2.0 2.0 2.0 1.8 1.8 1.8 1.7 1.6 1.6 1.6 1.5 1.5 1.2 1.0 1.0
0.5 0.4 0.4 0.1 0.1 0.1 0.1 0.1 0.1 0.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Core PCE Price Index Federal Funds Rate 10-Year Treasury Yield Figure 7: U.S. Inflation and Interest Rate
2021 ECONOMIC FORECAST 11 As 2019 turned to 2020, Oklahoma teetered on the brink THE OKLAHOMA of recession. Employment growth had nearly disappeared with ECONOMIC OUTLOOK gains in the services sector offset by losses in the goods-producing sectors of mining, construction Measured against the same month a year ago, the Oklahoma economy and manufacturing. The economic typically adds 25,000 to 30,000 jobs during periods of growth (see January road ahead was cluttered 2018 to January 2019 period below). Early in 2019 year-over-year growth in with downside risks leaving nonfarm employment slowed considerably. As 2019 yielded to 2020 nonfarm Oklahomans to hope that a strong employment was essentially unchanged from a year ago. Employment in the U.S. economy would carry us services sector, led by leisure, hospitality and business services, held to growth through the year. The prospects of through the year. Employment in the goods-producing sectors, by contrast, was U.S. economic strength seemed in decline by summer. It is worth emphasizing again that the sectors holding strained at best before the arrival up state economic activity at the end of 2019 were some of the sectors to be of the coronavirus pandemic hardest hit in the pandemic of 2020. caused U.S. economic systems of exchange to seize up.
Figure 8: Oklahoma Employment Pre-Pandemic
12 2021 ECONOMIC FORECAST Real GDP MIN GDP Pers. Income 2016:Q1 190802.8 43283.9 164646.5 2016:Q2 188546.8 37686.2 164070.9 2016:Q3 186918 36436.6 164195.9 2016:Q4 185985.5 -2.5% 34512.7 -20.3% 164940.1 0.2% 2017:Q1 186772.3 -0.9% 37094.9 -1.6% 168475.5 2.7% 2017:Q2 188666.6 0.9% 37695.5 3.5% 171517.3 4.5% 2017:Q3 188395.4 1.3% 36362 5.4% 173310.2 5.1% 2017:Q4 188794.5 1.1% 36562 -1.4% 175375.2 4.1% 2018:Q1 191198.7 1.3% 37915.7 0.6% 177767.3 3.6% 2018:Q2 192463.5 2.2% 38637.4 6.3% 179470.2 3.6% 2018:Q3 193257.7 2.4% 38726.4 5.9% 181604 3.6% 2018:Q4 195899.1 2.5% 40775.4 7.5% 183693 3.3% 2019:Q1 198134.5 2.9% 42343.1 9.6% 186866.4 4.1% 2019:Q2 197739.2 2.3% 42602.1 10.0% 186543.7 2.7% Just as employment growth had stalled by the end of 2019, so too had Oklahoma’s gross state product. Oklahoma’s real 2019:Q3 198518.9 1.3% 41774.9 2.5% 187709.4 2.2% GDP was down2019:Q4 0.5% measured 197208.9against the fourth quarter-0.5% of 2019 while39150.4 personal income-7.5% was up just188190.4 0.7%. By mid-0.7% March 2020, the2020:Q1 state had identified 193501.4 the first of many-2.1% positive coronavirus36341.4 cases to come-14.7% and the governor189373.6 issued 1.5%the first emergency2020:Q2 declaration. While 176264.4 pandemic anxiety-11.2% certainly contributed31532.5 to economic-24.5% weakness in 208784.4the first quarter11.2% of 2020, it was hardly2020:Q3 the leading factor. 186075.7 Instead, internal-5.6% weakness drove30257.7 real GDP down-22.7% 2.1%. Oklahoma195168.1 was in a mild3.7% recession, as predicted, before the full economic and social disruptive force of the pandemic came to bear.
Oklahoma GDP and Personal Income 6.0% 5.1% 5.0% 4.5% 4.1% 4.1% 4.0% 3.6% 3.6% 3.6% 3.3% 2.9% 2.7% 2.7% 3.0% 2.5% 2.2% 2.4% 2.3% 2.2% 2.0% 1.5% 1.3% 1.3% 1.3% 0.9% 1.1% 1.0% 0.7% 0.2% 0.0%
Q4/Q4 Percent Change -1.0% -0.5% -0.9% -2.0% -2.1% -3.0% -2.5%
Real GDP Personal Income
Figure 9: Oklahoma GDP and Personal Income
2021 ECONOMIC FORECAST 13 Looking ahead to 2021 and 2022 is complicated by the uncertainty of our true current state of economic health. Beneath the pandemic anxiety, changed behaviors and federal relief policy lies an ill-defined economic base that will only be revealed as the layers above recede. In that sense, 2021 will be a revelatory year. By year’s end, we should know better our true economic condition and the forces that will shape 2022. The forecasts and discussions that follow reflect what is currently known in the tumultuous data rather than what is speculated about future policy. As the policies of the new administration and vaccination schedules unfold, the reader is encouraged to adjust their expectations accordingly. The year ahead will be characterized by a slow exit from the pandemic economic reality. In many ways, a slow and smooth exit is a best-case scenario. Such an uneventful exit would imply an efficient and effective vaccine distribution that sharply slows the spread and mortality rates of the virus with consumers again (perhaps not until later in 2021) gathering for social consumption. The Oklahoma economy will post GDP growth in the second quarter of 2021 when compared to the very distressed second quarter of 2020. Economic growth will remain slow through the end of the year with economic activity likely not returning to the end of 2019 levels until 2022. Economic growth accelerates in 2022 with annual GDP and personal income growth near 5%. Oklahoma Real GDP and Personal Income Oklahoma Population and Per Capita Income $210,000 15.0% 4,060,000 $48,000
4,035,603 4,040,000 $46,574 $47,000 $190,000 10.0% $45,573 $46,000 4,020,000 4,011,729 5.6% 6.0% $45,131 4.8% 5.0% $44,703 $170,000 5.0% $44,400 $45,000 4,000,000 $43,742 $44,000 10.6% 4.5% 5.1% 5.3% 4.8% 3,980,000 $43,149 $150,000 0.0% Population $42,818 $42,774$42,656$42,789 $43,000 $42,253
Q4/Q4 Growth 3,960,000 $130,000 -5.0% $42,000 Income Personal Capita Per
Real GDP and Income Mil) ($ Income and GDP Real 3,940,000 $41,000 $110,000 -10.0% 3,920,000 $40,000 -10.9%
$90,000 -15.0% 2020:Q1 2020:Q2 2020:Q3 2020:Q4 2021:Q1 2021:Q2 2021:Q3 2021:Q4 2022:Q1 2022:Q2 2022:Q3 2022:Q4
Figure 10: OklahomaQ4/Q4 Real Growth GDP and Q4/Q4Personal Growth Income Real GDP ($ Mil) Real Personal Income ($ Mil) Real Per Capita Personal Income Population
14 2021 ECONOMIC FORECAST Population growth rates in Oklahoma had hovered near 0.75% per year until the energy contraction of 2015-2016. Population growth fell by half as the state’s economy moved into recession. This experience has called into question the balance of forces in supporting population growth. We remain optimistic that the pull of the I-35 corridor is a long-run force for population growth that will ebb and flow around economic cycles. This implies that much of the population gains will be concentrated in the Oklahoma City MSA and surrounding areas changing the geographic and demographic spread of the state’s population. State population growth is expected to see a small bounce in 2021 before settling in at a long-run trend of 0.65% in 2022 with the statewide population exceeding four million persons. Real (adjusted for inflation) per capita income spiked to $46,574 in the second quarter of 2020 as federal policy pumped personal transfer receipts into households. As the policy withdraws, per capita personal income will retreat before finding growth again in 2022 and reaching $45,000 per person by the end of the forecast period. Note that the forecast does not explicitly assume a second spike in transfer receipts even though the incoming Biden administration is prioritizing another round of trillion-dollar support. If the administration is successful in escorting through this legislation, we could see another and similar spike in personal and per capita income. Oklahoma Real GDP and Personal Income Oklahoma Population and Per Capita Income $210,000 15.0% 4,060,000 $48,000
4,035,603 4,040,000 $46,574 $47,000 $190,000 10.0% $45,573 $46,000 4,020,000 4,011,729 5.6% 6.0% $45,131 4.8% 5.0% $44,703 $170,000 5.0% $44,400 $45,000 4,000,000 $43,742 $44,000 10.6% 4.5% 5.1% 5.3% 4.8% 3,980,000 $43,149 $150,000 0.0% Population $42,818 $42,774$42,656$42,789 $43,000 $42,253
Q4/Q4 Growth 3,960,000 $130,000 -5.0% $42,000 Income Personal Capita Per
Real GDP and Income Mil) ($ Income and GDP Real 3,940,000 $41,000 $110,000 -10.0% 3,920,000 $40,000 -10.9%
$90,000 -15.0% 2020:Q1 2020:Q2 2020:Q3 2020:Q4 2021:Q1 2021:Q2 2021:Q3 2021:Q4 2022:Q1 2022:Q2 2022:Q3 2022:Q4 Figure 11: Oklahoma Population and Per Capita Income Q4/Q4 Growth Q4/Q4 Growth Real GDP ($ Mil) Real Personal Income ($ Mil) Real Per Capita Personal Income Population
2021 ECONOMIC FORECAST 15 Oklahoma nonfarm employment fell sharply in 2020— a combination of a local energy contraction and a global viral pandemic. This particular recession has impacted and is impacting lower-income workers in hourly and service-providing industries. Employment losses have been the most pronounced in industries that rely on some level of social nearness in consumption: arts, theatres, restaurants, leisure travel, conferences/events, etc. With a move towards remote work, many on-location administrative and support staff have been impacted similarly. A return to pre-pandemic employment levels necessarily requires a return of these jobs which in turn requires a return to social consumption in these industries. The path back would appear to be slow with some behaviors lingering longer than others. Average monthly nonfarm payrolls will be up only 0.7% in 2021 before returning to a more impressive growth of 2.3% in 2022. Note, however, that at these growth rates, nonfarm employment does not return to pre-pandemic levels until late 2022.
Oklahoma Nonfarm and Private Employment Oklahoma Goods and Services Employment Growth 1,800 8.0% 0.08 1,680.4 6.6% 5.7% 0.06 1,600 6.0% 4.8% 5.0%
0.04 1,400 4.0% 2.2% 1.9% 1.8% 1.6% 1.4% 1.3% 1.5% 2.3% 0.02 1.1% 1.2% 1.0% 1.0% 1,200 0.4% 0.3% 0.4% 2.0% 0.1% 0 0.7% 1,000 0.0% -0.02 800 -2.8% -0.04 -3.0% -2.0% -3.7% 600
Employment, Thousands Employment, -0.06 %Change, Annual Average -4.0% Average Annual % Change, 400 -6.8% -0.08
-6.0% 200 -0.1 -10.5% 0 -8.0% -0.12 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Avg. % Change, Annual Avg. Nonfarm Private Goods Sectors Services Sector
Figure 12: Oklahoma Nonfarm and Private Employment
16 2021 ECONOMIC FORECAST The goods sector is comprised of mining, construction and manufacturing operations. Other industries, including the public sector (federal, state and local governments) make up the services sector. In Oklahoma, the services sector represents about 85% of nonfarm employment with the goods sector accounting for the other 15%. But the goods sector tends to drive economic cycles in the state with oil and gas booms and busts spilling over into other industries. The graph below illustrates the volatility and spillover of the goods sector. Strong growth in 2011 and 2012 supported service-providing industries and they sustained growth even through a modest slowing in 2013 and 2014. But when the goods sectors contracted in the 2015-2016 downturn, growth in the services sector collapsed in response as the state’s economy struggled. The current oil and gas contraction paired with pandemic health policies and changes in economic behavior pulled both sectors down in 2020. The services sector will lead the modest recovery in the upcoming year with the goods sector still down in 2021 compared to a year ago. This is not meant to imply that the goods sector will lose jobs throughout the year. Instead, the sector will gain jobs so slowly as to leave the average size of payrolls lower in 2021 than in 2020. Growth resumes in 2022 with statewide employment slowly moving back to its pre-pandemic level.
Oklahoma Nonfarm and Private Employment Oklahoma Goods and Services Employment Growth 1,800 8.0% 0.08 1,680.4 6.6% 5.7% 0.06 1,600 6.0% 4.8% 5.0%
0.04 1,400 4.0% 2.2% 1.9% 1.8% 1.6% 1.4% 1.3% 1.5% 2.3% 0.02 1.1% 1.2% 1.0% 1.0% 1,200 0.4% 0.3% 0.4% 2.0% 0.1% 0 0.7% 1,000 0.0% -0.02 800 -2.8% -0.04 -3.0% -2.0% -3.7% 600
Employment, Thousands Employment, -0.06 %Change, Annual Average -4.0% Average Annual % Change, 400 -6.8% -0.08
-6.0% 200 -0.1 -10.5% 0 -8.0% -0.12 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Avg. % Change, Annual Avg. Nonfarm Private Goods Sectors Services Sector
Figure 13: Oklahoma Goods and Services Employment Growth
2021 ECONOMIC FORECAST 17 Oklahoma City’s economic future THE OKLAHOMA CITY will not be too dissimilar from the path laid out for the state. The year ahead offers hope of an exit ECONOMIC OUTLOOK from our pandemic economic reality and a bottom to the current energy cycle. Both should help The policies that pumped transfer receipts into Oklahoma City households to provide important, if modest, generate the rather unusual relationship between MSA GDP and personal support to the economy in 2021. income below. The two are generally positively correlated, moving in the More importantly, both should set same direction during both good and bad economic realities. In 2020 and the stage for a return to growth in 2021, however, the correlation reverses. Metro GDP falls by 6.8% even 2022 as the MSA returns to and as personal income grows by 3.8%. The effects will unwind in 2021 with grows on from pre-pandemic levels MSA GDP growing at 1.8% and personal income dropping by 2.7%. If all of economic activity. goes as planned in 2021, correlations should be righted by 2022 with both personal income and GDP returning to growth and recovering their pre- pandemic levels.
Oklahoma City MSA Income and GDP Oklahoma City MSA Per Capita Personal Income 90,000,000 52000 $50,364 $50,393 0.1 80,000,000 50000 $48,860 $48,567 70,000,000 5.4% $47,607 4.9% 48000 60,000,000 3.8% 0.05 $46,034 46000 $45,323 1.8% $44,924 50,000,000 $44,458 44000 0 $42,900 40,000,000 $42,418
30,000,000 42000 Annual Growth Growth Annual Percent
-2.7% $ Income, Personal Per Capita
Income and GDP, $ Thousands $ GDP, and Income 20,000,000 -0.05 40000
10,000,000 -6.8% 38000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 0 -0.1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PI Growth RGDP Growth Personal Income ($ Thou) Real Metro GDP ($ Thou) Figure 14: Oklahoma City MSA Income and GDP
Oklahoma City MSA Population 1500000 0.04
1,447,329 1450000 1,418,813 0.03 1,431,582 1400000 0.02
1350000 1.1% 0.9% 0.7% 0.01 1300000 18 2021 ECONOMIC FORECAST Annual Growth MSA Population 0 1250000
-0.01 1200000
1150000 -0.02 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Annual Growth Population Oklahoma City MSA Income and GDP Oklahoma City MSA IncomOek lahnodm Ga CDiPty MSA Per Capita Personal Income Oklahoma City MSA Per Capita Personal Income 52000 90,000,000 90,000,000 52000 $50,364 $50,393 $50,364 $50,393 0.1 0.1 80,000,000 80,000,000 50000 $48,860 50000 $48,567 $48,860 $48,567 70,000,000 5.4% 70,000,000 48000 $47,6075.4% $47,607 4.9% 4.9% 48000 3.8% 0.05 60,000,000 60,000,000 3.8% $46,034 0.05 $46,034 46000 $45,323 $44,924 46000 $45,323 1.8% 1.8% $44,924 50,000,000 50,000,000 $44,458 $44,458 44000 44000 40,000,000 0 $42,900 0 $42,900 40,000,000 $42,418 $42,418 42000 30,000,000 30,000,000 42000 Annual Growth Growth Annual Percent Per Capita Personal Income, $ Income, Personal Per Capita -2.7% Growth Annual Percent
-2.7% $ Income, Personal Per Capita
Income and GDP, $ Thousands $ GDP, and Income 20,000,000 -0.05 40000
Income and GDP, $ Thousands $ GDP, and Income 20,000,000 -0.05 40000
10,000,000 -6.8% 10,000,000 38000 -6.8% 38000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 0 -0.1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 0 Figure 15: Oklahoma City Per Capita Personal Income -0.1 2012 2013 2014 2015 2016 2017 2018 2019 2020 20212012 2022 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PI Growth RGDP Growth Personal Income ($ Thou) Real Metro GDP ($ Thou)PI Growth RGDP GrowthAfter spiking, in 2020Personal per Income capita ($ personal Thou) incomeReal will Metroretreat GDP in 2021 ($ Thou) to 2019 levels in the absence of another round of trillion-dollar transfers. Organic income growth from increasing production returns later in 2021 and into 2022 as per capita income in the MSA tops $50,000. Oklahoma City’s population growth slowed sharply (see below) from 2016 through 2018. Population growth returns to a solid 0.9% and 1.1% in 2021 and 2022, respectively.
Oklahoma City MSA Population Oklahoma City MSA Population 1500000 1500000 0.04 0.04
1,447,329 1,447,329 1450000 1450000 0.03 1,418,813 1,418,813 0.03 1,431,582 1,431,582 1400000 1400000 0.02 0.02 1350000 1.1% 0.9% 1350000 1.1% 0.01 0.9% 0.7% 0.7% 0.01 1300000 1300000 Annual Growth MSA Population Annual Growth MSA Population 0 0 1250000 1250000
-0.01 -0.01 1200000 1200000
1150000 1150000 -0.02 -0.02 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Annual Growth Population Annual Growth Population Figure 16: Oklahoma City MSA Population
2021 ECONOMIC FORECAST 19 Oklahoma City nonfarm employment fell by 3% in 2020 representing average nonfarm payroll jobs for the year that were 20,000 fewer than 2019. Employment losses were led by the oil and gas industry with manufacturing jobs lost as oil and gas weakness spilled into complementary industries. The pandemic then stressed services sectors such as administrative and support business services and leisure and hospitality, both of which had provided key areas of employment strength in previous years. Importantly, payroll jobs will be quicker to recover in Oklahoma City than in the state as a whole. Nonfarm employment will grow by 3.2% in 2021 and return to pre-pandemic levels by the end of the year. Growth moderates to something closer to trend in 2022 with average nonfarm payrolls increasing by 1.5% to 670,000 metro area jobs. Oklahoma City MSA Nonfarm Employment Oklahoma City MSA Goods Sector Employment 680 $670.0 0.07 93 0.2 $659.1 $659.9 88 85.5 660 0.05 0.15 3.2% 83 80.2 640 0.1 0.03 76.5 1.5% $639.4 1.5% 78 4.8% 620 0.05 77.5 0.01 73 600 0 68 -0.2% -0.01 -1.2% 580 -0.05 63 -0.03 -0.1 560 -3.0% 58 % Change, Annual Average Annual % Change,
% Change, Annual Average Annual % Change, -9.4% Goods Employment, Thousands
Nonfarm Employment, Thousands Employment, Nonfarm -0.05 540 53 -0.15
520 -0.07 48 -0.2 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Nonfarm % Change, Annual Average Goods Figure 17: Oklahoma City MSA Nonfarm Employment
Oklahoma City MSA Services Sector Employment Oklahoma City MSA Oil and Gas Employment 648 0.1 0.5 0.08 19.3 587.1 20 598 573.6 578.4 0.06 0.4 3.0% 0.04 548 1.7% 561.6 1.5% 15.1 0.3 0.02 15 498 0 12.9 17.5% 0.2
-0.02 13.4 448 -2.1% 0.1 -0.04 10
-0.06 Average Annual % Change, 0 398 Goods Employment, Thousands -0.08 -3.7% -0.1
348 -0.1 -10.7% Average Annual % Change, 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Thousands Mining Employment, 5 20 2021 ECONOMIC FORECAST -0.2 % Change, Annual Average Services -0.3 -30.7% 0 -0.4 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Mining (Oil and Gas)
Oklahoma City MSA Manufacturing Employment Oklahoma City MSA Financial Services Employment
39 36 35.6 0.07 35.4
37 0.09 0.06 35
35 34.2 0.05 33.9 32.8 34 33 34.1 3.8% 32.0 0.04 0.04 2.5% 33 31 32.1 0.03 0.8%
29 32 1.5% 0.02 -0.3% -0.01 27 0.7% 0.01 31 0.5% % Annual Change,
25 0 % Change, Annual Average Annual % Change, 30 -0.06
Manufacturing Employment, Thousands Employment, Manufacturing 23 -6.0% -0.01 Financial Services Financial Services Thousands Employment, 29 21 -0.02
19 -0.11 28 -0.03 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Manufacturing % Change, Annual Average Financial Services
Oklahoma City MSA Leisure Services Employment
80 76.0 0.15 74.5 74.0
70
68.1 0.1 0.09 60
50 0.05 0.03 40 0.01
0 30 % Change, Annual Average Annual % Change, 20 -0.05 Leisure Services Employment, Thousands Employment, Services Leisure
10
-0.09 0 -0.1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Leisure Services Oklahoma City MSA Nonfarm Employment Oklahoma City MSA Goods Sector Employment 680 $670.0 0.07 93 0.2 $659.1 $659.9 88 85.5 660 0.05 0.15 3.2% 83 Oklahoma City MSA Nonfarm Employment 80.2 Oklahoma City MSA Goods Sector Employment 640 0.1 0.03 680 76.5 $670.0 0.07 93 0.2 1.5% $639.4 1.5% 78 4.8% 620 $659.1 $659.9 0.05 0.01 77.5 88 85.5 73660 0.05 0.15 600 0 3.2% 83 80.2 -0.01 68640 -0.2% 0.1 -1.2% 0.03 580 -0.05 76.5 1.5% $639.4 1.5% 78 4.8% 63620 0.05 -0.03 -0.10.01 77.5 560 -3.0% 58 73 % Change, Annual Average Annual % Change,
% Change, Annual Average Annual % Change, -9.4% 600 0 Goods Employment, Thousands
Nonfarm Employment, Thousands Employment, Nonfarm -0.05 68 -0.2% 540 53 -0.15-0.01 -1.2% 580 -0.05 63 520 -0.07 48 -0.2 -0.03 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 -0.1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 560 -3.0% 58 % Change, Annual Average Annual % Change,
% Change, Annual Average Annual % Change, -9.4%
% Change, Annual Average Goods Goods Employment, Thousands % Change, Annual Average Nonfarm Thousands Employment, Nonfarm -0.05 540 53 -0.15 Figure 18: Oklahoma City MSA Goods Sector Employment 520 -0.07 48 -0.2 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 The graph above illustrates the employment cycles that characterize the goods sector with growth followed by contraction. Recently, however, each successive% Change, period Annual of growth Average is insufficientNonfarm to return employment to its previous peak. % Change, Annual Average Goods Both the manufacturing and mining sectors are moving away from labor-intensive production and each contraction brings Oklahoma City MSA Services Sector Employment new production efficienciesO thatkla limitho memploymenta City MgainsSA in O thei lrecovery. and G Theas servicesEmpl osector,yme inn tcontrast, has generally traced out consistent gains of 1.5% to 2% per year. Service industries will return to pre-pandemic levels in 2021 before 648 0.1 posting solid gains again in 2022. 0.5 0.08 19.3 587.1 20 598 573.6 578.4 0.06 Oklahoma City MSA Services Sector Employment 0.4 Oklahoma City MSA Oil and Gas Employment 3.0% 0.04 548 648 0.1 1.7% 561.6 1.5% 15.1 0.3 0.02 0.5 0.08 19.3 15 587.1 20 498 0 598 573.6 578.412.9 17.5% 0.2 0.06 0.4 -0.02 13.4 3.0% 0.04 448 -2.1% 548 0.1 -0.04 1.7% 561.6 1.5% 15.1 0.3 0.02 10 15
-0.06 Average Annual % Change, 0 398 498 0 12.9 17.5% 0.2 Goods Employment, Thousands -0.08 -3.7% -0.02-0.1 13.4 0.1 348 -0.1 448 -2.1% Average Annual % Change, -10.7% -0.04 Mining Employment, Thousands Mining Employment, 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 5 -0.2 10
-0.06 Average Annual % Change, 0 398
% Change, Annual Average Services Goods Employment, Thousands -0.08-0.3 -3.7% -0.1 -30.7% 348 -0.1 -10.7% Average Annual % Change,
0 -0.4 Thousands Mining Employment, 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 5 -0.2 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 % Change, Annual Average Services % Change, Annual Average Mining (Oil and Gas) -0.3 Figure 19: Oklahoma City MSA Services Sector Employment -30.7% 2021 ECONOMIC FORECAST 21 0 -0.4 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Oklahoma City MSA Manufacturing Employment Oklahoma City MSA Financial Services Employment % Change, Annual Average Mining (Oil and Gas)
39 36 35.6 0.07 35.4
37 0.09 0.06 35 Oklahoma City MSA Manufacturing Employment Oklahoma City MSA Financial Services Employment 35 34.2 0.05 39 33.9 36 35.6 0.07 32.8 34 35.4 34.1 3.8% 33 32.0 0.04 0.04 37 0.09 0.06 2.5% 35 33 31 32.1 0.03 35 34.2 0.05 0.8% 33.9 32.8 34 29 32 0.02 34.1 3.8% 33 1.5% 32.0 0.04 -0.01 0.04 -0.3% 2.5% 27 0.7% 0.01 33 31 32.1 0.5% 0.03 % Annual Change, 0.8% 25 0 29 Average Annual % Change, 32 0.02 30 1.5% -0.06 -0.3% -0.01
Manufacturing Employment, Thousands Employment, Manufacturing 23 -6.0% -0.01 0.7%
Financial Services Financial Services Thousands Employment, 27 0.01 31 0.5% 29 % Annual Change, 21 -0.02 25 0 % Change, Annual Average Annual % Change, 30 19 -0.11 28 -0.03-0.06 Manufacturing Employment, Thousands Employment, Manufacturing 23 -6.0% -0.01
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Financial Services Thousands Employment, 29 % Change, Annual Average Manufacturing 21 % Change, Annual Average Financial Services -0.02
19 -0.11 28 -0.03 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Oklahoma City MSA Leisure Services Employment % Change, Annual Average Manufacturing % Change, Annual Average Financial Services
80 76.0 0.15 74.5 74.0
70 Oklahoma City MSA Leisure Services Employment 68.1 0.1 0.09 80 76.0 0.15 60 74.5 74.0
70 50 0.05 68.1 0.1 0.09 0.03 60 40 0.01
0 50 30 0.05 0.03
% Change, Annual Average Annual % Change, 40 20 0.01 -0.05 Leisure Services Employment, Thousands Employment, Services Leisure 0 30 10 % Change, Annual Average Annual % Change, -0.09 20 0 -0.1 -0.05 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Thousands Employment, Services Leisure 10 % Change, Annual Average Leisure Services
-0.09 0 -0.1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Leisure Services Oklahoma’s oil and gas industry turned to contraction long before pandemic forces drove the U.S. economy into recession. The disproportionate contraction of Oklahoma’s oil and gas industry in this energy cycle poses concerns that Production Index go beyond the short-term outlook. The pace of crude oil production in Oklahoma far outpaced that of total U.S. crude Date OK US OK US production over the last decade. More recently, however, Oklahoma oil production leveled off and turned to contraction Jan-00 189 5784 100 100 before the pandemic caused the same to happen to U.S. production. In the contraction, Oklahoma production fell more Feb-00 207 5852 109.5238 101.1757 sharply than total U.S. production. Mar-00 197 5918 104.2328 102.3167 Crude Oil Production Apr-00 195 5854 103.1746 101.2102 May-00 193 5847 102.1164 101.0892 350 Jun-00 191 5823 101.0582 100.6743 300 Jul-00 189 5739 100 99.22199 Aug-00 184 5789 97.3545 100.0864 250 Sep-00 201 5758 106.3492 99.55048 Oct-00 180 5809 95.2381 100.4322 200 Nov-00 187 5833 98.9418 100.8472 150 Dec-00 183 5855 96.8254 101.2275 Jan-01 186 5799 98.4127 100.2593 100 Feb-01 190 5780 100.5291 99.93084 Mar-01 201 5880 106.3492 101.6598 50 Apr-01 198 5863 104.7619 101.3658 0 May-01 190 5829 100.5291 100.778 Jun-01 194 5766 102.6455 99.6888
Jul-01 182 5749 96.2963 99.39488 Production,BPD Thousand2000 = (January 100) Aug-01 179 5725 94.70899 98.97994 OK US Figure 20: Crude Oil Production (OK and US) Sep-01 183 5709 96.8254 98.70332 Oct-01 186 5746 98.4127State 99.34302 Jan-19The fall Jan-20 in productionOct-20 is directly reflected in the collapse in rig activity in Oklahoma compared to surrounding energy Nov-01 183 5881 96.8254New Mexico 101.677 108states. In 106January 2019, 45 long -0.01852before the pandemic -0.57547 moved the global economy into recession, rig activity was already Dec-01 182 5887 96.2963Colorado 101.7808 35slowing in 21Oklahoma. Oklahoma4 -0.4averaged -0.80952 132 active rigs each week in January 2019 compared to 108 active rigs in New Mexico and 54 in North Dakota. A year later in January 2020, New Mexico still averaged 106 active rigs and Jan-02 186 5873 98.4127Wyoming 101.5387 33 24 2 -0.27273 -0.91667 North Dakota 51. In contrast, Oklahoma’s active rigs fell to 52 from 132 the year before. As 2020 settled into a global Feb-02 179 5881 94.70899North Dakota101.677 54 51 11 -0.05556 -0.78431 Mar-02 185 5886 97.8836 101.7635 recession, rig activity fell sharply in New Mexico and North Dakota. Rig activity fell again in Oklahoma. By the fall of Oklahoma 1322020, Oklahoma 52 was 13home -0.60606 to only 13 active -0.75 rigs. The fall in production and change in rig activity, coupled with the Apr-02 190 5844 100.5291 101.0373 posture of capital markets underscores the unfortunate reality that Oklahoma’s geology may not compare as favorably as May-02 188 5905 99.4709 102.092 once thought against the alternative options for scarce drilling capital. Jun-02 184 5884 97.3545 101.7289 Jul-02 182 5751 96.2963 99.42946 Baker Hughes Active Rig Count Aug-02 181 5796 95.7672 100.2075 Sep-02 179 5411 94.70899 93.55118 140 132 Oct-02 177 5358 93.65079 92.63485 120 108 106 Nov-02 183 5624 96.8254 97.23375 100 Dec-02 170 5722 89.94709 98.92808 Jan-03 188 5755 99.4709 99.49862 80 Feb-03 171 5783 90.47619 99.98271 54 51 52 60 45 Mar-03 186 5803 98.4127 100.3285 35 40 33 Apr-03 187 5726 98.9418 98.99723 21 24 May-03 179 5663 94.70899 97.90802 20 11 13 4 2 Jun-03 178 5659 94.17989 97.83887 Average Monthly Rigs, Active 0 Jul-03 177 5498 93.65079 95.05533 New Mexico Colorado Wyoming North Dakota Oklahoma Aug-03 172 5574 91.00529 96.36929 Jan-19 Jan-20 Oct-20 Sep-03 174 5609 92.06349 96.97441 Oct-03 174 5614 92.06349 97.06086 Figure 21: Baker Hughes Active Rig Count 22 2021 ECONOMIC FORECAST Nov-03 168 5547 88.88889 95.90249 Dec-03 177 5571 93.65079 96.31743 Jan-04 174 5585 92.06349 96.55947 Feb-04 173 5572 91.53439 96.33472 Mar-04 180 5617 95.2381 97.11272 Apr-04 177 5560 93.65079 96.12725 May-04 180 5556 95.2381 96.05809 Jun-04 166 5407 87.83069 93.48202 Jul-04 175 5484 92.59259 94.81328 Aug-04 177 5325 93.65079 92.06432 Sep-04 176 5081 93.12169 87.84578 Oct-04 174 5170 92.06349 89.38451 Nov-04 165 5423 87.30159 93.75864 Dec-04 179 5510 94.70899 95.26279 Jan-05 164 5446 86.77249 94.15629 Feb-05 173 5501 91.53439 95.10719 Mar-05 179 5601 94.70899 96.8361 Apr-05 176 5563 93.12169 96.17911 May-05 172 5596 91.00529 96.74965 Jun-05 145 5442 76.71958 94.08714 Jul-05 173 5253 91.53439 90.8195 Aug-05 142 5198 75.13228 89.8686 Sep-05 175 4214 92.59259 72.85615 Oct-05 173 4555 91.53439 78.75173 Nov-05 174 4857 92.06349 83.97303 Dec-05 168 4988 88.88889 86.2379 Jan-06 175 5048 92.59259 87.27524 Feb-06 169 5032 89.41799 86.99862 Mar-06 179 5027 94.70899 86.91217 Apr-06 174 5082 92.06349 87.86307 May-06 177 5151 93.65079 89.05602 Jun-06 178 5163 94.17989 89.26349 Jul-06 178 5094 94.17989 88.07054 Aug-06 175 5040 92.59259 87.13693 Sep-06 177 5031 93.65079 86.98133 Oct-06 175 5108 92.59259 88.31259 Nov-06 171 5064 90.47619 87.55187 Dec-06 181 5186 95.7672 89.66113 Jan-07 159 5108 84.12698 88.31259 Feb-07 172 5118 91.00529 88.48548 Mar-07 178 5119 94.17989 88.50277 Apr-07 179 5180 94.70899 89.5574 May-07 179 5211 94.70899 90.09336 Jun-07 172 5075 91.00529 87.74205 Jul-07 176 5038 93.12169 87.10235 Aug-07 173 4970 91.53439 85.92669 Sep-07 185 4902 97.8836 84.75104 Oct-07 146 5022 77.24868 86.82573 Nov-07 178 5034 94.17989 87.0332 Dec-07 171 5111 90.47619 88.36445 Jan-08 188 5115 99.4709 88.43361 Feb-08 165 5148 87.30159 89.00415 Mar-08 189 5189 100 89.713 Apr-08 191 5180 101.0582 89.5574 May-08 188 5143 99.4709 88.9177 Jun-08 186 5138 98.4127 88.83126 Jul-08 184 5177 97.3545 89.50553 Aug-08 188 5003 99.4709 86.49723 Sep-08 186 3974 98.4127 68.70678 Oct-08 185 4738 97.8836 81.91563 Nov-08 181 5078 95.7672 87.79391 Dec-08 176 5103 93.12169 88.22614 Jan-09 176 5144 93.12169 88.93499 Feb-09 194 5239 102.6455 90.57746 Mar-09 183 5219 96.8254 90.23167 Apr-09 186 5278 98.4127 91.25173 May-09 189 5377 100 92.96335 Jun-09 192 5269 101.5873 91.09613 Jul-09 183 5398 96.8254 93.32642 Aug-09 183 5418 96.8254 93.6722 Sep-09 186 5559 98.4127 96.10996 Oct-09 182 5524 96.2963 95.50484 Nov-09 183 5395 96.8254 93.27455 Dec-09 173 5452 91.53439 94.26003 Jan-10 167 5404 88.35979 93.43015 Feb-10 187 5553 98.9418 96.00622 Mar-10 193 5515 102.1164 95.34924 Apr-10 194 5392 102.6455 93.22268 May-10 187 5401 98.9418 93.37828 Jun-10 189 5380 100 93.01521 Jul-10 191 5298 101.0582 91.59751 Aug-10 191 5447 101.0582 94.17358 Sep-10 193 5616 102.1164 97.09544 Oct-10 197 5631 104.2328 97.35477 Nov-10 211 5576 111.6402 96.40387 Dec-10 208 5607 110.0529 96.93983 Jan-11 203 5495 107.4074 95.00346 Feb-11 179 5404 94.70899 93.43015 Mar-11 223 5615 117.9894 97.07815 Apr-11 217 5558 114.8148 96.09267 May-11 222 5623 117.4603 97.21646 Jun-11 226 5588 119.5767 96.61134 Jul-11 224 5440 118.5185 94.05256 Aug-11 225 5665 119.0476 97.9426 Sep-11 234 5614 123.8095 97.06086 Oct-11 238 5901 125.9259 102.0228 Nov-11 245 6035 129.6296 104.3396 Dec-11 244 6048 129.1005 104.5643 Jan-12 254 6171 134.3915 106.6909 Feb-12 255 6267 134.9206 108.3506 Mar-12 255 6326 134.9206 109.3707 Apr-12 262 6324 138.6243 109.3361 May-12 270 6368 142.8571 110.0968 Jun-12 260 6269 137.5661 108.3852 Jul-12 273 6424 144.4444 111.065 Aug-12 287 6349 151.8519 109.7683 Sep-12 283 6596 149.7354 114.0387 Oct-12 302 6966 159.7884 120.4357 Nov-12 302 7077 159.7884 122.3548 Dec-12 296 7099 156.6138 122.7351 Jan-13 317 7083 167.7249 122.4585 Feb-13 285 7151 150.7937 123.6342 Mar-13 316 7206 167.1958 124.5851 Apr-13 337 7372 178.3069 127.455 May-13 337 7326 178.3069 126.6598 Jun-13 343 7277 181.4815 125.8126 Jul-13 337 7524 178.3069 130.083 Aug-13 361 7532 191.0053 130.2213 Sep-13 367 7837 194.1799 135.4945 Oct-13 372 7758 196.8254 134.1286 Nov-13 348 7917 184.127 136.8776 Dec-13 348 7928 184.127 137.0678 Jan-14 381 8073 201.5873 139.5747 Feb-14 369 8152 195.2381 140.9405 Mar-14 385 8293 203.7037 143.3783 Apr-14 348 8521 184.127 147.3202 May-14 407 8644 215.3439 149.4467 Jun-14 409 8746 216.4021 151.2102 Jul-14 428 8846 226.455 152.9391 Aug-14 414 8920 219.0476 154.2185 Sep-14 433 9082 229.1005 157.0194 Oct-14 447 9263 236.5079 160.1487 Nov-14 442 9322 233.8624 161.1687 Dec-14 451 9566 238.6243 165.3873 Jan-15 449 9388 237.5661 162.3098 Feb-15 436 9510 230.6878 164.4191 Mar-15 480 9585 253.9683 165.7158 Apr-15 477 9661 252.381 167.0297 May-15 463 9481 244.9735 163.9177 Jun-15 468 9362 247.619 161.8603 Jul-15 447 9447 236.5079 163.3299 Aug-15 443 9416 234.3915 162.7939 Sep-15 453 9491 239.6825 164.0906 Oct-15 456 9406 241.2698 162.621 Nov-15 442 9337 233.8624 161.4281 Dec-15 457 9281 241.7989 160.4599 Jan-16 455 9203 240.7407 159.1113 Feb-16 408 9065 215.873 156.7254 Mar-16 428 9089 226.455 157.1404 Apr-16 416 8871 220.1058 153.3714 May-16 433 8834 229.1005 152.7317 Jun-16 426 8671 225.3968 149.9136 Jul-16 414 8664 219.0476 149.7925 Aug-16 420 8686 222.2222 150.1729 Sep-16 415 8544 219.5767 147.7178 Oct-16 425 8841 224.8677 152.8527 Nov-16 430 8906 227.5132 153.9765 Dec-16 417 8846 220.6349 152.9391 Jan-17 408 8874 215.873 153.4232 Feb-17 427 9108 225.9259 157.4689 Mar-17 442 9192 233.8624 158.9212 Apr-17 431 9115 228.0423 157.5899 May-17 433 9208 229.1005 159.1978 Jun-17 454 9134 240.2116 157.9184 Jul-17 448 9266 237.037 160.2006 Aug-17 462 9264 244.4444 160.166 Sep-17 464 9534 245.5026 164.834 Oct-17 485 9668 256.6138 167.1508 Nov-17 504 10088 266.6667 174.4122 Dec-17 496 9993 262.4339 172.7697 Jan-18 526 9998 278.3069 172.8562 Feb-18 525 10261 277.7778 177.4032 Mar-18 551 10489 291.5344 181.3451 Apr-18 533 10496 282.0106 181.4661 May-18 531 10457 280.9524 180.7918 Jun-18 507 10605 268.254 183.3506 Jul-18 530 10903 280.4233 188.5028 Aug-18 575 11384 304.2328 196.8188 Sep-18 542 11463 286.7725 198.1846 Oct-18 566 11554 299.4709 199.758 Nov-18 574 11907 303.7037 205.861 Dec-18 598 12004 316.4021 207.538 Jan-19 578 11865 305.8201 205.1349 Feb-19 569 11679 301.0582 201.9191 Mar-19 583 11937 308.4656 206.3797 Apr-19 613 12135 324.3386 209.8029 May-19 607 12163 321.164 210.287 Jun-19 545 12088 288.3598 208.9903 Jul-19 560 11819 296.2963 204.3396 Aug-19 563 12425 297.8836 214.8167 Sep-19 604 12495 319.5767 216.027 Oct-19 601 12673 317.9894 219.1044 Nov-19 577 12860 305.291 222.3375 Dec-19 562 12802 297.3545 221.3347 Jan-20 530 12755 280.4233 220.5221 Feb-20 559 12746 295.7672 220.3665 Mar-20 549 12737 290.4762 220.2109 Apr-20 492 12010 260.3175 207.6418 May-20 359 10019 189.9471 173.2192 Jun-20 459 10442 242.8571 180.5325 Jul-20 478 10980 252.9101 189.834 Aug-20 460 10579 243.3862 182.9011 Oklahoma City MSA Nonfarm Employment Oklahoma City MSA Goods Sector Employment 680 $670.0 0.07 93 0.2 $659.1 $659.9 88 85.5 660 0.05 0.15 3.2% 83 80.2 640 0.1 0.03 76.5 1.5% $639.4 1.5% 78 4.8% 620 0.05 77.5 0.01 73 600 0 68 -0.2% -0.01 -1.2% 580 -0.05 63 -0.03 -0.1 560 -3.0% 58 % Change, Annual Average Annual % Change,
% Change, Annual Average Annual % Change, -9.4% Goods Employment, Thousands
Nonfarm Employment, Thousands Employment, Nonfarm -0.05 540 53 -0.15
520 -0.07 48 -0.2 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Nonfarm % Change, Annual Average Goods Oklahoma City oil and gas employment was hit hard in this cycle losing nearly 8,000 jobs and 30.7% of local exploration and production jobs. Current employment levels will hold mostly steady through the first half of 2021 before adding jobs at a slow pace through the end of the year. If the global economy can turn to growth and support a base of energy demand, then job gains return in 2022 but are unlikely to return to the previous industry peak.
Oklahoma City MSA Services Sector Employment Oklahoma City MSA Oil and Gas Employment 648 0.1 0.5 0.08 19.3 587.1 20 598 573.6 578.4 0.06 0.4 3.0% 0.04 548 1.7% 561.6 1.5% 15.1 0.3 0.02 15 498 0 12.9 17.5% 0.2
-0.02 13.4 448 -2.1% 0.1 -0.04 10
-0.06 Average Annual % Change, 0 398 Goods Employment, Thousands -0.08 -3.7% -0.1
348 -0.1 -10.7% Average Annual % Change, Mining Employment, Thousands Mining Employment, 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 5 -0.2 % Change, Annual Average Services -0.3 -30.7% 0 -0.4 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Mining (Oil and Gas) Figure 22: Oklahoma City MSA Oil and Gas Employment
Oklahoma City MSA Manufacturing Employment Oklahoma City MSA Financial Services Employment
39 36 35.6 0.07 35.4
37 0.09 0.06 35
35 34.2 0.05 33.9 32.8 34 33 34.1 3.8% 32.0 0.04 0.04 2.5% 33 31 32.1 0.03 0.8%
29 32 1.5% 0.02 -0.3% -0.01 27 0.7% 0.01 31 0.5% % Annual Change,
25 0 % Change, Annual Average Annual % Change, 30 -0.06 2021 ECONOMIC FORECAST 23 Manufacturing Employment, Thousands Employment, Manufacturing 23 -6.0% -0.01 Financial Services Financial Services Thousands Employment, 29 21 -0.02
19 -0.11 28 -0.03 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Manufacturing % Change, Annual Average Financial Services
Oklahoma City MSA Leisure Services Employment
80 76.0 0.15 74.5 74.0
70
68.1 0.1 0.09 60
50 0.05 0.03 40 0.01
0 30 % Change, Annual Average Annual % Change, 20 -0.05 Leisure Services Employment, Thousands Employment, Services Leisure
10
-0.09 0 -0.1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Leisure Services Oklahoma City MSA Nonfarm Employment Oklahoma City MSA Goods Sector Employment 680 $670.0 0.07 93 0.2 $659.1 $659.9 88 85.5 660 0.05 0.15 3.2% 83 80.2 640 0.1 0.03 76.5 1.5% $639.4 1.5% 78 4.8% 620 0.05 77.5 0.01 73 600 0 68 -0.2% -0.01 -1.2% 580 -0.05 63 -0.03 -0.1 560 -3.0% 58 % Change, Annual Average Annual % Change,
% Change, Annual Average Annual % Change, -9.4% Goods Employment, Thousands
Nonfarm Employment, Thousands Employment, Nonfarm -0.05 540 53 -0.15
520 -0.07 48 -0.2 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Nonfarm % Change, Annual Average Goods
Oklahoma City MSA Services Sector Employment Oklahoma City MSA Oil and Gas Employment 648 0.1 0.5 0.08 19.3 587.1 20 598 573.6 578.4 0.06 0.4 3.0% 0.04 548 1.7% 561.6 1.5% 15.1 0.3 0.02 15 498 0 12.9 17.5% 0.2
-0.02 13.4 448 -2.1% 0.1 -0.04 10
-0.06 Average Annual % Change, 0 398 Goods Employment, Thousands -0.08 -3.7% -0.1
348 -0.1 -10.7% Average Annual % Change, Mining Employment, Thousands Mining Employment, 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 5 -0.2 % Change, Annual Average Services -0.3 -30.7% Oklahoma City manufacturing employment peaked more than twenty years ago at more than 53,000 payroll jobs. 0 -0.4 While the sector’s contribution to regional GDP remains significant, a general substitution of capital for labor in the 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 production process is limiting the industry’s total contribution to MSA employment. Employment grew to more than 37,000 % Change, Annual Average Mining (Oil and Gas) jobs before contracting with the energy industry in 2015 and 2016. The recovery saw the industry gain back some but not all of those jobs before losing jobs again in the current contraction. As before, the industry is likely to regain some but not all of the lost jobs as it grows at a 2.5% pace in 2022 to nearly 33,000 payroll jobs.
Oklahoma City MSA Manufacturing Employment Oklahoma City MSA Financial Services Employment
39 36 35.6 0.07 35.4
37 0.09 0.06 35
35 34.2 0.05 33.9 32.8 34 33 34.1 3.8% 32.0 0.04 0.04 2.5% 33 31 32.1 0.03 0.8%
29 32 1.5% 0.02 -0.3% -0.01 27 0.7% 0.01 31 0.5% % Annual Change,
25 0 % Change, Annual Average Annual % Change, 30 -0.06
Manufacturing Employment, Thousands Employment, Manufacturing 23 -6.0% -0.01 Financial Services Financial Services Thousands Employment, 29 21 -0.02
19 -0.11 28 -0.03 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Manufacturing % Change, Annual Average Financial Services Figure 23: Oklahoma City MSA Manufacturing Employment
Oklahoma City MSA Leisure Services Employment
80 76.0 0.15 74.5 74.0
70
68.1 0.1 0.09 60
50 0.05 0.03 40 0.01
0 30 24 2021 ECONOMIC FORECAST % Change, Annual Average Annual % Change, 20 -0.05 Leisure Services Employment, Thousands Employment, Services Leisure
10
-0.09 0 -0.1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Leisure Services Oklahoma City MSA Nonfarm Employment Oklahoma City MSA Goods Sector Employment 680 $670.0 0.07 93 0.2 $659.1 $659.9 88 85.5 660 0.05 0.15 3.2% 83 80.2 640 0.1 0.03 76.5 1.5% $639.4 1.5% 78 4.8% 620 0.05 77.5 0.01 73 600 0 68 -0.2% -0.01 -1.2% 580 -0.05 63 -0.03 -0.1 560 -3.0% 58 % Change, Annual Average Annual % Change,
% Change, Annual Average Annual % Change, -9.4% Goods Employment, Thousands
Nonfarm Employment, Thousands Employment, Nonfarm -0.05 540 53 -0.15
520 -0.07 48 -0.2 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Nonfarm % Change, Annual Average Goods
Oklahoma City MSA Services Sector Employment Oklahoma City MSA Oil and Gas Employment 648 0.1 0.5 0.08 19.3 587.1 20 598 573.6 578.4 0.06 0.4 3.0% 0.04 548 1.7% 561.6 1.5% 15.1 0.3 0.02 15 498 0 12.9 17.5% 0.2
-0.02 13.4 448 -2.1% 0.1 -0.04 10
-0.06 Average Annual % Change, 0 398 Goods Employment, Thousands -0.08 -3.7% -0.1
348 -0.1 -10.7% Average Annual % Change, Mining Employment, Thousands Mining Employment, 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 5 -0.2 % Change, Annual Average Services -0.3 -30.7% In contrast0 to the declining role of the manufacturing industry, the financial services sector is a high value-added industry-0.4 that is growing2011 in employment. 2012 2013 The financial 2014 2015services 2016sector is 2017larger both 2018 in employment 2019 2020 and contribution 2021 2022 to GDP than the manufacturing industry and stands out as a source of strength in a rapidly diversifying Oklahoma City economy. Even amid the pandemic, the industry added% Change, jobs (0.7% Annual growth Average in 2020) and Mining is poised (Oil to and do Gas) so again in 2021. By the end of the forecast period, financial services employment will approach 36,000 jobs and, potentially, a base of strength that could shape the future economic identity of the regional economy.
Oklahoma City MSA Manufacturing Employment Oklahoma City MSA Financial Services Employment
39 36 35.6 0.07 35.4
37 0.09 0.06 35
35 34.2 0.05 33.9 32.8 34 33 34.1 3.8% 32.0 0.04 0.04 2.5% 33 31 32.1 0.03 0.8%
29 32 1.5% 0.02 -0.3% -0.01 27 0.7% 0.01 31 0.5% % Annual Change,
25 0 % Change, Annual Average Annual % Change, 30 -0.06
Manufacturing Employment, Thousands Employment, Manufacturing 23 -6.0% -0.01 Financial Services Financial Services Thousands Employment, 29 21 -0.02
19 -0.11 28 -0.03 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Manufacturing % Change, Annual Average Financial Services Figure 24: Oklahoma City MSA Financial Services Employment
Oklahoma City MSA Leisure Services Employment
80 76.0 0.15 74.5 74.0
70
68.1 0.1 0.09 60
50 0.05 0.03 40 0.01
0 30 2021 ECONOMIC FORECAST 25 % Change, Annual Average Annual % Change, 20 -0.05 Leisure Services Employment, Thousands Employment, Services Leisure
10
-0.09 0 -0.1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Leisure Services Oklahoma City MSA Nonfarm Employment Oklahoma City MSA Goods Sector Employment 680 $670.0 0.07 93 0.2 $659.1 $659.9 88 85.5 660 0.05 0.15 3.2% 83 80.2 640 0.1 0.03 76.5 1.5% $639.4 1.5% 78 4.8% 620 0.05 77.5 0.01 73 600 0 68 -0.2% -0.01 -1.2% 580 -0.05 63 -0.03 -0.1 560 -3.0% 58 % Change, Annual Average Annual % Change,
% Change, Annual Average Annual % Change, -9.4% Goods Employment, Thousands
Nonfarm Employment, Thousands Employment, Nonfarm -0.05 540 53 -0.15
520 -0.07 48 -0.2 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Nonfarm % Change, Annual Average Goods
Oklahoma City MSA Services Sector Employment Oklahoma City MSA Oil and Gas Employment 648 0.1 0.5 0.08 19.3 587.1 20 598 573.6 578.4 0.06 0.4 3.0% 0.04 548 1.7% 561.6 1.5% 15.1 0.3 0.02 15 498 0 12.9 17.5% 0.2
-0.02 13.4 448 -2.1% 0.1 -0.04 10
-0.06 Average Annual % Change, 0 398 Goods Employment, Thousands -0.08 -3.7% -0.1
348 -0.1 -10.7% Average Annual % Change, Mining Employment, Thousands Mining Employment, 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 5 -0.2 % Change, Annual Average Services -0.3 -30.7% 0 -0.4 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Mining (Oil and Gas)
Oklahoma City MSA Manufacturing Employment Oklahoma City MSA Financial Services Employment
39 36 35.6 0.07 35.4
37 0.09 0.06 35
35 34.2 0.05 33.9 32.8 34 33 34.1 3.8% 32.0 0.04 0.04 2.5% 33 31 32.1 0.03 0.8%
29 32 1.5% 0.02 -0.3% -0.01 27 0.7% 0.01 31 0.5% % Annual Change,
25 0 % Change, Annual Average Annual % Change, 30 -0.06
Manufacturing Employment, Thousands Employment, Manufacturing 23 -6.0% -0.01 Financial Services Financial Services Thousands Employment, 29 In contrast21 to financial services, leisure services are a relatively low value-added industry with high employment levels. -0.02 Growth in leisure services, including arts, hospitality and food services, follows directly gains in population and income. As population19 gains continue and assuming a pandemic exit yields again to the propensity for density, leisure services-0.11 will 28 -0.03 return to annual2011 growth 2012 of 3% 2013 to 4%. 2014 The exit 2015 from the 2016 pandemic 2017 economy 2018 to one 2019 that 2020favors density, 2021 social 2022 nearness and 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 joint consumption is unlikely to be either quick or smooth. Job growth will recover in 2021 and grow modestly in 2022 at % Change, Annual Average Manufacturing 2.7% to more than 76,000 jobs. Only in the years beyond will the new economic normal resemble enough the previous % Change, Annual Average Financial Services normal to move leisure employment back to its long-run trend consistent with regional gains in population, density and income. Oklahoma City MSA Leisure Services Employment
80 76.0 0.15 74.5 74.0
70
68.1 0.1 0.09 60
50 0.05 0.03 40 0.01
0 30 % Change, Annual Average Annual % Change, 20 -0.05 Leisure Services Employment, Thousands Employment, Services Leisure
10
-0.09 0 -0.1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, Annual Average Leisure Services Figure 25: Oklahoma City MSA Leisure Services Employment
26 2021 ECONOMIC FORECAST DIGITAL MARKETING simplified
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2021 ECONOMIC FORECAST 27 The social and economic challenges posed by a global virus pandemic remain acute, yet hope is building that a successful vaccine distribution aided by warmer weather CONCLUSION encouraging outside (and distanced) activities could permanently bend the curve of new cases. The hope extends to a return to social consumption in retail, travel, As we emerge from the pandemic, the true strength the arts and other industries. In short, there is faint but real of Oklahoma’s economy will be revealed. There hope that 2021 brings a feeling of economic normalcy. can be no doubt that some state assets remain. Normal will not mean an instantaneous return to all pre- Economic geography will continue to pull pandemic behaviors. Many economic behaviors will linger, population and economic activity to the Oklahoma as will the influence of economic policies. But normal may City MSA and should be joined by a continuation mean an economy that is largely free (perhaps by the of the recent strength in the Tulsa MSA but second half of the year) of formal restrictions on economic headwinds remain. Rural areas will continue to face gatherings. economic pressures as there remains no clear path for oil prices or drilling activity to quickly rebound. In short, a return to a feeling of economic normalcy does not ensure a return to a feeling of unbridled economic strength. The year ahead offers a unique mix of hope and concern. Baseline expectations are that economic activity holds steady through some challenging months early in the year. From there, a transition to pre-pandemic levels of activity will proceed slowly. Many metrics will not return to pre-pandemic peaks until well into 2022. Faint though it may be, hope is a welcomed sentiment, even if it is forced to yield to the harsh reality of a difficult path ahead.
2020 Announcements The Greater Oklahoma City region was the beneficiary of several new-to-market announcements and significant expansions in 2020. A select group of those announcements are described below. May 2020 brought news of Costco considering Oklahoma City for a back-office / financial services operation that would employ more than 1,000. That ultimately culminated in expanded projections of 1,503 new jobs for the Costco Member Services Center over the next five years and the purchase of the former 234,000-square- foot Hertz call center location at 14501 Hertz Quail Springs Parkway in Oklahoma City. Jobs include agents, clerks, administrators, computer and other technical experts, trainers, quality technicians, supervisors and managers. Part-time and seasonal employment opportunities will also be available.
28 2021 ECONOMIC FORECAST Hawaii’s North Star Scientific Corporation (NSS) announced an expansion to Oklahoma City, starting with five employees and plans for 40 jobs at the facility once operations ramp up. NSS designs, develops and qualifies state of the art electronic systems for Department of Defense applications and delivers reliable high-performance products and services. They specialize in radar frequency systems designs and rapid research & development/custom solutions. Their offices are located in the Valliance Bank Tower on Northwest Expressway. Amazon also announced plans in December to open a new fulfillment center in 2021, creating more than 500 new full-time OKC jobs in the process. The new facility on S Portland Ave. will have the capacity to serve as a “last-mile” location and handle larger items. Amazon now employs approximately 5,000 people in Oklahoma City. In June, Skydweller Aero Inc. selected OKC for its U.S. corporate headquarters, with plans for 120 engineering and field tech jobs in OKC, along with testing facilities in Ardmore. The company is involved in producing solar-powered perpetual endurance unmanned aircraft. Other aerospace news in 2020 included expansion plans from Kratos, which produces unmanned aircraft for the U.S. military. In July, the company announced the award of a five-year indefinite-delivery, indefinite-quantity contract valued at up to $400 million for the development, integration and prototype air vehicle delivery in support of the U.S. Air Force’s Skyborg program, with much of the work to be done in Kratos’ OKC facility. Malarkey Roofing Products announced that it will be adding 105 jobs and additional capital investment to its existing facility to address growing business demand. Malarkey is a manufacturer of high-performance residential and commercial roofing products.Heartland Payment Systems, Paycom and Boeing are a few additional existing companies in Oklahoma City to have added or announced plans to add jobs in 2020.
Retail Successes For the seven-county Oklahoma City metropolitan area, 2020 total taxable retail sales decreased by 5.5% from 2019 totals. This follows three consecutive years of positive year-over-year percent increases. At approximately $22.6 billion, the Oklahoma City metro accounts for more than 43% of the taxable retail sales for the entire state of Oklahoma and 36% of the state’s population. This continues to make the Oklahoma City metro a driving force for retail trade in the state. Destination retail strategies and shop local campaigns continue to be important to produce increased sales tax revenue for the Oklahoma City region. For FY 2020 (July 2019 to June 2020 remittance), sales tax collections for the City of Oklahoma City were relatively flat, down slightly at 1.1% over the prior year. For the last half of CY 2020 (July 2020 to December 2020), sales tax collections remained below the prior year for the City of Oklahoma City, but use tax collections increased considerably primarily driven by online retail sales. Sales tax collections by surrounding cities in the metro increased in the second half of 2020 as a result of more people shopping closer to their homes. Cities seeing increases include Norman, Edmond, Moore, Midwest City and Yukon. This follows national trends of suburban communities temporarily benefiting from changes in commuting patterns related to work-from-home policies and fewer opportunities to visit destination retail establishments offered by core cities. Per the Price Edwards 2020 OKC Year End
2021 ECONOMIC FORECAST 29 Retail Market Summary, retail vacancy in the Oklahoma City market increased to 9.7% at year end, up slightly from 8.7% a year ago and 9.2% at mid-year 2020. A few select retailers that announced or opened in the Oklahoma City metro in 2020 include Chicken N Pickle, Homeland, Scooter’s Coffee, Blue Zoo, Round1 Bowling & Amusement, Chicken Foot, HTeaO, Phat Tire Bike Shop, Costco, Edmond Railyard, Park 17, Old Navy, Aldi Grocery, Nashbird, Pinkitzels, Shell Belle’s Bakery, Tavola Restaurant, Commonspace Game Café and Oklahoma Axe Factory.
Methodology Comments The Greater Oklahoma City Economic Forecast is undertaken through cooperation with Oklahoma City University and the Center for Regional Economic Forecasting and Policy Analysis. The forecast is an econometric exercise and is not a consensus forecast of business and civic leaders. All models are constructed from publicly available data sources including datasets from the Bureau of Economic Analysis and Bureau of Labor Statistics. The forecasts are entirely determined by the past information contained in the dataset and the econometric specification of the models. No attempt has been made to “adjust” the forecast for the beliefs or anticipation of the modeler. For example, construction forecasts are not adjusted to reflect the anticipated impact of large, announced public sector investments. The forecast does not take into account anticipated growth from relocations or “new-to-market” firms. In addition, announced expansions of existing companies may take place over a multi-year timeframe and not be fully recognized in the next year. Announced projects that have not taken place are not reflected in forecasted job numbers. The reader is encouraged to treat the forecast as a baseline from which to make their own adjustments and ultimately reach their own conclusion.
30 2021 ECONOMIC FORECAST
2.8 2.3 4.5 2.1 0.3 3.0 4.7 - 66.6 15.9 71.9 2022 1298
151.3
1.9 2.1 1.6 5.0 0.7 0.4 5.7 - - 59.6 15.8 71.1 2021 1357
147.5
2.6 2.5 4.2 1.0 5.4 8.1 - - - - - 10.0 69.7 14.4 69.6 2020 1362 -
142.4
2.3 2.5 1.4 1.6 3.0 1.2 3.7 - 41.3 17.0 75.6 2019 1295
150.9
2.5 2.4 6.5 3.9 1.5 2.2 3.9 - 45.4 17.2 76.6 2018 1248
148.9
2.7 2.9 4.8 4.7 1.1 2.5 4.4 13.4 17.1 75.1 2017 1207
146.6
2.1 2.7 1.8 4.2 1.5 0.3 4.9 20.9 17.5 74.2 2016 1177
144.3
2.2 3.1 0.1 9.2 2.2 1.7 5.3 - - 17.4 75.3 2015 1107 117.0 141.8 2022
-
2.9 3.8 6.9 7.7 0.3 1.4 6.2 73.4 16.5 75.2 2014 1000 138.9
2.6 1.9 5.4 7.1 2.4 1.1 7.4 928 - 92.4 15.5 74.4 2013 136.4
1.5 1.6 5.6 2.1 1.4 8.1 784 - 15.4 60.5 14.4 74.5 2012 134.2
U.S. Economic Outlook, 2021 Employment and Industrial Activity
Major Components of Real GDP
Gross DomesticGross Product: Growth and Components annual) change, (% product domestic gross Real Personal expenditures consumption (% change, annual) change,Nonresidentialannual) fixed(% investment Residential (%change, investment annual) billions) ($ Change privatein inventories change,annual) (% grossGov'tand consumption investment (thousands) starts housing Private (millions) Lightsales vehicle Manufacturing Production (% change, annual) CapacityManufacturing(%) Utilization (millions) Nonfarmemployment payroll Civilian unemploymentrate (%) Source: Macroadvisers by IHS Markit; Steven C. Economic Agee Research and Policy Institute APPENDIX A: U.S. OUTLOOK APPENDIXTABLES U.S. OUTLOOK A:
2021 ECONOMIC FORECAST 31
2.5 2.2 2.1 2.0 2.2 1.0 0.1 1.2 2.0 8.6 2022 52.61 55.88 1062.8 -
2.5 2.2 2.1 2.0 0.3 2.1 0.1 1.0 1.3 9.4 - - 2021 43.91 46.73 1699.1 -
1.2 1.8 1.2 1.6 5.8 2.3 0.4 0.9 2.1 15.7 2020 38.56 41.00 3131.9 -
2.0 2.3 1.5 1.6 3.3 1.9 2.2 2.1 1.6 7.6 2019 56.98 64.34 984.4 -
2.2 2.2 2.0 2.0 2.6 1.2 1.8 2.9 3.7 7.9 2018 64.89 70.96 779.0 -
2.1 1.8 1.8 1.7 4.3 1.2 1.0 2.3 3.4 7.2 2017 50.96 54.83 665.8 -
1.8 2.2 1.6 1.8 1.8 1.1 0.4 1.8 1.8 6.8 2016 43.21 44.24 587.3 - 2022 -
0.4 2.0 0.2 1.2 2.5 1.0 0.1 2.1 3.1 7.6 2015 48.69 52.68 436.5 -
1.2 1.7 1.1 1.5 3.2 0.5 0.1 2.5 5.3 7.3 2014 Rates Deficit and the 93.26 99.83 483.4
-
1.2 1.7 1.2 1.6 0.3 1.5 0.1 2.4 2.5 6.4 - - 2013 97.94 680.2 - 108.74
1.9 1.9 1.8 1.8 5.7 0.3 0.1 1.8 4.9 8.9 U.S. Economic Outlook, 2021 Income, Interest 2012 94.20 111.77 1089.2 -
Economic Research and Policy Institute
Yr Treasury Notes (%) Notes Treasury Yr -
Prices, Productivity, and Costs (% change) Consumerallitems index, price energy) (excluding& food CoreCPI expenditures,index Personalprice consumption index price Core PCE Compensationper hour Outputper hour ($/barrel) crude WTI Priceoil of ($/barrel) crude Brent Price oil of rate funds Federal Yieldon 10 Real disposable personal income(%change, annual) (%) rate saving Personal bil) $ budget Unified(FY, federal Source: Macroadvisers by IHS Markit; Steven C. Agee
32 2021 ECONOMIC FORECAST
5.4% 4.9% 0.7% 4.2% 6.6% 2022 $44,952 $78,163 $195,785 $181,055 4,027,698
1.0% 0.4% 0.7% 1.0% 1.3% - - 2021 6.0% 4.8% 0.6% 4.2% 6.4% $43,125 $73,347 $185,776 $172,550 4,001,123 $45,573 $79,852 $200,777 $183,915 2022:Q4 4,035,603
7.1% 3.3% 0.4% 2.8% 4.7% - - 5.6% 5.3% 0.7% 4.6% 6.9% 2020 $43,564 $72,373 $45,131 $78,685 $183,934 $173,162 $197,419 $181,923 2022:Q3 3,974,913 4,031,029
5.0% 5.1% 0.7% 4.4% 6.8% 2.4% 2.0% 0.4% 1.6% 2.0% $44,703 $77,531 2019 $42,369 $75,921 $192,759 $179,945 2022:Q2 4,025,317 $197,900 $167,670 3,957,396
4.8% 4.5% 0.7% 3.8% 6.1% 2.7% 2.9% 0.2% 2.6% 3.0% $44,400 $76,585 $192,185 $178,436 2022:Q1 4,018,844 2018 $41,712 $74,453 $193,205 $164,419 3,941,713
4.0% 3.3% 0.7% 2.5% 4.9%
$43,742 $75,026 $189,351 $175,481 0.0% 3.0% 0.2% 2.8% 1.5% 2021:Q4 4,011,729 2017 $40,646 $72,261
$188,157 $159,837 3,932,409
1.7% 1.6% 0.7% 0.9% 3.2%
$43,149 $73,592 GDP $186,897 $172,797 2021:Q3 4,004,624 2.7% 6.3% 0.4% 6.7% 3.3% - - - -
2016
$39,541 $71,160 $188,063 $155,216 3,925,407 4.1% 0.6% 1.5% 7.5% 8.1% - -
$42,818 $72,614 $183,543 $171,166 2021:Q2
3,997,516 3.7% 3.4% 0.7% 4.1% 0.8%
- -
2015 $42,400 $73,621 $193,238 $165,710 3,908,282 1.9% 0.6% 1.3% 5.3% 4.0% - - $42,789 $72,157
$183,316 $170,755 2021:Q1 3,990,622
Income, Population, and
5.3% 4.7% 0.7% 4.0% 2.9% 2014 $44,203 $73,068 1.5% 0.5% 1.0% 7.6% 4.9% $186,307 $171,498 - - 3,879,746 $42,656 $71,522 $182,149 $169,919 2020:Q4 3,983,481
Quarterly
Oklahoma Income, Population, and GDP (Annual) Oklahoma GDP and Population, Income, 2.1% 3.3% 0.9% 2.4% 1.6% 1.5% 0.4% 1.1% 7.4% 5.6% 2013 - - $42,512 $71,030 $176,863 $163,782 $42,774 $71,315 3,852,580 $183,823 $170,098 2020:Q3 3,976,651 Oklahoma
0.4% 5.7% - 10.9% 10.6% 10.1% 2012 - $41,507 $69,892 $46,574 $71,517 $176,264 $184,980
$173,239 $158,559 2020:Q2 3,971,728 3,820,030
0.4% 2.3% 0.5% 0.9% 2.6% - - - -
$42,253 $75,138 $193,501 $167,651 2020:Q1 3,967,791
Annual Growth Annual Growth Annual Growth Annual Growth Annual Growth
Q4/Q4Growth Q4/Q4Growth Q4/Q4Growth Q4/Q4Growth Q4/Q4Growth ($ Mil) ($
GDP
Quarter Real RealPersonal ($ Income Mil) Population Real CapitaPer Personal Income RealNonfarm Wageand Salary Mil) ($ Real ($ GDP Mil) Mil) ($ RealIncome Personal Population CapitaPersonalReal Per Income Mil) ($ Salary and Wage Nonfarm Real APPENDIX B: OKLAHOMA OUTLOOK TABLES
2021 ECONOMIC FORECAST 33
37.5 80.5 55.5 71.9 11.7 60.2 2022 2022 2.3% 2.7% 5.0% 1.8% 4.2% 2.9% 1.7% 2.1% 0.3% 5.0% 3.1% 246.2 128.2 303.4 176.0 15.0% 1,680.4 1,328.1 1,434.2
54.4 68.5 11.4 57.1 2021 1.0% 0.5% 0.2% 4.5% 2.9% 32.6 77.3 298.2 175.4 - 2021 0.7% 0.8% 3.7% 1.5% 0.0% 4.1% 234.4 124.6 - - 10.1% - 1,642.6 1,293.5 1,408.2
54.6 65.5 11.0 54.5 2020 2.0% 5.7% 0.7% 2.4% 1.2% 295.2 175.1 - - - - 36.2 77.3 2020 4.2% 5.0% 3.0% 6.5% 7.7% 243.5 130.0 - - - - - 10.5% 25.7% - - 1,631.4 1,283.4 1,388.0
57.9 67.1 10.9 56.2 2019 0.5% 0.8% 1.1% 4.6% 1.6% 301.3 176.3 - 48.7 82.6 2019 0.8% 0.7% 0.1% 1.0% 7.8% 2.8% 1.5% 272.1 140.8 - 1,703.4 1,350.3 1,431.3
57.5 64.2 10.7 53.4 2018 1.0% 1.3% 0.6% 5.5% 0.2% 299.8 178.2 - 52.8 80.4 2018 1.6% 2.1% 4.8% 1.0% 9.9% 3.6% 3.6% 271.9 138.6 1,689.1 1,340.7 1,417.3
56.8 60.8 10.7 50.1 2017 0.9% 0.4% 2.5% 2.7% 3.2% 296.8 179.2 - - -
48.1 77.5 2017 0.5% 0.9% 1.3% 0.4% 8.9% 0.0% 0.5% 259.4 133.8 -
1,662.5 1,313.3 1,403.1 56.5 59.2 11.1 48.1 2016
0.4% 3.4% 0.3% 0.5% 7.1% 299.5 183.8 - - - 44.2 77.5 2016 0.9% 1.2% 6.8% 0.3% 0.0% 5.8%
256.1 134.4 - - - - 18.7% - 1,653.5 1,301.2 1,397.3 58.5 58.9 11.9 47.0 2015 1.8% 1.6% 2.5% 3.2% 0.6% 300.6 183.2 - -
54.4 77.6
2015 0.7% 0.7% 2.8% 1.4% 2.8% 1.4% 274.7 142.8 - - 12.6% - 1,667.9 1,316.7 1,393.2 59.5 57.1 12.0 45.1 2014 2.5% 2.8% 2.1% 3.2% 2.3% 295.4 178.8
62.2 75.5 2014 1.3% 1.7% 1.9% 1.2% 3.5% 0.9% 1.7% 282.5 144.8 1,656.4 1,308.1 1,374.0 57.9 55.3 11.7 43.6 2013 2.0% 2.1% 1.1% 4.9% 0.5% 288.3 175.1
Oklahoma Employment Outlook by Sector OklahomaOutlook Employment by Sector OklahomaOutlook Employment
60.1 74.8 2013 1.3% 1.6% 2.2% 1.1% 2.5% 6.1% 0.1% 277.3 142.4 56.7 52.7 11.7 41.1 2012 1,635.3 1,286.7 1,358.0 2.8% 3.6% 1.5% 6.1% 3.7% 282.6 173.2
58.6 70.5 2012 2.3% 2.7% 5.7% 1.6% 3.2% 4.2% 54.7 49.7 11.2 38.5 271.4 142.4 2011 1.9% 3.1% 1.1% 3.1% 0.7% 13.0% 275.0 170.6 1,614.1 1,266.9 1,342.7
51.8 68.3 2011 1.4% 2.2% 6.6% 0.4% 1.9% 5.1% 256.8 136.6 18.1% 1,577.7 1,233.8 1,320.9
Change,Annual Avg.
% Change, AnnualChange, % Avg. AnnualChange, % Avg. % AnnualChange, % Avg. AnnualChange, % Avg.
% Change, AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. Industry/Year Nonfarm Private Goods Services Gas)Mining(Oiland Construction Manufacturing Industry/Year Utilities Transport, Trade, Wholesale Trade Trade Retail Transport,Warehouse, Utilities Utilities Warehouse and Transport
34 2021 ECONOMIC FORECAST
37.5 80.5 55.5 71.9 11.7 60.2 17.9 82.1 75.8 20.2 93.7 16.5 16.9 69.4 2022 2022 2022 2.3% 2.7% 5.0% 1.8% 4.2% 2.9% 1.7% 2.1% 0.3% 5.0% 3.1% 5.3% 0.8% 1.2% 4.0% 3.1% 3.7% 4.8% 1.0% 1.4% 1.0% 2.9% 8.1% 2.3% 246.2 128.2 303.4 176.0 189.6 237.6 221.0 181.9 165.1 - 15.0% 1,680.4 1,328.1 1,434.2
16.3 15.6 67.3 54.4 68.5 11.4 57.1 18.1 81.2 73.5 19.4 89.4 2021 2021 0.3% 2.1% 0.5% 8.4% 8.0% 1.0% 0.5% 0.2% 4.5% 2.9% 4.9% 4.4% 2.1% 0.7% 0.3% 0.8% 1.8% 32.6 77.3 235.1 218.8 176.9 161.3 298.2 175.4 182.3 - - - - - 2021 0.7% 0.8% 3.7% 1.5% 0.0% 4.1% 12.8% 234.4 124.6 - - 10.1% - 1,642.6 1,293.5 1,408.2
54.6 65.5 11.0 54.5 18.9 79.5 73.7 19.6 87.8 16.7 13.8 67.7 2020 2.0% 5.7% 0.7% 2.4% 1.2% 3.1% 3.5% 0.1% 6.6% 1.8% 2.5% 2020 295.2 175.1 181.1 1.9% 0.5% 6.6% 4.7% 234.4 217.8 163.2 149.3 ------11.0% - - - - 36.2 77.3 16.4% 23.2% 2020 - 4.2% 5.0% 3.0% 6.5% 7.7% - - 243.5 130.0 - - - - - 10.5% 25.7% - - 1,631.4 1,283.4 1,388.0
57.9 67.1 10.9 56.2 19.6 79.4 75.0 20.1 98.7 19.9 18.0 70.6 2019 0.5% 0.8% 1.1% 4.6% 1.6% 5.1% 1.5% 0.3% 1.3% 2.7% 4.0% 0.4% 2019 301.3 176.3 193.8 1.1% 0.1% 1.2% 1.7% 2.7% 1.6% 238.8 218.9 174.7 156.6 - - - 48.7 82.6 2019 0.8% 0.7% 0.1% 1.0% 7.8% 2.8% 1.5% 272.1 140.8 - 1,703.4 1,350.3 1,431.3
57.5 64.2 10.7 53.4 19.9 79.1 73.1 19.3 99.1 19.9 17.6 70.5 2018 1.0% 1.3% 0.6% 5.5% 0.2% 6.7% 2.8% 0.4% 2.8% 3.8% 2.7% 2.1% 2018 299.8 178.2 191.4 0.4% 0.8% 0.4% 2.5% 2.9% 2.5% 236.3 216.4 171.7 154.2 - - 52.8 80.4 2018 1.6% 2.1% 4.8% 1.0% 9.9% 3.6% 3.6% 271.9 138.6 1,689.1 1,340.7 1,417.3
56.8 60.8 10.7 50.1 20.5 78.9 70.4 18.8 97.0 19.7 17.1 68.7 2017 0.9% 0.4% 2.5% 2.7% 3.2% 4.1% 3.3% 0.1% 2.2% 1.1% 0.4% 3.3% 2017 296.8 179.2 186.2 0.7% 1.2% 0.8% 1.4% 0.7% 1.4% - - - - 235.3 215.6 167.5 150.5 -
48.1 77.5 2017 0.5% 0.9% 1.3% 0.4% 8.9% 0.0% 0.5% 259.4 133.8 -
1,662.5 1,313.3 1,403.1 56.5 59.2 11.1 48.1 21.2 78.8 69.6 18.8 93.9 20.0 16.9 64.3 2016
0.4% 3.4% 0.3% 0.5% 7.1% 2.4% 0.1% 0.9% 1.4% 0.0% 0.9% 2.8% 299.5 183.8 182.2 2016 0.9% 0.1% 1.0% 2.0% 3.3% 1.9% ------233.8 213.8 165.3 148.3 44.2 77.5 2016 0.9% 1.2% 6.8% 0.3% 0.0% 5.8%
256.1 134.4
- - - - 18.7% - 1,653.5 1,301.2 1,397.3 58.5 58.9 11.9 47.0 21.2 79.5 69.6 18.6 96.6 20.0 16.4 62.4 2015 1.8% 1.6% 2.5% 3.2% 0.6% 4.2% 0.0% 0.0% 0.1% 1.9% 1.5% 1.8% 300.6 183.2 184.8 2015 1.5% 1.1% 1.6% 3.7% 8.5% 3.1% - - - - 231.6 211.6 162.0 145.6
54.4 77.6
2015
0.7% 0.7% 2.8% 1.4% 2.8% 1.4% 274.7 142.8 - - 12.6% - 1,667.9 1,316.7 1,393.2 59.5 57.1 12.0 45.1 21.2 79.5 68.3 18.3 98.4 2014 19.7 15.1 60.1 2.5% 2.8% 2.1% 3.2% 2.3% 3.4% 2.7% 0.8% 1.8% 1.2% 1.2% 2.3% 295.4 178.8 185.0 2014 0.2% 1.5% 0.0% 2.9% 1.6% 3.0% - 228.1 208.4 156.2 141.1
62.2 75.5 2014 1.3% 1.7% 1.9% 1.2% 3.5% 0.9% 1.7% 282.5 144.8 1,656.4 1,308.1 1,374.0 57.9 55.3 11.7 43.6 21.8 78.9 67.5 18.1 96.2 2013 19.4 14.9 59.1 2.0% 2.1% 1.1% 4.9% 0.5% 6.2% 3.0% 1.0% 1.0% 1.6% 1.8% 0.3% 288.3 175.1 181.8 2013 0.6% 1.2% 0.6% 3.0% 2.5% 3.1% - 227.7 208.3 151.9 137.0
Oklahoma Employment Outlook by Sector OklahomaOutlook Employment by Sector OklahomaOutlook Employment by Sector OklahomaOutlook Employment
60.1 74.8 2013 1.3% 1.6% 2.2% 1.1% 2.5% 6.1% 0.1% 277.3 142.4 56.7 52.7 11.7 41.1 22.5 78.2 66.4 17.8 95.9 2012 19.2 14.5 58.6 1,635.3 1,286.7 1,358.0 2.8% 3.6% 1.5% 6.1% 3.7% 6.7% 2.5% 0.7% 2.1% 2.5% 5.5% 1.2% 282.6 173.2 180.1 2012 1.4% 1.0% 1.4% 3.0% 1.6% 3.2% - 226.2 207.0 147.4 132.9
58.6 70.5 2012 2.3% 2.7% 5.7% 1.6% 3.2% 4.2% 54.7 49.7 11.2 38.5 23.0 77.6 64.8 16.9 94.7 271.4 142.4 2011 19.0 14.3 58.8 1.9% 3.1% 1.1% 3.1% 0.7% 3.8% 5.0% 0.7% 2.0% 1.3% 3.8% 2.3% 13.0% 275.0 170.6 176.4 2011 0.6% 3.3% 0.4% 2.9% 0.7% 3.3% - - 223.1 204.1 143.1 128.8 1,614.1 1,266.9 1,342.7 -
51.8 68.3 2011 1.4% 2.2% 6.6% 0.4% 1.9% 5.1%
256.8 136.6 18.1%
1,577.7 1,233.8 1,320.9
Change,Annual Avg. Change,Annual Avg.
% Change, AnnualChange, % Avg. AnnualChange, % Avg. % AnnualChange, % Avg. AnnualChange, % Avg. % AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. % Change, AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. Services Food & modation AnnualChange, % Avg.
m % Change, AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. Industry/Year Nonfarm Private Goods Services Gas)Mining(Oiland Construction Manufacturing Industry/Year Utilities Transport, Trade, Wholesale Trade Trade Retail Transport,Warehouse, Utilities Utilities Warehouse and Transport Information FinancialServices Services & Business Professional ScientificServices Management Administrative& Support Industry/Year Ed & Health Education HealthServices Services Leisure ArtsRecreation and Acco OtherServices
2021 ECONOMIC FORECAST 35
4.9% 1.1% 3.8% 5.4% 3.2% 17.9 82.1 75.8 20.2 93.7 16.5 16.9 69.4 50.9 79.6 2022 5.3% 0.8% 1.2% 4.0% 3.1% 3.7% 4.8% 1.0% 1.4% 1.0% 2.9% 8.1% 2.3% 3.1% 0.9% 0.6% 0.2% 1.4% 189.6 237.6 221.0 181.9 165.1 352.2 221.8 - - $50,393 $949.08 2022 1,447,329 $72,934,711 $79,298,707
16.3 15.6 67.3 50.6 79.7 18.1 81.2 73.5 19.4 89.4 2021 0.3% 2.1% 0.5% 8.4% 8.0% 0.5% 0.3% 0.9% 0.1% 0.7% 4.9% 4.4% 2.1% 0.7% 0.3% 0.8% 1.8% 235.1 218.8 176.9 161.3 349.1 218.7 182.3
------12.8% 2.7% 0.9% 3.6% 1.8% 1.1% - - $48,567 $919.69 2021 1,431,582
$69,527,846 $75,235,965 18.9 79.5 73.7 19.6 87.8 16.7 13.8 67.7 51.1 79.7 3.1% 3.5% 0.1% 6.6% 1.8% 2.5%
2020 181.1 1.9% 0.5% 6.6% 4.7% 4.1% 1.4% 2.6% 1.8% 2.2% 234.4 217.8 163.2 149.3 348.1 217.3 - - - - - 11.0% ------16.4% 23.2% - - -
3.8% 0.7% 3.1% 6.8% 1.1% - $50,364 $909.64
2020
1,418,813 $71,457,191 $73,905,663 19.6 79.4 75.0 20.1 98.7 19.9 18.0 70.6 49.8 81.1 5.1% 1.5% 0.3% 1.3% 2.7% 4.0% 0.4% 2019 193.8 1.1% 0.1% 1.2% 1.7% 2.7% 1.6% 0.2% 1.3% 1.2% 0.5% 2.0% 238.8 218.9 174.7 156.6 353.1 222.2 - -
-
3.8% 1.1% 2.6% 1.2% 6.7%
$48,860 $900.12 2019 1,408,950 19.9 79.1 73.1 19.3 99.1 19.9 17.6 70.5 49.2 81.5 6.7% 2.8% 0.4% 2.8% 3.8% 2.7% 2.1% 2018 191.4 $68,841,224 $79,297,922 0.4% 0.8% 0.4% 2.5% 2.9% 2.5% 2.5% 0.2% 1.3% 2.1% 0.2% 236.3 216.4 171.7 154.2 348.5 217.8 - - -
4.3% 0.9% 3.4% 3.0% 2.0%
20.5 78.9 70.4 18.8 97.0 19.7 17.1 68.7 48.5 83.3 $47,607 $843.44 4.1% 3.3% 0.1% 2.2% 1.1% 0.4% 3.3% 2017 186.2 2018 0.7% 1.2% 0.8% 1.4% 0.7% 1.4% 6.9% 0.9% 0.9% 1.9% 0.8% - 235.3 215.6 167.5 150.5 349.2 217.4 1,393,605 - - - -
$66,345,545 $78,390,780
housands) 21.2 78.8 69.6 18.8 93.9
t 20.0 16.9 64.3 48.1 84.9 2.4% 0.1% 0.9% 1.4% 0.0% 0.9% 2.8% 4.2% 0.6% 3.5% 0.2% 8.4% 182.2 2016 0.9% 0.1% 1.0% 2.0% 3.3% 1.9% 3.0% 0.3% 2.5% 0.8% 0.2% - - - - 233.8 213.8 165.3 148.3 352.3 219.2 - $46,034 $827.03 2017 1,381,492
$63,595,536 $76,091,701
21.2 79.5 69.6 18.6 96.6 20.0 16.4 62.4 46.9 85.6 4.2% 0.0% 0.0% 0.1% 1.9% 1.5% 1.8% 184.8 2015 1.5% 1.1% 1.6% 3.7% 8.5% 3.1% 3.7% 0.8% 1.4% 0.3% 1.1% - - 231.6 211.6 162.0 145.6 351.2 218.7 -
0.8% 1.2% 1.9% 1.4% 3.0% - - - $44,458 $762.68
2016
1,372,985 $61,039,624 $75,905,375 21.2 79.5 68.3 18.3 98.4 19.7 15.1 60.1 46.3 85.8 3.4% 2.7% 0.8% 1.8% 1.2% 1.2% 2.3% 185.0 2014 0.2% 1.5% 0.0% 2.9% 1.6% 3.0% 1.7% 0.1% 1.8% 0.6% 0.5% - 228.1 208.4 156.2 141.1 348.4 216.3
- - -
2.5% 1.6% 0.9% 6.8% 2.6%
- $45,323 $740.67 2015 1,357,178 21.8 78.9 67.5 18.1 96.2 19.4 14.9 59.1 47.1 86.3 6.2% 3.0% 1.0% 1.0% 1.6% 1.8% 0.3% 181.8 2013 $61,511,862 $76,978,757 0.6% 1.2% 0.6% 3.0% 2.5% 3.1% 0.9% 0.4% 2.5% 0.2% 1.3% - 227.7 208.3 151.9 137.0 348.6 215.1 - -
Oklahoma Employment Outlook by Sector OklahomaOutlook Employment
6.0% 1.2% 4.7% 4.3% 1.1% Oklahoma City Employment Outlook( Employment OklahomaCity - 22.5 78.2 66.4 17.8 95.9 19.2 14.5 58.6 48.4 86.4 $44,924 $760.07 6.7% 2.5% 0.7% 2.1% 2.5% 5.5% 1.2% 180.1 2012 Oklahoma City MSA Income, Population, and Earnings Population,and MSA Income, OklahomaCity 2014 1.4% 1.0% 1.4% 3.0% 1.6% 3.2% 0.4% 1.0% 1.6% 1.9% 1.2% - 226.2 207.0 147.4 132.9 347.2 212.4 1,336,256 - - $60,029,999 $72,107,701
23.0 77.6 64.8 16.9 94.7
19.0 14.3 58.8 49.1 84.8 3.8% 5.0% 0.7% 2.0% 1.3% 3.8% 2.3% 176.4 2.9% 1.7% 1.1% 3.8% 1.2% 2011 0.6% 3.3% 0.4% 2.9% 0.7% 3.3% 2.9% 1.3% 2.6% 1.3% 2.0% - - - 223.1 204.1 143.1 128.8 343.9 209.9 - - - - - $42,900 $768.91 2013 1,320,148 $56,634,702 $69,128,384
5.7% 1.6% 4.0% 6.1% 10.3% $42,418 $778.56 2012 1,297,857
$55,052,398 $66,628,928
($ Thou)
Change,Annual Avg.
GDP
% % AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg.
% Change, AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. Services Food & modation AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg.
m Annual Growth Annual Growth Annual Growth Annual Growth Annual Growth Annual
Information FinancialServices Services & Business Professional ScientificServices Management Administrative& Support Industry/Year Ed & Health Education HealthServices Services Leisure ArtsRecreation and Acco OtherServices Government Federal State Local ($ Income Personal Thou) Population Per Capita Pers. Income Real Metro Average Weekly Earnings APPENDIX C: OKLAHOMA CITY OUTLOOK TABLES
36 2021 ECONOMIC FORECAST
5.9
4.9% 1.1% 3.8% 5.4% 3.2% 50.9 79.6 80.2 15.1 32.2 32.8 21.6 69.5 25.9 35.6 2022 2022 3.1% 0.9% 0.6% 0.2% 1.4% 1.5% 1.6% 4.8% 1.5% 1.9% 2.5% 0.3% 2.1% 0.3% 0.6% 0.8% 0.5% 352.2 221.8 670.0 538.1 587.1 116.9 - - - $50,393 $949.08 17.5% 2022 1,447,329 $72,934,711 $79,298,707
6.0 50.6 79.7 21.1 69.7 25.7 35.4 76.5 12.9 31.7 32.0 2021 0.5% 0.3% 0.9% 0.1% 0.7% 1.6% 2.5% 3.4% 0.4% 7.4% 3.8% 349.1 218.7 2021 116.5
3.2% 3.8% 1.2% 3.0% 3.7% 1.1% 0.3% - - - - 659.9 529.5 578.4 - - - - 2.7% 0.9% 3.6% 1.8% 1.1% - - $48,567 $919.69 2021 1,431,582
$69,527,846 $75,235,965 6.4 21.7 67.4 25.6 34.1 51.1 79.7 2020 77.5 13.4 32.0 32.1
0.3% 9.9% 2.9% 3.2% 9.0% 0.7% 114.7 4.1% 1.4% 2.6% 1.8% 2.2% 2020 348.1 217.3 3.0% 3.5% 9.4% 2.1% 0.3% 6.0% - - 639.4 510.4 561.6 ------30.7% -
3.8% 0.7% 3.1% 6.8% 1.1% -
$50,364 $909.64 2020
1,418,813 7.1 24.0 65.5 24.8 33.9 $71,457,191 $73,905,663 2019 1.4% 0.1% 1.2% 4.0% 1.5% 114.3 - - 49.8 81.1 10.1% 85.5 19.3 32.1 34.2 0.2% 1.3% 1.2% 0.5% 2.0% 2019 353.1 222.2 1.5% 1.5% 0.2% 1.7% 6.2% 0.8%
- 659.1 528.8 573.6 - 10.7% -
3.8% 1.1% 2.6% 1.2% 6.7%
7.4 $48,860 $900.12
2019 24.0 66.2 22.5 33.4 1,408,950 2018 1.1% 0.3% 0.7% 7.7% 4.1% 0.3% 112.8 49.2 81.5 - - $68,841,224 $79,297,922 2.5% 0.2% 1.3% 2.1% 0.2% 348.5 217.8 - - 85.7 21.6 30.2 33.9 2018 2.2% 2.6% 5.0% 1.7% 2.8% 1.4% 649.4 520.8 563.8 15.2%
7.7 4.3% 0.9% 3.4% 3.0% 2.0%
23.9 66.7 20.9 33.3
2017
0.4% 0.3% 2.3% 5.2% 6.0% 0.3% 111.5 48.5 83.3 $47,607 $843.44 - - - 2018 6.9% 0.9% 0.9% 1.9% 0.8% 349.2 217.4 1,393,605 - - - 81.6 18.7 29.4 33.4 2017 $66,345,545 $78,390,780 0.9% 1.3% 1.4% 0.9% 0.2% 3.2% 635.7 507.4 554.2 - 13.3%
8.2 23.8 68.2 19.9 33.2
housands) 2016
0.2% 2.5% 0.9% 1.4% 1.2% 0.7% t 112.0 48.1 84.9 - - - 4.2% 0.6% 3.5% 0.2% 8.4% (thousands) 3.0% 0.3% 2.5% 0.8% 0.2% 352.3 219.2 - $46,034 $827.03 80.4 16.5 29.3 34.5 2017 2016 0.1% 0.5% 7.2% 1.0% 0.3% 7.7% 1,381,492 629.8 500.8 549.4
- - - - 17.1% $63,595,536 $76,091,701
- 8.3 24.5 67.7 19.6 33.4
2015 2.1% 0.6% 2.6% 2.6% 1.5% 0.7% 111.7 46.9 85.6
3.7% 0.8% 1.4% 0.3% 1.1% 351.2 218.7 -
0.8% 1.2% 1.9% 1.4% 3.0% - - - 86.6 19.9 29.3 37.4
$44,458 $762.68 2015 1.6% 1.5% 1.0% 2.0% 7.5% 3.0% 0.2% 630.4 503.4 543.7 2016
- - - 1,372,985 8.1 $61,039,624 $75,905,375 24.3 66.0 19.1 33.2 2014 2.4% 2.4% 2.7% 1.2% 0.7% 2.3% 109.4 46.3 85.8 -
1.7% 0.1% 1.8% 0.6% 0.5% 348.4 216.3
- - -
87.5 21.6 28.4 37.5 2014 2.5% 1.6% 0.9% 6.8% 2.6% 1.9% 2.4% 3.6% 1.7% 3.5% 4.6% 2.9% 620.5 495.8 533.0
- 8.2 $45,323 $740.67 2015 23.7 64.2 18.9 32.4 1,357,178 2013 4.0% 5.2% 3.0% 5.9% 4.7% 2.0% 106.9 47.1 86.3
- $61,511,862 $76,978,757 0.9% 0.4% 2.5% 0.2% 1.3% 348.6 215.1 - -
84.5 20.8 27.2 36.5
2013 2.4% 2.5% 3.5% 2.2% 4.3% 2.2% 4.0% 608.7 484.1 524.2
8.6 6.0% 1.2% 4.7% 4.3% 1.1% Oklahoma City Employment Outlook( Employment OklahomaCity Oklahoma City Employment Outlook Employment OklahomaCity - 22.6 62.4 17.8 31.8 2012 2.9% 5.5% 1.9% 3.3% 4.4% 3.0%
102.8 48.4 86.4 $44,924 $760.07 - Oklahoma City MSA Income, Population, and Earnings Population,and MSA Income, OklahomaCity 2014 0.4% 1.0% 1.6% 1.9% 1.2% 347.2 212.4 1,336,256 - - $60,029,999 $72,107,701 81.6 20.0 26.6 35.1 2012 2.5% 3.0% 7.7% 1.7% 2.5% 6.6% 594.7 472.2 513.0
17.7%
9.0 99.9 21.4 61.2 17.3 30.9
2011 49.1 84.8 2.8% 4.7% 1.8% 4.1% 5.8% 0.6%
2.9% 1.7% 1.1% 3.8% 1.2% - - 2.9% 1.3% 2.6% 1.3% 2.0% - 343.9 209.9 - - - - $42,900 $768.91 2013 1,320,148 75.8 17.0 25.9 32.9 2011 2.3% 3.0% 7.5% 1.6% 2.8% 6.1% 580.1 458.4 504.3 $56,634,702 $69,128,384 19.0%
5.7% 1.6% 4.0% 6.1%
10.3% $42,418 $778.56 2012 1,297,857
$55,052,398 $66,628,928
($ Thou)
GDP
% Change, AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg. AnnualChange, % Avg.
% Change, AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average
Annual Growth Annual Growth Annual Growth Annual Growth Annual Growth Annual
% Change, AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average
Government Federal State Local ($ Income Personal Thou) Population Per Capita Pers. Income Real Metro Average Weekly Earnings Industry/Year Nonfarm Private Goods Services Gas)Mining(Oiland Construction Manufacturing Industry/Year Utilities Transport, Trade, Wholesale Trade Trade Retail Transport,Warehouse, Utilities Information FinancialServices APPENDIX C: OKLAHOMA CITY OUTLOOK TABLES
2021 ECONOMIC FORECAST 37
5.9 80.2 15.1 32.2 32.8 21.6 69.5 25.9 35.6 89.3 38.5 11.0 39.8 94.6 76.0 61.8 30.1 2022 2022 2022 1.5% 1.6% 4.8% 1.5% 1.9% 2.5% 0.3% 2.1% 0.3% 0.6% 0.8% 0.5% 2.8% 3.4% 5.9% 1.3% 1.4% 1.3% 2.7% 2.7% 2.9% 1.1% 670.0 538.1 587.1 116.9 101.3 132.1 - - 17.5%
6.0 99.9 93.4 74.0 60.2 29.2 21.1 69.7 25.7 35.4 86.9 37.2 10.4 39.3 2021 76.5 12.9 31.7 32.0 2021 4.0% 5.5% 8.6% 6.7% 3.1% 1.2% 1.6% 2.5% 3.4% 0.4% 7.4% 3.8% 2.2% 4.1% 3.1% 0.3% 130.6 2021 116.5 3.2% 3.8% 1.2% 3.0% 3.7% 1.1% 0.3% - - 659.9 529.5 578.4 - - - -
6.4 96.0 88.5 68.1 56.4 28.3 21.7 67.4 25.6 34.1 85.0 35.8 10.1 39.2 2020 0.3% 2.4% 8.5% 6.2% 2.8% 1.0% 2020 129.0 77.5 13.4 32.0 32.1 0.3% 9.9% 2.9% 3.2% 9.0% 0.7% 3.6% 0.5% 7.8% 6.1% - - - - - 114.7 2020 3.0% 3.5% 9.4% 2.1% 0.3% 6.0% - - - - - 639.4 510.4 561.6 ------30.7% -
7.1 96.3 86.4 74.5 60.1 29.1 24.0 65.5 24.8 33.9 88.2 35.6 10.9 41.7 2019 2019 3.1% 3.0% 0.9% 1.3% 1.0% 1.3% 1.4% 0.1% 1.2% 4.0% 1.5% 3.1% 3.7% 4.4% 2.2% 130.3 114.3 - - 10.1% 85.5 19.3 32.1 34.2 2019 1.5% 1.5% 0.2% 1.7% 6.2% 0.8% 659.1 528.8 573.6 - 10.7% -
7.4 93.4 83.8 73.8 59.4 28.8
2018 1.5% 1.0% 2.9% 2.9% 2.3% 0.3% 24.0 66.2 22.5 33.4 85.6 34.3 10.5 40.8 128.7 2018 1.1% 0.3% 0.7% 7.7% 4.1% 0.3% 5.0% 3.4% 6.7% 5.9% 112.8 - - 85.7 21.6 30.2 33.9 2018 2.2% 2.6% 5.0% 1.7% 2.8% 1.4% 649.4 520.8 563.8
15.2%
7.7 9.8 92.0 83.0 71.7 57.7 28.2
2017 23.9 66.7 20.9 33.3 81.5 33.2 38.5 1.0% 1.3% 2.5% 3.1% 6.8% 0.5% 128.3 2017
0.4% 0.3% 2.3% 5.2% 6.0% 0.3% 2.3% 2.6% 3.3% 1.9% - 111.5 - - - 81.6 18.7 29.4 33.4 2017 0.9% 1.3% 1.4% 0.9% 0.2% 3.2% 635.7 507.4 554.2 -
13.3%
8.2 9.5 91.2 81.9 70.0 55.9 26.4 23.8 68.2 19.9 33.2 79.6 32.4 37.8 2016
0.7% 1.0% 2.9% 3.0% 4.5% 1.6% 2016 129.0 0.2% 2.5% 0.9% 1.4% 1.2% 0.7% 0.0% 3.7% 0.5% 2.9% 112.0 - - - - - (thousands) 80.4 16.5 29.3 34.5 2016
0.1% 0.5% 7.2% 1.0% 0.3% 7.7% 629.8 500.8 549.4
- - - - 17.1% - 8.3 9.5 90.5 81.1 68.0 54.3 25.2 2015 24.5 67.7 19.6 33.4 79.7 31.2 38.9 1.8% 2.0% 3.1% 2.1% 5.0% 1.8% 127.0 2015 2.1% 0.6% 2.6% 2.6% 1.5% 0.7% 1.2% 3.5% 1.2% 0.5% 111.7 -
86.6 19.9 29.3 37.4
2015 1.6% 1.5% 1.0% 2.0% 7.5% 3.0% 0.2% 630.4 503.4 543.7 - - - 8.1 9.4 88.9 79.5 65.9 53.2 24.0 2014 1.1% 1.0% 2.7% 2.8% 7.3% 0.1% 24.3 66.0 19.1 33.2 78.7 30.2 39.1 124.7 2014 2.4% 2.4% 2.7% 1.2% 0.7% 2.3% 1.4% 0.9% 4.5% 1.1% 109.4 -
87.5 21.6 28.4 37.5 2014 1.9% 2.4% 3.6% 1.7% 3.5% 4.6% 2.9% 620.5 495.8 533.0 8.2 9.0 88.0 78.7 64.2 51.7 22.4 2013 23.7 64.2 18.9 32.4 77.6 29.9 38.7 1.7% 1.7% 4.0% 4.2% 0.0% 1.7% 124.6 2013 4.0% 5.2% 3.0% 5.9% 4.7% 2.0% 1.1% 0.2% 2.5% 1.8% 106.9
- -
84.5 20.8 27.2 36.5
2013 2.4% 2.5% 3.5% 2.2% 4.3% 2.2% 4.0% 608.7 484.1 524.2 8.6 8.8 Oklahoma City Employment Outlook Employment OklahomaCity Outlook(thousands) Employment OklahomaCity 86.4 77.4 61.7 49.6 22.4 22.6 62.4 17.8 31.8 76.8 30.0 38.1 2012 2.4% 2.5% 2.9% 2.9% 1.4% 0.6% 2012 122.5 2.9% 5.5% 1.9% 3.3% 4.4% 3.0% 1.3% 2.8% 2.1%
102.8 - - - 12.8% 81.6 20.0 26.6 35.1 2012
2.5% 3.0% 7.7% 1.7% 2.5% 6.6% 594.7 472.2 513.0
17.7% 9.0 7.8 84.4 75.5 60.0 48.3 22.7 2011 99.9 21.4 61.2 17.3 30.9 75.8 29.1 38.9 1.4% 0.9% 4.2% 5.0% 0.0% 0.2% 121.7 2011 2.8% 4.7% 1.8% 4.1% 5.8% 0.6% 3.6% 3.0% 7.2% 3.3% -
- - 75.8 17.0 25.9 32.9 2011 2.3% 3.0% 7.5% 1.6% 2.8% 6.1% 580.1 458.4 504.3 19.0%
Change,Annual Average
% Change, AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average % Change, AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average % AnnualChange, % Average % Change, AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average Industry/Year Nonfarm Private Goods Services Gas)Mining(Oiland Construction Manufacturing Industry/Year Utilities Transport, Trade, Wholesale Trade Trade Retail Transport,Warehouse, Utilities Information FinancialServices Services & Business Professional ScientificServices Management Administrativeand Support Industry/Year Education& HealthServices HealthServices Services Leisure Accommodations & FoodService OtherServices Government
38 2021 ECONOMIC FORECAST
30.4 46.2 55.4 89.3 38.5 11.0 39.8 94.6 76.0 61.8 30.1 2022 2.8% 3.4% 5.9% 1.3% 1.4% 1.3% 2.7% 2.7% 2.9% 1.1% 0.2% 1.8% 1.1% 101.3 132.1
99.9 93.4 74.0 60.2 29.2 30.4 45.4 54.8 86.9 37.2 10.4 39.3 2021 1.6% 1.7% 0.6% 4.0% 5.5% 8.6% 6.7% 3.1% 1.2% 2.2% 4.1% 3.1% 0.3% 130.6
29.9 44.7 54.5 96.0 88.5 68.1 56.4 28.3 85.0 35.8 10.1 39.2 2020 0.3% 2.4% 8.5% 6.2% 2.8% 1.0% 1.8% 2.4% 1.2% 129.0 3.6% 0.5% 7.8% 6.1% ------
96.3 86.4 74.5 60.1 29.1 29.4 45.8 55.2 88.2 35.6 10.9 41.7 2019 0.7% 0.6% 2.1% 3.1% 3.0% 0.9% 1.3% 1.0% 1.3% 3.1% 3.7% 4.4% 2.2% 130.3
93.4 83.8 73.8 59.4 28.8 29.2 45.5 54.0 2018 1.5% 1.0% 2.9% 2.9% 2.3% 0.3% 1.2% 0.8% 0.7% 85.6 34.3 10.5 40.8 128.7 - 5.0% 3.4% 6.7% 5.9%
9.8 92.0 83.0 71.7 57.7 28.2 28.8 45.8 53.7 2017 81.5 33.2 38.5 1.0% 1.3% 2.5% 3.1% 6.8% 0.5% 1.7% 0.8% 1.5% 128.3
2.3% 2.6% 3.3% 1.9% - - -
9.5 91.2 81.9 70.0 55.9 26.4 28.3 46.2 54.5 79.6 32.4 37.8 2016 0.7% 1.0% 2.9% 3.0% 4.5% 1.6% 3.2% 2.0% 0.4% 129.0 0.0% 3.7% 0.5% 2.9% - -
9.5 90.5 81.1 68.0 54.3 25.2 27.4 45.3 54.3 2015 79.7 31.2 38.9 1.8% 2.0% 3.1% 2.1% 5.0% 1.8% 2.0% 2.0% 1.5% 127.0 1.2% 3.5% 1.2% 0.5% -
9.4 88.9 79.5 65.9 53.2 24.0 26.9 44.4 53.5 2014 1.1% 1.0% 2.7% 2.8% 7.3% 0.1% 2.4% 2.0% 0.2% 78.7 30.2 39.1 124.7 - - 1.4% 0.9% 4.5% 1.1%
9.0 88.0 78.7 64.2 51.7 22.4 27.6 43.5 53.6 2013 77.6 29.9 38.7 1.7% 1.7% 4.0% 4.2% 0.0% 1.7% 2.2% 2.6% 3.2% 124.6 - 1.1% 0.2% 2.5% 1.8% -
8.8 Oklahoma City Employment Outlook(thousands) Employment OklahomaCity 86.4 77.4 61.7 49.6 22.4 28.2 42.4 51.9 76.8 30.0 38.1 2012 2.4% 2.5% 2.9% 2.9% 1.4% 0.6% 0.6% 0.8% 1.2% 122.5 1.3% 2.8% 2.1% - - - 12.8%
7.8 84.4 75.5 60.0 48.3 22.7 28.4 42.1 51.3 2011 75.8 29.1 38.9 1.4% 0.9% 4.2% 5.0% 0.0% 0.2% 0.9% 0.8% 1.7% 121.7 3.6% 3.0% 7.2% 3.3% - -
Change,Annual Average
% Change, AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average AnnualChange, % Average % Change, AnnualChange, % Average AnnualChange, % Average % AnnualChange, % Average
Professional & Business Services & Business Professional ScientificServices Management Administrativeand Support Industry/Year Education& HealthServices HealthServices Services Leisure Accommodations & FoodService OtherServices Government Federal State Local
2021 ECONOMIC FORECAST 39 DEMOLITION • HAULING • EXCAVATION 405.478.8833 or midwestwreckingco.com FOR A FREE ESTIMATE 40 2021 ECONOMIC FORECAST GREATER OKLAHOMA CITY REGION AEROSPACE INDUSTRY Industry Survey and Economic Impact Assessment 2020
Greater OKC Region Aerospace and Aviation - 2020
I. INTRODUCTION AND SUMMARY ...... 1
II. SCOPE OF RESEARCH ...... 5
III. OKC REGION AEROSPACE INDUSTRY PROFILE ...... 11
IV. OKC REGION AEROSPACE EMPLOYERS AND WORKFORCE ...... 15
V. GREATER OKC AREA AEROSPACE OCCUPATION PROFILE ...... 28
VI. STATE-LEVEL AEROSPACE MARKETS ...... 33
VII. AEROSPACE ECONOMIC DEVELOPMENT POLICY ...... 47
VIII. FEDERAL PROCUREMENT IN OKLAHOMA AEROSPACE ...... 52
IX. ECONOMIC IMPACT OF AEROSPACE ...... 61
X. ENDNOTES ...... 66
RegionTrack, Inc. (regiontrack.com) is an Oklahoma City-based economic research firm specializing in regional economic forecasting and analysis. Principal authors of the report are RegionTrack economists Mark C. Snead, Ph.D. and Amy A. Jones, M.A.
i i Greater OKC Region Aerospace and Aviation - 2020
Figure 1. Industry Classifications for Greater OKC Region Aerospace Profile ...... 7 Figure 2. Greater Oklahoma City Region Aerospace Industry Profile (2020) ...... 11 Figure 3. Greater Oklahoma City Region Aerospace Detailed Industry Profile (2020) ...... 12 Figure 4. Greater OKC Region Aerospace Sector Growth (2015 to 2020) ...... 13 Figure 5. Greater OKC Region Aerospace Industry by County (2020) ...... 14 Figure 6. 25 Largest Greater OKC Region Aerospace Employers ...... 15 Figure 7. Air Force Permanent Civilian Jobs by Occupation & High Demand – Tinker AFB ...... 21 Figure 8. Permanent Civilian Jobs – FAA Center ...... 23 Figure 9. Rankings of Key Aerospace Industry Employment by Occupation & State (2019) ...... 28 Figure 10. Average Annual Earnings by Aerospace-Related Occupation by State (2019) ...... 29 Figure 11. Labor Force Key Aerospace Sector Occupations – Greater OKC Region ...... 31 Figure 11. (Cont.) Labor Force in Key Aerospace Occupations – Greater OKC Region ...... 32 Figure 12. Core Private Aerospace Industry Sectors by State (2019) ...... 35 Figure 13. State Rankings of Core Private Aerospace Industry Activity (2019) ...... 36 Figure 14. U.S. & Oklahoma Core Private Aerospace Sectors (2000-2019) ...... 39 Figure 15. Public Sector Aerospace Employment by State (FY2020) ...... 41 Figure 16. Core Private and Public Sector Aerospace Employment ...... 45 Figure 17. Oklahoma Engineer Workforce Tax Credit ...... 47 Figure 18. Federal Procurement in Oklahoma by Major Department (FY2019) ...... 53 Figure 19. Federal Procurement by Agency in Greater OKC Region (FY2005-FY2019) ...... 54 Figure 20. Oklahoma Procurement from Key Aerospace-Related Agencies ...... 55 Figure 21. Federal Procurement for Key Aerospace-Related Agencies by State (FY2019) ...... 56 Figure 22. Oklahoma Aerospace-Specific Federal Procurement (FY2019) ...... 57 Figure 23. Aerospace-Specific Federal Procurement by County (FY2019) ...... 59 Figure 24. Largest Air Force/FAA/NASA Vendors in the 10-County Greater OKC Region (FY2019) ...... 60 Figure 25. Greater OKC Region Aerospace Industry Economic Impacts (2020) ...... 63 Figure 26. Estimated State & Local Tax Revenue - Aerospace Activity (2020) ...... 65
i i Greater OKC Region Aerospace Industry – 2020
I. Introduction and Summary Continuing the Legacy of Aerospace in the Greater OKC Region The aerospace industry remains a large and vibrant component of the Greater Oklahoma City regional economy.1 The region has a long history of aerospace-related defense activity ranging from early aircraft development and manufacturing to pilot training during World War II. Other early efforts included general aviation aircraft design and manufacturing. Tinker Air Force Base (AFB) is now the hub of the region’s aerospace sector and plays a key role in supporting U.S. defense readiness. Similarly, the FAA’s Mike Monroney Aeronautical Center (FAA Center) continues to provide critical products and services that touch all aspects of the U.S. commercial and general aviation sectors. The Greater Oklahoma City region also has a large and growing private aerospace sector with activities ranging from traditional maintenance, repair, and overhaul (MRO) to research and development on unmanned vehicles. Aircraft design and manufacturing has also returned to the region in recent years, particularly unmanned aerial vehicles. Growing synergies between the region’s core public sector aerospace entities and the growing number of private sector firms is creating a large and resilient base of aerospace activity along with a highly skilled and versatile workforce. Purpose and Structure of the Report Understanding the past, present and expected future growth patterns of the region’s aerospace industry is important for policymakers and economic development officials who are actively working to grow the industry. This report contributes to this ongoing effort by providing a detailed profile of the industry and evaluating the economic contribution of the sector in 2020. The report also continues a long-standing research effort to evaluate the region’s aerospace industry at approximately 5-year intervals.2 The 2020 report provides a detailed economic evaluation of the Greater Oklahoma City area aerospace industry from several perspectives. The report’s key tasks are to: 1. Provide a listing of all aerospace establishments operating in the Greater OKC region; 2. Prepare a detailed economic profile of the firms comprising the region’s aerospace sector; 3. Examine growth in the aerospace industry since the release of the 2015 report; 4. Evaluate the major aerospace employers in the region, including both public and private entities; 5. Examine the size and composition of the aerospace labor force in the region; 6. Compare the size and structure of Oklahoma’s aerospace industry to competing states; 7. Evaluate federal contracting activity related to aerospace by vendors in the region; and 8. Prepare an assessment of the economic impacts the aerospace industry generates across the Greater Oklahoma City region.
1
Greater OKC Region Aerospace Industry – 2020
Key Findings Industry Size. Findings indicate that an estimated 291 public and private sector establishments were directly engaged in aerospace activity in the Greater Oklahoma City region in 2020. These employers produced an estimated $7.2 billion in goods and services and paid $3.4 billion in labor income to 43,250 workers. Industry Growth. Significant growth has taken place in the Greater Oklahoma City region aerospace sector since the release of the 2015 aerospace report. Current estimates suggest the industry added 55 new aerospace establishments (23% gain) and more than 6,640 new employees (18% gain) between 2015 and 2020. Output within the industry increased $2.3 billion (48% gain) and total labor income increased by $734 million (28% gain) in the period. Private sector growth managed to outpace the strong gains posted in the public sector. More importantly, the region’s aerospace industry continues to find a better balance between public and private sector activity. Since the 2015 report, the private sector employment share increased from 19.7% to 24.7%, the private output share increased from 34.2% to 38.7%, and the private labor income share increased from 20.9% to 29.8%. Based on output and labor income, the private sector share of the aerospace sector in the region has now reached approximately one-third. Key Industry Characteristics. In 2020, the overall structure of the Greater Oklahoma City Region aerospace sector is best characterized as having: 1. A large public sector presence, primarily federal government; 2. Deep resources in the maintenance, repair and overhaul (MRO) sector; 3. A significant base of public and private sector program management, supply chain and logistics activity; 4. A large, diverse and highly skilled aerospace labor force; 5. A growing presence among major defense and aerospace contractors; 6. A deep concentration of firms engaged in consulting, engineering and R&D; 7. A growing presence of aerospace and aviation-related software development; 8. An emerging presence of aircraft manufacturing, particularly unmanned aerial applications; 9. A large and growing base of federal contracting activity related to aerospace; 10. Healthy commercial and general aviation sectors; and 11. A strong state and local presence in aerospace and aviation education. Major Employers. Tinker AFB with its more than 26,000 employees remains the centerpiece of the aerospace sector in the OKC region. Base personnel represent a dynamic mix of active-duty and reserve military personnel, permanent federal civilian employees and civilian contract workers. These workers represent the largest single concentration of aerospace-related employment in the region, as well as a large share of total aerospace employment statewide. Projected hiring by the Civilian Personnel Office at the base for fiscal year 2021 and fiscal year 2022 totals more than 2,600 positions (deemed in high demand). The FAA Center is the second-largest aerospace employer in the region with more than 5,150 workers. The center is home to the highest concentration of FAA civil servants and contractors in one location outside Washington D.C. The large economic role of the facility is traced to its total operating budget of $1.1 billion in fiscal year 2019. The FAA Center is a unique aerospace asset that plays a key role in national aviation policy, airport maintenance, air travel safety and aviation education. The center is also a major provider of shared services to organizations operating under the Department of Transportation as well as other
2
Greater OKC Region Aerospace Industry – 2020 numerous federal organizations. Additionally, on a typical day, the FAA Academy at the center hosts up to 1,000 students. Boeing is the second largest aerospace and defense contractor in the U.S. and has greatly expanded its presence in Oklahoma City in recent years. Boeing is the largest private aerospace employer in the region with approximately 3,660 employees and the largest federal contractor in the state. Other major aerospace employers in the region include the Oklahoma Air National Guard (1,235 employees), Northrop Grumman (807 employees), CACI (400 employees), Southwest Airlines Reservations (360 employees), AAR Airframe Maintenance (322 employees) and Field Aerospace (280 employees). Aerospace Occupations and Wages. Oklahoma continues to rank highly in the number of employees across key aerospace occupations. Ongoing growth in the sector is adding large numbers of highly skilled workers to the region, particularly engineers. Approximately 1,900 workers in engineering occupations were added to the Greater Oklahoma City region workforce between 2015 and 2020. Wages for most aerospace occupations in Oklahoma remain highly competitive relative to other aerospace markets and reflect the low overall cost-of-living in the state. Wages in most aerospace occupations generally exceed the overall state average, with median hourly wages generally above $20 per hour. The median hourly wage typically exceeds $40 per hour for engineers, air traffic controllers, pilots and software developers. Median wages are below $20 per hour in only a few key aerospace occupations, primarily air passenger airline services and some entry-level aircraft maintenance positions. Oklahoma Aerospace Market Rankings. The 2020 report includes a benchmark comparison of state- level aerospace markets that captures both the private and public sides of the industry. The states have a widely varying mix of public and private sector aerospace activity. Public sector entities and jobs are often excluded from state-level comparisons of aerospace markets, an approach that fails to capture the strength of the Greater OKC market. The true extent of the aerospace market in states like Oklahoma with a high share of public sector activity is not well captured in existing industry comparisons. For example, Oklahoma ranks highly based on private sector activity alone, but generally only receives an upper mid-tier ranking. Based on private sector size, Oklahoma’s aerospace sector ranks among the top 20 states – 15th in the number of business establishments, 20th in employment and 20th in total wages paid in 2019. These rankings all exceed the state’s rank as the 28th most populous state. However, Oklahoma rises to the 10th largest aerospace market when both public and private sector aerospace employment are considered. The jump in rankings is driven by the state’s position as the 5th largest concentration of public sector aerospace-related employment among the states. Oklahoma ranks 1st among the states in the number of civilian Air Force employees, with nearly all based at Tinker Air Force Base. It is this deep concentration of public sector aerospace jobs in Oklahoma that makes their inclusion so vital in comparative state-level studies of aerospace. State and Local Policy. State and local policymakers remain committed to fostering growth in the industry and continue to pursue economic development efforts to grow aerospace in the Greater Oklahoma City Region. The Oklahoma Engineer Workforce Tax Credit remains an important incentive in attracting high-wage aerospace jobs to the region. The Oklahoma Legislature also recently approved a tax credit designed to boost the numbers of highly skilled workers in software development and cybersecurity. Large numbers of graduates from the state’s public and private universities and completers of CareerTech aerospace programs continue to fill jobs in state aerospace firms.
3
Greater OKC Region Aerospace Industry – 2020
Federal Procurement Trends. Federal contracting serves as a significant source of economic activity in Oklahoma and the Greater Oklahoma City region and is closely tied to aerospace activity, particularly at Tinker AFB. Total federal contracting by place of performance in the 10-county Greater Oklahoma City region is up 37% since the 2015 aerospace report, from $1.96 billion to $2.69 billion. Approximately 65% of total state contracting activity is traced to the 10-county Greater Oklahoma City region. Total contracts issued by the Air Force and performed in the Greater OKC region totaled $1.88 billion in fiscal year 2019 and comprised 45% of total contracting in the state from all federal sources. Across the Air Force, FAA, and NASA, or the three federal entities most closely tied to aerospace, vendors located in the 10-county region performed $2 billion in contracts in fiscal year 2019. Some of these contracts only indirectly support aerospace activities. An alternative measure of federal contracts identifying goods and services that are directly aerospace-related, regardless of government agency, totaled $1.62 billion in fiscal year 2019. Economic Spillover Effects and Tax Impact. In terms of direct employment, approximately 43,250 workers in the region are employed directly in aerospace, with three-fourths (32,554) employed in public sector positions at Tinker AFB and the FAA Center. In total, an estimated 77,105 jobs statewide are provided either directly by the aerospace sector or supported indirectly through multiplier effects generated by the industry. The $3.4 billion in direct labor income paid to workers in the aerospace sector likewise generates substantial ripple effects as the income is earned and recirculated within the regional economy. An additional $2.4 billion in labor income is earned by workers in other industries statewide, or a total earnings impact of $5.8 billion in the region. Aerospace establishments in the region generated an estimated $7.23 billion in direct output of goods and services in 2020. Overall, either directly or indirectly through multiplier effects, aerospace activity in the Greater Oklahoma City region supported the production of $11.6 billion in total output of goods and services in 2020. The total direct and spillover effects traced to the aerospace industry are far larger in 2020 than in the 2015 report. Total employment traced to aerospace in the region increased from 67,583 to 77,105, a 14% increase over the past five years. The total labor income effect increased by more than $1.7 billion, from $4.1 billion to $5.8 billion, or a 43% increase. Total output produced by the aerospace industry increased by an estimated 42% since 2015, from $8.2 billion to $11.6 billion. Estimates suggest that the activity generated directly by the aerospace industry produced approximately $300 million in tax payments to state and local government in 2020. Aerospace Growth Trend Intact. Overall, the report finds that the aerospace industry in the 10-county Greater Oklahoma City region remains vibrant and has experienced considerable growth and development since the last evaluation of the sector in 2015. Trends in industry activity, firm relocations and expansions, state-level rankings, labor market development and federal procurement success suggest continued aerospace industry growth in the region going forward.
4
Greater OKC Region Aerospace Industry – 2020
II. Scope of Research A key activity underlying the development of the 2020 aerospace report is the compilation of a detailed listing of firms in the Greater Oklahoma City region that are directly and substantially engaged in the provision of aerospace-related goods and services. Key characteristics of each firm are collected or estimated, including output (or revenue), employment and labor income paid to workers. Proprietary and public databases are used in compiling the information along with direct contact with firms and consultation with industry professionals. The database of aerospace firms is then used to prepare an economic profile of the industry as well as estimates of the economic contribution of the industry to the Greater OKC area economy. Aerospace Industry Analysis Framework. The process for compiling the firm-level database and aerospace industry profile for the OKC region is as follows: Definition of Aerospace. In broadest terms, the aerospace industry comprises various forms of manmade air and space flight, along with the associated areas of manufacturing, maintenance and repair, research and 3 development, engineering, consulting, logistics, other activities underlying air and space travel. The aviation sector is considered a subset of aerospace, referring only to the production, maintenance, development, and application of vehicles capable of atmospheric flight. For convenience, aviation is often divided into civil and military aviation, with civil aviation further subdivided into commercial and general aviation. Throughout the report, aerospace is used to denote all aspects of the industry, including the aviation sector. Study Region. A comprehensive industry profile is developed for the 10-county Greater Oklahoma City region. The region is defined as a contiguous area in central Oklahoma that includes Canadian, Cleveland, 4 Grady, Kingfisher, Lincoln, Logan, McClain, Oklahoma, Payne and Pottawatomie counties. Oklahoma County is roughly the geographic center of both the region and the state and represents the core of the industry. The region stretches from McClain County in the south to Payne County in the north. The region includes the seven component counties of the Oklahoma City Metropolitan Statistical Area (MSA) plus Kingfisher County to the northwest, Pottawatomie County to the southeast and Payne County to the northeast. The study area captures both of the state’s top-tier research universities (R1: Doctoral Universities), Oklahoma State University in Stillwater (Payne County) and the University of Oklahoma in Norman (Cleveland County). In compiling economic impact estimates for the industry, direct and spillover economic effects are estimated for the same 10-county region. The economic impact estimates exclude aerospace activities located outside the region such as the private aerospace industry in the Tulsa area and Air Force bases in Enid and Altus.
5 Data Sources. Aerospace establishments are identified using both public and proprietary databases of employment and revenue for both private businesses and public sector entities operating in the 10-county region. Private firms are initially selected using NAICS industry codes affiliated with aerospace but are also identified using aviation-related keywords within firm names and known addresses for aviation hubs in the area. The initial pool of establishments is supplemented by adding those identified through discussions with aerospace industry officials and recent news reports, including firms newly located in the region. Airports and heliports are identified using online FAA databases and are included in the industry profile only if actively operated for public purposes. 5
Greater OKC Region Aerospace Industry – 2020
The initial set of aerospace establishments is cleaned manually for duplicate entries, name changes, mergers and relocations and other recognized reporting errors. Each entity is evaluated through a combination of direct phone contact, online search and discussion with industry experts to determine if it is 1) directly and substantially engaged in the provision of aerospace-related goods and services and 2) actively operating within the region. Firms that are only indirectly related to the industry or serve in a minor support capacity are excluded. Some firms excluded from the survey are actively involved in Defense contracting to the Air Force and other federal departments but do not provide goods and services directly related to aerospace. The activity at firms that indirectly support the industry is nonetheless important and is captured in part through estimated economic spillover effects in the final section of the report. Data Coverage. Both private and public sector employers are included throughout the report. Public sector employees include federal, state and local government employees. Federal employees include active-duty and Reserve/Guard military personnel, federal civilian employees and civilian contract workers. The largest concentrations of federal employees are located at federal installations in the region, particularly at Tinker AFB and the FAA Center. Members of Oklahoma Air National Guard and Air Force Reserve units are likewise tracked. Data are generally collected at the establishment level (e.g., some large aerospace contractors require multiple buildings in which to operate that are combined), but some data are tabulated at the establishment level and represent unique operating locations (e.g., FAA maintains locations at multiple airports in the region that are tracked separately). Economic Measures. The industry profile and other estimates compiled in the report are based on estimates of the level of employment, labor income and output for each aerospace establishment. Employment covers primarily wage and salary workers but includes some self-employed proprietors reported in the data. Labor income is a comprehensive measure of household earnings from work and includes both employee compensation (wages and salaries plus other supplements to wages and salaries) and the proprietor’s self- employment income. Output generally represents the market value of all goods and services produced and is closely related to total revenue for most establishments. For most service-providing firms, output is assumed equal to revenue. When output is not available for a firm, an estimate is formed using either output per employee from similar firms in the database (where available), estimates for the industry from federal datasets, or national ratios of output per employee adjusted for differentials between state and national ratios. Estimates of employment and output are obtained primarily from proprietary firm-level databases used in the initial identification of aerospace firms. The reported employment and output estimates for each firm are evaluated to determine whether 1) total activity accurately reflects the current level of operation at each firm and 2) activity per worker is consistent with similar firms operating in the region. Adjustments are made to the database to reflect information provided by individual firms in phone contacts, feedback from industry officials, information in public reports, news reports of layoffs, mergers and relocations. Labor income is estimated using either proprietary databases or information provided by individual firms in phone contacts, information in public reports, feedback from industry officials or average labor income per employee for the corresponding industry sector from federal datasets. Labor income and employment for both Tinker AFB and the FAA Center are derived from current and historical reports provided by representatives at each facility.
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Greater OKC Region Aerospace Industry – 2020
Custom Industry Groupings. In preparing the economic profile and economic impact estimates, aerospace establishments are classified into eight major groups and 25 subgroups as detailed in Figure 1. The industry groupings are chosen to reflect the current structure and growth trend of the aerospace industry in the Greater Oklahoma City region. The groupings are similar to the broad industry sectors defined under the NAICS industry classification system but capture far more detailed components of the aerospace sector than possible when using NAICS. The NAICS system is based on a production-oriented concept whereby establishments are grouped into industries according to similarity in the processes used to produce goods or services. This approach tends to obscure many of the specialized activities taking place within the broader aerospace sector. The groupings used in the 2020 industry profile provide a more functional and descriptive view based on a firm’s primary product line or service provided. Government is treated as a unique component of the industry due to the substantial presence of both Tinker AFB and the FAA Center. State and local government are tracked separately from federal government. The eight major groups in Figure 1 are used throughout the report to develop estimates of the economic contribution of the aerospace sector. The 25 detailed subgroups are used to provide more industry detail in an accompanying digital directory of aerospace and aviation firms operating in the region.
Figure 1. Industry Classifications for Greater OKC Region Aerospace Profile Group Subgroups Air Transportation Airport Services & Support Aircraft Finance, Title, Leasing, and Sales Aircraft Fleet Ownership and Rental Airports Airport Ground Transportation Air Passenger Transportation Medical Flight Air Freight Education and Training Aviation Education and Training Flight Training Engineering, Consulting, Program Software and Information Technology Management, and Logistics Engineering, Consulting, and R&D General Contracting Logistics, Supply Chain, and Customer Support Government State and Local Government Federal Government MRO Maintenance, Repair, and Overhaul Manufacturing Aircraft Parts and Components Manufacturing Unmanned Aerial Systems Aircraft Manufacturing Supplies and Materials Parts and Components Tools and Supplies Other Aerial Services (e.g., Spraying and Photography) Museums Other
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Greater OKC Region Aerospace Industry – 2020
Private Aerospace Sectors. A new section of the 2020 report provides a state-level evaluation of the aerospace sector that includes both the public and private sectors. State-level comparisons of aerospace activity often focus solely on private sector activity and overlook a large segment of the industry in the Greater OKC region. To prepare a framework for valid comparison across states, we first use standard NAICS codes to define the core set of industry sectors that comprise the private aerospace industry. This approach is commonly used in other comparative state-level studies of the aerospace sector.6 Moreover, this standardized approach using NAICS codes is necessary because the firm-level data collection process used to prepare the industry profile for the Greater Oklahoma City region is not feasible for all states and the nation. Three NAICS industry sectors – 3364 (Aerospace Product and Parts Manufacturing), 481 (Air Transportation), and 4881 (Support Activities for Air Transportation) – are viewed as comprising the core of the private sector aerospace industry. Two of the components are 4-digit sectors (3364 and 4881) while the third (481) is a more aggregated 3-digit sector. The three core sectors serve as a highly useful proxy for the overall private component of the industry because they are believed to jointly comprise at least 90% of private aerospace activity in the U.S. Sector 3364 (Aerospace Product and Parts Manufacturing) generally represents the aerospace sector as an aircraft manufacturing and maintenance industry. Sectors 481 (Air Transportation) and 4881 (Support Activities for Air Transportation) capture the broad scope of commercial and general aviation activity including passenger air travel. The three core sectors can be reduced to their base 6-digit sectors, with the final group comprised of the following 14 6-digit NAICS sectors: 1. NAICS 3364: Aerospace Product and Parts Manufacturing Includes six 6-digit NAICS sectors covering aircraft and aircraft parts manufacturing and guided missile and space vehicle-related manufacturing. 336411 Aircraft Manufacturing 336412 Aircraft Engine and Engine Parts Manufacturing 336413 Other Aircraft Parts and Auxiliary Equipment Manufacturing 336414 Guided Missile and Space Vehicle Manufacturing 336415 Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manu. 336419 Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manu.
2. NAICS 481: Air Transportation Includes five 6-digit NAICS sectors covering both scheduled and nonscheduled charter passenger and freight transportation by air. 481111 Scheduled Passenger Air Transportation 481112 Scheduled Freight Air Transportation 481211 Nonscheduled Chartered Passenger Air Transportation 481212 Nonscheduled Chartered Freight Air Transportation 481219 Other Nonscheduled Air Transportation
3. NAICS 4881: Support Activities for Air Transportation Includes three 6-digit NAICS sectors capturing a range of support activities centered around flight control and the ground operation of airports. 488111 Air Traffic Control 488119 Other Airport Operations
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Greater OKC Region Aerospace Industry – 2020
488190 Other Support Activities for Air Transportation Data using the 14 core 6-digit NAICS industry sectors is readily available in major federal economic databases, which allows for easy and reliable updates over time. It is important to note that the three core NAICS sectors (3364, 481 and 4881) are clearly not the only sectors comprising the aerospace sector. Numerous other NAICS sectors are widely recognized as serving a direct role in aerospace and include: NAICS 333314: Optical Instruments NAICS 334511: Search and Detection Instrument Manufacturing NAICS 336360: Seating and Trim NAICS 423860: Wholesale Trade – Transportation Parts NAICS 441228: Aircraft Sales NAICS 532411: Aircraft Rental and Leasing NAICS 611512: Flight Training NAICS 611519: Air Traffic Control Schools NAICS 115112: Aerial Spraying NAICS 424720: Wholesale Trade – Petroleum
Most of these sectors are included in the comprehensive database and industry profile prepared for the Greater Oklahoma City region. However, they are excluded from the state-level industry comparisons for two reasons: 1) the industries, even when combined, are quite small relative to the core sectors, and 2) state- level data for these sectors are often suppressed in federal economic databases. Because these sectors are typically quite small relative to the three core sectors, they are believed to have little influence on the resulting state-level comparisons and rankings. Combined, the excluded sectors typically account for far less than 10% of direct employment within the broader aerospace and aviation industry. In most states, they account for less than 5% of total employment in the industry. Because of suppression in federal databases, using these industries would require either forming estimates for each sector in each state or using the same firm-level approach used in the Greater Oklahoma City region for each region. The first approach introduces considerable uncertainty into the state-level comparisons while the second is cost prohibitive. Aerospace and COVID-19 The restrictive effects of COVID-19 on business activity have been highly visible in the U.S. aerospace sector, particularly passenger air travel and aircraft manufacturing. The economic profile of the Greater Oklahoma City region aerospace sector provided in this report does not adjust the results for the expected effects of COVID-19. The results generally capture the most recent operating year of results for most firms that were available in early 2020, a time frame not heavily influenced by the early stages of the pandemic. As a result, the 2020 aerospace report captures the steady state of the industry at the earliest stages of the pandemic and economic downturn. Several risks and potential long-term effects of COVID-19 on the aerospace sector have surfaced as the pandemic has developed: 1. The ongoing pandemic has had a disproportionately negative impact on the commercial aviation sector, particularly passenger air travel. The volume of commercial air travel remains closely tied to the overall prevalence of COVID-19, with the sector expected to recover much of its lost activity only when a vaccine is widely available. Business travel is believed to have made at least an intermediate-term downshift in volume due to the widespread adoption of teleconferencing. Some reduction in business travel could be long-lived. 9
Greater OKC Region Aerospace Industry – 2020
2. Federal cash infusions to the airline industry have greatly aided air carriers in surviving the collapse in passenger air travel and maintaining employment levels. 3. Commercial aircraft and parts manufacturing have both been hard-hit by the pandemic. Large numbers of aircraft deliveries have been canceled or delayed and the parts replacement cycle has slowed sharply along with passenger air miles flown. 4. The defense side of aerospace has been better positioned to address the market effects of the COVID outbreak, generally faring far better in the slowdown than commercial aircraft manufacturing and passenger air travel. Several factors suggest that the Greater Oklahoma City region is well positioned relative to many aerospace hubs to respond to COVID-19: 1. The high share of public sector aerospace activity at both Tinker Air Force Base (AFB) and the Federal Aviation Administration (FAA) Mike Monroney Aeronautical Center (FAA Center) provides substantial stability to the region’s aerospace base. These large federal entities are experiencing budget stability despite the pandemic. 2. Oklahoma City has far less dependence on air travel than many other regions of the country that have large hub airport operations, private MRO base operations or significant tourism-related air travel. 3. The presence of large private defense contractors with long-run contract programs in place has provided additional stability during the pandemic. 4. The overall economic rebound in the Oklahoma City metro area has outpaced the state recovery to date and is more national-like in pace.
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Greater OKC Region Aerospace Industry – 2020
III. OKC Region Aerospace Industry Profile Figure 2 summarizes the structure of the 10-county Greater Oklahoma City region aerospace sector by major industry group in 2020.7 The profile provides key measures of business activity including the number of business establishments, employment, output, and labor income within each group. The two major government installations in the region (Tinker AFB and the FAA Center) are listed separately in the government section. Figure 3 provides a more detailed economic profile across the 26 subgroups. Industry Economic Profile In terms of overall structure, the Greater Oklahoma City region aerospace market can be characterized as having a large public sector presence; a large and growing private maintenance, repair, and overhaul (MRO) sector; a significant concentration of aerospace engineering, consulting, and logistics firms; an air transportation sector consistent with population; and a nascent aircraft manufacturing presence. An estimated 291 public and private sector establishments in the Greater OKC region were directly engaged in aerospace activity in 2020. These employers produced an estimated $7.23 billion in goods and services and paid $3.4 billion in labor income to approximately 43,250 workers. A key characteristic of the regional and U.S. aerospace industry remains high average wages. The average labor income in aerospace in the Greater Oklahoma City region is approximately $78,610 per worker in 2020. For comparison, labor income per worker in the industry is 30% higher than the overall average for all industries statewide ($60,730) and 27% higher than the average for all industries in the 10-county region ($61,692).
Figure 2. Greater Oklahoma City Region Aerospace Industry Profile (2020) Employ- Labor Establish- ment Output Income Major Group ments ($Mil) ($Mil) Government 10 32,554 $4,436.0 $2,385.2 Tinker Air Force Base (military, federal civilian, and contractors) 1 26,029 3,229.5 1,755.6 FAA Mike Monroney Aeronautical Center 1 5,159 1,105.7 563.5 All Other Government (federal, state, and local) 8 1,366 100.8 66.1 Maintenance, Repair, and Overhaul (MRO) 34 4,668 1,472.4 509.0 Engineering, Consulting, Program Management, and Logistics 53 2,901 617.9 275.2 Air Transportation (Airports, aircraft sales, and air travel) 105 1,942 443.3 142.1 Supplies and Materials 44 912 221.6 71.1 Education and Training 26 181 21.9 10.7 Manufacturing 5 47 14.4 4.0 Other (spraying, aerial services, and other) 14 47 6.1 2.7
Total 291 43,252 $7,233.6 $3,400.0 Notes: Major industry groups sorted by employment. Source: Data Axel, Salesforce, D&B Hoovers, federal reports, Tinker AFB internal reports, FAA internal reports, direct verification of data, and RegionTrack estimates
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Greater OKC Region Aerospace Industry – 2020
Figure 3. Greater Oklahoma City Region Aerospace Detailed Industry Profile (2020) Labor Establish- Employ- Output Income Major Group Subsector ments ment ($Mil) ($Mil) Air Transportation Airport Services & Support 18 602 $169.4 $36.8 Aircraft Finance, Title, Leasing, and Sales 23 199 38.3 12.9
Aircraft Fleet Ownership and Rental 11 43 10.8 3.9 Airports 23 94 13.8 4.3 Airport Ground Transportation 6 38 7.1 1.9 Air Passenger Transportation 11 698 141.8 62.4 Medical Flight 3 18 4.3 1.5 Air Freight 10 250 57.9 18.3 Education and Training Aviation Education and Training 13 116 15.3 7.7
Flight Training 13 65 6.6 3.0 Engineering, Consulting, Program Software and Information Technology 11 146 36.3 14.5 Management, and Logistics Engineering, Consulting, and R&D 34 2,108 474.3 209.6 General Contracting 3 17 2.4 1.3 Logistics, Supply Chain, and Customer Support 5 630 104.9 49.8
Government State and Local Government 3 1,243 87.7 54.7
Federal Government 7 31,311 4,348.3 2,330.5 Manufacturing Aircraft Parts and Components Manufacturing 2 12 2.9 0.8
Unmanned Aerial Systems 2 25 8.8 2.4 Aircraft Manufacturing 1 10 2.7 0.8 MRO Maintenance, Repair, and Overhaul 34 4,668 1,472.4 509.0 Other Aerial Services 10 34 4.9 2.2 Museum 3 8 0.7 0.3 Other 1 5 0.5 0.2 Supplies and Materials Parts and Components 41 874 209.9 67.8
Tools and Supplies 3 38 25.5 8.0 Total 291 43,252 $7,233.6 $3,400.0 Notes: Major industry groups sorted by alphabetical order. Source: Data Axel, Salesforce, D&B Hoovers, federal reports, Tinker AFB internal reports, FAA internal reports, direct verification of data, and RegionTrack estimates
The reported 32,554 government workers comprise 75% of the region’s aerospace labor force. These workers include federal civilian workers, civilian contract workers, active-duty military and Reserve/Guard members. The activities at Tinker AFB include a large maintenance, repair, and overhaul (MRO) operation and a range of high-skill aerospace-related service occupations, with large numbers of workers engaged in program management and logistics activities. The large public sector employment base at the FAA Center similarly provides a diverse mix of high-skill aerospace-related jobs, along with a significant number of workers who provide business support services. The labor forces located at the region’s two large public sector facilities have an increasing amount of occupational overlap with the private side of the industry in the region.
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Greater OKC Region Aerospace Industry – 2020
Industry Growth Trend – 2015 to 2020. Significant growth has taken place in the Greater Oklahoma City region aerospace sector since the release of the region’s 2015 aerospace report. Figure 4 compares summary results from the current industry assessment with the 2015 report. Current estimates suggest the industry added 55 new aerospace establishments (23% increase) and more than 6,600 new employees (18% increase) between 2015 and 2020. Output within the industry increased $2.34 billion (48% gain) in the period. Average output per firm increased 20% between 2015 and 2020, reaching $24.9 million per establishment. Total labor income paid by aerospace firms increased by $734 million since 2015, or a 28% increase.
Figure 4. Greater OKC Region Aerospace Sector Growth (2015 to 2020) Report Output Labor Income Employ- Year Establishments ($Mil) ($Mil) ment
2015 236 $4,893.1 $2,665.9 36,611
2020 291 $7,233.6 $3,416.4 43,370
Change 55 $2,340.5 $734.1 6,641
% Change 23.3% 47.8% 27.5% 18.1%
From a productivity viewpoint, output per worker increased to $167,241, an increase of 25% over the past five years. Increased productivity supported an 8% increase in average labor income per worker since 2015, reaching approximately $78,610 in 2020. Private vs. Public Sector Growth. Growth has been substantial since the 2015 report in both the public and private sectors of the region’s aerospace industry. Public sector aerospace establishments increased their output by $1.2 billion (38% gain) since 2015. Hiring increased by 3,162 workers (11% gain) while labor income increased by $277 million (13% gain) in the period. Private sector growth managed to outpace the strong gains posted in the public sector. An additional 61 private sector establishments were added since the 2015 report with increased output of $1.1 billion (67% gain). Private sector employment increased by nearly 3,500 (48% gain) since the 2015 report, with increased private labor income of $457 million (82% gain). More importantly, the region’s aerospace industry continues to find a closer balance between public and private sector activity. Since the 2015 report, the private sector employment share increased from 19.7% to 24.7%, the private output share increased from 34.2% to 38.7%, and the private labor income share increased from 20.9% to 29.8%. The increased private sector shares are noteworthy given strong public sector growth in the period. The private sector now represents one-fourth of the region’s aerospace industry based on employment and approximately one-third of the sector based on labor income and output.
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Greater OKC Region Aerospace Industry – 2020
Aerospace Employment by County Figure 5 partitions the aerospace industry profile among the ten counties comprising the Greater Oklahoma City region. While all ten counties have some aerospace presence, the industry’s core remains highly concentrated in Oklahoma County. Oklahoma County is home to nearly 60% of the region’s aerospace employers, nearly 98% of the aerospace jobs in the region and more than 97% of the total output produced by the sector. Most of the region’s large public aerospace-related infrastructure is located within Oklahoma County, including Tinker AFB, the FAA Center, Will Rogers Air National Guard Base and Will Rogers World Airport. Most of the largest private employers in the region, such as Boeing, Northrop Grumman, CACI, Southwest Airlines Reservation Center and AAR, are similarly located in Oklahoma County.
Figure 5. Greater OKC Region Aerospace Industry by County (2020) Aerospace as Total % of Total County Establishments Employment Output ($Mil) Employment Employment
Canadian 20 6.9% 128 0.3% $25.5 0.4% 61,387 0.21% Cleveland 28 9.6% 159 0.4% 31.6 0.4% 133,809 0.12% Grady 3 1.0% 17 0.0% 2.8 0.0% 22,433 0.08% Kingfisher 2 0.7% 2 0.0% 0.3 0.0% 12,029 0.02% Lincoln 8 2.7% 48 0.1% 8.6 0.1% 13,490 0.36% Logan 10 3.4% 72 0.2% 21.6 0.3% 16,950 0.42% McClain 6 2.1% 12 0.0% 4.4 0.1% 17,771 0.07% Oklahoma 176 60.5% 42,301 97.8% 7,048.3 97.4% 631,438 6.70% Payne 27 9.3% 421 1.0% 68.2 0.9% 49,242 0.85% Pottawatomie 11 3.8% 92 0.2% 22.4 0.3% 33,681 0.27% 10-County Region 291 100.0% 43,252 100.0% $7,233.6 100.0% 992,230 4.36%
Notes: Total employment by county is based on BEA’s measure of total employment (wage & salary + proprietors) and includes military personnel. Source: Bureau of Economic Analysis (BEA) and RegionTrack calculations
Most of the jobs located outside Oklahoma County are in aircraft maintenance and air transportation and primarily support local general aviation. These smaller aerospace firms are widely spread among the remaining counties. Among the other counties, Cleveland County and Payne County have the largest number of aerospace firms, with 28 and 27 establishments, respectively. Both counties are home to a Tier 1 research university (University of Oklahoma in Cleveland County and Oklahoma State University in Payne County) which offers flight training and programs in aerospace engineering. Canadian County is home to 20 aerospace establishments that serve a diverse mix of market segments including training, parts manufacturing and general aviation services. Employment in aerospace comprised an estimated 4.4% of all employment in the Greater Oklahoma City region in 2020. The employment share is greatest at 6.7% in Oklahoma County but falls below 1% of total employment in the remaining counties. Payne County aerospace workers comprise nearly 1% of total county employment while the remaining counties fall below a 0.5% share. 14
Greater OKC Region Aerospace Industry – 2020
IV. OKC Region Aerospace Employers and Workforce Largest Aerospace Employers. The Greater Oklahoma City Region aerospace industry is comprised of approximately 20 large employers with more than 100 employees and approximately 270 small employers with fewer than 100 employees. Figure 6 highlights the 25 largest aerospace-related employers in the Greater Oklahoma City Region. The region has three very large aerospace employers – Tinker AFB, the FAA Center, and Boeing – that employ a combined 80% of all aerospace workers in the 10-county region. Employment counts are a snapshot in time and subject to change. Tinker AFB with its more than 26,000 employees remains the centerpiece of the aerospace sector in the Greater OKC region. The FAA Center is the second largest with more than 5,150 workers. These two large public sector facilities have operated in the region for decades and continue to serve as a catalyst for much of the continued private sector aerospace growth in the region. Boeing is the largest private sector aerospace employer in the Greater OKC region with more than 3,600 employees.
Figure 6. 25 Largest Greater OKC Region Aerospace Employers Rank Employer Employment 1 Tinker Air Force Base 26,029 2 FAA Mike Monroney Aeronautical Center 5,159 3 Boeing Company 3,660 4 Oklahoma Air National Guard 1,235 5 Northrop Grumman 807 6 CACI 400 7 Southwest Airlines Reservations 360 8 AAR Airframe Maintenance 322 9 Field Aerospace 280 10 Meta Special Aerospace 225 11 Pratt & Whitney 220 12 Electro Enterprises Inc. 200 12 Serco 200 14 Booz Allen Hamilton 170 15 ASCO Aerospace USA LLC 160 16 Western Flyer Express Inc. 150 17 Long Wave Inc. 149 18 Olympic Security Svc. 145 19 Advancia Corp. 130 20 KBR 103 21 Express Jet 100 22 Aerobraze Engineered Tech 90 23 Aero Components Inc. 80 24 Frontier Electronic Systems 80 25 ABM Parking Svc. 75 25 Capital Aviation 75
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Greater OKC Region Aerospace Industry – 2020
The Oklahoma Air National Guard is the fourth largest aerospace-related employer with 1,235 personnel, including more than 800 part-time Guardsmen. Another traditional aerospace contractor, Northrop Grumman, has the fifth largest workforce with more than 800 workers in the region. Other mid-size private sector firms employing 200 or more aerospace workers include CACI (400) Southwest Airlines Reservation Center (360), AAR Airframe Maintenance (322), Field Aerospace (280), Meta Special Aerospace (225), Pratt & Whitney (220), Electro Enterprises (200) and Serco (200). Tinker AFB In fiscal year 2019, Tinker AFB was the largest single-site employer in Oklahoma with a workforce that fluctuated between 26,000 and 27,000 workers. Base personnel represent a unique mix of active duty (~20%) and reserve military personnel (~5%), permanent federal civilian employees (~66%) and civilian contract workers (~9%). The labor force at Tinker AFB represents the largest single concentration of aerospace-related employment in the Greater Oklahoma City region, as well as a large share of total aerospace-related employment statewide. Tinker AFB is home to over 40 major aerospace-related functions and units, including weapon system sustainment, life cycle management of weapon systems and operational flying activities. The following provides examples of several key units: Air Force Sustainment Center (AFSC) Tinker AFB is home to one of three sustainment complexes that are a part of the Air Force Sustainment Center (AFSC). The AFSC is headquartered at Tinker AFB and is tasked with maintaining weapon system readiness for air warfare. AFSC services include weapon depot maintenance, supply chain management and installation support. The AFSC provides critical sustainment for the Air Force's most sophisticated weapons systems, including A-10 Thunderbolt II, AC-130, B-1 Lancer, B-52 Stratofortress, C-5 Galaxy, C-17 Globemaster III, C-130 Hercules, E-3 Sentry, E-6 Mercury, E-8 Joint STARS, EC-130, F-15 Eagle, F-16 Falcon, F-22 Raptor, HC-130, HH-60 Pave Hawk, ICBM, KC-135 Stratotanker, MC-130, MH-53 Pave Low, RQ-4 Global Hawk, U-2 Dragon Lady and UH-1 Iroquois aircraft as well as a wide range of aircraft engines and component parts. OC-ALC. The Oklahoma City Air Logistics Complex (OC-ALC) is the largest operating component of the base.8 The Complex performs programmed depot maintenance and modifications on KC-46, KC-135, B-1B, B-52, E-3 and Navy E-6 aircraft as well as maintenance, repair and overhaul for F100, F101, F108, F110, F117, F118, F119, F135 and TF33 engines and a wide variety of commodities for the Air Force, Navy, Marine Corps and foreign military sales. The Complex is also responsible for the development and sustainment of a diverse portfolio of mission-critical software for the Air Force and other customers, as well as worldwide aircraft battle damage repair capability for multiple weapon systems. The Oklahoma City Air Logistics Complex is comprised of five major operating groups. 1. The 76th Aircraft Maintenance Group (AMXG) performs depot maintenance on B-1 Lancer, B-52 Stratofortress, KC-135 Stratotanker, E-3 Sentry (AWACS), E-6 Mercury (Navy) and special mission fleet aircraft. The 76th AMXG performs all facets of depot maintenance, including full overhaul maintenance, FAA certified aircraft repairs, engineering services, aircraft modifications, depaint and paint services, flight testing and expeditionary depot repair teams. The group is currently preparing for the Air Force’s next- generation tanker, the KC-46 Pegasus. 16
Greater OKC Region Aerospace Industry – 2020
2. The 76th Commodities Maintenance Group directs, manages and operates depot-level maintenance facilities in the repair and overhaul of Air Force, Navy and Foreign Military Sales aircraft and engine parts to serviceable condition. The group's portfolio includes the A-10, B-1, B-2, B-52, C-5, C-17, C-130, C-135, C-141, E-3, F-4, F-5, F-15, F-16, F-22, MQ-1, MQ-9 and T-38 weapons systems. The group also serves as the Air Force Technology Repair Center for air and fuel accessories, constant speed drives and oxygen-related components. 3. The 76th Maintenance Support Group is responsible for maintaining one of DoD's largest industrial complexes on a 24/7 basis. It keeps the buildings, hangars, machines and equipment running so the depot can meet the warfighters' requirements. Structures range from World War II era buildings and hangars to state-of-the-art software and engine maintenance facilities and equipment. The group services include physical plant management, metrology, physical science laboratories, tools management, environmental oversight and long-range facility planning. 4. The 76th Propulsion Maintenance Group is the DoD’s foremost engine repair and overhaul center. It sustains most of the bomber, tanker, fighter and special mission aircraft engines in the Air Force, as well as some Navy and Foreign Military Sales engines. The group performs repairs on engines and major engine assemblies for the F100, F101, F107, F108, F110, F117, F118, F119, F137 and TF33. 5. The 76th Software Engineering Group provides a range of software and systems engineering solutions. As part of the Air Force Sustainment Center Software Enterprise, the group provides the DoD with capabilities in operational flight programs, mission planning systems, space systems, ground-based radar, weapons support, mission support, jet engine testing, training and simulation systems and diagnostics and repair.
448th SCMW. The 448th Supply Chain Management Wing (SCMW) is headquartered at Tinker AFB and provides the planning and execution of depot-level repairable and consumable spare parts to sustain Air Force depot operations and more than 5,000 operational aircraft and 16,000 engines across the globe. The wing also provides spare parts to sustain the Intercontinental Ballistic Missile capability, a wide range of support equipment and Space and C3I systems. The 448th SCMW is a ‘virtual’ wing that operates remotely within three different time zones. The wing consists of civilian and military personnel dispersed at Tinker AFB (Oklahoma), Robins AFB (Georgia) and Hill AFB (Utah). 72nd Air Base Wing. The 72nd Air Base Wing provides mission support, civil engineering, medical, airfield operations, command post, explosive ordnance disposal, public affairs, equal opportunity and alternate dispute resolution and financial management services to active-duty military personnel, Guard and Reserve components, civilians, retirees and dependents. The Air Force Life Cycle Management Center (AFLCMC) Propulsion Directorate The AFLCMC manages more than 22,000 engines installed on over 30 different weapon systems in support of the U.S. Air Force and 50 international partners. It provides life cycle management for engines to include system development, acquisition, fielding, sustainment and modernization to ensure warfighter readiness, affordability, safety and effectiveness needs are met.
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Greater OKC Region Aerospace Industry – 2020
Other AFLCMC Other Tinker AFB AFLCMC organizations provide life cycle management for the E-3 AWACS, B- 1 Lancer, B-52 Stratofortress, KC-10 Extender, KC-135 Stratotanker and KC-46 Pegasus aircraft and the Presidential and Executive fleet. Operational Wings 507th Air Refueling Wing The 507th is a reserve component flying unit of the Air Force based at Tinker AFB. The wing primarily flies the KC-135 Stratotanker which provides the core refueling capability for the Air Force and aerial refueling support to the Navy, Marine Corps and allied nations. 552nd Air Control Wing (AWACS) The 552nd files the Boeing E-3C Airborne Warning & Control System (AWACS) aircraft. AWACS are special mission aircraft equipped with a powerful airborne search and track radar system using a rotating dome mounted above the top of the rear fuselage. Navy Strategic Communications Wing ONE and Task Group 114.2 Strategic Communications Wing ONE consists of three Navy squadrons and a Wing staff that provide maintenance, security, operations, administration, training and logistic support for the E-6B Mercury aircraft fleet. The Wing is comprised of approximately 1,200 military personnel, 65 permanent civilian federal employees and a limited number of civilian contract personnel. Other The 38th Cyberspace Engineering Installation Group The 38th Cyberspace Engineering Installation Group, headquartered at Tinker Air Force Base, is the Air Force's premier engineering and installation group for the cyberspace domain. Tinker AFB is home to several components of the Group including the 38th Engineering Squadron and 38th Operations Support Squadron, along with serving as an operating location for the 38th Contracting Squadron at Joint Base San Antonio-Lackland. Defense Logistics Agency The Defense Logistics Agency is responsible for retail order management, planning, material management and storage and distribution of all items ordered through the depot supply account to support the Oklahoma City Air Logistics Complex repair facility for aircraft, engine and commodities. Defense Information Systems Agency The Defense Information Systems Agency (DISA) Defense Enterprise Computing Center, Oklahoma City is a combat support agency of the Department of Defense committed to providing enterprise-level information technology support and service capabilities to its mission partners. The agency provides, operates and assures command and control and information-sharing capabilities and a globally accessible enterprise information infrastructure in direct support to joint warfighters, national-level leaders and other mission and coalition partners across the full spectrum of military operations. DISA is focused on providing enterprise services, unified capabilities and mobility 18
Greater OKC Region Aerospace Industry – 2020
options to support DOD operations anywhere, anytime. Through enterprise security architectures, smart computing options, and other leading-edge IT opportunities, DISA is the premier provider of IT services to meet the nation's defense needs. Air Force Military Personnel. Of the 6,480 military personnel at Tinker AFB, 5,104 are active duty with the remaining 1,476 either Air Force Reserve or Air National Guard personnel. Military personnel at the base are primarily affiliated with the Air Force, but uniformed personnel from other services are represented on the base. Only about 12.5% (810) of military personnel are reported as living on base, with most personnel and their families residing in surrounding communities. The 6,480 military personnel stationed at Tinker AFB along with their 4,660 dependents comprise a total of 11,140 military personnel and dependents. Officers. Approximately 1,100 military personnel at the base are Air Force officers who work at high skill specialties that are largely aerospace related. Of the officers, approximately 250 are Pilots and Navigators, 500 are Air Battle Managers and Field Operations, 10 are Wing Commanders or Commanders and 10 are Aerospace Medicine. The remaining officers perform a range of specialties including engineering, logistics, cyber operations, intelligence, weather and others. Enlisted. The nearly 3,400 enlisted Air Force personnel stationed at Tinker AFB primarily support the aviation and logistics mission of the base and have numerous high-skill specialties. Approximately 1,200 enlisted personnel are engaged directly in aerospace maintenance and 650 in air crew operations. Other specialties include command control systems (150), mission support (100), flight equipment (40), intelligence (40), material management (60), aerospace medicine (40) and engineering (20). Civilian Air Force Personnel. The mission of Tinker AFB would not be possible without the numerous highly skilled civilians engaged in aerospace-related work at the base. Figure 7 provides a detailed breakdown of employment by occupation for permanent, appropriated fund civilian Air Force personnel at the base at five-year intervals from 2005 to 2020.9 Figure 7 also includes the most recent hiring outlook for high-demand occupations at the base through fiscal years 2021 and 2022. In fiscal year 2020, a reported 17,438 permanent civilian Air Force jobs were located at Tinker AFB. Slightly more than half (55%) of the civilian jobs are white-collar occupations with the remainder trade and craft positions (45%). White-Collar Occupations. By major type, there are a reported 9,565 (55%) white-collar workers among permanent civilian Air Force personnel at the base. Numerous high-skill, white-collar occupations directly related to aerospace are held by civilians at the base, including specialties in engineering and architecture (2,250 jobs); information technology (464 jobs); mathematics and statistics (300 jobs); quality assurance, inspection, and grading (228); and physical sciences (55 jobs). Other more general white collar specialties include business and industry (1,434), accounting and budget (369), and supply (379). Trade and Craft Occupations. Civilians filled a reported 7,873 trade and craft jobs at Tinker AFB in fiscal year 2020, with a large share of these workers holding traditional aerospace occupations. Approximately 6,000 jobs are in metal work (1,987 jobs), aircraft overhaul (1,584 jobs), engine overhaul (636 jobs), electrical installation and maintenance (464 jobs), metal processing (429 jobs), painting (322), electronic equipment installation and equipment maintenance (403 jobs), machine tool work (357 jobs), fluid systems
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Greater OKC Region Aerospace Industry – 2020 maintenance (340 jobs), industrial equipment maintenance (213), pliable materials work (104) and industrial equipment operation (13).
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Figure 7. Air Force Permanent Civilian Jobs by Occupation & High Demand – Tinker AFB Employment High Demand
by Fiscal Year Occupations OPM Federal Occupations 2005 2010 2015 2020 FY21/FY22
Total Permanent Civilian Employment 13,562 14,200 13,888 17,438 2,614
White Collar Occupations 7,533 7,454 7,492 9,565 1,510 0 Miscellaneous Occupations 170 218 213 266 74 1 Social Science, Psychology, & Welfare 59 65 46 79 32 2 Human Resources Management 156 150 128 172 3 General Admin, Clerical, & Office Services 1,952 2,073 1,945 2,410 255 4 Biological Sciences 2 2 2 4 5 Accounting and Budget 250 278 278 369 44 6 Medical, Hosp., Dental, & Public Health 86 118 119 175 24 8 Engineering and Architecture 1,740 1,776 1,963 2,249 518 9 Legal and Kindred 26 22 22 28 6 10 Information and Arts 51 45 36 46 11 Business and Industry 953 964 1,202 1,434 167 13 Physical Sciences 42 36 35 55 14 Library and Archives 1 1 0 0 15 Mathematics and Statistics 70 99 132 300 154 16 Equipment, Facilities, and Services 392 417 403 491 22 17 Education 86 78 88 161 22 18 Investigation 7 3 7 7 19 Quality Assur., Inspection, & Grading 163 171 183 228 20 Supply 910 562 334 379 36 21 Transportation 117 112 89 248 22 Information Technology 300 264 267 464 156
Trade, Craft, or Labor Occupations 6,029 6,746 6,396 7,873 1,104 26 Electronic Equip Installation & Maintenance 369 364 352 403 28 28 Electrical Installation and Maintenance 314 445 393 464 32 31 Fabric and Leather Work 26 29 38 35 33 Instrument Work 46 43 32 39 34 Machine Tool Work 380 365 324 357 52 35 General Services and Support Work 106 205 132 12 37 Metal Processing 599 463 380 429 37 38 Metal Work 1,102 1,546 1,539 1,987 520 41 Painting and Paperhanging 292 371 369 322 20 42 Plumbing and Pipefitting 19 22 21 27 43 Pliable Materials Work 98 96 84 104 46 Wood Work 12 11 12 25 47 General Maintenance & Operations Work 1 1 2 14 48 General Equipment Maintenance 27 32 26 44 52 Miscellaneous Occupations 5 7 9 11 53 Industrial Equipment Maintenance 138 140 135 213 25 54 Industrial Equipment Operation 27 22 12 13 57 Transportation/Mobile Equip Operations 66 61 62 74 58 Transportation/Mobile Equip Maintenance 3 0 0 24 66 Armament Work 25 39 28 53 69 Warehousing and Stock Handling 178 237 268 456 87 70 Packing and Processing 143 184 166 207 16 82 Fluid Systems Maintenance 441 377 301 340 30 86 Engine Overhaul 631 659 529 636 14 88 Aircraft Overhaul 981 1,027 1,182 1,584 243
Source: U.S. Office of Personnel Management - FedScope (pom.gov) and Tinker AFB FY2021/2022 Hiring Forecast 21
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Related trade and craft occupations include warehousing and stock handling (456 jobs), industrial equipment maintenance (213) and packing and processing (207 jobs). Civilian Employment Growth. Significant growth occurred in the number of civilian personnel at Tinker AFB the past five years. The number of permanent civilian personnel increased by 3,550 (26%) between 2015 and 2020. The number of both white collar and trade and craft occupations increased sharply since 2015. An estimated 2,073 white collar (27.7% gain) and 1,477 trade and craft (22.5% gain) civilian positions were added in the past five years. The largest job gains among white-collar occupations include general administrative and clerical (465 jobs), engineering and architecture (286 jobs) and information technology (197 jobs). Large job gains among trade and craft specialties since 2015 are directly tied to the aircraft maintenance, repair and overhaul mission of the base – metalwork (448 jobs), aircraft overhaul (402 jobs), engine overhaul (107 jobs), industrial equipment maintenance (78 jobs), electrical installation and maintenance (71 jobs), electronic equipment installation and maintenance (51 jobs), metal processing (49 jobs) and fluid systems maintenance (39 jobs). Tinker AFB Hiring Outlook and High Demand Occupations.10 Future job expansion is anticipated at Tinker AFB in both the near- and long-term. Sources of expected new hires at the base include normal turnover, expanded MRO activities at the base and other factors. KC-46 Pegasus. The recently added maintenance program for the new Boeing KC-46 Pegasus air refueling tanker is expected to contribute to future new hiring.11 The construction of a new 156-acre campus on land acquired from Burlington Northern Santa Fe will eventually house 14 hangars for maintenance, repair and modification operations on the new tanker. The first hangar was completed in October 2019, and a second hanger is largely complete and scheduled to be turned over to the Air Force in late 2020. The planes will be based primarily at McConnell Air Force Base in Wichita, Kan. Training for pilots and fuel boom operators is underway at Altus Air Force Base in Oklahoma. High Demand Occupations. Projected hiring by the Civilian Personnel Office at the base for fiscal years 2021 and 2022 totals more than 2,600 positions in high-demand occupations (1,510 white collar and 1,104 blue collar). A breakdown of the high-demand jobs by occupation is detailed along with current employment levels in Figure 7. The pace of new hiring for high-demand positions at the base is projected to remain steady at approximately 325 new workers per quarter over the next two fiscal years. Approximately two-thirds (1,627) of the high-demand positions are classified as journeyman and the remaining one-third as developmental. Journeyman positions assume an individual would be work-ready and need little to no assistance in carrying out the work being performed. Developmental (DEV) positions assume individuals need additional training and/or assistance to be able to carry out the work being performed. FAA – Mike Monroney Aeronautical Center The FAA Center in Oklahoma City serves as the centralized service and support facility for the FAA and Department of Transportation (DOT). The FAA Center is a unique aerospace asset that plays a key role in national aviation policy, airport maintenance, air travel safety and aviation education. FAA Activities. The center is a combination of diverse business units with operations ranging across most areas of the federal aviation transportation system. Several non-appropriated fund FAA lines of business
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Greater OKC Region Aerospace Industry – 2020 have operations located at the center providing logistics functions, including maintenance, repair and overhaul of FAA equipment; registry of aircraft; medical certification for pilots; navigational charting for flight paths; as well as aviation medical and human factors research. Major groups of services provided at the FAA Center include technical training for air traffic controllers, technicians and engineers; financial, information systems security, technology and business services solutions for customers across the DOT and federal government; and facility management services to all tenants. Figure 8. Permanent Civilian Jobs – FAA Center The FAA Center provides several unique OPM Federal Occupational Classification Positions services within the FAA, including: White Collar Occupations 3,006 0 Miscellaneous Occupations Group 11 1. FAA Academy – serves as the primary 1 Social Science, Psychology, and Welfare Group 23 provider of technical training for the 2 Human Resources Management Group 58 agency and the largest training facility 3 General Admin, Clerical, & Office Serv Group 629 within the DOT (76,000 total students 4 Biological Sciences Group 7 attended the Academy in fiscal year 5 Accounting and Budget Group 350 2019); 6 Medical, Hospital, Dental, & Public Health Group 31 7 Engineering and Architecture Group 626 2. FAA Logistics Center (FAALC) – 8 Legal and Kindred Group 120 provides consulting, engineering, repair, 10 Information and Arts Group 10 Business and Industry Group 64 distribution, and technical support for 11 13 Physical Sciences Group 157 U.S. air traffic control systems; 14 Library and Archives Group 2 3. Enterprise Services Center (ESC) – 15 Mathematics and Statistics Group 25 16 Equipment, Facilities, and Services Group 14 serves as one of four OMB-designated 17 Education Group 43 Shared Service Providers for financial 18 Investigation Group 86 services within the federal sector; and 19 Quality Assur., Inspection, & Grading Group 23 20 Supply Group 11 4. Civil Aerospace Medical Institute 21 Transportation Group 356 (CAMI) – the medical certification, 22 Information Technology 358 research, education, and occupational Trade, Craft, or Labor Jobs 58 health wing of the FAA’s Office of 31 Fabric and Leather Work 2 Aerospace Medicine. The Institute 35 General Services & Support Work Family 3 studies the factors that influence human 41 Painting and Paperhanging Family 4 performance and safety in the aerospace 43 Pliable Materials Work Family 2 environment. 46 Wood Work Family 3 69 Warehousing & Stock Handling Family 40 A small number of non-FAA tenants are also 70 Packing and Processing Family 5 located at the center, including the Air Force, All Occupations 3,064 Coast Guard, Transportation Safety Institute, Notes: Includes only appropriated fund permanent civilian employees in FY2019 Office of Inspector General and National Source: FAA Mike Monroney Center and Office of Personnel Management Aeronautics and Space Administration
(NASA). Budget and Operations. The large economic role of the FAA Center is traced to its total operating budget of $1.1 billion in fiscal year 2019. The expansive campus is located on 1,057 acres on the grounds of Will Rogers World Airport and is comprised of 134 buildings with over 3.3 million square feet of space. FAA has a long-term lease with the City of Oklahoma City valued at approximately $20 million annually for use of the airport property.12 23
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FAA Center Employment. The FAA Center was home to a reported 5,159 federal civilian employees and contractors in fiscal year 2019. The workforce consists of 3,064 appropriated fund federal civilian employees, 2,062 contract workers and 33 employees at tenant organizations. The FAA continues to maintain a very highly skilled workforce in Oklahoma City. The mix of occupations among permanent civilian employees at the center is detailed in Figure 8.13 Approximately 98% of the jobs are white collar and most require professional or other specialized training. Employment is highly concentrated in three key occupational groups. The largest includes 629 jobs in general administrative, clerical and office services occupations. These jobs reflect the administrative nature of much of the activity at the center but have decreased substantially in number since the 2015 aerospace report. The second largest specialty area includes 626 engineering and architecture positions. The large pool of FAA engineers based in Oklahoma City provides scheduled and emergency technical support services to FAA customers nationwide. The 358 workers in the information technology group comprise the third largest specialty area. Other large specialty occupation groups include transportation (356), accounting and budget (350), legal (120), physical sciences (157), investigation (86) and business and industry (64). The Boeing Company The ongoing expansion of Boeing in Oklahoma City is possibly the most important development in the region’s aerospace sector in recent years. Boeing is the second largest aerospace and defense contractor in the U.S. and is the largest federal contractor in the state. Boeing is also now the largest private aerospace employer in the region with over 3,660 employees. Employees at Boeing in Oklahoma City are industry leaders in large aircraft sustainment and modernization, providing products and services for government customers, both U.S. and international, including engineering, software, logistics services and aircraft maintenance support. Boeing's history in Oklahoma dates to 1953 when the company opened an office with 10 employees adjacent to Tinker Air Force Base.14 By 2010, Boeing had built a substantial presence with a reported 700 workers in Oklahoma City. Boeing announced in 2010 that it planned to relocate its B-1 program and C-130 avionics modernization program from Long Beach, Calif., to Oklahoma City. The move involved 550 workers providing engineering, contractor-logistics services and field support for military customers. Boeing’s expansion in Oklahoma City has continued over the past decade. The firm now operates an engineering center of excellence out of three buildings constructed in 2007, 2011 and 2012 near Tinker AFB with a total of more than 530,000 square feet.15 Oklahoma is now the 8th largest operating hub by employment for Boeing in the U.S.16 Washington remains the dominant hub, with Missouri and California the second and third largest locations. Oklahoma trails key aerospace hubs in South Carolina, Texas, Arizona and Pennsylvania. However, Oklahoma has now amassed greater Boeing employment than several leading aerospace hubs including Alabama, Colorado, Virginia, Florida, Oregon, Illinois and Georgia.
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Oklahoma Air National Guard Oklahoma’s National Guard – composed of the Army National Guard and the Air National Guard – traces its roots to 1890 before to statehood. Oklahoma Army and Air National Guard units have a unique dual mission that consists of both Federal and State responsibilities.17 The Oklahoma Air National Guard (OKANG) serves as the air component for the State’s militia and remains a key component of the Greater Oklahoma City aerospace sector. The OKANG consists of two Wings across the state – the 137th Special Operations Wing (SOW) in Oklahoma City and the 138th Fighter Wing in Tulsa, both headquartered with the Oklahoma National Guard Joint Force Headquarters, also in Oklahoma City. The 137th SOW is located at Will Rogers Air National Guard Base (ANGB) just west of Will Rogers World Airport. The OKANG in Oklahoma City operated with a budget of approximately $118 million in fiscal year 2020. Payroll comprises the largest portion of the budget, reaching $54 million in fiscal year 2020. Additional operational expenses totaled $26 million along with three formal training units that accounted for $10.3 million annually. The 137th SOW specifically attracts substantial federal funding to the region. In addition to operational expenditures, contract funding of approximately $28 million supports aircraft maintenance, flight evaluations, Battlefield Airmen simulator management, flying and ground support. These activities facilitate diverse special operations training requirements locally, as well as for DoD special operators throughout U.S. Special Operations Command. The highly skilled workforce at Will Rogers ANGB comprises a broad range of occupational skills including flight operations, intelligence, aeromedical evacuation, logistics, engineering, aircraft maintenance, communications, as well as many other support agencies. The OKANG reports total employment of 1,235 members for fiscal year 2020, consisting of 174 full-time active Guard and Reserve personnel, 176 full-time, dual-status federal employees with required ANG membership, 22 state employees and 863 part-time drill status Guardsman. Additional personnel are associated with a wide range of supporting contracts. Most full-time personnel reside in the Greater Oklahoma City region while part-time Guardsmen reside across the state – with some even residing regionally in nearby states. Multiple permanent and tenant organizations are based at OKANG facilities in Oklahoma City, including:
• The 137th Special Operations Wing (137th SOW) is a U.S. Air Force flying unit aligned under Air Force Special Operations Command and the Air National Guard. The wing supports worldwide missions, global special operations, and deployments through Air Force Special Operations Command, Air Combat Command (ACC), Air Mobility Command (AMC), U.S. Special Operations Command, and the 45th Infantry Brigade Combat Team (IBCT). The 137th SOW is also an internationally recognized and accredited training facility with formal in-house training units that produce highly trained Airmen to support manned intelligence, surveillance and reconnaissance (ISR), close air support, agile combat support, cyber and aeromedical evacuation. The 137th SOW is the home of the MC-12W, a manned airborne ISR platform with a 4-person crew that includes a pilot, co- pilot, combat systems officer and a tactical systems operator.
• The 137th Special Operations Group (137th SOG) directs the training and deployment of the MC- 12W ISR aircraft and crews, two intelligence squadrons, aeromedical evacuation, air support operations and advanced Battlefield Airmen training courses. The 137th SOG is home to both the
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146th Air Support Operations Squadron (146th ASOS) and the 137th Aeromedical Evacuation Squadron (137th AES). The 146th ASOS provides highly trained Tactical Air Control Party (TACP) specialists and air liaison officers who advise battlefield commanders on the best use of airpower, establishes and maintains command and control communications and provides controlled attack guidance for U.S. and coalition fixed-wing and rotary-wing aircraft. The 146th ASOS maintains a long-standing partnership with the 45th IBCT, which has a large footprint across the state of Oklahoma. The 137th AES provides time sensitive, mission critical en route care to patients to and between medical treatment facilities. The 137th AES is one of nine AES squadrons in the ANG and, along with the Air Force Reserves aeromedical evacuation (AE) squadrons, account for 70% of global AE missions. The 137th SOG has implemented and continues to develop international training courses as part of a broader national strategy to support NATO alliances. The 137th Combat Training Flight (137th CTF) leads courses in Initial Combat Skills Training for TACP specialists and the Joint Terminal Attack Controller Qualification Course (JTAC-QC), one of only two locations to host this training across the entire Air Force enterprise. In 2021, the 137th CTF welcomed its first international student from a partner NATO nation.
• The 137th Special Operations Medical Group (137th SOMDG) provides personnel support for pre- deployment, post-deployment and in-garrison medical requirements at the 137th SOW. The Medical Group provides services in Flight Medicine, Dental, Optometry, Bio-environmental, Nursing Services, and Laboratory Services. The 137th SOMDG made significant contributions to the state at the beginning of the COVID-19 pandemic.
• The 137th Special Operations Mission Support Group (137th SOMSG) provides vital day-to-day support for the personnel and infrastructure at Will Rogers ANGB. The 137th SOMSG maintains and improves base infrastructure through civil engineering, provides installation defense through security forces, communications, logistics and readiness and personnel force support services. The 205th Engineering Installation Squadron was a former tenant at Will Rogers ANGB and is now a part of the SOMSG. The 205th is one of 16 engineering and installation squadrons in the Air Force, 15 of which are part of the Air National Guard. The 205th mobilizes to deploy resources to design, engineer and install cyber and C4I systems infrastructure throughout the world.
• The 306th Intelligence Squadron (306th IS) is an ACC active-duty tenant unit at Will Rogers ANGB. The 306th IS trains and qualifies Airborne Cryptologic Operators to execute special operations missions worldwide. The colocation of the 306th with the 137th SOW puts intelligence operators in-training at the same location as a special operations ISR platform. When added to the 137th SOW’s other capabilities, Will Rogers ANGB Airmen and others trained at the base provide battlefield commanders with a full-spectrum toolkit ranging from intelligence gathering to strike capabilities. Along with supporting the nation’s domestic and international defense missions, and assisting during times of disaster and civil unrest, 137th SOW Airmen also cooperate with federal, state and local governments in a range of activities including, but not limited to, security operations, border patrol, construction efforts, drug interdiction and firefighting. Guardsmen also regularly engage in specialized training missions overseas and with civilian authorities domestically.
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Tinker Business and Industrial Park A unique asset serving the region’s aerospace firms is the Tinker Business and Industrial Park (TBIP), a sector-specific business park located in Midwest City adjacent to Tinker Air Force Base. The Park was established in 1989 with Boeing as its anchor tenant and now represents the largest concentration of private aerospace firms and technology companies in the region. The park spans two campuses and is located within minutes of the Oklahoma City Air Logistics Complex at the Base. Tenants represent a cluster of more than 40 firms ranging from private companies, public agencies, tribal entities, universities, laboratories and education and training providers. Top aerospace and defense contractors such as Pratt & Whitney, Lockheed Martin, Rockwell Collins, GE Aviation, Choctaw Defense, Rolls-Royce and others utilize space at TBIP. TBIP is also home to the Aerospace Collaboration & Partnership Center (ACPC), offering uniquely structured office space to aerospace start-ups, small businesses or companies with a small Oklahoma footprint. Space is structured for small numbers of employees on a short, medium or long-term basis at a flat rate per person. TBIP is currently certified as a U.S. Small Business Administration (SBA) HUBZone due to its location within a qualified Census tract.18 HUBZone status allows limited competition for certain contracts to businesses in these historically underutilized business zones. It also provides preferential consideration to HUBZone businesses in contracts with full and open competition.
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V. Greater OKC Area Aerospace Occupation Profile Future growth in the Greater Oklahoma City aerospace industry depends upon the continued availability of a highly-skilled workforce. The wage cost in the region relative to competing aerospace markets similarly plays a key role in the relative competitiveness of the region in capturing future industry growth. This section of the report provides a detailed view of the existing aerospace workforce in the region. Data are provided on employment levels and average annual wage rates by detailed occupation covering both private sector and federal civilian government workers in aerospace-related jobs. Figures 9 and 10 provide a state-level comparison of employment levels and wage rates across several key aerospace occupations. Aerospace Employment Comparison. Figure 9 examines employment levels and wage rates for four key aerospace occupations with varying skill requirements. The large, top-tier aerospace states of California, Texas, Washington, Georgia and Florida continue to lead in the number of employees in these categories as well as in most other aerospace-related occupations. These states tend to have both significant private aerospace manufacturing infrastructure and large-scale federal and military installations. Nevertheless, Oklahoma continues to rank highly in the number of employees in these four key aerospace occupations. The state currently ranks 13th among the states with 1,660 aerospace engineers. This is roughly double the number reported in the 2015 report, pushing the state up from 18th to 13th. The number of aerospace engineers in a state is closely related to the level of research and development, manufacturing and space-related activity taking place. The Oklahoma City metropolitan area is home to a reported 790 of the state’s 1,660 aerospace engineers, with recent gains led by Boeing’s ongoing expansion in the region. Oklahoma’s 90 aerospace engineering and operations technicians rank 20th among the states. Aerospace engineering and operations technicians are most prevalent among states with large private aerospace manufacturing sites.
Figure 9. Rankings of Key Aerospace Industry Employment by Occupation & State (2019) Aerospace Engineering & Aircraft Mechanics and Aerospace Engineers Operations Technicians Service Technicians Avionics Technicians (SOC 17-2011) (SOC 17-3021) (SOC 49-3011) (SOC 49-2091) Annual Annual Annual Annual State Jobs Wages State Jobs Wages State Jobs Wages State Jobs Wages 1 California 11,440 125,000 1 California 2,220 68,750 1 Texas 16,480 66,870 1 Washington 3,180 83,940 2 Washington* 6,680 137,550 2 Florida 1,520 58,830 2 California 13,800 71,890 2 Texas 2,970 64,110 3 Texas 6,140 126,740 3 Texas 1,380 66,350 3 Florida 13,490 65,350 3 Florida 2,260 58,000 4 Alabama 4,070 119,890 4 Ohio 960 67,420 4 Georgia* 7,490 66,540 4 California 1,620 75,740 5 Ohio 3,810 116,540 5 Arizona 920 64,100 5 Washington 6,070 69,430 5 Georgia 1,490 63,830 6 Florida 3,070 107,990 6 Georgia* 850 53,010 6 Arizona 4,740 65,700 6 Kansas 970 62,590 7 Maryland 2,810 135,400 7 Kansas 490 68,610 7 Oklahoma* 4,730 56,520 7 Alabama* 960 64,320 8 Kansas 2,450 106,300 8 Alabama 460 63,520 8 Illinois 4,610 68,700 8 Arizona 610 60,610 9 Georgia 2,430 112,670 9 Washington 430 97,130 9 North Carolina 4,400 62,740 9 Maryland 610 74,100 10 Colorado 2,230 125,070 10 Colorado 280 92,600 10 Ohio 4,150 63,580 10 Oklahoma* 540 55,760 11 New Jersey 2,100 116,740 11 New York 280 67,190 11 Michigan 3,520 57,410 11 Illinois 440 50,020 12 Virginia 1,830 123,290 12 New Jersey* 270 71,320 12 New York 3,410 71,360 12 New Jersey 430 70,230 13 Oklahoma 1,660 98,450 13 Maryland 230 76,670 13 Alabama* 3,150 64,230 13 North Carolina 370 55,130 14 Arizona 1,580 112,140 14 Indiana 220 72,410 14 Pennsylvania 2,650 72,340 14 Colorado 360 59,110 15 Connecticut 1,450 109,630 15 Virginia 200 76,650 15 Virginia 2,440 68,260 15 Nevada 310 64,790 16 Missouri 1,190 110,560 16 New Mexico 180 68,650 16 Maryland 2,370 74,060 16 Virginia 300 63,690 17 Utah 710 103,930 17 Tennessee 160 69,850 17 Kentucky 2,260 69,690 17 Louisiana 290 65,370 18 Pennsylvania 680 112,840 18 Utah 130 64,000 18 New Jersey 2,150 75,120 18 Missouri 280 73,780 19 New Mexico 610 102,430 19 Pennsylvania* 110 67,370 19 Nevada 2,010 79,010 19 Oregon 220 70,740 20 North Carolina 530 93,110 20 Oklahoma 90 70,630 20 Colorado 1,920 74,280 20 Pennsylvania 210 69,540
* Values are estimates of data suppressed by BLS. Source: Bureau of Labor Statistics (BLS) Occupational Employment Statistics 28
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Oklahoma ranks 7th in the employment of aircraft mechanics and service technicians with 3,570 workers, and 10th in avionics technicians with 540 workers. The higher rankings for Oklahoma on both occupations reflect the relatively larger role they play in aircraft MRO activity, one of the state’s and region’s strengths in aerospace. The Oklahoma City metro area is home to 2,350 aircraft mechanics and service technicians, approximately half the state total, and 360 avionics technicians, approximately two-thirds of the state total. These two occupations better reflect the overall presence of military and civilian aviation across the state and in the Greater Oklahoma City region. Aerospace Wage Comparison. In general, wages in Oklahoma for most aerospace occupations are among the lowest in the major aerospace states and reflect the relatively low overall cost-of-living in the state. Figure 10 provides an additional comparison of the overall wage structure for an expanded set of aerospace-related occupations in Oklahoma and eight other traditional aerospace states. Oklahoma’s aerospace wages are well below the western states of California and Washington for all reported occupations and below the neighboring states of Texas and Kansas across most occupations. Oklahoma’s aerospace wages are basically on par with Arizona and Florida, both of which are lower-cost- of-living Sun Belt states with more highly-developed aerospace sectors. The average wage of $98,450 for aerospace engineers in Oklahoma remains below the largest aerospace states. In the Oklahoma City metro area, aerospace engineers earned a reported average of $97,970 per year in 2019.19 The labor market for aircraft mechanics and service technicians is highly developed in Oklahoma but still has the lowest average annual wage ($56,520) among the comparison group. This was the case in the 2015 report as well. The average in the Oklahoma City metro area is slightly lower than the state at $52,880 annually. This reflects in part the military wages paid to active-duty military personnel included in the wage comparison. Oklahoma’s wages for support occupations such as electricians, machinists, engine assemblers and welders are more reflective of a national market for these occupations. Wages in Oklahoma are highly comparable to those paid in the eight comparison states. Wages in the Oklahoma City metro area for most of the occupations in Figure 10 are generally 5-15% above the respective statewide average for each occupation.
Figure 10. Average Annual Earnings by Aerospace-Related Occupation by State (2019) Occupation AL AZ CA CO FL KS OK TX WA Aerospace Engineer. & Operations Tech. $63,520 $64,100 $68,750 $92,600 $58,830 $68,610 $70,630 $66,350 $97,130 Aerospace Engineers 119,890 112,140 125,000 125,070 107,990 106,300 98,450 126,740 *138,770 Avionics Technicians *63,830 60,610 75,740 59,110 58,000 62,590 *54,190 64,110 83,940 Aircraft Mechanics & Service Tech. 64,230 65,700 71,890 74,280 65,350 59,110 56,520 66,870 69,430 Electricians 47,490 49,350 70,460 55,050 45,720 54,750 51,950 52,230 71,160 Machinists 45,350 48,180 48,360 47,880 42,800 42,690 43,840 46,420 53,830 Engine & Other Machine Assemblers 45,990 41,260 40,080 39,750 32,670 38,310 36,570 41,100 45,740 Welders, Cutters, Solderers, & Brazers 40,910 44,070 47,910 49,870 41,650 43,710 43,600 46,940 53,960
* Values are estimates of data suppressed by BLS. Source: Bureau of Labor Statistics (BLS) Occupational Employment Statistics
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Greater OKC Region Aerospace Industry – 2020
Profile of Greater OKC Region Key Aerospace Occupations Figure 11 provides a more detailed profile of several key occupations in the aerospace sector in the Greater Oklahoma City region. The employment estimates in this section reflect total employment in each key aerospace-related occupation, whether workers are employed directly in aerospace or other industries. This provides an overall assessment of the depth of the labor market for each key occupation needed by aerospace employers. The aerospace industry requires a diverse mix of workers with education requirements ranging from high school completion to a bachelor’s degree. Most aerospace occupations require little work experience in the industry. However, most occupations require significant on-the-job training, often over multiple years. Wages in most aerospace occupations in Oklahoma generally exceed the overall state average, with median hourly wages in aerospace generally above $20 per hour. The median hourly wage typically exceeds $40 per hour for engineers, air traffic controllers, pilots and software developers. Median wages are below $20 per hour in only a few key aerospace occupations, primarily air passenger airline services and some entry- level aircraft maintenance positions. Sixteen key aerospace occupations in Figure 11 have a current employment base in the Greater OKC region of more than 1,000 workers. All sixteen have added workers the past five years except machinists. Several of the sectors have added more than 500 workers the past five years including logisticians (+854 jobs); engineers–all others (+595 jobs); miscellaneous assemblers and fabricators (+583 jobs); software developers and software quality assurance (+574 jobs); welders, cutters, solderers, and brazers (+549 jobs); and inspectors, testers, sorters, samplers and weighers (+515 jobs). Other occupations with a significant expansion of workers the past five years include maintenance workers– machinery (+401 jobs); coating, painting and spraying machine operators (+350 jobs); and electrical, electronic and electromechanical assemblers (+204 jobs). The Greater Oklahoma City region has also greatly expanded the available supply of engineers since 2015. Additional engineering jobs by occupation include aerospace engineers (+260 jobs); electrical engineers (+214 jobs); industrial engineers (+124 jobs); mechanical engineers (+81 jobs); materials engineers (+36 jobs); and engineers–all others (+595 jobs). Approximately 1,900 workers in engineering occupations were added to the Greater Oklahoma City workforce between 2015 and 2020. The amount of annual hiring is generally related to the size of the existing workforce within each occupation. The seven largest aerospace occupations have very active labor markets, with all adding approximately 1,000 new hires or more in 2020. The industry faces the task of filling numerous openings and the replacement of a considerable number of existing workers in the near term. The seven largest aerospace occupations all had more than 250 job openings annually over the past five years. More than 500 job openings annually are found in miscellaneous assemblers and fabricators (598 jobs), welders, cutters, solderers, and brazers (519 jobs). These numbers do not necessarily account for the full demand or job openings associated with Tinker AFB.
30
Greater OKC Region Aerospace Industry – 2020
Figure 11. Labor Force Key Aerospace Sector Occupations – Greater OKC Region Median Typical Work SOC Employment Hourly Entry Level Experience Code Standard Occupational Classification (SOC) 2015 2020 Change %Chg. Earnings Education Required Typical On-The-Job Training 15-1256 Software Developers & Software Quality Assurance 3,826 4,383 574 16.1% $42.98 Bachelor's degree None None 51-2098 Miscellaneous Assemblers and Fabricators 3,634 4,177 583 16.5% $15.21 High school None Moderate-term on-the-job training 51-4121 Welders, Cutters, Solderers, and Brazers 3,062 3,669 549 17.5% $20.75 High school None Moderate-term on-the-job training 49-3011 Aircraft Mechanics and Service Technicians 2,685 2,726 66 2.6% $25.66 Postsec. nondegree None None 13-1081 Logisticians 1,752 2,651 854 52.9% $37.05 Bachelor's degree None None 47-2211 Sheet Metal Workers 2,485 2,588 86 3.8% $25.84 High school None Apprenticeship 51-9061 Inspectors, Testers, Sorters, Samplers, & Weighers 1,539 2,056 515 32.7% $22.03 High school None Moderate-term on-the-job training 49-9041 Industrial Machinery Mechanics 1,686 1,808 146 9.0% $24.61 High school None Long-term on-the-job training 17-2072 Electronics Engineers, Except Computer 1,368 1,382 13 1.0% $44.88 Bachelor's degree None None 17-2199 Engineers, All Other 741 1,357 595 86.9% $45.46 Bachelor's degree None None 51-4041 Machinists 1,768 1,278 -418 -24.1% $23.39 High school None Long-term on-the-job training 51-2028 Electrical, Electronic, and Electromech. Assemblers 1,024 1,243 204 20.4% $18.27 High school None Moderate-term on-the-job training 49-9043 Maintenance Workers, Machinery 819 1,212 401 46.9% $22.23 High school None Long-term on-the-job training 11-9041 Architectural and Engineering Managers 978 1,133 160 17.4% $67.83 Bachelor's degree 5+ years None 51-9124 Coating, Painting, & Spraying Machine Operators 730 1,096 350 47.9% $17.85 High school None Moderate-term on-the-job training 17-2141 Mechanical Engineers 995 1,077 81 8.4% $41.96 Bachelor's degree None None 17-2011 Aerospace Engineers 577 833 260 47.7% $47.62 Bachelor's degree None None 51-9161 Computer Numerically Controlled Tool Operators 835 824 17 2.1% $20.44 High school None Moderate-term on-the-job training 17-3023 Electrical & Elect. Eng. Technologists/Technicians 858 781 -68 -8.5% $32.89 Associate's degree None None 17-2071 Electrical Engineers 509 735 214 44.1% $45.16 Bachelor's degree None None 17-2112 Industrial Engineers 552 662 124 23.5% $42.26 Bachelor's degree None None 17-3026 Industrial Engineering Technologists & Technicians 490 587 85 19.1% $32.57 Associate's degree None None 51-4081 Multiple Mach. Tool Setters, Operators, & Tenders 761 572 -111 -15.0% $16.42 High school None Moderate-term on-the-job training 49-2091 Avionics Technicians 471 455 -29 -6.0% $26.30 Associate's degree None None 53-2011 Airline Pilots, Copilots, and Flight Engineers 289 388 84 26.0% $67.46 Bachelor's degree <5 years Moderate-term on-the-job training 51-2031 Engine and Other Machine Assemblers 378 327 -68 -18.6% $16.50 High school None Moderate-term on-the-job training 43-4181 Reserv. & Transport. Ticket Agents & Travel Clerks 395 326 -49 -13.0% $21.54 High school None Short-term on-the-job training 43-5011 Cargo and Freight Agents 216 290 59 30.3% $20.07 High school None Short-term on-the-job training 53-2021 Air Traffic Controllers 242 275 26 10.4% $50.74 Associate's degree None Long-term on-the-job training 53-2012 Commercial Pilots 284 221 -47 -16.9% $41.53 High school None Moderate-term on-the-job training 51-4111 Tool and Die Makers 176 167 -13 -8.1% $26.01 Postsec. nondegree None Long-term on-the-job training 17-2131 Materials Engineers 99 131 36 41.2% $44.20 Bachelor's degree None None 51-2011 Aircraft Struct., Surfaces, Rigging, & Systems 76 65 -17 -13.1% $19.34 High school None Moderate-term on-the-job training 53-6098 Aircraft Svc. Attendants & Transportation Workers 50 51 1 1.5% $15.67 High school None Short-term on-the-job training 17-3021 Aerospace Eng. & Oper. Technologists/Technicians 23 51 28 214.3% $38.76 Associate's degree None None 53-2022 Airfield Operations Specialists 34 47 14 62.0% $21.27 High school None Long-term on-the-job training 53-1041 Aircraft Cargo Handling Supervisors 27 36 6 32.6% $23.92 High school <5 years None
Source: EMSI Staffing Patterns 2020.4 (QCEW+Non-QCEW+Self-Employed) Notes: These are key occupations for the six-digit NAICS codes in the core aerospace sectors. Includes both private and federal sector employers. However, employment counts are across all industries.
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Greater OKC Region Aerospace Industry – 2020
Figure 11. (Cont.) Labor Force in Key Aerospace Occupations – Greater OKC Region Avg Total Employment Net Separa- Annual Regional Commu- Hires Tions Openings Completions SOC Code Standard Occupational Classification (SOC) 2015 2020 Change %Chg. ters (2020) (2020) (2015-20) (2015-19) 15-1256 Software Developers & Software Quality Assurance 3,826 4,383 574 16.1% 255 1,877 1,620 442 2,139 51-2098 Miscellaneous Assemblers and Fabricators 3,634 4,177 583 16.5% 59 3,575 3,610 598 0 51-4121 Welders, Cutters, Solderers, and Brazers 3,062 3,669 549 17.5% -19 2,201 1,997 519 761 49-3011 Aircraft Mechanics and Service Technicians 2,685 2,726 66 2.6% 110 978 945 260 560 13-1081 Logisticians 1,752 2,651 854 52.9% 182 997 960 378 76 47-2211 Sheet Metal Workers 2,485 2,588 86 3.8% 231 1,760 1,669 315 0 51-9061 Inspectors, Testers, Sorters, Samplers, & Weighers 1,539 2,056 515 32.7% -33 1,483 1,574 326 0 49-9041 Industrial Machinery Mechanics 1,686 1,808 146 9.0% 51 822 724 208 0 17-2072 Electronics Engineers, Except Computer 1,368 1,382 13 1.0% 118 329 344 102 1,473 17-2199 Engineers, All Other 741 1,357 595 86.9% 77 355 330 178 1,071 51-4041 Machinists 1,768 1,278 -418 -24.1% -36 666 597 164 325 51-2028 Electrical, Electronic, and Electromech. Assemblers 1,024 1,243 204 20.4% 34 683 653 192 0 49-9043 Maintenance Workers, Machinery 819 1,212 401 46.9% -44 624 596 187 0 11-9041 Architectural and Engineering Managers 978 1,133 160 17.4% 55 329 313 107 9,558 51-9124 Coating, Painting, & Spraying Machine Operators 730 1,096 350 47.9% 16 729 681 171 470 17-2141 Mechanical Engineers 995 1,077 81 8.4% 23 353 301 100 2,174 17-2011 Aerospace Engineers 577 833 260 47.7% 28 195 177 93 434 51-9161 Computer Numerically Controlled Tool Operators 835 824 17 2.1% -15 359 352 115 264 17-3023 Electrical & Elect. Eng. Technologists/Technicians 858 781 -68 -8.5% 49 313 306 88 363 17-2071 Electrical Engineers 509 735 214 44.1% 34 217 180 83 1,456 17-2112 Industrial Engineers 552 662 124 23.5% 9 238 176 69 271 17-3026 Industrial Engineering Technologists & Technicians 490 587 85 19.1% 60 237 223 75 803 51-4081 Multiple Mach. Tool Setters, Operators, & Tenders 761 572 -111 -15.0% -60 311 282 95 193 49-2091 Avionics Technicians 471 455 -29 -6.0% 5 138 127 42 325 53-2011 Airline Pilots, Copilots, and Flight Engineers 289 388 84 26.0% -16 134 116 63 0 51-2031 Engine and Other Machine Assemblers 378 327 -68 -18.6% 31 178 196 61 2 43-4181 Reserv. & Transport. Ticket Agents & Travel Clerks 395 326 -49 -13.0% -2 169 151 74 72 43-5011 Cargo and Freight Agents 216 290 59 30.3% 35 271 279 49 53 53-2021 Air Traffic Controllers 242 275 26 10.4% 2 79 75 35 0 53-2012 Commercial Pilots 284 221 -47 -16.9% -10 100 84 36 0 51-4111 Tool and Die Makers 176 167 -13 -8.1% 19 70 64 21 0 17-2131 Materials Engineers 99 131 36 41.2% 6 32 29 15 14 51-2011 Aircraft Struct., Surfaces, Rigging, & Systems 76 65 -17 -13.1% -45 39 18 12 594 53-6098 Aircraft Svc. Attendants & Transportation Workers 50 51 1 1.5% 3 39 25 9 0 17-3021 Aerospace Eng. & Oper. Technologists/Technicians 23 51 28 214.3% 9 20 14 10 822 53-2022 Airfield Operations Specialists 34 47 14 62.0% 9 18 15 8 0 53-1041 Aircraft Cargo Handling Supervisors 27 36 6 32.6% 11 22 19 7 76 Source: EMSI Staffing Patterns 2020.4 (QCEW+Non-QCEW+Self-Employed) Notes: These are key occupations for the six-digit NAICS codes in the core aerospace sectors. Includes both private and federal sector employers. However, employment counts are across all industries. 32
Greater OKC Region Aerospace Industry – 2020
VI. State-Level Aerospace Markets Making state level comparisons of aerospace markets is challenging due to the widely varying mix of private and public sector aerospace-related establishments in each state. Many comparative studies of state aerospace markets focus primarily on private sector aerospace activity and exclude the public sector component of the market. For Oklahoma, this practice ignores large public sector aerospace assets and tends to rank the state as only an upper middle-tier aerospace state. This section of the report addresses this gap by providing a more comprehensive measure of the combined private and public sector components of the aerospace industry in each state. This approach provides for a more holistic comparison that captures the widely varying mix of both private and public sector aerospace activity across the states. There is also little consensus on which components of the private side of the aerospace industry should be included in comparative state-level studies. We identify a standardized group of core private aerospace sectors that capture the bulk of the private industry in each state. The private aerospace sectors are identified using both widely available federal datasets and standard NAICS sectors. This approach provides ample historical data for measuring trends over time, and the data can be easily maintained going forward. Examining both the private and public sides of the aerospace sector demonstrates the critical importance of examining public sector aerospace activity in Oklahoma and many other states. For Oklahoma, the state rises to among the ranks of the ten largest aerospace states measured by employment when the state’s full private and public sector employment base is considered. The state’s aerospace industry also showed considerable stability during the COVID-19 slowdown relative to the performance of the industry in states with a far higher share of private aircraft manufacturing and maintenance and commercial air carriers. Profile of the Core Private Aerospace Industry by State As described in the scope section of the report, a comparative view of the core private aerospace industry is prepared using NAICS sectors 3464 (aerospace product and parts manufacturing), 481 (air transportation), and 4881 (support activities for air transportation). These three sectors are believed to capture at least 90% of the private sector aerospace activity across the states.20 Again, other far smaller components of the aerospace industry are excluded because of their small relative size but do not affect the state rankings in a meaningful way. Economic activity in each of the three core private sectors is detailed in Figure 12 for each state and the nation. Economic measures include the number of business establishments, wage and salary employment and total annual wages. State rankings by total establishments, employment and annual wages are provided in Figure 13. Nation. Based on the standardized definition of private aerospace, there were approximately 17,250 business establishments operating in the three core private aerospace sectors in the U.S. in 2019. These firms employed 1.27 million workers earning a total of $113 billion in annual wages. Average annual wages in the sector reached $89,258 per worker in 2019. The average private aerospace firm is relatively small with only about 75 employees. Oklahoma. Oklahoma reported 317 private aerospace establishments with 19,038 employees earning $1.56 billion in annual wages in 2019. Average wages within the core aerospace sectors reached $82,172 in Oklahoma in 2019, about 8% below the national average. The average private aerospace firm in the state employed about 60 workers, slightly below national estimates. For comparison, estimates from the
33
Greater OKC Region Aerospace Industry – 2020 aerospace industry profile detailed earlier in the report for the Greater Oklahoma City region found an estimated 10,840 private sector aerospace workers earning $1.0 billion in annual labor income. Other States by Industry Concentration. Measured by NAICS 3364 (manufacturing and maintenance activity), the largest manufacturing-intensive aerospace markets are generally Washington, California, Texas, Connecticut, Arizona, Florida, Kansas, Ohio and Georgia. These are the traditional leading private aerospace markets for aircraft engineering and assembly, supplying both the defense and commercial aviation markets. NAICS 3364 (manufacturing and maintenance activity) is a far more important factor in determining the total size of the industry than either NAICS 481 (air transportation) or 4881 (support activities for air transportation). Activity captured by NAICS 481 and 4881 is highly correlated with population, with larger states typically having larger commercial and general aviation sectors. There is some added concentration of employment in air transportation (NAICS 481) in states having either large commercial airline hubs or extensive tourism activity such as Georgia, California, Texas, Illinois, Florida and New York. Similarly, states with extensive airline maintenance and service facilities (or large shares in sector 4881) include California, Florida, Texas, Illinois, Nevada and Arizona.
34
Greater OKC Region Aerospace Industry – 2020
Figure 12. Core Private Aerospace Industry Sectors by State (2019)
Establishments Wage & Salary Employment Annual Wages ($Mil.) NAICS Sector NAICS Sector NAICS Sector State 3364 481 4881 Total 3364 481 4881 Total 3364 481 4881 Total Alabama 79 66 142 287 13,010 686 3,536 17,232 $1,215.9 $50.2 $250.6 $1,516.7 Alaska 10 199 83 292 121 6,222 1,381 7,723 4.4 402.5 55.3 462.1 Arizona 134 123 246 502 30,682 14,196 7,572 52,450 3,322.6 1,107.1 429.2 4,858.9 Arkansas 27 45 110 181 4,045 744 1,138 5,926 259.0 31.9 48.0 338.9 California 629 584 787 2,000 77,956 58,577 33,331 169,864 8,653.4 5,686.3 1,625.7 15,965.4 Colorado 40 109 200 348 8,117 16,739 5,625 30,481 1,126.4 1,596.8 231.3 2,954.5 Connecticut 142 63 83 288 31,917 1,099 1,211 34,226 3,766.5 102.2 77.8 3,946.5 Delaware 6 28 39 72 654 185 581 1,419 50.1 21.4 49.0 120.6 Dist. of Columbia 1 23 9 33 6 70 62 139 0.7 8.8 5.1 14.7 Florida 386 678 947 2,011 25,814 45,888 28,389 100,091 2,597.6 3,777.8 1,319.7 7,695.0 Georgia 113 164 219 496 21,011 30,681 4,876 56,569 1,997.1 3,381.8 226.1 5,605.0 Hawaii 2 74 79 155 13 10,115 2,536 12,663 1.2 744.0 83.1 828.2 Idaho 27 66 69 162 507 1,455 892 2,854 26.1 73.0 51.9 150.9 Illinois 52 266 205 522 3,739 39,740 8,155 51,634 275.4 3,709.7 358.6 4,343.7 Indiana 49 89 143 281 6,309 3,316 2,987 12,612 601.8 199.4 157.3 958.4 Iowa 9 37 70 115 2,025 380 808 3,214 102.7 17.7 24.9 145.3 Kansas 156 38 120 314 33,182 337 1,469 34,988 2,607.5 18.9 78.6 2,704.9 Kentucky 27 62 103 193 3,314 2,843 3,750 9,906 236.6 215.7 269.2 721.5 Louisiana 19 103 98 220 1,298 2,576 1,809 5,682 116.0 173.8 79.6 369.5 Maine 6 29 42 77 1,687 260 697 2,644 166.6 10.3 24.7 201.6 Maryland 39 63 107 209 2,400 5,900 3,553 11,854 221.3 580.9 224.8 1,027.1 Massachusetts 29 139 90 258 11,003 9,689 3,335 24,026 1,490.6 764.7 135.9 2,391.2 Michigan 64 165 127 355 5,789 15,192 4,457 25,437 434.2 1,459.4 235.8 2,129.5 Minnesota 38 97 99 234 1,296 14,240 1,461 16,996 93.2 1,258.2 71.6 1,423.0 Mississippi 15 38 91 144 1,313 195 1,870 3,378 97.0 10.5 131.7 239.2 Missouri 50 83 144 277 17,406 4,518 2,917 24,842 2,014.5 273.9 137.6 2,426.1 Montana 9 55 68 132 288 820 808 1,915 20.5 31.8 35.1 87.3 Nebraska 11 33 60 104 579 481 2,301 3,360 30.5 26.0 120.9 177.4 Nevada 17 72 151 240 513 8,076 6,166 14,755 34.8 736.1 364.1 1,135.0 New Hampshire 11 37 40 88 1,486 503 470 2,460 117.1 41.2 29.7 188.0 New Jersey 24 138 124 285 1,594 18,327 6,419 26,340 122.9 1,802.3 276.2 2,201.4 New Mexico 19 46 71 135 696 1,208 1,138 3,043 66.4 55.8 73.0 195.3 New York 81 321 235 637 5,188 35,031 13,376 53,595 419.5 3,204.3 556.8 4,180.7 North Carolina 42 122 213 377 6,746 15,820 6,949 29,515 596.1 1,208.7 356.4 2,161.3 North Dakota 5 18 50 72 695 126 660 1,481 52.0 4.6 25.8 82.4 Ohio 152 150 216 518 20,078 10,183 5,778 36,038 2,135.1 1,169.0 317.7 3,621.8 Oklahoma 69 62 186 317 13,545 1,441 4,052 19,038 1,183.7 102.3 278.4 1,564.4 Oregon 47 88 100 235 3,628 5,404 2,224 11,257 324.8 396.6 82.8 804.2 Pennsylvania 63 169 155 387 10,375 13,310 4,168 27,852 1,111.3 1,122.2 157.8 2,391.3 Rhode Island 1 26 23 50 4 387 255 645 1.0 20.3 3.8 25.1 South Carolina 49 95 105 248 7,381 1,097 1,944 10,422 738.3 44.6 97.6 880.6 South Dakota 3 27 42 71 49 246 439 734 8.9 11.8 20.1 40.7 Tennessee 35 105 134 274 2,348 2,732 2,924 8,003 158.0 159.4 172.5 490.0 Texas 235 501 814 1,549 49,412 64,237 26,344 139,992 5,521.1 6,277.4 1,725.9 13,524.4 Utah 73 75 80 227 7,795 7,415 1,556 16,767 634.0 722.9 57.3 1,414.3 Vermont 7 13 28 48 1,441 119 242 1,801 110.5 5.4 10.9 126.8 Virginia 51 165 184 399 1,942 14,060 6,934 22,936 175.5 1,190.6 293.2 1,659.3 Washington 198 129 183 510 88,483 15,933 6,434 110,849 10,529.0 1,473.5 341.2 12,343.7 West Virginia 10 20 35 65 2,282 96 563 2,940 184.1 4.1 32.2 220.4 Wisconsin 25 60 114 199 1,395 1,995 2,093 5,483 100.6 110.3 81.2 292.1 Wyoming 4 29 33 66 55 457 208 720 2.2 19.5 6.4 28.1
United States 3,382 5,980 7,891 17,252 532,609 505,340 232,839 1,270,788 55,856.3 45,617.5 11,916.0 113,389.8
Source: Bureau of Labor Statistics (QCEW Survey) and Census Bureau (County Business Patterns)
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Greater OKC Region Aerospace Industry – 2020
Figure 13. State Rankings of Core Private Aerospace Industry Activity (2019) Employ- Estab- Annual Average State ment Rank lishments Rank Wages Rank Wage Rank Alabama 17,232 21 287 19 $1,516,749,781 21 $88,019 12 Alaska 7,723 32 292 17 462,139,290 32 59,838 41 Arizona 52,450 7 502 8 4,858,909,444 6 92,639 11 Arkansas 5,926 33 181 34 338,892,749 34 57,191 42 California 169,864 1 2,000 2 15,965,382,140 1 93,989 10 Colorado 30,481 12 348 14 2,954,517,440 11 96,930 8 Connecticut 34,226 11 288 18 3,946,486,591 9 115,306 1 Delaware 1,419 47 72 45 120,625,189 45 85,022 15 Dist. of Columbia 139 51 33 51 14,663,206 51 105,872 3 Florida 100,091 4 2,011 1 7,695,028,943 4 76,880 26 Georgia 56,569 5 496 9 5,605,029,321 5 99,083 6 Hawaii 12,663 25 155 36 828,213,293 28 65,403 37 Idaho 2,854 41 162 35 150,930,282 42 52,890 46 Illinois 51,634 8 522 5 4,343,743,207 7 84,125 18 Indiana 12,612 26 281 21 958,367,286 26 75,991 29 Iowa 3,214 38 115 40 145,261,288 43 45,203 49 Kansas 34,988 10 314 16 2,704,925,220 12 77,311 24 Kentucky 9,906 30 193 33 721,455,856 30 72,830 32 Louisiana 5,682 34 220 30 369,463,466 33 65,020 38 Maine 2,644 42 77 43 201,631,232 38 76,255 28 Maryland 11,854 27 209 31 1,027,064,203 25 86,646 13 Massachusetts 24,026 18 258 24 2,391,161,509 15 99,523 5 Michigan 25,437 16 355 13 2,129,487,159 18 83,715 20 Minnesota 16,996 22 234 28 1,422,975,954 22 83,722 19 Mississippi 3,378 36 144 37 239,243,846 36 70,829 35 Missouri 24,842 17 277 22 2,426,053,347 13 97,661 7 Montana 1,915 44 132 39 87,338,263 46 45,601 48 Nebraska 3,360 37 104 41 177,441,097 41 52,803 47 Nevada 14,755 24 240 26 1,134,991,063 24 76,921 25 New Hampshire 2,460 43 88 42 188,036,752 40 76,445 27 New Jersey 26,340 15 285 20 2,201,382,743 16 83,576 21 New Mexico 3,043 39 135 38 195,291,619 39 64,181 39 New York 53,595 6 637 4 4,180,651,807 8 78,004 23 North Carolina 29,515 13 377 12 2,161,306,447 17 73,227 31 North Dakota 1,481 46 72 44 82,401,481 47 55,658 43 Ohio 36,038 9 518 6 3,621,822,136 10 100,499 4 Oklahoma 19,038 20 317 15 1,564,407,314 20 82,172 22 Oregon 11,257 28 235 27 804,213,844 29 71,444 34 Pennsylvania 27,852 14 387 11 2,391,266,591 14 85,857 14 Rhode Island 645 50 50 49 25,100,709 50 38,891 51 South Carolina 10,422 29 248 25 880,552,584 27 84,489 16 South Dakota 734 48 71 46 40,701,853 48 55,490 44 Tennessee 8,003 31 274 23 489,958,025 31 61,225 40 Texas 139,992 2 1,549 3 13,524,371,164 2 96,608 9 Utah 16,767 23 227 29 1,414,268,865 23 84,351 17 Vermont 1,801 45 48 50 126,834,643 44 70,418 36 Virginia 22,936 19 399 10 1,659,304,299 19 72,345 33 Washington 110,849 3 510 7 12,343,652,844 3 111,356 2 West Virginia 2,940 40 65 48 220,403,734 37 74,957 30 Wisconsin 5,483 35 199 32 292,098,324 35 53,277 45 Wyoming 720 49 66 47 28,138,294 49 39,099 50
United States 1,270,788 17,252 $113,389,808,244 $89,228
Source: Bureau of Labor Statistics (QCEW Survey) and Census Bureau (County Business Patterns)
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Greater OKC Region Aerospace Industry – 2020
Core Private Sector Rankings. Figure 13 ranks the states by the number of establishments, employment and wages paid across the core private aerospace sectors. Across all three core private sectors, Oklahoma’s ranks among the top 20 states. The state is 15th in the number of establishments, 20th in employment and 20th in total wages paid in 2019. Average annual wages paid rank 22nd. The state’s core private aerospace rankings on all measures exceed the state’s rank as the 28th most populous state. Across the three core sectors, Oklahoma has a relatively higher concentration of NAICS 3364 (aerospace product and parts manufacturing), a lower concentration of NAICS 481 (air transportation) and a higher concentration of NAICS 4881(support activities for air transportation). More than 70% of Oklahoma’s private sector aerospace employment is in NAICS 3364. The state’s 13,545 employees in NAICS 3364 rank a competitive 11th among the states. The state ranks only 31st based on the 1,441 air transportation employees working in NAICS 481 but ranks 17th based on 4,052 employees in NAICS 4881. In other words, the state’s private sector aerospace mix reflects a relatively high level of manufacturing- and maintenance-related activity, far less commercial air traffic, and more air transportation services in Oklahoma than in states of comparable size. The five largest private sector aerospace markets by employment are California, Texas, Washington, Florida and Georgia. All five states have diversified markets with a large share of all three core private sectors. High concentrations within NAICS 3364 (aerospace product and parts manufacturing) are evident among the leaders, all with large aerospace-related manufacturing sectors. Washington and California have a far larger share of NAICS 3364 than the other states. Among the top five states, Texas, Florida and Georgia also have relatively high concentrations of NAICS 481 (air transportation), which reflects major airports, airline hubs and substantial air passenger travel. Core Private Sector Growth. Figure 14 provides an overview of growth in the core private aerospace sectors for both Oklahoma and the nation in the two decades from 2000 to 2019. Activity is measured for the number of establishments, employment and total annual wages. Both the U.S. and Oklahoma core private aerospace sectors have experienced volatility over time but remain in a general long-run uptrend. The trend and pace of growth in Oklahoma are both highly consistent with overall long-run trends at the national level. The core private aerospace sectors nationally and in Oklahoma can be characterized as having a steadily growing number of establishments, moderate growth in employment, and strong growth in total annual wages. Average annual wages per worker are growing rapidly as a result. The number of establishments at both the state and U.S. levels remains in a relatively slow uptrend for the past two decades. Establishment growth in Oklahoma has slightly outpaced growth at the national level since 2014. The state added a reported 47 new private establishments between 2015 and 2019, a 16% increase. Employment is down slightly at the state and national levels over the full period but is up steadily since 2004 after experiencing a sharp drop in the early 2000s. Both the state and nation have posted strong core private sector job growth since 2015, with the nation adding nearly 63,000 core private sector aerospace jobs and the state adding almost 2,500. Growth is most evident in wages paid to core private sector aerospace workers. The state and nation have enjoyed a significant long-run uptrend since 2000 with slowing only in recessionary periods. Total wages 37
Greater OKC Region Aerospace Industry – 2020 paid by core private sector aerospace employers nearly doubled between 2000 and 2019 at both the state and national levels.
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Greater OKC Region Aerospace Industry – 2020
Figure 14. U.S. & Oklahoma Core Private Aerospace Sectors (2000-2019) a) Number of Establishments 400 20,000 17,261
320 16,000
316 240 12,000
160 8,000
80 Oklahoma 4,000 U.S. 0 0 00 02 04 06 08 10 12 14 16 18 b) Wage & Salary Employment 25,000 1,500,000
22,500 1,270,150 1,350,000
20,000 1,200,000
17,500 1,050,000 19,029 15,000 900,000
Oklahoma 12,500 750,000 U.S. 10,000 600,000 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 c) Total Annual Wages ($Billions) 1.8 120 113.37 110
1.5 100
1.56 90
1.2 80
70
0.9 Oklahoma 60
U.S. 50
0.6 40 00 02 04 06 08 10 12 14 16 18 Notes: Employment data are annual averages of monthly data on a calendar year basis Source: Bureau of Labor Statistics and RegionTrack tabulations
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Greater OKC Region Aerospace Industry – 2020
Public Sector Aerospace Employment. The state rankings developed in the prior section confirm an upper middle-tier placement of Oklahoma’s aerospace market when viewed solely by its private sector component. Oklahoma generally ranks among the top 20 states and exceeds its expected rank based on population. Again, the concern with examining only private sector aerospace activity in Oklahoma is that it overlooks the state’s strong competitive position in public sector aerospace. In the Greater Oklahoma City region, public sector workers comprise the backbone of the aerospace sector. Using only the private sector also fails to capture the natural synergies between the private and public sectors of the industry. Many firms in the region are engaged in both private and public sector aerospace activities. The activities underway at public sector aerospace entities are often functionally equivalent to those in the private sector. This includes transferable labor market skills, common infrastructure and equipment and similar maintenance and repair activities. The role of public sector aerospace activity is often overlooked in other states as well. As in Oklahoma, this activity is most often tied to the mission of the Air Force and other entities including the Air National Guard and Air Force Reserve units. However, in Oklahoma and a few other states, it extends beyond military applications to the FAA and other federal aerospace-related entities. Defining Public Sector Aerospace In this section of the report, we prepare state-level rankings that capture public sector aerospace activity in Oklahoma and the other states. The public sector estimates are then combined with the core private sector rankings developed in the prior section to evaluate the size and overall composition of the combined aerospace sector in Oklahoma relative to other states. Public sector aerospace activity is measured using five distinct segments of the public sector workforce: 1. active-duty Air Force personnel 2. permanent civilian Air Force employees 3. Air Force reserve personnel 4. Air National Guard personnel, and 5. permanent civilian FAA employees These five groups of public sector employees are directly and deeply involved in aerospace activities but are frequently excluded from state-level reviews of aerospace markets. Figure 15 summarizes state-level employment in each of the five aerospace-related segments in fiscal year 2020. The five public sector components are listed in order from largest to smallest by national employment, with active-duty Air Force personnel the largest and permanent civilian FAA employees the smallest. The categories exclude some small amounts of aerospace employment in other branches of the Armed Forces. Across all five sectors, approximately 660,000 workers were employed nationally by public sector aerospace entities. That equates to roughly half the 1.27 million workers in the core private aerospace sectors. Approximately 275,000 public sector aerospace workers were active-duty Air Force personnel and 168,200 permanent Air Force civilian workers. The smaller segments include 105,000 Air National Guard personnel and 68,500 Air Force Reserve members. Finally, 43,200 public sector aerospace-related workers are permanent FAA civilian employees. 40
Greater OKC Region Aerospace Industry – 2020
Figure 15. Public Sector Aerospace Employment by State (FY2020)
Air Force Air Guard/Reserve Air Air FAA Total Active Permanent National Force Permanent Public Duty State Duty Civilian Guard Reserve Civilians Sector Alabama 2,858 33 2,399 18 2,424 11 1,406 21 223 35 9,310 27 Alaska 7,922 12 2,421 17 2,176 19 378 31 1,094 12 13,991 15 Arizona 11,242 6 3,375 11 2,566 10 2,527 7 523 24 20,233 10 Arkansas 3,656 26 1,055 29 1,943 26 389 30 162 38 7,205 33 California 19,088 3 9,940 7 4,809 3 7,603 1 3,421 3 44,861 3 Colorado 9,183 10 5,811 9 1,775 30 3,234 5 1,002 14 21,005 8 Connecticut 35 47 179 50 1,169 41 1 44 141 40 1,525 48 Delaware 3,582 27 1,014 31 1,049 46 1,546 16 25 51 7,216 32 District of Columbia 1,769 34 334 44 1,314 36 233 33 3,676 2 7,326 30 Florida 23,571 2 12,847 5 2,107 23 6,804 2 2,513 5 47,842 2 Georgia 9,499 8 15,272 4 2,819 8 3,155 6 2,335 6 33,080 4 Hawaii 5,569 19 1,336 25 2,314 15 758 29 352 29 10,329 22 Idaho 3,545 28 587 40 1,339 35 28 38 117 46 5,616 34 Illinois 4,469 23 2,837 14 2,905 7 1,541 17 1,627 9 13,379 17 Indiana 75 43 735 38 1,915 28 1,510 19 812 17 5,047 40 Iowa 27 49 331 45 1,921 27 0 46 178 37 2,457 45 Kansas 3,150 32 952 33 2,158 21 769 28 722 18 7,751 29 Kentucky 243 37 240 47 1,252 37 4 42 299 32 2,038 47 Louisiana 5,296 21 1,611 23 1,529 31 1,300 24 308 30 10,044 23 Maine 11 51 206 49 1,071 45 0 46 131 44 1,419 49 Maryland 8,629 11 3,052 13 1,870 29 1,894 12 399 28 15,844 12 Massachusetts 1,213 35 3,282 12 2,077 24 2,031 10 444 27 9,047 28 Michigan 100 42 669 39 2,393 12 1 44 650 20 3,813 41 Minnesota 56 46 822 34 2,262 17 1,442 20 853 16 5,435 36 Mississippi 6,503 17 2,478 16 2,598 9 1,553 15 123 45 13,255 18 Missouri 4,316 25 1,193 27 2,229 18 1,046 27 658 19 9,442 26 Montana 3,410 30 749 37 922 51 21 40 156 39 5,258 39 Nebraska 5,785 18 2,578 15 986 49 323 32 140 41 9,812 25 Nevada 10,544 7 1,687 22 1,195 40 1,254 26 305 31 14,985 13 New Hampshire 31 48 294 46 1,092 44 0 46 649 21 2,066 46 New Jersey 4,969 22 1,979 20 2,368 14 2,322 8 1,604 10 13,242 19 New Mexico 12,278 5 3,649 10 984 50 230 34 494 26 17,635 11 New York 419 36 1,967 21 5,579 1 1,286 25 1,842 7 11,093 21 North Carolina 6,653 16 1,194 26 1,456 32 1,521 18 509 25 11,333 20 North Dakota 7,598 13 1,089 28 1,156 42 37 37 135 42 10,015 24 Ohio 5,509 20 15,527 3 5,052 2 3,544 4 1,035 13 30,667 6 Oklahoma 7,519 14 17,837 1 2,171 20 1,823 13 3,260 4 32,610 5 Oregon 143 40 464 41 2,381 13 115 35 262 33 3,365 42 Pennsylvania 226 38 1,044 30 4,087 4 1,313 23 620 22 7,290 31 Rhode Island 61 45 166 51 1,008 47 2 43 65 47 1,302 51 South Carolina 9,262 9 2,047 19 1,227 39 2,181 9 257 34 14,974 14 South Dakota 3,431 29 751 36 1,108 43 22 39 64 48 5,376 38 Tennessee 163 39 1,005 32 3,423 5 8 41 889 15 5,488 35 Texas 34,294 1 17,051 2 3,390 6 6,096 3 3,889 1 64,720 1 Utah 4,370 24 12,749 6 1,449 34 1,350 22 560 23 20,478 9 Vermont 62 44 236 48 987 48 0 46 44 50 1,329 50 Virginia 12,418 4 6,191 8 1,456 32 2,004 11 1,438 11 23,507 7 Washington 6,805 15 1,404 24 1,973 25 1,797 14 1,832 8 13,811 16 West Virginia 18 50 377 43 2,112 22 0 46 132 43 2,639 44 Wisconsin 127 41 417 42 2,287 16 0 46 189 36 3,020 43 Wyoming 3,249 31 783 35 1,243 38 54 36 53 49 5,382 37
United States 274,951 168,213 105,076 68,456 43,211 659,907 Source: Department of Defense Manpower Center and Office of Personnel Management 41
Greater OKC Region Aerospace Industry – 2020
Oklahoma Public Sector Aerospace. The results in Figure 15 indicate that Oklahoma is home to 32,610 public sector aerospace-related employees, the 5th largest concentration among the states. It is this deep concentration of public sector aerospace jobs in Oklahoma that makes their inclusion so vital in comparative state-level studies of aerospace. The breadth and depth of the Oklahoma aerospace market simply cannot be captured otherwise. Remarkably, only Texas (64,720), Florida (47,842), California (44,861) and Georgia (33,080) have a larger pool of public sector aerospace-related employment. These four states are all traditional aerospace and defense industry leaders. Oklahoma along with these four states and Ohio form a top tier of six states measured by public sector aerospace jobs. Each of the six states has between 30,000 and 65,000 public sector aerospace workers, far outpacing the remaining states. A second tier of four states have between 20,000 and 24,000 public sector aerospace workers – Virginia (23,507), Colorado (21,005), Utah (20,478) and Arizona (20,233). Among the top 10 states based on public sector jobs, Oklahoma, Virginia and Utah all have more public sector aerospace employment than core private sector jobs. It is especially critical to evaluate the role of public sector aerospace activity in these three states. Air Force – Active Duty and Civilian. Air Force personnel have long played a key role in aerospace activity in Oklahoma and the Greater Oklahoma City region. Measured by the number of active-duty Air Force personnel, the state ranks 14th with 7,519 in fiscal year 2020. A reported 5,104 of the active-duty Air Force personnel in the state are stationed at Tinker AFB. More importantly, Oklahoma ranks 1st among the states in the number of permanent civilian Air Force employees, with nearly all based at Tinker Air Force Base. Much of the strength of the overall state aerospace labor force is traced to 17,837 highly skilled permanent civilian Air Force employees working in Oklahoma. Oklahoma has consistently ranked at or near the top among the states the past two decades, currently rivaled only by 2nd-ranked Texas.21 Permanent civilian Air Force workers are highly concentrated around the nation’s Air Force bases and located in only a handful of states in addition to Oklahoma. These include Texas (17,051), Ohio (15,527), Georgia (15,272), Florida (12,847), Utah (12,749) and California (9,940). Far smaller concentrations are found in Virginia (6,191) and Colorado (5,811). Civilian Air Force workers employed at Tinker AFB have a range of occupational specialties. The presence of these civilian workers greatly enhances the competitive labor market for aerospace workers statewide and in the Greater Oklahoma City region. These workers possess technical skills and industry knowledge that transition easily between both public and private sector aerospace employers. Air National Guard/Air Force Reserve. Air Guard and Air Force Reserve personnel are no less important a component of the aviation market across the states. State-level Air National Guard units typically maintain active air wings in support of the defense mission of the Air Force. This personnel includes flight crew, flight operations and management, aircraft maintenance specialists, intelligence, medical and many other specialties. Concentrations of Air Guard personnel tend to be greater in larger states, but also reflect proximity to large Air Force bases. Every state has an active Air National Guard with total personnel typically ranging from 1,000 to 3,000. Oklahoma ranks 20th with 2,171 Air National Guard members and 13th among the states with 1,823 Air Force Reserve personnel in fiscal year 2020. States with large numbers of active-duty Air
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Force personnel tend to have higher numbers of Reserve personnel. Approximately 20 states have very small numbers of Air Force Reserve personnel. Civilian FAA Personnel. The significant size of the FAA Center in Oklahoma City elevates Oklahoma to 4th among the states and the District of Columbia with 3,260 permanent civilian FAA workers in fiscal year 2020. Oklahoma trails only Texas (3,889), the District of Columbia (3,676) and California (3,421) in permanent FAA employees. It is important to note that the state comparison of FAA employment in this section does not include the nearly 2,000 additional non-appropriated fund contract employees working at the FAA Center or similar contract workers at other FAA facilities in other states.22 When contract workers and long-term FAA students are included, the FAA Center in Oklahoma City ranks as the largest single-site concentration of FAA workers outside of the District of Columbia. Private and Public Sector Aerospace Employment. The aerospace market in many states, including Oklahoma, takes on a far different profile when both core private and public sector activities are considered. Figure 16 provides rankings of combined private and public sector aerospace employment across the states. The change in rankings is evident in Oklahoma where a combined 51,600 workers comprise the private and public sector aerospace labor market. Oklahoma rises from the 20th largest market when measured by core private sector employment to the 10th largest when public sector aerospace workers are added to the labor pool. The top tier of the combined market is dominated by the four largest traditional aerospace states of California (214,725), Texas (204,712), Florida (147,933) and Washington (124,660). Of these four, California, Texas and Florida have very large numbers of both private and public sector aerospace employees. However, Washington’s high ranking is traced primarily to private sector employment largely related to Boeing commercial jet production. Washington has the 3rd highest number of private aerospace employees but only the 16th highest number of public sector personnel, roughly opposite the rankings of Oklahoma. Seven additional states (including Oklahoma) comprise a second tier, with each having between 50,000 and 100,000 combined core private and public sector aerospace personnel. The group includes Georgia (89,649), Arizona (72,683), Ohio (66,705), Illinois (65,013), New York (64,688), Oklahoma (51,648) and Colorado (51,486). Three additional states have more than 40,000 private and public sector aerospace workers – Virginia (46,443), Kansas (42,739) and North Carolina (40,808). The rankings in Figure 16 highlight the vital role of public sector employment in the structure of the Oklahoma aerospace industry. As Oklahoma moves from 20th to 10th when public sector employment is added, it supplants the large commercial aircraft producing state of Kansas in the top 10. Among all states, Oklahoma and New Mexico enjoy the largest improvement in rank when public sector workers are included in aerospace employment. Oklahoma’s move from 20th to 10th and New Mexico’s improvement from 39th to 29th are traced primarily to large Air Force installations. Both states are home to major Air Force bases employing large numbers of federal civilian workers. However, the role of public sector employment is important in other states as well. For example, Delaware, Utah and Virginia also have a large Air Force presence and similarly advance in the rankings when public
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Greater OKC Region Aerospace Industry – 2020 sector employment is considered. When public sector jobs are considered, Virginia moves up from 19th to 12th, Utah advances from 23rd to 16th and Delaware rises from 47th to 39th. Conversely, when public sector aerospace jobs are included, New York drops from 6th to 9th, Kansas drops from 10th to 13th, and Connecticut drops from 11th to 17th. These traditional leading aerospace states have substantial core private sector employment but are home to relatively few public sector aerospace jobs.
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Figure 16. Core Private and Public Sector Aerospace Employment Core Private Sector (2019) Public Sector (FY2020) Core Private + Public State Employment Rank Employment Rank Employment Rank California 169,864 1 44,861 3 214,725 1 Texas 139,992 2 64,720 1 204,712 2 Florida 100,091 4 47,842 2 147,933 3 Washington 110,849 3 13,811 16 124,660 4 Georgia 56,569 5 33,080 4 89,649 5 Arizona 52,450 7 20,233 10 72,683 6 Ohio 36,038 9 30,667 6 66,705 7 Illinois 51,634 8 13,379 17 65,013 8 New York 53,595 6 11,093 21 64,688 9 Oklahoma 19,038 20 32,610 5 51,648 10 Colorado 30,481 12 21,005 8 51,486 11 Virginia 22,936 19 23,507 7 46,443 12 Kansas 34,988 10 7,751 29 42,739 13 North Carolina 29,515 13 11,333 20 40,848 14 New Jersey 26,340 15 13,242 19 39,582 15 Utah 16,767 23 20,478 9 37,245 16 Connecticut 34,226 11 1,525 48 35,751 17 Pennsylvania 27,852 14 7,290 31 35,142 18 Missouri 24,842 17 9,442 26 34,284 19 Massachusetts 24,026 18 9,047 28 33,073 20 Nevada 14,755 24 14,985 13 29,740 21 Michigan 25,437 16 3,813 41 29,250 22 Maryland 11,854 27 15,844 12 27,698 23 Alabama 17,232 21 9,310 27 26,542 24 South Carolina 10,422 29 14,974 14 25,396 25 Hawaii 12,663 25 10,329 22 22,992 26 Minnesota 16,996 22 5,435 36 22,431 27 Alaska 7,723 32 13,991 15 21,714 28 New Mexico 3,043 39 17,635 11 20,678 29 Indiana 12,612 26 5,047 40 17,659 30 Mississippi 3,378 36 13,255 18 16,633 31 Louisiana 5,682 34 10,044 23 15,726 32 Oregon 11,257 28 3,365 42 14,622 33 Tennessee 8,003 31 5,488 35 13,491 34 Nebraska 3,360 37 9,812 25 13,172 35 Arkansas 5,926 33 7,205 33 13,131 36 Kentucky 9,906 30 2,038 47 11,944 37 North Dakota 1,481 46 10,015 24 11,496 38 Delaware 1,419 47 7,216 32 8,635 39 Wisconsin 5,483 35 3,020 43 8,503 40 Idaho 2,854 41 5,616 34 8,470 41 Dist. of Columbia 139 51 7,326 30 7,465 42 Montana 1,915 44 5,258 39 7,173 43 South Dakota 734 48 5,376 38 6,110 44 Wyoming 720 49 5,382 37 6,102 45 Iowa 3,214 38 2,457 45 5,671 46 West Virginia 2,940 40 2,639 44 5,579 47 New Hampshire 2,460 43 2,066 46 4,526 48 Maine 2,644 42 1,419 49 4,063 49 Vermont 1,801 45 1,329 50 3,130 50 Rhode Island 645 50 1,302 51 1,947 51
United States 1,270,788 659,907 1,930,695
Source: Bureau of Labor Statistics (QCEW Survey), Census Bureau (County Business Patterns), Department of Defense Manpower Center, and Office of Personnel Management 45
Greater OKC Region Aerospace Industry – 2020
Similarly, Connecticut, Michigan, Minnesota, Indiana, Oregon, Iowa, Kentucky, West Virginia, Wisconsin, New Hampshire, Maine and Vermont all experience large declines in rank when public sector employment is considered. These states generally have little public sector aerospace employment. Both Connecticut and Michigan, two traditional aerospace states, are frequently ranked well ahead of Oklahoma based only on private sector employment but trail far behind based on combined employment.
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VII. Aerospace Economic Development Policy Aerospace Economic Development Incentives Along with the state, the Greater Oklahoma City area local government and economic development entities are committed to providing a highly supportive landscape for the aerospace sector. Aerospace has been identified in many policy studies as a targeted growth sector for the state and the Greater Oklahoma City region. The sector is viewed as highly compatible with current industry and labor force assets as well as the overall growth strategy of the region. The state most recently enacted the Oklahoma Aerospace Commerce Economic Services (ACES) program in 2018 to establish a common statewide goal for the growth of the state’s aerospace industry.23 The purpose of ACES is to create a partnership of service providers to respond more effectively to the needs of the aviation, aerospace, and defense industries in the areas of education, training, research, and economic development. The Greater Oklahoma City Chamber, in partnership with the City of Oklahoma City, Oklahoma County, member counties of the Greater Oklahoma City Partnership and The Alliance for Economic Development of Oklahoma City, actively recruits and supports the growth of existing aerospace firms. The organizations also partner to support the development and promotion of properties that provide runway access and resources for aerospace companies, as well as legislative issues that could positively impact the industry. Additionally, the Chamber maintains a team of business recruiters that focus on aerospace, as well as a specific on-staff liaison to federal, military and private sector aerospace organizations in the industry. The state of Oklahoma offers a range of financial incentives for aerospace firms choosing to relocate to or expand in Oklahoma.24 These include general programs available to employers in all industry sectors as well as targeted incentives designed specifically for the aerospace sector. Oklahoma Engineer Workforce Tax Credits The state currently offers an engineer tax credit that benefits both employees and employers in the aerospace sector (see Figure 17). Aerospace companies hiring engineers in a variety of fields can receive a tax credit
Figure 17. Oklahoma Engineer Workforce Tax Credit Employer Benefits: • New Engineer Graduates: • 50% Tax Credit for Reimbursed Tuition Costs • For First 4 Years of Employment • Hire Oklahoma Graduates: • Up to 10% of Wages Paid During First 5 Years of Employment • Maximum of $12,500 per Employee Annually • Hire Non-Oklahoma Graduates: • Up to 5% of Wages Paid During First 5 Years of Employment • Maximum of $12,500 per Employee Annually Employee Benefits: • Eligibility: Current Employed Aerospace Engineers • Eligible to Receive Individual Tax Credit • Up to $5,000 per Year for 5 Years
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Greater OKC Region Aerospace Industry – 2020 equal to 5% of the compensation paid to an engineer and 10% if the engineer graduated from an Oklahoma college or university, plus another credit of up to 50% of the tuition reimbursed to an employee. Additionally, the engineer hired can receive a personal income tax credit of $5,000 per year. Software/Cybersecurity Workforce Tax Credit The state offers a tax credit targeted at growing the number of software development and cybersecurity jobs in the state. The aerospace industry is increasingly dependent upon workers with skills in software design, cybersecurity, and other areas of information technology. Information technology-related occupations are numerous at Tinker AFB, the FAA Center and private sector employers. The tax credit provides up to $2,200 annually for qualifying employees who receive a degree from an accredited institution, or $1,800 annually for qualifying employees who are awarded a certificate from a technology center. To receive the credit, employees must meet strict educational requirements and obtain employment in a qualified industry for a qualified employer. The credit can be claimed for no more than seven years and cannot be claimed simultaneously by an individual claiming the tax credit for aerospace engineers. Aerospace and Aviation Education Programs Educational entities across the state and in the Greater Oklahoma City region are committed to supporting the development of the extensive range of skilled workers needed by the aerospace sector. A broad mix of aerospace-related education and training has long been provided by the state’s public and private universities and CareerTech system. These students receive general and specialized aerospace training for both blue- and white-collar occupations. As a result of these ongoing efforts, large numbers of graduates from the state’s universities and CareerTech technology centers continue to fill jobs in state aerospace firms. University of Oklahoma The University of Oklahoma (OU) remains at the forefront of aerospace and aviation education and is a key educational component of the aerospace and aviation industry in the Greater Oklahoma City region. Located just 30 minutes from downtown Oklahoma City, Tinker Air Force Base, Will Rogers World Airport and the FAA’s Monroney Aeronautical Center, OU is accessible for most aerospace workers and employers in the region. OU Aviation Studies. The OU Extended Campus School of Aviation Studies offers a bachelor’s degree with a major in aviation with four aviation concentrations – professional pilot, aviation management-flying, aviation management-nonflying and aviation management-air traffic control. The program is designed for students who plan to pursue a range of careers in aviation. The aviation curriculum is closely mapped to the needs and demands of the aviation industry and follows OU's general education guidelines. Destination 225° University Pathway. The Destination 225° University pathway is designed for collegiate aviators who attend a Southwest Airlines partner university or complete a Southwest Airlines Campus Reach Internship. The program provides a pathway for equipping participants with the skills to become a First Officer at Southwest Airlines. FAA Center of Excellence. In 2016, the FAA awarded a new Center of Excellence co-led by the University of Oklahoma, Wichita State University and Embry-Riddle Aeronautical University. The center’s academic members and its industry partners are responsible for conducting research and development on technical 48
Greater OKC Region Aerospace Industry – 2020 training for air traffic controllers, aviation safety inspectors, engineers, pilot, and technicians. The center represents a long-term cost-sharing partnership between academia, industry, and government. The project enables the FAA to work with center members to conduct research in airspace and airport planning and design, environment and aviation safety, as well as to engage in other efforts to assure a safe and efficient air transportation system. Aerospace Engineering. The School of Aerospace and Mechanical Engineering is one of seven schools within the Gallogly College of Engineering at the University of Oklahoma. The School offers both a Bachelor of Science (BS) and Master of Science (MS) in Aerospace Engineering, as well as a combined 5- year BS/MS in Aerospace Engineering. The School’s graduate division offers a Ph.D. degree in Aerospace Engineering. OU’s aerospace engineering program is the first in the nation with an emphasis on multidisciplinary Intelligent Aerospace Systems.
OU has enrolled approximately 200 students in its undergraduate aerospace engineering program the past five years and an additional 650 mechanical engineering students. Approximately 35 students were enrolled in the master’s programs and approximately 30 students in the Ph.D. programs in Aerospace and Mechanical Engineering in the past five years.
Other Aerospace-Related Engineering Fields. The Gallogly College of Engineering also offers both a Bachelor of Science (BS) and Master of Science (MS) degree in electrical and computer engineering. A Ph.D. degree in electrical and computer engineering is offered through the graduate division of the School of Electrical and Computer Engineering. The College provides both undergraduate and graduate degrees in several additional engineering fields with direct application in aerospace. These fields include Materials Engineering, Computer Science, Engineering Physics, Industrial Engineering and Telecommunications Engineering. Executive MBA in Aerospace and Defense. The Gene Rainbolt Graduate School of Business at the University of Oklahoma recently launched a new executive MBA program designed to develop the managerial and leadership skills of the aerospace and defense workforce. The program is based in Oklahoma City and allows students to complete the program in one year while working. Oklahoma State University Oklahoma State University (OSU) prepares both undergraduate and graduate students for a range of careers in aerospace-related industries. Aerospace Engineering. The OSU College of Engineering, Architecture and Technology offers undergraduate degrees in aerospace engineering. A dual degree option is offered with mechanical engineering with the possibility of graduating in four years. OSU also offers Master of Science and Ph.D. degrees in Aerospace Engineering. Other Aerospace-Related Engineering Fields. The School of Electrical and Computer Engineering at Oklahoma State University offers a Bachelor of Science in Electrical Engineering, a Bachelor of Science in Computer Engineering and a dual degree in both electrical and computer engineering. At the graduate level, the Master of Science in Electrical Engineering and Master of Engineering in Electrical Engineering are offered. The School also offers a robust Ph.D. program in Electrical Engineering to research-oriented graduate students.
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Other aerospace-related engineering at OSU offerings include undergraduate and graduate degrees in Materials Science and Engineering, Computer Science, Industrial Engineering and Mechanical Engineering. Aerospace Administration and Operations. OSU offers undergraduate students the Bachelor of Science in Aerospace Administration and Operations with four concentrations: 1. Aviation management - prepares students for management positions in the aerospace industry; 2. Aerospace security - prepares students for careers in aviation/aerospace security management fields; 3. Professional pilot - prepares students for careers in flight operations in both the general aviation and the air carrier segments of the aviation industry; and 4. Technical service management - builds on an individual's technical experience in aircraft maintenance or avionics to prepare students for management positions in all segments of the industry. Unmanned Systems Research Institute. The OSU College of Engineering, Architecture, and Technology is home to the Unmanned System Research Institute (USRI). USRI is a multidisciplinary and multi-institution research entity collaborating on developing future unmanned technologies, including land-based and underwater solutions. The FAA recently granted USRI the first approval in the U.S. to fly an unmanned fixed-wing aircraft swarm within national airspace.25 The Institute is fully integrated with the student learning experience at OSU. A student team recently designed and built a turbo-electric drone engine as part of a program sponsored by the U.S. Army.26 Defense contractor Navatek recently awarded a research grant to USRI to fund internships that will focus on the development and testing of new technologies for unmanned aircraft systems and related technology.27 OSU Discovery. Baker Hughes recently donated its research and innovation center in the Oklahoma City Innovation District to Oklahoma State University to foster a learning environment to benefit both students and industry professionals. The location of the facility in the Innovation District will unite higher education, research, energy, aerospace and advanced manufacturing in one location. OSU will collaborate with industry experts to grow its mechanical, industrial and aerospace engineering programs. The center will house hands-on learning opportunities in mechanical, aerospace, electrical, chemical and petroleum engineering that allow students to tackle real-world problems in a state-of-the-art facility. Oklahoma CareerTech CareerTech technology centers in the Greater Oklahoma City region offering aerospace programs include Canadian Valley, Francis Tuttle, Metro Tech, Gordon Cooper, Mid Del and Moore-Norman.28 These programs include an Aerospace Maintenance pathway with majors in aircraft electronics, aerospace technician, general aviation, airframe mechanic, power plant mechanic, aviation sheet metal technician and aviation composites technician. CareerTech recently introduced a STEM pathway for the Applied Engineer. Students are immersed in both engineering concepts and aerospace and aviation related applications. CareerTech also offers programs in Computer Science, Pre-Engineering and Robotics Engineering, with pathways to higher education. Other Aerospace Degree and Certificate Completion Options A range of additional aerospace related degree and certificate programs are currently offered at other public and private universities in the region. Many of these specialized degree options are targeted at aerospace firms and their employees. 50
Greater OKC Region Aerospace Industry – 2020
Oklahoma Christian University prepares workers for careers in aerospace through both undergraduate and graduate degree programs in electrical engineering and computer engineering. Emphasis options are available in software engineering along with minor fields in computer science, mathematics and software engineering. Many aerospace programs are joint offerings through Oklahoma education institutions. For example, through the Aviation Alliance at Tinker AFB, Langston University and the University of Oklahoma offer a baccalaureate degree program. The Oklahoma Department of Commerce recently established a Center of Excellence for Workforce Development for Aerospace and Cybersecurity with one of the sites designated at Rose State College in Midwest City near Tinker AFB. Metro Technology Centers and Rose State College recently announced a partnership to create life-long learning opportunities for students pursuing careers in the aerospace industry. Students who earn their FAA A&P Certificate through Metro Tech will qualify for credit hours toward an associate degree at Rose State College. Students have two aerospace options to choose from – an Associate in Applied Science (A.A.S.) degree or an Associate in Arts (A.A.) degree. Embry-Riddle Aeronautical University operates a branch campus near Tinker AFB where it offers a range of undergraduate and graduate degree and certification programs across multiple aerospace fields.
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VIII. Federal Procurement in Oklahoma Aerospace Federal contracting serves as a significant source of economic activity in Oklahoma, and a large portion of this activity is closely tied to aerospace. Much of the state’s aerospace contracting activity is concentrated in the Greater Oklahoma City region and primarily traced to Tinker Air Force Base and the U.S. Air Force. Measuring Procurement Activity Federal aerospace-related contracting is evaluated in this section from two distinct perspectives. The first focuses on contracting by those federal agencies whose mission is most closely tied to aerospace activity. Three federal agencies operating in the region are believed to have aerospace activity as its primary mission – Air Force, FAA and NASA. While this approach captures all the contracting activity related to these three major federal government entities with deep aerospace roots, there are two concerns with using this agency level approach. First, many purchases by the three agencies are unrelated, or only indirectly related, to the aerospace mission of each group. Second, many other agencies make smaller amounts of aerospace-related purchases of goods and services that are excluded using this approach. The second approach addresses this concern by examining only federal contracts for goods and services that have a direct tie to aerospace, regardless of the agency responsible for the contract. This approach is far more labor intensive but provides a more refined view of the amount of federal contracting directly related to aerospace activity. This approach, however, ignores the broader range of contract purchases made by these key aerospace-driven agencies and can understate their overall economic impact within the region. Contracting data in this section of the report primarily reflects contracts with a place of performance in the state of Oklahoma, or the Greater Oklahoma City region when noted. Contract values are based on annual action obligation amounts per contract on a fiscal year basis. The data presented highlight recent trends in federal contracting in the state and region, the distribution of funding by agency, the geographic distribution of vendors, and the largest contractors operating in the region. Total Procurement Activity Figure 18 illustrates the significant economic role played by federal contracting across the state and in the 10-county Greater Oklahoma City region. In fiscal year 2019, federal procurement contracts totaling $4.18 billion in current obligations were performed within Oklahoma. The state ranks 29th among the states in total federal contracting, roughly equal to the state’s rank as 28th in population. By geography, approximately 65% ($2.69 billion) of total state contracting activity is traced to the 10- county Greater Oklahoma City region. More than 90% ($2.46 billion) of the contracts issued in the 10- county region were performed in Oklahoma County alone. By major agency, the Department of Defense (DoD) is the largest federal contracting entity within the state. Nearly 80% ($3.31 billion) of the value of all contract work performed statewide in fiscal year 2019 was issued by DoD agencies. Among DoD departments, the Air Force remains the primary source of federal contracts. Air Force contracts totaled $1.88 billion in fiscal year 2019 and comprised 45% of total contracting in the state from all federal sources. Eighty-seven percent of all Air Force contract work in Oklahoma was performed in the 10-county Greater OKC region, with most of the remainder attributable to Vance and Altus Air Force bases.
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Greater OKC Region Aerospace Industry – 2020
Figure 18. Federal Procurement in Oklahoma by Major Department (FY2019) State of 10-County Oklahoma Federal Department Oklahoma OKC Region County Department of Defense: Air Force $1,881,359,647 $1,633,405,929 $1,601,158,980 Army 685,019,292 263,331,525 253,070,353 Navy 205,541,640 160,677,816 137,958,488 Defense Logistics Agcy. 125,616,520 59,215,042 49,023,165 Other Dept. of Defense 410,797,088 3,704,981 -1,685,678 Total Dept. of Defense $3,308,334,187 $2,120,335,293 $2,039,525,307
Non-Department of Defense: Agriculture 40,858,247 2,670,148 278,466 Commerce 16,857,379 15,731,393 154,153 General Services Admin. 78,912,046 30,871,668 6,209,697 Health and Human Services 82,701,155 40,722,692 22,072,525 Homeland Security 20,157,514 4,734,185 4,286,342 Housing and Urban Development 9,549,464 8,626,048 8,576,243 Interior 35,022,244 3,056,744 2,306,394 Justice 43,621,242 38,018,144 25,146,280 Labor 30,496,971 11,148,233 19,275 NASA 39,840,212 39,415,038 11,950 Transportation (including FAA) 329,591,799 317,713,463 302,919,234 Veterans 68,354,759 37,170,099 36,115,836 All Other Agencies 72,283,142 17,274,977 16,807,405 Total Non-Dept. of Defense $868,246,174 $567,152,833 $424,903,800
Total Procurement $4,176,580,361 $2,687,488,126 $2,464,429,107
Notes: Procurement by place of performance in Oklahoma, regardless of vendor location. Source: FPDS-NG and SAM.GOV
The DoD share of total contract value equals 79% ($2.12 billion) of total contracting in the 10-county region and 83% ($2.04 billion) of the total in Oklahoma County. Air Force contracts totaled $1.63 billion in the 10-county Greater Oklahoma City region and $1.60 billion in Oklahoma County. Trends in Greater OKC Region Federal Contracting. Total federal contracting in the 10-county Greater Oklahoma City Region is up substantially since the 2015 aerospace report (see Figure 19). The region is also outperforming national trends for federal contracting by key aerospace-related agencies. Total contracting in the region increased 37% from $1.96 billion to $2.69 billion in the period. The region’s gain slightly exceeded the 34% national gain in the period. Air Force contracting performed in the Greater OKC region increased 50.1% since the 2015 report, from $1.16 billion to $1.63 billion. This exceeds the 43% gain in Air Force contracting nationally in the period. FAA contracting in the region increased 50% since the 2015 report, rising from $210.7 million to $316.2 million. For comparison, national FAA contracting declined by 0.6% since the 2015 report. All other DoD contracting in the Greater Oklahoma City region has remained relatively flat since 2005.
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Greater OKC Region Aerospace Industry – 2020
Figure 19. Federal Procurement by Agency in Greater OKC Region (FY2005-FY2019) 3.5 Billions Total 3.0 Air Force Other Dept. of Defense 2.5 FAA
2.0
1.5
1.0
0.5
0.0 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Fiscal Year Source: FPDS-NG and SAM.GOV
Oklahoma Procurement by Aerospace-Related Agencies Figure 20 provides a multi-year overview of federal contracting activity by the Air Force, FAA, and NASA performed in the state and the Greater Oklahoma City area. The data provide historical measures in FY2005 and FY2010 as well as annual contracting amounts from FY2015 to FY2019. It is important to note that the methodology used in Figure 20 measures the total amount of contracting engaged in by the three aerospace-related agencies rather than purchases of goods and services used directly in aerospace applications regardless of the agency making the expenditure. This alternative approach to identifying federal aerospace contracts is evaluated in the following section of the report. Air Force, FAA, and NASA Procurement. Across the Air Force, FAA, and NASA, vendors in Oklahoma performed $2.24 billion in combined contracts in FY2019. Approximately $2.0 billion were performed in the Greater Oklahoma City region and $1.90 billion performed in Oklahoma County alone. Air Force. Air Force procurement of $1.88 billion is the dominant component of the FY2019 total. Air Force procurement declined in FY2019 from a recent high of $2.11 billion in FY2018 but remains well above prior trend levels. Air Force procurement doubled between FY2010 and FY2019 and increased 42% between FY2015 and FY2019. FAA. FAA procurement remains far smaller than Air Force activity but remains a critical component of total federal contracting in Oklahoma and the Greater Oklahoma City region. FAA contracts in Oklahoma reached a record high of $322 million in fiscal year 2019, a 45% increase from fiscal year 2015 and more than double the level from fiscal year 2010. Most of the FAA contracting activity was performed by vendors located in the 10-county region, primarily in Oklahoma County. NASA. A far smaller but mostly forward-looking dimension of federal procurement activity in the region is NASA contracting. Approximately $40 million in NASA contracts were performed in Oklahoma in fiscal year 2019. These contracts were fulfilled primarily in Cleveland County by the University of Oklahoma providing R&D services on a space observatory project. The issuance of NASA contracts in Oklahoma is 54
Greater OKC Region Aerospace Industry – 2020 a relatively recent event. Only small amounts of NASA contracts were active in Oklahoma prior to fiscal year 2017.
Figure 20. Oklahoma Procurement from Key Aerospace-Related Agencies
FY2005 FY2010 FY2015 FY2016 FY2017 FY2018 FY2019 Department State of Oklahoma Air Force 811,179,539 927,491,382 1,326,646,483 1,733,069,904 1,726,656,506 2,112,132,545 1,881,359,647 FAA 1,907,246 149,850,661 223,486,669 215,558,578 269,478,009 308,556,766 322,134,018 NASA 1,474,134 2,558,867 2,446,634 1,249,195 10,455,737 21,178,025 39,840,212 Total 814,560,918 1,079,900,911 1,552,579,785 1,949,877,676 2,006,590,252 2,441,867,337 2,243,333,877
Department 10-County Greater OKC Region Air Force 138,602,843 777,581,218 1,156,785,440 1,541,624,378 1,502,461,708 1,872,696,999 1,633,405,929 FAA 1,623,246 127,112,130 210,740,273 202,387,156 266,011,637 306,609,635 316,233,384 NASA 339,198 61,769 51,966 85,285 9,128,666 21,149,557 39,415,038 Total 140,565,286 904,755,117 1,367,577,679 1,744,096,820 1,777,602,012 2,200,456,191 1,989,054,351
Department Oklahoma County Air Force 138,568,503 772,995,384 1,149,877,059 1,517,831,394 1,475,348,144 1,850,200,615 1,601,158,980 FAA 1,623,246 122,926,565 204,563,952 198,235,741 244,003,195 256,027,930 301,584,067 NASA 26,018 44,259 18,226 13,984 6,810 55,455 11,950 Total 140,217,766 895,966,208 1,354,459,237 1,716,081,119 1,719,358,149 2,106,284,000 1,902,754,998
Source: FPDS-NG and SAM.GOV Notes: Includes purchases from each aerospace-related federal agency, regardless of the use of the good or service in direct aerospace activity.
State Rankings for Air Force, FAA, and NASA Procurement. Figure 21 provides comparative state rankings for contracting with each of the three key agencies and the combined total amount of contracting in FY2019. Oklahoma’s combined $2.24 billion in contracting for the Air Force, FAA, and NASA ranks the state 14th in FY2019. Oklahoma ranks 12th in Air Force contracting with $1.88 billion in FY2019. This primarily reflects the large size of the aerospace operation at Tinker AFB. The leading states in Air Force contracting are all large traditional defense industry states and home to major Air Force installations. California and Texas are the two largest Air Force contracting states by a substantial margin. Air Force contracting is concentrated primarily in 18 states, each with $1 billion or more in Air Force contracts in FY2019. Oklahoma ranks 4th in FAA contracting with $322 million in FY2019, traced largely to the presence of the FAA Center in Oklahoma City. Only the District of Columbia, Virginia, and Florida are home to more FAA contracting than Oklahoma. New Jersey, Massachusetts, Maryland and Kansas are the only other states to have approximately $100 million or more in FAA contracts in FY2019. Oklahoma ranks 19th in NASA contracting with $39.8 million in FY2019. This ranks well above the state’s relative position as the 28th most populous state. NASA contracting is dominated by California which is home to nearly one-third of the agency’s total contracting dollars in FY2019. Other large NASA contracting states include Alabama, Maryland, Colorado, Texas, Florida and Virginia. These states are all home to major NASA installations.
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Greater OKC Region Aerospace Industry – 2020
Figure 21. Federal Procurement for Key Aerospace-Related Agencies by State (FY2019) Air Force FAA NASA Total State Obligations Rank Obligations Rank Obligations Rank Obligations Rank California $11,233,345,397 1 $73,021,300 9 $4,515,617,816 1 $15,821,984,523 1 Texas 8,509,411,196 2 36,601,421 15 1,268,921,194 5 9,814,933,828 2 Virginia 5,639,817,935 3 575,933,912 2 952,284,211 7 7,168,036,064 3 Florida 4,687,439,685 5 424,908,753 3 1,187,305,410 6 6,299,653,856 4 Colorado 4,090,074,728 6 43,194,418 11 1,336,219,687 4 5,469,488,850 5 Missouri 4,800,736,893 4 7,469,036 27 29,434,615 21 4,837,640,575 6 Massachusetts 3,788,457,488 8 227,423,710 6 115,265,986 14 4,131,147,198 7 Washington 3,930,703,339 7 15,063,535 23 54,029,806 17 3,999,796,710 8 Maryland 1,693,951,978 13 189,579,048 7 1,515,047,142 3 3,398,578,188 9 Georgia 2,870,516,091 9 17,112,063 21 6,638,634 32 2,894,266,817 10 Alabama 1,204,996,729 16 2,611,258 35 1,554,633,208 2 2,762,241,246 11 Ohio 2,337,119,287 10 3,525,401 33 255,827,782 10 2,596,472,514 12 Connecticut 2,308,909,835 11 1,638,595 41 27,564,284 23 2,338,112,766 13 Oklahoma 1,881,359,647 12 322,134,018 4 39,840,212 19 2,243,333,893 14 Arizona 1,589,046,136 14 37,626,071 14 199,742,757 11 1,826,414,992 15 District of Columbia 322,627,588 30 1,032,927,029 1 126,794,943 13 1,482,349,591 16 Nevada 1,353,334,651 15 2,454,498 36 -23,708,437 51 1,332,080,763 17 Utah 1,015,405,092 18 7,147,370 28 300,658,494 9 1,323,211,003 18 Illinois 1,167,121,247 17 59,910,732 10 10,490,352 27 1,237,522,358 19 New York 857,491,698 19 38,745,872 13 132,032,409 12 1,028,270,010 20 Mississippi 576,874,637 24 1,858,969 40 421,364,733 8 1,000,098,403 21 New Jersey 571,593,663 25 319,136,539 5 17,484,808 25 908,215,040 22 Pennsylvania 809,819,224 20 20,799,474 18 63,282,310 16 893,901,046 23 Indiana 683,127,575 21 14,308,829 24 105,219,762 15 802,656,210 24 New Mexico 671,170,710 22 18,250,659 20 30,902,895 20 720,324,307 25 Alaska 585,658,432 23 36,475,510 16 10,165,345 28 632,299,326 26 New Hampshire 566,108,587 26 24,278,571 17 25,243,651 24 615,630,853 27 Nebraska 519,076,268 27 1,491,609 42 2,884,768 38 523,452,714 28 South Carolina 427,856,739 28 11,138,196 25 1,127,313 43 440,122,301 29 Tennessee 396,862,917 29 3,054,887 34 7,162,205 31 407,080,072 30 Kansas 193,316,124 35 93,465,310 8 10,066,295 29 296,847,772 31 Minnesota 241,192,785 32 20,422,424 19 4,322,534 35 265,937,794 32 Iowa 257,215,016 31 2,251,917 39 1,024,184 44 260,491,186 33 Michigan 230,612,407 33 15,488,192 22 14,311,845 26 260,412,499 34 Montana 199,151,156 34 4,122,176 31 2,398,002 40 205,671,398 35 North Carolina 132,859,941 37 38,881,429 12 5,324,114 34 177,065,533 36 West Virginia 131,622,957 38 -639,708 51 40,416,797 18 171,400,135 37 Hawaii 141,757,520 36 5,077,542 30 1,720,436 41 148,555,564 38 Louisiana 105,118,255 40 6,960,474 29 27,903,401 22 139,982,198 39 South Dakota 108,809,476 39 567,685 47 2,502,015 39 111,879,262 40 North Dakota 67,053,550 41 1,456,762 43 1,206,783 42 69,717,179 41 Idaho 56,788,112 42 1,453,523 44 433,751 50 58,675,472 42 Kentucky 48,354,999 44 3,558,895 32 3,907,798 36 55,821,767 43 Wyoming 52,053,353 43 337,588 48 916,520 47 53,307,552 44 Delaware 45,370,043 45 282,859 49 3,195,587 37 48,848,584 45 Arkansas 35,344,007 46 1,333,437 45 1,002,584 45 37,680,119 46 Oregon 25,589,866 47 2,409,108 37 6,484,830 33 34,483,888 47 Wisconsin 15,562,553 48 9,256,338 26 8,229,815 30 33,048,780 48 Vermont 8,618,120 49 79,720 50 869,438 48 9,567,377 49 Rhode Island 6,428,417 50 763,434 46 974,317 46 8,166,264 50 Maine 992,930 51 2,384,001 38 464,130 49 3,841,151 51
United States $73,171,895,131 $3,779,734,389 $14,427,153,470 $91,378,782,990
Source: SAM.GOV 56
Greater OKC Region Aerospace Industry – 2020
Oklahoma Procurement of Aerospace-Specific Goods and Services A second approach to measuring aerospace related federal contracting is to identify purchases of goods and services that are used directly in aerospace-related activities, regardless of the agency making the purchase. Again, this approach overcomes two concerns with the procurement data as tabulated in the prior section and provides a more direct measure of federal procurement for aerospace-related goods and services rather than aerospace-related agencies. Determining the exact amount of federal purchases of aerospace goods and services involves a detailed examination of each federal contract performed within Oklahoma. In fiscal year 2019, this involves 45,416 individual action obligation orders.29 The task is simplified by using readily identifiable NAICS codes and product or service descriptions specifically related to aerospace. All NAICS codes and descriptions believed to be only loosely related to aerospace are excluded. Aerospace-related codes and descriptions are used to identify action obligation orders for goods and services valued at $1.92 billion statewide in fiscal year 2019 (see Figure 22). This is about 14% less than the $2.24 billion in total expenditures by the Air Force, FAA, and NASA in fiscal year 2019 in the prior section of the report. Figure 22 summarizes the purchases of aerospace goods and services by contracting agency, share of total contracting, and share of aerospace contracts fulfilled by Oklahoma-based vendors in fiscal year 2019.
Figure 22. Oklahoma Aerospace-Specific Federal Procurement (FY2019) State of 10-County Oklahoma Federal Agency Oklahoma Region County Air Force $1,339,615,702 $1,181,492,782 $1,174,370,920
FAA 85,937,004 82,804,018 81,798,188
NASA 39,347,596 39,163,494 11,950
Other Department of Defense 444,128,571 303,194,011 284,703,144 All Other Federal Agencies 13,924,187 9,875,617 7,958,364 Total Aerospace-Related $1,922,953,060 $1,616,529,923 $1,548,842,565
Total Procurement $4,176,580,361 $2,687,488,126 $2,464,429,107
Aerospace Share 46.0% 60.2% 62.8% of Total Procurement Total Aerospace Procurement Performed by $1,411,663,698 $1,227,029,064 $1,162,127,493 Oklahoma-based vendors
Share of Aerospace-Related Procurement Performed by 73.4% 75.9% 75.0% Oklahoma-based vendors
Notes: Aerospace-related procurement is determined by examining NAICS industry codes and product or service descriptions for each contract with an action obligation in fiscal year 2019. Contracts deemed issued to Oklahoma-based vendors specify an operating entity with an address located in Oklahoma.
Source: FPDS-NG and SAM.GOV and RegionTrack calculations 57
Greater OKC Region Aerospace Industry – 2020
The contracts identified capture a range of goods and services including aircraft maintenance and repair, tools, parts, equipment, machinery, fuel, research and development, and construction projects related directly to aviation. Yet other contracts provide federal funding for municipal airports, aviation training, aviation-related human research, and other non-military applications. The contracts identified as specifically for aerospace goods and services account for slightly less than half (46.0%) of the total value of procurement activity of $4.18 billion in the state in fiscal year 2019. Approximately three-fourths of the contracting work was performed by Oklahoma-based vendors. Of the $1.92 billion in total aerospace-related contracting, 73.4 % ($1.41 billion) was performed by vendors with an operating address in Oklahoma. For the 10-county Greater Oklahoma City region, contracts valued at $1.62 billion were identified as procuring goods and services directly used in aerospace applications. Approximately 60% of the value of all contracts issued in the 10-county region is traced to aerospace; 75.9% of the value of total aerospace contracts is traced to vendors with an operating address in Oklahoma. For Oklahoma County, contracts for direct aerospace goods and services were valued at $1.14 billion, or 62.8% of the value of total procurement in the county in fiscal year 2019. Seventy-five percent of the aerospace-related contracts in Oklahoma County were performed by vendors located in Oklahoma.
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Greater OKC Region Aerospace Industry – 2020
Aerospace-Specific Federal Procurement Across the 10-County Region Although Oklahoma County dominates aerospace contracting activity within the 10-county region, several smaller yet significant pockets of activity are visible within the federal procurement data. Figure 23 details the distribution of federal aerospace-related contracting activity by city in each of the 10 counties in the Greater Oklahoma City region. The estimates reflect the $1.62 billion in federal spending on goods and services that are directly related to aerospace activity, regardless of Figure 23. Aerospace-Specific Federal Procurement by the contracting federal agency. County (FY2019) Aerospace Aerospace In Oklahoma County, the city of Total Federal & Aviation- & Aviation Oklahoma City accounts for more than Region Procurement Related Share 96% ($1.50 billion) of county-wide State of Oklahoma $4,176,580,361 $1,922,953,060 46.0% aerospace-specific federal contracting. An 10-County Region $2,687,488,126 $1,616,529,923 60.2% additional $38.9 million is performed in Canadian County 20,466,675 292,558 1.4% Edmond and $14.2 million at Tinker Air Mustang 1,560,772 24,600 1.6% Force Base. Limited aerospace Piedmont 277,300 267,958 96.6% contracting is present in other cities within Other 18,628,602 0 0.0% Oklahoma county. Cleveland County 104,011,246 52,794,752 50.8% Cleveland County is home to the largest Moore 578,528 578,528 100.0% Norman 94,987,104 49,637,738 52.3% concentration of aerospace-specific Oklahoma City 7,391,158 2,578,486 34.9% activities in the region outside of Other 1,054,457 0 0.0% Oklahoma County. Contracts awarded to Grady County 24,851,856 0 0.0% firms in Norman, Moore, and the Kingfisher County 15,073,692 0 0.0% Oklahoma City portion of Cleveland County totaled nearly $53 million in Lincoln County 1,378,431 1,039,741 75.4% FY2019. This activity represents half Stroud 1,041,541 1,039,741 99.8% Other 336,890 0 0.0% (50.8%) of all federal contracts performed by firms in the county in the period. Logan County 12,471,497 2,176,253 17.4% Guthrie 12,345,866 2,176,253 17.6% Firms located in Shawnee in Other 125,631 0 0.0%
Pottawatomie County received a total of McClain County 291,298 0 0.0% $6.3 million in federal aerospace- specific Oklahoma County 2,464,430,625 1,548,842,565 62.8% contracts in FY2019. Vendors in Edmond 51,614,405 38,925,274 75.4% Stillwater in Payne County were awarded Moore 212,114 212,114 100.0% $5.1 million in contracts. Oklahoma City 2,248,506,404 1,495,553,748 66.5% Tinker AFB 162,409,787 14,151,429 8.7% Other cities with aerospace-specific firms Other 1,687,916 0 0.0% securing smaller federal contracts in 35,165,979 5,057,598 14.4% FY2019 include Stroud in Lincoln County Payne County Stillwater 34,964,847 5,057,598 14.5% ($1.0 million), Guthrie in Logan County Other 201,131 0 0.0% ($2.2 million), and Piedmont in Canadian Pottawatomie County 9,348,345 6,326,458 67.7% County ($268,000). Shawnee 8,978,792 6,326,458 70.5% Other 369,553 0 0.0% No vendors in Grady, Kingfisher, and McClain counties received any federal Source: FPDS-NG and SAM.GOV and RegionTrack calculations aerospace-specific contract awards in FY2019. 59
Greater OKC Region Aerospace Industry – 2020
Largest Aerospace Vendors in the Greater OKC Region The Greater Oklahoma City region has a large and diverse group of firms engaged in federal aerospace contracting. Figure 24 lists the top 25 vendors to the Air Force, FAA, and NASA for contracts with a place of performance within the 10-county Greater Oklahoma City region in FY2019. The top 25 vendors were awarded 83% ($1.65 billion) of the $1.99 billion in total contracts issued by the Air Force, FAA, and NASA in the period. The Figure 24. Largest Air Force/FAA/NASA Vendors in average contract value for the top 25 vendors is the 10-County Greater OKC Region (FY2019) more than $140 million but is heavily influenced Contract by Boeing’s dominant share of total contracts. Rank Vendor Name Value The remaining 955 aerospace vendors received 1 The Boeing Company $1,105,026,446 only 17% of total aerospace contracts with a 2 Afognak Native Corporation 57,467,350 combined value of $336.0 million in FY2019. 3 Bering Straits Native Corporation 44,270,094 The average contract value for these vendors was 4 Robinson Aviation (RVA) Inc. 40,796,906 $351,800. 5 University of Oklahoma 39,551,544 6 Mowa-Barlovento 38,336,388 Boeing is the largest single contracting entity to 7 ASRC Federal System Solutions LLC 38,025,483 the three federal agencies in the 10-county region 8 Flintco LLC 36,953,991 and the largest single federal contractor in the 9 Indigenous Technologies LLC 26,292,217 state. Boeing’s total obligation value of $1.11 10 Strategic Mission Systems LLC 20,340,158 billion in FY2019 is roughly 56% of all 11 Advanced Construction Services Inc. 19,722,664 contracting performed for the Air Force, FAA, 12 Science Applications International Corp. 18,418,652 and NASA in the 10-county region in FY2019. It 13 Delaware Resource Group of OK LLC 17,810,626 is also more than one-fourth of all contracting 14 CDW Corporation 17,267,494 performed statewide for all federal agencies. 15 Northrop Grumman Corporation 16,123,295 16 Dale Rogers Training Center Inc. 15,098,198 Much of the overall rise in total federal 17 Gideon Contracting Limited Liability Co. 14,984,411 contracting in the Greater OKC region since 18 Unicom Government Inc. 13,719,605 FY2015 is traced to the expansion of Boeing’s 19 OGE Energy Corp. 11,930,280 activities at Tinker AFB. Boeing’s federal 20 KBR Inc. 11,299,846 contracting activity for the Air Force, FAA, and 21 Tehama LLC and HDR Joint Venture 11,119,536 NASA has increased 76% since FY2015, rising 22 AECOM Technology Corporation 10,314,585 from $628.7 million to $1.11 billion. 23 Objectstream Inc. 9,630,173 24 Long Wave Inc. 9,624,813 Other traditional aerospace contractors such as 25 Leader Communications Inc. 8,945,125 Robinson Aviation ($40.8 million) and Northrop Top 25 Vendors $1,653,069,881
Grumman ($16.1 million) largely specialize in $335,984,471 All Other Vendors aircraft MRO services. $1,989,054,351 All Vendors
Other firms among the top 25 vendors in the 10- county Greater Oklahoma City region include Notes: Includes only contracts issued by the Air Force, FAA, and NASA Source: FPDS-NG and SAM.GOV and RegionTrack calculations construction companies, training companies, engineering firms, logistics companies, energy providers, and contracting consultants.
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Greater OKC Region Aerospace Industry – 2020
IX. Economic Impact of Aerospace The direct activity of the 291 aerospace establishments identified as operating in the Greater Oklahoma City region generates substantial economic ripple, or spillover, effects in other industry sectors across the region. High average wages, the capital-intensive nature of the industry, a substantial use of high-skilled labor, extensive training and education requirements, and the natural clustering of aerospace companies in the region all work to create strong economic linkages between the industry and the broader regional economy. Measuring Economic Spillover Effects from Aerospace The spillover economic impact these aerospace establishments have on the region can be estimated in terms of additional jobs, labor income, and output of goods and services supported in other industries in the region. Economic impact multipliers are commonly used to estimate the effect of a change in economic activity in a given industry on the broader regional or national economy.30 Most economic impact multipliers are derived from a detailed input-output model of a regional economy that maps the various spending flows between firms, households, and governments.31 It is important to note that economic multipliers in this report represent estimates of gross economic effects and do not account for any public or private costs associated with the aerospace sector. Employment multipliers provide an estimate of the number of jobs generated in the Greater Oklahoma City regional economy as new jobs are added in the aerospace sector. Similarly, labor income multipliers provide an estimate of the amount of additional household earnings generated in the broader economy per new dollar of labor income received by aerospace employees. Output multipliers provide an estimate of the change in output in the Greater Oklahoma City area economy per dollar of new output (or revenue) generated within the aerospace industry. In interpreting multipliers, a given change in economic activity taking place within the aerospace industry is deemed the direct effect. Direct effects include the employment, labor income, and output of goods and services generated directly by the 291 aerospace firms and their employees in the Greater Oklahoma City region. The direct effect, in turn, produces both indirect and induced spillover effects which are estimated using multipliers. The indirect effects are the employment, income, and goods and services generated as a result of aerospace establishments making purchases from firms in other industries within the region. The induced effects describe the economic activity generated by new household spending resulting from compensation generated from both the direct and indirect effects. The key mechanisms behind the indirect and induced, or spillover, effects are the purchases made by aerospace establishments from other businesses in the region and the spending of earned income within the region by aerospace workers. The direct, indirect, and induced effects provide a convenient way of describing the overall multiplier effects that occur as establishments in the aerospace industry produce goods and services (direct effects), then impact those firms that support and supply the sector (indirect effects), and then finally impact the broader regional economy as worker’s incomes and spending patterns are affected (induced effects). Estimated Effects. Figure 25 provides estimates of economic multiplier effects generated in the Greater Oklahoma City economy from direct activity in the aerospace industry in 2020. Again, these are gross
61
Greater OKC Region Aerospace Industry – 2020 measures of economic spillover and do not account for any public or private costs to the region (including incentives) associated with the aerospace sector.
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Figure 25. Greater OKC Region Aerospace Industry Economic Impacts (2020) Direct Effect Labor Income Output
Major Group Employment ($Mil) ($Mil)
Government 32,554 $2,385.2 $4,436.0 Tinker Air Force Base (military, federal civilian, and contractors) 26,029 $1,755.6 $3,229.5 FAA Mike Monroney Aeronautical Center 5,159 563.5 1,105.7 All Other Government (federal, state, and local) 1,366 66.1 100.8 Maintenance, Repair, and Overhaul (MRO) 4,668 509.0 1,472.4 Engineering, Consulting, Program Management, and Logistics 2,901 275.2 617.9 Air Transportation (Airports, aircraft sales, and air travel) 1,942 142.1 443.3 Supplies and Materials 912 71.1 221.6 Education and Training 181 10.7 21.9 Manufacturing 47 4.0 14.4 Other (spraying, aerial services, and other) 47 2.7 6.1 Total Direct Effects 43,252 $3,400.0 $7,233.6
Multiplier Effects (Indirect + Induced) Labor Income Output Major Group Employment ($Mil) ($Mil) Government 23,585 $1,405.9 $2,236.5 Tinker Air Force Base (military, federal civilian, and contractors) 18,741 1,035.8 1,711.6 FAA Mike Monroney Aeronautical Center 4,024 332.5 475.5 All Other Government (federal, state, and local) 820 37.7 49.4 Maintenance, Repair, and Overhaul (MRO) 2,474 468.3 1,281.0 Engineering, Consulting, Program Management, and Logistics 4,497 335.8 352.2 Air Transportation (Airports, aircraft sales, and air travel) 2,486 125.1 323.6 Supplies and Materials 629 50.5 146.2 Education and Training 89 5.6 9.0 Manufacturing 80 6.3 11.8 Other (spraying, aerial services, and other) 14 1.0 1.3 Total Indirect and Induced Effect 33,853 $2,398.4 $4,361.7
Total Effects (Direct + Indirect + Induced) Labor Income Output Major Group Employment ($Mil) ($Mil)
Government 56,139 $3,791.2 $6,672.5 Tinker Air Force Base (military, federal civilian, and contractors) 44,770 2,791.4 4,941.1 FAA Mike Monroney Aeronautical Center 9,183 896.0 1,581.2 All Other Government (federal, state, and local) 2,186 103.8 150.2 Maintenance, Repair, and Overhaul (MRO) 7,142 977.3 2,753.5 Engineering, Consulting, Program Management, and Logistics 7,398 611.0 970.1 Air Transportation (Airports, aircraft sales, and air travel) 4,428 267.2 766.9 Supplies and Materials 1,541 121.6 367.8 Education and Training 270 16.3 30.9 Manufacturing 127 10.3 26.2 Other (spraying, aerial services, and other) 61 3.7 7.4 Total Effects (Direct + Indirect + Induced) 77,105 $5,798.4 $11,595.2
Source: IMPLAN Input-Output Model and RegionTrack calculations 63
Greater OKC Region Aerospace Industry – 2020
In terms of direct employment, 43,252 workers in the region are employed directly in aerospace, with the majority employed in public sector positions at Tinker AFB and the FAA Center. These workers indirectly support an additional 33,853 jobs across the Greater Oklahoma City region (the sum of indirect and induced employment). In total, an estimated 77,105 jobs in the region are provided either directly by the aerospace sector or supported indirectly through multiplier effects generated by the industry. In other words, each direct job in the aerospace sector supports approximately 0.8 additional jobs in the broader regional economy. The $3.4 billion in direct labor income paid to aerospace workers likewise generates substantial ripple effects as the income is earned and recirculated within the regional economy. The estimates in Figure 25 indicate that an additional $2.4 billion in labor income earned by workers in other industries statewide is supported by direct activity in the aerospace sector, or a total earnings impact of $5.8 billion in the region. Each dollar of labor income earned by workers in aerospace supports an addition $0.70 in labor income in the 10-county region across all industry sectors. The output of goods and services in the region is similarly stimulated by the presence of the industry. The multiplier effects in Figure 25 indicate that aerospace establishments in the region generate an estimated $7.2 billion in direct output of goods and services, resulting in estimated multiplier effects (both indirect and induced) of $4.4 billion in additional output of goods and services in other industries in the region. Overall, either directly or indirectly through multiplier effects, aerospace activity in the Greater Oklahoma City region supports the production of $11.6 billion in total output of goods and services in 2020. This suggests that each dollar of output produced directly by the aerospace sector generates an additional $0.60 in spillover output across the region. Growth in Total Impact. The total direct and spillover effects traced to the aerospace industry are far larger than in the 2015 report. The total employment effect of aerospace in the region increased from 67,583 to 77,105, a 14% increase the past five years. The total labor income effect increased by more than $1.5 billion, from $4.06 billion to $5.8 billion, or a 43% increase. Total output traced to the aerospace sector increased by 43% since 2015, from $8.16 billion to $11.6 billion. Estimated Tax Effects The activities of the aerospace industry in turn produce significant additional tax revenue for state and local governments in the region. Revenue estimates are detailed in Figure 26 and reflect estimates of tax payments made directly by firms in the aerospace industry and their workers. Estimates include taxes paid on the purchases of taxable goods subject to both sales and use tax, motor vehicles, and real and personal property. The tax estimates are estimated using an IMPLAN input-output model for the 10-county Greater Oklahoma City region and estimates of tax shares from the Oklahoma Tax Commission. The tax scenario is based on the labor income specified at the IMPLAN industry level for each of the major groups comprising the aerospace industry.32 In total, the activity generated directly by the industry produces an estimated $300.3 million in tax payments to state and local government in 2020. This equates to approximately 4.1% of total direct output generated by the industry. Again, it is important to note that the estimated tax effects are gross measures and do not account for public or private costs associated with the aerospace sector such as tax exemptions or incentives.33 The largest source of tax revenue is an estimated $159 million in sales and use tax revenue, which comprises a little more than half the total tax revenue generated by the aerospace sector. Sales and use tax revenue
64
Greater OKC Region Aerospace Industry – 2020 received by the state is 30% ($90 million) of total revenue while sales and use tax received by local taxing jurisdictions ($69 million) is 23% of total taxes generated. The second largest source of revenue is personal income tax payments to state government of approximately $114 million, or more than one-third of total taxes generated. Personal income taxes represent approximately 3.4% of the estimated $3.42 billion in total annual labor income earned directly by workers in the aerospace industry. Motor vehicle taxes received by the state total an estimated $8.7 million, or 3% of total taxes generated by the sector. Real and personal property taxes to local government total an estimated $12.2 million in 2020. Corporate income tax is the smallest source of added tax revenue and generates an estimated $4.4 million in 2020.
Figure 26. Estimated State & Local Tax Revenue - Aerospace Activity (2020)
Tax Revenue % of Total Type of Tax ($Mil) Tax Revenue
Personal Income Tax $114.2 38.3% Corporate Income Tax 4.4 1.5% Motor Vehicle Tax 8.7 2.9% Real and Personal Property Tax 12.2 4.1%
Sales and Use Tax:
State 89.8 30.1%
Local 69.1 23.2% Total Sales and Use Tax $158.9 53.2%
Total State and Local Tax Revenue $298.4 100.0%
Source: Bureau of Economic Analysis, IMPLAN Input-Output Model, Oklahoma Tax Commission, and RegionTrack estimates
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Greater OKC Region Aerospace Industry – 2020
X. Endnotes
1 The Oklahoma Historical Society provides an overview of the history of aerospace and aviation activity in Oklahoma. See: https://www.okhistory.org/publications/enc/entry.php?entry=AV004 2 See: Greater Oklahoma City Region Aerospace Industry - Industry Survey and Economic Impact Assessment. Greater Oklahoma City Chamber and RegionTrack Inc. June 2016. 3 The U.S. Dept. of Defense (DoD) defines aerospace as of, or pertaining to, Earth's envelope of atmosphere and the space above it; two separate entities considered as a single realm for activity in launching, guidance, and control of vehicles that will travel in both entities. See the DoD Dictionary of Military Terms, U.S. Department of Defense: http://www.dtic.mil/doctrine/dod_dictionary/. 4 Kingfisher, Payne, and Pottawatomie Counties are not component counties of the Oklahoma City Metropolitan Statistical Area (MSA) as defined by the Census Bureau. 5 Aerospace establishments are initially identified using the September 2020 version of the DataAxel U.S. Business database for the 10- county Greater Oklahoma City region. Other proprietary databases including SalesForce and D&B Hoovers are used to identify firms and collect contact information. Other industry information was gathered locally by RegionTrack economists, Greater Oklahoma City Chamber staff, and members of the Greater Oklahoma City Partnership. 6 See, for example, state reports for: Kentucky (https://kcma.ky.gov/Documents/2017%20Kentucky%20Aerospace%20- %20Aviation%20Study.pdf); Georgia (https://www.georgia.org/sites/default/files/wp-uploads/2016/11/Economic-Impact-of-aerospace-2015- 7.24.17-FINAL.pdf), and Florida (https://commons.erau.edu/edt/51/). 7 The estimates largely reflect activity in place in early 2020 prior to the onset of the pandemic. 8 See: https://www.tinker.af.mil/About-Us/Fact-Sheets/Display/Article/384764/oklahoma-city-air-logistics-complex/
9 The estimates in Figure 7 are derived from the Office of Management Personnel reports while other estimates are provided by Tinker AFB. 10 See: Tinker Air Force Base Fiscal Year 2021/2022 Hiring Forecast. Available from the Tinker Air Force Base Civilian Personnel Office. The forecast covers external hires in Air Force activities at Tinker Air Force Base (AFB) in Fiscal Years (FY) 2021 and 2022 (1 October 2020 through 30 September 2022). It does not include hiring in other federal agencies located at Tinker AFB, i.e., Defense Information Systems Agency, Defense Logistics Agency, Department of the Navy or private sector contractors performing work at Tinker AFB. It also does not project employment for Non-Appropriated Fund Activity (NAF) facilities at Tinker AFB including, bowling centers, golf courses, community centers, and arts and crafts activities. 11 See: http://www.okenergytoday.com/2020/08/more-jobs-expected-as-result-of-kc-46-tanker-expansion-at-tinker-afb/ 12 The lease provides for the use of the property and structures and includes some ongoing maintenance and repair of structures. See: https://www.transportation.gov/sites/dot.gov/files/docs/mission/budget/304496/faa-fy2019cj-budgetfinal508compliant.pdf 13 Detailed employment by occupation data is available only for the approximately 3,100 federal civilian employees at the FAA Center. 14 See: https://www.industryweek.com/the-economy/public-policy/article/21956178/oklahoma-in-a-prime-position-for-aerospace-growth 15 See: https://gthokc.com/california-group-buys-boeing-okc-campus-for-125-million/; and https://www.prnewswire.com/news- releases/boeing-okc-campus-sells-to-california-investors-300983183.html 16 See: https://www.boeing.com/company/general-info/#/state. Employment numbers include all full-time and part-time employees, contingent labor, employees on leaves of absence 90 days or less, and the workforce of our subsidiary businesses. Numbers are net of additions and reductions. 17 For the State, Army and Air National Guard forces are commanded by the Governor through the state Adjutant General. State missions may include helping communities deal with floods, tornadoes, hurricanes, wildfires, and security support in times of civil unrest. For federal missions, the Army and Air National Guard can be activated by the President of the United States and are then commanded by the combatant commander for their designated operating theatre. 18 A map of SBA HUBZones is available online at: https://maps.certify.sba.gov/hubzone/map#center=39.828200,-98.579500&zoom=5 19 Metropolitan area wage rates are reported from the 2019 release of the Occupational Employment Statistics by the Bureau of Labor Statistics (BLS).
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Greater OKC Region Aerospace Industry – 2020
20 Data are annual averages derived primarily from the Bureau of Labor Statistics Quarterly Census of Employment and Wages (QCEW) program. Where QCEW data is suppressed, estimates are informed by data in the Census County Business Patterns survey and raked to match national totals. 21 Source: Interactive Demographic Analysis System (IDEAS) - Air Force Personnel Center 22 No centralized data source is available to identify non-appropriated federal workers at FAA facilities. 23 See the text of House Bill 2578 online at: http://webserver1.lsb.state.ok.us/cf_pdf/2017-18%20ENR/hB/HB2578%20ENR.PDF 24 See: https://www.okcommerce.gov/doing-business/business-relocation-expansion/incentives/ 25 https://news.okstate.edu/articles/engineering-architecture- technology/2019/osus_usri_receives_first_faa_authorization_to_fly_in_swarms.html 26 https://oklahoman.com/article/5672125/osu-students-design-and-build-innovative-engine-for-drones 27 https://news.okstate.edu/articles/communications/2020/osu-partners-with-navatek-to-create-unmanned-systems-research-internship- program.html 28 Moore Norman Technology Center has announced plans to offer an Aviation Maintenance Technician program beginning in 2022. 29 The estimates include all procurement contracts with an action obligation declared in fiscal year 2019 and with place of performance in Oklahoma are included. 30 Caution must be exercised when using input-output multipliers to estimate the total economic activity “supported” by an existing industry or firm. Input-output multipliers are intended to predict the change in region-wide economic activity that results from an incremental change in a given industry within a regional economy. 31 State- and region-level multipliers are typically estimated by adjusting, or regionalizing, national purchasing patterns for a given industry sector such that they better reflect the actual economic flows within the states. 32 Labor income is specified individually for Tinker AFB and the FAA Center in the model using military-federal government and non- military federal government, respectively. Other government providers are assumed to reflect non-military federal government activity. The remaining sectors are specified using the most representative IMPLAN industry sector. 33 For example, the tax estimates are not adjusted for the state Aerospace Industry Engineer Workforce Tax Credit (for either employers or employees) or other state tax credits the firms may be eligible for.
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PLACEHOLDER - FOR PRESENTATION OCEDT Agenda Item No. VI. 4/27/2021
GENERAL MANAGER REPORT
DATE: April 27, 2021
TO: Chairman and Trustees of the Oklahoma City Economic Development Trust
SUBJECT Monthly Report as of March 31, 2021
Please find the attached Monthly Report as of March 31, 2021. Monthly interest may or may not have been posted at the time the Monthly Report was completed. The amounts reflected in the report are unaudited and are subject to post-audit adjustments. Staff will be available if you have any questions.
Monthly Report As of March 31, 2021
2
STRATEGIC INVESTMENT PROGRAM General Obligation Limited Tax Bonds
PROJECT SCORECARD AS OF MARCH 31, 2021
Strategic Investment Summary as of March 31, 2021
# of GOLT Estimated Payments to Project Name Jobs Allocation Estimated Payroll Investment Date Jobs to Date Current - Active Projects Paycom #2 667 $1,250,000 $26,426,540 $11,800,000 $1,224,000 660 General Electric 133 $1,750,000 $13,499,500 $53,000,000 $577,500 85 Tapstone Energy 150 $1,450,000 $21,919,950 $10,000,000 $636,750 78 Sutherland Global 123 $250,000 $4,900,812 $1,500,000 $0 0 BNSF/KC-46A 1,321 $23,500,000 $81,902,000 $500,000,000 $23,500,000 0 Boeing #3 900 $6,000,000 $89,100,000 $80,000,000 $2,839,550 720 Progrexion 534 $600,000 $15,815,500 $2,500,000 $295,700 155 NLLG 500 $500,000 $24,117,000 $200,000 $18,000 36 Med XM 400 $500,000 $14,100,000 $2,000,000 $0 0 M-D 105 $157,500 $3,772,755 $11,875,000 $0 0 McClarin Plastics 58 $80,000 $2,068,686 $600,000 $0 0 Niagara Bottling 45 $225,000 $1,900,000 $50,000,000 $0 0 North American ATK Corp 76 $75,000 $3,260,020 $2,263,000 $5,850 13 SkyWest 375 $2,000,000 $23,000,000 $29,000,000 $0 0 American Tissue Industries 84 $125,000 $2,892,165 $37,000,000 $0 0 Duracoats Holdings 49 $100,000 $2,700,000 $6,000,000 $3,600 4 CACI -Inc.-Federal 550 $1,250,000 $35,000,000 $6,000,000 $0 0 Kratos 350 $900,000 $24,172,136 $8,000,000 $8,800 11 Rural Sourcing 150 $450,000 $11,742,000 $1,500,000 $29,600 37 Amazon(1) 1,750 $1,700,000 $35,659,000 $140,000,000 $0 0 Heartland Payment 345 $1,000,000 $19,023,990 $10,030,000 $0 0 Booz Allen Hamilton 130 $250,000 $11,000,000 $800,000 $0 0 TTEC 283 $500,000 $11,032,755 $4,000,000 $0 0 Bakery Bling 300 $400,000 $14,242,500 $4,350,000 $0 0 Costco 1,503 $3,000,000 $80,975,000 $25,000,000 $0 0 Skydweller Aero(2) 75 $275,000 $6,500,000 $475,000 $0 0 Corken Incorporated 120 $300,000 $6,688,328 $2,000,000 $0 0 Total - Active Projects 11,076 $48,587,500 $587,410,637 $999,893,000 $29,139,350 1,799
Total - All Projects 17,983 76,135,999 1,009,751,103 1,270,150,000 53,807,608 6,492
(1)Incentive amount is for 53 management jobs. (2) EDA is pending.
Per the BLS Quarterly Census of Employment and Wages, the 2019 OKC MSA average annual wages were $50,971.
3
PROJECT STATUS AS OF MARCH 31, 2021
Jobs Annual Average GOLT Incentive BOEING # 3 (900) Created Payroll Salary Payment Balance Fiscal Year 1 (2015) 161 $21,988,635 $136,575 $201,250 $5,798,750 Fiscal Year 2 (2016) 480 $58,088,102 $121,017 $576,000 $5,222,750 Fiscal Year 3 (2017) 480 $60,204,095 $125,425 $552,000 $4,670,750 Fiscal Year 4 (2018) 787 $77,778,301 $98,829 $718,300 $3,952,450 Fiscal Year 5 (2019) 720 $92,641,528 $99,937 $792,000 $3,160,450 Status: Boeing #3 finished the fifth contract year with 720 new jobs. Fiscal Year 5 payment in the amount of $792,000 was made in March 2020.
Jobs Annual Average GOLT Incentive TAPSTONE ENERGY (150) Created Payroll Salary Payment Balance Fiscal Year 1 (2014) 20 $3,543,474 $172,867 $60,000 $1,390,000 Fiscal Year 2 (2015) 48 $7,152,594 $147,985 $120,000 $1,270,000 Fiscal Year 3 (2016) 54 $8,538,946 $156,200 $108,000 $1,162,000 Fiscal Year 4 (2017) 69 $13,128,483 $189,809 $120,750 $1,041,250 Fiscal Year 5 (2018) 87 $16,823,510 $175,091 $130,500 $910,750 Fiscal Year 6 (2019) 78 $18,321,337 $233,641 $97,500 $813,250
Status: Company reported average of 78 jobs above the baseline for the sixth contract year through December of 2019.
Jobs Annual Average GOLT Incentive ENABLE MIDSTREAM (108) Created Payroll Salary Payment Balance Fiscal Year 1 (2014) did not meet $450,000 Fiscal Year 2 (2015) 47 $9,217,488 $194,502 $61,100 $388,900 Fiscal Year 3 (2016) 91 $12,438,186 $136,683 $100,100 $288,800 Fiscal Year 4 (2017) 111 $16,975,620 $151,681 $111,000 $177,800 Fiscal Year 5 (2018) 138 $24,732,865 $177,934 $110,400 $67,400 Fiscal Year 6 (2019) 160 $38,989,833 $242,550 $67,400 $0
Status: Company reported an average of 160 jobs above the baseline of 380 for the sixth year, payment was processed in December 2019.
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Jobs Annual Average GOLT Incentive PROGREXION (534) Created Payroll Salary Payment Balance Fiscal Year 1 (2016) 85 $2,850,610 $33,504 $68,000 $532,000 Fiscal Year 2 (2017) 178 $6,225,332 $34,811 $106,800 $425,200 Fiscal Year 3 (2018) 186 $6,625,595 $35,447 $74,400 $350,800 Fiscal Year 4 (2019) 155 $5,664,517 $36,330 $46,500 $304,300
Status: Progrexion finished the fourth contract year in September 2019 with 155 new jobs. Fiscal Year 4 payment in the amount of $46,500 was made in December 2019.
Jobs Annual Average GOLT Incentive PAYCOM #3 (492) Created Payroll Salary Payment Balance Fiscal Year 1 (2018) 364 $20,065,472 $55,074 $436,800 $763,200 Fiscal Year 2 (2019) 948 $51,438,868 $54,251 $763,200 $0 Status: Paycom Project #3 finished the second and final contract year in December 2019 with an average of 948 new jobs with an average annual salary of $54,251.
Jobs Annual Average GOLT Incentive NLLG (500) Created Payroll Salary Payment Balance Fiscal Year 1 (2017) 36 $1,768,356 $49,121 $18,000 $482,000
Status: NLLG finished the first contract year in April 2017 with an average of 36 jobs added for the first contract year above the baseline of 77 jobs. Fiscal Year 1 payment in the amount of $18,000 was made in June 2017
Jobs Annual Average GOLT Incentive NORTH AMERICAN ATK (76) Created Payroll Salary Payment Balance Fiscal Year 1 (2019) 13 $718,418 $55,263 $5,850 $69,150
Status: North American ATK Corp. finished the first contract year in September 2018 with an average of 13 jobs added for the first contract year. Fiscal Year 1 payment in the amount of $5,850 was made in April 2019.
Jobs Annual Average GOLT Incentive DURACOATINGS (49) Created Payroll Salary Payment Balance Fiscal Year 1 (2018) 4 $258,383 $57,418 $3,600 $96,400 Status: DuraCoatings finished the first contract year in December 2018 with an average of 4 jobs with an average annual salary of $57,418.
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Jobs Annual Average GOLT Incentive KRATOS (350) Created Payroll Salary Payment Balance Fiscal Year 1 (2019) 11 $760,663 $66,145 $8,800 $891,200 Status: Kratos finished the first contract year in August 2019 with an average of 11 jobs with an average annual salary of $66,145.
Jobs Annual Average GOLT Incentive RURAL SOURCING (150) Created Payroll Salary Payment Balance Fiscal Year 1 (2019) 37 $2,602,251 $70,016 $29,600 $420,400 Fiscal Year 2 (2020) 54 $3,893,011 $71,651 $40,500 $379,900 Status: Rural Sourcing finished the second contract year with an average of 54 jobs with an average annual salary of $71,248.
6
STRATEGIC INVESTMENT PROGRAM General Obligation Limited Tax Bonds (GOLT) FINANCIAL SUMMARY AS OF MARCH 31, 2021
March-21 Fiscal Year to Date Total to Date
Revenues GOLT Bond Proceeds $0.00 $0.00 $104,490,464.80 Payment from Special Purpose $0.00 $0.00 $4,300,000.00 Sale of Land $0.00 $250,000.00 $250,000.00 Investment Income $783.57 $6,935.78 $1,706,018.50 Total Revenues $783.57 $256,935.78 $110,746,483.30
Expenditures Administration - ED0100 $11,636.25 $190,809.96 $2,931,097.40 Chamber SIP Services - ED0101 $0.00 $5,000.00 $186,000.00 I2e ETP Services - ED0102 $0.00 $0.00 $1,500.00 Affinia Project - ED0110 $0.00 $0.00 $36,000.00 CSAA Project - ED0111 $0.00 $0.00 $2,899,999.82 Wood Group Project - ED0112 $0.00 $0.00 $17,000.00 PreDent Project (Loan) - ED0114 $0.00 $0.00 $100,000.00 OrthoCare Project ED0115 $0.00 $0.00 $64,250.00 Advanced Academics Project ED0116 $0.00 $0.00 $155,000.00 Lands Needs Study - ED0118 $0.00 $0.00 $50,000.00 CEDS Grant Match - ED0119 $0.00 $0.00 $50,000.00 Business Launch Grant Match - ED0120 $0.00 $0.00 $400,000.00 Paycom Project #1 - ED0121 $0.00 $0.00 $1,967,999.65 The Boeing Company #1 - ED0123 $0.00 $0.00 $1,838,250.00 Chesapeake Energy - ED0125 $0.00 $0.00 $1,925,000.00 Continental Resources - ED0126 $0.00 $0.00 $7,200,000.00 ARINC/Field - ED0127/ED0164 $0.00 $0.00 $645,258.84 Centek LTD - ED0128 $0.00 $0.00 $200,000.00 Cameron - ED0129 $0.00 $0.00 $7,000.00 FMC Technologies - ED0130 $0.00 $0.00 $107,500.00 Grocery Supply Acquisition Corp. - ED0131 $0.00 $0.00 $375,000.00 ENOGEX - ED0132 $0.00 $0.00 $479,999.90 The Boeing Company #2 - ED0133 $0.00 $0.00 $3,648,600.00 Paycom Project #2 - ED0134 $0.00 $0.00 $1,385,400.00 Softball Hall of Fame Loan - ED0136 $0.00 $0.00 $6,000,000.00 General Electric - ED0139 $0.00 $0.00 $577,500.00 Tapstone Energy - ED0141 $0.00 $0.00 $636,750.00 OCRA - GE - ED0142 $0.00 $109,489.00 $744,360.11 BNSF KC46A - ED0143 $0.00 $0.00 $23,500,000.00 Enable Midstream - ED0144 $0.00 $0.00 $450,000.00 The Boeing Company #3 - ED0146 $0.00 $0.00 $3,529,550.00 Paycom Project #3 - ED0147 $0.00 $0.00 $1,200,000.00 Progrexion - ED0148 $0.00 $0.00 $295,700.00 NLLG - ED0154 $0.00 $0.00 $18,000.00 North American ATK Corp - ED0156 $0.00 $0.00 $5,850.00 OIA - ED0159 $0.00 $0.00 $1,204,660.00 Kratos UAS - ED0169 $0.00 $0.00 $8,800.00 DuraCoatings - ED0161 $0.00 $0.00 $3,600.00 Rural Sourcing - ED0167 $0.00 $70,100.00 $70,100.00 Mt Vernon AHP - ED0169 $0.00 $0.00 $600,000.00 MAPS 3 NE Senior Wellness Center - ED0172 $0.00 $0.00 $1,300,000.00 1700 NE 23rd Street Clinic Loan - ED0502 $0.00 $0.00 $1,300,000.00 NE 23rd Street Retail Loan - ED0503 $0.00 $0.00 $1,375,000.00 Homeland - ED0505 $0.00 $0.00 $4,400,000.00 Chamber Professional Services - ED0911 $0.00 $90,000.00 $190,000.00 Small Business Continuity Program - ED0174 $0.00 $3,166,295.37 $5,028,974.69 Total Expenditures $11,636.25 $3,631,694.33 $79,109,700.41
Outstanding Encumbrances $1,471,623.99
Funds Available $30,165,158.90 NOTE: Amounts are unaudited and subject to adjustment and/or reclassification.
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TAX INCREMENT DISTRICT #2 & #3 Downtown/MAPS District
FINANCIAL REPORT AS OF MARCH 31, 2021
Revenues March-21 Fiscal Year to Date Total to Date Ad Valorem Taxes $120,498.15 $7,202,471.23 $112,180,190.46 Skirvin Sales Taxes - State Match $0.00 $0.00 $4,365,858.57 Skirvin Sales Taxes $0.00 $253,394.56 $4,619,253.11 Miscellaneous Revenue $0.00 $310,100.19 $711,842.73 Development Loan Revenues $27,283.87 $185,182.19 $2,071,501.95 Investment Income $487.78 $4,633.09 $1,416,938.85 Loan Proceeds $0.00 $0.00 $115,185,430.00 Transfer from OCEDT $253.53 ($6,904,464.62) $43,651,011.65 Total Revenues $148,523.33 $1,051,316.64 $284,202,027.32
Expenditures March-21 Fiscal Year to Date Total to Date Administration - ED0200 $17,925.62 $296,000.99 $2,705,204.22 Debt Service on LT Note - ED0200 $0.00 $7,805,921.53 $87,399,652.05 Payoff of OCPPA Line of Credit - ED0200 $0.00 $0.00 $20,052,311.07 Completed Projects $0.00 $0.00 $67,395,378.90 Bricktown Infrastructure - ED0237 $0.00 $0.00 $1,822,285.04 I-89 and Emerson School Project - ED0247 $0.00 $4,839.62 $1,500,000.00 Rock Island Plow - ED0248 $0.00 $49,147.95 $224,257.99 Steelyard - ED0250 $0.00 $131,823.88 $1,131,823.88 Underground HVAC - ED0253 $0.00 $8,084.63 $185,428.62 Convention Center Hotel - ED0259 $0.00 $3,530,000.00 $10,590,000.00 Oklahoma Co. Capital Project 2016 - ED0260 $0.00 $773,766.82 $2,765,275.20 Crosstown Land Acquisition - ED0269 $2,313,000.00 $2,313,000.00 $2,600,000.00 I-89 2015 and 2017 Capital - ED0270 $194,470.28 $1,952,547.05 $14,669,177.38 OK Contemporary Arts Ancillary Infra - ED0273 $0.00 $37,064.00 $37,064.00 Transfer to OCEDT $253.53 $1,331.62 $50,556,807.89 Total Expenditures $2,525,649.43 $16,903,528.09 $263,634,666.24
Outstanding Encumbrances $113,381.52
Funds Available 20,453,979.56*
Outstanding Debt as of March 31, 2021 $55,280,000.00
NOTE: Amounts are unaudited and subject to adjustment and/or reclassification. *Amount includes debt services reserves of $6,735,426.03 that are not available for projects.
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TAX INCREMENT DISTRICT #2 & #3 Downtown/MAPS District PROJECT STATUS REPORTS AS OF MARCH 31, 2021
Projects Under Design 1. 700 West Housing Project 2. BarK Dog Park Project 3. Myriad Gardens Crystal Bridge Phase II
Projects Under Construction 1. Downtown Sidewalks 2. Bricktown Infrastructure 3. Oklahoma County Capital Project 4. West Village (The Residences) 5. Metro Tech South Bryant Campus 6. Southern Oaks Learning and Wellness Project 7. I-89 Administration Building and Emerson School 8. I-89 Oklahoma City Public Schools Capital Project 9. Convention Center Hotel 10. Underground HVAC 11. Villa Teresa Hotel and Residences Redevelopment Project
Projects On Hold 1. OCCC Capitol Hill Phase Three
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TAX INCREMENT DISTRICT #4 & #5 Oklahoma River District
FINANCIAL REPORT AS OF MARCH 31, 2021
March-21 Fiscal Year to Date Total to Date Revenues Ad Valorem Taxes $0.00 $0.00 $11,296,402.89 Dell Payroll Sales Taxes $0.00 $0.00 $3,979,752.83 Dell Payroll Sales Taxes - State Match $0.00 $0.00 $2,565,824.25 Refund from Federal Government $0.00 $0.00 $1,006,541.00 Transfer from Bond Fund $0.00 $0.00 $386,742.15 Transfer from Drainage Fund $0.00 $0.00 $2,000,000.00 Transfer from General Fund $0.00 $0.00 $3,000,000.00 Payment from OKC - OCEDT $0.00 $0.00 $551,441.10 Transfer from OCPPA - General Purpose $0.00 $0.00 $1,025,921.69 Investment Income $87.99 $776.30 $256,402.49 Loan Proceeds $0.00 $0.00 $11,486,977.00 Total Revenues $87.99 $776.30 $37,556,005.40
Expenditures Administration $3,121.12 $60,752.31 $1,602,698.34 Land Acquisition $0.00 $0.00 $299,840.64 Transfer to OCPPA - General Purpose $0.00 $0.00 $51,653.69 Debt Service $0.00 $0.00 $13,649,480.12 Dell Project (ED0402) $0.00 $0.00 $16,973,829.35 Shoreline Improvements (ED0403) $0.00 $0.00 $1,426,345.56 Total Expenditures $3,121.12 $60,752.31 $34,003,847.70
Funds Available $3,539,673.22
Contracts Outstanding $12,484.48
There is no outstanding debt as of March 31, 2021. NOTE: Amounts are unaudited and subject to adjustment and/or reclassification.
PROJECT STATUS REPORTS AS OF MARCH 31, 2021
Completed Projects 1. Dell 2. Shoreline Improvement Project
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TAX INCREMENT DISTRICT #6 Las Rosas Residential District FINANCIAL REPORT AS OF MARCH 31, 2021
March-21 Fiscal Year to Date Total to Date
Revenues Ad Valorem Taxes $0.00 $0.00 $524,677.95 Investment Income $33.74 $529.00 $6,504.50 Misc. Revenue - Developer Contribution $0.00 $0.00 $98,527.20 Loan Proceeds $0.00 $0.00 $1,017,000.00 Payment from OCEDT $0.00 $0.00 $139.20 Transfer from OCPPA General $0.00 $0.00 $65,895.52 Transfer from City/Schools Use Tax $0.00 $0.00 $1,031,652.51 Total Revenues $33.74 $529.00 $2,744,396.88
Expenditures Professional Services - Legal $0.00 $0.00 $50,048.95 Advertising $0.00 $77.72 $1,174.48 Administrative Chargebacks $0.00 $0.00 $13,429.15 Loan Principal and Interest Payments $0.00 $0.00 $1,138,133.81 Transfer to City & Schools Use Tax $0.00 $0.00 $154,917.99 Transfer to General Fund $0.00 $59,858.50 $333,083.42 Construction of Public Improvements $0.00 $0.00 $1,015,578.10 Total Expenditures $0.00 $59,936.22 $2,706,365.90
Outstanding Encumbrances $0.00
Funds Available $38,030.98
NOTE: Amounts are unaudited and subject to adjustment and/or reclassification.
PROJECT STATUS REPORTS AS OF MARCH 31, 2021
Completed Projects 1. Las Rosas Phase 1
Projects Suspended 1. Las Rosas Phase 2
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TAX INCREMENT DISTRICT #8 Devon World Headquarters District
FINANCIAL REPORT AS OF MARCH 31, 2021
March-21 Fiscal Year to Date Total to Date Revenues Ad Valorem Taxes $0.00 $11,302,511.05 $91,537,423.80 Devon Construction Sales Taxes $0.00 $0.00 $4,712,292.35 Devon Construction Sales Taxes - State Match $0.00 $0.00 $4,712,292.35 TIF # 8 Apportionment Bonds - Series 2013A* $0.00 $0.00 $116,445,000.00 TIF # 8 Apportionment Bonds - Series 2013B* $0.00 $0.00 $23,840,000.00 Reimbursement - Myriad Gardens Foundation $0.00 $0.00 $50,000.00 Miscellaneous $0.00 $0.00 $2,529.96 Internet Sale of Surplus Property $0.00 $0.00 $900.00 Investment Income $364.26 $4,458.83 $3,790,987.08 Devon Interim Loan $0.00 $0.00 $82,650,000.00 Transfer from OCEDT $157.78 $20,644,813.96 $181,389,819.87 Total Revenues $522.04 $31,951,783.84 $509,131,245.41 * Amount includes gross bond proceeds that include funds for capitalized interest and bond reserve funds.
Expenditures Administration - ED0800 $3,567.00 $58,612.41 $3,956,753.51 Refunding of Interim Note - ED0800 $0.00 $11,302,511.05 $183,433,565.27 Bond Issue/Debt Service Costs - ED0800 $7,808,131.70 $9,846,263.40 $79,135,370.49 Completed Projects $0.00 $0.00 $97,306,538.80 Streetscape - Package # 6 - ED0830 $0.00 $0.00 $1,802,257.99 Streetscape - Package # 7 - ED0831 $0.00 $0.00 $5,416,501.18 Pedestrian Linkage (External) - ED0836 $0.00 $0.00 $4,743,417.01 Streetscape - Package #6B - ED0844 -$1,563,317.48 -$1,563,317.48 $3,650,878.52 Streetscape - Package #7B - ED0849 $0.00 $0.00 $5,771,281.58 Oklahoma County Annex - ED0851 $0.00 -$680,268.00 $3,074,634.00 Project 180 Miscellaneous - ED0857 $0.00 $0.00 $807,703.93 Streetscape Ancillary Components - ED0858 $0.00 $0.00 $160,474.00 Streetscape - Package #8 - ED0859 $0.00 $55,479.40 $2,208,575.72 Intermodal Hub - ED0861 $1,563,317.48 $1,563,317.48 $1,563,317.48 Convention Center Hotel - ED0990 $0.00 $950,000.00 $2,850,000.00 Transfer to OCEDT $157.78 $9,342,302.91 $90,861,177.36 Total Expenditures $7,811,856.48 $30,874,901.17 $486,742,446.84
Funds Available $21,032,500.09*
Outstanding Contract Amounts $1,356,298.48
Outstanding Debt as of March 31, 2021 $96,900,000.00 *Amount includes debt services reserves of $11,406,666.70 that are not available for projects. NOTE: Amounts are unaudited and subject to adjustment and/or reclassification.
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TAX INCREMENT DISTRICT #9 NE Renaissance Increment District
FINANCIAL REPORT AS OF MARCH 31, 2021
March-21 Fiscal Year to Date Total to Date Revenues Ad Valorem Taxes $0.00 $0.00 $194,314.07 Investment Income $33.53 $734.67 $52,826.39 Transfer from General Fund $0.00 $0.00 $200,000.00 Internal Loan from OCEDT (GOLT) $0.00 $0.00 $7,075,000.00 Total Revenues $33.53 $734.67 $7,522,140.46
Expenditures Administration - ED0500 $0.00 $6,899.92 $20,407.45 1700 NE 23rd Street Clinic - ED0502 $0.00 $54,331.87 $1,300,000.00 1726 NE 23rd Street Retail - ED0503 $0.00 $138,785.55 $1,347,847.55 Homeland - ED0505 $0.00 $3,500,000.00 $3,500,000.00 Total Expenditures $0.00 $3,700,017.34 $6,168,255.00
Outstanding Encumbrances $27,208.70
Funds Available $1,326,676.76 NOTE: Amounts are unaudited and subject to adjustment and/or reclassification.
PROJECT STATUS REPORTS AS OF MARCH 31, 2021
Completed Projects
1. NE Shopping Center Project 2. 1700 NE 23rd Street Clinic
Projects under Construction
1. 1726 NE 23rd Street Retail 2. Homeland Grocery Store
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TAX INCREMENT DISTRICT #10 First National Center
FINANCIAL REPORT AS OF MARCH 31, 2021
March-21 Fiscal Year to Date Total to Date Revenues Ad Valorem Taxes $0.00 $0.00 $466,832.31 Investment Income $0.06 $435.05 $5,031.07 Transfer from OCEDT $0.00 $16,632,468.87 $16,632,468.87 Loan Proceeds $0.00 $24,550,000.00 $24,550,000.00 Total Revenues $0.06 $41,182,903.92 $41,654,332.25
Expenditures Administration - ED0510 $0.00 $7,484.64 $19,095.36 FNC Project Expenses - ED0510 $6,623,208.03 $13,508,694.82 $13,508,694.82 Debt Issuance Costs $0.00 $2,280,659.25 $2,280,659.25 Transfer to OCEDT $0.00 $16,632,468.87 $16,632,468.87 Total Expenditures $6,623,208.03 $32,429,307.58 $32,440,918.30
Outstanding Encumbrances $643,529.84
Funds Available $8,569,884.11*
Outstanding Debt as of March 31, 2021 $24,450,000.00 NOTE: Amounts are unaudited and subject to adjustment and/or reclassification. *Amount includes debt services reserves of $3,434,659.82 that are not available for projects.
PROJECT STATUS REPORTS AS OF MARCH 31, 2021
Projects under Construction
1. First National Center Garage 2. First National Center Tower
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TAX INCREMENT DISTRICT #12 Western Gateway District
FINANCIAL REPORT AS OF MARCH 31, 2021
March-21 Fiscal Year to Date Total to Date Revenues Ad Valorem Taxes $0.00 $0.00 $9,495.90 Investment Income $0.00 $0.00 $2.14 Total Revenues $0.00 $0.00 $9,498.04
Expenditures Wheeler District Infrastrucure (ED0550) $0.00 $7,121.93 $7,121.93 Western Gateway Elementary (ED0551) $0.00 $2,373.97 $2,373.97 Total Expenditures $0.00 $9,495.90 $9,495.90
Outstanding Encumbrances $0.00
Funds Available $2.14
NOTE: Amounts are unaudited and subject to adjustment and/or reclassification.
PROJECT STATUS REPORTS AS OF MARCH 31, 2021
Projects under Construction
1. Wheeler District Infrastructure
Projects under Design
1. Western Gateway Elementary School
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MISCELLANEOUS ECONOMIC DEVELOPMENT
FINANCIAL REPORT AS OF MARCH 31, 2021
March-21 Fiscal Year to Date Total to Date Revenues Investment Income $137.10 $1,777.07 $142,495.65 Miscellaneous Revenue $0.00 $0.00 $2,399,350.64 Lease Revenues $0.00 $0.00 $104,741.92 Utility Reimbursement $0.00 $0.00 $55,946.75 Transfer from General Fund - Chamber $0.00 $900,000.00 $10,286,432.89 Transfer from General Fund - Alliance $0.00 $115,000.00 $975,000.00 Transfer from General Fund - Myriad Gardens $0.00 $2,097,550.00 $18,099,156.68 Payment from CIP - Myriad Gardens $0.00 $215,000.00 $335,000.00 Transfer from General Fund - Scissortail Park $0.00 $3,152,825.00 $10,233,125.00 Transfer from MAPS - Scissortail Park $0.00 $0.00 $75,000.00 Transfer from General Fund - Outlet Mall $0.00 $550,000.00 $5,400,000.00 Transfer from General Fund - Cabela's $0.00 $0.00 $1,431,598.90 Transfer from General Fund - Costco $0.00 $0.00 $700,000.00 Transfer from General Fund - Other $0.00 $0.00 $0.00 Transfer from OCEDT $0.00 $0.00 $33,448.77 Transfer from Trustee Bank - AICCF $0.00 $4,000,000.00 $8,500,000.00 Total Revenues $137.10 $11,032,152.07 $58,771,297.20
Expenditures OCEDT Admin - ED0500 - TIF 9 (NE Renaissance) $0.00 $0.00 $10,948.50 OCEDT Admin - ED0510 - TIF 10 (First National) $0.00 $0.00 $131.08 OCEDT Admin - ED0550 - TIF 12 (Western Gateway) $0.00 $49.88 $20,648.28 OCEDT Admin - ED0900 - Misc. ED $0.00 $1,450.00 $85,090.29 Homeland - ED0505 $0.00 $0.00 $250,000.00 Chamber - Professional Services - ED0911 $0.00 $607,500.00 $10,047,693.96 Myriad Gardens Foundation - ED0920 $205,629.17 $1,645,033.36 $16,989,885.93 Alliance - Additional Services - ED0930 $0.00 $0.00 $950,161.50 Outlet Mall - Marketing - ED0940 $179,845.13 $562,053.37 $5,103,934.60 Cabela's Commercial - ED0951 $0.00 $0.00 $1,155,337.83 Costco - ED0952 $0.00 $691,619.87 $691,619.87 Park Avenue Retail Study - ED0960 $0.00 $0.00 $71,500.00 Scissortail Park Foundation - ED0970 $262,735.42 $2,101,883.36 $8,830,115.89 AICCF Pre-Opening - ED0980 $0.00 $4,000,000.00 $8,500,000.00 KIVA - ED0982 $0.00 $28,163.45 $28,163.45 Gold Building Purchase Promissory Note - ED0981 $0.00 $250,000.00 $500,000.00 Total Expenditures $648,209.72 $9,887,753.29 $53,235,231.18
Outstanding Encumbrances $3,044,176.08
Funds Available $2,491,889.94 NOTE: Amounts are unaudited and subject to adjustment and/or reclassification.
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TAX INCREMENT DISTRICT #13 Core to Shore District A
FINANCIAL REPORT AS OF MARCH 31, 2021
March-21 Fiscal Year to Date Total to Date Revenues Investment Income $322.64 $2,045.37 $1,353,030.42 Ad Valorem Taxes $0.00 $0.00 $373,223.41 Hotel Taxes $1,908.55 $1,908.55 $1,908.55 Transfer from OCEDT $0.00 $4,480,000.00 $107,830,582.33 Payment from General Fund $0.00 $0.00 $1,200,000.00 Payment from OCRA (Skirvin Lease) $0.00 $0.00 $2,841,661.00 Payment from OKC-OCEDT (Bass Pro) $0.00 $0.00 $629,671.47 Total Revenues $2,231.19 $4,483,953.92 $114,230,077.18
Expenditures Professional Services $0.00 $2,073.08 $85,404,206.48 Debt Service $1,727,570.58 $3,455,141.16 $13,991,781.02 Transfer to OCEDT $0.00 $0.00 $3,378,213.34 Total Expenditures $1,727,570.58 $3,457,214.24 $102,774,200.84
Outstanding Encumbrances $0.00
Funds Available $11,455,876.34
Outstanding Debt as of March 31, 2021 $86,060,000.00 NOTE: Amounts are unaudited and subject to adjustment and/or reclassification.
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