Appendices Appendix A: Current Economic Conditions 38 Appendix B: Summary of Public Outreach and Stakeholder Input 53 Appendix C: Document Review and Investment Map 61 37 Appendix A: Current Economic Conditions The Economic Development Strategy This Appendix provides an overview of key reflects and responds to current economic economic data, including: conditions in Oakland, including industry • Employment and industry growth and real estate trends and the ways that Oakland residents are participating • Emerging industry trends in, or being impacted by, the city’s economic growth. • Anchor institutions, large firms, and the Port of Oakland • Real estate trends • Participation in Oakland’s economy and disparities by income, neighborhood, and race • Disaster preparedness and resilience Employment and Industry Growth Oakland’s economy has recovered strongly Oakland’s economy has both dynamism from the recession of the late 2000s. and stability, characterized by large, legacy Between 2010 and mid-2017, the City institutions – many of which have been in added more than 25,000 new jobs, bringing operation in the city for decades – and small the total within the City to over 180,000. businesses that can be either local-serving Oakland employment, or the number of or global in reach. As of 2016, 91 percent of employed Oaklanders, is also approximately firms in Oakland had fewer than 20 people, 24 percent higher than the pre-recession accounting for 69 percent of all jobs. peak in 2008 (Figure 1). The city accounts for approximately a quarter of the employees in Alameda County, a share that has remained stable since 2008. 38 Oakland’s Key Sectors For nearly two decades, Oakland has industry clusters that have dominated the maintained a steady focus on maintaining city’s employment base for a hundred years. and supporting the growth of the As shown in Figure 2, health care is the city’s same key sectors: health and wellness, largest sector, followed by transportation transportation and logistics, manufacturing, and logistics, leisure and hospitality, food production, green and clean technology, professional services and management, and arts and culture, and retail. In the last education. Health care and transportation two years, the City has added support and logistics, in particular, have been for the tech and tourism sectors due among Oakland’s largest sectors for many to rapid job growth in both fields. The years. In both sectors, Oakland accounts City is also monitoring and developing for approximately 40 percent of all jobs regulations and policies to support the in Alameda County. Oakland also has a emergence of the legal cannabis industry. high share of countywide employment National economic shifs are having an in education (approximately 60 percent), impact in Oakland, including the rise of other services (30 percent), and finance, on-demand work and an increase in service insurance, and real estate (27 percent). jobs and growth in sustainability industries Leisure, hospitality, and retail employment like solar and green technology. Oakland’s has grown significantly in the past five years, primary economy continues to be driven by as reflected in national attention on the food many of the same employment sectors and and arts scene. Figure 1. Oakland Employment, 2008-2016 185,000 180,000 175,000 170,000 165,000 160,000 155,000 150,000 Oakland Employees 145,000 140,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: CA Employment Development Department, Oakland Metropolitan Chamber of Commerce and Beacon Economics, City of Oakland, 2016 39 Figure 2. Oakland Employment, 2008-2016 40,000 21% 35,000 30,000 15% 25,000 20,000 11% 9% 9% 15,000 7% 6% 6% 10,000 5% 5% 4% 4% 5,000 2% 0 Retail Public Education Services & Recreation Real Estate Leisure and Information Healthcare Professional Management Construction/ Other Services Manufacturing Administration Transportation, Admin Support & Wholesale Trade, Hospitality, Arts & Natural Resources Logistics & Utilities Finance, Insurance, Waste Management Source: California Employment Development Department, Oakland Metropolitan Chamber of Commerce and Beacon Economics, City of Oakland, 2016 Figure 3. Oakland Employment, 2008-2016 5,000 4,000 3,000 2,000 1,000 0 -1,000 -2,000 Retail Public Education Services & Recreation Real Estate Healthcare Leisure and Information Professional Management Construction/ Manufacturing Other Services Administration Transportation, Admin Support & Wholesale Trade, Hospitality, Arts & Natural Resources Logistics & Utilities Finance, Insurance, Waste Management Source: California Employment Development Department, Oakland Metropolitan Chamber of Commerce and Beacon Economics, City of Oakland, 2016 40 Emerging Industry Trends that are Changing Oakland’s Physical and Economic Environment While Oakland’s economy continues to be driven aging industrial building stock in need of major by many of the same longstanding sectors and improvements. However, while some large clusters that have provided stability and resiliency manufacturing companies (for example, in over the long-term, these sectors are evolving the food processing and furniture production in significant ways. Some of these changes are industries) have closed, the manufacturing reflected in new job growth. Other changes have sector in Oakland is moving towards had less of an impact on total employment, but smaller scale, more specialized production, are still creating noticeable changes in specific including 3-D printing and other advanced locations within the city. manufacturing. City eforts to stay on top of the manufacturing sector’s evolving labor Some of these emerging trends include: needs include programs like “Design It–Build • Rapid growth in health care, education, leisure It–Ship It,” a consortium of East Bay community and hospitality, and information: Figure 3 colleges and workforce boards that received shows employment change by sector between a $15 million grant to support job training for 2010 and 2016. As shown, the health care manufacturing workers. sector added the most jobs during this period. • Growth of innovative business models, However, education, leisure and hospitality, and financing tools, and economic development information grew at the fastest rate, adding 20 eforts: While Oakland businesses receive a to 30 percent more employees. In particular, the significant share of venture capital investment, strong growth in the information sector reflects many local businesses also use crowdfunding the growth of technology firms in Oakland, to grow. The City of Oakland, for example, while the growth in leisure and hospitality – a encourages this model by serving as a category that includes restaurants – speaks to trustee for the Kiva Oakland program, which Oakland’s growing reputation as a tourist and enables individual lenders to invest directly food destination. Most of these technology, in small businesses. Oakland also has a restaurant, and entertainment businesses are high proportion of social entrepreneurs and locating in Oakland’s downtown. B-Corporations, a form of incorporation which • Evolving manufacturing, transportation, provides a legal framework for businesses to and logistics sectors: As shown in Figure pursue both profit and a social/environmental 3, manufacturing and transportation and purpose. logistics experienced relatively slow growth 41 between 2010 and 2016, constrained by an Map 1: Projected East Bay Job Growth Map 1 is a projection of job growth in five significant East Bay sectors. Oakland is expected to lead the East Bay in Healthcare and Accommodation and Food Service job growth, and to also add jobs in both the Retail and Professional/Scientific/Technical industry sectors. 42 Anchor Institutions, Large Firms and the Port of Oakland Large firms have significant workforce, 1. Anchors for Resilient Communities (ARC). contracting, and real estate needs. Anchor ARC is a cross-institutional coalition institutions, which are defined both by size supported by the California Endowment, and the extent to which their operations are San Francisco Foundation, Kresge tied to their location in Oakland, can play a Foundation and Kaiser Permanente, valuable role as partners in the City’s eforts which aims to leverage the assets and the to further inclusive economic development. capacities of East Bay institutional anchors In addition to directly employing tens of to develop healthy and prosperous thousands of workers, these institutions communities, with a focus on meeting the have significant procurement requirements needs of under-served neighborhoods that support additional economic activity. in Richmond and Oakland. This study is Moreover, many of these institutions have working with the Democracy Collaborative made significant real estate investments in and Emerald Cities to identify business Oakland, giving them a shared interest in opportunities to provide products and Oakland’s long-term success. services to local anchors. Stronger relationships between Oakland’s anchors and the local economy have the 2. The Alameda County Health and potential to boost workforce pathways, Social Services Agency has an anchors’ expand local businesses, and increase study underway that includes Kaiser business and city resiliency. Two distinct Permanente, the Port of Oakland, Alameda eforts are underway to expand the role County, and Caltrans, with a focus on that these institutions play in hiring and workforce development and boys and contracting with Oakland residents and