0820_AUG Comstock's Magazine 0820 August | Page 37

ECONOMIC DEVELOPMENT
Infrastructure and
Workforce Will Help
Attract Companies
by Barry Broome
During severe economic downturns,
including the current one brought on
by the COVID-19 pandemic, economic
development professionals are critical
for generating momentum to adjust the
trajectory of the regional economy to
capitalize on opportunities for growth
and bring about long-lasting change.
Regional economic development is
front and center for recovery. Developers
are working to strengthen our
competitive advantages and redefine
our region’s value proposition for businesses
looking to move or expand in the
Sacramento region.
One of those competitive advantages
is how many of our community
stakeholders, business professionals
and regional institutions work together
through GSEC as one marketplace for
economic growth. Uniting municipal
leaders, real estate professionals and
university leadership creates a seamless
market-entry process for innovative
companies relocating here.
Another strength is our resilience as
a regional economy. According to a recent
CBRE report, the Sacramento region
has the second-highest concentration of
the most resilient industries in the U.S.,
including health care and technology.
St. Louis-based Centene’s decision last
year to establish its Western headquarters
in Sacramento and the growth of the
life science industry throughout the region
is a testament to that. We continue
to create jobs needed to remain competitive
in the industries of the future.
Despite the economic downturn, our
team at GSEC has seen a steady interest
from companies looking to make location
decisions in several key industries,
including life science, food preparation
and delivery, and e-commerce and
distribution. Since the pandemic began,
we’ve moved to virtual presentations and
pitches, have converted to a digital client
response portal, and Zoom around to
meet companies all over the world.
Barry Broome is the president and CEO of the
Greater Sacramento Economic Council, which
promotes innovative growth strategies in the
Sacramento region. He is responsible for leading
community-driven efforts to attract, grow
and scale new businesses; develop advanced
industries; and guide new job-creation strategies
throughout a six-county region.
In many ways, we have evolved our
processes to define what it can look like
to do business in a digital economy.
While we look forward to some level of
business as usual, we’re taking advantage
of the disruption to build a stronger,
more inclusive regional economy for our
businesses and residents — one that’s
ready for the future and built to scale.
Construction and real estate are key
The construction and real estate industries
are proving to be major areas for
optimism. Construction jobs make up
7.4 percent of the Sacramento region’s
workforce, while the national average
is 5.7 percent, according to EMSI 2019
data on industry jobs for the six-county
greater Sacramento region. Fortunately,
the construction industry was deemed
essential by state leaders during the
shutdown, which allowed many families
in our region to have income stability.
Employers quickly adopted new safety
protocol measures for their employees
and continued work on significant projects,
including infrastructure projects,
as well as 2.5 million square feet of
industrial buildings and 2.6 million of
new office space throughout the region,
according to data from commercialreal-estate-data
company CoStar Group.
Before the pandemic, our real estate
market fundamentals were sound, and
the delivery of these projects will help
meet future demand and capture additional
growth.
Market meeting workplace needs
The pandemic has also brought about
changes to the workplace that are already
strengthening our position as an
attractive market. Huge office towers
will likely be less popular among major
corporations as employees return to
work because their dense-population
design will be challenging in attempts
to provide social distancing; working
from home is more likely. The Sacramento
region has a large portfolio of
office parks and manufacturing sites,
which better allow for continued social
distancing. These two- and three-story
complexes allow for ample parking
and support the “hub and spoke”
model that businesses are adopting
to disperse their workforce away from
large, expensive headquarters.
Skilled workforce will be vital
While real estate and operating costs
are critical for companies considering
expansions, the availability of skilled
talent in specific industries often plays
a critical role in their decisions. As a
region, it’s imperative we ensure we’re
able to attract and retain highly skilled
workers to support emerging industries
like life science, fintech and mobility
technology. In addition, it’s never been
more critical for people in our community,
especially those who have been
negatively affected or have lost jobs
due to the shutdown, to gain new skills
to compete in our regional economy of
the future.
GSEC is working with other community
organizations to create an inclusive
digital-skills certification program in
software development and IT support
and assist students with job placement
assistance after completion. Our regional
economy is strong when everyone
has an opportunity to contribute to its
success. Strengthening the skills of our
workforce will increase our ability to
attract growing companies and lead to
additional development.
August 2020 | comstocksmag.com 37