IMMEDIATE RELEASE 
MEDIA
HITS TV
Clip
2007-2008
Economic Forecast (more)
“No
Oscar For The Gloomy Motion Picture Industry Due to Labor Issues and Runaway
Production and International Trade Has Some Risk, Says LAEDC Forecast &
Industry Outlook—Job Growth - Real Estate Are Hot”
***
Los Angeles County Economic Development
Corporation (LAEDC) presents its 2007-2008 Economic Forecast
for the Southland with an industry panel focusing on such hot button issues
as housing,
entertainment, financial markets and what industries will be growing
“The 2007-2008 outlook for
the
By the end of 2007, the
overall housing industry will have stabilized, but some areas in
As to the industries at risk,
the most notable is the motion picture/TV production industry, which has to
face contraction negotiations with three key labor unions, the Writer’s Guild
in October, 2007, and the Screen Actor’s Guild and the Director’s Guild in June
2008. “There are a variety of scenarios
being spun out as to what might take place,” observed Kyser. “The risk of a strike, real or de facto, is
high, and this would not be good news for areas of
The other key local industry
at some risk is international trade. The
problems here will be the introduction of the Transportation Worker
Identification Credential or TWIC.
Workers will have to obtain this credential to go unaccompanied into
steamship terminals at the ports, and there is concern that many of the port
truck drivers won’t be able to get one due to their immigration status.
“In addition, the land-side
trade transportation infrastructure, especially rail, is severely stressed, and
we have to keep our fingers crossed that there will be no glitches this year,”
noted Kyser.
Another item to watch
according to the LAEDC is the local office market. Vacancy rates have been coming down, while
there has been a modest amount of new construction. In the meantime, several high profile
building portfolios have been sold and the new owners are talking about raising
lease rates. “There is also nervousness
among industrial space users that they could see lease rates going up due to
the region’s ultra-tight industrial real estate market,” warned Kyser.
- M o r e -
The LAEDC Forecast and event, which is being moderated by veteran reporter
Frank Mottek, host of the KNX Business Hour, pointed out that there is an array
of big-ticket projects underway all around
Some of the highlights of the LAEDC’s 2007-2008
Forecast:
- Employment in
- International trade in the region will move
to new high levels of activity, with container volume at the ports of
- The number of overnight visitors to
- The LAEDC observed shifts in the local
apparel industry with very modest jobs losses forecast for 2007. A focus on product quality and/or
“quick-turn” production will help, as will the growing number of international
buyers coming to
- Housing unit permits issued during 2007 in
the region will decline, with the Riverside-San Bernardino area seeing a modest
6.4 percent drop. However, declines of
29.4 percent in
- In terms of job growth in 2007, on a
percentage basis the Riverside-San Bernardino area will once again set the pace
with a 1.7 percent increase followed by
- On a numerical basis,
“
About the LAEDC
The
LAEDC, the region’s premier business leadership organization, is a private,
non-profit organization established in 1981 under section 501(C)(3). Our mission is to attract, retain, and grow
business and jobs in
[Editors: Please
call for an advanced copy of the embargoed study or link and to do advanced
interviews with LAEDC Chief Economist
818-618-9229]
###