Business and Industry | Major Industries
The Southern California economic region experienced rapid growth up to the recent
economic recession. From 2001-2006, major industries with strong growth included
Construction (28%), Other Services (except Public Administration) (24%), Accomodation
and Food Services (15%), Health Care and Social Assistance (13%), Retail Trade (12%),
Administrative & Waste Services (11%), and Professional, Scientific & Technical
Services (9%). Other industries with strong growth were Finance & Insurance (19%),
Educational Services (17%), Real Estate & Rental & Leasing (14%), and Utilities
(10%).
Starting in 2008, the housing downturn and general economic recession have created
job losses and reversed growth trends in a number of industries. The most affected
industries include Construction, which declined 24% in May 2008-2009 (go to
Housing), manufacturing (-17%), and retail trade (-3% and -15%). The impact
on housing and construction may be made worse by increasing foreclosures and other
problems in the commercial real estate market. Vacancy rates on commercial property
are at 8% overall, with 12% vacancy for warehouses and 20% for office space.
Manufacturing, trade and transportation have suffered from the decrease in international
trade volumes through local ports. World trade volume is projected to be -10 to
-12% less in 2009 compared to 2008. The Inland Empire serves as a logistics hub
for about 80% of the goods going through Long Beach and Los Angeles Ports and has
been affected by this decline in trade. However, world trade is expected to recover
starting in 2010 and reach growth rates of +5% to +6% by 2012-2013. Infrastructure
projects funded through the federal stimulus package also may help compensate for
some job losses in construction and transportation.
The tables on the right report business and industry measures for Riverside and
San Bernardino Counties (as of 2007), based on data from the U.S. Bureau of Labor
Statistics Quarterly Census of Employment and Wages (QCEW) provided through the
California Economic
Development Department. While firms in the two counties are similar in terms
of overall number, size and employment, they differ in which industries are experiencing
the most rapid growth and competitive advantage.