Transcript EssentialEconomy - Georgia Public Policy Foundation

Georgia Public Policy Foundation
2013 Legislative Policy Forum
October 12, 2013
FROM CONCEPT TO POLICY: STAGING THE ESSENTIAL ECONOMY
Concept
•Exploration
•Formation
•Definition
Lay of the Land
•Secondary Research
•Comparables
•Parameters of Study
Research
•Ten year window
•NAIC + SIC Codes
•Georgia Tech
Communications
Leadership
Next
•Media
•Public Speaking
•Publish Study
•Briefings & Training
•Collaboration & Alliances
•Writing & Publishing: Academic & NGOs
•National Study
•Deeper Understanding
•Public Policy
THE ESSENTIAL ECONOMY COUNCIL
The Essential Economy Council is a bi-partisan, nonprofit 501(c)3 organization that originates research and communications to educate
elected officials and business leaders on the economic value of the Essential Economy, the opportunities it provides, and its
fundamental impact on the quality of our lives. The Council’s work is designed to help decision-makers create public policy that is
informed by data and is beneficial to our state's economy and the Essential Economy, including its workforce, customers and business
owners.
Essential Economy Council Board of Directors
DAN MOODY
Former State Senator – Johns Creek
Co-President
SAM ZAMARRIPA
Former State Senator – Atlanta
Co-President
Karen Bremer
Executive Director,
Georgia Restaurant Association
Chris Butts
Director of Legislative Affairs
Georgia Green Industry Association
David Ellis
Executive Vice President
Greater Atlanta Home Builders
Valerie Ferguson
Regional Vice President,
Loews Atlanta Hotel
Mike Giles
President
Georgia Poultry Federation
Charles Hall
Executive Director
Georgia Vegetable & Fruit Growers Association
Jay Morgan
J.L. Morgan, Inc.
Public Affairs
Mary Kay Woodworth
Executive Directors
Georgia Urban Ag Council
Bryan Tolar
President
Georgia Agribusiness Council
Steve Simon
Partner
Fifth Group Restaurants
Zippy Duval
President
Georgia Farm Bureau
Economic Advisory Council
John McKissick, PhD
Professor Emeritus &
Distinguished Agricultural Marketing Professor
University of Georgia
Jennifer Clark, PhD
Associate Professor
School of Public Policy
Georgia Institute of Technology
Thomas Cunningham, PhD
Vice President, Senior Economist
& Regional Executive
Federal Reserve Bank of Atlanta
Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658
PURPOSE & MISSION: THE ESSENTIAL ECONOMY COUNCIL
•
Develop a data-driven analysis of the composition and economic value of the
Essential Economy in Georgia.
•
Provide data that is localized, relevant, credible, and easy to use.
•
Through data, strengthen policy making that affects Essential Economy workers
and sectors.
•
Facilitate bipartisan discussions of the data’s policy implications and potential
policy recommendations to enhance The Essential Economy.
•
Develop research and communication processes that can be replicated in other
states.
Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658
WHAT IS THE ESSENTIAL ECONOMY?
Restaurants &
Hospitality
Agriculture &
Poultry
Construction &
Landscaping
Services
Personal Care &
Assisted Living
Building
Maintenance &
Facilities Services
Distribution &
Logistics
SIX KEY SECTORS:
CHARACTERISTICS:
Is supported by employees
Has low barriers to entry
who work with their hands
and is easy to scale
Supports economic value and
supply chains
Has high potential for upward or
sideways mobility & entrepreneurialism
VALUE:
Is comprised of hard-to-fill positions that
can’t be moved overseas
The products and services provided by the
Essential Economy are basic, yet essential to our way of life
and our overall economy.
5
WHERE THE ESSENTIAL ECONOMY & THE BROADER ECONOMY
Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658
INITIAL SNAPSHOT: ESSENTIAL ECONOMY IN GEORGIA: 2010
Economic Cluster
Category total (M)
% of Total Workforce
Total Work force
5.3
100%
Knowledge Economy
0.6
11%
White Collar Service Professionals
0.8
15%
Specialized Manufacturing
0.4
7%
Government Workers
0.8
15%
Skilled Trade Workers
1.7
32%
Essential Economy
1.0
20%
Agriculture and Poultry
Hospitality and Restaurants
Light Construction and Landscaping
Personal Care and Assisted Living
Building Maintenance and Facilities
Services
Distribution and Logistics
.07
.48
.06
.24
.06
.08
-
-
ESSENTIAL ECONOMY CONSISTENT ACROSS STATES
% of GA's Total
Workforce
% of CT's Total
Workforce
% of FL's Total
Workforce
Knowledge Economy
11%
14%
10%
White Collar Service
Professionals
15%
23%
18%
Specialized Manufacturing
7%
9%
3%
Government Workers
15%
14%
12%
Skilled Trade Workers
32%
27%
34%
Essential Economy
20%
18%
21%
Economic Cluster
Notes: All data 2010
Source: " Total full-time and part-time employment by NAICS industry" data from Bureau of Economic Analysis, Bureau of Labor Statistics. Department of Corrections
FROM CONCEPT TO POLICY: STAGING THE ESSENTIAL ECONOMY
Concept
•Exploration
•Formation
•Definition
Lay of the Land
•Secondary Research
•Comparables
•Parameters of Study
Research
•Ten year window
•NAIC + SIC Codes
•Georgia Tech
Communications
Leadership
Next
•Media
•Public Speaking
•Publish Study
•Briefings & Training
•Collaboration & Alliances
•Writing & Publishing: Academic & NGOs
•National Study
•Deeper Understanding
•Public Policy
HIGH LEVEL RESULTS OF 2012 STUDY
Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658
ESSENTIAL ECONOMY: SUMMARY BY COUNTY
• TEE is present in the states highest and lowest income counties.
• TEE is present in counties regardless of their industrial makeup or composition.
• 55% of all Georgia counties have 25% of more of their workforce in The Essential Economy.
Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658
REPORT & DATA SOURCES
• Report: www.essentialeconomy.org
• Full Report
• Summary Report
• Data for Economic Developers: Juice Analytics
• Data sources for economic developers & research
• Essential Economy data by County
Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658
WHAT THE DATA SAYS AND MEANS
• TEE contributed 12%, or $49 billion, to Georgia’s GDP in 2010.
• TEE employed 996,046 people out of 3.7 million employees in Georgia in 2011
• TEE represent 25% of all jobs in Georgia or one out of every four employees.
• TEE is present in the highest and lowest income counties: Average 25% but as high as 39%
• TEE wage average $21,718, which represents 57% of the average working wage in Georgia.
• TEE employees contributed over $114 million in sales tax alone in 2011.
• TEE is a historic and future structural part of Georgia’s economy
• For every knowledge economy job there is a necessary, corresponding EE job
• TEE has three key stakeholders: Employers, Employee & Consumers
• In simple terms, Georgia’s economy cannot expand or functions without a healthy EE
• TEE can benefit from thoughtful, targeted public policy
Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658
FROM CONCEPT TO POLICY: STAGING THE ESSENTIAL ECONOMY
Concept
Lay of the Land
•Exploration
•Formation
•Definition
•Secondary Research
•Comparables
•Parameters of Study
Research
•Ten year window
•NAIC + SIC Codes
•Georgia Tech
Communications
•Media
•Public Speaking
•Publish Study
Leadership
Next
•Briefings & Training
•Collaboration & Alliances
•Writing & Publishing: Academic & NGOs
•National Study
•Deeper Understanding
•Public Policy
2050 ISSUES: AGING LABOR FORCE
2000
1950
2050
Increasing
percentage of
workers that are
65+
WHERE WE ARE GOING: EDUCATION
 Increasing education: More and more Americans will be earning college
degrees
 America has seen approximately straight line growth since 1950 that
should continue well into the 21st century
 If this continues, over 190M Americans will have a bachelor’s degree by
2050
Percentage of Americans earning bachelor degree
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
US aging + College Degrees + US Workforce + TEE + Immigration
250,000,000
Age 65+
200,000,000
Total with College
Degrees
150,000,000
US workforce
100,000,000
Essential Economy
jobs
Migration Influx
50,000,000
-
PENDING US ESSENTIAL ECONOMY WORKER SHORTAGE
100,000,000
90,000,000
80,000,000
70,000,000
60,000,000
50,000,000
40,000,000
Available Workers
Essential Economy Jobs
30,000,000
20,000,000
10,000,000
-
Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658
SUMMARY & CONCLUSION
• TEE provides goods and services that are basic, fundamental and important to the way
we all live. “Its Essential”
• TEE is as real as the Knowledge Economy but overlooked and taken for granted.
• TEE is a structural part of the overall economy, trails GDP and expands/shrinks with
growth or recession.
• For many Georgian’s TEE, is the economy of last resort.
• TEE jobs are domestic jobs, located in the US and cannot be exported unless you
export the industry i.e. tomatoes.
• While automation may increase productivity in TEE, it will also require and benefit from
real life workers.
• TEE is full of entrepreneurs and self made people.
• TEE is threatened by our aging demographic, upward trends in higher education, the
cost of regulation and US Immigration Policy. We need to know more!
Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658
THANK YOU!
Georgia Public Policy Foundation
2013 Legislative Policy Forum
October 12, 2013