Table Of Content

3 1223 04653 8840 Commerce and Industry Issue Paper No. 1 1^ rancisco Urn- 2 6 1995 sa;-; i-RAf>3Cisco PUBLIC LIBRARY " City and County of San Francisco Planning Department 330. 97 94 Ov2 July 1996 5 ; DESK SANFRANCISCOPUBLICLIBRARY 3 1223 04653 8840 Commerce and Industry Issue Paper No. 1 > an o < < rancisco o conomy DOCiiMENTS DEP*^. ;.U3 2G1996 SAN FRANCISCO RtJBLiC LIBRARY City and County of San Francisco Planning Department July 1996 . COMMERCE AND INDUSTRY ISSUE PAPER No. 1 Acknowledgements Mayor Hon. Willie Lewis Brown, Jr. PlanningCommission SusanE. Lpwenberg,President HectorChinchilla, Vice-President Esther Marks Lawrence B. Martin Beverly Mills DennisA. Antenore CynthiaJoe PlanningDepa.rtment AmitGhosh,DirectorofPlanning Catherine Bauman Miriam Chion Inge Horton DavidLevy Pamelia Maxwell, Graphics Lois Scott Assistance from: Tapan Munroe,Pacific GasandElectric Sue Lee, Office oftheMayor REF 330.9794 Ov25 Reportpreparedbythe PlanningDepartment City and CountyofSan Francisco Office ofAnalysis and Information Systems (OASIS) An overview of the San Francisco economy / 1996. 3 1223 04653 8840 V SAN FRANCISCO PLANNING DEPARTMENT Sf. PUBLIC LIBPvARY AN OVERVIEW OF THE Economy an Francisco COMMERCE AND INDUSTRY ISSUE PAPER NO. 1 San Francisco Planning Department July 1 996 San Francisco is an Increasingly INTERNATIONAL, NATIONAL, Multicultural Cjty AND REGIONAL CONTEXT o 80 White Ethnically Diverse and Skilled Labor Force African-American 36populations :rsityin the 5/S . past 30 years, ti Other ed more than 1960 1970 1980 1990 iic group in San Years cent ofthe DOCUMENTS sgrr. itionin Cahfor^ PEODPUUCLAATTIIOONNALOVLEEVREL1S8 YFEOARRLSAOBLODR FORCE iround 60 and 990 SAN FRANCISCO y^earperiod 1 •%oflaborforce %oflaborforce w/collegedegree w/graduate-prof. degree an Francisco PUBLIC LIBRARY San Francisco 35.3 19.0 it 30 percent of Bay Area , 28.5 1 5.2. edfrom 7 California 20.0 ' 10.0 United States 18.1 9.3 REFERENCE mericans Source: Bureau ofthe Census inoritygroups San Francisco Planning Department BOOK Not to be taken from the Library tural composi- World Class Center for Arts, Culture, and aostvital Convention Activities . In 1990, the I. )rce 18years old San Francisco's arts, culture, andconvention activities and overhad a college degree. Thiswas a muchhigher are animportantpart ofthe BayAreaecononiy. These share than the 29 percent ofBayArearesidents^20 activities form a majorlinkbetweenthe city, the percentofCaliforniaresidents, and 18 percent qf ..region, andthe global economy. This sectorhas shown United States residents. The onlyBayAreacounty high and constantgrowth in employment andvalue . with a higher share ofpopulationwith a college degree added atthe national, regional, and citylevels. For was Marin countywith 39 percent. The same pattern example, between 1980 and 1990, the contribution of is foundforresidents with graduate orprofessional the motionpictureindustrytogross domesticproduct degrees. In SanFrancisco, 19 percentofthe la,borforce increased almost 130 percent. In the same period arts , over 18had a graduate orprofessional degree. and culture related emplpyment in San Francisco increasedby about 16 percent. These and other creative andbusiness activities are contributingto the multimediaindustry, akeyemergingsector. JULY 1996 1 AN OVERVIEW OF THE Economy an Francisco COMMERCE AND INDUSTRY ISSUE PAPER NO. 1 San Francisco Planning Department July 1996 San francisco is an Increasingly INTERNATIONAL, NATIONAL, Multicultural City AND REGIONAL CONTEXT White Ethnically Diverse and Skilled Labor Force African-American San Franciscohas one ofthe mo?t diverse populations amongUnited States cities. Ethnic diversityinthe . cityhas increaseddranaaticallyoverthepast 30 years. In 1960, thewhite population representedmore than 1960 1970 1980 1990 80 percent ofthetotal. In 1990, noethnic group in San Years Francisco represented more than 50 percentofthe total population, while the white populationin CaliforT EDUCATIONAL LEVELS FOR LABOR FORCE POPULATION OVER 18 YEARS OLD nia andthe United States represented around 60 and 990 1 % 70percentrespectively. Duringthe 30yearperiod oflaborforce %oflaborforce w/college degree w/graduate-prof. degree priorto 1990, theAsian.populationin SanFrancisco San Francisco 35.3 19.0 increased from about 8percentto almost30percent of Bay Area 28.5 15.2 . the total population. Hispanics increasedfrom 7 California 20.0 10.0 United States ' 18.1 9.3 percent to nearly 15 percent. African-Americans remained atabout 10 percent. Otherminoritygroups Source: SBaunreFaruanocfitshceoCPelannsnuisng Department represented about 6 percentin 1990. In addition to the increasingly multicultural composi- World Class Center for Arts, Culture, and tion ofthe city, one ofSan Francisco's mostvital Convention Activities . resources is ahighlytrained laborforce. In 1990, the 35 percentofthe SanFrancisco laborforce 18 years old SanFrancisco's arts, culture, and convention activities andoverhad acollege degree. Thiswas a muchhigher are animportantpartoftheBayAreaeconomy. These sharethanthe 29 percentofBayArea residents,.20 activities form amajorlinkbetweenthe city, the percentofCaliforniaresidents, and 18 percent of .region, andthe global economy. This sectorhas shown United States residents. The onlyBayAreacounty high and constant growth in employrnent andvalue . with ahigher share ofpopulationwith a college degree added atthe national, regional, and citylevels. For was Marincountywith 39percent. The same pattern example, between 1980 and 1990, the contribution of is foundforresidentswithgraduate orprofessional themotion pictureindustryto gross domestic product degrees. In SanFrancisco, 19percentofthelaborforce increased alinost 130 percent. Inthe sameperiod arts , over 18had a graduate orprofessional degree. and culture related employment in San Francisco increasedby about 16 percent. These and other creative and business activities are contributingto the multimediaindustry, akeyemergingsector. JULY 1996 1 . COMMERCE AND INDUSTRY ISSUE PAPER No. 1 The San Francisco Symphony, Opera, and Ballet Leading States for Major Conventions continue to draw classical artspatrons from aroiind the 1991 region and the world. The Museum ofModernAr.t, Fine NewYork Arts Museums, andtheAsianArtMuseum are also Nevada Pennsylvania strongvisitor attractions. However, whatmakes San Georgia Francisco unique amongculturalcenters is theexist- Massachussetts Louisiana ence ofavastnumberofsmall-scale arts organizations. illinois Theyhave emerged as apowerful force in SanFran- DistrictofColumbia Texas Cisco, reflecting and respondingtothe changingethnic Florida California composition, and to generational changes inthe arts 2 4 6 8 10 12 audience. PercentoftotalUSConventions , Since the late 1980s, convention activities have rapidly ofabout 660,000 square feet and anestimated armual increased atthe national, state, and locallevel. Be- attendance rangingfrom 650,000 to 800,000 peryear. The tween 1988 and 1993, exhibit spacein.United States demand for convention space in the city islikelyto remain cities increased about 20 percent to total approximately high. 58 inillion square feet. Between 1987 and 1991, . Reduction of Mahufacturing Jobs Reflects Connections to the Global Economy Worldwide Patterns of Industrial Restructuring 13.4 million visitors to Sah Francisco in 1993 The city receives $40 million annually from visitor Since the end ofWorld War II,jobs in traditional manufac- spending turingin advanced industrializedcountries have declined $88 million peryear in total hotel tax revenues due tolarge increases in productivity aswell as relocation 66,400jobs directly supported by visitor spending to countries withlowerlabor costs, less stringentenviron- mental regulations, andlower taxes. Thisrelocationhas been possible because ofthe improvementsin cornmunica- national trends also showed an increase inspace and tion and-transport technologies, aswell as the reorganiza- attendanceperconvention. Californiahas ledthe tion ofproduction processes intasmaller and more discreet United States in majorconvention activities ajnd tasks. captures about.12 percent ofall conventions nation- wide. Between 1980 and 1990, manufacturing employment declined significantly - from40 percentto 34 percentof " OntheWest Coast, SanFrancisco,represents one ofthe totalUnited Statesjobs. HoWever, interms ofgross most attractivelocations. In terms ofconvention space doinesticproduct, total manufacturingoutputincreased availability, SanFrancisco ranks fourthin thewest, from40 to 41 percentofthe national total. Thig is a after LasVegas, LosAngeles, andAnaheim. San reflectionofgreaterproductivityin manufacturirig. Francisco attracts'24percentofall exhibitors on the westcoast, 22 pfircentoftotalattendance, 20 percentof Asimilartrendwas observed atthe regional and local iall events, and 15percentofspaceused, .Whenlooking levels. In the BayArea, theshare ofmanufacturingjobs at conventionsbyindustry, SanFranciscohas alarge declinedfrom 36 to 33 percentofalljobs. InSanFran- market share ofelectronic/computers, medical, andfood cisco,manufacturingjobs declinedfrom 30 to 22percentof and beverageevents. . . totaljobs. ' " The Moscone Convention Centeris the 20thlargest convention centerin NorthAmericawith a total space 2 SAN FRANCISCO PLANNING DEPARTMENT AN OVERVIEW OF THE SAN FRANCISCO ECONOMY Traditional manufacturinghas continued to face a UNEMPLOYMENTRATES numberofconstraints in SanFrancisco, such as high 1990-1995 land prices, limited land availability, and limitedrail 10.0 andport accessibility. However, new industries and 9.0 restructuredold industries are creatinga "new industrial" space in SailFrancisco, Multimediarepresents 8.0 California one ofthe emergingindustries in San Francisco, with § 7.0 c the highest concentration ainong all metropolitan 0) - San Francisco I 6.0 regions in the United States. Apparel manufacturing a. BayArea in SanFranciscohas remained strongthroughoutthe 5.0 United States recentrecessionbyshiftingfrom massproduction to 4.0 highvalue designeirproducts. Printing andpublishing 3.0 is incorporatingnew information technologies and 1990 1991 ,1992 1993 1994 1995 represents akey support industryforthe San Francisco financial sector. .' . REGIONAL INTERDEPENDENCIES Recent Employment Recovery: San Francisco Bay Area Faster than the State Jobs - Housing - Triansportation Within the BayArea, SanFrancisco was one ofthe cities most affected bythe recession. Between 1990 and In.1995 SanFranciscohad 526,000jobs, with 240,000 1993, San.Francisco employment declined from 559,000- (46 percent) heldbyworkers livingoutside thecity. Of to 522,000 or about 6 percent. Between 1993 and 1995, these, 51,000 workers came from the North Bay; employment in San Francisco remained-stable. Silicon 101,000.from the EastBay; and 78,000 from the South Valley lost a large-r numberofjobs, biit propDrtionally Bay. In addition, about 10,000 workers cameto work in San Franciscohad the highest employment decline. San Francisco from outside ofthe BayArea. Almost 80 These trendswere mainly due to thedownsizingin percentofall commuters work in downtown San industries such as finance, teleccrmmunications, and Francisco. The totalnumberofcommuters into San Francisco is largerthanthe numberofcommuters to utilities. . anyother countyorsubregionwithin the BayArea. San Francisco Unemployment Rate is one ofthe Highest in'the BayArea San Francisco shows one ofthehighest rates ofpublic transit ridership comparedto the region orthe nation. Since 1990, the unemployment rate gap between About 60 percentofthe total combined cityresident San Francisco and the BayArea has been increasing 1990 - San Francisco 4.1%, Bay Area 4.0% ' and commuterworkers in.San Francisco use public . • 1995 - San Francisco 6.4%, Bay Area 5.4% transportation orrideshare; the fourth highest transit inode-share in the nation. Withinjust the commuter sector, about 40 percentuse public transportation or a The San Francisco BayArea's recoveryfrom the recent rideshare program. The transitsystemhas made it recession started in 1994. Between 1993 and 1994,: possible for SanFranciscoto be amajoremployment employment in the BayArea showed almostno decline. centerwithout severe congestion problems andgreater In 1995, it increasedby 5,000jobs up to 2,850,000 . demandsforparking space. Because ofits economic,diversity, the BayAreahas . weathered the recessionbetterthanthe statewithonly a 2.3 percentdecline injobs during 1990-93 compared to 3.8 percentforthe state. JULY 1996 3 COMMERCE AND INDUSTRY ISSUE PAPER No. 1 Commuters to San Francisco Jobs inSan Francisco 101,000 from the East Bay San Francisco had 526,000jobs in 1995 51,000 from the North Bay Lost 40,000jobs between 1990 and 1993 78,000 from the South Bay IHas gained 5,000jobs since 1994 - slower growth 10,000 from out of Bay Area than the rest ofthe region Services, Government, Retail, and FIRE (Finance, Insurance and Real Estate) comprise 80,percent of The FIRE and legal services industries provide 13 alljobs percent oftotal San Francisco employment, apercentage thatis almost twice to four times the share ofthesejobs inthe BayArea, California, ortheUnited States. They Jobs in San Francisco sferve most counties and industries inthe BayAreawith 1983-1995 particularconcentration in: ^yholesale businesses in San Mateo andAlameda; transportation services inContra Costa and San Mateo; retail in Solano, Sonoma, and Contra Costa; petroleum refiningin Contra Costa; motionpicture production in Marin; andeducational services in Napa, Marin, and San Mateoi Business and professional services represent a clusterof activities thatprovide direct supportto mostother activities inthe BayArea economy. This industry 983 1985 1987 1989 1991 1993 1995 clusterrangesfrom advertisingandphotocop5ringto engineering and research anddevelopment. Itrepre- Industrial Linkages The SanFranciscoBayArea is avital economicregion providing an enormous diversity ofproducts and ser- NORTHBAY vices. This diversity and strongUnkages amongindus- 597,000 tries writhintheregionhave restaltedinrobust economic 51.000 66.000 health. Withintheregion, thecityofSan Francisco plays averyimportantrole as ainternationalcultural center and as acenterforfinance andhighlevelbusiness 15.000 services. The sectors,most closelylinkedto the regional economyinclude finance, insurance andreal estate EASTBAY (FIRE); apparel manufacturing; transportation services; 1,1.29,000 business andprofessional services; motion picture sANFmm production; hospitalityand tourism; andthe arts. These criticalsectors exchange services andgoods with the rest m.ooo ^^^.^.. 5300' 25.000'- .: 135.000 ofthe regional economy. Thus, theirgrowth and decline / impact otherindustries in the region. 65,000 The San Francisco economyrelies primarilyonMarin, . Sah Mateo, and Contra Costa counties for the provision SOUTHBAY , ofindustrial supplies. On the otherhand,.Napa and San 1,215,000 Mateo are the mainbuyers ofSan Francisco's goods and services. 4 SAN FRANCISCO PLANNING DEPARTMENT