Economic Resource Council

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Please visit the following sites for information in economic development in Nevada County.

Nevada County Economic Resource Council Web Site

Nevada County New Business Network Blog

AJA Video is growing and breaks ground on new building.

Russ Steele

On June 23rd, 2008 Litton East Partners broke ground on a building that will be come the new headquarters and corporate offices for AJA Video. The new 44,590 square foot office building rests on 4.6 acres on the south side of Litton Drive. Gray Construction was selected by Litton East Partners, as the general contractor this new headquarter building.

When completed in August 2009, AJA Video’s corporate, administrative and sales functions will occupy approximately 29,500 square feet of space, with the remaining 15,090 square feet of space being designated for  manufacturing and warehouse operations complete with loading docks.

The building will incorporate “green building” elements, including dual glazing low-E tint windows, sun shades, the  use of “Greenscreen” modular panels, and the provision for rooftop solar panels. The overall site plan incorporates a new main entrance off Litton Drive, 167 parking spaces, and extensive landscaping and open space, including a connection to the local trail system. The main entrance to the building will be set off by a stucco fascia and entry canopy.

At a time when the local economy is struggling this good news for the community. News that has gone unreported in the newspapers, or on local radio stations. It is not a stealth project and should be recognized that Western Nevada County's applied technology cluster is growing even in a down economy. Once this expansion is complete and companion engineering build is built next door, AJA work force will expand by 45 to 50 people, many of the new employees will be highly paid engineers. This is good news for our local economy and should be celebrated by everyone.

Starting a Business: It’s Never Too Late, by Michael S. Malone

At age 54, I’ve just started two companies. And what I’ve already learned from the experience is that not only am I more suited for the task now than I was at 27 or 38, but that the world of entrepreneurial start-ups is now much more suited for me. And for you.

Check this story out here, there maybe an opportunity for you. Your never too old to start a company, Col Sanders was 65 when he started KFC.

Local Coffee Cookies Going Global

Cookie business in Nevada City makes news on Ch13.

Could a Nevada County Business Incubator Succeed?

Russ Steele

I was looking for an other document in my Library, when I can across a report purchased long ago and put on my library shelf: Business Incubation Works.  From the stiffness of the pages, it looks like I never even read the report after buying it. It was published in 1997, and may have been on the shelf for a while. 

From part of the Executive Summary:

Business incubators are helping build healthy, lasting businesses and they are doing it for low cost and with a good return on investment to supporters. A very high percentage of incubated companies remains in their communities, confirming the goal of business incubators to build the business base and potential for job creation in their regions. This study - the most comprehensive one on business incubation to date - was conducted under a grant from the Economic Development Administration by the University of Michigan, National Business Incubation Association, Ohio University, and Southern Technology Council. Using a combination of surveys, focus groups, stakeholder panels, and regional macroeconomic analysis, the study found that:

• Business incubation programs help companies create many new jobs. In 1996 incubators reported, on average, that their firms had created 468 direct and 702 total jobs.

• Business incubation programs create new jobs for a low subsidy cost and a substantial return on investment. The estimated public subsidy cost per job created was $1,109.

• Incubator companies experience very healthy growth. For example the average annual growth in sales per firm was $239,535.

• Business incubation programs produce graduate firms with high survival rates - a reported 87 percent of all graduates are still in business.

• Most firms that graduate from business incubators remain in their local communities - an average of 84 percent.

• Most incubator firms provide employee benefits.

• Incubation programs contribute to their client companies' success and expand community entrepreneurial resources.

• Business incubation programs improve local community image.

• EDA-funded incubators perform better than or equal to non-EDA funded counterparts.

Macroeconomic research revealed wider impacts - in terms of wages, direct and indirect jobs, and local tax revenues - that incubator clients and graduates can have on their communities. Although the number of companies used in this part of the analysis was relatively small, the data revealed that incubator firms studied returned considerably more dollars to a community than it costs to subsidize the business incubator program.  [The rest of the summary deals with the conduct of the study]

Several cautions. This study was done in the go-go 90s and covered larger communities than we have in Western Nevada County. It would be good to read and study the whole report to see what lessons we can apply our local community.   

Gil Mathew Joins ERC

Gil Mathew has joined the ERC as President and CEO. Gil was the founder and President of Benchmark Thermal, a Grass Valley export manufacturer, designing and manufacturing industrial heating elements and applications for a variety of industries from aircraft galleys to semiconductor tools. Benchmark grew from 2 employees to 60 employees over its 23 years under Gil’s direction. He sold the business with the caveat that it must remain in Grass Valley for a minimum of 7 years.

 

Open Thread to discuss the Siefel Economic Strategy Report

Russ Steele

I have opened a thread for people to comment on the Siefel Report: Western Nevada County Economic Development Strategy which can be down loaded here.

Career Technical Education: Creating Options for High School Success

Chuck Neeley

A recent article appeared from Bonnie Graybill from the State of California that I thought was of interest:

Citing an estimated 30 percent high school dropout rate in the state, the commission said it found 'encouraging evidence' that what is now called 'career technical education,' or CTE, properly focused, 'can deliver an alternative approach to learning that can keep students engaged, help improve grade-point averages and prepare students for both the work world and higher education.'  The commission recommends that CTE programs already proven to work be replicated around the state 'to build a long-term, evidence-based strategy that fully integrates academically rigorous career technical education into the general education programs.'  It wants partnerships between those running CTE programs and potential employers, and says serious attention should be paid to expanding the shrinking number of teachers with both the technical expertise in their fields and academic credentialing." 

Sacramento Bee (November 19, 2007) A3.

http://www.lhc.ca.gov/lhcdir/189/Report189.pdf
 

Recruiting Trends 2007-2008

Chuck Neeley

Michigan State University, in conjunction with MonsterTRAK and Monster Intelligence recently published the above publication.  The Executive Summary pinpoints what is happening on college campuses right now with regards to recruiting.  Graduates with a Bachelor's Degree in IT, and MBAs will continue to be in high demand.  Larger employers are getting aggressive in scooping up college grads to fill their huge pool of Baby Boomers that are about to exit the workforce.  While college graduates will bring energy, enthusiasm, and drive, their spirit of company loyalty will be lacking.  For more details, here is the link:

http://media.monster.com/monstertrak/gfx_email/gfx_msu/rt7-8finald.pdf

Business Location Decisions and Employment Dynamics in California

Chuck Neeley

Ran across a very interesting publication by the Public Policy Institute of California that is very interesting.  Talks about business migrations across State lines, and more.  It can be found at the following Web site:

http://www.ppic.org/main/publication.asp?i=710