ECONOMIC PULSE. Nevada Leads Nation in Private-Sector Job Growth and Economic Momentum

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Clifton Damon Rogers
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1 # VegasStrong The ECONOMIC PULSE N O V Nevada Leads Nation in Private-Sector Job Growth and Economic Momentum The performance of Nevada s economy in 2017 continues to impress, with the Silver State outpacing the rest of the country by several measures. As of the first quarter of 2017, Nevada saw the fastest private-sector job growth in the United States at 3.6 percent. The state added 40,000 jobs relative to the first quarter of In the third quarter of 2017, Nevada grabbed the top spot in the Index of State Economic Momentum, which ranks states based on their performance in three key metrics of economic vitality: personal income growth, employment growth and population growth. MORE JOBS GREATER DIVERSITY 182,000 Manufacturing HIGHER WAGES New jobs pay 2X over six years Logistics & Operations MORE THAN OLD + Information Technology + No. 1 in private sector job growth, Q Health & Medical Aerospace & Defense GREW BY MORE THAN 27% of national trends No. 1 in wage growth

2 I am pleased to see the progress that we have made in the Silver State in rebounding from the recession, said Governor Brian Sandoval. Moving to first place in job growth nationwide is a testament to the tremendous resolve of our citizens and businesses and the dedication everyone has shown in putting Nevada on top once again. Prior to the recession, the state led the country in job growth at 6.4 percent and was the hardest hit during the recession with a percent growth rate in Nevada currently leads the way in job growth ahead of Idaho, Florida, Utah and Georgia. According to GOED Research Director Bob Potts, a closer examination of what is happening in Nevada reveals broad changes that bode well for the future of the state s economy. Students at Truckee Meadows Community College training in advanced manufacturing as part of the Panasonic P3 program to work at the Tesla Gigafactory. With the addition of more than 182,000 private sector jobs over the past six years, Nevada s economic recovery has been strong. The good news, however, doesn t end there. When we review the underlying industry trends within that growth, the mix and distribution of those new jobs are decidedly different than they were in This structural change has moved us well down the path to a more sustainable and vibrant economy, said Potts. All but one of Nevada s emerging sectors grew by more than 27 percent of what would be expected after taking out national growth trends. For example, manufacturing growth over the past six years exceeded expected growth by percent followed by logistics and operations (77.3%), information technology (58.9%), health and medical (54.9%), and aerospace and defense (27.8%). Much of this structural change can be attributed to strategic economic development and diversification efforts. For example, without the assistance of economic development agencies and private entities across the state, our manufacturing sector would have lost jobs where, in fact, it grew by almost 5,500 positions. Likewise, 81.3 percent of aerospace and defense jobs, 76.2 percent of IT jobs, 71.9 percent of natural resource jobs, 53.8 percent of logistics and operations jobs, and 9.8 percent of health care jobs were brought online with the assistance of economic development, said Potts. Potts added that the wages paid by jobs supported through economic development efforts in Nevada are higher than average, a point underscored by the findings of State Policy Reports, which publishes the Index of State Economic Momentum, and the Bureau of Economic Analysis (BEA). Between the second quarter of 2016 and the same period in 2017, national personal income grew a modest 2.9 percent, while Nevada had the strongest year-over-year growth, at 4.8 percent.

Nevada PTAC s How to Do Business with the Government & Business Matchmaker Opportunity Event held at College of Southern Nevada, North Las Vegas Campus.

3 Nevada PTAC s How to Do Business with the Government & Business Matchmaker Opportunity Event held at College of Southern Nevada, North Las Vegas Campus. $166 Million Win for Nevada Businesses Silver State businesses interested in contracting and subcontracting opportunities with local, state, and federal government have a no-charge resource to which they can turn: the Nevada Procurement Technical Assistance Center (PTAC) and Procurement Outreach Program (POP). Funded in part through a cooperative agreement with the Defense Logistics Agency, Nevada PTAC s free services include one-on-one counseling, educational workshops and webinars, networking events, capabilities statement reviews, bid-matching services, System for Award Management (SAM) and small business certification walkthroughs, solicitation assistance, proposal reviews, and contract assistance. FOR THE PROGRAM YEAR AUGUST 1, 2016 TO JULY 31, 2017, NEVADA PTAC: Assisted approximately 1,000 CLIENTS. Provided about 1,900 counseling hours. Sponsored or participated in 70 outreach events. Clients awarded 762 prime contracts with federal agencies totaling about $146M. Clients awarded 15 prime contracts with state and local governments totaling around $2.5M. Clients obtained 55 subcontracts totaling approximately $17.3M. Nevada PTAC has been very helpful to me and my company. I have learned much in the ways of government contracting from the team. Without them, I could not have been awarded our first government contract with the Department of Homeland Security, said Ed Norton, a Las Vegas-based, certified service-disabled, veteran-owned small businessman. For more information on how Nevada PTAC can help, go to:

4 Microsoft s A.I.-Controlled Glider Soars at Nevada UAS Test Site in Hawthorne This August, GOED and the Nevada Institute for Autonomous Systems (NIAS) teamed up with Microsoft s Unmanned Aerial System (UAS) research team to test artificial intelligence (AI) in a 16.5-foot, 12.5-pound sailplane. The sailplane Microsoft is testing relies on a battery to run onboard computational equipment and controls such as the rudder, plus radios to communicate with the ground. It also has a motor so that a pilot can take over manual operation when necessary. But once airborne, the UAS demonstrated its ability to operate on its own, finding and using thermals to travel without the aid of the motor or human. Microsoft researchers have created a system that uses artificial intelligence to keep the sailplane in the air without using a motor, by autonomously finding and catching rides on naturally occurring thermals, like how wild birds stay aloft. Birds do this seamlessly, and all they re doing is harnessing nature and they do it with a peanut-sized brain, says Ashish Kapoor, a principal Microsoft researcher. The testing was conducted at the Hawthorne Advanced Drone Multiplex (HADM) test range located in Hawthorne. HADM is a 230-square mile area where a variety of UAS applications can be tested including AI. NIAS manages the FAA-designated Nevada UAS Test Site, which includes HADM and other UAS test ranges across the state. The Microsoft operation was based at the Hawthorne Industrial Airport where preliminary tests were made. Subsequent tests were conducted at an area east of Walker Lake around six miles from the airport. The team flew three different sail planes that reached an altitude of approximately 1,700 feet, flying almost twodozen Nevada UAS Test Site Certification of Authorization flights from August 7 to 11. Innovative A.I. technology, like what Microsoft tested with NIAS, is clearly where the most dramatic global UAS Industry disruptions will occur. This is one of the most exciting developments I have seen over the past several years in Nevada, said Dr. Chris Walach, Director of the FAA-designated Nevada UAS Test Site.

Nevada wholeheartedly supports the growth of the Unmanned Aerial System industry, and teaming with global technology leader Microsoft to perform these Nevada-based tests speaks to our leadership role

Governor Sandoval and our Legislature expect us to engage in the growth of transformative technologies and I am grateful for the opportunity afforded by Microsoft to team and to do just that, said

5 Nevada wholeheartedly supports the growth of the Unmanned Aerial System industry, and teaming with global technology leader Microsoft to perform these Nevada-based tests speaks to our leadership role with the global community. Governor Sandoval and our Legislature expect us to engage in the growth of transformative technologies and I am grateful for the opportunity afforded by Microsoft to team and to do just that, said Tom Wilczek, Industry Specialist for the Nevada Aerospace and Defense Industry for the Governor s Office of Economic Development. Barrick Gold, Great Basin College and GOED Team Up to Help Veterans What started as the brainchild of veteran and GOED Mining Industry Specialist Sheldon Mudd has turned into hundreds of hours of internships with Elko area businesses made possible by Barrick Gold Corp. and Great Basin College. Operation Bravo launched in January 2016 with Barrick donating nearly $75,000 to pay for GBC s military veteran students to gain job experience as interns. It is named in memory of Marine Lance Cpl. Raul Bravo, an Elko native who was killed in Iraq. An August 31, 2017 event was held to honor student veteran participants, as well as business participants Elko Sanitation, the Elko Blacksmith Shop, General Fence, and Ellison Electric. It is always difficult for me to articulate how much the men and women of our military mean to me and we want to make sure L to R: Michael Cailor, OB program coordinator (USN), Michael Davis (USMC), Michelle Milam (USN), Governor Brian Sandoval, Michael that when you return home, you have all the Bolley (USA), Jordan Ransom (USA), Jacob Park, GBC Veteran opportunities you deserve, said Governor Resource Coordinator (USA), Sheldon Mudd, GOED (USAF), Michael Brian Sandoval. Brown, President, Barrick U.S.A. As Barrick U.S.A. President Michael Brown attested, veterans are valued employees because they are disciplined, innovative, and are team players who put service over self. If a company is interested in supporting Operation Bravo, please contact Robert Michael Cailor, Operation Bravo Coordinator, at or robert.cailor@gbcnv.edu.

Japanese Company Brings Innovative Water Technology to Nevada WaterStart, the Knowledge Fund-supported incubator housed within the Desert Research Institute, has partnered with prominent,

6 Japanese Company Brings Innovative Water Technology to Nevada WaterStart, the Knowledge Fund-supported incubator housed within the Desert Research Institute, has partnered with prominent, Japanese-based METAWATER on a pilot project to develop online sensor technology to be used in the process of water treatment. METAWATER s new sensor will focus on detecting bromate, an unwanted byproduct of ozonation used in advanced water treatment processes, in real time. Treatment plant operators can use this data to make subtle adjustments to the ozonation process, maintaining protection against potential pathogens while minimizing bromate formation. METAWATER aims to garner additional private investment in the technology with the goal of potentially developing a new business based in Nevada. METAWATER Project Manager Dr. Yasuhiro Matsui and WaterStart Executive Director Nate Allen. The project, which began in August, is in collaboration with researchers from the University of Nevada, Las Vegas and water quality scientists with the Southern Nevada Water Authority s (SNWA) Applied Research and Development Laboratory. WaterStart is providing support to aid in the optimization and commercialization process. WaterStart promotes local partnerships with public and academic sectors, and this helps us connect with private channels that stimulate the formation of new business in the U.S., said METAWATER Project Manager Dr. Yasuhiro Matsui.

MORE WATERSTART NEWS On Oct. 6, nearly 100 people attended the second annual Channels for Innovation Summit hosted by WaterStart and Isle Utilities.

7 MORE WATERSTART NEWS On Oct. 6, nearly 100 people attended the second annual Channels for Innovation Summit hosted by WaterStart and Isle Utilities. Representatives from water management agencies, investors, and technology solution providers convened at the South Point Hotel and Casino to highlight the benefits and challenges of adopting innovation and to explore opportunities for commercialization. Several companies that have completed successful pilot projects with WaterStart s partners were showcased, including RedEye, Syrinix, and Riventa. Waterstart received 34 proposals in response to its 8th RFP from companies around the world with timely, collaborative and unique applications in various areas related to water. Individual grants ranging from $25,000 to $100,000 may be awarded to support activities including testing and evaluation of new technologies, demonstration projects, technical support with research and development, and big data computing. For more information about this and other WaterStart efforts, go to

GOED s Global Reach Cultivates International Investment in Nevada In October, Governor Brian Sandoval lead his second trade mission to Poland and based on results the blossoming relationship with the

8 GOED s Global Reach Cultivates International Investment in Nevada In October, Governor Brian Sandoval lead his second trade mission to Poland and based on results the blossoming relationship with the European Union member represents a model of success for GOED s international team. The bilateral partnership between Nevada and Poland continues to surpass any expectations we had prior to our first trade mission in 2015 and I am now thrilled to formalize commercial and educational opportunities between our two dynamic economies, said Governor Brian Sandoval. Agreements were signed between the University of Nevada, Reno College of Business and the Warsaw School of Economics (SGH), and between the Nevada Institute of Autonomous Systems (NIAS) and Institute of Aviation in Warsaw (ILOT). Governor Sandoval and Marshal Sławomir Sosnowski of Lublin Province also signed a letter of intent to establish a joint acceleration bridge program between Nevada and the Polish region to facilitate investment and educational collaboration. From Europe to Africa to Latin America and Australia, the Governor and GOED are working hard to replicate such accomplishments. The message is always the same: Nevada offers innovative international companies the best location to build a U.S. presence and our technological and educational know-how can deliver growth opportunities in international markets. Governor Brian Sandoval and Polish President Andrzej Duda. An already fruitful agreement between Nevada s Desert Research Institute and Italian Ministry of Environment, Land and Sea is in the process of expanding to Botswana, Kenya and Namibia to explore how drones can be used in land management and to combat poachers. GOED is working with Tekes, the Finnish Funding Agency for Technology and Innovation, on ecosystem development for unmanned systems and water tech, which are two areas attracting a great deal of attention.

Queensland, Australia-based water technology company RedEye opened its North American headquarters in Nevada earlier this year and teamed with Knowledge Fund initiative WaterStart to undertake

9 Queensland, Australia-based water technology company RedEye opened its North American headquarters in Nevada earlier this year and teamed with Knowledge Fund initiative WaterStart to undertake projects with the Southern Nevada Water Authority and the Las Vegas Valley Water District. This collaboration was the result of a 2016 trade mission to Australia. A reciprocal visit to Nevada by the Premier of Queensland, Annastacia Palaszczuk, took place in June of this year to discuss RedEye s growth and the possibility of establishing the WaterStart program in Queensland. She signed a memorandum of understanding to facilitate collaboration between the University of Nevada, Reno and Queensland University of Technology on the development of technologies related to autonomous vehicles, air quality, exhaust emissions, and hydrology. Governor Brian Sandoval and Polish Deputy Prime Minister and Minister of Science and Higher Education Jaroslaw Gowin. STEP Grant Supports More Than $1.2 million in New Export Sales The U.S. Small Business Administration has once again awarded GOED the State Trade and Export Promotion (STEP) grant for federal fiscal year 2018 in the amount of $125K. Through the grant, GOED can provide financial assistance awards to eligible small business concerns in Nevada to assist with export sales related activities to include foreign market sales trips, exhibiting at trade shows, participation in trade missions, and some marketing activities. In FY 2017, GOED provided grants to 17 Nevada companies resulting in new export sales exceeding $1.2 million. For more information, please contact Erica Adler at eadler@diversifynevada.com or (702) , or visit

10 News Nevada Business Magazine highlights the success of the coordinated efforts to advance from the post-recession doldrums and a 12 percent unemployment rate toward a vibrant, innovative statewide economy. Read more: Upcoming events 2018 GOED BOARD MEETINGS TIME NORTHERN LOCATION January 18 March 15 May 17 July 11 September 20 November 15 1pm The Capitol Assembly Chambers Nevada Capitol Building, Carson City SOUTHERN LOCATION Governor s Conference Room Grant Sawyer Building, Las Vegas Board Members Governor Brian Sandoval, Chairman Lieutenant Governor Mark Hutchison Secretary of State Barbara Cegavske Mr. James Barrett, President, the JABarrett Company Ms. Dana Bennett, President, Nevada Mining Association Mr. Dan Klaich, Voting member at-large Mr. Rob Roy, CEO/Founder, Switch Dr. Weldon (Don) Havins, MD, JD, Professor and Director of Medical Jurisprudence and Ophthalmology, Touro University Nevada Dr. Thom Reilly, Chancellor, Nevada System of Higher Education Mr. Don Soderberg, Director, Department of Employment, Training and Rehabilitation West Nye Lane, Carson City, NV E. Washington Avenue, Suite 5400, Las Vegas, NV

awarded a $477,000 NASA Task Order for follow on drone air traffic management support to be performed at Reno Stead Airport.

Page 2 5. On September 30, 2017, NIAS, through GOED, was awarded a $477,000 NASA Task Order for follow on drone air traffic management support to be performed at Reno Stead Airport. The NASA tasks encompass