High-Speed Rail: Investing in California s Economy. September 2017

Transcription

1 High-Speed Rail: Investing in California s Economy September 2017

2 2 Californ ia Hig h -Sp e e d Rail Au th ority // w w w. hs r. ca. gov

3 Table of Contents HIGH-SPEED RAIL: INVESTING IN CALIFORNIA'S ECONOMY Introduction...4 Investment...5 Benefits... 7 REGIONAL IMPACTS IN CALIFORNIA...8 Central Valley Region...9 Fresno County...10 Sacramento Region...11 Bay Area Region...12 Southern California Region...13 NATIONAL IMPACTS...14 Case Study...16 DISADVANTAGED COMMUNITIES AND SMALL BUSINESS CLOSING...18 METHODOLOGY...19 Inves ti ng i n Cal i forni a' s Economy // September

4 High-Speed Rail: Investing in California's Economy The California High-Speed Rail Authority (Authority) is responsible for planning, designing, building and operating the first high-speed rail system in the nation. California s high-speed rail system will connect the mega-regions of the state, contribute to economic development and a cleaner environment, create jobs and preserve agricultural and protected lands. By 2029, the system will run from San Francisco to the Los Angeles Basin in under three hours and will be capable of speeds of over 200 miles per hour. The system will eventually extend to Sacramento and San Diego, totaling 800 miles with up to 24 stations. The Authority is working with state and regional partners to implement an integrated state rail network investing billions of dollars in urban, commuter, and intercity rail systems to meet the state's 21st-century transportation needs. The 2016 Business Plan, adopted by the Authority's Board of Directors in April 2016, established three fundamental objectives for implementing the high-speed rail program: 1. Initiate high-speed passenger rail service as soon as possible. 2. Make strategic, concurrent investments throughout the system that will be linked together over time. 3. Position ourselves to construct additional segments as funding becomes available. Economic Impact of High-Speed Rail As construction has commenced and the high-speed rail program has transitioned from a planning to a project delivery organization, the program s contributions to the California economy have grown substantially. Starting with just a few employees a decade ago, the high-speed rail program now supports thousands of jobs across all functions - from planning and environmental clearance to engineering and construction. This investment has spurred additional economic benefits around California and across the country. To understand and measure these benefits, the Authority conducted an analysis examining the economic effects of investments from July 2006 to June 2016 that includes: ``Jobs ``Labor Income ``Economic Activity These effects are measured across a number of California geographies, including disadvantaged communities, as well as the rest of the country. 4 Californ ia Hig h -Sp e e d Rail Au th ority // w w w. hs r. ca. gov

5 High-Speed Rail Investment From July 2006 through June 2016, California has invested over $2.3 billion in planning and construction of the high-speed rail system. The majority of this activity has taken place in the state of California, with 94% of this spending going to firms and workers in the state. ``630 private sector firms have worked on the program during this period to bring high-speed rail to California. As the program continues to advance, more firms will be able to participate in the project, hiring new workers and spreading economic benefits to communities throughout the state. ``Additionally, 73% of this investment was funded by federal sources (American Recovery and Reinvestment Act or ARRA), infusing the state s economy with federal dollars. Just as ARRA envisioned, these federal investments have put people to work and helped contribute to the economic recovery in California, and especially in the Central Valley, one of the areas hardest hit by the Great Recession, where construction has been ramping up. FIGURE 1: HIGH-SPEED RAIL DIRECT INVESTMENT & RESULTS JULY 2006 $2.3 Billion JUNE 2016 $2.3 Billion invested from July 2006 through June % Went to California Firms And Workers Over 70% was Funded by Federal Funds (ARRA) have been contracted to work on the program FACES OF HIGH-SPEED RAIL: YOVANI MORENO He's had lots of jobs, but a felony on Yovani Moreno s record held him at minimum wage, about $8 an hour. Today, the 34-yearold makes nearly $24 an hour on the high-speed rail project. He became a laborer s apprentice after taking Pre-Apprenticeship Training at the Construction and General Laborers Union Hall in Fresno. He s moved beams, laid concrete, handled traffic control and more. I come home tired but loving it, Moreno said. I can pay my bills on time. And when my daughter s birthday comes up, I can throw her a birthday party and buy her a nice gift. Investing in California's Economy // September

6 FIGURE 2: STATEWIDE HIGH-SPEED RAIL SYSTEM HIGH-SPEED RAIL: IT'S HAPPENING Two years have passed since the official groundbreaking in Since then, construction has progressed through multiple milestones: San Francisco Sacramento Stockton `` `` `` 119 miles of construction activities are underway. Three design-build construction teams are working between Madera and Kern Counties on contracts valued at $3.24 billion. Realignment of a portion of State Route 99 in Fresno is making room for high-speed rail. San Jose Modesto Merced `` Bridges, viaducts and grade separations are visible at multiple locations and the Tuolumne Street Bridge has opened to traffic in Fresno. Gilroy Madera Fresno `` Workers and residents of the Central Valley are already seeing the benefits of this monumental rail project as the project's economic benefits continue to bolster the recovery. Kings/Tulare Bakersfield LEGEND Silicon Valley to Central Valley Line (San Jose North of Bakersfield) Burbank to Anaheim Corridor Improvements Silicon Valley to Central Valley Extension (San Francisco, Merced, Bakersfield) Phase 1 Palmdale Burbank Los Angeles Anaheim San Bernardino Riverside Phase 2 Proposed Station San Diego 6 California High-Speed Rail Authority //

7 California Benefits Over the last 10 years, California's investment has supported between 19,900 to 23,600 job-years FIGURE 3: JOB-YEARS PER FISCAL YEAR (INCLUDING DIRECT, INDIRECT, AND INDUCED) in California, and resulted in a total of $3.5 to $4.1 billion in economic activity. Jobs supported by high-speed rail investment have grown significantly over the past several years as construction commenced and ramped up in the Central Valley, with over 200% job growth from 2014 to As the program's focus has shifted, the types of jobs supported by the program has shifted from JOB-YEARS (IN THOUSANDS) ,250 FY 06/07 to FY 09/10 2,100 1,800 FY 10/11 FY 11/12 1,850 FY 12/13 2,950 FY 13/14 3,100 FY 14/15 9,450 FY 15/16 12,550 FY 16/17 (Forecast) primarily engineering and environmental/planning services to construction. FIGURE 4: TOTAL CALIFORNIA BENEFITS With plans to complete the high-speed rail connection between the Silicon Valley and the Central Valley in 2025, this future investment is forecast to support almost 200,000 job-years of employment and over $36 billion in total economic activity over time. While the mobility and connectivity benefits of the operations of the Silicon Valley to Central Valley Line are immense, the projected investment of over $18 billion during the planning and construction phase of the segment will generate continued and increasing economic benefits through JOB-YEARS OF EMPLOYMENT 19,900-23,600 LABOR INCOME $1.38B - $1.68B ECONOMIC OUTPUT $3.5B - $4.1B WHAT ARE DIRECT, INDIRECT, AND INDUCED EFFECTS? Direct Effects are those supported by direct Authority investment, including Authority employees and prime and sub-contractors such as engineers, planners and construction workers. Indirect Effects are one step removed and represent spending on goods and services that support direct investment, such as concrete supply and machine rental companies. As the income earned by employees supported by direct and indirect investment gets spent elsewhere in the economy, this supports Induced Effects in places such as the local coffee shop, restaurant, or grocery store. Indirect Effects Concrete Steel Supplies Transport Computers Parts Office Supplies And more... Direct Effects Contractors Construction workers' salaries Manufacturing, production, construction Employees Salaries and other expenses Induced Effects Housing Groceries Retail Recreation And more... Investing in California's Economy // September

8 Regional Impacts in California The analysis breaks down the total economic effect by region to show how investments in high-speed rail have impacted areas throughout California. ``As construction has expanded across the Central Valley, the region has experienced the most substantial economic benefits as that work has generated over $1.2 billion in economic activity in the region. ``The Sacramento, Bay Area, and Southern California regions have also experienced significant economic benefits as a result of the activity taking place at the Authority s Sacramento headquarters and in and around each regional office. FIGURE 5: ECONOMIC IMPACTS BY CALIFORNIA REGION (INCLUDING DIRECT, INDIRECT, AND INDUCED) SACRAMENTO Job-Years of Employment 4,200 Labor Income $290M Economic Output $710M CENTRAL VALLEY Job-Years of Employment 6,800 Labor Income $330M Economic Output $1,200M BAY AREA Job-Years of Employment 2,500 Labor Income $240M Economic Output $460M SOUTHERN CALIFORNIA Job-Years of Employment 2,500 Labor Income $190M Economic Output $420M 8 California High-Speed Rail Authority //

9 CENTRAL VALLEY REGION The Central Valley section of the high-speed rail system is considered the backbone of the project, with its connections to the Bay Area and the Los Angeles Basin being critical to improving accessibility and mobility options for the region s population. Historically, the Central Valley s economy has lagged behind the rest of the state, but now investment in high-speed rail is helping to close the gap. FIGURE 6: CENTRAL VALLEY REGION ECONOMIC BENEFITS JOB-YEARS OF EMPLOYMENT 6,800 LABOR INCOME $330M ECONOMIC OUTPUT $1,200M ``According to a recent report by the University of the Pacific s Center for Business and Policy Research, all Central Valley counties experienced job growth either at or exceeding the state average in This trend is forecast to continue through The Central Valley has experienced the largest economic benefits as high-speed rail investment has poured into the region. ``From July 2006 to June 2016, the high-speed rail program created an estimated 6,800 jobyears of employment and about $1.2 billion in total economic activity in the Central Valley. ``Between July 2015 and June 2016, the program s impact has been equal to about 14% of the 32,000 jobs that the entire Central Valley economy added over the same time period. ``Investment in the Central Valley surged in the past two years with the ramp up of right-ofway work and start of construction activities, showing almost 400% growth in jobs supported from 2014 to It s been non-stop since 2012 for us. Everyone is interested in working on the high-speed rail project. It s the biggest public infrastructure project in the US. Dylan Crawford Principal O Dell Engineering Of those jobs, construction accounted for over 80% of the impact that the program has had in the region, bringing good-paying, middle class jobs to the Central Valley economy. As construction continues to advance, the program will continue to support thousands of jobs annually for the next several years. FACES OF HIGH-SPEED RAIL: O DELL ENGINEERING O Dell Engineering is a Modesto-based certified small business that is working on the high-speed rail program doing right-of-way and surveying work. The company began working on high-speed rail as a subcontractor in 2011, but since has become a prime contractor and has seen its workforce grow from 15 employees to 55 employees. Their work on the program has led to the addition of a Fresno office, which has allowed them to gain additional work outside of high-speed rail. Investing in California's Economy // September

10 FIGURE 7: FRESNO COUNTY ECONOMIC BENEFITS JOB-YEARS OF EMPLOYMENT 5,900 LABOR INCOME $300M ECONOMIC OUTPUT $1,000M FRESNO COUNTY Fresno County is the epicenter of construction-related economic activity since the system s groundbreaking in 2015, resulting in a substantial infusion of jobs and opportunities in the local economy. ``Between July 2015 and June 2016, high-speed rail investment generated the equivalent of 30% of the 10,550 jobs created in Fresno County over the same time period (including indirect and induced effects). ``Direct jobs working on the program were equivalent to 17% of the jobs added in the County over the same time period. Fresno County is where the economic benefits of high-speed rail investment can be seen most clearly. ``Over the last few years, high-speed rail helped bring the unemployment rate down to under 10% for the first time since the Great Recession and just the fourth time in the last 25 years. ``On top of that, the County experienced three consecutive years of annual employment growth over 3%, outpacing the rest of the state. Prior to 2014, Fresno County had just one year of 3% employment growth since Population growth in the Central Valley due to high-speed rail will provide a big demand for concrete and construction products in the local area. Curtis Lovett Owner Outback Materials FACES OF HIGH-SPEED RAIL: OUTBACK MATERIALS Curtis Lovett is the owner of Outback Materials, a certified small business with headquarters in Madera County, that was awarded a contract to provide concrete for the first construction package in the Central Valley. As a result of this work, Outback has hired 25 new employees, purchased over a dozen new pieces of equipment, and even built a new state-of-the-art concrete plant in Fresno. 10 California High-Speed Rail Authority //

11 SACRAMENTO REGION The California High-Speed Rail Authority and the Rail Delivery Partner (RDP) headquarters are co-located in downtown Sacramento. They are comprised of around 400 staff members as of June The RDP is the Authority s major private sector partner who brings a seasoned team of international experts with experience delivering high-speed rail systems from around the world to help California deliver this transformative project. This integrated public-private sector team provides overall guidance and oversight for the high-speed rail program. FIGURE 8: SACRAMENTO REGION ECONOMIC BENEFITS JOB-YEARS OF EMPLOYMENT 4,200 LABOR INCOME $290M ECONOMIC OUTPUT $710M Jobs supported by high-speed rail investment have increased by 10% to 20% per year since 2006 to equal about 4,200 total jobyears of employment through ``Architectural, engineering and related services make up 60% of the jobs in the Sacramento region, and state government jobs comprise 35% of direct jobs supported from July 2006 to June Our work on the high-speed rail program has contributed to our company's growth. When we joined high-speed rail, we didn t have any employees working on the FACES OF HIGH-SPEED RAIL: TEC MANAGEMENT CONSULTANTS Tim Coffey launched TEC Management Consultants three decades ago in Inglewood. As a certified Disadvantaged Business Enterprise, they offer engineering, construction, project management and utility relocation and design services. In 2015, three years after he and his staff attended a high-speed rail outreach event, Coffey became a subcontractor to WSP USA, the Rail Delivery Partner for high-speed rail. In the Central Valley, TEC negotiates deals with cities, counties, water and irrigation districts and communications and power companies who sign third-party agreements to relocate fiber-optic cables and other major utilities such as phone, water, gas and electricity. The company also handles right-of-way land acquisitions and provides contract management. project and now we have nine employees assigned to it and may soon hire a 10th person. Tim Coffey Owner TEC Management Consultants Investing in California's Economy // September

12 FIGURE 9: BAY AREA REGION ECONOMIC BENEFITS JOB-YEARS OF EMPLOYMENT 2,500 LABOR INCOME $240M ECONOMIC OUTPUT $460M BAY AREA REGION In the Bay Area, the high-speed rail program efforts have focused on achieving environmental clearance for the San Francisco to San Jose and San Jose to Merced project sections. ``Community engagement in both of these project sections continues to be essential as we work through the environmental analysis process. ``This work is being undertaken by a team of planners, engineers, environmental scientists, community engagement experts, and others who are working across the region to move the program forward. ``97% of the Bay Area region's jobs are in architectural, engineering and related services. Beyond the environmental analysis efforts, the highspeed rail program is the largest funding partner for the Caltrain Electrification Project, which will electrify and modernize the Peninsula Corridor line to allow for electric commuter as well as high-speed rail service. ``Caltrain awarded a contract to begin construction of the project in 2016 and broke ground in July ``Caltrain estimates that over the course of construction, the project will generate an additional 9,600 direct and indirect jobs. These jobs have not been included in the results presented in this analysis. CALTRAIN CORRIDOR The Caltrain Modernization Program, scheduled to be implemented by 2021, will electrify and upgrade the performance, operating efficiency, capacity, safety and reliability of Caltrain's commuter rail service between San Francisco and San Jose. High-speed rail s investment of $713 million towards these improvements will allow the high-speed rail system to create blended services on the corridor with the Caltrain commuter system. 12 California High-Speed Rail Authority //

13 SOUTHERN CALIFORNIA REGION Similar to the Bay Area, work in Southern California has been focused on advancing the environmental review process for sections of the high-speed rail system in the region (Los Angeles to Anaheim, Burbank to Los Angeles, Palmdale to Burbank, and Bakersfield to Palmdale). ``About 85% of the Southern California jobs from July 2006 through June 2016 have been in architecture, engineering, and related services, and construction jobs have accounted for nearly 8%. ``A number of Southern California firms have also FIGURE 10: SOUTHERN CALIFORNIA REGION ECONOMIC BENEFITS JOB-YEARS OF EMPLOYMENT 2,500 LABOR INCOME $190M ECONOMIC OUTPUT $420M been involved in the Central Valley construction, resulting in the region having the second-highest share of construction workers on the program, behind the Central Valley region. Additionally, as construction begins on local bookend projects that high-speed rail is funding and partnering with local agencies on, new economic activity will be generated in the region. ``Most recently, the Authority gained approval for its $78 million contribution to the Rosecrans/Marquardt Grade Separation Project. This project will close the most dangerous grade crossing in the State, allow for expanded commuter rail service between Los Angeles, Anaheim, and the Inland Empire, accommodate future high-speed rail service in the corridor and support jobs in the local economy. ROSECRANS-MARQUARDT GRADE SEPARATION IN SOUTHERN CALIFORNIA The Authority is funding a portion of the project to grade separate Rosecrans and Marquardt Avenues in Santa Fe Springs. This intersection has been rated by the California Public Utilities Commission as the most hazardous grade crossing in California with over 52,000 vehicles and around 110 trains using this grade crossing every day. To see more visit: Investing in California's Economy // September

14 High-Speed Rail: National Impacts In addition to the benefits that the program has created in California, the rest of the nation has also felt the economic impact of the high-speed rail investment. Companies from 35 different states have worked on high-speed rail and have contributed to everything from design and engineering to construction. The states with the highest investment outside of California include Colorado, New Jersey, New York, Oregon, Texas, Washington, and Washington, D.C. 1. 2R Drilling, Inc Stem Auger Drilling, Mud Rotary Drilling & Rock Coring 2. Aardvark Biological Services Wildlife Surveying 3. Ace Fence Company Fencing 4. Alert Medical Training Preventive Health & Safety 5. Alert-O-Lite Construction Safety Equipment 6. American Crane Rental Crane Rentals 7. American Refuse Waste Management 8. Applied Earthworks, Inc Excavating 9. Area West Environmental, Inc Environmental Assessment 10. Associated Traffic Safety Safety Equipment Supplier 11. BBL Tatum Trucking Trucking 12. Bess Testlab Utility Contractor 13. Blair, Church & Flynn Consulting Engineers 14. BMA Construction Engineers, Inc Construction Engineering 15. Bond and Kennedy, Inc Project Management 16. Bradley Tanks, Inc Liquid & Debris Tank Rentals 17. Cal Lowbed Service Trucking 18. Canyon Fork Ace Hardware Hardware Supplier 19. Capo Projects Group Construction Services 20. CH Bull Company Hydraulic Jacks 21. Charter Industrial Supply Hydraulic Equipment 22. CHS Consulting 23. CMG Hydroseeding Hydroseeding, Drill Seeding, and Erosion Control Solutions 24. Commercial Exteriors Construction Services 25. Constar Supply Equipment Supplier 26. Contect Hoist & Rigging Ropes 27. Curtis Electric Construction, Inc Electrical Engineering 28. Dave s Trucking Trucking 29. Delta One Security Security Services 30. DeWalt Corporation 31. Dillard Environmental Trucking 32. Direct Safety Solutions Construction Safety Equipment 33. Earth Mechanics, Inc Geotechnical & Earthquake Resiliency 34. ERTEC Environmental Systems Erosion, Sediment & Wildlife Control Systems 35. EXARO Technologies 36. Fresno Wire Rope & Rigging Wire Rope & Rigging 37. G&C Equipment Equipment Supplier 38. Garavalgia Architecture, Inc Architectural Services 39. Hoffman Electronic Systems Security Systems 40. Hunsaker Safety & Sign Construction Safety Equipment 41. I-5 Rentals Heavy Equipment Rental 42. IDC Engineers 43. Innovative Concrete Solutions Concrete 44. IS Architecture Architectural Services 45. James Transportation Group 46. Jet Drilling Well Drilling JMA Civil, Inc Civil 48. Jones Heavy Haul Trucking 49. JRP Historical Consulting Environmental Assessment Services 50. Katch Environmental Mold Removal Services 51. Kehoe Testing Cone Penetration Testing and Direct Push Sampling 52. Lalonde Equipment Equipment Rental 53. Landavazo Brothers, Inc Demolition and Recycling EcoDistricts Sustainability Advisory & Certification LCP Tracker Construction Site Compliance 55. Lee Andrews Group Public Relations 56. Leon Environmental Environmental Services 57. Madco Electric Electrical 58. MARRS Service, Inc 59. Martinez Steel Corp Steel Fabricator ILF Consulting Civil Engineering Imagen, LLC Marketing & Public Relations GB Placemaking LLC Transit Oriented Development Spectrum Design Grant Development & Management NC3D (Newlands & Company) Animations, Visual Simulations, Videos & Website Development Barbier International, Inc. Translation & Interpretation Services Amec Foster Wheeler Environmental & Engineering 60. Matson Alarm Company Security Systems 61. Matt-Chlorr, Inc Water Disinfection Kl Hanson Consulting Business & IT Vertical Mapping Resources Digital Mapping & Color Orthophotography Services Todd Ba Renewa Prefe Safet H.C. Peck Right of W Briggs Field Right of Way 14 California High-Speed Rail Authority //

15 Commonwealth Associates Inc Engineering Design Cross-Spectrum Acoustics Inc Noise & Vibration Commonwealth Associates Inc Systra Engineering Consulting Design High-Speed Rail Experts Systra Consulting High-Speed Rail Experts Cross-Spectrum Acoustics Inc Noise & Vibration rtholf Consulting ble Energy rred Safety Products y Equipment & Associates ay Nayak Corporation Power System H.R. Green Co. H.R. Green Co. Aldea Services Simulators Aldea Services & Consulting Environmental Environmental Tunnel Engineering Tunnel Engineering & Engineering & Engineering DC Agrawal Consulting LLC Todd Bartholf Consulting Gall Zeider Consultants Program Management & Renewable Energy Gall Zeider Consultants Geotechnics, Tunnel Engineering Geotechnics, Tunnel Engineering Strategic Advisory Jones Preferred Lang Safety LaSalle Products & Tunnel Construction Jones Lang Management LaSalle & Tunnel Construction Phoenix Management Construction Supply Right Safety of Way Equipment Right of Way Construction Supplies Capital Project Strategies LLC Capital Project Strategies LLC H.C. Peck & Associates Development, Design & Development, Design Power & Solutions Right of Way Construction Construction Cable Management Systems SC Solutions SC Solutions Engineering Design Criteria Engineering Design Criteria Network Rail Consulting Enterprise Wireless Alliance Development & Development & Operations, Enterprise Maintenance Wireless & Alliance Train Communication Systems Construction Support Construction Support Systems Integration Train Communication Systems GCM Consulting Quality Assurance & Quality Control GCM Consulting Quality Assurance & Quality Control Nayak Corporation Power System Simulators & Consulting DC Agrawal Consulting LLC Program Management & Strategic Advisory Phoenix Construction Supply Construction Supplies Power Solutions Cable Management Systems Network Rail Consulting Operations, Maintenance & Systems Integration Spitzer & Associates Right of Way Services Othon Inc Rail Design Services Spitzer & Associates Right of Way Stuart Title Company Briggs Right Field of Way Services Right of Way GSI Environmental Subsidence Engineering & Environmental Services 62. MGE Engineering 63. Mid Valley Engineering, Inc 64. Middle Earth Geotesting Environmental Cone Penetrometer Testing 65. MJ Avila, Inc Construction Services 66. Moore Twining Associates, Inc 67. Mountain Pacific, Inc Civil 68. Oliveira Fence, Inc Fencing 69. OPAC Consulting Structural Engineer 70. Outback Materials Concrete, Rock & Sand Supplier 71. Parrish Hansen, Inc Structural Engineering 72. Pipe Jacking Unlimited Inc Pipe Supplier & Trenchless Construction Othon Inc Rail Design Services Stuart Title Company Right of Way GSI Environmental Subsidence Engineering & Environmental Services 73. Pirhana Pipe & Precast Pipe Supplier 74. Prime Construction Company, Inc Construction Services 75. PTS Rentals Power Generator & Air Compressor Rental 76. Rail Pros, Inc Rail Construction Management 77. Ruperty Construction Supply Equipment Supplier 78. Safety Striping Services Paving 79. Saf-T-Co Supply Pipe Supply 80. Salem Engineering 81. Sequoia Equipment Company Industrial Equipment Supplier 82. Shasta Welding Supply Welding Supply Applied Foundation Testing Geotechnical Services & Foundation Testing Applied Foundation Testing Geotechnical Services & Foundation Testing 83. She Marine Veteran Supply Equipment Supply 84. Sierra Lock and Glass Lock Supply 85. SoCal Drilling Well Drilling 86. Soils Engineering, Inc Construction Services 87. SPER Contracting Corp. Construction Services 88. Super Seal & Stripe Paving 89. Taber Drilling Drilling 90. Technicon Engineering 91. Terra Environmental Environmental Services 92. The 111th Aerial Photography Aerial Photography 93. Touch of Green Landscape Landscape Design 94. UNICO Engineering Construction Services 95. USC Supply Building Materials 96. Valverde Construction Construction Services 97. Ventura Consulting Group Strategic Advisory 98. Verux Strategic Advisory 99. Western Traffic Supply Construction Safety Equipment 100. Wild Electric Electrical Engineering 101. WKE, Inc Wreco Civil NATIONAL IMPACT States with companies working on the program No companies working on the program in these states ROLE ON PROGRAM Construction Services Strategic/Financial Services Real Estate Services Environmental Services Transportation Services Outreach Services Media Services Equipment Suppliers Other Services Investing in California's Economy // September

16 NATIONAL IMPACTS CASE STUDY: CON-FAB CALIFORNIA Producing steel girders for high-speed rail bridges is a big undertaking for Con-Fab California. Workers at the firm s Lathrop plant recently started fabricating girders for several overcrossings located in and around Fresno. In total, they will manufacturer 700 girders for 22 high-speed rail bridges. Known as concrete bridge girders, the beams are the longest of their kind ever made in California. While the girders are assembled in the Central Valley by local workers, many of the materials needed come from other parts of the country including Arizona, Wisconsin, Wyoming and Tennessee. Because the work they are doing is federally funded, the beams have to be in compliance with the Buy American Act. Chief Engineer Brent Koch explained that means, all steel used in the manufacture of these girders must be produced in the United States of America. Not only that, the cement being used for the concrete comes from Lehigh [Southwest] Cement s Cupertino terminal, and the aggregates come from Knife River [Corporation s] Vernalis quarry just south of Tracy. Currently, the company has 30 employees assigned to the job. More are expected to join the effort when the firm s Shafter plant starts producing high-speed rail materials. We re very proud to FIGURE 11: MANUFACTURING IMPACTS REACH NATIONAL LEVEL be participants in the one-of-a-kind highspeed rail project. It s a great opportunity for our employees to contribute to a project that will change the way that Californians live and work. Brent Koch Chief Engineer Con-Fab California 16 California High-Speed Rail Authority //

17 Focusing on California s Disadvantaged Communities and Small Businesses California s high-speed rail program is committed to ensuring small businesses and disadvantaged communities throughout California benefit and play an active role in building the system. Investments made by high-speed rail have promoted employment and business opportunities for small and disadvantaged businesses and workers. Not only is the high-speed rail investment having a substantial economic impact, but it s happening in communities that have often been left behind by previous government investments. This has not been an accident, as high-speed rail s focus in helping create opportunities for small businesses and disadvantaged workers has helped ensure that the benefits of the program reach all communities across California. 52% of project expenditure occurred in designated disadvantaged communities throughout California, spurring economic activity in these areas. Through June 2016, 52% of project expenditures occurred in designated disadvantaged communities throughout California, spurring economic activity in some of the areas that need it most. Additionally, almost a quarter (23%) of program investment has occurred in the most disadvantaged communities in the State. Construction of the system in the Central Valley, where many disadvantaged communities are located, benefits those communities by providing career opportunities in well-paying middle-class jobs. Due to the implementation of the Small and Disadvantaged Business Enterprise Program (from August 2012 to June 2016), more than $196 million has been paid to certified Small, Disadvantaged and Disabled Veteran Business Enterprises for their work on the high-speed rail program. For the same period, professional services contractors have collectively met the 30% small business utilization target, while design-build contractors are working to attain their utilization target as construction activities ramp-up. FIGURE 12: SMALL BUSINESS PARTICIPATION - JUNE rail Certified Small Businesses working on the high-speed program statewide 116 Certified Disadvantaged Business Enterprises 45 Certified Disabled Veteran Business Enterprises More than $196 million has been paid to certified Small, Disadvantaged, and Disabled Veteran Business Enterprises in California for their work on the highspeed rail program through June SOUTHERN CALIFORNIA: Certified Small 127 Businesses NORTHERN CALIFORNIA: Certified Small 159 Businesses CENTRAL VALLEY: Certified Small 108 Businesses OUTSIDE OF CALIFORNIA: Certified Small 13 Businesses Investing in California's Economy // September

18 Economic Benefits Will Grow with Time California is making significant investments in high-speed rail infrastructure with the mission of linking San Francisco/Merced to Los Angeles/Anaheim through the Central Valley and future extensions south to San Diego via the Inland Empire and north to Sacramento. With the federal and state funds invested to date, viaducts, bridges and grade-separations are rising up in the Central Valley to support this program providing well-paying jobs, putting people back to work and creating opportunities for small businesses all over the state. Companies are hiring workers, purchasing new equipment, manufacturing parts and equipment and laying the groundwork for a vital, new high-speed rail industry. Over the coming years, these investments will grow and the range of dividends economic, environmental and social will continue to increase. Furthermore, when construction is complete an operating high-speed rail system will connect and transform California by bringing communities together like never before. This connectivity will continue to contribute to California s future economic growth and help shape the California economy of tomorrow. The Authority has conducted a thorough economic impact analysis on current and previous investments in high-speed rail across California. After reviewing the study, we believe that the methodology and assumptions used for this project are sound and in keeping with other economic impact reports of similar focus. As such, the findings appear valid and within an acceptable range. Thomas Pogue, Associate Director Center for Business and Policy Research University of the Pacific 18 California High-Speed Rail Authority //

19 Methodology The range of impacts was estimated using multiple industry-standard approaches, including a top-down analysis applying RIMS input-output multipliers to project expenditures to estimate impacts at the state level, and a more in-depth, bottom-up methodology that involved rigorous internal and external research on detailed project expenditures and customized geographic economic impact modeling using IMPLAN software. The analysis did not look at the wider economic benefits that high-speed rail service will bring to the California economy. Methodology Validation To ensure that the methodology and results were in keeping with industry standards, a number of parties reviewed the analysis. Reviewers included members of the High-Speed Rail Peer Review Group (PRG), economists from the California Department of Finance, California Department of Labor and the University of the Pacific. For additional details on methodology and findings of this report, please refer to the Economic Impact Technical Memorandum. Additional Resources The Authority will continue to monitor and report on the impacts detailed in this report, and has already created a number of resources to share the information including: ``Economic Impact Technical Memorandum ``Economic Impact Infographic ``Economic Impact Fact Sheet ``Economic Impact Interactive Map FIGURE 13: ECONOMIC IMPACT INTERACTIVE MAP The economic impact interactive online map allows users to visualize the positive effects that California s high-speed rail investments have had on the state and its regions. The map displays economic information in a user-friendly manner, displaying overviews of the statewide analysis and detailing the Central Valley, Sacramento, Bay Area, and Southern California regions. The display options include a heat map of job-years in California s counties, small business locations and participation and investment in disadvantaged communities along the alignment. The map links to the Technical Memorandum for a better understanding of the methodology and results used in the analysis. Note: In the context of this report, jobs are defined as job-years and represent a combination of total jobs and the length of time of those jobs; e.g. one job supported for five years equals five job-years; five jobs supported for one year also equals five job-years. Labor income refers to all forms of employment income associated with the activity, including employee compensation (wages, benefits, and other income). Economic output represents the value of all sales of goods and services in the production process of direct, indirect, and induced activities. Investing in California's Economy // September

20 Contact California High-Speed Rail Authority 770 L Street, Suite 620 Sacramento, CA (916) info@hsr.ca.gov facebook.com/ youtube.com/