The ECONOMIC PULSE JUNE. 2018 Lyft and Aptiv launch autonomous ride share in Las Vegas This May, a global technology leader in mobility, incentivized by GOED, launched a fleet of 30 autonomous vehicles in Las Vegas on the Lyft network. Aptiv PLC operates the vehicles on its fully-integrated autonomous driving platform, which are made available to the public in partnership with Lyft. On an opt-in basis, passengers have the ability to hail self-driving vehicles equipped with Aptiv technology to and from high-demand locations. With Aptiv s autonomous driving technology deployed throughout Las Vegas and broadly accessible through the Lyft app, a wide range of consumers will be able to share the experience of autonomous vehicles in a complex urban environment, said Kevin Clark, Aptiv president and chief executive officer. More importantly, the resulting knowledge and data will allow us to further refine our autonomous driving capabilities and strengthen our portfolio of industry-leading active safety solutions. Story continued on next page» 1
The combination of Aptiv s autonomous driving technology and Lyft s ride-hailing app is the expansion of a successful partnership that launched in Las Vegas during CES 2018. That initial pilot provided more than 400 self-driving rides to the public and earned an average customer rating of 4.99 out of five stars. Like the CES program, vehicles will be operated by highly-trained safety drivers. In March, the GOED board voted to approve Aptiv s application for tax abatements and two months later the company has already surpassed its projected number of jobs created and currently lists openings in Las Vegas for IT, engineering, and office administration positions. GOED Executive Director Paul Anderson said Aptiv is exactly the sort of operation Nevada hoped to attract when the state legislature passed and Governor Brian Sandoval signed into law some of the most forward-looking autonomous vehicle regulations in the country. The holy grail for economic development is research and development, said Anderson. And because of what it does attract some of the smartest people in the world and bring in talent it becomes a catalyst to entrepreneurial economic development. 2
LifeWorks initiative aims to prepare Nevada students for in-demand jobs Taking an innovative approach to workforce development, state agencies from across Nevada, private industries, and higher education are gathering together to strengthen career pathways for in-demand jobs in the New Nevada. The Nevada Department of Education received the New Skills for Youth Grant funded by JP Morgan Chase in fall of 2017 and since then has aligned workforce development with economic diversification efforts, developed the public-facing brand LifeWorks, created legislative change in the state to support workforce development, and established ongoing systems for communication. LifeWorks six key objectives: Employer engagement Quality and rigor in career pathways Career-focused accountability systems Scaled pathways that culminate in credentials of value Integrated funding streams/joint resource planning Ensuring cross-institutional alignment. To achieve this, partners of LifeWorks, including GOED, Nevada Department of Education, the Governor s Office of Workforce Innovation (OWINN), and others will focus on expanding pathways to lucrative long-term careers for graduating high school students by empowering them with the skills, education and meaningful connections to local business necessary to thrive in Nevada s growing economy. Specific programs include the expansion of Career & Technical Education programs, offering a new Career & College Ready Diploma, adopting the ACT National Career Readiness Certificate, expanding dual credit opportunities with institutions of higher education, strengthening and expanding apprenticeship and preapprenticeship programs, developing new work-based learning programs, and establishing the Learn & Earn Advanced-career Pathways (LEAP) framework. 3
GOED listening tour covers 1,000 miles In April, GOED s Executive Director Paul Anderson, Director of Rural Economic and Community Development Matthew Moore, and Communications Director Brian Baluta undertook a three-day, 1,000-mile listening tour to connect with the Regional Development Authority partners and stakeholders across the vast Silver State. All told, the trip featured stops in Pahrump, Fallon, Carson City, Eureka, Ely, Panaca and Caliente, for sessions with Nye County Regional Economic Development Authority (NCREDA), HWY 95 Rural Development Authority (HWY95), Northern Nevada Development Authority (NNDA), Northeastern Nevada Regional Development Authority (NNRDA), and Lincoln County Regional Development Authority (LCRDA). The tour underscored: 1. Nevada s rural communities share many assets and challenges, including issues with federal land management, affordable housing, workforce development, and infrastructure. 2. There are many engaged and motivated individuals on the ground working diligently to face these challenges and build on opportunities. 3. GOED and the rural RDAs will continue to work closely to help ensure all of Nevada shares in growth and prosperity. 4
Governor Sandoval nominates 61 Opportunity Zones In April, Governor Brian Sandoval nominated 61 opportunity zones, pursuant to the Tax Cuts and Jobs Act of 2017, which established an Opportunity Zone tax incentive, designed to encourage long-term private investment in low-income communities. During my time as Governor, we have invested significant resources in Nevada, Governor Sandoval said. While we have seen substantial returns, there are still parts of our state that need additional assistance. It is my hope that by nominating these 61 low-income opportunity zones, private investors will choose to fund projects in these areas that benefit the Nevadans who need it most. What s more, we believe that communities surrounding the 61 opportunity zones will also benefit from investment in the zones. PolicyMap s Jeremy Nowak praised Nevada s approach to the nominations. The Governor s office did a great job of taking a data driven approach Hats off to Nevada. 61 opportunity zone nominations directly impact more than 230,000 Nevadans in some of Nevada s most disadvantaged communities. Average family income is approximately $37,000 just 60% of median statewide family income of approximately $62,500. Average unemployment rate from 2011-2015 was 16% nearly 2x greater than the national unemployment rate. 5
Nevada is number one again! For the first quarter of 2018, State Policy Reports Index of State Economic Momentum which ranks states based on personal income growth, employment growth, and population growth ranked Nevada No. 1. Between the fourth quarter of 2016 and the same period in 2017, Nevada had the strongest year-over-year growth in personal income, and held the distinction of being the only state to record growth greater than 6%. Federal data released in May showed Nevada s gross domestic product (GDP) grew 3.5% in 2017 after increasing 2.1% in 2016, good for No. 3 in the nation. The Bureau of Economic Analysis data depict expansion across the state s economy, with real GDP increasing for nearly every major industry. Real estate served as the largest contributor to overall GDP, followed by durable goods manufacturing. Nevada s GDP numbers also reflect steady in-migration to the state. According to Census estimates, its population climbed 2 percent last year, the largest national increase behind only Idaho. According to the Nevada Department of Employment, Training & Rehabilitation (DETR) March 2018 economic report, Nevada added 3,500 jobs bringing employment in the state of Nevada to a record high of 1,373,700 jobs. Unemployment in March remained constant at 4.9%. DETR s report also notes that in the fourth quarter of 2017, personal income in Nevada reached $136 billion, up 6.4% from a year ago. This increase has been ongoing in 30 of the past 31 quarters. Additionally, Nevada s average personal income growth has exceeded that of the U.S. 14 of the past 16 quarters, with income gains in the state averaging 5.1%, compared to 3.5% in the U.S. 6
Although we are seeing some slight changes in employment and unemployment measures in March, state employment remains strong, said David Schmidt, Chief Economist for DETR. Estimates show Nevada s labor force has averaged 1.49 million in the first quarter of 2018, up from 1.45 million during the same period in 2017. This translates into an increase of 40,160 more Nevadans in the labor force, either working or actively seeking employment. No. 1 in economic momentum, Q1 2018. No.1 in personal income growth, 2017. No.3 in GDP growth, 2017. No.2 in population growth, 2017. Record high 1,373,700 Nevadans employed, March 2018. 7
News Clark County expects the new NFL stadium will be a notable new draw for consumers and visitors, Moody s Patrick Liberatore wrote, adding that the stadium and upcoming expansion of the Las Vegas Convention Center should allow the city to host larger events and diversify visitor draws. Read more: https://www.reviewjournal.com/business/stadium/las-vegas-stadium-to-boost-nevadas-economy-says-moodys/ Upcoming Events 2018 GOED BOARD MEETINGS July 11 September 20 November 15 TIME 1pm NORTHERN LOCATION The Legislative Building Legislative Counsel Bureau Room 3137 SOUTHERN LOCATION Grant Sawyer Building Legislative Counsel Bureau Room 4412 Board Members Governor Brian Sandoval, Chairman Lieutenant Governor Mark Hutchison Secretary of State Barbara Cegavske Mr. James Barrett, President, the JABarrett Company Dr. Dana Bennett, President, Nevada Mining Association Mr. Dan Klaich, Voting member at-large Mr. Adam Kramer, Executive Vice President of Strategy, 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 Mr. Raymond Specht, Founder & CEO, Specht Leadership Consulting 1.800.336.1600 808 West Nye Lane, Carson City, NV 89703 555 E. Washington Avenue, Suite 5400, Las Vegas, NV 89101 www.diversifynevada.com 702.486.2700 8