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  • [ INAUDIBLE DISCUSSIONS ]

  • >> THE MOST PLEASANT OF MY ALTERNATIVE ACTIVITIES

  • FOR TODAY IS TO INTRODUCE OUR PRESIDENT.

  • PRESIDENT PARA HAS HAD A LONG AND DEDICATED CAREER

  • AT CSULB FOR 12 YEARS.

  • HE WAS CHAIR OF THE DEPARTMENT OF MUSIC.

  • HE'S BEEN BOTH AN ASSOCIATE DEAN AND THE DEAN

  • OF THE COLLEGE OF THE ARTS.

  • HE SERVED AS BOTH INTERIM PROVOST AND PROVOST AND NOW,

  • HE IS OUR INTERIM PRESIDENT.

  • WE'VE BEEN VERY FORTUNATE TO HAVE DR. PARA

  • AS OUR PRESIDENT THIS YEAR AND MY SADDEST

  • OF MY ALTERNATIVE DUTIES TODAY IS TO KNOW

  • THAT THIS IS LIKELY THE LAST ECONOMIC FORUM

  • THAT HE WILL JOIN US FOR AS HE IS STARTING A MUCH DESERVED

  • RETIREMENT THIS SUMMER.

  • IF I TOOK TIME TO REVIEW EVEN JUST THE HIGHLIGHTS OF ALL

  • OF DON PARA'S CONTRIBUTIONS TO CSULB OVER THE YEARS,

  • WE WOULD BE HERE FOR SOME TIME.

  • SO, LET ME JUST SAY THAT FOR TWO DECADES,

  • WHEN THIS UNIVERSITY ASK DON PARA TO TAKE UP A NEW CHALLENGE

  • TO WAIT INTO A COMPLEX PROBLEM AND MOST RECENTLY

  • TO CSU SOME VERY DIFFICULT ECONOMIC TIMES,

  • HE NOT ONLY ACCEPTED THOSE CALLS BUT HE DID

  • SO WITH DEDICATION AND INSIGHT.

  • IT'S MY GREAT PLEASURE TODAY TO INTRODUCE THE PRESIDENT

  • OF CAL STATE LONG BEACH, DR. DONALD J. PARA.

  • [ APPLAUSE ]

  • >> THANK YOU FOR THAT VERY KIND INTRODUCTION, DAVID.

  • NOBODY DOES ANYTHING ALONE.

  • THERE HAS BEEN A GREAT TEAM OF PEOPLE WORKING

  • AT CAL STATE LONG BEACH FOR A LONG TIME.

  • AND ONE OF THE REASONS THAT IT WORKS IS

  • THAT WE HAVE A VERY SIMPLE REDIRECT MISSION AND THAT'S

  • ABOUT STUDENTS AND STUDENT SUCCESS, GRADUATING STUDENTS,

  • GETTING THEM UNDER THEIR LIFE, GETTING THEM INTO THE CAREER,

  • GETTING THEM TO GRAD SCHOOL, WHEREVER THEY'RE GOING TO GO.

  • THAT'S BEEN OUR FOCUS.

  • THAT'S BEEN OUR MISSION FOR A LONG TIME

  • AND I THINK THAT'S WHY WE SUCCEED AND I KNOW THAT'S WHY

  • THAT CAL STATE LONG BEACH IS A VERY SPECIAL PLACE

  • AND I HAVE BEEN HONORED TO BE THERE FOR 26 YEARS.

  • AND JUST BECAUSE I'M RETIRING DOESN'T MEAN I WON'T BE COMING

  • BACK TO THE ECONOMIC FORUM.

  • THANK YOU FOR BEING HERE IN THIS SECOND DAY OF SPRING.

  • I HAVE A DAUGHTER WHO LIVES IN CHICAGO.

  • IT'S THE SECOND DAY OF SPRING THERE BUT THEY DON'T KNOW IT

  • YET BECAUSE IT'S BEEN-- IT WAS BEEN A VERY TOUGH WINTER.

  • I'VE BEEN ATTENDING THESE FORUMS FOR MANY YEARS

  • AND ALWAYS LOOK FORWARD TO WHAT I LEARN ABOUT OUR LOCAL ECONOMY

  • AND THEN THE LARGER ECONOMY AND THE IMPACT THAT'S GOING TO HAVE

  • AND THE DECISIONS THAT WE ALL MAKE FOR THE FUTURE.

  • A GREAT CITY NEEDS A GREAT UNIVERSITY

  • AND A GREAT UNIVERSITY NEEDS A GREAT CITY.

  • WE HAVE THAT KIND OF REALITY IN LONG BEACH.

  • PART OF THIS PACKAGE, PART OF THIS PACKAGE WITH THE CITY

  • AND THE EDUCATION WHAT THIS IS,

  • THE LONG BEACH UNIFIED SCHOOL DISTRICT,

  • AN OUTSTANDING SCHOOL DISTRICT.

  • LONG BEACH CITY COLLEGE,

  • AN OUTSTANDING COMMUNITY COLLEGE AND THE UNIVERSITY.

  • WE'RE ALL FORTUNATE TO BE PART OF THIS COMMUNITY

  • THAT HAS THIS KIND OF COHESIVENESS AND THIS KIND

  • OF DIRECTION THAT WE ALL WORK TOGETHER

  • FOR THE BETTERMENT OF THE COMMUNITY.

  • THE RELATIONSHIP BETWEEN THE CITY OF LONG BEACH

  • AND THE EDUCATIONAL ENTITIES ALSO INCLUDES ONGOING

  • INTERACTION AND DIALOGUE.

  • A PART OF OUR PARTNERSHIP AND THIS IS GRADUATING STUDENTS

  • AND THROUGH OTHER EFFORTS THAT WE CREATE

  • TO SUPPORT THE LONG-TERM VIABILITY

  • AND VITALITY OF THIS COMMUNITY.

  • TWO NIGHTS AGO FOR EXAMPLE,

  • WE HAD A MAYORAL DEBATE ON OUR CAMPUS.

  • WE WERE VERY HONORED TO HAVE IT ON OUR CAMPUS.

  • SEVERAL OF THE CANDIDATES ARE HERE TODAY.

  • DOUG OTTO IS HERE.

  • BONNIE LOWENTHAL IS HERE.

  • [ APPLAUSE ]

  • AND IT WAS A VIGOROUS DEBATE.

  • IT WAS AN INFORMATIVE DEBATE AND IT--

  • LET'S JUST ALL KNOW HOW FORTUNATE WE ARE TO HAVE LEADERS

  • LIKE THOSE PEOPLE AND THE OTHER THREE WHO ARE

  • AT THE DEBATE IN OUR CITY.

  • WE WILL BE IN GOOD HANDS.

  • ALSO, THANKS TO THE LOS ANGELES NEWS GROUP AND THE PT,

  • OUR ASSOCIATED STUDENTS AND THE DEPARTMENT OF JOURNALISM

  • AND MASS COMMUNICATION FOR BEING THE ONES TO LEAD THAT EFFORT.

  • EFFORTS SUCH AS THE REGIONAL ECONOMIC FORUM HELP US

  • TO ANSWER QUESTIONS THAT ARE VITALLY IMPORTANT TO ALL OF US.

  • THESE QUESTIONS INCLUDE,

  • HOW DO WE ENCOURAGE MORE CSULB GRADUATES TO STAY

  • AND WORK IN LONG BEACH?

  • HOW CAN ENTITIES LIKE THE OFFICE

  • OF ECONOMIC RESEARCH PROVIDE EXPERTISE TO THE COMMUNITY WHILE

  • AT THE SAME TIME PROVIDING LEARNING OPPORTUNITIES

  • FOR OUR STUDENTS?

  • HOW DO WE, THE UNIVERSITY

  • AND THE COMMUNITY TOGETHER CREATE THE FOUNDATIONS

  • FOR A SUSTAINABLE GROWTH AND PROSPERITY FOR OUR AREA?

  • AMONG THE PEOPLE WHO PLAY KEY ROLES AND THE PARTNERSHIP

  • BETWEEN THE CITY AND UNIVERSITY

  • AND IN DRIVING UNIVERSITY FORWARD AND WORKING

  • WITH THE COMMUNITY IS DR. HEATHER STEPHENS

  • WHO YOU WILL HEAR FROM TODAY.

  • DR. STEVENS IS AN EXCELLENT EXAMPLE

  • OF A HIGHLY EFFECTIVE EDUCATOR

  • WHO IS ALSO A VERY VALUABLE RESOURCE FOR OUR COMMUNITY.

  • DR. STEVENS WILL LEAD OFF THE FORUM

  • WITH A REGIONAL ECONOMIC OVERVIEW PRESENTATION.

  • FOLLOWING THAT, WE ARE PLEASED

  • TO WELCOME THREE INDUSTRY EXPERTS

  • WHO WILL SHARE THEIR INSIGHTS INTO THE CURRENT ISSUES

  • IN THEIR INDUSTRIES AND THE IMPACT THEY WILL HAVE

  • ON OUR AREA.

  • THANK YOU TO NOELLE HACEGABA, DIANA HENDEL,

  • AND MARIO RODRIGUEZ FOR JOINING US TODAY.

  • [ APPLAUSE ]

  • DISCUSSION AND QUESTIONS FROM THE AUDIENCE WILL FOLLOW

  • AND THEN THERE WILL BE TIME

  • FOR INFORMAL DISCUSSIONS AND DIALOGUES.

  • WE VERY MUCH APPRECIATE YOUR CONTINUED SUPPORT OF THE FORUM

  • AND OF CAL STATE LONG BEACH,

  • A SPECIAL THANK YOU TO OUR SPONSORS.

  • WE HOPE YOU ENJOY THE PRESENTATIONS AND AGAIN,

  • THANK YOU FOR BEING HERE TODAY.

  • [ APPLAUSE ]

  • [ PAUSE ]

  • >> THE LAST OF MY ALTERNATIVE ASSIGNMENTS FOR TODAY IS

  • TO INTRODUCE DR. HEATHER STEPHENS

  • OF THE DEPARTMENT OF ECONOMICS.

  • DR. STEPHENS HAS HAD THE UNENVIABLE TASK OF FOLLOWING

  • IN THE FOOTSTEPS OF THE AMENABLE JOE MAGADDINO

  • WHO PRESENTED THE ECONOMIC FORECAST FOR YEARS

  • WITH THE KINDS OF ACUMEN AND THE PLUM

  • THAT REALLY CAN'T BE DUPLICATED.

  • AND HEATHER HAS WISELY DECIDED NOT TO DO THAT.

  • ALTHOUGH, AS-- IF YOU WERE HERE LAST YEAR,

  • YOU SEE THAT THE APPROACH SHE HAS TAKEN AND THE ANALYSIS

  • THAT SHE BRINGS-- THAT SHE'S REALLY MORE THAN CAPABLE

  • OF FILLING THOSE RATHER LARGE SHOES.

  • I'VE BEEN DELIGHTED WITH THE WAY THAT DR. STEPHENS HAS WORKED

  • TO ENSURE THAT THIS EVENT AND THE ANALYSIS

  • THAT INFORMANT RESPOND TO THE PARTICULAR COMMUNITY

  • AND BUSINESS CONCERNS THAT THIS ASSEMBLED GROUP REPRESENTS.

  • UNFORTUNATELY, I HAVE TO BID YOU FAREWELL AT THIS POINT

  • TO GET BACK TO THE UNIVERSITY ABOUT 100

  • OF MY FACULTY I'M MEETING RIGHT NOW AND THOSE OF YOU

  • WHO RUN BIG GROUPS, NO, YOU DON'T LEAVE A GROUP

  • LIKE THAT ALONE FOR VERY LONG.

  • [ LAUGHTER ]

  • HOWEVER, I'M VERY HAPPY TO LEAVE YOU IN THE VERY CAPABLE HANDS

  • OF DR. HEATHER STEPHENS.

  • THANK YOU.

  • [ APPLAUSE ]

  • [ PAUSE ]

  • >> ALTHOUGH, OF COURSE, PEOPLE FROM THE DEPARTMENT

  • OF ECONOMICS WILL NOT BE AT THAT MEETING, DAVID [LAUGHS].

  • SO, THANK YOU, DEAN WALLACE AND THANK YOU, PRESIDENT PARA.

  • I REALLY APPRECIATE YOUR SUPPORT AND THE SUPPORT OF OTHER PEOPLE

  • FROM THE UNIVERSITY FOR THIS EVENT.

  • WELCOME TO THE 2014 CSULB REGIONAL ECONOMIC FORUM.

  • TODAY, WE'RE GOING TO TALK ABOUT WHAT IS HAPPENING

  • WITH THE GREATER LONG BEACH ECONOMY AND WE'RE GOING TO HEAR

  • FROM THE PANEL A DISTINGUISHED LOCAL INDUSTRY EXPERTS

  • THAT DR. PARA MENTIONED TO YOU.

  • BUT BEFORE I BEGIN, I THINK I WANT TO START

  • BY THANKING THE MANY PEOPLE WHO CONTRIBUTED

  • TO MAKE TODAY'S EVENT A SUCCESS.

  • FIRST, I WANT TO START

  • BY THANKING THE ADMINISTRATIVE STAFF

  • IN THE DEPARTMENT OF ECONOMICS.

  • I DON'T KNOW IF DIANE WHO IS AT THE BACK CAN HERE ME

  • BUT DIANE GOT HERE EVEN BEFORE I DID THIS MORNING AND BETWEEN HER

  • AND CERISE [ASSUMED SPELLING] SIMPLY COULD NOT HAVE PULLED OFF

  • THE LOGISTICS OF TODAY'S EVENT.

  • I ALSO WANT TO GIVE A STRONG THANKS AND ACKNOWLEDGEMENT

  • TO THE SUPPORT AND HELP FROM SMG AND THE LONG BEACH CONVENTION

  • AND ENTERTAINMENT CENTER ESPECIALLY

  • AND INCLUDING SAVOR AND THE PROJECTIONS.

  • THEY TOO ARE THE ONES MAKING THIS EVENT FLOW SMOOTHLY.

  • I ALSO WANT TO ACKNOWLEDGE THE CONTRIBUTIONS

  • OF BEACON ECONOMICS WHO CONTRIBUTED THE ANALYSIS

  • THAT YOU CAN SEE IN YOUR FOLDERS ABOUT COMMUTING PATTERNS

  • AND ALSO THAT I WILL TALK ABOUT IN TODAY'S PRESENTATION.

  • I WANT TO THANK DEAN WALLACE AND THE COLLEGE

  • OF LIBERAL ARTS EVEN THOUGH HE HAS LEFT.

  • MY DEPARTMENT OF ECONOMICS COLLEAGUES,

  • SEVERAL OF WHOM ARE HERE SITTING IN THE AUDIENCE WITH YOU.

  • ANNETTE KONIECZKA [ASSUMED SPELLING],

  • A SENIOR ECONOMICS MAJOR WHO HELPED ME WITH MUCH

  • OF THE ANALYSIS THAT I WILL PRESENT TO YOU

  • AND SIMPLY I COULD NOT HAVE GOTTEN ALL TOGETHER

  • IN TIME WITHOUT HER HELP.

  • I ALSO WANT TO THANK ALL OF THE OTHER STUDENT VOLUNTEERS

  • WHO WERE HERE GREETING YOU, CHECKING YOU IN

  • AND WHO ARE NOW SITTING AMONG YOU TODAY,

  • ALSO HOPEFULLY INTERESTED IN SEEING WHAT I'M GOING TO SAY.

  • BEFORE I START THOUGH, I ALSO NEED TO TALK ABOUT THE SPONSORS.

  • ALL OF YOU WHO CAME TODAY, WE COULD NOT DO THIS EVENT

  • WITHOUT YOUR FINANCIAL SUPPORT.

  • SPECIAL THANK YOU TO OUR PLATINUM AND GOLD SPONSORS,

  • THE PORT OF LONG BEACH, BEACON ECONOMICS, LONG BEACH CONVENTION

  • AND VISITORS BUREAU, THE DOWNTOWN LONG BEACH ASSOCIATES,

  • LA COUNTY SUPERVISOR DON KNABE AND MOLINA HEALTHCARE.

  • THANK YOU TO ALL OF YOU.

  • [ APPLAUSE ]

  • AND THEN THE MANY PEOPLE WHO SPONSORED AT THE SILVER LEVEL

  • BUT I WOULD BE HERE FOR A WHILE LISTING ALL OF THEIR NAMES.

  • LAST YEAR AT MY FIRST REGIONAL ECONOMIC FORUM,

  • I HONORED THE TRADITION OF JOE MAGADDINO BY PICKING A MOVING

  • TO KICK OFF MY PRESENTATION.

  • FOR THOSE OF YOU WHO HAD BEEN TO HIS PREVIOUS FORUMS,

  • HE HAD A WHOLE SLIDESHOW OF CURRENT MOVIES

  • AND LINKED THEM TO CURRENT EVENTS.

  • WELL, I DECIDED THAT REALLY WASN'T GOING TO BE MY APPROACH.

  • BUT LAST YEAR, I DECIDED TO DO A MOVIE AND SO THIS YEAR,

  • I'M GOING TO DO ONE AGAIN.

  • WHEN I WAS PREPARING MY PRESENTATION,

  • I NOTICED THAT THERE WAS A MOVIE COMING OUT,

  • THE "NEED FOR SPEED."

  • AND IT'S OUT AND I LIKED AARON PAUL IN BREAKING BAD

  • BUT I'M NOT GOING TO SEE THIS MOVIE.

  • IT LOOKS REALLY STUPID TO ME.

  • [ LAUGHTER ]

  • WHEN I THOUGHT THE TILE AND THE TOPIC

  • OF THE MOVIE WAS REALLY RELEVANT FOR TODAY.

  • FIRST, WE HAVE THE UPCOMING GRAN PRIX.

  • AND AS MANY OF YOU SAW WHEN YOU CAME IN,

  • THE BARRICADES ARE ALREADY UP AND WE ACTUALLY--

  • THAT'S WHY WE HAD TO SEND YOU THAT SORT OF CIRCUITOUS ROUTE

  • TO GET TO THE BALLROOM TODAY.

  • OBVIOUSLY, THERE'S A LOT OF EXCITEMENT ABOUT THAT STARTING

  • AND I UNDERSTAND THE AIRPORT GOT ITS CAR THIS WEEK AS WELL

  • AND IT'S NOW SITTING INSIDE THE AIRPORTS.

  • THE NEXT YOU FLY OUT, YOU MIGHT SEE IT THERE.

  • AND OBVIOUSLY, THERE'S THE DEBATE

  • ON WHETHER THE FORMAT AND--

  • IS GOING TO CHANGE AND THERE'S BEEN SOME DELAY ON THAT

  • BUT GRAN PRIX IS ON PEOPLE'S MINDS IN LONG BEACH.

  • AND SECOND OF ALL BECAUSE THE NEED--

  • BECAUSE THAT'S WHAT THE ECONOMY NEEDS.

  • IT NEEDS A LITTLE BIT MORE SPEED

  • BECAUSE WELL, WE'RE DOING BETTER.

  • RECOVERY IS STILL A LITTLE BIT SLOW.

  • SO, HOPEFULLY, OUR DISCUSSION TODAY WILL CONTRIBUTE

  • TO A GREATER DISCUSSION ABOUT THE GREATER LONG BEACH ECONOMY

  • AND HOW WE CAN COME TOGETHER AND CAPITALIZE ON AREA--

  • ON WAYS TO MAKE THINGS GROW FASTER WHILE MINIMIZING

  • ROADBLOCKS THAT WILL MAKE IT HARD FOR US

  • TO ACHIEVE THAT SPEED.

  • SO, LET'S GET STARTED.

  • BEFORE WE CAN TALK ABOUT LONG BEACH, WE HAVE TO TALK

  • ABOUT THE SETTING THAT WE ARE OPERATING IN.

  • CLEARLY, WE ARE OPERATING IN A TIME OF GLOBAL TENSION.

  • THE ANNEXATION OF CRIMEA BY RUSSIA THIS WEEK CREATES LOTS

  • OF POSSIBILITIES FOR ECONOMIC SANCTIONS

  • AND THEY'RE ALREADY BEING IMPLEMENTED AS WE SPEAK.

  • THIS CONTRIBUTES TO THE OTHER MAJOR,

  • GLOBAL INSTABILITIES WE'RE ALREADY ALL AWARE OFF, SYRIA,

  • AFGHANISTAN, IRAN, I COULD GO ON FOR A LONG TIME.

  • WHAT ABOUT THE GLOBAL ECONOMY?

  • WELL, THE 2014 GLOBAL FORECAST IS ABOUT 3 TO 3

  • AND A HALF PERCENT GROWTH

  • AND THAT IS AN INCREASE OVER LAST YEAR.

  • BUT ONE OF MY CONCERNS IS THAT THOSE FORECASTS ASSUME

  • THAT EUROPE IS GOING TO BE RECOVERING MORE THIS YEAR

  • AND CLEARLY WITH THE NEW STANDOFF OVER CRIMEA

  • AND THE POTENTIAL THAT THAT COULD HAVE

  • TO DISRUPT THE EUROPEAN ECONOMIES,

  • WE DO HAVE TO BE A LITTLE BIT CONCERNED

  • THAT THOSE GROWTH RATES MAY NOT BE REALIZED.

  • THERE'S ALSO SOME TALK THAT CHINA, MAYBE IT WON'T SLOW

  • DOWN THIS YEAR BUT DEFINITELY BY 2015,

  • AND THAT'S SOMETHING WE REALLY NEED TO BE AWARE

  • OF AS YOU'LL SEE WHEN I TALK ABOUT TRADE THAT GOES

  • THROUGH THE LOCAL PORTS.

  • US GDP, WELL, IT'S BEEN GROWING A LITTLE BIT STRONGER

  • THAN IT HAD BEFORE AND EVEN THOUGH 2013 ONLY SAW

  • ABOUT 1.9 PERCENT GROWTH.

  • THE SECOND HALF WAS THE STRONGER PART OF THAT HALF.

  • AND PROJECTED GROWTH THIS YEAR, ABOUT 2 AND A HALF TO 3 PERCENT

  • BUT WE NEED TO GET UP TO 3 PERCENT TO BE CLOSE

  • TO WHERE WE WERE IN THE '70S AND '80S ON AVERAGE.

  • SO, WE'RE STILL LAGGING A LITTLE BIT BEHIND.

  • THE BOTTOM LINE WITH THE US ECONOMY IS

  • THAT EVEN THOUGH WE SEEM TO BE RECOVERING ON THE GDP LEVEL,

  • THE PROSPECTS FOR JOB GROWTH ARE PRETTY WEEK.

  • IN A RECENT SURVEY OF THE TOP CEOS BY THE BUSINESS ROUNDTABLE,

  • THEY FOUND THAT ONLY 37 PERCENT EXPECT

  • TO INCREASE THEIR EMPLOYMENT IN THE US THIS YEAR,

  • EVEN AS THEY FACE 72 PERCENT INCREASE IN SALES

  • AND A 50 PERCENT INCREASE IN CAPITAL SPENDING.

  • SO, THEY'RE NOT REALLY EXPECTING TO TRANSLATE THAT INTO NEW JOBS.

  • AND CONSUMERS ARE ALSO CONCERNED

  • THAT THE JOBS ARE JUST NOT GOING TO BE THERE.

  • ONLY 13 PERCENT IN A FEBRUARY POLL BELIEVE

  • THAT THERE ARE GOING TO BE--

  • IT'S GOING TO BE JOB GROWTH THIS YEAR.

  • WE CAN'T TALK ABOUT THE FEDERAL ECONOMY OR THE US ECONOMY

  • WITHOUT TALKING ABOUT THE FEDERAL RESERVE.

  • WE'VE KNOWN FOR A WHILE NOW THAT THE FED IS STARTING

  • TO TAPER BACK ITS BOND-BUYING PROGRAM

  • AND THAT TAPERING WAS INITIALLY ASSIGNED

  • AT THE FED SAW THINGS MOVING IN THE RIGHT DIRECTION.

  • BUT THE GUIDANCE THIS WEEK TO TAKE OFF THE CAP

  • OR THE TARGET RATE

  • OF 6.5 PERCENT UNEMPLOYMENT SUGGEST THE FEDS STILL BELIEVES

  • THAT THERE IS SOME ONGOING UNCERTAINTY WITH OUR FUTURE.

  • NEVERTHELESS, THEY'VE ANNOUNCED THAT THEY EXPECT

  • TO START INCREASING INTEREST RATES AS SOON AS 2015

  • AND THAT CLEARLY IS PUTTING SOME FEAR INTO THE STOCK MARKET

  • WHICH WAS ALREADY STARTING TO KIND OF REAL

  • AFTER ITS NICE RETURNS FROM 2013.

  • THEN THERE'S THE FEDERAL BUDGET.

  • WE CANNOT GET SORT OF COMPLACENT INTO THINKING THAT JUST

  • BECAUSE THERE IS A DEAL THAT FUNDS US FOR THE REST

  • OF THE YEAR, THE THINGS ARE GREAT

  • WHEN IT COMES TO FEDERAL BUDGET.

  • WE HAVE RECORD DEBT AND THE CURRENT AGREEMENT

  • IN CONGRESS ONLY FUNDS US UNTIL REALLY SEPTEMBER 30TH.

  • AND THE WHITE HOUSE, THE CONGRESSIONAL BUDGE OFFICE

  • AND OTHERS HAVE ALREADY SAID THAT UNLESS MORE CUTS ARE MADE,

  • WE'RE GOING TO SEE THOSE ACROSS THE BOARD SEQUESTER CUTS AGAIN

  • IN 2014 STARTING OCTOBER 2014.

  • THEN, THERE'S THIS NEW SORT OF UNCERTAINTY COST BY THE END

  • OF THE FEDERAL UNEMPLOYMENT INSURANCE EXTENSION PROGRAM.

  • THIS DESCENDED IN DECEMBER NATIONWIDE

  • AND IT CUT UNEMPLOYMENT INSURANCE BENEFITS FROM UP

  • TO 63 WEEKS IN CALIFORNIA DOWN TO A MAXIMUM OF 26 WEEKS.

  • SO, IF YOU'D BEEN UNEMPLOYED FOR 37 WEEKS

  • AND YOU WERE STILL GETTING UNEMPLOYMENT INSURANCE,

  • YOU IMMEDIATELY LOST YOUR BENEFITS.

  • IN NORTH CAROLINA WHERE THEY ENDED THE BENEFITS' EXTENSION

  • SIX MONTHS EARLIER, THEY SAW A BIG DROP OFF

  • IN LABOR FORCE PARTICIPATION THIS, YOU KNOW,

  • THE UNEMPLOYMENT RATE GO DOWN TOO BUT THERE'S, YOU KNOW,

  • THESE PEOPLE THAT ARE LONG-TERM UNEMPLOYED MIGHT JUST DECIDE

  • TO DROP OUT OF THE MARKET.

  • AND OBVIOUSLY, YOU CAN'T OPEN A NEWSPAPER WITHOUT HEARING

  • ABOUT THE AFFORDABLE CARE ACT AND ITS IMPLEMENTATION.

  • ONE OF THE MOST PROMISING PARTS OF IT IS

  • THAT IT ELIMINATES THE ABILITY FOR YOU TO BE DENIED COVER

  • TO BASE ON PREEXISTING CONDITIONS.

  • AND THERE HAVE BEEN ABOUT A MILLION PEOPLE WHO HAVE SIGNED

  • UP UNDER COVERED CALIFORNIA

  • AND ABOUT FIVE MILLION PEOPLE NATIONWIDE.

  • BUT WE'RE STILL WAITING TO SEE THE FULL IMPACTS OF THIS.

  • SO, SOME OF THE POSITIVES IN MY VIEW IS

  • THAT YOU'VE SEEN PEOPLE LEAVE JOBS BECAUSE THEY DON'T HAVE

  • TO BE TIED TO THEM ANYMORE.

  • SO, YOU HEAR ABOUT PEOPLE RETIRING

  • WHO ARE STILL WORKING JUST

  • BECAUSE THEY NEEDED HEALTH INSURANCE.

  • YOU HEAR ABOUT PEOPLE, THEY WERE THINKING

  • ABOUT STARTING THEIR OWN BUSINESS.

  • I ACTUALLY HAVE SOME FRIENDS THAT ARE DOING THIS.

  • BUT A BIG UNDERLYING QUESTION THAT STILL THERE'S NO GOOD DATA

  • ON IS HOW MANY OF THESE NEW PEOPLE OR HOW MANY

  • OF THESE FIVE MILLION PEOPLE, THIS ONE MILLION

  • IN CALIFORNIA DIDN'T HAVE HEALTH CARE BEFORE?

  • ARE WE ACTUALLY ENROLLING NEW PEOPLE OR NOT?

  • AND ALL THE FEARS OF THE HEALTH CARE MANDATE ON BUSINESSES

  • BECAUSE OF THE DELAY AND ITS IMPLEMENTATION, WE'LL JUST HAVE

  • TO WAIT A LITTLE WHILE TO HEAR ABOUT THAT ONE.

  • THEN, THERE'S THE 2014 ELECTIONS.

  • IT COULD ALTER THE MAKEUP OF CONGRESS AND MORE LOCALLY,

  • WE HAVE A LOT OF IMPORTANT LOCAL RACES

  • LIKE THE LONG BEACH MAYORAL RACE

  • WHICH WILL DETERMINE THE ECONOMIC FUTURE OF OUT REGION.

  • GET OUT AND VOTE.

  • OK.

  • [ APPLAUSE ]

  • THEN THERE'S WATER.

  • YOU KNOW, WHEN I READ ABOUT THE ECONOMIC FUTURE, EVERYONE TALKS

  • ABOUT DROUGHT BUT THEY FAIL TO THINK ABOUT THE FACT

  • THAT WE CAN'T IGNORE THE WATER ISSUES IF WE'RE GOING TO--

  • IF WE'RE IN CALIFORNIA ESPECIALLY AND WE WANT TO TAKE--

  • WE WANT TO TALK ABOUT OUR REGIONAL GROWTH.

  • IN THE SHORT RUN, WE ARE GOING TO FACE HIGHER FOOD PRICES.

  • IN THE LONG RUN, THESE RISING WATER COSTS

  • AND SHORTAGES WILL DEFINITELY HURT THOSE WHO LIVE

  • AT THE ECONOMIC MARGIN BUT ALSO LEAD TO JOB LOSSES

  • AND OTHER MUCH MORE MAJOR ECONOMIC IMPLICATIONS.

  • EVEN JUST THE RISING FOOD PRICES COULD BE A CONCERN

  • IF YOU ARE LIVING AT THE ECONOMIC MARGIN ALREADY.

  • SO, HERE'S THE JANUARY DATA AT THE LOCAL LEVEL IN TERMS

  • OF UNEMPLOYMENT AND EVEN THOUGH UNEMPLOYMENT IS DOWN,

  • LA COUNTIES IS STILL ABOUT 1.3 TIMES THE NATIONAL LEVEL.

  • AND IN 2013, LONG BEACH'S UNEMPLOYMENT RATE WAS

  • ABOUT A PERCENTAGE HIGHER THAN LA COUNTY OVERALL.

  • SO, IT IS SOMETHING THAT WE HAVE TO TAKE SERIOUSLY EVEN

  • WHEN YOU READ THE NEWSPAPER THAT, YOU KNOW,

  • NATIONAL UNEMPLOYMENT IS ALMOST AT 6.5 PERCENT.

  • IT'S A LITTLE BIT HIGHER IN THIS REGION.

  • NATIONALLY, ABOUT 175,000 NEW JOBS WERE CREATED LAST MONTH

  • BUT THE NUMBER OF LONG-TERM UNEMPLOYED ALSO ROSE.

  • DROPS IN UNEMPLOYMENT CAN BE DUE TO A COUPLE OF THINGS EVEN

  • IF NO NEW JOBS ARE BEING CREATED.

  • IT COULD BE PEOPLE DROPPING OUT OF THE WORKFORCE

  • OR WORKING PART-TIME, WHICH MEAN THEY'RE NOT ACTUALLY ABLE

  • TO MAKE ENDS MEET.

  • ONE THING THAT CONCERNS ME IS

  • THAT LABOR FORCE PARTICIPATION HAS REACH LEVEL IS NOT SEEN

  • SINCE APRIL 1978.

  • AND THAT COULD BE ESPECIALLY WORRISOME

  • IF IT'S YOUNGER WORKERS DROPPING OUT

  • AND WE'RE ONLY JUST NOW STARTING TO SEE THE IMPLICATION

  • OF THE END OF THOSE EXTENDED UNEMPLOYMENT BENEFITS.

  • SO, YOU CAN SEE IN THIS CHART

  • THAT LABOR FORCE PARTICIPATION IS GOING

  • DOWN AMONG ALL AGE COHORTS.

  • SO, ONE THING I THOUGHT WAS KIND OF FUN.

  • I SAW A CHART, SOMETHING LIKE THIS IN THE PAPER, I DON'T KNOW,

  • SIX MONTHS AGO THAT WAS TALKING

  • ABOUT COMPARING THE ECONOMY OF 1978 TO 2014.

  • SO, IN APRIL 1978, WE HAD LABOR FORCE PARTICIPATION

  • OF 63 PERCENT JUST LIKE WE DO NOW.

  • AND YET IN APRIL 1978, ONLY 42 PERCENT

  • OF WOMEN WERE PARTICIPATING.

  • AND NOW, WE'RE UP TO 47.

  • SO, THAT'S REALLY CONCERNING TO ME

  • BECAUSE WOMEN ARE PARTICIPATING AT A HIGHER RATE AND

  • YET WE STILL HAVE THE SAME LABOR FORCE PARTICIPATION RATE

  • AS 1978.

  • SO, THAT MEANS THERE'S A LOT OF PEOPLE OUT THERE

  • WHO PROBABLY WANT TO HAVE A JOB WHO'VE JUST DECIDED TO DROP OUT.

  • SINCE THE NCAA STARTED THIS WEEK,

  • I ALSO THOUGHT I'D TELL YOU WHO THE FINAL FOUR THAT YEAR WAS.

  • IT WAS ARKANSAS, DUKE, KENTUCKY, AND NOTRE DAME.

  • AND KENTUCKY UNFORTUNATELY BEAT DUKE

  • IN THE FINAL SINCE I'M A DUKE FAN.

  • SO, YOU MIGHT BE NOTICING ME TRY TO LIKE CHECK MY PHONE AS SOON

  • AS THIS PRESENTATION IS

  • OVER SINCE THEY MADE THE UNFORTUNATELY MISTAKE

  • OF SCHEDULING THE DUKE GAME AT 9 AM THIS MORNING.

  • OK. SO, PER CAPITA INCOME IN THE REGION,

  • WE'VE SEEN IT REBOUNDED A LITTLE BIT

  • FROM HAVING DROPPED DURING THE RECESSION BUT YOU CAN SEE

  • THAT LA COUNTY IS CLOSE TO THE US AVERAGE BUT BELOW CALIFORNIA

  • AND BELOW ORANGE COUNTY, OK?

  • SO, THAT'S WHERE WE ARE WITH PER CAPITA INCOME.

  • AND DESPITE THE INCREASE, YOU KNOW,

  • LONG BEACH HAS A RELATIVELY LOW PER CAPITA INCOME

  • THAN IT DID-- COMPARED TO 2008.

  • SO, WE'VE HAD A BIG DROP HERE IN OUR AVERAGE INCOME.

  • AND OBVIOUSLY WHEN AVERAGE INCOMES GO DOWN,

  • THAT'S USUALLY ACCOMPANIED BY RISING OR STABLE POVERTY RATES

  • IN THE REGION, WHICH IS SOMETHING WE REALLY JUST

  • CANNOT IGNORE.

  • SO, SOME COLLEAGUES OF MINE AT THE UNIVERSITY

  • OF ILLINOIS HAVE DONE SOME WORK AND THEY'VE PROJECTED SORT

  • OF WHERE THEY-- THE COUNTRY IS GOING

  • AND THEN THEY'VE ALSO LOOKED

  • AT WHAT DIFFERENT METRO AREAS ARE GOING.

  • AND THIS IS THE PROBABILITY OF EXPANSION IN THE NEXT YEAR.

  • AND AS YOU CAN SEE, THE PROBABLY OF THE US ECONOMY IS GOING

  • TO EXPAND IS ALMOST 90 PERCENT.

  • AND YET, THEY'RE FINDING THAT A LOT OF THE METRO AREAS LIKE LA,

  • CHICAGO, THERE'S A LOT OF THESE OTHER METRO AREAS ARE NOT GOING

  • TO GROW QUITE AT THAT RATE.

  • SO, THAT'S SOMETHING WE WANT TO BE CONCERNED WITH

  • AND YOU CAN SEE LA IS DEFINITELY PRETTY FAR DOWN IN THAT RANKING.

  • SO, THIS IS THE STUFF I TOLD YOU ABOUT IN MY INTRODUCTION

  • THAT BEACON ECONOMICS HELPS ME WITH AND REALLY THIS IS TO LOOK

  • AT COMMUTING IN THE REGION USING DATA FROM THE US CENSUS

  • AND REALLY UNDERSTAND THE COMMUTING PATTERNS

  • BECAUSE IF WE'RE GOING TO UNDERSTAND OUR LOCAL ECONOMY,

  • WE NEED TO KNOW WHERE PEOPLE ARE LIVING AND WORKING

  • AND THE THINGS THAT ARE MOTIVATING THEM TO MOVE.

  • SO, THERE'S ABOUT 200,000 RESIDENTS IN THE CITY

  • OF LONG BEACH THAT ARE EMPLOYED AND ABOUT 66 PERCENT

  • OF THEM WORK OUTSIDE OF THE CITY OF LONG BEACH

  • AND THERE'S ABOUT 182,000 JOBS.

  • SO, IF YOU LOOK AT THIS, YOU CAN SEE THE RED ARE THE PEOPLE

  • THAT LIVE AND WORK IN LONG BEACH

  • AND THEN THE GOLD ARE THOSE WHO--

  • FROM LONG BEACH WHO COMMUTE OUT TO OTHER AREAS.

  • AND THE BLUE ARE THOSE WHO COMMUTE

  • IN TO LONG BEACH TO WORK.

  • AND AS YOU WOULD EXPECT, PEOPLE ARE GOING

  • TO MAKE MORE MONEY IF-- TO COMMUTE SOMEWHERE ELSE, RIGHT?

  • AND THAT MAKES SENSE BECAUSE YOU'RE WILLING

  • TO MAKE A LITTLE BIT LESS IF YOU CAN LIVE CLOSE

  • TO YOUR HOME POTENTIALLY

  • VERSUS IF YOU NEED TO COMMUTE ALONG WAY.

  • THERE'S GOT TO BE A FINANCIAL MOTIVATOR

  • FOR YOU TO GO SOMEWHERE ELSE.

  • SO, THIS ISN'T SAYING PEOPLE MAKE LESS IN LONG BEACH,

  • IT'S JUST SAYING THE PEOPLE THAT LIVE

  • AND WORK ON AVERAGE MAKE LESS.

  • AND THEN, IF YOU'RE GOING TO COMMUTE, YOU MAKE MORE.

  • HERE'S THE BREAKDOWN OBVIOUSLY, MOST OF OUR SORT

  • OF CROSS-COMMUTING IS WITH LA AND ORANGE COUNTY

  • BUT WE DO HAVE SOME OTHER AREAS AND, YOU KNOW,

  • OBVIOUSLY LIKE IF THEY'RE COMMUTING

  • AND AS THEIR GENERALLY PLACE IS VERY FAR AWAY.

  • BUT, YOU KNOW, INLAND EMPIRE AND I'M SURE THERE ARE PEOPLE I KNOW

  • SINCE WE HAVE COLLEAGUE-- AND MY HUSBAND AS A COLLEAGUE WHO LIVES

  • IN SAN DIEGO COUNTY, SO I MEAN PEOPLE COULD BE DEFINITELY

  • COMMUTING TO THOSE OTHER AREAS.

  • ONE OF THE THINGS THAT IS DEFINITELY NOT SURPRISING

  • TO ME IS WHEN YOU LOOK AT THE COMMUTERS BY INDUSTRY, YOU SEE,

  • IF YOU LOOK IN THAT FINAL COLUMN,

  • YOU CAN SEE THAT THERE'S THIS NET OUTFLOW OR THAT'S NEGATIVE

  • OR THAT WOULD BE A POSITIVE NET INFLOW OF PEOPLE

  • IN THE TRADE TRANSPORTATION AND UTILITIES INDUSTRIES.

  • CLEARLY WITH THE PORTS HERE, IT'S NOT SURPRISING THAT THAT'S

  • WHERE YOU WOULD BE RECRUITING THE MOST PEOPLE

  • WHO DON'T ALSO LIVE HERE TO COME IN.

  • IF YOU LOOK AT IT BY OCCUPATION,

  • YOU CAN SEE THAT PEOPLE ARE GENERALLY COMMUTING

  • OUT FOR ADMINISTRATIVE OFFICE TYPE JOBS

  • BUT WE'RE BRINGING PEOPLE IN, IN TRANSPORTATION AND HEALTH CARE.

  • AND AGAIN, IT'S PROBABLY NOT SURPRISING, WE HAVE A LOT

  • OF HEALTH CARE FACILITIES IN THE CITY

  • AND THEN OBVIOUSLY THE WORK-- THE JOBS RELATED TO THE PORTS.

  • NOT A BIG DIFFERENCE AND PEOPLE ARE COMMUTING

  • OUT AT ALL EDUCATION LEVELS AND PEOPLE ARE COMMUTING

  • OUT AT PRETTY MUCH ALL NET OUTFLOW

  • OF ALL INCOME LEVELS EXCEPT

  • THAT WE DO ACTUALLY SEE A HIGHER PERCENTAGE OF PEOPLE COMING

  • IN TO MAKE MORE MONEY AT THE HIGH LEVELS, OK?

  • SO, THOSE HIGH LEVEL JOBS ARE ATTRACTING PEOPLE

  • FROM ALL OVER THE REGION.

  • AND AGAIN, THAT'S NOT SURPRISING.

  • YOU'RE WILLING TO COMMUTE FURTHER

  • IF YOU CAN MAKE MORE MONEY.

  • AND IF THEY ALREADY LIVE SOMEWHERE

  • AND THEN THEY GOT THIS JOB, THEY MIGHT NOT DECIDE TO MOVE.

  • OK. SO, ONCE WE UNDERSTAND WHO WE ARE DEALING WITH NOW,

  • WE HAVE THESE PEOPLE SOME OF WHOM LIVE HERE,

  • SOME OF WHO COMMUTE AWAY, I MEAN WORK HERE,

  • SOME OF WHOM COMMUTE AWAY BUT WE HAVE PEOPLE LIVING

  • IN THIS REGION, WE NEED TO KNOW WHAT'S GOING

  • ON WITH THE HOUSING MARKET.

  • WE NEED TO UNDERSTAND WHAT'S GOING ON WITH HOUSING.

  • AND NOT SURPRISING, WE'VE ACTUALLY SEEN

  • THAT THE HOUSING MARKET STARTS TO RECOVER, PRICES ARE GOING UP.

  • BUT I DON'T KNOW IF YOU'VE NOTICED

  • BUT THERE'S DEFINITELY BEEN A SLOWDOWN IN SALES

  • IN THE LAST MONTH OR TWO.

  • I'VE SEEN A LOT MORE OPEN-HOUSES

  • AT THE SAME HOUSE WEEK AFTER WEEK.

  • THESE HOUSES ARE NOT TURNING OVER.

  • AND THAT'S EVIDENCED BY THE FACT

  • THAT THERE WAS A 16 PERCENT DECLINE

  • SINCE LAST YEAR IN SALES.

  • WE'RE STILL CONTINUING TO SEE FORECLOSURES FALL

  • AND THAT IS ALSO DRIVING THIS DECLINE

  • IN SALES 'CAUSE YOU DON'T HAVE THESE FORECLOSED HOUSES

  • BEING SOLD.

  • AND RENTS, WELL, THEY'VE GONE UP A BIT.

  • THEY'RE HOLDING A BIT STEADY NOW, OK?

  • SO, THEY WERE RISING QUITE FAST BUT THERE SEEMED TO BE SORT

  • OF SLOWING DOWN AND THAT'S PROBABLY MIRRORED WITH THE FACT

  • THAT THE HOUSING SALES ARE DOWN AS WELL.

  • SO, WHAT'S THE HOUSING MARKET FUTURE THEN IN LONG BEACH?

  • WELL, GIVEN THAT LONG BEACH

  • AND THE SURROUNDING COMMUNITIES ARE RELATIVELY BUILT UP AREAS,

  • YOU KNOW, IT'S UNLIKELY WE'RE GOING

  • TO SEE ENOUGH NEW HOUSING BUILT TO KEEP WITH DEMAND

  • AND SO WE'RE GOING

  • TO SEE HOUSING PRICES LIKELY CONTINUE TO RISE.

  • OFFSETTING THAT THOUGH MAY BE THE FACT

  • THAT NEW MORTGAGE LENDING RULES MAY MAKE IT HARDER FOR PEOPLE

  • WHO WANT TO BUY TO BUY AND THEN THAT COULD ACTUALLY LEAD

  • TO INCREASES IN RENTS.

  • SO, THERE'S A COUPLE SORT OF FORCES THAT ARE KIND OF GOING

  • AGAINST EACH OTHER WITH THE HOUSING MARKET.

  • BUT WE-- HOUSING MARKET INCREASE PRICES--

  • INCREASES GREAT IF YOU CURRENTLY OWN YOUR HOME,

  • IF YOU'RE IN THE HOUSING INDUSTRY.

  • BUT OBVIOUSLY AS HOUSING PRICES START TO GO BACK UP AGAIN,

  • WE CAN'T IGNORE THE ISSUES OF AFFORDABILITY.

  • YOU KNOW, THE LA MUCH A REGION RANKS AMONG ONE

  • OF THE LEAST AFFORDABLE METRO REGIONS AND LA

  • AND ORANGE COUNTY WERE NOTED AS TWO, THE SECOND

  • AND THIRD MOST UNAFFORDABLE PLACES ONLY BEHIND

  • SAN FRANCISCO.

  • AND LET'S PUT IT INTO PERSPECTIVE.

  • I LIVED IN DC FOR A LONG TIME.

  • THE MEDIAN INCOME IN LONG BEACH IS ABOUT 52,000 IN 2012.

  • AND THIS IS THE-- THIS IS SORT OF THAT MIDDLECLASS PERSON.

  • AND THE MEDIAN INCOME IN DC IS 64,000

  • AND HOUSING IS ABOUT THE SAME COST.

  • AND DC IS NOT ONE OF THE MOST AFFORDABLE CITIES.

  • IT'S ALREADY PRETTY LOW DOWN ON THE LIST.

  • HOUSING AFFORDABILITY IS ONE OF THE MAJOR DRIVERS AS WELL

  • AS THE LACK OF JOBS IN TERMS OF NET DOMESTIC OUT MIGRATION

  • FROM CALIFORNIA AND LA COUNTY.

  • IF YOU LOOK AT THE RESULTS FROM THE 2008

  • TO 2011 AMERICAN COMMUNITY SURVEY FROM THE CENSUS,

  • YOU CAN SEE THAT ROUGHLY 300,000 PEOPLE LEFT LA COUNTY

  • TO OTHER US COUNTIES WHILE ONLY ABOUT 200,000 MOVED IN.

  • AND THEN I SAW SOME INTERESTING DATA

  • FROM ALLIED VAN LINES SHOWING THAT THE NET OUT MIGRATION

  • OF PEOPLE WITH LARGE LOADS, WE'RE TALKING

  • ABOUT THE WEALTHIER AND MORE EDUCATED PEOPLE WHO HAVE A LOT

  • OF STUFF IS OBVIOUSLY THERE'S NEGATIVE

  • IN MIGRATION FOR CALIFORNIA.

  • AND TEXAS AND FLORIDA ARE THE PLACES WHERE THEY'RE GOING.

  • SO, LET'S TALK ABOUT EMPLOYMENT NOW.

  • EMPLOYMENT IS AN IMPORTANT PART OF TALKING ABOUT THE ECONOMY

  • OF GREATER LONG BEACH.

  • AND I'M GOING TO TALK ABOUT IT IN TERMS

  • OF THIS GREATER LONG BEACH REGION RATHER THAN JUST LOOKING

  • AT DATA FROM THE CITY OF LONG BEACH.

  • SINCE CLEARLY, THE CITY ITSELF IS NOT ITS OWN ECONOMY,

  • SO WE'RE SORT OF TALKING ABOUT CITIES THAT ARE RELATED

  • OR NEXT TO EACH OTHER.

  • SO, TOP INDUSTRIES IN THE REGION,

  • MANUFACTURING STILL REMAINS NUMBER ONE.

  • AND THEN THE OTHER ONE IS PROBABLY NOT SURPRISING,

  • TRAVEL AND ENTERTAINMENT, RETAIL, HEALTH CARE,

  • ADMINISTRATION, PROFESSIONAL SERVICES, GOVERNMENT, TRADE,

  • TRANSPORTATION, CONSTRUCTION, FINANCE.

  • THIS IS AS PERCENTAGE OF TOTAL JOBS.

  • YOU CAN SEE HERE SOME JOBS BY INDUSTRY FROM YEAR TO YEAR

  • AND WE'RE SEEING ACTUALLY SOME DROP IN THE HEATH CARE JOBS

  • BUT WE'LL TALK ABOUT THAT WE'RE MAYBE NOT CAPTURING SOME

  • OF THE JOBS IN THESE PARTICULAR NUMBERS

  • BECAUSE I COULD ONLY GET THEM FOR 2013.

  • SOME OF THESE HOME HEALTH CARE JOBS AND THINGS LIKE THAT.

  • SO, IF I PUT THEM IN, IT WOULD LIKE THIS HUGE INCREASE

  • BECAUSE I DON'T HAVE THEM IN MY 2012 DATA.

  • SO, THE PEOPLE MAY BE TRANSITIONING

  • TO DIFFERENT KINDS OF HEALTH CARE JOBS.

  • MANUFACTURING EMPLOYMENT CLEARLY IS DOWN BUT STEADY

  • OVER THE LAST COUPLE OF YEARS.

  • BUT WITH BOEING'S ANNOUNCEMENT THAT THE C-17 BUSINESS IS GOING

  • TO LEAVE, WE CAN'T EXPECT THAT NUMBER

  • TO HOLD STEADY FOR MUCH LONGER.

  • AND MANUFACTURING IS STRUGGLING OVERALL.

  • DURABLE GOOD ORDERS IN JANUARY AND DECEMBER WERE DOWN,

  • ALTHOUGH MOST OF THAT WAS DRIVEN

  • BY LOWER COMMERCIAL AIRLINER ORDERS.

  • BUT I THINK THAT THE BOTTOM LINE IS WE HAVE TO CONTINUE TO THINK

  • ABOUT DIVERSIFYING OUR ECONOMY AND LET IT BE OK

  • IF MANUFACTURING IS NOT NUMBER ONE ON THAT LIST.

  • HERE'S THE TRANSPORTATION EQUIPMENT MANUFACTURING JOBS

  • AND YOU CAN SEE THEY'VE BEEN STEADY BUT AS SOON

  • AS THOSE C-17 JOBS GO AWAY, YOU'RE GOING

  • TO SEE A BIG SPIKE DOWNWARD THERE AS WELL.

  • TRAVEL AND TOURISM, IT'S BEEN GOING WELL, SLIGHT UPTICK.

  • WE'VE SEEN MORE PEOPLE, MORE EMPLOYMENT AND FOOD AND DRINK.

  • ESTABLISHMENTS, WE'VE SEEN EMPLOYMENTS

  • AT LONG BEACH AIRPORT ON THE RISE AND 2013

  • WITH A STRONG YEAR FOR THESE INDUSTRIES.

  • HOTEL, YOU KNOW, OCCUPANCIES FORECAST TO BE

  • ABOUT FLAT THIS YEAR BUT LONG BEACH IS PREPARING FOR INCREASES

  • IN THE CONVENTION BUSINESS THANKS

  • TO ALL THE RENOVATIONS HERE AT THE CONVENTION CENTER

  • AND THE ARENA SO THAT THE HOTELS ARE PREPARING

  • FOR FUTURE INCREASES WITH RENOVATIONS, ET CETERA.

  • AND I BELIEVE THAT THESE LONG BEACH AIRPORT RENOVATIONS WILL

  • HELP DRIVE FUTURE PASSENGER TRAFFIC GROWTH EVEN THOUGH

  • THERE'S SOME EVIDENCE THAT 2013 TRAFFIC MAY HAVE BEEN A LITTLE

  • BIT DOWN.

  • RETAIL TRADE-- OOPS, SLIGHT UPTICK GOING STRONG.

  • HEALTH CARE, THIS IS THOSE SLIGHT DOWNTICK

  • THAT I SHOWED YOU FROM BEFORE AND SO WHAT'S GOING

  • ON WITH FUTURE OF HEALTH CARE EMPLOYMENT THEN?

  • SO, SEVERAL TRENDS ARE HEADING THIS

  • AND THESE ARE WHAT ARE GOING TO BE WHAT WE HAVE TO WATCH,

  • GOING BACK TO AFFORDABLE HEALTH CARE,

  • I MEAN THE AFFORDABLE HEALTH CARE ACT.

  • FIRST, THE NEED TO REDUCE COSTS.

  • HOPEFULLY, AN INCREASE IN THE NUMBER OF INSURED WHO SIGNED

  • UP THROUGH COVERED CALIFORNIA.

  • AND THEN THE THIRD TREND IS WHAT HAPPENS

  • WITH THIS GROWING YOUNGER AND OLDER POPULATION BOTH

  • OF WHOM DEMAND MORE HEALTH CARE SERVICES.

  • ALL THREE OF THOSE TOGETHER WERE GOING TO DETERMINE THE FUTURE

  • OF HEALTH CARE EMPLOYMENT.

  • GOVERNMENT EMPLOYMENT, YOU SAW THAT LOCAL GOVERNMENT IS DOWN

  • BUT FEDERAL AND STATES SEEM TO BE HOLDING PRETTY STEADY.

  • TRANSPORTATION AND WAREHOUSING.

  • SO, TRANSPORTATION AND WAREHOUSING IS THE STUFF RELATED

  • TO THE PORT AND YOU CAN SEE HERE THAT IT HAS BEEN ON THE UPRISE.

  • WE ALSO HAVE THE FACT THAT INBOUND CONTAINERS AT THE PORTS

  • OF LONG BEACH AND LOS ANGELES ARE BOTH UP.

  • AND WE ALSO SEE THAT EXPORTS ARE UP AT THE PORT OF LONG BEACH,

  • SLIGHTLY DOWN AT PORT OF LOS ANGELES BUT STILL

  • ON THE GENERAL TREND UPWARDS.

  • VALUE OF IMPORTS THROUGH BOTH PORTS IS UP

  • AND THIS IS WHY ASIA IS SO IMPORTANT.

  • NUMBER ONE TRADE THROUGH THE PORTS OF LONG BEACH

  • IN LOS ANGELES IS CHINA.

  • AND THEN JUST TAKE A LOOK AT THE REST

  • OF THAT LIST, EXCEPT FOR IRAQ.

  • THEY'RE ALL ASIAN.

  • SO, WE DO CARE IN THIS REGION ABOUT WHAT'S GOING

  • ON IN THE ASIAN ECONOMY.

  • TRADE WITH CHINA AND THE US OVERALL WHICH IS

  • THAT TOP BLUE GRAPH LINE AND IN CALIFORNIA, THE YELLOW LINE ARE

  • UP AND THEN YOU CAN SEE THAT'S ALSO UP AT THE TWO LOCAL PORTS.

  • AND THESE JUST TALKS ABOUT SOME OF THE MAJOR COMMODITIES GOING

  • THROUGH THE PORTS WHICH ARE THINGS LIKE MACHINERY, VEHICLES,

  • PLASTICS, FUELS, AND THESE ARE THE THINGS

  • THAT ARE DRIVING THE MAJOR EXPORTS

  • AND IMPORTS THROUGH THOSE PORTS.

  • THE PORTS ARE VERY IMPORTANT TO OUR LOCAL ECONOMY.

  • AS THEY PUT MONEY INTO CAPITAL INVESTMENTS

  • OVER THE NEXT FEW YEARS, THERE'LL BE ALL THOSE KINDS

  • OF INVESTMENT AND CONSTRUCTION TYPE JOBS.

  • WE STILL HAVE TO BE WATCHING WHAT'S GOING

  • ON WITH THE PANAMA CANAL NOW THAT THE EXPANSION HAS RESUMED.

  • AND CLEARLY, THERE'S GOING TO BE SOME MAJOR MANAGEMENT CHANGES

  • AT THE PORT AND THOSE WILL AFFECT WHAT HAPPENS

  • WITH THE FUTURE OF OUR LOCAL ECONOMY.

  • OTHER SERVICES ARE ALSO ON THE RISE.

  • AND THIS WAS THE NUMBER ONE CATEGORY IN MY TOP 10 IN TERMS

  • OF WHICH INDUSTRIES ARE GROWING.

  • SO, WHAT ELSE CAN I TELL YOU

  • ABOUT WHAT'S GOING ON IN LONG BEACH.

  • WELL, ACCORDING TO A SURVEY, THE LONG BEACH BUSINESS MONITOR,

  • SMALL BUSINESSES IN LONG BEACH ARE OPTIMISTIC ABOUT 2014.

  • WHAT OTHER EVIDENCE CAN I PROVIDE?

  • WELL, LET'S SEE HERE.

  • NEW HOTEL NEAR THE AIRPORT, ICU BUSINESSES OPENING UP ALL

  • AROUND TOWN, NEW RESTAURANTS, NEW SHOPS,

  • THE LEASING OF THE FLY DC JETS PLANT BY MERCEDES-BENZ,

  • BOEING'S ANNOUNCEMENT THAT EVEN THOUGH IT'S CLOSING

  • DOWN THE C-17, IT'S STILL GOING

  • TO BRING 300 NEW ENGINEERING JOBS TO LONG BEACH.

  • THE GREAT WORK THAT LONG BEACH CITY COLLEGE IS DOING

  • WITH ITS NEW INNOVATION FUNDS, SOCAL, THERE'S A LOT

  • OF POSITIVE THINGS GOING ON IN GREATER LONG BEACH THAT'S POINT

  • TO A GREAT ECONOMIC FUTURE.

  • BUT WE ALSO HAVE SOME CHALLENGES.

  • WE HAVE TO FACE THE FACT THAT THOSE 2,000 JOBS ARE GOING AWAY.

  • AND WE'RE POSITIONED IN SOME FAST-GROWING INDUSTRIES

  • LIKE HEALTH CARE AND SERVICES.

  • I BELIEVE THAT OUR BIGGEST OPPORTUNITIES ARE IN HEALTH CARE

  • IN CONTINUING TO GROW, THE TRANSPORTATION AND WAREHOUSING,

  • THINGS-- TYPES OF JOBS RELATED TO THE PORT, TRAVEL AND TOURISM,

  • AND ENCOURAGING ENTREPRENEURS TO START NEW BUSINESSES.

  • THEY CAN BENEFIT FROM LONG BEACH CITY COLLEGE'S NEW INNOVATE FUND

  • AND THEY MAY ALSO BENEFIT FROM BEING ABLE TO LEAVE JOBS

  • BECAUSE THEY'RE NO LONGER HELD

  • DOWN BY EMPLOYER SPONSORED HEALTH CARE.

  • SO, I HOPE THAT WHAT I'VE TOLD YOU TODAY HELPS YOU SEE

  • THAT MOST OF THE SHORT-TERM RECOVERY,

  • WE HAVE TO BE A LITTLE BIT SORT OF AWARE OF WHAT'S GOING

  • ON AT THE NATIONAL AND GLOBAL STAGE,

  • BUT I THINK WE CAN START PREPARING FOR THE FUTURE.

  • WE CAN START TRAINING PEOPLE FOR THE JOBS THAT ARE GOING

  • TO BE THERE A YEAR, TWO YEARS, FOUR YEARS, FIVE YEARS,

  • 10 YEARS FROM NOW AND WE CAN CONTINUE TO BUILD

  • ON OUR ASSETS THE THINGS THAT ARE DOING WELL AND TRY

  • TO GROW LONG BEACH AND ITS SURROUNDING COMMUNITIES

  • TO A BRIGHTER AND MORE--

  • AND ECONOMICALLY DIVERSE BECAUSE THERE WILL BE FEWER

  • MANUFACTURING JOBS' FUTURE.

  • THANK YOU.

  • [ APPLAUSE ]

  • >> ALL RIGHT.

  • TODAY, I AM PLEASED TO WELCOME THREE DISTINGUISHED LOCAL

  • INDUSTRY EXPERTS THAT ARE GOING TO TALK ABOUT THEIR BUSINESSES

  • AND ORGANIZATIONS AND THE INDUSTRIES IN WHICH THEY OPERATE

  • AND HOPEFULLY THAT WILL HELP US GET A BETTER IDEA

  • OF WHAT'S GOING ON WITH THE LOCAL ECONOMY.

  • SO, I'M GOING TO FIRST INTRODUCE THE THREE PANELISTS

  • AND THEN ONCE I'VE INTRODUCED THEM, THEY WILL TALK

  • BUT THAT WAY, I WON'T BE INTRODUCING THEM IN BETWEEN.

  • AND I COULDN'T DECIDE WHETHER THERE WAS A GOOD ORDER

  • TO PUT THEM IN.

  • SO, FOR LACK OF A BETTER ORDER, I JUST MADE IT ALPHABETICAL.

  • SO, YOU KNOW, SO THERE'S NO

  • LIKE PREDETERMINED REASON WHY PEOPLE-- WHY THIS IS THIS ORDER.

  • AND I ASKED THEM IF THEY HAD A PREFERENCE

  • AND THEY DIDN'T EITHER.

  • SO, LET-- SO, OUR FIRST PANELIST THEN OUT OF--

  • THE FACT THAT IT'S ALPHABETICAL IS NOEL HACEGABA

  • AND HE IS THE ACTING-- EXECUTIVE DIRECTOR

  • AND THE CHIEF OPERATING OFFICER AT THE PORT OF LONG BEACH.

  • AND IN THIS CAPACITY, HE'S THE ONE

  • THAT MANAGES THE DAILY BUSINESS

  • OF THE PORT INCLUDING FOUR BUREAUS, 17 DIVISIONS,

  • AND OVER 450 EMPLOYEES.

  • SO, I THINK DAVID NEED TO GET BACK TO 100 PEOPLE,

  • YOU PROBABLY CAN RELATED.

  • HE BRINGS TO HIS CURRENT POSITION, KNOWLEDGE OF THE PORT

  • AND ITS STAKEHOLDERS BECAUSE HE WAS PREVIOUSLY EXECUTIVE

  • DIRECTOR OF THE HARBOR COMMISSION,

  • THE PORT'S GOVERNING BODY.

  • THERE, HE-- IN ADDITION TO MANAGING ALL THE ADMINISTRATION

  • AND COMMUNICATION, HE ALSO REPRESENTED THE HARBOR

  • COMMISSION BEFORE ELECTED OFFICIALS AND PORT STAKEHOLDERS.

  • NOEL HAS MORE THAN 17 YEARS OF PUBLIC

  • AND PRIVATE SECTOR EXPERIENCE, MOST RECENTLY,

  • PRIOR TO JOINING THE PORT AND HARBOR COMMISSION.

  • HE WORKED AT REPUBLIC SERVICES,

  • ONE OF THE NATION'S LARGEST ENVIRONMENTAL

  • SERVICES COMPANIES.

  • HE HAS BOTH UNDERGRADUATE AND MASTER'S DEGREES IN ECONOMICS.

  • GOOD CHOICE FROM USC AS WELL AS DEGREES IN BUSINESS

  • AND URBAN PLANNING AND HE HAS A DOCTORATE

  • IN PUBLIC ADMINISTRATION FROM THE UNIVERSITY OF LA VERNE

  • WHERE HE'S CURRENTLY SERVES ON THE FACULTY IN THE COLLEGE

  • OF BUSINESS AND PUBLIC MANAGEMENT.

  • HE'S ALSO A GRADUATE OF THE CORO FELLOWS PROGRAM

  • IN PUBLIC AFFAIRS, ONE

  • OF THE NATION'S PREMIERE POST-GRADUATE FELLOWSHIP

  • PROGRAMS AND HE IS A CANDIDATE FOR PORT PROFESSIONAL MANAGER.

  • IN ADDITION TO SERVING ON THE AMERICAN ASSOCIATION

  • OF PORT AUTHORITIES, ECONOMIC DEVELOPMENT COMMITTEE,

  • HE ALSO SITS ON A NUMBER OF BOARDS LOCALLY,

  • INCLUDING ST. MARY MEDICAL CENTER, THE MARINE EXCHANGE

  • OF SOUTHERN CALIFORNIA, THE HARBOR ASSOCIATION OF INDUSTRY

  • AND COMMERCE, ET CETERA, ET CETERA.

  • YOU MUST BE BUSY.

  • THANK YOU, NOEL FOR BEING HERE TODAY.

  • OUR SECOND PANELIST IS DIANA HENDEL.

  • DIANA IS THE CEO OF LONG BEACH MEMORIAL MEDICAL CENTER,

  • MILLER CHILDREN'S HOSPITAL LONG BEACH

  • AND COMMUNITY HOSPITAL LONG BEACH.

  • THAT IS A LONG TITLE.

  • DIANA HAS SERVED IN HER CURRENT ROLE SINCE 2009 BUT SHE HAS MORE

  • THAN 24 YEARS IN THE MEMORIAL CARE HEALTH SYSTEM

  • AND MOST RECENTLY WAS A COO.

  • HER EXPERIENCE AT MEMORIAL CARE INCLUDES SEVERAL ADMINISTRATIVE

  • POSITIONS INCLUDING ADMINISTRATOR

  • AT SADDLEBACK MEMORIAL MEDICAL CENTER, THE SAN CLEMENTE CAMPUS,

  • AND AS THE EXECUTIVE DIRECTOR

  • OF PHYSICIAN INTEGRATION AND STRATEGY.

  • DIANA HAS BEEN RECOGNIZED FOR HER LEADERSHIP

  • IN GROWING THE LONG BEACH HOSPITALS

  • AND FOR THEIR FINANCIAL PERFORMANCE AND PROMINENCE

  • AND IN THE HEALTH CARE FIELD MORE BROADLY.

  • SHE HAS BEEN HONORED WITH THE LOS ANGELES BUSINESS JOURNAL

  • WOMAN MAKING A DIFFERENT CEO AWARD, THE PRESS TELEGRAM,

  • AMAZING WOMAN OF THE YEAR IN THE HEALTH CARE AWARD.

  • AND THE WOMAN OF THE YEAR AWARD FROM WOMEN

  • IN HEALTH ADMINISTRATION OF SOUTHERN CALIFORNIA.

  • SHE HOLDS A DOCTOR OF PHARMACY DEGREE FROM UC SAN FRANCISCO

  • WHERE SHE ALSO SERVED AS AN ASSISTANT PROFESSOR AS WELL

  • AS A BACHELOR'S IN BIOLOGICAL SCIENCES FROM UC IRVINE.

  • SHE ALSO SERVES ON MANY BOARDS INCLUDING THE HOSPITAL

  • ASSOCIATION OF SOUTHERN CALIFORNIA,

  • CALIFORNIA CHILDREN'S HOSPITAL ASSOCIATION AND LOCAL BOARDS

  • SUCH AS THE LONG BEACH AREA CHAMBER OF COMMERCE,

  • THE LONG BEACH POLICE FOUNDATION AND MANY OTHERS.

  • AGAIN, WE HAVE A BUSY PANELIST.

  • AND SO, THANK YOU DIANA FOR BEING HERE TODAY.

  • OUR THIRD PANELIST IS MARIO RODRIGUEZ.

  • HE IS THE EXECUTIVE DIRECTOR OF THE LONG BEACH AIRPORT

  • AND HE HAS BEEN IN THAT ROLE SINCE 2009.

  • MARIO HAS MORE THAN 25 YEARS IN THE AVIATION INDUSTRY

  • AND IS A WELL-REGARDED AVIATION EXPERT.

  • MOST RECENTLY, BEFORE COMING TO LONG BEACH,

  • HE WAS THE LOUIS ARMSTRONG NEW ORLEANS INTERNATIONAL AIRPORT

  • WHERE HIS LEADERSHIP HELPED THE AIRPORT RECOVER QUICKLY

  • FROM THE EFFECTS OF HURRICANE KATRINA.

  • HIS PRIOR EXPERIENCE INCLUDES AIR FORCE IN KUWAIT AS WELL

  • AS PALM BEACH, FLORIDA.

  • MARIO IS AN ENGINEER BY TRAINING AND HAS A DEGREE

  • FROM THE UNIVERSITY OF MIAMI.

  • HE ALSO SITS ON THE BOARD OF AIRPORTS COUNCIL INTERNATIONAL,

  • IS PRESIDENT OF THE CALIFORNIA AIRPORTS COUNCIL.

  • AND HE HAS WON THE PRESTIGIOUS ENVIRONMENTAL ACHIEVEMENT AWARD

  • FROM AIRPORTS COUNCIL INTERNATIONAL.

  • HE IS ALSO A LEADING AUTHOR AND SPEAKER ON AVIATION ISSUES

  • AND IS CURRENTLY AUTHORING A TEXTBOOK

  • ON AIRPORT FINANCIAL MANAGEMENT.

  • VERY INTERESTING.

  • MOST IMPORTANT TO OUR LOCAL ECONOMY IS THE IMPRESSIVE RECORD

  • HE HAS HAD SINCE COMING TO LONG BEACH.

  • SINCE THE RENOVATION IS NOT ONLY IS EASY TO FLY IN AND OUT

  • OF LONG BEACH AIRPORT, IT IS SUCH A PLEASURE.

  • AND I HAVE TO TELL YOU THAT WE WERE INTERVIEWING SOMEONE

  • FOR AN OPEN-FACULTY POSITION WHO IS FROM ANOTHER COUNTRY

  • AND HE FLEW IN THROUGH LONG BEACH AIRPORT AND HE ASKS ME

  • IF THE FIRE PITS MEANT ANYTHING.

  • AND I SAID, "YES, THEY MEAN YOU'RE AT LONG BEACH AIRPORT."

  • IT'S JUST FOR THE ATMOSPHERE.

  • HE THOUGHT THERE WAS SOME KIND OF CULTURAL SIGNIFICANCE.

  • >> WE CAN MAKE ONE UP [INAUDIBLE].

  • >> SO, THANK YOU, MARIO FOR BEING HERE TODAY.

  • OK. SO, FIRST OF ALL, BEFORE WE BEGIN, I WANT TO GIVE A ROUND

  • OF APPLAUSE FOR THE PANELIST FOR BEING HERE.

  • [ APPLAUSE ]

  • >> IT'S REALLY A PLEASURE FOR ME TO BE HERE

  • AND I'M ACTUALLY JOINED BY TWO OF OUR HARBOR COMMISSIONERS,

  • DOUG DRUMMOND AND COMMISSIONER SUSAN WISE AND ONE

  • OF OUR COMMISSIONERS, DR. MIKE WALTER IN ADDITION

  • TO SEVERAL OF OUR STAFF.

  • IT IS BECAUSE OF THEIR LEADERSHIP

  • AND THE STAFFS' DEDICATION THAT I'M THE LUCKY ONE WHO GETS

  • TO TALK ABOUT ALL THE GREAT THINGS THAT'S TAKING PLACE HERE

  • AT THE PORT OF LONG BEACH.

  • IT'S AN EXCITING TIME AT THE PORT

  • BUT IT'S ALSO A CHALLENGING TIME.

  • WE SEE OPPORTUNITIES FOR US TO GROW OUR BUSINESS

  • AND MAKE THE TRANSPORTATION OF GOODS GREENER,

  • AND ALSO TO INCREASE THE NUMBER OF JOBS IN SOUTHERN CALIFORNIA

  • AND THROUGHOUT THE REGION.

  • BUT FOR THOSE WHO MAY NOT BE FAMILIAR WITH THE PORT

  • OF LONG BEACH, WE ARE THE NATION'S SECOND LARGEST SEAPORT

  • AND WE HANDLE EACH YEAR A WIDE RANGE OF CARGO VALUED

  • IN OVER 100 BILLION DOLLARS.

  • 40 PERCENT OF THE NATION'S IMPORTS COME

  • THROUGH THE SAN PEDRO BAY COMPLEX.

  • PORT OF LOS ANGELES AND PORT OF LONG BEACH COMBINED.

  • THAT'S A HUGE NUMBER WHEN YOU CONSIDER THAT MOST

  • OF THE TRANS-PACIFIC TRADE COMES INTO THIS GATEWAY.

  • BUT PORT ACTIVITY AS IT RELATES TO ECONOMIC DEVELOPMENT

  • IN OUR LOCAL ECONOMY GENERATES ONE OUT OF EIGHT JOBS

  • IN LONG BEACH, OVER 300,000 IN SOUTHERN CALIFORNIA,

  • AND IF YOU LOOK ACROSS THE NATION, OVER ONE

  • AND A HALF MILLION JOBS.

  • THAT'S A HUGE JOB GENERATOR FOR ECONOMY.

  • LAST YEAR, JUST TO GIVE YOU A PICTURE,

  • OUR CARGO BOUNDS GREW BY OVER 11 PERCENT.

  • THAT'S THE PORT'S THIRD BEST YEAR

  • AND WE'VE BEEN AROUND FOR 103 YEARS.

  • TO PUT THAT IN PERSPECTIVE FOR YOU, WE WERE GROWING

  • AT THE FASTEST RATE OF ANY PORT IN NORTH AMERICA

  • AND WE GREW FASTER THAN THE US ECONOMY BY FOUR TIMES.

  • THAT'S VERY SIGNIFICANT.

  • BUT WE FACE INCREASE IN COMPETITION FOR MEXICAN PORTS

  • AND CANADIAN PORTS TO THE NORTH.

  • AND LET'S NOT FORGET ABOUT THE PANAMA CANAL EXPANSION PROJECT.

  • THEY WENT THROUGH A FEW BUMPS HERE ALONG THE ROAD THIS YEAR

  • BUT NOW, THEY'VE RESET THEIR COMPLETION DATE TO 2016.

  • THE REASON WHY PANAMA CANAL, THE EXPANSION PROJECT THERE IS

  • SO SIGNIFICANT IS BECAUSE IT WOULD ALLOW LARGER VESSELS

  • TO BYPASS WEST COAST PORTS AND GO DIRECTLY

  • TO THE GULF COAST AND EAST COAST.

  • WHY IS THAT IMPORTANT?

  • BECAUSE TWO-THIRDS OF THE US POPULATION RESIDES EAST

  • OF THE MISSISSIPPI RIVER, BUT WE ARE CONFIDENT AT THE PORT

  • OF LONG BEACH THAT WE WILL CONTINUE

  • TO MAINTAIN OUR COMPETITIVE ADVANTAGE AND ONE BIG REASON IS

  • BECAUSE THE SIZE OF THE VESSELS ARE GETTING BIGGER AND BIGGER.

  • THE GOOD NEWS IS THAT WE ARE ALREADY BIG SHIP READY.

  • UNTIL A COUPLE OF YEARS AGO,

  • THE TYPICAL VESSEL SIZE CALLING THE PORT

  • OF LONG BEACH WAS ABOUT 8,000 TEUS.

  • TWO YEARS AGO, WE RECEIVED THE FIRST 12,000 TEU VESSEL

  • AND THAT WAS FOLLOWING SHORTLY BY A 13,000-TEU VESSEL.

  • LAST YEAR, WE'VE ALREADY--

  • WE ALREADY RECEIVED THREE 14,000 TEU VESSELS.

  • NOW, FOR THOSE OF YOU WHO ARE NOT FAMILIAR WITH THE JARGON,

  • LET ME EXPLAIN WHAT TEU STANDS FOR.

  • IT STANDS FOR TWENTY-FOOT EQUIVALENT.

  • AND YOU SEE THESE STEEL BOXES ON SHIPS, ON TRUCKS, ON TRAINS,

  • THEY VARY IN LENGTH FROM 20 TO 40, SOMETIMES UP TO 53 FEET

  • BUT THEY'RE 8 FEET TALL, THEY'RE 8 FEET WIDE.

  • AND THESE CONTAINERS IF YOU PICTURE A VESSEL WITH AS MANY

  • AS 14,000 OF THESE TEUS, YOU GET A PICTURE

  • OF JUST AN APPRECIATION OF JUST HOW MUCH CARGO WE'RE

  • TALKING ABOUT.

  • WHEN YOU GO TO CARGO, WHEN YOU GO TO TARGET,

  • WHEN YOU GO TO WALMART AND YOU GO TO LOOK AROUND THE SHELVES

  • AND YOU LOOK AT THE PRODUCTS THAT YOU'RE CONTEMPLATING,

  • PURCHASING EVERYTHING FROM CLOTHES TO SHOES, TO TOYS,

  • TO ELECTRONIC DEVICES, CHANCES ARE THAT MOST OF THAT CAME

  • TO THE US ON ONE OF THESE-- IN ONE OF THESE CONTAINERS.

  • THE OTHER DAY, I WAS WITH MY FAMILY AND WE WERE LOOKING

  • AROUND AT DIFFERENT ITEMS IN A CLOTHING STORE,

  • AND I HAVE THIS REALLY BAD HABIT OF LOOKING

  • WHERE THESE ITEMS WERE MADE.

  • AND SO, MY WIFE IS TIRED OF THAT AND SO BASED ON THE COUNTRY,

  • I SAID, "THIS ONE PROBABLY CAME ON OOCL

  • OR THIS ONE PROBABLY CAME ON NY [PHONETIC]."

  • SHE SAYS, "I DON'T CARE, IS IT ON SALE?"

  • [ LAUGHTER ]

  • OVER THE NEXT FEW YEARS, WE WILL SEE A TREND

  • THAT IS TRULY AN INDUSTRY GAME-CHANGER.

  • OVER HALF OF ALL THE VESSELS

  • IN TRANSIT WILL BE 10,000 TEU OR LARGER.

  • THAT'S VERY SIGNIFICANT.

  • LET ME SHOW YOU JUST HOW BIG THESE VESSELS ARE.

  • IF YOU COMPARE A 14,000-TEU VESSEL WITH SOME

  • OF THESE OTHER LANDMARKS, YOU'LL NOTICE THAT THEY'RE NEARLY

  • AS LONG AS THE EMPIRE STATE BUILDING'S TALL

  • AND IT NEARLY THE WIDTH OF A 10-LANE FREEWAY

  • BUT THEY'RE ALREADY TOO WIDE TO PASS THE PANAMA CANAL

  • WHICH IS STILL UNDER CONSTRUCTION

  • AND SET TO OPEN IN 2016.

  • SO, WHY ARE THESE VESSELS GETTING BIGGER AND BIGGER?

  • WHAT'S DRIVING OR WHAT'S STIRRING THIS CHANGE?

  • THREE WORDS, ECONOMIST OF SCALE.

  • THE BIGGER THE VESSEL, THE LOWER THE COST PER CONTAINER.

  • LIKE COSTCO AND OTHER BIG BOX RETAILERS,

  • BUYING IN BULK REDUCES A UNIT COST.

  • HOW MANY OF YOU SHOP AT COSTCO?

  • AND I PRESUME IT'S NOT BECAUSE OF THE 150 HOTDOGS

  • AND POLISH DOGS THEY SELL OUTSIDE BUT WE SHOP AT COSTCO

  • BECAUSE YOU GET VALUE FOR THE PRODUCTS THAT YOU BUY.

  • WE LIKE TO BUY THINGS AT A LOWER PER UNIT COST.

  • BUT OF COURSE WHEN THAT HAPPENS, WE HAVE TO FIND SPACE

  • IN OUR HOMES TO PUT THAT STUFF THAT WE BUY.

  • MANY HOUSEHOLDS, PERHAPS YOURS NOW HAVE TWO REFRIGERATORS.

  • AND IN MANY HOUSEHOLDS, NOW YOU'RE-- HALF OF YOUR GARAGE,

  • IF NOT MORE IS UTILIZED AND USED FOR THESE THINGS THAT WE BUY.

  • IF YOU THINK ABOUT THE PORTS, YOU GET A BETTER SENSE OF SOME

  • OF THE STRUGGLES THAT WE FACE,

  • THE LARGER THE VESSELS, THE MORE CONTAINERS.

  • THE MORE SPACE WE HAVE TO FIND,

  • THE MORE EFFICIENT WE HAVE TO BECOME.

  • THE MORE INCENTIVES WE HAVE TO INCREASE PRODUCTIVITY.

  • THAT'S ONE REASON WHY OUR BOARD

  • OF HARBOR COMMISSIONERS HAS ESTABLISHED A SUBCOMMITTEE

  • TO EXPLORE WAYS TO IMPROVE THROUGH PUT EFFICIENCIES

  • AND ENHANCE PRODUCTIVITY AT THE PORT.

  • EARLIER, DR. STEPHENS WAS TALKING

  • ABOUT THE NEED FOR SPEED.

  • WELL, THE NEED FOR SPEED IS THERE AT THE PORT AS WELL.

  • AS THE VESSELS ARE GETTING BIGGER,

  • WE NEED TO DO WHAT WE CAN TO INCENTIVIZE

  • AND FACILITATE THE SPEED THROUGH WHICH THIS CARGO IS PASSING

  • TO OUR GATEWAY.

  • I TALKED ABOUT SPEED BUT IF THESE VESSELS ARE GETTING BIGGER

  • AND BIGGER, WE ALSO HAVE TO TALK ABOUT INFRASTRUCTURE.

  • THANKFULLY, WE ARE IN THE MIDST

  • OF A 10-YEAR 4.5 BILLION DOLLAR CAPITAL IMPROVEMENT PROGRAM.

  • IN ADDITION TO THE MODERNIZATION AND THE IMPROVEMENT

  • OF OUR BRIDGES, OUR INFRASTRUCTURE, OUR TERMINALS

  • AND OUR RAIL SYSTEM, WE'RE ALSO LOOKING AT THIS AS A GOOD WAY

  • TO INCENTIVIZE THE ECONOMY BY GENERATING NEW JOBS.

  • LET ME GIVE YOU AN IDEA OF HOW MUCH WE'RE SPENDING CURRENTLY.

  • IN THIS FISCAL YEAR, OUR CAPITAL BUDGET IS 788 MILLION DOLLARS.

  • WE ARE SPENDING 2 AND A HALF MILLION DOLLARS A DAY

  • TO MODERNIZE OUR INFRASTRUCTURE AND MAKE IT MORE ADEQUATE

  • FOR THE LARGER VESSELS TO MAKE OUR GATEWAY MORE COMPETITIVE

  • ON THE YEARS TO COME.

  • THAT'S THE BIGGEST ONE-YEAR CAPITAL BUDGET

  • IN THE PORT'S HISTORY.

  • NOW, WHY ARE WE DOING THIS?

  • BECAUSE WE WANT TO MAINTAIN OUR COMPETITIVE ADVANTAGE.

  • WE DON'T WANT THE CANADIAN PORTS OR THE MEXICAN PORTS

  • OR EVEN THE EXPANSION OF THE PANAMA CANAL TO BE AN EXCUSE

  • FOR THESE CARRIERS TO RUN THEIR CARGO

  • THROUGH THOSE OTHER GATEWAYS.

  • AND WE'RE VERY CONFIDENT THAT WITH THE INVESTMENTS

  • THAT WE'RE MAKING AND THE PARTNERSHIPS THAT WE'RE FORGING

  • AND CULTIVATING WITH ALL OF OUR STAKEHOLDER PARTNERS THAT WE'RE

  • IN A GOOD POSITION

  • OF MAINTAINING THAT COMPETITIVENESS.

  • ONE OF OUR BIGGEST PROJECTS IS

  • THAT MIDDLE HARBOR REDEVELOPMENT TERMINAL.

  • WHEN THAT'S COMPLETED IN 2019, THAT TERMINAL

  • BY ITSELF WILL RANK AS THE NATION'S FOURTH LARGEST PORT.

  • THIS IS GOING TO MORE THAN DOUBLE ITS CURRENT CAPACITY

  • AND CUT EMISSIONS BY 50 PERCENT.

  • JUST A FEW WEEKS AGO, THE FIRST CRANES, THE LARGEST CRANES

  • IN THE WORLD ARRIVED AT THE SITE OF MIDDLE HARBOR.

  • UNFORTUNATELY, I DID NOT GET PERMISSION TO BRING ONE

  • OF THE CRANES WITH ME TODAY TO SHOW YOU AND BECAUSE THE PICTURE

  • OF THE SLIDE SIMPLY WOULDN'T JUST IS, I BROUGHT A VIDEO.

  • SO, IF THIS WORKS, WE'LL ENJOY IT.

  • [ PAUSE ]

  • [ MUSIC ]

  • AND THAT'S HOW QUICKLY WE WORK AT THE PORT OF LONG BEACH.

  • [ LAUGHTER ]

  • WE'RE VERY, VERY SPEEDY.

  • DID YOU SEE THAT DR. STEPHENS?

  • OK. SO, AS YOU CAN SEE, OUR FUTURE IS BIG

  • BUT OUR FUTURE IS ALSO BRIGHT.

  • BUT THE BEST WAY TO APPRECIATE THE MAGNITUDE AND THE SCALE

  • OF WHAT'S TAKING PLACE AT THE PORTS IS TO SEE IT UP CLOSE

  • AND WE OFFER AT THE PORT OF LONG BEACH FREE TOURS

  • TO THE COMMITTEE [PHONETIC] DURING THE SUMMER MONTHS.

  • SO, PLEASE KEEP YOUR EYES OPEN FOR THAT.

  • AND FOR THOSE OF YOU WHO ARE REALLY, REALLY MOTIVATED

  • AND I WOULD ASSUME THAT ALL OF YOU IN THIS ROOM ARE

  • BECAUSE YOU SHOWED UP ON A FRIDAY MORNING AT 7.

  • WE HAVE OUR UPCOMING ANNUAL POST OF THE PART EVENT

  • AND THAT'S ON APRIL 2ND.

  • SO AGAIN, THANK YOU VERY MUCH

  • AND ENJOY THE REST OF THE PROGRAM.

  • >> [BACKGROUND MUSIC] TODAY,

  • THE BEST HEALTH CARE GOES BEYOND MEDICINE.

  • MEMORIAL CARE IS TRANSFORMING HEALTH CARE

  • WITH A PERSONALIZED APPROACH, KEEPING OUR COMMUNITIES HEALTHY

  • AND CARING FOR THEM THAT ARE NOT.

  • OUR PHYSICIANS USE BEST PRACTICES,

  • DRAWING ON THE LATEST RESEARCH FOR SUPERIOR OUTCOMES.

  • AND THANKS TO SEAMLESS CONNECTIVITY BRING THE BEST

  • OF OUR BEST RESOURCES TO INSURE COORDINATED CARE.

  • MEMORIAL CARE TAKES HEALTH CARE BEYOND TREATMENT, PUTTING PEOPLE

  • ON THE PATH TO WELLNESS WITH HEALTHY NUTRITION,

  • PHYSICAL ACTIVITY, AND THE RIGHT LIFESTYLE CHOICES.

  • MEMORIAL CARE HAS EXPANDED OUR REACH AND OUR REPUTATION

  • FOR QUALITY AND COMPASSION.

  • NOW, ONE OF THE LARGEST AND BEST HEALTH SYSTEMS RIGHT

  • IN YOUR OWN BACKYARD.

  • MEMORIAL CARE HEALTH SYSTEM, INVESTING IN YOU.

  • >> OK. I LIKE THAT PICTURE ACTUALLY.

  • >> WE CAN LEAVE THAT.

  • >> SURE. ACTUALLY, IT'S A GREAT VECTOR.

  • WELL, THANK YOU.

  • I CHOSE THAT VIDEO BECAUSE IT REALLY BEGINS

  • TO PORTRAY THE FUTURE OF HEATH CARE WHERE PATIENT INVOLVEMENT,

  • PATIENT CONNECTIVITY THROUGH ELECTRONIC CONNECTION

  • AND THE ABSOLUTE FOCUS ON PREVENTION

  • AND WELLNESS IS PARAMOUNT FOR THE SUCCESS

  • OF OUR TRANSFORMATION OF OUR HEALTH CARE DELIVERY SYSTEM.

  • JUST AS BACKGROUND AND REALLY TO FRAME THE COMMENTS

  • THAT I'M GOING TO MAKE, I WANT TO SPEND A LITTLE BIT

  • OF TIME TALKING ABOUT THE ORGANIZATION

  • THAT I'VE HAD THE PRIVILEGE TO SERVE.

  • FOR OUR THREE HOSPITALS WHICH ARE PART

  • OF AN INTEGRATED DELIVERY SYSTEM, MEMORIAL CARE

  • AS EVIDENCED ON THE VIDEO, WE PRIDE OURSELVES

  • ON BEING HAVE THREE REALLY STRONG CONNECTIONS

  • IN THIS COMMUNITY.

  • FIRST OF COURSE AS A VERY LARGE EMPLOYER, MANY OF YOU KNOW

  • THAT WE ARE AMONGST THE LARGEST EMPLOYERS

  • IN THE GREATER LONG BEACH REGION.

  • IN FACT, WE HAVE MORE

  • THAN 10,000 PEOPLE WHOSE LIVELIHOODS DEPEND UPON US

  • EITHER THROUGH DIRECT EMPLOYMENT,

  • THROUGH PHYSICIAN RELATIONSHIPS

  • OR INDIRECTLY INDEPENDENT CONTRACTORS.

  • MANY PEOPLE WHO LIVE AND WORK DIRECTLY

  • IN THE GREATER LONG BEACH AREA.

  • SECONDLY, WE HAVE A LONGSTANDING LEGACY OF EDUCATION.

  • MANY OF THE FOLKS, THE CLINICIANS,

  • THE CAREGIVERS HAVE TRAINED AT LONG BEACH MEMORIAL,

  • MILLER CHILDREN'S OR COMMUNITY HOSPITAL.

  • WE HAVE A STRONG CONNECTION OF COURSE WITH CAL STATE LONG BEACH

  • AND LONG BEACH CITY COLLEGE WHERE MANY

  • OF PRACTITIONERS HAVE GRADUATED AND THEN BECOME EMPLOYED

  • AT LONG BEACH MEMORIAL.

  • IN FACT, THERE ARE THOUSANDS OF STUDENTS ANNUALLY

  • WHO ARE TRAINED AT OUR THREE HOSPITALS.

  • ADDITIONALLY, OF COURSE, AND WHAT WE'RE REALLY WELL-KNOWN

  • FOR AS A PROVIDER OF HEALTH CARE,

  • MORE THAN 120,000 PATIENTS COME TO US

  • TO OUR TWO EMERGENCY DEPARTMENTS AT COMMUNITY HOSPITAL

  • AND AT LONG BEACH MILLER CHILDREN'S.

  • MORE THAN 350,000 PATIENTS ARE CARED FOR ANNUALLY EITHER

  • AS INPATIENTS OR AS OUTPATIENTS.

  • AND ALMOST 6,000 BABIES ARE BORN TO US.

  • AND I WOULD REMISS TO NOT ACKNOWLEDGE

  • THAT WE ARE EXTRAORDINARILY FORTUNATE

  • IN THE GREATER LONG BEACH AREA

  • AND WHILE I'M REPRESENTING THREE LARGE HOSPITALS

  • IN THE HEALTH SYSTEM.

  • WE ARE QUITE FORTUNATE TO HAVE AMONGST THE VERY BEST HEALTH

  • CARE PROVIDERS IN THE GREATER LONG BEACH AREA.

  • OF COURSE, WE HAVE FOLKS HERE FROM MOLINA

  • WHO SERVED THE UNDERSERVED POPULATION IT HAVE FOR DECADES,

  • CERTAINLY SCAN HEALTH PLAN WHO SERVE SENIORS.

  • MANY OTHER ARE NOT-FOR-PROFIT CLINIC--

  • CLINICALLY-ORIENTED FEDERAL QUALIFIED HEALTH CARE CLINICS

  • LIKE THE CHILDREN'S CLINIC, COMMUNITY CLINICS,

  • CERTAINLY ST. MARY MEDICAL CENTER, NUMBER OF OTHERS,

  • AND OF COURSE OUR OWN PUBLIC HEALTH DEPARTMENT.

  • AND WE'RE ONE OF THE FORTUNATE CITIES

  • THAT HAS OUR OWN CITY-LED PUBLIC HEALTH DEPARTMENT.

  • SO, WE'RE QUITE FORTUNATE IN THE GREATER LONG BEACH

  • TO HAVE AN EXTRAORDINARY WEALTH OF HEALTHCARE RESOURCES.

  • AND I THINK IT REALLY BODES WELL.

  • AND THE REASON I'M PURPOSELY AND INTENTIONALLY EMPHASIZING

  • THAT IS THAT, OF COURSE WE KNOW THAT THROUGH THE CHANGES,

  • THE TRANSFORMATION THAT ARE UNDERWAY

  • THROUGH THE AFFORDABLE CARE ACT.

  • OUR NEXT SEVERAL YEARS IN DECADES WILL BE TUMULTUOUS

  • AT BEST, MESSY AT BEST.

  • BUT WE'RE IN GOOD HANDS IN THE GREATER LONG BEACH AREA.

  • AND THE ABILITY TO INSURE THE HEALTH AND WELLBEING BOTH

  • FOR OUR EMPLOYEES, FOR OUR CITIZENS AND FOR CHILDREN

  • WHO BECOME FUTURE EMPLOYEES IS APPARENT NOT IMPORTANCE.

  • SO, OF COURSE, OUR HOSPITALS ARE NOT-FOR-PROFIT,

  • LONGSTANDING PROVIDERS OF CARE,

  • EDUCATORS OF NEXT GENERATION PROVIDERS AND OF COURSE,

  • VERY STRONG EMPLOYERS.

  • WE ARE PROUD TO BE NOT-FOR-PROFIT

  • BECAUSE HOW WE VIEW THAT MISSION IS THAT WE'RE HERE

  • TO SERVE EVERYONE IN THE GREATER LONG BEACH AREA REGARDLESS

  • OF COURSE OF AGE, GENDER, ETHNICITY,

  • RELIGIOUS AFFILIATION,

  • AND REALLY MOST IMPORTANTLY, ABILITY TO PAY.

  • SO, EVERYONE IN THE GREATER LONG BEACH AREA

  • IN THE SENSE IS OUR MEMBER.

  • AND SO, THE PROGRAMS AND SERVICES

  • THAT WE DESIGN ARE PURPOSEFUL IN ENCOMPASSING ALL PEOPLE

  • IN THE GREATER LONG BEACH AREA.

  • AND YOU'LL NOTICE THAT I EMPHASIZE PEOPLE,

  • BECAUSE WE USED TO TALK A LOT ABOUT PATIENTS AND WE STILL DO.

  • WE'RE HERE TO CARE FOR PEOPLE WHEN THEY'RE ILL.

  • BUT WE'RE REALLY HIGHLY FOCUSED

  • ON ALL PEOPLE LONG BEFORE THEY BECOME PATIENTS.

  • AND IT'S EVIDENCED IN THE VIDEO, THE IDEA OF PROVIDING CARE

  • AND TREATMENT BEFORE PEOPLE BECAME PATIENTS,

  • IMPROVING HEALTH AND WELLNESS IS A RADICAL TRANSFORMATION

  • IN OUR HEALTHCARE INDUSTRY.

  • NOT JUST FOR OUR REGION, BUT CERTAINLY FOR OUR NATION.

  • AND SO, OF COURSE AS I MENTIONED, WE'RE IN THE MIDST

  • OF UNPRECEDENTED IN MULTIYEAR.

  • IN FACT, I THINK WE'RE ON THE VERGE OF FOUR-YEAR MARK,

  • THE ANNIVERSARY OF THE PASSING OF THE AFFORDABLE CARE ACT.

  • AND, IT WILL TAKE MANY DECADES

  • TO LITERALLY TRANSFORM OUR HEALTH CARE DELIVERY SYSTEM

  • IN OUR NATION.

  • AND WHY WAS THE TRANSFORMATION NECESSARY?

  • WHY WAS THE AFFORDABLE CARE ACT OR SOMETHING LIKE IT NECESSARY?

  • AND I THINK IF WE RECALL BACK IN 2008, 2009, THERE WAS AN AMAZING

  • AND MASSIVE COLLISION OF TWO FACTORS

  • THAT REALLY NECESSITATES AN URGENT TRANSFORMATION

  • OF OUR HEALTH CARE DELIVERY SYSTEM.

  • AND THE ONE WAS THE RAPID RISING COST OF HEALTH CARE.

  • AND I MEAN COST OF HEALTH CARE.

  • WE HAD GROWN EXPONENTIALLY IN THIS NATION, LARGELY DUE TO COST

  • OF TECHNOLOGY, PHARMACEUTICALS, LONGEVITY,

  • CERTAINLY THE INCREASE THE NUMBER OF CHRONIC DISEASES

  • THAT OUR CITIZENS NOW HAVE, THE IMPACT ON CHILDHOOD OBESITY

  • AND OBESITY LATER IN LIFE.

  • CERTAINLY DEFENSIVE MEDICINE PLAYED A PART.

  • AND DIRECT TO CONSUMER MARKETING.

  • MANY OF US WANT TO BE CHOOSING OUR HEALTH CARE

  • AND HAVE THE RIGHT TO CHOOSE OUR HEALTH CARE.

  • ALL OF THOSE FACTORS COMBINED WITH A MECHANISM

  • FOR REIMBURSEMENT IS KNOWN AS FEE-FOR-SERVICE MEDICINE,

  • SO BEING PAID FOR VOLUME.

  • BEING PAID FOR THE NUMBER OF PRESCRIPTIONS FILLED,

  • THE NUMBER OF PROCEDURES DONE, THE NUMBER OF SURGERIES DONE,

  • THE NUMBER OF TIMES A PATIENT VISITS THE DOCTOR OR IS ADMITTED

  • TO A HOSPITAL,

  • THAT FEE-FOR-SERVICE REIMBURSEMENT MECHANISM

  • THAT EXISTED PREVIOUSLY.

  • AND ALL OF THOSE OTHER FACTORS COMBINED TO ESCALATE THE COST

  • OF HEALTH CARE TO DOUBLE WHAT OTHER DEVELOPED COUNTRIES HAD

  • BEEN SPENDING.

  • SO, IN OUR COUNTRY, WE SPEND ABOUT 8,500 DOLLARS PER PERSON,

  • WHICH IS MORE THAN TWICE WHAT OTHER DEVELOPED NATIONS SPEND

  • FOR A HEALTH CARE.

  • IT IS AN EXTRAORDINARILY LARGE PART

  • OF OUR NATION'S ECONOMIC ENGINE AT 18 PERCENT OF OUR GDP.

  • OTHER COUNTRIES SPEND ABOUT HALF AS MUCH AS I MENTIONED.

  • AND HAVE ABOUT THE SAME OUTCOMES.

  • AND ONE WOULD SAY, "WELL, WHY WOULD THAT BE?"

  • BECAUSE WE KNOW THAT WE HAVE AN EXTRAORDINARY HEALTH CARE SYSTEM

  • IN THIS NATION, AND BECAUSE

  • OF THE TECHNOLOGIES THAT I'VE MENTIONED.

  • BECAUSE OF THE ADVANCES IN PHARMACEUTICALS,

  • BECAUSE OF OUR INNOVATION IN HEALTHCARE

  • WHICH HAS BEEN A DRIVER FOR OUR ECONOMIC ENGINE,

  • BUT HAS ALSO LED TO INCREASE COST.

  • BUT OUR NATION HAS BEEN FOCUSED ON DIAGNOSIS,

  • TREATMENT, AND HEALING.

  • AND WE'VE DONE THAT AMAZINGLY WELL.

  • BUT WHAT WE HAVE NOT FOCUSED

  • ON IN THIS NATION IS PREVENTION AND WELLNESS.

  • NOT ON IMPROVING THE POPULATION, THE HEALTH OF OUR POPULATION

  • AND IMBEDDING IN REIMBURSEMENT, IDEAS OF IMPROVING HEALTH

  • AND WELLNESS FOR OUR CITIZENS.

  • NOW, THAT'S CHANGING, AND WE'RE IN THE MIDST OF THAT CHANGE.

  • BUT THAT WAS ONE OF THE LARGE TORNADOES THAT HIT IN 2008,

  • THIS RAPID RISE OF HEALTHCARE COST.

  • BUT NO LONGER COULD WE ALL AFFORD.

  • NO LONGER COULD THE GOVERNMENT WHICH FUNDS ABOUT 75 PERCENT

  • OF THE PATIENT CARE VISITS IN OUR COUNTRY.

  • NO LONGER COULD THE GOVERNMENT IN THE FORM OF MEDICARE

  • AND MEDICAID AFFORD TO KEEP PACE WITH THAT RISING COST.

  • SECONDARILY, ON THE OTHER TORNADO THAT HIT AND COLLIDED

  • AT VERY MUCH THE SAME TIME WAS THE GREAT RECESSION.

  • SO, NO LONGER COULD EMPLOYERS

  • AND EMPLOYEES AFFORD THE DOUBLE DIGIT INCREASES

  • IN PREMIUMS FOR HEALTH CARE.

  • UP TO THAT POINT, PRIVATE INSURANCE, PPO, HMO,

  • COMMERCIAL INSURANCE HAD EFFECTIVELY BEEN INTERNALLY

  • SUBSIDIZING THE COST OF HEALTH CARE THAT WAS UNDERFUNDED

  • BY THE FEDERAL GOVERNMENT.

  • SO, WHEN THOSE TWO ELEMENTS COLLIDED,

  • TRANSFORMATION WAS NECESSARY.

  • AND WITHOUT A DOUBT, SOMETHING NEEDED TO CHANGE.

  • AND SO, THAT'S WHAT HAPPENED WITH THE AFFORDABLE CARE ACT

  • IN MOVING TOWARD THIS IDEA OF CARING FOR THE HEALTH

  • OF POPULATION AND OF MERGING THREE FACTORS.

  • ONE, IMPROVING ACCESS, SO THAT ALL CITIZENS HAD ACCESS

  • TO AFFORDABLE INSURANCE, AFFORDABLE HEALTH CARE.

  • THE SECOND, BEING IMPROVING QUALITY AND THE PRIMARY DRIVER

  • OF IMPROVING QUALITY THAT I'LL SPEAK TO IS IMPROVING THE HEALTH

  • OF THE POPULATION IS HELPING TO PREVENT PEOPLE FROM BECOMING

  • OR HAVING TO BECOME ACTUAL PATIENTS

  • IN THE ACUTE CARE SETTING.

  • AND THEN THE THIRD ASPECT OF COURSE IS DECREASING COST,

  • BUT AS I HAD MENTIONED, HEALTH CARE REPRESENTS

  • ABOUT 18 PERCENT OF OUR GDP.

  • AND SO EFFECTIVELY, THIS MASSIVE INDUSTRY CANNOT BE

  • TRANSFORMED OVERNIGHT.

  • SO, WHILE WE MAY REALIZE

  • THAT AMAZING TRANSFORMATION MUST OCCUR, IT CAN'T OCCUR OVERNIGHT.

  • IT WILL TAKE DECADES, IN FACT I'VE OFTEN SAID,

  • THAT WE'LL LIKELY TAKE THE REST OF MY CAREER LIFETIME

  • TO AFFECT THE FULL IMPACT OF THE AFFORDABLE CARE ACT

  • AND ITS CHANGES, BECAUSE IN EFFECT,

  • IT IS THE PROVERBIAL GORDIAN KNOT.

  • IT'S NOT HEALTH CARE INDUSTRY, IT'S NOT SOMETHING

  • THAT CAN BE SIMPLY SEVERED NOR CAN YOU PULL ONE THREAD.

  • YOU MUST IMPROVE ACCESS.

  • YOU MUST IMPROVE QUALITY, THE POPULATION OF THE HEALTH.

  • AND YOU MUST DECREASE COST ESSENTIALLY ALL

  • AT THE SAME TIME.

  • AND WHEN I SAY, ALL AT THE SAME TIME,

  • I MEAN OVER A 10-YEAR PERIOD.

  • AND THAT'S EXACTLY WHAT HAS HAPPENED AND WHAT HAS BEGAN

  • TO HAPPEN AND WHAT WILL HAPPEN.

  • SO, I SPEND JUST A COUPLE MINUTES

  • ON EACH OF THOSE ELEMENTS.

  • SO, TALKING ABOUT ACCESS AND GETTING DOWN TO THE DATA.

  • IN LA COUNTY ALONE, IT'S ESTIMATED THAT PRIOR

  • TO THE IMPLEMENTATION OF THE EXCHANGES

  • AND THE EXPANSION OF MEDICAID.

  • ABOUT 1.6 MILLION PEOPLE WERE UNINSURED.

  • AND ABOUT HALF OF THE 1.6 MILLION WERE UNINSURED

  • AND WERE ELIGIBLE FOR THE EXCHANGES.

  • AND AS HEATHER MENTIONED, IN CALIFORNIA

  • ABOUT A MILLION PEOPLE HAVE ALREADY SIGNED

  • UP THROUGH THE EXCHANGES.

  • THERE ARE ANOTHER MILLION THAT ARE IN THE APPLICATION PROCESS.

  • AND WE EXPECT BY THE END OF MARCH TO HAVE CLOSE

  • TO THREE MILLION PEOPLE IN CALIFORNIA ENROLLED

  • THROUGH THE EXCHANGES.

  • BUT WHAT MAY NOT ALSO BE KNOWN THE OTHER PART

  • OF THE AFFORDABLE CARE ACT

  • AND THROUGH CALIFORNIA IS THE EXPANSION

  • OF MEDICAID ELIGIBILITY.

  • SO, IN JULY 1ST, 2013, THE ELIGIBILITY REQUIREMENTS

  • OR CRITERIA FOR MEDICAID,

  • MEDI-CAL IN CALIFORNIA WERE EXPANDED.

  • AND ABOUT HALF OF THE 1.6 MILLION PEOPLE THAT I MENTIONED

  • IN LA COUNTY ARE AND WERE ELIGIBLE

  • FOR THAT EXPANDED MEDICAID.

  • AND WE'VE ALREADY BEGAN TO SEE ENROLMENT IN MEDI-CAL INCREASE.

  • AND WE'VE ALREADY BEGAN TO SEE THE NUMBER OF PEOPLE WHO COME

  • TO OUR HOSPITALS THROUGH OUR EMERGENCY DEPARTMENTS

  • WHO ARE UNINSURED BUT WHO NOW QUALIFY FOR MEDI-CAL.

  • ALMOST THE DIRECT CORRELATION, INVERSED CORRELATION

  • IN A VERY POSITIVE MEASURE FOR US FINANCIALLY,

  • BUT MORE IMPORTANTLY FOR PEOPLE WHO NOW COME TO US

  • AND CAN BE MATCHED WITH A MEDICAL HOME.

  • SO, OF THE ABOUT 11,000 EMERGENCY DEPARTMENT VISITS

  • THAT WE HAVE AT LONG BEACH MEMORIAL, MILLER CHILDREN'S,

  • AND I KNOW THAT THESE STATISTICS ARE SIMILAR

  • FOR ST. MARY'S MEDICAL CENTER AS WELL.

  • ABOUT 2,500 PEOPLE PER MONTH OUT OF THE 11,000 COME

  • TO HAS UTILIZING THE EMERGENCY DEPARTMENT

  • BECAUSE THEY DON'T HAVE A MEDICAL HOME.

  • BECAUSE THEY'RE--

  • CANNOT CONNECTED WITH AN OUTPATIENT PHYSICIAN

  • OR PRIMARY CARE PHYSICIAN.

  • SO, WHAT'S NICE ABOUT THE EXPANSION OF MEDICAID

  • WHEN PATIENTS COME TO US AT THE EMERGENCY DEPARTMENT,

  • WE CAN MATCH THEM WITH A MEDICAL HOME.

  • WE CAN MATCH THEM TO AN OUTPATIENT PROVIDER.

  • SO, THAT THEY CAN RECEIVE CARE

  • IN A VERY APPROPRIATE SETTING INSTEAD

  • OF UTILIZING THE EMERGENCY, THE HIGH-COST EMERGENCY DEPARTMENT,

  • BUT ALSO IMPORTANTLY FOR THEM THE IMPROVEMENT OF THEIR HEALTH

  • AND WELLBEING FOR THEIR FUTURE AND FOR THEIR FAMILY'S FUTURE.

  • SO, WE LOOK AT THE NUMBER OF UNINSURED AND CAREFULLY

  • AND CLOSELY TRACK, WE DON'T HAVE AS GOOD A DATA FOR THOSE PEOPLE

  • WHO HAVE ENROLLED THROUGH THE EXCHANGES AS HEATHER MENTIONED,

  • WE'LL CLOSE OUT THE ENROLLMENT AT THE END OF THIS MONTH.

  • AND BY MIDDLE OF APRIL,

  • IT SHOULD HAVE SOME REALLY SOLID DATA.

  • AND HEATHER MENTIONED THAT IT'S REALLY CRITICAL

  • BECAUSE WE AREN'T SURE YET WHETHER PEOPLE ARE MOVING

  • FROM ONE INSURANCE PRODUCT TO ANOTHER WITHIN THE EXCHANGE

  • OR THEY WERE PREVIOUSLY, COMPLETELY UNINSURED

  • AND NOW JOINING THE EXCHANGE.

  • WE'RE BEGINNING TO SEE A LITTLE BIT OF BOTH

  • AT THIS TIME IN OUR HOSPITALS.

  • THE SECOND AND I MENTIONED THIS BRIEFLY IS THE VENUE OF CARE.

  • I MENTIONED OUR EMERGENCY DEPARTMENTS

  • IN ACUTE CARE SETTINGS.

  • WE ARE ALSO WORKING VERY CLOSELY WITH OUR COMMUNITY PARTNERS

  • AND WITH OUR OWN ORGANIZATION TO EXPAND ACCESS FOR CARE

  • IN OUTPATIENT SETTINGS SO THAT PEOPLE HAVE ACCESS TO CARE

  • FOR PREVENTION AND WELLNESS AND A FOCUS ON PREVENTION

  • AND WELLNESS BEFORE NEEDING TO COME TO THE HOSPITAL

  • FOR ACUTE CARE EPISODE.

  • SO, CONTINUE TO SEE THE GROWTH IF YOU WILL BOTH FOR EMPLOYMENT

  • BUT IN NUMBER OF VISITS AND NUMBER OF CARE SITES

  • IN OUR GREATER LONG BEACH AREA IN THE OUTPATIENT ARENA.

  • AND THEN THE THIRD ASPECT OF ACCESS IS RELATED

  • TO THE ELECTRONIC HEALTH RECORD ASPECT

  • OF THE AFFORDABLE CARE ACT.

  • ABOUT NOW MORE THAN HALF HOSPITALS

  • IN THE NATION HAVE ELECTRONIC HEALTH RECORDS.

  • AND ABOUT HALF OF THE MEDICAL GROUPS

  • AND PHYSICIAN OFFICES HAVE ACCESS AND FULL CONNECTIVITY

  • FROM ELECTRONIC PERSPECTIVE.

  • VERY SOON, 100 PERCENT IN THE NATION WILL BE

  • ON ELECTRONIC MEDICAL RECORDS.

  • FORTUNATELY IN GREATER LONG BEACH, THE HOSPITALS

  • AND HEALTH CARE PROVIDERS ARE ALL VERY WELL CONNECTED

  • AND REALLY LED THE WAY IN OUR NATION FOR CONNECTIVITY.

  • THAT WILL BECOME A VERY IMPORTANT ONE FOR REDUCING COST

  • BUT ALSO IMPROVING QUALITY BECAUSE OF THE ABILITY

  • OF CAREGIVERS TO COMMUNICATE WELL WITH ONE ANOTHER ESPECIALLY

  • IF THEY'RE IN DIFFERENT ORGANIZATIONS ON AND FOR

  • ON BEHALF OF THAT PATIENT, AND SO THAT WE

  • AS PATIENTS HAVE ACCESS TO OUR OWN INFORMATION AS WELL.

  • THE OTHER PART OF THE ELECTRONIC HEALTH RECORD AND THE IMPORTANCE

  • OF THAT IS IT GIVES FROM A SCIENTIFIC PERSPECTIVE ACCESS

  • TO AN AMAZING AMOUNT OF DATA.

  • AND AGGREGATED CAN REALLY SET THE TONE FOR THE FUTURE

  • OF HOW WE MAKE DECISIONS FROM A DIAGNOSIS PERSPECTIVE

  • OR FROM A PREVENTION AND WELLNESS PERSPECTIVE.

  • SO, THAT DATA MINING WILL BE INCREDIBLY IMPORTANT.

  • AND SO, WATCH OVER THE NEXT COMING YEARS

  • TO SEE THE PROLIFERATION OF DATA THAT COMES

  • THAT A SCIENTIFICALLY BASED FROM ELECTRONIC HEALTH RECORDS.

  • THE SECOND ASPECT THAT I MENTIONED

  • ABOUT THE AFFORDABLE CARE ACT IS THE QUALITY.

  • AND SPECIFICALLY, AND OF COURSE WE'RE ALWAYS INTERESTED

  • IN IMPROVING QUALITY AROUND ERRORS AND OUTCOMES,

  • BEST PRACTICES, ET CETERA.

  • AND THOSE HAVE LONG BEEN UNDERWAY

  • IN HEALTH CARE ORGANIZATIONS.

  • BUT WHAT'S NEW IS REALLY FOCUSED ON THE HEALTH OF THE POPULATION.

  • AND IMPLEMENTING AND DESIGNING AND THEN MEASURING THE IMPACT

  • OF PROGRAMS THAT IMPROVE THE HEATH OF OUR POPULATION, IMPROVE

  • AND INSURE PREVENTION AND WELLNESS,

  • INCLUDING MORE EMPLOYERS IMPLEMENTING PROGRAMS

  • FOR HEALTH AND WELLNESS.

  • AND YOU'VE SEEN THIS ACROSS OUR COUNTRY AND CERTAINLY

  • IN OUR REGION, MANY MORE EMPLOYERS DIRECTLY IMPLEMENTING

  • PROGRAMS TO IMPROVE THEIR OWN EMPLOYEES' HEALTH AND WELLNESS.

  • AND THEN THE THIRD ASPECT REALLY LOOKING

  • AT COST AND DECREASING COST.

  • AND SO, THROUGH IMPROVING ACCESS

  • IN CREATING AN AMAZING COMPETITIVE ENVIRONMENT

  • THROUGH THE EXCHANGES, MANY PEOPLE SAY THAT WELL,

  • THE GOVERNMENT IS NOW RUNNING INSURANCE.

  • I CAN ASSURE YOU THE STATE

  • OF CALIFORNIA FRANKLY HAS NO INTEREST

  • IN BEING IN INSURANCE PLAN.

  • IN FACT, THEY'RE ACTIVELY LOOKING TO REDUCE

  • AND REMOVE THEMSELVES AS THE INSURER.

  • IT'S SAFE TO SAY THOUGH IN THIS COUNTRY RIGHT NOW

  • THROUGH MEDICARE AND THROUGH MEDI-CAL, THE VAST NUMBER

  • OF OUR PATIENTS CURRENTLY ARE COVERED

  • BY GOVERNMENT-SPONSORED PLANS.

  • WE HAVE SEEN IN THE LAST 18 MONTHS A SLIGHT RISE

  • IN THE EMPLOYER-SPONSORED PLANS.

  • AND WE'VE SEEN THAT THE COST

  • OF THOSE EMPLOYER-SPONSORED PLANS HAS ONLY GROWN 4

  • AND A HALF PERCENT.

  • NOW, IT'S AMAZING FOR ME TO BE SAYING, ONLY GROWN 4

  • AND A HALF PERCENT AND CELEBRATING THE IDEA

  • THAT THE COST OF PREMIUMS INCREASING

  • ABOVE CPI IS SOMETHING TO CELEBRATE.

  • BUT YOU'LL RECALL THAT IN PREVIOUS YEARS,

  • THE COST OF PREMIUMS HAD BEEN EASILY IN THE DOUBLE DIGITS.

  • SO, WE ARE SEEING A DECREASE IN THE INCREASE IN PREMIUMS.

  • AND WE EXPECT BECAUSE OF THE EXCHANGES,

  • BECAUSE OF THE INCREASED COMPETITIVE ENVIRONMENT,

  • WE EXPECT THAT TO CONTINUE.

  • SO, THE PRESSURE ON COST WHILE IMPROVING AND MAINTAINING ACCESS

  • AND QUALITY IS AS PARAMOUNT.

  • WE ARE ALREADY SEEING THAT AND THAT OCCUR IN THIS NATION.

  • SO, I WOULD CLOSE WITH SAYING THAT WE CERTAINLY AND REFLECTING

  • FOR ALL OF YOU FROM AN ECONOMIC DEVELOPMENT PERSPECTIVE.

  • THREE KEY AREAS THAT WE WILL CONTINUE TO MONITOR AND MEASURE

  • AND DISPLAY DATA AS WE MOVE FORWARD

  • AS THE AFFORDABLE CARE ACT

  • AND ITS IMPLEMENTATION BECOMES MORE MATURE.

  • ONE IS OF COURSE ON THE IMPACT ON EMPLOYERS AND EMPLOYEES.

  • SO, DO EMPLOYERS AS THE EMPLOYER MANDATE,

  • WE ALL KNOW HAS BEEN MOVED BACK TO 2015,

  • DOES THAT COST ANY SHIFT IN NUMBER OF COMPANIES

  • THAT CONTINUE TO SPONSOR

  • OR OFFER EMPLOYER-SPONSORED HEALTH PLANS?

  • I THINK THE PREDICTION AT THIS POINT IS LIKELY NOT,

  • BUT POSSIBLE, SECONDLY IS JOB DEVELOPMENT.

  • AND AS HEATHER MENTIONED, OF COURSE HEALTH CARE

  • IN THIS REGION IS A MASSIVE ENGINE.

  • AND US AS AN EDUCATOR, AS WE LOOK FORWARD AND PROJECT

  • INTO THE FUTURE, WE SEE THAT THE GROWTH OVERALL

  • FOR JOBS WILL HAVE A SLIGHT INCREASE.

  • BUT WE EXPECT THAT THE SHIFT IN KINDS

  • OF PROVIDERS WILL CHANGE DRAMATICALLY.

  • WE WILL EDUCATE MANY MORE PRIMARY CARE PROVIDERS,

  • NURSE PRACTITIONERS, CLINICAL PHARMACIST AND OTHER CAREGIVERS

  • WHO WORK IN OUTPATIENT AND AMBULATORY SETTINGS.

  • AND THOSE CAREGIVERS WHO REMAIN A SPECIALIST WITHIN A HOSPITAL,

  • THEIR DEGREE OF SPECIALIZATION WILL CONTINUE

  • WITHIN THE HOSPITAL BECAUSE THE ACUITY, THE SEVERITY OF ILLNESS

  • FOR PEOPLE WHO ARE SEEN

  • IN THE HOSPITAL NOW HAS RISEN DRAMATICALLY.

  • AND THEN THIRD IS THE OVERALL HEALTH OF OUR POPULATION

  • AND MEASURING ELEMENTS LIKE CHILDHOOD OBESITY.

  • LIKE NUMBER OF DAYS LOST AT WORK BECAUSE OF ILLNESS.

  • AND SO, FOCUSING ON THOSE KEY DATA ELEMENTS WILL BE IMPORTANT

  • FOR OUR FUTURE.

  • I THINK FOR US AS A COMMUNITY WHEN WE THINK

  • OF POPULATION HEALTH AND HEALTH OF THE COMMUNITY,

  • WE THINK PRIMARILY ON BENDING THE CURVE OF CHILDHOOD OBESITY.

  • WE SAW SOME PRELIMINARY DATA THAT WAS PRODUCED A COUPLE

  • OF WEEKS AGO IN THE LA TIMES AND A NUMBER

  • OF OTHER JOURNALS INDICATING A SHARP DECREASE

  • IN CHILDHOOD OBESITY.

  • AND FOR CHILDREN YEARS OF AGE TWO TO FIVE, SUBSEQUENT ANALYSIS

  • OF THAT STUDY HAS REALLY DISPELLED THAT--

  • THAT WAS, IT WAS A SMALL SAMPLE SIZE.

  • AND SO, I THINK THAT WE MUST AS A COMMUNITY CONTINUE TO FOCUS

  • ON PROGRAMS THAT DECREASE OBESITY IN CHILDREN.

  • AND THEN SECONDLY IS LOOKING AT END OF LIFE,

  • INSURING THAT WE ALL TAKE RESPONSIBILITY

  • FOR MAKING DECISIONS FOR END OF LIFE FOR OURSELVES

  • AND FOR OUR FAMILIES AND FOR OUR PARENTS.

  • SO, I WILL CLOSE ON THAT, THANK YOU VERY MUCH

  • FOR THE OPPORTUNITY TO BE HERE, IT'S A PLEASURE.

  • [ APPLAUSE ]

  • >> OH, GOOD MORNING, THANK YOU VERY MUCH FOR HAVING ME HERE.

  • YOU KNOW, AS I WAS WALKING UP THE STAIRS TODAY

  • AND I ALWAYS HAVE THIS SAME THOUGHT IN THE MORNING.

  • WE ALL HAVE THE PRIVILEGE OF LIVING

  • IN THE MOST WONDERFUL COUNTRY ON THE FACE OF PLANET

  • THAT HAS THE MOST CAPABLE AIR TRANSPORTATION SYSTEM

  • ON THE GLOBE.

  • I CAN'T SPEAK ABOUT LONG BEACH AIRPORT

  • WITHOUT ACTUALLY TYING IT TO THE ENTIRE GRID.

  • IT'S BECOME SO MUCH PART OF OUR ECONOMY AND SO MUCH PART

  • OF OUR LIVES THAT YOU CAN'T DISENGAGE FROM IT.

  • YOU KNOW, WE COULD TRAVEL

  • ACROSS COUNTRY NOWADAYS IN A MATTER OF HOURS.

  • WE DON'T THINK ABOUT IT VERY DEEPLY.

  • BUT WE COULD TRAVEL ACROSS THE COUNTRY, SIT IN THE CHAIR,

  • WORK ON YOUR COMPUTER THROUGH WI-FI, WATCH A MOVIE,

  • AND BOOK ALL OF THIS IN A MATTER OF MINUTES ON YOUR IPHONE.

  • AND IT'S BECOME SO COMMON PLACE THAT WE FORGET

  • THAT WE'RE ACTUALLY IN SITTING INSIDE, WHAT IS IT?

  • ESSENTIALLY A 300-TON ROCKET FLYING

  • TO THE SKY ACROSS THE COUNTRY.

  • IT REALLY IS A MARVELOUS SYSTEM.

  • I MAY SHOW YOU A LITTLE BIT

  • OF HOW THIS SYSTEM LOOKS ABOVE YOUR HEAD.

  • THAT'S WHAT YOUR NATION LOOKS AT ANY GIVEN TIME,

  • THAT'S A SNAPSHOT IN TIME OF YOUR TRAFFIC CONTROL SYSTEM.

  • THERE'S OVER THREE--

  • THIS COUNTRY MOVES OVER THREE QUARTERS OF A BILLION PEOPLE

  • ACROSS THE NATION FROM STATE TO STATE EACH YEAR,

  • HUNDREDS OF THOUSANDS OF TONS OF CARGO, OBVIOUSLY DIFFERENT CARGO

  • THAN THE PORTS RECEIVE.

  • BUT IT'S AN ESSENTIAL PART OF EVERY ASPECT OF OUR LIVES,

  • EVERYTHING FROM THE SERVICE INDUSTRY,

  • ALL THE WAY TO ON DEMAND MANUFACTURING

  • AND IT IS SOMETHING THAT IS INCREDIBLY POWERFUL.

  • AND THIS COUNTRY WOULD NOT BE THIS COUNTRY WITHOUT THE SYSTEM.

  • AND TO THINK ABOUT IT ALL STARTED, YOU KNOW, AS AN ODDITY,

  • BACK ABOUT 100 YEARS AGO.

  • THERE'S A COUPLE OF GENTLEMEN THAT COME TO MIND,

  • ONE IS CAL RODGERS THAT ACTUALLY EXECUTED THE FIRST CROSS

  • COUNTRY FLIGHT.

  • HE BOUGHT WRIGHT FLYER FROM THE WRIGHT BROTHERS AND CAME

  • ACROSS COUNTRIES, LANDED HERE IN THE LONG BEACH ACTUALLY CRASH

  • ABOUT 17 TIMES ALONG THE WAY.

  • AND EVENTUALLY MADE IT HERE AND IT WAS AN ODDITY.

  • THEN THERE WAS ANOTHER GUY CALLED, CALLED TONY JANNUS

  • THAT STARTED WHAT IN ESSENCE IS THE FIRST AIRLINE.

  • FLYING PEOPLE, FERRYING PEOPLE ACROSS TAMPA BAY AND FLORIDA

  • WHICH IS A DISTANCE OF ABOUT HERE TO NAPLES ISLAND,

  • WHICH IS AN AMAZING FEET AT THAT TIME.

  • AND FROM THEN ON, IT'S TRANSFORMED TO BEING PART OF--

  • PART OF WHAT MAKES THIS COUNTRY INCREDIBLE.

  • NOW, THE NEXT SLIDE IS JUST THE NETWORK OF ONE AIRLINE.

  • THIS IS HOW WE MOVE ACROSS THE COUNTRY.

  • BY THE WAY, THIS IS DELTA AIRLINES AND WE BRING FEET

  • INTO DELTA AIRLINES THROUGH THEIR HUB IN SALT LAKE CITY.

  • SO, FROM THERE, WITHIN ONE HOP, YOU'RE ONE HOP AWAY FROM MOST

  • OF THE COUNTRY AND MOST OF THE WORLD.

  • SO, IT REALLY IS A POWERFUL-- WE DON'T THINK ABOUT IT BECAUSE WE,

  • WHEN WE TRAVEL, WE JUST TRAVEL FROM POINT A TO POINT B.

  • BUT THIS IS ONE AIRLINE.

  • AND, YOU KNOW, THERE'S AN OLD SAYING AND I'M NOT SURE

  • IF IT'S A CURSE OR A BLESSING, IT SAYS,

  • MAY YOU LIVE IN INTERESTING TIMES.

  • LIKE IT OR NOT-- WHETHER I LIKE IT NOT,

  • MY INDUSTRY IS ALWAYS CHANGING.

  • IT'S BEEN A DECADE SINCE WE HAD A PLETHORA OF AIRLINES

  • AND IN THE LAST DECADE WE'VE MANAGE

  • OR THE AIRLINES HAVE MANAGED TO CONSOLIDATE

  • TO ABOUT FOUR MEGA AIRLINES.

  • UNITED, DELTA, SOUTHWEST, AND AMERICAN AIRLINES.

  • WHEN THE AMERICAN AIRLINES AND US MERGER FINISHES,

  • FOUR MEGA AIRLINES WILL CONTROL ABOUT 85 PERCENT

  • OF THE DOMESTIC MARKET SHARE,

  • AND EACH AIRLINE TOWARDS ANY OTHER AIRLINE

  • IN THE FACE OF THE PLANET.

  • NOW, WHAT THAT MEANS IS THAT AS THE SOLIDIFY WHAT THAT MEANS

  • TO US IN LONG BEACH AND US AS CONSUMERS, AS THEY SOLIDIFY,

  • THEY BECOME STRONGER, THEY BECOME MORE EFFICIENT,

  • THEY BECOME MORE SOLVENT.

  • SO, IF YOU HAVE AIRLINE STOCK, GOOD FOR YOU.

  • YOU PROBABLY WON'T SEE ANOTHER BANKRUPTCY IN THE NEAR FUTURE.

  • NOW, IF YOU FLY, PRICES ARE GOING UP

  • AND THEY WILL CONTINUE TO GO UP.

  • AND THE AMOUNT OF SEEDS IN THE MARKET WILL CONTINUE TO GO DOWN.

  • THE AIRLINES, THE LARGER AIRLINES ARE RETRENCHING

  • IN LARGER MARKETS.

  • IN OTHER WORDS, THEY'RE LEAVING THE SMALLER MARKETS A LITTLE IT

  • AND RETRENCHING IN THE LARGER MARKETS IELAX

  • BECAUSE THERE IS EFFICIENCY IN THAT SORT OF CONSOLIDATION.

  • FOR THE TIME BEING, WE CAN PROBABLY PREDICT IN OUR INDUSTRY

  • THAT ALTHOUGH THERE'S A LIQUIDITY IN THE MARKET,

  • THERE DOESN'T SEEM TO BE A LOT OF STOMACH IN THE MARKET

  • FOR A STARTUP AIRLINES.

  • SO, YOU WILL NOT SEE LIKE A NEW SOUTHWEST ATTACKS

  • AND STARTING THE SOUTHWEST AIRLINES ANYTIME SOON.

  • BUT THINGS DO CHANGE.

  • LET ME SHOW YOU-- THIS IS HOW YOUR AIRPORT LOOKS.

  • NOW, THIS IS JUST THE DIRECT DESTINATIONS BUT WE DO TIE

  • INTO THAT GRID THROUGH MULTIPLE HUBS.

  • ONE OF THEM BEING PHOENIX, ONE OF THEM BEING SALT LAKE

  • AND OBVIOUSLY JFK, DALLAS HAS A HUB,

  • ET CETERA, ET CETERA, ET CETERA.

  • SO, YOU COULD TRAVEL ACROSS THE COUNTRY THROUGH THIS AIRPORT.

  • ONE OF THE THINGS THAT IS INTERESTING

  • ABOUT MY CAREER FIELD IS THAT IT'S NOT PREDICTABLE.

  • IF YOU LOOK AT THE AMOUNT OF BANKRUPTCIES AND THE AMOUNT

  • OF AIRLINES THAT HAVE GONE OUT OF BUSINESS AND THE AMOUNT

  • OF CARGO CARRIERS THAT HAVE GONE OUT OF BUSINESS IN MY INDUSTRY,

  • IT TEND-- YOU TEND TO BELIEVE OR LEADS YOU TO BELIEVE

  • THAT IT'S KIND OF UNSTABLE AND UNPREDICTABLE AND ACTUALLY IT IS

  • TO A CERTAIN DEGREE UNSTABLE AND UNPREDICTABLE.

  • SO, IN LIEU OF CRYSTAL BOWLING THINGS, YOUR AIRPORT

  • WHICH IS YOUR AIRPORT BELIEVES THE FINANCIAL TARGETS ARE

  • VERY IMPORTANT.

  • SO, IN THE LAST FIVE YEARS,

  • THE AIRPORT HAS INCREASED ITS NET REVENUES

  • BY ABOUT 50 PERCENT.

  • WE'VE INCREASE OUR NET RESERVES BY ABOUT 35.

  • THAT EQUATES TO AN OPERATIONAL RESERVE OF OVER A YEAR.

  • SO, IN OTHER WORDS, WHATEVER HAPPENS IN THE INDUSTRY

  • AND WE HOPE IT CONTINUES TO GO UP WE CAN OPERATE YOUR AIRPORT

  • FOR OVER A YEAR WITHOUT MISSING A BIT FINANCIALLY.

  • AND THAT'S BECAUSE OF THE INCREDIBLE ECONOMIC IMPACT

  • THAT IT PROVIDES TO THE AREA.

  • LIKE I SAID BEFORE, IT'S A GATEWAY TO THE CITY.

  • AND I-- THIS-- IT WAS WONDERFUL WHEN THE FIRST SPEAKER SAID

  • THAT A GREAT CITY DESERVES A GREAT UNIVERSITY.

  • THIS GREAT CITY DOES HAVE A GREAT UNIVERSITY.

  • BUT IT ALSO DESERVES--

  • [ APPLAUSE ]

  • BUT IT ALSO DESERVES A GREAT GATEWAY.

  • AND RIGHT NOW, WE HAVE A GREAT AIRPORT.

  • THE ORGANIZATION-- THE AIRPORT ORGANIZATION RIGHT NOW IS AN

  • AWARD WINNING ORGANIZATION.

  • WE'VE PICKED UP FOUR AWARDS IN THE LAST YEAR.

  • WE ALSO HAVE STATE-OF-THE-ART WORLD CLASS FACILITIES.

  • AND WE ALSO HAVE EXCEPTIONAL FINANCIAL PERFORMANCE.

  • SO, THE FUTURE IS REALLY LOOKING BRIGHT,

  • ALTHOUGH WE HAVE SOME SADNESS, OBVIOUSLY,

  • THE C-17 PROGRAM IS SLOWLY WANING AND, YOU KNOW,

  • ALL GOOD THINGS MUST COME TO AN END.

  • BUT, BY THE SAME TOKEN, THE GULFSTREAM, THE MANUFACTURING

  • OF GULFSTREAM JETS IS ACTUALLY GOING UP.

  • THERE'S MORE GULFSTREAM JETS BEING PREPARED

  • AT THE LONG BEACH AIRPORT AND FINALIZED

  • AT THE LONG BEACH AIRPORT.

  • LET ME SHOW YOU A LITTLE VIDEO, YOU KNOW,

  • A VIDEO IS WORTH A THOUSAND WORDS I GUESS ON THE ECONOMIC--

  • [ MUSIC ]

  • [ APPLAUSE ]

  • THANK YOU, YOU KNOW, AS PROFESSIONALS

  • AND THE AVIATION PROFESSIONALS, WE'VE PREPARED THE AIRPORT

  • TO BE POISED FOR THE FUTURE.

  • AND WE BELIEVE THE FUTURE IS BRIGHT AND WE'RE THERE

  • AND WE HAVE THE CAPABILITY OF CAPITALIZING

  • ON THAT BRIGHT FUTURE.

  • SO WE, ALTHOUGH WE SEE CHALLENGES IN THE FUTURE,

  • THERE'S ALWAYS CHALLENGES

  • IN THE AVIATION INDUSTRY, THAT DOESN'T CHANGE.

  • EVEN WHEN THE ECONOMY WAS GOOD, THERE WERE AIRLINE BANKRUPTCIES,

  • THERE WAS CHANGES IN AIR SERVICE.

  • WE'RE PREPARED TO DEAL WITH THAT FUTURE,

  • PREPARED TO MITIGATE ANY SORT OF PROBLEMS

  • AND CAPITALIZED IN THE FUTURE.

  • THANK YOU VERY MUCH.

  • [ APPLAUSE ]

  • >> WELL, THANK YOU TO ALL OF OUR PANELISTS

  • FOR SOME VERY INTERESTING VIDEOS

  • AND VERY INFORMATIVE PRESENTATIONS.

  • WE REALLY APPRECIATE ALL THREE OF YOU BEING HERE TODAY.

  • BEFORE WE WRAP UP THE EVENT, I WANT TO OPEN

  • UP TO QUESTIONS FROM YOU.

  • THIS IS YOUR CHANCE, IF YOU HAVE A QUESTION FOR ME OR FOR ONE

  • OF OUR PANELISTS THAT YOU WOULD LIKE TO POST, LET ME JUST--

  • RAISE YOUR HANDS, STAND UP AND I'LL RECOGNIZE SOMEONE.

  • AND THEN YOU CAN POST IT.

  • THIS IS A CHANCE TO BEGIN THE DISCUSSION

  • ABOUT OUR LOCAL ECONOMY, ABOUT THE FUTURE

  • OF THE GREATER LONG BEACH REGION.

  • AND ONCE WE'VE TAKEN SOME QUESTIONS, THEN WE'LL ADJOURN

  • AND YOU CAN CONTINUE THE DISCUSSIONS MORE INFORMALLY.

  • DO I HAVE ANY QUESTIONS FROM THE AUDIENCE?

  • OK, GO AHEAD.

  • >> THIS IS OUR QUESTION FOR--

  • EXCUSE ME, FOR EACH OF THE PANELISTS.

  • >> AND JUST IN CASE YOU COULDN'T HERE THAT IN THE BACK,

  • THE QUESTION IS TO EACH OF THE PANELISTS,

  • WHAT GROWTH OPPORTUNITIES DO YOU SEE

  • IN YOUR INDUSTRY IN LONG BEACH?

  • >> THAT WAS-- SINCE THE PORT WAS MENTIONED FIRST THEN,

  • I CAN RESPOND TO THAT IN-- I CAN GIVE YOU THE LONG ANSWER

  • OR THE SHORT ANSWER SO I'LL GIVE YOU THE SHORT ANSWER.

  • BY FOCUSING ON ONE ASPECT OF HOW WE CAN CAPITALIZED

  • AND LEVERAGE ON GROWTH.

  • SOME OF YOU MAY BE FAMILIAR WITH THE FACT THAT A FEW YEARS AGO,

  • PRESIDENT OBAMA UNVEILED THE NATIONAL EXPORTS INITIATIVE.

  • AND IF YOU LOOK AT THE DATA AND YOU LOOK AT THE CARGO VOLUMES,

  • YOU'LL NOTICE THAT THERE'S A LOT MORE MOVEMENT ON THE EXPORT SIDE

  • THAN THERE IS ON THE IMPORT SIDE.

  • AND SO, ONE OF THE THINGS THAT WE AS A PORT,

  • OUR LEVERAGING IS THE MOMENTUM BEHIND A PUSH

  • TO INCREASE EXPORTS, AND WE DO THAT BY--

  • WE HAVE A TRADE DEVELOPMENT STAFF THAT MEETS

  • WITH THE ENTREPRENEURS SMALL BUSINESS OWNERS.

  • AND WE TRY TO CONNECT THEM TO FIRMS OVERSEAS

  • TO INCENTIVIZE THEM AND ENCOURAGE THEM TO CAPITALIZE

  • ON THESE OPPORTUNITIES.

  • EXPORTS ARE A HUGE SOURCE OF JOB CREATION, NOT JUST HERE

  • IN LONG BEACH, THROUGHOUT THE REGION, THROUGHOUT THE COUNTRY.

  • AND SO, THAT'S ONE THING AND THAT'S ONE WAY THAT THE PORT

  • OF LONG BEACH IS SEIZING THAT OPPORTUNITY.

  • >> I WOULD SAY THAT THE ABSOLUTE PRIMARY AREA OF GROWTH IS

  • IN EXPANSION AND NEED FOR MORE PRIMARY CARE PROVIDERS.

  • AND THAT MEANS PRIMARY CARE PHYSICIANS,

  • FAMILY MEDICINE PHYSICIANS, INTERNISTS AND OTHERS, BUT ALSO,

  • MANY MORE PRIMARY CARE PROVIDERS SUCH AS NURSE PRACTITIONERS,

  • CLINICAL PHARMACIST AND OTHERS

  • WHO CAN WORK VERY CLOSELY WITH PATIENTS.

  • AND WE HAVE A SHORTAGE NOT JUST IN OUR STATE BUT CERTAINLY

  • IN OUR REGION OF PRIMARY CARE PROVIDERS.

  • AND SO, WE LOOK TO THE GROWTH OPPORTUNITIES

  • AROUND PRIMARY CARE, AND PRIMARILY

  • IN THE OUTPATIENT SETTING.

  • WE WILL CONTINUE TO SEE SOME GROWTH IN THE ACUTE CARE SETTING

  • AND SPECIALTY POSITIONS AND ANCILLARY POSITIONS.

  • BUT WE WILL SEE MUCH MORE GROWTH IN THE OUTPATIENT AREA

  • AND FROM A PRIMARY CARE PERSPECTIVE, SO.

  • >> RIGHT, THERE'S MANY, MANY, MANY EXAMPLES

  • OF WHAT'S HAPPENING IN THE INDUSTRY,

  • OBVIOUSLY THE C-17 PROGRAM 100 PERCENT CORRECT IS WANING.

  • AND IT WILL BE WANING IN THE FUTURE

  • AND IT'LL EVENTUALLY STOP PRODUCTION

  • AND THE PLAN WILL BE CLOSED.

  • SIMULTANEOUSLY, GULFSTREAM IS INCREASING THEIR ACTIVITY.

  • SO NOW, WHERE IS GULF--

  • THE GULFSTREAM PLANT

  • AT THE AIRPORT IS INCREASING ITS ACTIVITIES.

  • AND IT ALSO IS LOOKING TOWARDS EXPANDING ITS FOOTPRINT.

  • WE HAVE MANY, MANY PROGRAMS

  • AND FOR EXAMPLE AIR SERVICE MARKETING THAT WE'RE TRYING

  • TO BRING THE RIGHT AIR SERVICE TO THE AIRPORT

  • AND CONNECT THE RIGHT CITY PAIRS.

  • WE ALSO HAVE AN ACTIVE PROGRAM WITH CONVENTION

  • AND VISITORS BUREAU TO PROMOTE THE CITY

  • OF LONG BEACH AS A DESTINATION.

  • BASICALLY, WHAT WE'RE TYING TO DO, IT REALLY IS INTERESTING,

  • I DID THIS WHEN I WAS IN FORT LAUDERDALE.

  • FORT LAUDERDALE WAS ACTIVELY DEVELOPED AS AN ALTERNATIVE

  • TO MIAMI INTERNATIONAL AIRPORT

  • BECAUSE MIAMI INTERNATIONAL AIRPORT WAS A PAIN IN THE NECK

  • TO FLY INTO MIAMI INTERNATIONAL AIRPORT.

  • SO, YOU WANTED BUSINESS PEOPLE TO FLY THROUGH FORT LAUDERDALE,

  • SPENT A COUPLE OF ROOM NIGHTS IN FORT LAUDERDALE AND DRIVE

  • DOWN TO MIAMI AND CONDUCT BUSINESS.

  • IT ACTUALLY HEADED IN THE RIGHT DIRECTION.

  • WE'VE BEEN DOING THAT SLOWLY THROUGH PROMOTIONS

  • IN BOSTON AND IN NEW YORK.

  • FOR EVERY SINGLE PERCENTAGE THAT WE TURN IS AN ECONOMIC IMPACT

  • OF 20 MILLION DOLLARS TO THE CITY OF LONG BEACH.

  • SO, IT IS-- AND IT'S VERY DIFFICULT TO DO.

  • BUT IT'S BASICALLY SETTING INTO PEOPLES' MINDS

  • THAT THERE IS AN ALTERNATIVE TO LAX.

  • SO, AND THERE IS SEVERAL OTHER THINGS

  • THAT WE'RE MOVING FORWARD.

  • AND THAT'S WHY IF YOU LOOK AT THE AIRPORT,

  • MOST OF THE AIRPORTS OF THIS SIZE

  • AROUND THE NATION ARE LOSING A CONSIDERABLE AMOUNT OF TRAFFIC.

  • BURBANK HAS LOST I THINK ABOUT 25 TO 30 PERCENT OF ITS TRAFFIC.

  • ONTARIO HAS LOST 40 PERCENT OF ITS TRAFFIC.

  • IT'S A GREAT TRAGEDY OUT THERE.

  • WE'VE MANAGED TO HOLD STEADY.

  • AND WE'VE MANAGE TO HOLD STEADY BECAUSE OF ALL THIS ACTIVITY

  • THAT WE'RE DOING AND ACTUALLY THAT PROBABLY THE NEW--

  • THE NEW NORMAL IS THAT IF WE HOLD STEADY,

  • WE'RE IN GREAT SHAPE AND WE ARE IN GREAT SHAPE.

  • JETBLUE IS DOING WELL AND ALL OTHER AIRLINES ARE DOING WELL.

  • NOW, OBVIOUSLY THEIR SHIFTS IN ROUTE MAPS ALL THE TIME.

  • AND WE WORK WITH THE AIRLINES WHO TRY

  • TO CONNECT THE DOTS AS WELL AS POSSIBLE.

  • I DON'T KNOW IF THAT ANSWER YOUR QUESTION.

  • >> THANK YOU, ANY OTHER QUESTIONS?

  • OK. ALL RIGHT, SO WE'LL TAKE ONE MORE AND THEN I WILL, YOU KNOW,

  • AT 10 TO KEEP ON TIME.

  • I WILL, YOU KNOW, LET PEOPLE GO WHERE THEY WANT TO.

  • BUT GO AHEAD TIFFANY [ASSUMED SPELLING].

  • >> OK. A QUESTION FOR DIANA [INAUDIBLE] THE PHYSICIANS

  • ON YOUR [INAUDIBLE].

  • I WANTED TO ASK YOU WHAT [INAUDIBLE]

  • AND ALSO [INAUDIBLE].

  • >> WELL, SEVERAL DIFFERENT ASPECTS AND,

  • THANKS FOR THE QUESTION, TIFFANY.

  • WE HAVE STRONG RELATIONSHIPS WITH MOST

  • OF THE MAJOR UNIVERSITIES FOR GRADUATE MEDICAL EDUCATION.

  • AND SO, WE ARE LOOKING TO EXPAND THE NUMBER OF RESIDENTS

  • AND FELLOWS THAT ARE FOCUSED PRIMARILY

  • IN PRIMARY CARE MEDICINE.

  • SO, FOR EXAMPLE AT LONG BEACH IN MILLER CHILDREN'S,

  • WE HAVE 115 FULLTIME EQUIVALENT GRADUATE MEDICAL EQUIVALENCE

  • OR EDUCATION.

  • AND BUT MOST OF THOSE RESIDENTS

  • OR FELLOWS ARE FOCUSED ON SPECIALTIES.

  • AND SO, WE ARE MAKING THE CONVERSION

  • TO FOCUSING SPECIFICALLY ON INTERNAL MEDICINE.

  • ADDITIONALLY, WE HAVE AND DO HAVE

  • AND ARE GROWING OUR FAMILY MEDICINE RESIDENCY PROGRAM

  • THAT IS LONG BEACH MEMORIAL-BASED.

  • BUT ALSO IN IMPORTANTLY WORKING VERY CLOSELY

  • WITH CAL STATE LONG BEACH TO BOTH TRAIN NEW NURSES

  • AFTER WE GRADUATE 108 NURSES A YEAR

  • TO THE CAL STATE LONG BEACH PROGRAM.

  • MOST OF WHOM WE'RE ABLE TO EMPLOY DIRECTLY

  • THROUGH A TUITION DEFERMENT PROCESS.

  • THEY JOIN OUR ORGANIZATION.

  • AGREE TOP WORK FOR TWO YEARS, TUITION IS FORGIVEN.

  • SO, THAT'S BEEN A WONDERFUL WAY TO EMPLOY AND TRAIN ON SITE.

  • BUT THAT PROGRAM IS EXPANDING TO NURSE EDUCATION

  • INTO NURSE PRACTITIONER.

  • AND GRADUATE LEVEL NURSE PRACTITIONERS

  • WHO CAN CARE DIRECTLY FOR PATIENTS.

  • SO, THOSE ARE JUST TWO EXAMPLES ADDITIONALLY,

  • OUR CLINICAL PHARMACY RESIDENCY PROGRAM IS PRIMARY CARE-ORIENTED

  • CONTINUES TO GROW AND EXPAND AND FOCUS ON.

  • SO, THOSE ARE THREE EXAMPLES

  • WHERE WE'RE SHIFTING OUR CURRENT PROGRAMS, EXPANDING THEM

  • AND ALSO MAKING IT FEASIBLE FOR STUDENTS TO OVERCOME THE COST

  • OF TUITION, OVERCOME THE COST OF THAT ADVANCE EDUCATION.

  • >> ANYONE ELSE?

  • >> HI, GOOD MORNING [INAUDIBLE] SMALL BUSINESSES

  • [INAUDIBLE] SERVICES.

  • HAVE YOU BEEN IN THE CITY OF [INAUDIBLE]

  • IN THE LAST [INAUDIBLE]?

  • AND SO [INAUDIBLE] LONG BEACH.

  • I'M REALLY LOOKING [INAUDIBLE].

  • HOW CAN [INAUDIBLE] SERVICES?

  • >> YOU'RE EXACTLY THE PERSON I WANTED TO TALK THIS MORNING.

  • I'M HAPPY TO STICK AROUND AFTER THE PROGRAM TALK

  • TO YOU SOME MORE.

  • BUT THERE ARE DEFINITELY A LOT OF OPPORTUNITIES.

  • AND WE CERTAINLY HAVE AN OPEN DOOR POLICY ESPECIALLY THE LONG

  • BEACH BUSINESSES.

  • SO, I LOOK FORWARD TO TALKING WITH YOU.

  • WE HAVE A NUMBER OF PROGRAMS THAT WE CAN OFFER TO YOU

  • THAT YOU CAN TAKE ADVANTAGE OF.

  • ONE OF THE THINGS THAT I WANT TO ELUDE TO YOU EARLIER,

  • MY EARLY RESPONSE IS AS THE MIDDLECLASS IN ASIA,

  • PARTICULAR IN CHINA CONTINUES TO GROW.

  • THE DEMAND FOR US SERVICES AND GOODS ALSO GROWS.

  • AND SO, THERE'S A LOT OF OPPORTUNITIES,

  • BUT I LOOK FORWARD TO TALKING WITH YOU

  • AFTER THE PROGRAM SOME MORE.

  • >> OK, WE'LL TAKE ONE LAST QUESTION.

  • AND THEN LIKE I SAID, IF YOU WANT TO STICK AROUND AND COME UP

  • AND TALK, OUR PANELISTS WILL BE AROUND FOR A LITTLE WHILE,

  • YOU CAN ASK FURTHER QUESTIONS.

  • GO AHEAD SIR.

  • >> AND THEN FIRST [INAUDIBLE], YOU KNOW,

  • BASICALLY [INAUDIBLE] EVERYBODY

  • IN THE ROOM [INAUDIBLE] BUSINESSES WANT TO DROP,

  • CORPORATIONS WANT TO DROP, AND REALLY IS A REGULATORY CLASSES

  • THAT WE HAVE IN THE STATE [INAUDIBLE] STATE

  • THAT STARTS BUSINESSES [INAUDIBLE].

  • SO, THAT'S JUST SOMETHING FOR OUR MEMBERS OF [INAUDIBLE].

  • I APPLIED [INAUDIBLE].

  • BUT PEOPLE WANT TO GROW [INAUDIBLE] RESTRICTIONS,

  • THE IMPORTANT [INAUDIBLE].

  • WE CAN'T, WE'RE UNDER RESTRICTIONS.

  • MEDICAL SERVICES, YOU KNOW,

  • YOU CAN GIVE [INAUDIBLE] MIGHT HELP ME [INAUDIBLE].

  • BUT [INAUDIBLE] SORT OF LEGISLATIVES

  • AND ARE SOON TO BE LEGISLATIVES.

  • PLEASE [INAUDIBLE] REGULATORY PROCESS

  • BECAUSE THAT'S WHAT [INAUDIBLE].

  • >> OK.

  • [ APPLAUSE ]

  • >> AND I GUESS I WOULD JUST ADD THAT WE WANT

  • TO GROW WHAT IS MORE IMPORTANT

  • TO US IS US HELPING YOU KEEP YOUR EMPLOYEES HEALTHY

  • AND WELL SO THAT YOU CAN GROW.

  • AND THAT'S OUR PRIMARY FOCUS.

  • >> WELL, LET ME THEN STOP IT THERE.

  • LIKE I SAID IF YOU HAVE FURTHER QUESTIONS, FEEL FREE TO COME UP

  • AND TALK TO OUR PANELISTS WILL BE

  • AROUND FOR A FEW MORE MINUTES.

  • AND YOU CAN TALK TO FOLKS THAT ARE SITTING

  • IN THE DIFFERENT TABLE.

  • THERE IS FRESH COFFEE OUT IN THE LOBBY.

  • AND YOU CAN ENJOY THAT.

  • THANK YOU ALL AGAIN FOR COMING TODAY.

  • >> GREAT JOB.

  • >> I REALLY APPRECIATE IT, HAVE A GREAT DAY.

  • [ APPLAUSE ]

  • [ INAUDIBLE DISCUSSIONS ]

[ INAUDIBLE DISCUSSIONS ]

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