Jack Kyser on the Creative Economy

The Creative Industries
of Los Angeles
Leadership LA
Jack Kyser
Sr. VP & Founding Economist,
The Kyser Center for Economic Research, LAEDC
Friday April 3, 2009
“Creative”
Defined As:
Inventive;
Imaginative
Source: Webster’s Dictionary
Some Things Created in LA
Modern bathing suit
F-117, first “stealth” fighter
Bugs Bunny
Space shuttle
Cobb salad
Multi-channel recording process
What Are the Creative Industries
of Los Angeles County?
 Architecture/
Interior Design
 Furniture/ Home
Furnishings
 Art Galleries
 Product/ Industrial
Design
 Communication Arts
 Digital Media
 Entertainment
 Fashion
 Toys
 Visual & Performing
Arts
Creative Industry Profiles
Los Angeles County
Architecture/ Interior Design
in Los Angeles County
Establishments
1,568
Employment
10,781
S/ S/R (billions)
$5.8
Taxes (state income & sales taxes in millions)
Threats:
 Slow down in residential &
commercial real estate
$66.8
Art Galleries
in Los Angeles County
Establishments
249
Employment
1,051
S/ S/R (millions)
$185.2
Taxes (state income & sales taxes in millions)
Threats:
 Very sensitive to economic trends
High turn-over
$4.3
Communication Arts
in Los Angeles County
(Graphic design services, advertising, package design & display)
Establishments
1,770
Employment
19,237
S/ S/R (billions)
$3.2
Taxes (state income & sales taxes in millions)
Threats:
 Economic slowdown depresses ad
spending
Shift to on-line advertising
Problems of print media
$147.5
Digital Media In Los Angeles County
Establishments
Employment
1,139
8,669
S/ S/R (billions)
Taxes (state income & sales taxes in millions)
$5.5
$59.4
Threats:
 Hard to track
Very competitive
Entertainment In Los Angeles County
Establishments
Employment
S/ S/R (billions)
Taxes (state income & sales taxes in millions)
Threats:
 Run-away production despite
new state incentives
Major changes in the TV industry
Labor problems
5,471
129,728
$57.0
$1.76
Fashion in Los Angeles County
(Includes textiles, jewelry, cosmetics & footwear)
Establishments
7,339
Employment
105,800
S/ S/R (billions)
$32.9
Taxes (state income & sales taxes in millions)
Threats:
 Production done offshore
Not taken seriously
Image of workplace
$452.8
Furniture/ Home Furnishings
in Los Angeles County
(Includes manufacturing, marts, textile product mills, lamps)
Establishments
1,971
Employment
41,642
S/ S/R (billions)
$9.9
Taxes (state income & sales taxes in millions)
Threats/ problems:
 Slump in housing
Competition from other states
for “marts”
$172.9
Product/ Industrial Design
in Los Angeles County
(Includes specialized design firms)
Establishments
132
Employment
600
S/ S/R (millions)
Taxes (state income & sales taxes in millions)
Threats/ problems:
 Hard to track due to free-lancing
$85.5
$2.7
Toys in Los Angeles County
(Includes manufacturing & wholesaling)
Establishments
280
Employment
6,185
S/ S/R (billions)
$5.0
Taxes (state income & sales taxes in millions)
Threats:
 Shifting consumer demand
Intense competition
$63.4
U.S. EQUITY PRICES
1,600
S& P Index
NASDAQ Index
4,750
1,500
S&P 500
4,400
1,400
NASDAQ Composite
4,050
1,300
3,700
1,200
3,350
1,100
3,000
1,000
2,650
900
2,300
800
1,950
700
1,600
600
1,250
96:12
98:6
99:12
01:6
02:12
04:6
Year: Month
05:12
07:6
08:12
Visual/ Performing Arts
in Los Angeles County
(Includes visual & performing arts schools, theater & dance cos, museums, etc)
Establishments
Employment
S/ S/R (billions)
Taxes (state income & sales taxes in millions)
Threats:
 Funding
Aging audience
Traffic congestion
Attracting ethnic audiences
7,202
22,292
$7.9
$429.6
But What About?
Aerospace
Bio-Medical
Engineering
Technology
How Do the Creative Industries Rank
Among Other Industries?
(Employment based rank)
1.
Tourism/ Hospitality
456,000 jobs
Creative Industries
346,000 jobs
2.
Professional & Business Services
287,000 jobs
3.
Direct International Trade
281,000 jobs
4.
Entertainment
266,000 jobs
5.
Wholesale Trade/ Logistics
200,000 jobs
6.
Technology
152,000 jobs
7.
Health Services/ Bio-Medicine
133,000 jobs
8.
Materials & Machinery
123,000 jobs
Source: CA EDD; LAEDC
Nonemployer Creative Activity
in Los Angeles County
Reported Creative Employment
346,000
+
Nonemployer Employment “Arts &
Entertainment”
70,300
Wrapping It Up
A diverse array of activities
Image as being “frivolous”
Never been fully utilized
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