Los Angeles, CA June 3, 2004--A first-time study prepared by the Los Angeles County Economic Development Corporation (LAEDC) shows the economy of the South Los Angeles Area is not only complicated, but has many challenges. It was produced for the "Crenshaw Summit," which scheduled to take place this Saturday, June 5, 2004 and is sponsored by the Crenshaw Chamber of Commerce.
The South Los Angeles Area has significant potential, but enhancing it will take hard work and the implementation of some nontraditional economic development strategies," said Chief Economist and Senior Vice President Jack Kyser, LAEDC.
The South Los Angeles Area is bounded by the Santa Monica Freeway on the north, the city of Inglewood and some County unincorporated areas on the west, the Century Freeway on the south, and the cities of Vernon, Huntington Park and South Gate on the east. The Area's 2000 population was 702,288, with Latinos accounting for the majority – 55.9 percent, while African Americans accounted for 38.9 percent. The Area is a fairly stable community, with 54.0 percent of the residents living in the same house as in 1995. Since the 2000 Census, the Area has added at lest 18,000 residents.
"Employment in the area has been fairly stable since 1991," noted Kyser. According to data from the California Employment Development Department, the high was recorded in 1991 when there were 96,366 people at work in the area. A low of 82,717 jobs was reached in 1993, at the depth of the early 1990's recession/economic restructuring and in the aftermath of the 1992 civil unrest. By 2003, the area's job count had climbed back to 94,781. "With the rebounding national, state and county economies in 2004, the South Los Angeles Area should see employment growth of 1,329 jobs during the year," said Kyser.
Kyser noted that calculating the area's share of Los Angeles County's total employment provides an interesting insight. Like employment itself, this share has been fairly stable since 1991. "This tells us that South Los Angeles is mainly a residential area rather than a major employment hub in Los Angeles County."
The LAEDC study also revealed that the largest industry in the area was apparel/textiles manufacturing with 12,169 workers. Two other manufacturing industries also loomed large, food products manufacturing with 3,189 jobs, and furniture with 2,648 workers.
Nonresidential real estate vacancy rates for the South Los Angeles Area, were also surprising. Grubb & Ellis provided some information especially for the LAEDC study, and the vacancy rate for office properties was 5.0 percent during the first quarter of 2004, while for industrial properties the rate as only 1.2 percent. For comparison, Los Angeles County's office vacancy rate for the first quarter was 16.1 percent, while the industrial rate was 3.3 percent. "This tells us that there is ‘demand' for space in the area, but the supply situation is compounded by a lack of large blocks of developable land," added Kyser.
"All this plus other information tells us that the leaders of the South Los Angeles Area need to pursue a nontraditional economic development strategy," said Kyser. Among the recommendations in the study were:
►Given the Area's exposure to the apparel/textiles industry, its leaders need to become actively involved with this industry to positively affect future developments.
►The same strategy should be followed with the furniture industry. The South Los Angeles Area has an advantage here in that there is a "furniture manufacturing cluster" in the area, along with efforts to develop the "L.A. Design Center" at the intersection of Western and Slauson avenues.
►The LAEDC study also pointed out that the South Los Angeles Area has been impacted by economic trends in adjacent areas. A prime example is the Gateway region directly to the east, where there was a concentration of heavy manufacturing running along Alameda Street. As these plants, including an auto assembly plant and a tire factory, disappeared, so did many good jobs in South Los Angeles. Thus, leaders in South Los Angeles need to take a more global perspective on what is happening in adjacent areas that could cause job growth/loss in their area.
►Since the South Los Angeles Area is "land poor", especially for large blocks, its leaders need to make sure that various proposals for redevelopment of such sites as "Lanzit" move along in an expeditious fashion.
►The LAEDC study also suggested that leaders of the South Los Angeles Area consider establishing an economic development group for the area, driven by the private sector.
► Finally, the study noted that continued attention has to be devoted to the "old reliables" for the South Los Angeles Area, lowering crime and improving schools.
"The South Los Angeles Area has significant potential, but developing it will take hard work, some unusual strategies, and a global perspective on how the area works with surrounding area in Los Angeles County," said Kyser.
Editors: For an advanced copy of study, interviews and images contact: George Mc Quade or Aida Mayo at MAYO Communications at: 818.340.5300 or 818.618.9229 or PR@MayoCommunications.com.
All LAEDC studies are posted at www.laedc.org
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