Unify | Regionalize | Diversify Revisited...of Brookings’ aerospace & defense cluster centers...

[TYPE TEXT]

Unify | Regionalize | Diversify Revisited REFINING THE BROOKINGS INSTITUTION FRAMEWORK

Prepared for the Las Vegas Global Economic Alliance DRAFT

P r e p a r e d b y T I P S t r a t e g i e s , I n c . | w w w . t i p s t r a t e g i e s . c o m | M a y 2 0 1 3

DRAFT PREPARED FOR THE LAS VEGAS REGIONAL ECONOMIC DEVELOPMENT AUTHORITY

Theory Into Practice Page | 1

About this work

This document was created by TIP Strategies as part of the preparation of Comprehensive Economic Development Strategies (CEDS) for the Las Vegas Region (defined

as Clark County, Nevada) and for the City of Las Vegas. Additional reports associated with this work include the regional CEDS and the regional economic assessment.

6795 Edmond St. Ste. 260

Las Vegas, NV 89118

702-791-0000

www.nevadadevelopment.org

Las Vegas Global Economic Alliance

The Las Vegas Global Economic Alliance is a 501(c)6 membership organization dedicated to developing the economies of Las

Vegas, Clark County, Henderson, North Las Vegas, Boulder City, Mesquite, and Nye County through regional cooperation, global

trade, and global connectivity.

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Austin, Texas 78701

512.343.9113

www.tipstrategies.com

TIP Strategies, Inc.

TIP Strategies, Inc., is a privately held Austin-based economic development consulting firm committed to providing quality

solutions for public and private-sector clients. Established in 1995, the firm’s primary focus is strategic economic development

planning. In addition, TIP has experience with entrepreneurship, target industry analysis, workforce, and redevelopment. TIP’s

methods establish a clear vision for economic growth. Community leaders across the country have embraced the TIP model of

Talent, Innovation, and Place to achieve successful and sustainable economies.

Unify | Regionalize |

Diversify Revisited:



Contents

OVERVIEW ......................................................................................................................................................................................... 3 1.

Purpose & scope...................................................................................................................................................................................................................................................................... 4

Observations ............................................................................................................................................................................................................................................................................ 5

REFINING THE BROOKINGS FRAMEWORK ........................................................................................................................................... 7 2.

Approach.................................................................................................................................................................................................................................................................................. 7

Prioritization summary ........................................................................................................................................................................................................................................................... 10

Tourism, Gaming, & Entertainment ................................................................................................................................................................................................................................ 10

Health & Medical Services ............................................................................................................................................................................................................................................. 11

Business IT Ecosystem .................................................................................................................................................................................................................................................. 12

Clean Energy ................................................................................................................................................................................................................................................................. 12

Logistics & Operations ................................................................................................................................................................................................................................................... 13

PRIORITY INDUSTRY SECTOR PROFILES ............................................................................................................................................. 14 3.

Tourism, Gaming, & Entertainment ........................................................................................................................................................................................................................................ 16

Health & Medical Services ..................................................................................................................................................................................................................................................... 22

Business IT Ecosystems ........................................................................................................................................................................................................................................................ 27

Logistics & Operations ........................................................................................................................................................................................................................................................... 34

APPENDIX A: REFINING TARGETS (DETAILED TABLES) ............................................................................................................................ 41

APPENDIX B: COMPARISON OF SITE SELECTION CONSIDERATIONS ........................................................................................................ 48



Overview 1.

Economic development in Nevada is undergoing significant changes.

Assembly Bill (AB) 449, commonly known as the Economic Development Bill,

calls for Nevada to revamp the state’s economic development approach with

the goal of diversifying Nevada's economy and creating more jobs.

To aid in planning for the legislation’s implementation, state officials engaged

the Brookings Institution’s Metropolitan Policy Program, along with Brookings

Mountain West (a partnership between the Brookings Institution and the

University of Nevada -- Las Vegas) and SRI International, to conduct a study

of the state’s economic challenges and identify industry sectors with the

highest potential for expansion. Published in November 2011, the resulting

report, entitled Unify | Regionalize | Diversify: An Economic Development

Agenda for Nevada, provides several recommendations for diversifying the

state and regional economies.

The report identified 30 niche opportunities within seven broad industries,

which collectively are projected to add 80,000 to 125,000 jobs in the state

during the next five years:

Tourism, Gaming, and Entertainment

Health and Medical Services

Business IT Ecosystems

Clean Energy

Mining, Materials, and Manufacturing

Logistics and Operations

Aerospace and Defense

Of these, five targets were singled out for Southern Nevada (see Figure 1).

Figure 1. Recently proposed statewide target industry framework

Five of the seven statewide targets were recommended for Southern Nevada

SOURCE: Unify | Regionalize | Diversify: An Economic Development Agenda for Nevada, The Brookings Institution,

Metropolitan Policy Program; Brookings Mountain West (University of Las Vegas, Nevada); and SRI International, 2011

LEGEND

Mining, Materials, & Manufacuring

CleanEnergy

Tourism, Gaming, & Entertainment

Logistics & Operations

Business ITEcosystems

Health & Medical Services

Aerospace & Defense



The report provides a solid framework for capitalizing on state and regional opportunities. In addition to providing an intelligent overview of the state’s economic challenges,

the authors provide specific recommendations for building “the next Nevada economy” along three lines:

1) Unify: Install an operating system for 21st century economic development

2) Regionalize: Support smart sector strategies in the regions.

3) Diversify: Set a platform for higher-value growth through innovation and global

engagement.

The Las Vegas region (defined here as Clark County), has been particularly hard hit by

the recession (Figure 2). After several years of employment growth that far outpaced the

US, employment in the region plummeted during the economic downturn. Though growth

rates have rebounded, the scale of jobs lost means a full recovery will be years in the

future. As a result, prioritizing regional economic development activities remains a critical

step in creating the region’s “next economy.”

PURPOSE & SCOPE

This report was undertaken as part of the preparation of comprehensive economic

development strategies (CEDS) for the Las Vegas region (Clark County) and for the City

of Las Vegas. CEDS are currently produced every five years and updated annually by

economic development organizations. The objective of the CEDS planning process is to

engage a cross-section of a region’s main economic interests around the task of

identifying regional goals and objectives, as well as highlighting projects that may be

eligible for financial assistance from EDA. Austin-based consulting firm, TIP Strategies,

was engaged to assist the City and the Las Vegas Regional Economic Development

Council (LVREDC) in this effort.

The purpose of revisiting the Brookings analysis is to help regional leaders maximize the

value of the framework it provides. Specifically, this report adds value to the Brookings

analysis in the following ways:

Figure 2. The general outlook for jobs

Employment growth history (2001-2011) and forecast (2012-2021)

SOURCE: EMSI Complete Employment - 2012.2

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Assigning industry classifications. While the Brookings report provides an excellent starting point for targeting, it lacks specific industry classifications. We began

our analysis by matching the target opportunities identified by Brookings to specific North American Industry Classification System (NAICS) codes at the 4-and 6-digit

level. This step facilitates further analysis by linking the Brookings recommendations with industry data. An overview of this matching process is provided in Section 2.

Suggesting priorities for business development. One key element which was

not addressed in the Brookings report was the prioritization of opportunities. Our

analysis uses quantitative data and the experience of the consulting team to help

economic developers focus on those market niches with 1) the highest potential

to address the region’s lag in long-term income and skill growth relative to US

and 2) the most realistic growth opportunities (based on factors like regional

assets and the ability to influence the market). The results of the prioritization are

outlined in Section 2. Detailed tables showing the associated statistical analysis

are provided as Appendix A.

Providing context. Section 3 offers additional information regarding each of the

prioritized industry sectors. Data presented includes national employment

outlook and capital expenditure patterns, major global players, and relevant site

selection and market considerations. In addition, we present several labor

capacity scenarios for each target. These scenarios illustrate the types of

workers required to meet the needs of a hypothetical new facility in

representative industries.

OBSERVATIONS

The five targets and 27 niche markets proposed for Southern Nevada by the

Brookings study provide a solid foundation for building a regional strategy. The

study’s recommendations build on regional assets and present a strong mix of

foundational and aspirational targets. The primary emphasis of this work is helping to

prioritize these options.

Among the recommended opportunities, one concept stands out: the suggestion to make the region the “intellectual capital of gaming.” The Brookings report makes an

analogy to Houston’s evolution from an oil town to a global command and control center for the energy industry. Strategically, this is a promising model for Las Vegas and

Figure 3. What is NAICS?

The North American Industry Classification System (NAICS, pronounced Nakes) was

developed as the standard for use by Federal statistical agencies in classifying

business establishments. It provides the basis for the collection, tabulation,

presentation, and analysis of statistical data describing the US economy. NAICS was

developed jointly with government agencies in Canada and Mexico to allow for a high

level of comparability in business statistics among the North American countries.

NAICS structure NAICS example

Sector 31-33 Manufacturing

Subsector 336 Transportation equipment manufacturing

Industry group 3361 Motor vehicle manufacturing

Industry 33611 Automobiles and light duty motor vehicles, incl. chassis

Detailed industry 336111 Automobiles and light duty motor vehicles, incl. chassis

SOURCE: US Census Bureau; TIP Strategies

Sector

Subsector

Industry group

Industry

Detailed industry (country-specific)



should be pursued aggressively. The region is already home to giants in the industry such as Las Vegas Sands

Corporation, MGM Resorts International, and Wynn Resorts Limited, and is known worldwide for hosting

spectacular events like the International Consumer Electronics Show and Cirque du Soleil.

Aggressive pursuit of this idea would go beyond using the sector as a means to expand the tourism base and

bring more people into the city. Rather an economic development approach would focus on taking the region’s

homegrown expertise in gaming and selling it to the rest of the world. This type of approach could translate to

managing chains of casinos worldwide, or developing and selling electronic security services (a critical element of

the gaming industry success), or mean managing and staging touring events. The focus of these kinds of

strategies would be on moving the region up the value chain by focusing on higher level skills versus those more

commonly associated with tourism.

The Brookings targets for Southern Nevada are the focus of this report. However, this is not to say they are the

only industries that should be pursued. For example, aerospace & defense was not specifically recommended as

a target for Southern Nevada in the Brookings study. This omission likely reflects the fact the aviation component

of Brookings’ aerospace & defense cluster centers primarily on maintenance repair and overhaul (MRO)

activities, which also fit neatly into the logistics group (the air cargo niche) because of the overlapping labor

market requirements and skills. However, because of the Creech AFB unmanned aerial vehicle (UAV) operations

and the region’s potential selection as an FAA UAV test site, the opportunity for attracting the supply, assembly,

and testing of UAVs remains worthy of consideration. Other niches that merit inclusion in a recruitment and

expansion strategy include certain financial services (e.g., industrial banking and intangible assets), as well as

sustainability technologies (solar, water, and conservation technologies).

In summary, this report is intended to refine the Brookings recommendations by prioritizing those opportunities

that offer the greatest potential for providing high-wage employment and that are the best fit with local assets and

capacity. It will serve as foundational document in the development of CEDS for the Las Vegas region (Clark County). Strategies in the CEDS reports will focus on

leveraging key assets, such as McCarran International Airport (which plays a pivotal role in several of the target sectors), providing guidance on traditional business

development activities (including industry expansion and recruitment), as well as exploring less traditional approaches, such as entrepreneurship.

THE NEED FOR FLEXIBILITY:

Not all of Nevada’s growth potential

resides within the discreet target

industries and segments focused on

within this analysis. Other industries and

segments may also contain, or see

emerge, high-potential activity centers.

For that reason, the state should

remain open to new developments and

fact-based business proposals about

them. For example, at least three areas

of economic activity outside of the seven

priority industries merit additional

mention even now. These include:

Agriculture and Food Processing; Water

and “Water Tech;” and Financial and

“Intangible” Enterprises.

Unify | Regionalize | Diversify: An Economic

Development Agenda for Nevada, page 8

The Brookings Institution, Metropolitan Policy

Program; Brookings Mountain West (University of

Las Vegas, Nevada); and SRI International, 2011,



Refining the Brookings framework 2.

The Brookings report identified five broad targets with 25 potential niche markets for Southern

Nevada (Figure 5). However, the study stopped short of assigning these opportunities to

specific industrial classifications, called NAICS codes. (See Figure xx, page xx, for additional

information about the NAICS system).

APPROACH

For market niches, the link to the NAICS system is well-established. For example, E-commerce

operations (one of the opportunities suggested under the Business IT Ecosystems target) has

clearly defined match under the classification system:

Sector 44-45 Retail trade

Subsector 454 Nonstore retailers

Industry group 4541 Electronic shopping and mail order houses

Industry 45411 Electronic shopping and mail order houses

Detailed industry 454110 Electronic shopping and

mail order houses

For others, the match was less precise, requiring some interpretation. The results of this

matching process at the 4-digit industry group level are provided in Figure 6 (next page).

Once 4-digit NAICS codes were assigned, we compared the niche industry groups to detailed

data at the 6-digit level for those industries employing 500 or more workers in the Las Vegas

metropolitan statistical area (MSA) in 2011. The objective of this analysis, which is detailed in

Appendix A, was to identify niche industries where industry earnings were highest. We took

this approach as a way to prioritize resources among those industries with the greatest

potential to address a key challenge identified during the assessment phase: the region’s

lagging long-term income and skill growth relative to the US.

Figure 4. The five broad targets for Southern Nevada

With recommended target opportunities

1 Tourism, Gaming, & Entertainment

Center for online gaming

Intellectual capital of global gaming

Gaming manufacturing

Diversifying into niche tourism markets

Retirees and second home owners

Film and media

2 Health & Medical Services

Surgical specialties

Geriatrics and related services

Disaggregation of medical service delivery

Leverage sector to build other emerging industries

3 Business IT Ecosystems

E-commerce operations/headquarters

Corporate data centers

Cloud computing/high-performance computing

Cyber security

Call centers/customer service and back office/BPO/shared services

4 Clean Energy

Renewable component manufacturing

Expanding transmission capacity

Energy efficiency upgrading

Advancing and internationalizing geothermal development

5 Logistics & Operations

Warehousing and distribution

Advanced logistics

Air cargo

Food processing operations

Freight transportation (ground and rail)

Integrated manufacturing-distribution & assembly mfg.

SOURCE: Unify | Regionalize | Diversify: An Economic Development Agenda for Nevada, The

Brookings Institution, Metropolitan Policy Program; Brookings Mountain West (University of Las

Vegas, Nevada); and SRI International, 2011



Figure 5. The 5 broad targets for Southern Nevada

Including suggested components for consideration, matched to approximated NAICS codes


Niches (from Brookings) NAICS classification (broad approximation) Supporting rationale

Center for online gaming 5191 Other Information Services includes internet games


7132 Gambling Industries includes most aspects of the gaming industry

5511 Management of Companies and Enterprises includes HQ & regional offices of gaming companies

Gaming manufacturing 3399 All Other Miscellaneous Mfg. includes mfg. of gaming devices

Diversifying into niche tourism markets 7113 Promoters of Performing Arts, Sports, & Similar Events incl. production/mgmt.. of events, festivals, & live entertainment

Retirees and second home owners 7139 Other Amusement and Recreation Industries beyond tourism, where do part-time residents spend their time?

Film and media

5121 Motion Picture and Video Industries

includes the chain of media activities from production to promotion 5152 Cable and Other Subscription Programming

5418 Advertising, Public Relations, and Related Services




62 Health Care and Social Assistance high level of integration in health-related activities means

considering all aspects of the sector






E-commerce operations/headquarters 4541 Electronic Shopping & Mail-Order Houses near exact match


5182 Data Processing, Hosting, & Related Services very close match


Cyber security 5416 Management, Scientific, Technical Consulting Services includes electronic security services consulting

Call centers/customer service and back

office/BPO/shared services 5616 Investigation & Security Services includes electronic security monitoring services

continued next page



Figure 6: The 5 broad targets for Southern Nevada (cont.)

4 Clean Energy



2211

2371

5413

Electric Power Generation, Transmission & Distribution

Utility System Construction

Architectural, Engineering, and Related Services

very difficult to separate energy-related activities; better to consider broad activities of the industry to see what fits best here






Warehousing and distribution 4931 Warehousing & Storage near exact match

Advanced logistics 4885 Freight Transportation Arrangement close match

Air cargo

4811 Scheduled Air Transportation close match, but may include passenger activities

4881 Support Activities for Air Transportation close match, but may include passenger activities


4244 Grocery & Related Product Merchant Wholesalers close match

4248 Beer, Wine, & Distilled Alcoholic Beverage Wholesalers close match


4821 Rail Transportation close match

4841 General Freight Trucking close match

4842 Specialized Freight Trucking close match

Integrated manufacturing-distribution & assembly mfg. 3399 All Other Miscellaneous Mfg. this activity could apply to a range of activities; better to look at some of the local niches to see where expertise lies

SOURCES: Brookings et al., Unify | Regionalize | Diversify: An Economic Development Agenda for Nevada; TIP Strategies



PRIORITIZATION SUMMARY

In conjunction with our analysis of wage and earnings potential, we also considered which of

the potential niches suggested by the Brookings study present the most realistic growth

opportunities for the region. This more subjective analysis was based on our understanding of

regional capacity based on interviews and analyses conducted as part of the planning process,

as well as the experience of the consulting team in evaluating target markets across the US.

The following section outlines the results of this prioritization process for each of the five target

sectors. Detailed tables, including location quotients and wages, are provided as Appendix A.


Clearly, the region has unique advantages in Tourism, Gaming, & Entertainment. Within this

broad sector, three niches appear potentially promising.

1) Miscellaneous manufacturing (NAICS 33999) includes the production of gaming

equipment. It employs 3,400 workers in the MSA, 2,100 of which were added in the

past ten years. This niche commands an LQ of 7.39, marginally higher than the

overall LQ for casinos. While gaming hardware offers clear economic development

potential, the foreseeable regulatory environment may make online gaming a bit more

challenging from a US perspective.

2) Event promotion (NAICS 711320) is a scalable industry that extends, or can extend,

well beyond local markets via touring, booking, facility management, etc. More than

half of the MSA's 1,200 employees in this industry were added in the past ten years.

The industry’s strong LQ (2.94) and higher-than-average wages make it an attractive

option for expansion efforts.

3) Corporate headquarters (NAICS 551114) in the MSA focus heavily on gaming-related

activities. The Brookings report suggests that Las Vegas has the opportunity to be

global leader in gaming, similar to Houston's control-center role in the energy sector.

Rather than using the gaming industry primarily as a means of expanding tourism in

Figure 6. Refined target industries

Industries well-suited for local capacity and potential


Center for online gaming



Diversifying into niche tourism markets

Retirees and second home owners

Film and media







E-commerce operations/headquarters



Cyber security

Call centers/customer service and back office/BPO/shared services

4 Clean Energy






Warehousing and distribution

Advanced logistics

Air cargo



Integrated manufacturing-distribution & assembly mfg.

SOURCES: Brookings et al., Unify | Regionalize | Diversify: An Economic Development

Agenda for Nevada; TIP Strategies



the region, this approach would focus on marketing the region’s homegrown expertise in gaming and related activities to the rest of the world.

All three of these niches pay relatively high wages and suggest economic development opportunities well beyond the MSA's core tourism industry.


As was true in much of the country, the growth of the comprehensive health care is worth highlighting. Virtually every segment of the sector is projected to see job growth in

the coming decade. Demographic trends, coupled with the region’s assets, such as the Cleveland Clinic Lou Ruvo Center for Brain Health, make Health & Medical

Services a logical fit.

Ambulatory health care services (NAICS 621) and hospitals (NAICS 622) were prioritized based on wages and relative advantage (LQs), as described below:

Wages vary dramatically within the sector

o Higher pay tends to be associated with hospitals (NAICS 622, Hospitals) and physician's offices as well as specialty technical services, such as labs,

dialysis centers, and imaging facilities (NAICS 621, Ambulatory health care services )

o Niches that deal with dependent care — services for children, seniors, and those of all ages in need of rehabilitation — tend to be the lower paying

aspects of the industry (NAICS 623, Nursing and residential care facilities and NAICS 624, Social assistance).

With a few exceptions, the MSA's LQs are either average (0.75 to 1.25) or below average.

o The surprisingly low LQ for privately run general hospitals (0.52) contrasts with near-average LQs for publicly operated general hospitals (0.95) and for

privately run specialty (1.07) and psychiatric (0.92) hospitals.

o The only above-average LQs within this sector were in medical labs (NAICS 621493), diagnostic imaging (NAICS 621511), emergency care (NAICS

621512)

Changing demographics and gradual implementation of the US Affordable Care Act will impact how job growth is distributed across the various niches. In any case, future

population growth in the MSA points to inevitable job growth in the health care sector in the decade ahead.



Business IT Ecosystem

The diverse groups of industries associated with Business IT Ecosystems have some notable features. Most have seen relatively strong employment growth over the past

decade, with two sectors more than doubling the number of jobs in the region between 2001 and 2011:

(1) Electronic shopping (NAICS 454111)

(2) Other scientific and technical consulting (NAICS 541690), which includes security consulting services

At the surface, the downside of this sector appears to be relatively low-to-average industry wages. Look closer, and most of the lower wages tend to be more closely

associated with telemarketing jobs (NAICS 561422) or the less-technological and more labor-oriented sided of security services, e.g., guards and patrols (NAICS 561612).

By contrast, wages associated with technical consulting fields are above average. However, the relative concentration of these jobs (LQ) is below average, suggesting lack

of a regional advantage for technical occupations.

However, the sophistication of security systems used by the region's gaming cluster offers intriguing possibilities for adaptation to a wider customer base. These types of

security consulting services would be incorporated under other scientific and technical consulting (NAICS 541690), which is a high-wage, high-growth industry nationally.

The challenge in expanding this sector from an economic development perspective will ultimately be the scale and depth of the region's skilled labor pool.

Clean Energy

One of the great challenges of clearly defining a Clean Energy sector is that the industry classification system does not neatly delineate between types of power or degrees

of efficiency. The default is to assign those industry niches that are likely to include the clean activities as well as the less clean.

The upside is that these industries are all relatively high paying, though the region’s concentration of employment relative to the US (LQs) mostly hold near average levels.

Job growth has been mixed, with some sectors growing by significant margins. For example, electric power distribution (NAICS 221122), added more than 1,300 jobs

between 2001 and 2011. However, this dramatic expansion is likely an anomaly, as the sector is typically small in terms of overall jobs and tends to be relatively slow

growing.

Despite its potential for high-wage jobs, there are a number of market considerations that affected prioritization of this sector. The first is the phase out of federal subsidies,

which have played an important role in recent growth in alternative energy, clean technologies, and energy efficiency initiatives. Stimulus spending to energy projects was

programmed for just a few, short years, and fiscal realities may preclude further allocations, at least to the same degree. Investment patterns for the sector are also closely

tied to energy costs. The relatively competitive price of fossil fuels in the medium term, especially natural gas, may affect additional development.

However, perhaps the most significant factor affecting the feasibility of clean energy as a target for the region is the lack of a clear mechanism for influencing policy and

local markets. The predominance of investor-owned utilities in the state — Hoover Dam appears to be an exception — makes it hard to create aggressive job-creating



energy efficiency policy. Those cities that have been most successful in their clean energy strategies, such as Austin, San Antonio, or Los Angeles, are driven by

municipally owned utilities, which can help underwrite the costs and provide aggressive policies in place.


Overall, logistics activities have provided the Las Vegas MSA with relatively strong job growth and good paying jobs over the past ten years. A look at the individual

industries shows a more mixed view. Job growth has been varied, with some sectors showing little or no growth during the decade and others expanding at a steady pace.

Wages are also mixed, with air-transportation-related segments and wholesaling of food and beverages having the highest wages.

A look at employment concentration relative to the US points to pronounced differences, most notably the strength in air transportation compared with the relative

weakness in ground activities. The high LQs for air-related activities is likely influenced by the presence of McCarran International Airport. The tourism industry has

provided McCarran with a solid catalyst for growth and the direct expansion of passenger service has inevitably offered some indirect opportunities in terms of air cargo

services. What's more surprising are the LQs for some of the ground distribution activities. Although metropolitan areas are not typically highly concentrated in aspects like

warehousing and distribution because of land costs, the very low LQs in the Las Vegas region for ground freight activities, such as General Freight Trucking (NAICS

484110) is surprising. However, unlike other targets where a low LQ might suggest a disadvantage, the changing scale of logistics operations may suggest this is an

opportunity for additional expansion.

The Southern California ports of Los Angeles and Long Beach form the nation's largest import gateway. The goods moving out of these ports once were distributed directly

from South Bay warehouses in Los Angeles and Orange Counties. Today, the scale of logistics operations has pushed retailers and third-party logistics operators to build

their distribution centers further on the fringes of the urbanized area, where land is cheaper and congestion is less problematic. Trucks and rail now move incoming

shipping containers immediately into San Bernardino and Riverside Counties to be unpacked and distributed regionally and nationwide. Is Las Vegas too far away to grab a

piece of this action? Not necessarily. Look further north, and Reno has begun to emerge as an inland distribution center, serving among other things, the Port of Oakland.

There may be a similar role in the future for Las Vegas to compete in this sphere. The lack of Class I rail competition in Nevada may be a limiting factor, but Reno's

success shows that this drawback may be only a minor one.



Priority industry sector profiles 3.

Figure 8 illustrates the prioritized industry sectors

and related opportunities. As outlined previously,

these selections represent our views on the

opportunities which:

Emphasize those jobs with higher earning

potential across all skill levels

Focus on the more realistic growth

opportunities with less focus on the more

daunting challenges

Capitalize on geography and location and

build on existing local capacities and

assets

Figure 9 (next page) provides an overview of

capital expenditure trends in the prioritized niche

markets (using the NAICS codes established in

Section 2). In addition, the section contains brief

profiles of the four major sectors. These profiles

provide an overview of market considerations,

including the national employment outlook, a

selection of major global players in the industry,

and labor capacity scenarios. These scenarios

help illustrate how different niche markets might

impact the region in terms of job creation.

Figure 7. Refined Brookings targets and niche industries

Industries well-suited for local capacity and potential

SOURCES: TIP Strategies, Inc.

Intellectual capital of global

gaming


Tourism,

Gaming, & Entertainment

Event promotion & management

Advanced logistics

Warehousing & distribution

Freight transportation (ground cargo)

Freight transportation

(air cargo)

Logistics &

Operations

Health &

Medical Services

Hospitals

Related medical services


E-commerce operations/

headquarters

Cybersecurity

Business IT

Ecosystems



Figure 8. Patterns of US capital expenditures in selected industries, 2005-2010

Outlays for buildings and equipment in the private sector (in $ billions)

Industry

Closest NAICS

match 2005 2006 2007 2008 2009 2010

Net change

2005-2010

All industries

$1,062.5 $1,217.1 $1,270.5 $1,294.5 $1,015.3 $1,036.2 -26.37 ▼


Corporate headquarters & regional operations 551 2.8 3.3 4.5 4.6 4.7 4.5 1.74 ▲

Other miscellaneous manufacturing 3399 2.2 2.2 3.1 2.8 2.4 2.2 -0.04 ▼

Performing arts, spectator sports, and related industries 711 2.1 2.3 3.3 2.9 2.4 1.7 -0.42 ▼


Offices of physicians 6211 5.7 6.2 6.9 7.1 5.4 6.4 0.70 ▲

Offices of dentists and other health practitioners 6212, 6213 4.1 3.0 4.4 3.7 3.3 4.0 -0.05 ▼

Medical and diagnostic laboratories 6215 1.9 1.5 1.5 2.0 1.7 1.7 -0.23 ▼

Home health care services 6216 0.8 1.0 1.2 0.9 0.8 1.4 0.56 ▲

Outpatient care centers and other ambulatory health care services 6214, 6219 4.6 3.8 5.2 5.1 4.8 4.5 -0.17 ▼

General medical and surgical hospitals 6221 41.8 43.4 49.3 55.9 49.1 48.1 6.30 ▲

Psychiatric, substance abuse, and specialty hospitals 6222, 6223 1.2 1.8 1.8 2.0 2.1 1.6 0.41 ▲

IT & Business Ecosystems

Nonstore retailers 454 3.8 3.9 4.5 4.2 3.5 5.9 2.10 ▲

Data processing, hosting, and related services 5182 3.0 2.9 3.2 4.1 4.0 7.5 4.51 ▲

Management, scientific, and technical consulting services 5416 3.5 3.1 2.9 3.3 2.3 5.1 1.60 ▲

Investigation, security, and services to buildings and dwellings 5616, 5617 5.1 3.9 4.2 3.5 4.0 3.3 -1.88 ▼


Warehousing and storage 493 1.8 3.2 2.7 3.6 2.6 2.9 1.09 ▲

Support activities for transportation 488 2.7 4.1 4.2 3.4 2.7 3.1 0.34 ▲

Truck transportation 484 17.6 18.8 10.7 14.3 8.8 10.4 -7.16 ▼

SOURCES: U.S. Bureau of the Census, Annual Survey of Capital Expenditures (various years)



TOURISM, GAMING, & ENTERTAINMENT

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An audacious mix of tourism, gaming, and entertainment dominates the economy of Las

Vegas and Clark County. The Achilles heel of this economy is a mix of volatility (cyclical

discretionary spending by visitors) and relatively low-wage job growth in services and

construction. Fortunately, there are many upsides. Global brand recognition is one. The

name Las Vegas is recognized around the world. Another upside is the competitive

presence of some of the world's major players from gaming to resort hotels, from luxury

retail to high-end restaurants, from Broadway to Hollywood, from low-brow wedding

chapels to high-brow art exhibitions. The challenge for the region is how to build on these

assets to create better jobs and a more stable economy.

The statewide suggestions provided by in the Brookings study provide a good roadmap, or

at least a starting point. The idea of becoming a "global intellectual capital" for gaming is

promising. The region is already the headquarters for some of the largest global players in

the casino and gaming industry. As the industry expands worldwide into places like Macau

and Singapore and beyond, Las Vegas and Clark County can serve as a command and

control center for the industry. This will require a greater pool of management and technical

expertise and the continued diversification of McCarran's international destinations and

passenger carriers. Houston's role in the global energy sector is cited as an example. Over

the decades, that city has transformed from a labor pool of regional wildcatters and

roughnecks into a highly educated, high-wage labor cluster of geologists, geotechnical

specialists, and engineers who are dispatched to oversee complex operations in far-flung

locations from Nigeria to Azerbaijan to the North Sea. In a similar way, Las Vegas, too, has

the potential to take a leading global role in gaming/resort management, gaming equipment

manufacturing, and in global event promotion. All of these niches represent growth

opportunities in the years ahead where Las Vegas and Clark County can emerge as an

international leader. More importantly, these niches would nudge the region's existing

assets toward creating a larger share of high-skilled, high-wage jobs—financial managers,

publicists, marketers, logistics technicians, computer specialists, accountants, etc.

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Industry NAICS match

Corporate headquarters & regional operations 551

Other miscellaneous manufacturing 3399

Performing arts, spectator sports, and related industries

711

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-1%

+0%

+1%

+2%

+3%

+4%

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+7%

2012

2013

2014

2015

2016

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2018

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2021

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Corporate HQs (5511)

Miscellaneous mfg,including gaming(3399)

Event promotion (7113)



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it has come an increased capacity for leisure activities like gaming and

entertainment. Capitalizing on this trend once meant bringing tourists to

Las Vegas and Clark County. More recently it has meant exporting

local expertise and management skills abroad. Nevada-based firms

now operate casinos and resorts in places like Macau and Singapore.

This trend is likely to continue and should be a model for other

segments of the industry beyond gaming.

Las Vegas has an expertise in staging and hosting events and

performances on a grand scale, from Cirque du Soleil to Comdex.

The regional labor pool behind these spectacles is somewhat unique

among major global metropolitan areas. Perhaps there are comps

(Los Angeles, Orlando, New York) but few places have similar depth

and experience. Using this talent pool to stage festivals, events, and

tours on a global scale is an aspect of the industry that could grow in

the coming decades as demand rises in emerging markets.

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Like all tourist-dependent activity, casino/resorts are subject to volatile business

cycles, with economic downturns impacting discretionary spending by

consumers.

Casino/resort operators are often dependent on a small number of capital and

labor intensive investments in key markets (similar to a semiconductor

manufacturer whose business revolves around 3 or 4 multi-billion dollar fabs --

the risks are not ideally spread out).

The gaming industry competes fiercely for the tastes and whims of consumers.

The legalization of gaming activities is expanding in US states and abroad. If this

happens too quickly, it could cut into the markets for existing investments.

The gaming sector is extensively regulated.

An abundant diversity of airlines and destinations is crucial for the success of

urban areas in general, but this is especially true for tourism-oriented

metropolitan areas. The more domestic and international flight options available,

the easier it is to build a successful economy in the 21st century.

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Figure 10. US capital expenditures in selected industries, 2005-2010

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Relevant trade associations

• American Gaming Association

• Gaming Standards Association

• Assn of Gaming Equipment Manufacturers

• World Lottery Association

• Int'l Assn of Venue Managers

• Travel Industries Association of America

• Int'l Assn of Convention & Visitors Bureaus

• International Travel Services Association

• US Tour Operators Association

• Meeting Professionals International

• World Leisure & Recreation Association

• American Hotel and Motel Association

SOURCE: TIP Strategies research SOURCES: U.S. Bureau of the Census, Annual Survey of Capital Expenditures (various years). Figures show % change in dollar value of outlays for

buildings and equipment in the private sector. Dollar values (in US$ billions) shown in Figure 9.

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All industries

Corporate headquarters & regional operations

Other miscellaneous manufacturing

Performing arts, spectator sports, and relatedindustries



TOURISM, GAMING, & ENTERTAINMENT (CONTINUED)

Figure 11. Selected global players, ranked by 2011 market capitalization

Sub-group NAICS

(if available) Company name City

State/

Province Country

2011 Sales revenue

(US$ millions)

2011 Market capitalization (US$ millions)

Worldwide employment

(if available)

1 Home entertainment software Nintendo Company Limited Kyoto-Shi Kyoto-fu Japan 12,202.6 34,567.5 4,928

2 Casinos & gaming 721120 Las Vegas Sands Corp. Las Vegas NV USA 9,410.7 31,331.8 40,000

3 Casinos & gaming Sands China Limited Hong Kong Hong Kong (China) 4,889.1 22,747.5 18,436

4 Casinos & gaming Genting Singapore PLC Kawloon Singapore 2,485.0 14,198.3 14,000

5 Casinos & gaming 721120 Wynn Resorts Limited Las Vegas NV USA 5,269.8 13,820.2 16,400

6 Casinos & gaming Genting Berhad Kuala Lumpur Malaysia 6,170.1 12,807.6

7 Casinos & gaming SJM Holdings Limited Hong Kong Hong Kong (China) 9,796.8 9,015.1 19,600

8 Home entertainment software 511210 Electronic Arts Inc Redwood City CA USA 3,589.0 6,850.8 9,200

9 Casinos & gaming 713210 International Game Technology Reno NV USA 1,957.0 5,115.3 4,600

10 Casinos & gaming 721120 MGM Resorts International Las Vegas NV USA 7,849.3 5,098.5 61,000

11 Casinos & gaming Kangwon Land Inc Jeongseon South Korea 1,092.3 5,022.0

12 Casinos & gaming MGM China Holdings Limited Macau Macau (China) 2,671.9 4,970.7

13 Casinos & gaming Tatts Group Limited Melbourne Victoria Australia 3,919.6 3,392.1

14 Casinos & gaming Echo Entertainment Group Limited Brisbane Queensland Australia 1,766.8 3,030.8

15 Casinos & gaming Penn National Gaming Inc Wyomissing PA USA 2,742.3 2,901.4 16,740

16 Casinos & gaming OPAP SA Athens Greece 5,645.7 2,822.3 995

17 Home entertainment software Konami Corp. Tokyo Tokyo-to Japan 3,103.6 2,522.2 5,362

18 Casinos & gaming Tabcorp Holdings Limited Melbourne Victoria Australia 3,159.2 2,426.1 3,000

19 Casinos & gaming William Hill PLC London England UK 1,765.1 2,051.1 15,900

20 Casinos & gaming Ladbrokes PLC Harrow England UK 1,515.7 1,817.5 15,220

21 Advertising Cyberagent Inc Tokyo Tokyo-to Japan 1,552.1 1,765.2 1,981

22 Movies & entertainment 711320 Live Nation Entertainment Inc Beverly Hills CA USA 5,384.0 1,575.1 6,600

23 Casinos & gaming Sun International Limited Sandton Gauteng South Africa 1,313.1 1,269.8 11,409

24 Movies & entertainment Daiichikosho Company Limited Tokyo Tokyo-to Japan 1,538.5 1,092.4 3,013

25 Casinos & gaming 721120 Boyd Gaming Corp. Las Vegas NV USA 2,336.2 645.8 22,960

Source: Thomson Reuters. Market capitalization as of year-end 2011 (in US dollars)



Figure 12. Labor capacity scenarios: Intellectual capital of global gaming (HQ offices)

Estimated distribution of 500 additional workers in the industry

LAS VEGAS MSA LABOR MARKET

SOC Primary occupations required

Existing

jobs at 2011-

year end

Estimated

new jobs

created

Local

median

hourly wage

Local median

wage as a %

of US median Skill preparation required

1 43-4051 Customer Service Representatives 11,284 21 $14.27 98% Moderate-term on-the-job training

2 13-2011 Accountants and Auditors 7,280 21 $26.06 93% Bachelor's degree

3 43-3031 Bookkeeping, Accounting, and Auditing Clerks 13,173 20 $15.78 98% Moderate-term on-the-job training

4 11-1021 General and Operations Managers 10,342 19 $40.58 95% Bachelor's or higher, plus experience

5 13-1199 Business Operations Specialists, All Other 3,605 15 $25.81 88% Bachelor's degree

6 43-9061 Office Clerks, General 19,703 13 $13.79 109% Short-term on-the-job training

7 11-3031 Financial Managers 5,981 13 $30.14 76% Bachelor's or higher, plus experience

8 43-1011 First-Line Supervisors/Mngrs of Office and Administrative Support Workers 9,052 12 $20.67 92% Work experience in a related occupation

9 43-6011 Executive Secretaries and Administrative Assistants 4,688 11 $21.75 109% Work experience in a related occupation

10 15-1051 Computer Systems Analysts 1,882 10 $36.40 100% Bachelor's degree

11 43-6014 Secretaries, Except Legal, Medical, and Executive 7,801 10 $16.01 112% Moderate-term on-the-job training

12 15-1041 Computer Support Specialists 3,020 9 $22.61 105% Associate's degree

13 13-1111 Management Analysts 5,880 8 $36.06 105% Bachelor's or higher, plus experience

14 11-9199 Managers, All Other 9,948 8 $25.04 105% Work experience in a related occupation

15 19-3021 Market Research Analysts 1,179 8 $29.79 101% Bachelor's degree

16 15-1031 Computer Software Engineers, Applications 1,245 8 $34.92 85% Bachelor's degree

17 13-1071 Employment, Recruitment, and Placement Specialists 1,238 7 $20.92 92% Bachelor's degree

18 11-3021 Computer and Information Systems Managers 938 7 $46.83 88% Bachelor's or higher, plus experience

19 13-2051 Financial Analysts 2,798 7 $26.39 80% Bachelor's degree

20 11-2022 Sales Managers 3,166 7 $32.85 80% Bachelor's or higher, plus experience

21 41-4012 Sales Reps., Wholesale and Mfg, Except Technical and Scientific Products 7,205 7 $23.20 97% Work experience in a related occupation

22 11-2021 Marketing Managers 1,805 7 $36.60 83% Bachelor's or higher, plus experience

23 43-3021 Billing and Posting Clerks and Machine Operators 2,551 6 $16.08 104% Short-term on-the-job training

24 15-1071 Network and Computer Systems Administrators 1,014 6 $30.40 93% Bachelor's degree

25 11-1011 Chief Executives 2,409 6 $45.44 81% Bachelor's or higher, plus experience

26 43-3011 Bill and Account Collectors 3,278 5 $15.99 106% Short-term on-the-job training

27 13-1022 Wholesale and Retail Buyers, Except Farm Products 780 5 $20.65 92% Long-term on-the-job training

28 53-7062 Laborers and Freight, Stock, and Material Movers, Hand 15,163 5 $12.01 106% Short-term on-the-job training

29 49-9042 Maintenance and Repair Workers, General 9,075 5 $20.11 121% Moderate-term on-the-job training

30 15-1081 Network Systems and Data Communications Analysts 1,468 5 $30.42 102% Bachelor's degree

SOURCES: U.S. Bureau of Labor Statistics, Occupational Employment Statistics, National Industry-Specific Estimates; and EMSI Complete Employment - 2012.2



Figure 13. Labor capacity scenarios: Event promotion (worldwide)




Existing

jobs at 2011-

year end

Estimated

new jobs

created

Local

median

hourly wage

Local median

wage as a %


1 39-3031 Ushers, Lobby Attendants, and Ticket Takers 1,257 92 $11.28 130% Short-term on-the-job training

2 33-9032 Security Guards 15,435 35 $12.60 108% Short-term on-the-job training

3 27-4011 Audio and Video Equipment Technicians 1,492 28 $22.22 118% Postsecondary vocational award


5 37-2011 Janitors and Cleaners, Except Maids and Housekeeping Cleaners 22,854 23 $13.20 125% Short-term on-the-job training

6 41-2011 Cashiers 22,236 15 $9.29 108% Short-term on-the-job training

7 39-3091 Amusement and Recreation Attendants 2,615 14 $9.43 104% Short-term on-the-job training


9 27-2042 Musicians and Singers 3,579 13 $21.13 118% Long-term on-the-job training



12 13-1121 Meeting and Convention Planners 683 11 $21.93 91% Bachelor's degree


14 35-3011 Bartenders 9,731 9 $14.03 158% Short-term on-the-job training


16 27-3031 Public Relations Specialists 1,043 8 $28.07 111% Bachelor's degree

17 35-3022 Counter Attendants, Cafeteria, Food Concession, and Coffee Shop 3,680 8 $10.24 117% Short-term on-the-job training

18 13-1011 Agents and Business Managers of Artists, Performers, and Athletes 372 6 $20.81 95% Bachelor's or higher, plus experience

19 27-2012 Producers and Directors 785 6 $28.56 99% Bachelor's or higher, plus experience

20 53-6021 Parking Lot Attendants 2,840 6 $9.24 100% Short-term on-the-job training

21 37-3011 Landscaping and Groundskeeping Workers 8,314 6 $11.02 101% Short-term on-the-job training


23 41-3099 Sales Representatives, Services, All Other 4,709 5 $19.07 83% Work experience in a related occupation


25 35-3031 Waiters and Waitresses 32,778 5 $10.22 120% Short-term on-the-job training


27 39-1021 First-Line Supervisors/Managers of Personal Service Workers 2,623 4 $14.45 108% Work experience in a related occupation


29 41-2031 Retail Salespersons 33,954 4 $10.27 103% Short-term on-the-job training

30 43-4171 Receptionists and Information Clerks 7,470 4 $12.72 103% Short-term on-the-job training




Figure 14. Labor capacity scenarios: Gaming manufacturing (miscellaneous manufacturing)




Existing

jobs at 2011-

year end

Estimated

new jobs

created

Local

median

hourly wage

Local median

wage as a %


1 51-2092 Team Assemblers 1,849 54 $12.58 97% Moderate-term on-the-job training

2 51-2099 Assemblers and Fabricators, All Other 486 21 $12.88 94% Moderate-term on-the-job training

3 41-4012 Sales Reps., Wholesale and Mfg., Except Technical and Scientific Products 7,205 21 $23.20 97% Work experience in a related occupation

4 51-1011 First-Line Supervisors/Managers of Production and Operating Workers 1,403 19 $23.07 94% Work experience in a related occupation

5 27-1024 Graphic Designers 2,079 13 $19.47 99% Bachelor's degree



8 51-4072 Molding, Coremaking, and Casting Machine Workers, Metal and Plastic 102 12 $16.95 126% Moderate-term on-the-job training

9 43-5071 Shipping, Receiving, and Traffic Clerks 3,893 11 $13.61 100% Short-term on-the-job training


11 51-4031 Cutting, Punching, and Press Machine Workers, Metal and Plastic 182 9 $14.88 106% Moderate-term on-the-job training


13 53-7064 Packers and Packagers, Hand 3,005 9 $10.31 106% Short-term on-the-job training

14 51-9198 Helpers--Production Workers 1,416 9 $9.41 88% Short-term on-the-job training


16 51-9061 Inspectors, Testers, Sorters, Samplers, and Weighers 1,187 8 $14.05 83% Moderate-term on-the-job training

17 51-9199 Production Workers, All Other 794 8 $13.61 95% Moderate-term on-the-job training


19 51-4041 Machinists 322 7 $15.79 87% Long-term on-the-job training

20 51-9121 Coating, Painting, and Spraying Machine Setters, Operators, and Tenders 215 6 $12.14 87% Moderate-term on-the-job training

21 51-2041 Structural Metal Fabricators and Fitters 316 5 $16.95 104% Moderate-term on-the-job training

22 51-9041 Extruding, Forming, Pressing, and Compacting Machine Workers 130 5 $14.62 102% Moderate-term on-the-job training

23 51-2022 Electrical and Electronic Equipment Assemblers 195 5 $14.78 107% Short-term on-the-job training

24 51-4081 Multiple Machine Tool Setters, Operators, and Tenders, Metal and Plastic 41 5 $17.89 117% Moderate-term on-the-job training

25 51-4121 Welders, Cutters, Solderers, and Brazers 920 5 $18.67 113% Postsecondary vocational award

26 51-7042 Woodworking Machine Setters, Operators, and Tenders, Except Sawing 103 5 $11.65 95% Moderate-term on-the-job training

27 51-9123 Painting, Coating, and Decorating Workers 320 5 $13.41 120% Short-term on-the-job training

28 11-3051 Industrial Production Managers 330 5 $32.39 81% Work experience in a related occupation




HEALTH & MEDICAL SERVICES

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Over the next 10 years, privately run US hospitals alone are expected to add nearly

700,000 new jobs. On top of this, the health sector will add another 2.4 million jobs over the

same period in related medical services such as physician's offices, labs, diagnostic

centers, and clinics. Much of this job growth will be based on increased population size and

the changing composition of US residents by age.

The package of federal health care reform laws passed in 2010 will be phased in gradually

over a period of years and will likewise have an impact on how the health care sector

grows. At the time the health care reforms were passed in 2010, one-quarter of Clark

County residents who were below the Medicare eligibility age of 65 were uninsured.

Because health insurance coverage is mandated under the federal reforms, the industry

outlook, in theory at least, calls for a greater pool of patients to be brought into the less

expensive umbrella of routine preventative care, thus bringing down the costs of publicly

funded emergency care and hospitalization.

Both hospitals and the supporting medical services employ many of the same

occupations—physicians, registered nurses, lab technicians—so from a labor

preparedness standpoint, the specific distribution of jobs across these two categories is not

a major concern. What is important is that population growth and evolving demographics in

the Las Vegas MSA point to inevitable local job creation in the health care sector.

In addition, healthcare activities require a wide range of skillsets, offering job opportunities

that can meet the diverse capacities of most local workforces. This is an ideal target for

fast-growing metropolitan area. It presents a wide range of opportunities for closer regional

collaboration among local governments, economic development and workforce agencies,

and higher education institutions. D

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Offices of physicians 6211

Offices of dentists and other health practitioners 6212, 6213

Medical and diagnostic laboratories 6215

Home health care services 6216

Outpatient and other ambulatory health care svcs 6214, 6219

General medical and surgical hospitals 6221

Psychiatric, substance abuse, and specialty hospitals 6222, 6223

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-1%

+0%

+1%

+2%

+3%

+4%

+5%

+6%

+7%

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

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Privately run hospitals(622)

Supporting medicalservices (621)



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E The future of service delivery is one of the issues at the core of the

national healthcare debate. Many believe that IT advancements in

the industry will enable medical records to be shared and lab results

to be analyzed remotely. Some of this may indeed be true, but

healthcare practitioners, clinics, and hospitals will still need to

maintain a large physical presence even in remote areas since basic

healthcare will always require face-to-face contact for most activities

involving patient care.

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The aging US population will drive growth in the healthcare sector nationwide.

Healthcare is relatively well insulated from economic cycles, but with the new

federal healthcare initiative the sector will force structural change, benefiting

some aspects of the industry and perhaps inhibiting others. This may also

benefit some geographic areas at the expense of others. It is too soon to tell how

these scenarios may play out.

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• American Hospital Association

• American Healthcare Association

• Advanced Medical Technology Association

• Health Insurance Association of America

SOURCES: U.S. Bureau of the Census, Annual Survey of Capital Expenditures (various years). Figures show % change in dollar value of outlays for


SOURCE: TIP Strategies research

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Healthcare

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Offices of physicans

Offices of dentists and other healthpractitionersMedical and diagnostic laboratories

Home health care services

Outpatient and other ambulatory health careservicesGeneral medical and surgical hospitals

Psychiatric, substance abuse, and specialtyhospitals



HEALTH & MEDICAL SERVICES (CONTINUED)


Sub-group NAICS


State/

Province Country

2011 Sales revenue

(US$ millions)



(if available)

1 Managed health care 524114 UnitedHealth Group Inc Minnetonka MN USA 101,874.0 52,656.5 99,000

2 Managed health care 524114 Wellpoint Inc Indianapolis IN USA 60,804.0 22,483.4 37,700

3 Health care services 524298 Express Scripts Holding Company St Louis MO USA 46,272.3 21,656.0 13,120

4 Health care services Fresenius SE Bad Homburg Germany 21,401.6 15,114.3 149,351

5 Managed health care 524114 Aetna Inc Hartford CT USA 33,790.0 14,753.8 33,300

6 Managed health care 621491 Humana Inc Louisville KY USA 36,832.0 14,368.4 40,000

7 Managed health care 524114 Cigna Corp. Bloomfield CT USA 22,024.0 11,992.4 31,400

8 Health care facilities 622110 HCA Holdings Inc Nashville TN USA 32,506.0 9,637.6

9 Health care services 621511 Quest Diagnostics Inc Madison NJ USA 7,510.5 9,139.8 42,000

10 Health care services 621511 Laboratory Corp. Of America Holdings Burlington NC USA 5,542.3 8,407.9 31,000

11 Health care services 621492 Davita Inc Denver CO USA 6,982.2 7,099.0 41,000

12 Managed health care Coventry Health Care Inc Bethesda MD USA 12,273.1 4,287.4 14,400

13 Health care services 446110 Omnicare Inc Cincinnati OH USA 6,182.9 3,914.3 14,600

14 Health care facilities Universal Health Services Inc King of Prussia PA USA 7,500.2 3,754.2 46,500

15 Health care services 511210 Catamaran Corp. Lisle IL USA 4,975.5 3,523.4 1,433

16 Managed health care Amerigroup Corp. Virginia Beach VA USA 6,318.4 2,769.6 5,100

17 Managed health care 524114 Health Net Inc Woodland Hills CA USA 11,901.0 2,493.1 7,471

18 Managed health care 524114 Wellcare Health Plans Inco Tampa FL USA 6,106.9 2,249.6 3,990

19 Health care facilities 623311 Brookdale Senior Living Inc Brentwood TN USA 2,457.9 2,179.9 46,400

20 Health care facilities 622110 Tenet Healthcare Corp. Dallas TX USA 9,584.0 2,129.1 57,705

21 Managed health care 524114 Centene Corp. St Louis MO USA 5,354.0 2,013.7 5,300

22 Health care facilities 622110 Health Management Association Inc Naples FL USA 5,804.5 1,873.1 40,600

23 Health care facilities 622110 Lifepoint Hospitals Inc Brentwood TN USA 3,544.6 1,794.6 23,000

24 Health care facilities 622110 Community Health Systems Inc Franklin TN USA 13,626.2 1,634.1 88,000

25 Managed health care 561110 Magellan Health Services Avon CT USA 2,799.4 1,344.3 4,800




Figure 18. Labor capacity scenarios: Hospitals




Existing

jobs at 2011-

year end

Estimated

new jobs

created

Local

median

hourly wage

Local median

wage as a %


1 29-1111 Registered Nurses 11,834 145 $35.34 116% Associate's degree

2 31-1012 Nursing Aides, Orderlies, and Attendants 3,544 36 $15.32 133% Postsecondary vocational award

3 29-2061 Licensed Practical and Licensed Vocational Nurses 1,749 14 $23.38 122% Postsecondary vocational award

4 43-6013 Medical Secretaries 1,604 12 $16.50 114% Moderate-term on-the-job training

5 29-2034 Radiologic Technologists and Technicians 795 12 $32.63 127% Associate's degree

6 11-9111 Medical and Health Services Managers 1,444 11 $41.84 108% Bachelor's or higher, plus experience

7 37-2012 Maids and Housekeeping Cleaners 25,704 11 $11.87 131% Short-term on-the-job training


9 29-2011 Medical and Clinical Laboratory Technologists 643 9 $32.49 123% Bachelor's degree

10 29-1126 Respiratory Therapists 399 8 $31.66 123% Associate's degree

11 43-4111 Interviewers, Except Eligibility and Loan 1,741 8 $17.05 115% Short-term on-the-job training

12 29-1069 Physicians and Surgeons, All Other 1,212 8 $89.30 118% First professional degree

13 31-9092 Medical Assistants 3,455 6 $15.09 109% Moderate-term on-the-job training

14 29-2071 Medical Records and Health Information Technicians 882 6 $15.54 103% Associate's degree

15 31-9099 Healthcare Support Workers, All Other 1,623 6 $17.35 120% Short-term on-the-job training

16 29-2012 Medical and Clinical Laboratory Technicians 554 6 $14.80 85% Associate's degree



19 29-2055 Surgical Technologists 560 6 $23.44 122% Postsecondary vocational award

20 29-1051 Pharmacists 1,738 6 $52.79 101% First professional degree

21 29-2052 Pharmacy Technicians 2,021 5 $15.75 117% Moderate-term on-the-job training

22 29-1123 Physical Therapists 1,026 5 $38.52 108% Master's degree


24 43-1011 First-Line Supervisors/Mgrs of Office and Administrative Support Workers 9,052 4 $20.67 92% Work experience in a related occupation

25 35-3041 Food Servers, Nonrestaurant 1,075 4 $11.76 125% Short-term on-the-job training


27 21-1022 Medical and Public Health Social Workers 620 4 $29.96 133% Bachelor's degree


29 29-2099 Health Technologists and Technicians, All Other 493 4 $25.65 117% Postsecondary vocational award

30 29-2041 Emergency Medical Technicians and Paramedics 875 3 $15.28 106% Postsecondary vocational award




Figure 19. Labor capacity scenarios: Related medical services




Existing

jobs at 2011-

year end

Estimated

new jobs

created

Local

median

hourly wage

Local median

wage as a %


1 29-1111 Registered Nurses 11,834 43 $35.34 116% Associate's degree

2 31-9092 Medical Assistants 3,455 35 $15.09 109% Moderate-term on-the-job training

3 31-1011 Home Health Aides 4,936 28 $9.90 101% Short-term on-the-job training

4 43-6013 Medical Secretaries 1,604 28 $16.50 114% Moderate-term on-the-job training


6 31-9091 Dental Assistants 1,803 23 $14.02 88% Moderate-term on-the-job training

7 39-9021 Personal and Home Care Aides 4,426 21 $9.93 104% Short-term on-the-job training


9 29-2061 Licensed Practical and Licensed Vocational Nurses 1,749 15 $23.38 122% Postsecondary vocational award

10 29-2021 Dental Hygienists 969 15 $38.81 117% Associate's degree

11 29-1069 Physicians and Surgeons, All Other 1,212 14 $89.30 118% First professional degree



14 29-2041 Emergency Medical Technicians and Paramedics 875 9 $15.28 106% Postsecondary vocational award


16 29-1123 Physical Therapists 1,026 8 $38.52 108% Master's degree

17 31-1012 Nursing Aides, Orderlies, and Attendants 3,544 7 $15.32 133% Postsecondary vocational award

18 29-1021 Dentists, General 928 7 $80.06 114% First professional degree

19 11-9111 Medical and Health Services Managers 1,444 6 $41.84 108% Bachelor's or higher, plus experience

20 29-2034 Radiologic Technologists and Technicians 795 6 $32.63 127% Associate's degree

21 29-1062 Family and General Practitioners 1,055 6 $76.29 106% First professional degree

22 31-9099 Healthcare Support Workers, All Other 1,623 6 $17.35 120% Short-term on-the-job training

23 29-2012 Medical and Clinical Laboratory Technicians 554 5 $14.80 85% Associate's degree


25 29-2071 Medical Records and Health Information Technicians 882 5 $15.54 103% Associate's degree

26 29-1071 Physician Assistants 349 5 $43.88 107% Master's degree

27 29-2099 Health Technologists and Technicians, All Other 493 4 $25.65 117% Postsecondary vocational award

28 29-2011 Medical and Clinical Laboratory Technologists 643 4 $32.49 123% Bachelor's degree






BUSINESS IT ECOSYSTEMS

CO

MP

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E L

AN

DS

CA

PE

& O

UT

LO

OK

Some technology services such as data centers can be quite capital intensive, making

them a potentially important generator of real and personal property taxes. Corporate

search criteria for data centers may include specific requirements for utility costs and

reliability, location security, and meticulous building specs, such as large floor plates and

under-floor wiring. From an economic development perspective there will also be

challenges. Climate may be a consideration for some users as cooling costs in hot climates

can raise the carbon footprints of such facilities. Also, despite the significant real estate

needs of data centers, they can sometimes be rather limited job creators. Still, they do offer

a reasonable prospect for regional economic diversification and higher skilled jobs, even if

limited.

Other aspects of what the Brookings Institution's study calls "Business IT Ecosystems"

present even better opportunities. Thanks to companies like Zappos, e-commerce already

has a skilled labor pool and high-profile foothold in the regional economy. It's also a very

good crossfit with the logistics and operations sector. E-commerce offers solid growth

prospects as US and global consumer spending for discretionary personal and household

items gradually shifts from local brick-and-mortar to internet retailing.

Finally, cybersecurity poses an unusual opportunity for the regional economy. The internet

and globalization may have increased overall economic activity, but they have also added

new types of business risks that require solutions. In Las Vegas and Clark County, casinos

and entertainment venues have long required a high degree of security, both traditional

ground operations and the more technologically sophisticated options for audio/visual and

electronic surveillance. The creative systems developed and employed by regional gaming

and entertainment venues may have significant potential to be adapted and marketed to a

wider global base of customers. Wedding traditional security services and electronic

surveillance with the region's growing IT labor pool offers intriguing entrepreneurial

possibilities.

DE

FIN

ITIO

N


Nonstore retailers 454

Data processing, hosting, and related services 5182

Management, scientific, and technical consulting services

5416

Investigation, security, and services to buildings and dwellings

5616, 5617

US

EM

PL

OY

ME

NT

OU

TL

OO



-1%

+0%

+1%

+2%

+3%

+4%

+5%

+6%

+7%

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

% c

hang

e in

tota

l em

ploy

men

t fro

m p

rior

year

, US

ALL US JOBS

E-commerce (4541)

Data processing &hosting (5182)

Technical consulting,including security(5416)

Investigation & securitymonitoring (5616)



BUSINESS IT ECOSYSTEMS (CONTINUED) M

AR

KE

TS

& C

US

TO

ME

R B

AS

E Electronic safety and security services form a broad, loosely defined

market that is shaped by business and consumer needs. In the

federal government, cabinet level agencies like Homeland Security

and Defense have become much bigger players in this market since

9/11. In the private sector, the gaming industry has its own distinct

electronic security needs, and the overwhelming concentration of

casinos and gaming-related activities in Clark County has provided a

rich seedbed for advanced security systems to develop and evolve.

This is a process that will continue in the years ahead, but it will take

entrepreneurial vision to find ways to adapt and export local expertise

in electronic, audio/visual, and cybersecurity systems to a wider

customer base.

AD

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ION

AL

CO

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IDE

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TIO

NS

Certain types of technology services such as e-commerce and corporate data

centers offer potential as major generators of public revenue. These types of

organizations can be important economic development partners for local

governments and utility companies. The downside of corporate data centers is

that staffing levels are often rather thin relative to the size of capital investment.

A steady supply of high-skilled labor can be a major drawing card for potential

employers, especially in this target cluster. Because of the vitality of the Las

Vegas brand and a low cost of living (relative to coastal cities), it may be easier

to attract young college graduates from California and beyond. The presence of

Zappos is likely to burnish the region's image with some younger tech workers.

Corporate search criteria for data centers may include stringent requirements for

utility costs and reliability, location security, and building construction.

A gap in cybersecurity protocol -- both technical and regulatory -- presents both

opportunities and challenges for businesses, governments, and consumers.

INV

ES

TM

EN

T P

AT

TE

RN

S


NE

TW

OR

KIN

G


• Information Systems Security Association

• Telecommunications Industry Association

• Assn for Computer Operations Mgmt

• Information Technology Industry Council

• Information Technology Assn of America

• Business Software Alliance

• Electronic Security Association




-0.4

0.0

0.4

0.8

1.2

2006 2007 2008 2009 2010

% c

hang

e fr

om p

rior

year

Business IT

All industries

Nonstore retailers

Data processing, hosting, and relatedservices

Management, scientific, and technicalconsulting services

Investigation, security, and services tobuildings and dwellings



BUSINESS IT ECOSYSTEMS (CONTINUED)


Sub-group NAICS


State/

Province Country

2011 Sales revenue

(US$ millions)



(if available)

1 Data proc & outsourced srvcs 518210 Automatic Data Processing Inc Roseland NJ USA 9,879.5 26,508.1 57,000

2 Security & alarm services Secom Company Limited Tokyo Tokyo-to Japan 7,986.6 10,137.5 34,063

3 IT consulting & other srvcs 519130 Teradata Corp. Dayton OH USA 2,362.0 8,115.7 8,600

4 Security & alarm services G4S PLC Crawley England UK 11,680.2 5,927.3 639,904

5 IT consulting & other srvcs 541512 SAIC Inc McLean VA USA 10,587.0 4,190.9 41,100

6 Data proc & outsourced srvcs 518210 Global Payments Inc Atlanta GA USA 1,859.8 3,806.3 3,796

7 Data proc & outsourced srvcs Computer Sciences Corp. Falls Church VA USA 16,042.0 3,661.2 98,000

8 Security & alarm services Securitas AB Stockholm Sweden 9,286.4 3,143.6 272,425

9 Security & alarm services Prosegur SA Madrid Madrid Spain 3,638.0 2,506.1 118,285

10 IT consulting & other srvcs 5614 Servicesource International Inc San Francisco CA USA 205.5 1,138.6 2,110

11 Data proc & outsourced srvcs 561499 Teletech Holdings Inc Englewood CO USA 1,170.1 917.5 42,300

12 IT consulting & other srvcs 517919 Interxion Holding NV Schiphol-Rijk Netherlands 316.5 889.8 347

13 Security & alarm services Secom Joshinetsu Company Niigata-Shi Niigata-ken Japan 256.6 394.3 1,759

14 IT consulting & other srvcs Phoenix It Group PLC Northampton England UK 435.3 241.0 2,728

15 IT consulting & other srvcs 541512 NCI Inc Reston VA USA 558.3 158.2 2,600

16 Security & alarm services Digital Barriers PLC London UK 10.5 143.0 183

17 IT consulting & other srvcs 541512 Dynamics Research Corp. Andover MA USA 322.6 117.1 1,500

18 IT consulting & other srvcs Time Engineering Berhad Kuala Lumpur Malaysia 20.6 64.8

19 IT consulting & other srvcs KCP Company Limited Seoul South Korea 98.0 61.3 140

20 IT consulting & other srvcs Cybercom Group Europe AB Stockholm Sweden 211.0 52.3 1,564

21 IT consulting & other srvcs 541519 Widepoint Corp. Oakbrook Terrace IL USA 41.4 43.5 163

22 IT consulting & other srvcs AGS Corp. Urawa-Ku Saitama Japan 202.0 42.8 935

23 IT consulting & other srvcs 423430 PFSweb Inc Allen TX USA 298.8 42.0 1,400

24 IT consulting & other srvcs Techmatrix Corp. Tokyo Tokyo-to Japan 182.9 41.8 778

25 IT consulting & other srvcs Advanced Control & Systems Inc Taipei Taiwan 56.0 37.5 297




Figure 23. Labor capacity scenarios: E-commerce




Existing

jobs at 2011-

year end

Estimated

new jobs

created

Local

median

hourly wage

Local median

wage as a %



2 43-4151 Order Clerks 1,666 58 $13.77 98% Short-term on-the-job training





7 43-5081 Stock Clerks and Order Fillers 10,378 19 $11.08 109% Short-term on-the-job training





12 41-9041 Telemarketers 2,309 9 $10.32 95% Short-term on-the-job training

13 41-4012 Sales Reps, Wholesale and Mfg, Except Technical and Scientific Products 7,205 8 $23.20 97% Work experience in a related occupation


15 29-2052 Pharmacy Technicians 2,021 7 $15.75 117% Moderate-term on-the-job training

16 43-9021 Data Entry Keyers 1,167 7 $13.99 94% Moderate-term on-the-job training

17 53-7051 Industrial Truck and Tractor Operators 1,775 7 $15.22 107% Short-term on-the-job training

18 13-1022 Wholesale and Retail Buyers, Except Farm Products 780 7 $20.65 92% Long-term on-the-job training



21 51-9111 Packaging and Filling Machine Operators and Tenders 745 6 $12.94 107% Short-term on-the-job training

22 29-1051 Pharmacists 1,738 6 $52.79 101% First professional degree


24 27-1024 Graphic Designers 2,079 5 $19.47 99% Bachelor's degree

25 41-9099 Sales and Related Workers, All Other 2,249 5 $19.92 102% Moderate-term on-the-job training




29 53-3033 Truck Drivers, Light or Delivery Services 5,027 4 $15.38 113% Short-term on-the-job training

30 15-1021 Computer Programmers 1,242 4 $33.89 103% Bachelor's degree




Figure 24. Labor capacity scenarios: Corporate data centers




Existing

jobs at 2011-

year end

Estimated

new jobs

created

Local

median

hourly wage

Local median

wage as a %









8 15-1032 Computer Software Engineers, Systems Software 927 19 $40.06 91% Bachelor's degree





13 43-9011 Computer Operators 296 14 $18.26 101% Moderate-term on-the-job training





18 15-1061 Database Administrators 299 8 $38.62 112% Bachelor's degree



21 41-4011 Sales Reps, Wholesale and Mfg, Technical and Scientific Products 1,322 6 $25.12 75% Work experience in a related occupation

22 15-1099 Computer Specialists, All Other 829 6 $32.33 89% Associate's degree


24 43-9051 Mail Clerks and Mail Machine Operators, Except Postal Service 668 5 $12.23 99% Short-term on-the-job training

25 43-5061 Production, Planning, and Expediting Clerks 850 5 $21.49 103% Moderate-term on-the-job training









Figure 25. Labor capacity scenarios: Cybersecurity (technology)




Existing

jobs at 2011-

year end

Estimated

new jobs

created

Local

median

hourly wage

Local median

wage as a %














13 19-2041 Environmental Scientists and Specialists, Including Health 498 9 $35.10 118% Master's degree


15 15-1032 Computer Software Engineers, Systems Software 927 7 $40.06 91% Bachelor's degree




19 13-2051 Financial Analysts 2,798 5 $26.39 80% Bachelor's degree


21 17-2081 Environmental Engineers 126 5 $37.37 101% Bachelor's degree


23 13-1073 Training and Development Specialists 1,003 4 $23.53 93% Bachelor's degree

24 11-2021 Marketing Managers 1,805 4 $36.60 83% Bachelor's or higher, plus experience



27 11-9199 Managers, All Other 9,948 4 $25.04 105% Work experience in a related occupation







Figure 26. Labor capacity scenarios: Cybersecurity (ground operations)




Existing

jobs at 2011-

year end

Estimated

new jobs

created

Local

median

hourly wage

Local median

wage as a %



2 49-2098 Security and Fire Alarm Systems Installers 612 20 $22.81 121% Postsecondary vocational award

3 33-1099 First-Line Supervisors/Managers, Protective Service Workers, All Other 1,033 13 $21.67 101% Work experience in a related occupation

4 33-9021 Private Detectives and Investigators 317 8 $25.36 124% Work experience in a related occupation

5 49-9094 Locksmiths and Safe Repairers 223 7 $21.23 140% Moderate-term on-the-job training







12 49-1011 First-Line Supervisors/Managers of Mechanics, Installers, and Repairers 2,160 3 $29.27 105% Work experience in a related occupation



15 33-9099 Protective Service Workers, All Other 888 2 $18.87 133% Short-term on-the-job training

16 41-2011 Cashiers 22,236 1 $9.29 108% Short-term on-the-job training

17 41-9041 Telemarketers 2,309 1 $10.32 95% Short-term on-the-job training





22 53-3032 Truck Drivers, Heavy and Tractor-Trailer 5,897 1 $21.50 120% Short-term on-the-job training

23 43-9199 Office and Administrative Support Workers, All Other 5,407 1 $14.90 98% Short-term on-the-job training

24 43-5021 Couriers and Messengers 2,242 1 $13.71 105% Short-term on-the-job training










LOGISTICS & OPERATIONS

CO

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ET

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E L

AN

DS

CA

PE

& O

UT

LO

OK

Although large wholesalers and big-box retailers often manage their logistics and

distribution activities in-house, the remainder of the market is increasingly served by third-

party logistics providers (3PLs). Proximity to Southern California via I-15 gives the Las

Vegas MSA an advantage in terms of both location and cost for certain types of distribution

activities by wholesalers, trucking companies, and logistics providers. New distribution

facilities, whether operated in-house or through 3PLs, will increasingly use information

technology to manage inventory control and costs. Logistics and distribution activities will

add more than 400,000 jobs in the US over the coming decade. This sector also provides

an excellent crossfit with e-commerce activities.

Air cargo development may be more challenging than ground freight development, but

should not be ignored. Part of the challenge has been the limited growth in volume in

recent years, but much of this has been blamed on declining postal activity. Other aspects

of the sector—especially high-weight-to-value cargo such as pharmaceuticals, perishables,

and IT components—are likely to see growth. Aggressive expansion and diversification of

McCarran Airport's carriers and destinations will inevitably benefit the region, in terms of air

passengers as well as air cargo.

DE

FIN

ITIO

N


Warehousing and storage 493

Support activities for transportation 488

Truck transportation 484

US

EM

PL

OY

ME

NT

OU

TL

OO



-1%

+0%

+1%

+2%

+3%

+4%

+5%

+6%

+7%

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

% c

hang

e in

tota

l em

ploy

men

t fro

m p

rior

year

, US

ALL US JOBS

Warehousing &distribution (4931)

Advanced logistics(4885)

Freight transport, aircargo (4881)

Freight transport,ground cargo (4841)



LOGISTICS & OPERATIONS (CONTINUED) M

AR

KE

TS

& C

US

TO

ME

R B

AS

E Proximity to customers (rather than suppliers) is a major issue for

the distribution sector. The US supports a handful of "super hubs"

-- Los Angeles, Chicago, Dallas/Fort Worth, Atlanta, New Jersey)

that handle much of the nation's hub-and-spoke distribution

activities. The interstates leading into these super hubs are

ground zero for wholesalers, freight haulers, and logistics

operators. IH-15 in Clark County is suitable for distributors since

this artery connects directly to Southern California.

In terms of airport activity, LAX was once an international hub of

the US West Coast. The airport has lost some of its

competitiveness in recent years, allowing other airports in the

Pacific and Western states to pick up some of the slack. Trans-

Pacific economic growth will continue to present opportunities for

West Coast and interior airports in the next few years.

AD

DIT

ION

AL

CO

NS

IDE

RA

TIO

NS

Logistics operations require ample supplies of flat industrial-zoned sites with good

transportation connections. Some of these facilities today exceed 1 million square

feet, with sites generating high volumes of ingress and egress.

Both healthcare and food processing share strong overlaps with the logistics/distribution

sector. Many companies specialize in food, grocery, and restaurant distribution. Others

focus on high-value medical supplies for hospitals and pharmacies.

Structural declines in postal services and a severe recession have impacted air

cargo volumes in recent years. Trafficking in high-weight-to-value cargos, however,

is likely to accelerate in the years ahead. International airports with adequate

capacity and geographic advantages are best positioned to win a share of this

expanding pie. International cargo carriers (especially Asian ones) may be looking

for US West Coast locations to base their North American/Pacific activities.

Regional strengths in the aviation sector (e.g., fighter pilot training at Nellis AFB) do not

necessarily have direct commercial applications for the region, but there may be distinct

indirect advantages. For example, skills in military aircraft maintenance translate very

well to the air logistics sector, where experienced teams are needed on the ground.

INV

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• American Trucking Association

• Independent Medical Distributors Association

• Industrial Truck Association

• Intermodal Association of North America

• Int'l Association of Medical Equip. Remarketers

• Int'l Association of Refrigerated Warehouses

• Int'l Foodservice Distributors Association

• Int'l Warehouse Logistics Association




-0.4

0.0

0.4

0.8

1.2

2006 2007 2008 2009 2010

% c

hang

e fr

om p

rior

year

Logistics

All industries

Warehousing and storage

Support activities for transportation

Truck transportation



LOGISTICS & OPERATIONS (CONTINUED)


Sub-group NAICS


State/

Province Country

2011 Sales revenue

(US$ millions)



(if available)

1 Air Freight & Logistics 492110 United Parcel Service Inc Atlanta GA USA 53,206.0 70,482.0 398,000

2 Air Freight & Logistics 492110 FedEx Corp. Memphis TN USA 39,304.0 26,472.7 278,600

3 Health Care Distributors 424210 McKesson Corporation San Francisco CA USA 112,084.0 19,633.3 37,700

4 Air Freight & Logistics Deutsche Post AG Bonn Germany 68,431.5 18,605.1 423,502

5 Food Distributors 4244 Sysco Corp. Houston TX USA 39,323.5 17,351.0 47,800

6 Health Care Distributors 424210 Cardinal Health Inc Dublin OH USA 102,644.2 14,258.2 32,500

7 Air Freight & Logistics 488510 CH Robinson Worldwide Inc Eden Prairie MN USA 10,336.4 11,404.9 8,353

8 Health Care Distributors 424210 AmerisourceBergen Corp. Chesterbrook PA USA 80,217.6 9,706.3 10,300

9 Distributors 423120 Genuine Parts Company Atlanta GA USA 12,458.9 9,526.0 29,800

10 Air Freight & Logistics 488510 Expeditor International Of Washington Seattle WA USA 6,150.5 8,683.7 13,590

11 Health Care Distributors Henry Schein Inc Melville NY USA 8,530.2 5,794.1 15,000

12 Trucking 484121 Hunt JB Transport Services Inc Lowell AR USA 4,526.8 5,270.1 15,631

13 Technology Distributors 423690 Avnet Inc Phoenix AZ USA 26,534.4 4,750.5 19,100

14 Distributors 423140 LKQ Corp. Chicago IL USA 3,269.9 4,420.2 17,900

15 Technology Distributors 423690 Arrow Electronics Inc Melville NY USA 21,390.3 4,183.0 15,700

16 Health Care Distributors 423450 Patterson Companies Inc St Paul MN USA 3,415.7 3,574.9 7,059

17 Technology Distributors 423430 Ingram Micro Inc Santa Ana CA USA 36,328.7 2,719.1 15,500

18 Air Freight & Logistics Panalpina Welttransport Basel Switzerland 6,929.3 2,423.7 15,700

19 Technology Distributors 423610 Anixter International Inc Glenview IL USA 6,146.9 1,981.7 8,200

20 Food Distributors 424490 United Natural Foods Inc Providence RI USA 4,530.0 1,940.2 6,900

21 Technology Distributors 423430 Tech Data Corp. Clearwater FL USA 26,488.1 1,865.5

22 Health Care Distributors 423450 Owens & Minor Inc Mechanicsville VA USA 8,627.9 1,763.3 4,800

23 Trucking 492110 CON-Way Inc Ann Arbor MI USA 5,290.0 1,621.2 27,800

24 Air Freight & Logistics 541618 UTI Worldwide Inc Long Beach CA USA 4,914.2 1,366.7 21,077

25 Air Freight & Logistics 488510 HUB Group Inc Downers Grove IL USA 2,751.5 1,216.8 1,616




Figure 30. Labor capacity scenarios: Freight transportation (ground cargo)




Existing

jobs at 2011-

year end

Estimated

new jobs

created

Local

median

hourly wage

Local median

wage as a %





4 49-3031 Bus and Truck Mechanics and Diesel Engine Specialists 1,034 17 $22.24 119% Postsecondary vocational award

5 43-5032 Dispatchers, Except Police, Fire, and Ambulance 1,729 14 $14.73 89% Moderate-term on-the-job training

6 53-1031 First-Line Sups/Mgrs of Transp and Material-Moving Machine/Vehicle Operators 1,028 11 $22.24 89% Work experience in a related occupation







13 11-3071 Transportation, Storage, and Distribution Managers 490 4 $30.56 84% Work experience in a related occupation

14 43-5011 Cargo and Freight Agents 388 4 $20.93 118% Moderate-term on-the-job training


16 53-1021 First-Line Supervisors/Mgrs of Helpers, Laborers, and Material Movers, Hand 821 3 $19.80 96% Work experience in a related occupation





21 53-3031 Driver/Sales Workers 1,540 2 $9.88 90% Short-term on-the-job training






27 43-3051 Payroll and Timekeeping Clerks 1,210 1 $16.36 94% Moderate-term on-the-job training


29 53-7061 Cleaners of Vehicles and Equipment 3,297 1 $9.68 96% Short-term on-the-job training





Figure 31. Labor capacity scenarios: Freight transportation (air cargo)




Existing

jobs at 2011-

year end

Estimated

new jobs

created

Local

median

hourly wage

Local median

wage as a %


1 49-3011 Aircraft Mechanics and Service Technicians 960 101 $26.09 106% Postsecondary vocational award


3 39-6011 Baggage Porters and Bellhops 2,611 29 $11.69 121% Short-term on-the-job training

4 53-6099 Transportation Workers, All Other 448 24 $11.78 77% Short-term on-the-job training

5 49-2091 Avionics Technicians 21 17 $26.51 109% Postsecondary vocational award


7 43-4181 Reservation and Transportation Ticket Agents and Travel Clerks 3,288 14 $13.88 92% Short-term on-the-job training


9 53-7061 Cleaners of Vehicles and Equipment 3,297 12 $9.68 96% Short-term on-the-job training




13 53-2012 Commercial Pilots 621 9 $27.99 91% Postsecondary vocational award

14 39-6032 Transportation Attendants, Except Flight Attendants and Baggage Porters 763 24 $9.69 98% Short-term on-the-job training

15 49-9043 Maintenance Workers, Machinery 115 7 $19.88 109% Moderate-term on-the-job training


17 51-2011 Aircraft Structure, Surfaces, Rigging, and Systems Assemblers <10 7 $24.29 111% Moderate-term on-the-job training




21 49-3023 Automotive Service Technicians and Mechanics 3,804 5 $17.18 111% Postsecondary vocational award



24 53-6051 Transportation Inspectors 251 4 $14.69 54% Work experience in a related occupation

25 53-2022 Airfield Operations Specialists <10 4 $31.10 155% Long-term on-the-job training

26 51-9122 Painters, Transportation Equipment 223 4 $16.97 95% Moderate-term on-the-job training



29 37-2012 Maids and Housekeeping Cleaners 25,704 4 $11.87 131% Short-term on-the-job training





Figure 32. Labor capacity scenarios: Advanced logistics




Existing

jobs at 2011-

year end

Estimated

new jobs

created

Local

median

hourly wage

Local median

wage as a %












11 43-5032 Dispatchers, Except Police, Fire, and Ambulance 1,729 15 $14.73 89% Moderate-term on-the-job training















26 13-1081 Logisticians 95 4 $36.29 111% Bachelor's degree

27 11-2022 Sales Managers 3,166 3 $32.85 80% Bachelor's or higher, plus experience



30 41-1012 First-Line Supervisors/Managers of Non-Retail Sales Workers 5,146 2 $16.67 81% Work experience in a related occupation




Figure 33. Labor capacity scenarios: Warehousing & distribution




Existing

jobs at 2011-

year end

Estimated

new jobs

created

Local

median

hourly wage

Local median

wage as a %


















17 51-2092 Team Assemblers 1,849 5 $12.58 97% Moderate-term on-the-job training


19 43-5111 Weighers, Measurers, Checkers, and Samplers, Recordkeeping 196 4 $11.40 87% Short-term on-the-job training


21 51-9111 Packaging and Filling Machine Operators and Tenders 745 3 $12.94 107% Short-term on-the-job training





26 53-3031 Driver/Sales Workers 1,540 2 $9.88 90% Short-term on-the-job training


28 53-7011 Conveyor Operators and Tenders 47 2 $16.77 120% Short-term on-the-job training


30 51-1011 First-Line Supervisors/Managers of Production and Operating Workers 1,403 2 $23.07 94% Work experience in a related occupation




Appendix A: Refining targets (detailed tables)

Analyzing the “dashboard” for the Las Vegas MSA labor market


LEGEND

Highlighted

abc Priority NAICS codes

Bold

###

LQ >= 1.25

Avg Ind. Earnings >= 1.25x MSA average

% job chg, over 10 year > MSA average

Light

###

LQ <= 0.75

Avg Ind. Earnings <= 0.75x MSA average

% job change over 10 year = declining

2011 DASHBOARD 2001-2011 JOB

CHANGE

4-digit level NAICS 6-digit level NAICS LQ Jobs

Avg. Earnings

# Estabs. Net Pct

CENTER FOR ONLINE GAMING

5191 Other Information Services 519130 Internet Pub. / Broadcasting & Web Search Portals 0.99 885 $97,861 105 +642 264%

INTELLECTUAL CAPITAL OF GLOBAL GAMING

7132 Gambling Industries 713210 Casinos (except Casino Hotels) 6.32 3,422 $28,855 94 -935 -21%

713290 Other Gambling Industries 8.53 3,425 $48,818 54 +1,192 53%

5511 Management of Companies and Enterprises 551114 Corporate, Subsidiary, and Regional Managing Offices

1.42 17,379 $107,540 1,241 +10,057 137%

GAMING MANUFACTURING

3399 All Other Miscellaneous Mfg. 339950 Sign Manufacturing 1.61 1,055 $75,613 52 -62 -6%

339999 All Other Miscellaneous Manufacturing 7.39 3,417 $112,642 49 +2,129 165%

DIVERSIFYING INTO NICHE TOURISM MARKETS

7113 Promoters of Performing Arts, Sports, & Similar Events

711320 Promoters of Performing Arts, Sports, and Similar Events without Facilities

2.94 1,201 $69,756 64 +788 191%

RETIREES AND SECOND HOME OWNERS

7139 Other Amusement and Recreation Industries

713910 Golf Courses and Country Clubs 1.35 3,092 $27,931 54 +14 0%

713940 Fitness and Recreational Sports Centers 0.86 3,458 $13,464 100 +911 36%

713990 All Other Amusement and Recreation Industries 1.05 1,513 $17,134 81 +305 25%

FILM AND MEDIA

5121 Motion Picture and Video Industries 512110 Motion Picture and Video Production 0.66 993 $42,100 128 -179 -15%




CHANGE


Avg. Earnings

# Estabs. Net Pct

512131 Motion Picture Theaters (except Drive-Ins) 1.28 976 $16,198 26 +197 25%

5152 Cable and Other Subscription Programming — — — — — — — —

5418 Advertising, Public Relations, and Related Services

541810 Advertising Agencies 0.80 1,236 $58,365 124 +40 3%

541820 Public Relations Agencies 1.01 587 $47,123 71 +383 188%

541850 Display Advertising 2.02 597 $53,397 48 +128 27%

541890 Other Services Related to Advertising 1.11 732 $30,736 69 +114 18%




LEGEND

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CHANGE


Avg. Earnings

# Estabs. Net Pct

SURGICAL SPECIALTIES | GERIATRICS AND RELATED SERVICES | DISAGGREGATION OF MEDICAL SERVICE DELIVERY | LEVERAGING STRENGTHS TO BUILD OTHER EMERGING INDUSTRIES

621 Ambulatory Health Care Services 621111 Offices of Physicians (except Mental Health) 0.84 12,916 $97,317 1,783 +2,939 29%

621210 Offices of Dentists 1.02 5,518 $55,615 803 +1,925 54%

621310 Offices of Chiropractors 0.92 888 $41,174 204 +272 44%

621320 Offices of Optometrists 0.96 749 $47,688 144 +206 38%

621330 Offices of Mental Health Practitioners (except Physicians)

0.62 815 $30,246 82 +520 176%

621340 Offices of Physical, Occupational and Speech Therapists, and Audiologists

0.80 1,888 $49,318 175 +1,076 133%

621399 Offices of All Other Misc. Health Practitioners 0.76 1,469 $32,569 71 +772 111%

621491 HMO Medical Centers 1.10 772 $99,752 14 +131 20%

621492 Kidney Dialysis Centers 0.97 585 $63,047 30 +351 150%

621493 Freestanding Ambulatory Surgical and Emergency Centers

1.41 873 $66,979 33 +516 145%

621511 Medical Laboratories 1.34 1,441 $64,200 86 +40 3%

621512 Diagnostic Imaging Centers 1.75 851 $81,764 55 +593 230%

621610 Home Health Care Services 0.58 5,340 $37,326 132 +3,060 134%

621910 Ambulance Services 0.83 891 $47,061 10 +273 44%

621991 Blood and Organ Banks 1.15 521 $51,167 12 +89 21%

622 Hospitals

622110 General Medical and Surgical Hospitals (Private) 0.52 13,662 $83,935 21 +3,812 39%

622210 Psychiatric and Substance Abuse Hospitals (Private) 0.92 572 $51,768 4 +328 134%

622310 Specialty (except Psychiatric and Substance Abuse) Hospitals (Private)

1.07 1,366 $63,529 9 +976 250%

623 Nursing and Residential Care Facilities 623110 Nursing Care Facilities 0.38 3,841 $43,620 36 +229 6%

623210 Residential Mental Retardation Facilities 0.26 647 $27,893 46 +239 59%




CHANGE


Avg. Earnings

# Estabs. Net Pct

623220 Residential Mental Health and Substance Abuse Facilities

0.47 569 $34,461 13 +394 225%

623311 Continuing Care Retirement Communities 0.32 815 $32,607 13 +446 121%

623312 Homes for the Elderly 0.59 1,392 $28,297 82 +529 61%

624 Social Assistance

624110 Child and Youth Services 0.93 1,214 $26,318 191 +747 160%

624120 Services for the Elderly and Persons with Disabilities 1.08 5,354 $17,732 146 +4,655 666%

624190 Other Individual and Family Services 0.52 1,580 $34,841 94 +896 131%

624310 Vocational Rehabilitation Services 0.70 1,597 $22,353 35 +543 52%

624410 Child Day Care Services 0.59 6,428 $14,121 156 +1,530 31%



Business IT Ecosystems

LEGEND

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CHANGE


Avg. Earnings

# Estabs. Net Pct

E-COMMERCE OPERATIONS/HEADQUARTERS

4541 Electronic Shopping & Mail-Order Houses 454111 Electronic Shopping 1.82 2,339 $38,949 164 +1,688 259%

454113 Mail-Order Houses 2.29 2,325 $55,754 40 -1,354 -37%

CORPORATE DATA CENTERS | CLOUD COMPUTING/HIGH-PERFORMANCE COMPUTING

5182 Data Processing, Hosting, & Related Services 518210 Data Processing, Hosting, and Related Services 0.47 926 $41,232 127 +424 84%

CYBER SECURITY

5416 Management, Scientific, Technical Consulting Services

541613 Marketing Consulting Services 0.81 1,678 $54,627 268 +739 79%

541620 Environmental Consulting Services 0.77 647 $68,576 79 +224 53%

541690 Other Scientific and Technical Consulting Services 0.72 1,512 $65,747 261 +1,051 228%

541611 Administrative Management and General Management Consulting Services

0.71 3,685 $68,519 516 +1,634 80%

5616 Investigation & Security Services 561612 Security Guards and Patrol Services 1.72 6,774 $26,131 121 +2,190 48%

561621 Security Systems Services (except Locksmiths) 1.00 888 $52,754 58 +141 19%

CALL CENTERS/CUSTOMER SERVICE AND BACK OFFICE/BPO/SHARED SERVICES

5614 Business Support Services

561410 Document Preparation Services 1.26 1,288 $25,367 183 +767 147%

561422 Telemarketing Bureaus and Other Contact Centers 1.69 4,247 $36,227 98 +2,454 137%

561440 Collection Agencies 1.42 1,325 $43,984 68 -353 -21%

561492 Court Reporting and Stenotype Services 1.62 784 $32,301 35 +142 22%

561499 All Other Business Support Services 0.67 564 $24,130 20 +159 39%



Clean Energy LEGEND

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CHANGE


Avg. Earnings

# Estabs. Net Pct

RENEWABLE COMPONENT MFG. | EXPANDING TRANSMISSION CAPACITY | ENERGY EFFICIENCY UPGRADING | ADVANCING & INTERNATIONALIZING GEOTHERMAL DEV.

2211

2371

5413

Electric Power Generation, Transmission & Distrib.

Utility System Construction

Architectural, Engineering, and Related Services

221122 Electric Power Distribution 1.08 1,426 $125,099 11 +1,323 1284%

237110 Water/Sewer Line and Related Construction 1.04 1,135 $69,968 74 -586 -34%

237130 Power/Communication Line and Related Construction 1.17 1,093 $67,830 73 -848 -44%

541310 Architectural Services 0.78 1,017 $82,551 101 -190 -16%

541330 Engineering Services 0.87 5,282 $88,466 358 +1,334 34%

541380 Testing Laboratories 0.58 555 $60,726 64 +375 208%



Logistics & Operations LEGEND

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CHANGE


Avg. Earnings

# Estabs. Net Pct

WAREHOUSING AND DISTRIBUTION

4931 Warehousing & Storage 493110 General Warehousing and Storage 1.06 3,961 $39,113 153 +1,838 87%

ADVANCED LOGISTICS

4885 Freight Transportation Arrangement 488510 Freight Transportation Arrangement 0.38 545 $40,725 72 +175 47%

AIR CARGO

4811 Scheduled Air Transportation 481111 Scheduled Passenger Air Transportation 2.05 5,059 $89,746 21 +375 8%

4881 Support Activities for Air Transportation 488119 Other Airport Operations 4.08 1,557 $24,609 18 +604 63%

488190 Other Support Activities for Air Transportation 2.05 1,314 $83,131 74 +848 182%

FOOD PROCESSING OPERATIONS

4244 Grocery & Related Product Merchant Wholesalers 424410 General Line Grocery Merchant Wholesalers 0.73 1,025 $70,274 21 -4 0%

424490 Other Grocery and Related Products Merchant Whlslrs 0.96 1,327 $57,759 76 +151 13%

4248 Beer, Wine, & Distilled Alcoholic Beverage Wholesalers

424810 Beer and Ale Merchant Wholesalers 0.97 573 $59,064 3 -1 0%

424820 Wine/Distilled Alcoholic Beverage Merchant Whlslrs 2.21 999 $101,247 14 +390 64%

FREIGHT TRANSPORTATION (GROUND AND RAIL)

4821 Rail Transportation — — — — — — — —

4841 General Freight Trucking

484110 General Freight Trucking, Local 0.28 752 $40,543 43 +35 5%

484121 General Freight Trucking, Long-Distance, Truckload 0.30 1,440 $48,498 57 +376 35%

484122 Gen. Freight Trucking, Long-Dist., Less Than Truckload 0.78 1,223 $58,468 37 +274 29%

4842 Specialized Freight Trucking 484210 Used Household and Office Goods Moving 1.12 638 $36,950 49 +250 64%

484220 Specialized Freight (except Used Goods) Trucking, Local 0.39 569 $50,694 108 +31 6%

INTEGRATED MANUFACTURING-DISTRIBUTION & ASSEMBLY MANUFACTURING

3399 All Other Miscellaneous Mfg. — — — — — — — —

SOURCES: Brookings et al., Unify | Regionalize | Diversify: An Economic Development Agenda for Nevada; EMSI Complete Employment - 2012.2; TIP Strategies



Appendix B: Comparison of site selection considerations

GENERAL


Health & Medical Services Business IT Ecosystems Logistics & Operations

General requirements

Hotels, restaurants, convention centers, theatres, and golf courses are all staples of the tourism sector. Land use and site considerations vary widely, with location and accessibility as a consistent theme.

Healthcare employment is typically spread across multiple building types, including office buildings (private practices), institutional buildings (hospitals, clinics, labs), and residential buildings (group housing, including rehabilitation, assisted living, and nursing care centers). Any number of healthcare occupations could be spread across these types of physical facilities.

Specific functions determine building needs. Data centers require very precise building specs and tend to be more capital intensive. More labor intensive operations such as teleservices, financial processing, or customer service centers may require less rigorous building specs. There is no general template that can be applied to the "typical" occupier in this industry.

Distribution & logistics facilities can vary from general purpose to specialized. A range of types are described below.

Site selection factors • Airport accessibility & flight options

• Potential market size

• Image and brand

• Regulatory framework

• Access to skilled labor

• Growth of patient base

• Regional teaching hospitals, medical schools, and flagship institutions

• Regional R&D activities

• Access to skilled labor

• Affordable, reliable electricity

• Buildings with large floor plates

• Buildings with under-floor utilities

• Competitive tax environment

• Proximity to markets/population centers

• Interstate highway access

• Quality of transport infrastructure

• Land availability (large sites, level terrain)

• Availability of semi-skilled labor• Affordable labor rates

• Competitive tax environment

• Intermodal options (highway/rail)



LAND / SITE CONSIDERATIONS

Tourism, Gaming, &

Entertainment Health & Medical

Services Business IT Ecosystems Logistics & Operations

Site use Varies widely Varies Office - Technical Services Center

Warehouse & Distribution / Logistics (including E-commerce)

Warehouse/distribution

Acreage Varies Varies Minimum of 15 developable contiguous acres

Minimum of 50 developable contiguous acres

Minimum of 50 developable contiguous acres

Zoning Zoned for commercial tourism or entertainment. Gaming activities subject to further restrictions.

Zoned for institutional, commercial (office), or group housing

Zoned for office use Zoned for warehouse/ distribution

Zoned for warehouse/ distribution

Environmental Free of wetlands, protected species or other environmental issues. Outside of a FEMA 100-year flood plain.

Free of wetlands, protected species or other environmental issues. Outside of a FEMA 100-year flood plain.

Free of wetlands, protected species or other environmental issues. Outside of a FEMA 100-year flood plain.

Electric 1,500 kilowatt (kW) demand, 1,000,000 kilowatt hour (kWh)/month usage

2,500 kilowatt (kW) demand; 1,500,000 kilowatt hour (kWh)/month usage

2,500 kilowatt (kW) demand; 1,500,000 kilowatt hour (kWh)/month usage

Water

(gallons/day)

12,000 gpd 6,000 gpd 6,000 gpd

Wastewater (gallons/day)

12,000 gpd 6,000 gpd 6,000 gpd

Solid Waste

Natural Gas (mcf =1,000 cubic feet)

600 mcf/month usage 1,600 mcf/month usage 1,600 mcf/month usage



LAND / SITE CONSIDERATIONS

Tourism, Gaming, &



Telecommunications Minimum: Access to OC-1 with at least 52 Mbps bandwidth, SONET ring infrastructure or equivalent service.

Minimum: T-1 line with at least 1.5 Mbps bandwidth or equivalent service.

Minimum: T-1 line with at least 1.5 Mbps bandwidth or equivalent service.

Preferred: Access to OC-3 lines at least 155.5 Mbps bandwidth, with SONET ring infrastructure and dual bi-directional rings from two Central Offices (CO's).

Preferred: Telecommunications: Access to OC-3 lines with at least 155.5 Mbps bandwidth, SONET ring infrastructure or equivalent service.

Preferred: Telecommunications: Access to OC-3 lines with at least 155.5 Mbps bandwidth, SONET ring infrastructure or equivalent service.

Location and Transportation

Preferred: High visibility, especially for institutional sites.

Minimum: Within 5 miles, via truck route, of an Interstate or limited access, 4-lane improved US national highway system.

Minimum: Within 5 miles, via truck route, of an Interstate or limited access, 4-lane improved US national highway system.

Population within a 30-mile radius

Minimum: none Minimum: 50,000

Preferred: varies by activity Preferred: 100,000



BUILDING CONSIDERATIONS

Tourism, Gaming, &



Building use Function-specific Institutional, lab, office, & group housing

R&D Flex Regional warehouse

Heavy distribution

Refrigerated distribution

Truck terminal Air Cargo

Size (Square Feet) Up to 100,000 Up to 100,000 Over 100,000 Any 20,000+ Up to 100,000

Ceiling Height 10' - 18' 16' - 24' 24" 20' - 30'+ 16'+ Up to 30'

Dock Ratio Averages 1:20,000 1:5,000 - 15,000

Below 1:5,000 1:7,000 - 10,000

Below 1:5,000 1:5,000

Percentage Office 25% - 75% Up to 25% Below 5% Up to 15% <10% 0.1

Percentage Manufacturing

Up to 10% 0 Some food processing

0 0

Percentage Cooler / Freezer

Up to 5% None Over 25%

Rail

Crane Capacity

Curb Appeal High High High Low Low Low Low Low

Parking Ratio High High High Low Low Low Varies Varies

SOURCES: Team Pennsylvania; Urban Land Institute; National Association of Industrial and Office Properties; TIP Strategies research

Unify | Regionalize | Diversify Revisited...of Brookings’ aerospace & defense cluster centers...

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