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Southern California Association of Governments November 16, 2001 The Events of September 11: Economic Impacts on the Re PowerPoint Presentation
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Southern California Association of Governments November 16, 2001 The Events of September 11: Economic Impacts on the Re

Southern California Association of Governments November 16, 2001 The Events of September 11: Economic Impacts on the Re

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Southern California Association of Governments November 16, 2001 The Events of September 11: Economic Impacts on the Re

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  1. Southern California Association of GovernmentsNovember 16, 2001The Events of September 11:Economic Impacts on the Region Presented by Mark Schniepp Director

  2. Los Angeles Times, September 12, 2001, front page

  3. Los Angeles Times, September 18, 2001, front page

  4. Los Angeles Times, September 19, 2001, page C-1

  5. Los Angeles Times, September 21 2001, page C-1

  6. Los Angeles Times, September 19, 2001, front page

  7. Los Angeles Times, September 20, 2001, page C-1

  8. Immediate Fallout of 9/11 • Disruption of Economic Activity • Financial markets closed • Air transportation system closed • Travel industry impacted -- hotels and recreation • Job and productivity losses due to destruction of 3 million square feet of office space • Indirect job losses: AMR, UAL, perhaps Boeing, others • Consumer confidence shaken • Effect on home sales • Effect on auto purchases

  9. Regional Outlook: post - 9/11Milken Institute “moderate scenario” • Many sectors vulnerable • Travel • Entertainment • International Trade • LA County to lose 76,200 jobs by 2002 Q3 • Unemployment rate --> 7.5 percent • Income loss: $19.1 billion (2.1 percent) • Recession in the U.S. and the region until 2002 Q2, with growth accelerating in second half of 2002

  10. 450 basis points in 310 days! Los Angeles Times, October 3, 2001, front page

  11. Mortgage Banker’s Association Mortgage Applications Survey From: dismalscience.com - November 7, 2001

  12. The Region -- Southern California

  13. The Region’s Exposure • Travel and Tourism • Hotels, motels • Restaurants • Theme parks • Airlines, rental cars • Thousands of layoffs • Commercial Aircraft and suppliers • Orders being cut • Thousands of job layoffs • Advertising Industry • Strong presence of TV in the region

  14. Benefits to the Region • High tech aircraft • Communications devices • Precision instrumentation • Surveilance equipment • Sensors • Controlling and tracking instruments • Movie attendance way up • $60 million record weekend for Monsters Inc. • All boats rising with tide • Movie production off (consequence of threatened SAG strike earlier in year) but more production planned for locations in California

  15. Los Angeles Business Journal, July 30 - August 5, 2001, front page

  16. Tourism and Travel Industry

  17. Los Angeles Times, October 4 2001, page C-3

  18. Santa Barbara News Press, October 3, 2001, page A-6

  19. Santa Barbara News Press, November 9, 2001, front page

  20. Los Angeles Times, October 5, 2001, pages C-1 & C-4

  21. Los Angeles Times, September 22, 2001, page C-1

  22. Los Angeles Times, September 20, 2001, page C-1

  23. Job Creation or Loss (SA) Los Angeles County, June to October 2001 June to Aug to Sector Aug 2001 Oct 2001 Movie Production - 2,238 - 4,540 Communications Services 0 0 Recreation/Amusement 542 - 588 Hotels & other Lodging - 315 - 957 Aircrafts & Parts MFG - 300 - 1,509 Air Transportation 171 - 733 Eating & Drinking places - 500 - 800 Auto Dealers - 500 - 200 Gen Merch Retail Trade 118 - 1,482 Total non-farm - 6,254 -13,346