The view from Southern California Edison.Now that Southern California s Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, economy has turned the corner, breaking out to a modest but broad-based recovery in 1995, it's tempting to think that our region can coast back to its pre-recession position as an expanding economic powerhouse A fourth-generation language from Cognos that was introduced in the late 1970s for midrange computers. It supports both character-oriented, terminal-based applications as well as Windows clients. Applications developed under PowerHouse can be imported into Cognos' Axiant client/server environment. . It's easy to believe that this fledgling economic growth will continue of its own momentum. But that would be terribly shortsighted short·sight·ed adj. 1. Nearsighted; myopic. 2. Lacking foresight. short  sight . Now, more than ever, both the public and private sectors need to make a commitment to the economic future of California. We need to join forces to promote an environment where entrepreneurialism can flourish and small business can develop and grow. At Southern California Edison Southern California Edison (or SCE Corp), the largest subsidiary of Edison International (NYSE: EIX), is the primary electricity supply company for much of Southern California. It provides 11 million people with electricity. , we're investing in the economic future of the region, emphasizing the importance of efforts to: * Retain, expand, and attract companies within the region * Focus attention on business climate issues * Increase the competitiveness of the region, and * Support regional economic development. For example, during the first nine months of 1995, Edison has successfully worked to keep, expand, or relocate re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. 300 companies within the region. Why is that important? Because those 300 companies represented more than 65,000 jobs. And those 300 companies use some 2.9 billion kilowatt-hours of electrical service Electrical service, in building wiring, refers to the wiring that connects the electric utility's cables in the street to the building. Specifically, electrical service is the wiring from the street, through the meter and up to the panelboard, but no farther. each year. Since Edison's well-being is directly linked to the economic vitality of the area it serves, we target strategies to strengthen the competitiveness of individual companies as well as industry clusters that contribute significantly to the economic health of the region. Our business retention specialists work closely with state, regional, and local economic development groups, other utilities, and private resources to help companies learn how they can be competitive in Southern California. CASE STUDY: DOUGLAS AIRCRAFT Douglas Aircraft is a case in point. Earlier this year, the company announced its decision to relocate its MD-11 fuselage production from San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. to Long Beach rather than Utah or Italy. The decision will bring 1,350 new jobs to Long Beach. Edison was part of a team working to help the company cut overhead costs overhead costs see fixed costs. and make assembly at the Long Beach plant more competitive. The team - union leaders, state, regional, and local economic development groups, government and agency representatives, and utilities - put together a combination of cost-saving and cost-avoidance recommendations that will total up to $138 million over the next five years with the fuselage work done by Douglas at Long Beach. Included are union-agreed reductions in labor costs, state support for training workers hired for the project, tax abatement A reduction, a decrease, or a diminution. The suspension or cessation, in whole or in part, of a continuing charge, such as rent. With respect to estates, an abatement is a proportional diminution or reduction of the monetary legacies, a disposition of property by will, when measures, and reductions in utility costs. Many of the cost-saving programs identified were already available but had not been identified by the company during its five-year business plan projection process. For example, the entire Douglas factory was already located in an economic development zone. That meant the company can take advantage of state training program funds, investment tax and sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. credits, and other programs not identified in earlier projections. CASE STUDY: MANUFACTURER CHOOSES LOCAL SITE RATHER THAN LEAVE THE STATE Last year, the owner of Accurate Molded Products and Filam National Plastics, dissatisfied with the present locations of both businesses, was considering moving the two companies to another state or Mexico. The firms employs some 60 people and needed to overcome various obstacles to remain competitive in California. Learning of the situation from a local banker, Edison coordinated a team of economic development specialists to meet with the company. The team provided information on site selection issues, permit streamlining, loan programs administered by the county, training programs for additional employees, and electric rate and service options for a combined facility in the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. area. The company owner attended a lighting demonstration at Edison's Electric Solutions Center and received information on California Manufacturing Technology Center programs. Influenced by the resources coordinated by Edison, the company purchased a facility in the county area of Los Angeles to accommodate the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of both businesses and allow for significant expansion. Plans called for Accurate Molded Products to move first to the new facility, followed in a few months by Filam National Plastics. Estimates for growth are significant, and the new facility plans to take advantage of the latest technologies and labor-saving equipment to compete with overseas markets. INCENTIVES FOR BOTH LARGE AND SMALL COMPANIES Companies of all sizes are recognizing that Southern California has many strengths and incentives to help them maintain a sustainable competitive advantage. While proactive efforts on behalf of individual companies are extremely important, programs on industry development, improving the region's business climate, and information services See Information Systems. are equally significant. Specific programs, supported by Edison's business retention group, reflect the scope of Edison's commitment to economic development. Many of these programs reflect partnerships with other leaders in the region's economic development community and provide opportunities for leveraging resources and expanding incentives. Here are a few examples: SUPPORT FOR INTERNATIONAL TRADE In addition to supporting the State's International Trade Initiative Proposal by sponsoring export seminars and business initiatives, Edison joined forces with the Southern California Association of Governments to produce the Southern California International Trade Resource Guide. The guide highlights available resources to help companies take advantage of export opportunities. INVESTOR FORUMS To help start-up and growth companies secure needed venture financing, Edison sponsors a series of forums designed to help entrepreneurs sharpen sharp·en tr. & intr.v. sharp·ened, sharp·en·ing, sharp·ens To make or become sharp or sharper. sharp their business plan preparation skills and identify financing options. Three educational forums have focused on financing options, preparing business plan presentations, and international financing. Two Investor Forums for 1995, sponsored by Edison in conjunction with the California Venture Forum, provide an opportunity for companies to present their business plans to an audience of more than 50 investors representing some $240 million in investment capital. Edison also has sponsored, in conjunction with the Los Angeles Technology Venture Forum, a program designed for small technology companies. The forum offered companies an opportunity to make presentations to 30 venture capitalists Venture Capitalist An investor who provides capital to either start-up ventures or support small companies who wish to expand but do not have access to public funding. Notes: Venture capitalists usually expect higher returns for the additional risks taken. . GRASS ROOTS grass roots pl.n. (used with a sing. or pl. verb) 1. People or society at a local level rather than at the center of major political activity. Often used with the. 2. The groundwork or source of something. ECONOMIC DEVELOPMENT As part of its support for community-based economic development efforts, Edison played a leading role in designing a grass roots, consensus-building economic development project for the city of Pomona. The first-of-its-kind Pomona Economic Summit brought together more than 90 business executives, community leaders, city officials, school administrators, and public safety officers to assess opportunities for economic growth and development with the city. The summit offered a hands-on opportunity to prioritize pri·or·i·tize v. pri·or·i·tized, pri·or·i·tiz·ing, pri·or·i·tiz·es Usage Problem v.tr. To arrange or deal with in order of importance. v.intr. the economic development opportunities identified through six issue forums. Since the summit established a comprehensive economic development agenda and identified priorities, the implementation phase is underway, spearheaded by the work of three subcommittees. Cal Poly Cal Poly may refer to:
PEDL Prototype Equipment Development Laboratory ) - a course for 24 students to monitor and evaluate recommendations from the 1995 summit and lay the groundwork for a second summit in 1996. The Communication Plan Subcommittee's charge is to disseminate dis·sem·i·nate v. dis·sem·i·nat·ed, dis·sem·i·nat·ing, dis·sem·i·nates v.tr. 1. To scatter widely, as in sowing seed. 2. summit information to the community, identify key persons to head-up the recommendations, encourage their participation, and follow-up to ensure their commitment. The Fundraising Subcommittee sub·com·mit·tee n. A subordinate committee composed of members appointed from a main committee. subcommittee Noun is developing fundraising letters and a database of businesses and leaders to solicit revenues for the PEDL course. A bi-lingual community in-put form will capture further participation, encouraging people to become involved in Pomona economic goals and the summit process. FLEXIBLE PRICING OPTIONS Edison has proposed a package of flexible rate options for business and agricultural customers that offer more choice, more savings opportunities, and more environmental benefits. If approved by the California Public Utilities Commission The California Public Utilities Commission (CPUC; also often commonly referred to as simply the PUC) [1] is a state Public Utilities Commission which regulates privately-owned utilities in the state of California, including electric power, , the package will be available to customers in early 1996. Among the many benefits to be offered are: expanded Economic Development Rates with incentives for customers to remain, expand, or locate operations in California; new real-time pricing options, fixed-price contracts, and improved flexibility; and pricing credit for installation of proven environmental technologies. Other regions will continue to try to lure companies from Southern Californi. Companies throughout the region can maintain their competitive edge by reaching out to the wealth of incentive, support, and specialized programs now available. Companies don't have to look outside the area to sharpen their competitive positions. And Edison can help. Barry Sedlik is Manager of Business Retention for Southern California Edison. For more information call Edison's business retention specialists at 1-800-3-Edison. |
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