Table Of Content3 1223 04653 8840
Commerce and Industry
Issue Paper No.
1
1^
rancisco
Urn-
2 6 1995
sa;-; i-RAf>3Cisco
PUBLIC LIBRARY "
City and County of San Francisco
Planning Department
330. 97 94
Ov2 July 1996
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SANFRANCISCOPUBLICLIBRARY
3 1223 04653 8840
Commerce
and Industry
Issue Paper No.
1
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conomy
DOCiiMENTS DEP*^.
;.U3 2G1996
SAN FRANCISCO
RtJBLiC LIBRARY
City and County of San Francisco
Planning Department
July 1996
.
COMMERCE AND INDUSTRY ISSUE PAPER No.
1
Acknowledgements
Mayor
Hon. Willie Lewis Brown, Jr.
PlanningCommission
SusanE. Lpwenberg,President
HectorChinchilla, Vice-President
Esther Marks
Lawrence B. Martin
Beverly Mills
DennisA. Antenore
CynthiaJoe
PlanningDepa.rtment
AmitGhosh,DirectorofPlanning
Catherine Bauman
Miriam Chion
Inge Horton
DavidLevy
Pamelia Maxwell, Graphics
Lois Scott
Assistance from: Tapan Munroe,Pacific GasandElectric
Sue Lee, Office oftheMayor
REF 330.9794 Ov25
Reportpreparedbythe PlanningDepartment
City and CountyofSan Francisco
Office ofAnalysis and Information Systems (OASIS)
An overview of the San
Francisco economy
/
1996.
3 1223 04653 8840
V
SAN FRANCISCO PLANNING DEPARTMENT
Sf. PUBLIC LIBPvARY
AN OVERVIEW OF THE
Economy
an Francisco
COMMERCE AND INDUSTRY ISSUE PAPER NO.
1
San Francisco Planning Department July 1 996
San Francisco is an Increasingly
INTERNATIONAL, NATIONAL, Multicultural Cjty
AND REGIONAL CONTEXT
o 80
White
Ethnically Diverse and Skilled Labor Force African-American
36populations
:rsityin the
5/S .
past 30 years,
ti Other
ed more than 1960 1970 1980 1990
iic group in San Years
cent ofthe
DOCUMENTS sgrr. itionin Cahfor^ PEODPUUCLAATTIIOONNALOVLEEVREL1S8 YFEOARRLSAOBLODR FORCE
iround 60 and 990
SAN FRANCISCO y^earperiod 1 •%oflaborforce %oflaborforce
w/collegedegree w/graduate-prof. degree
an Francisco
PUBLIC LIBRARY San Francisco 35.3 19.0
it 30 percent of Bay Area , 28.5 1 5.2.
edfrom 7 California 20.0 ' 10.0
United States 18.1 9.3
REFERENCE mericans
Source: Bureau ofthe Census
inoritygroups San Francisco Planning Department
BOOK
Not to be taken from the Library tural composi- World Class Center for Arts, Culture, and
aostvital Convention Activities
.
In 1990, the
I.
)rce 18years old San Francisco's arts, culture, andconvention activities
and overhad a college degree. Thiswas a muchhigher are animportantpart ofthe BayAreaecononiy. These
share than the 29 percent ofBayArearesidents^20 activities form a majorlinkbetweenthe city, the
percentofCaliforniaresidents, and 18 percent qf ..region, andthe global economy. This sectorhas shown
United States residents. The onlyBayAreacounty high and constantgrowth in employment andvalue .
with a higher share ofpopulationwith a college degree added atthe national, regional, and citylevels. For
was Marin countywith 39 percent. The same pattern example, between 1980 and 1990, the contribution of
is foundforresidents with graduate orprofessional the motionpictureindustrytogross domesticproduct
degrees. In SanFrancisco, 19 percentofthe la,borforce increased almost 130 percent. In the same period arts ,
over 18had a graduate orprofessional degree. and culture related emplpyment in San Francisco
increasedby about 16 percent. These and other
creative andbusiness activities are contributingto the
multimediaindustry, akeyemergingsector.
JULY 1996 1
AN OVERVIEW OF THE
Economy
an Francisco
COMMERCE AND INDUSTRY ISSUE PAPER NO.
1
San Francisco Planning Department July 1996
San francisco is an Increasingly
INTERNATIONAL, NATIONAL, Multicultural City
AND REGIONAL CONTEXT
White
Ethnically Diverse and Skilled Labor Force African-American
San Franciscohas one ofthe mo?t diverse populations
amongUnited States cities. Ethnic diversityinthe
.
cityhas increaseddranaaticallyoverthepast 30 years.
In 1960, thewhite population representedmore than 1960 1970 1980 1990
80 percent ofthetotal. In 1990, noethnic group in San Years
Francisco represented more than 50 percentofthe
total population, while the white populationin CaliforT EDUCATIONAL LEVELS FOR LABOR FORCE
POPULATION OVER 18 YEARS OLD
nia andthe United States represented around 60 and 990
1 %
70percentrespectively. Duringthe 30yearperiod oflaborforce %oflaborforce
w/college degree w/graduate-prof. degree
priorto 1990, theAsian.populationin SanFrancisco
San Francisco 35.3 19.0
increased from about 8percentto almost30percent of
Bay Area 28.5 15.2
.
the total population. Hispanics increasedfrom 7 California 20.0 10.0
United States ' 18.1 9.3
percent to nearly 15 percent. African-Americans
remained atabout 10 percent. Otherminoritygroups Source: SBaunreFaruanocfitshceoCPelannsnuisng Department
represented about 6 percentin 1990.
In addition to the increasingly multicultural composi- World Class Center for Arts, Culture, and
tion ofthe city, one ofSan Francisco's mostvital Convention Activities
.
resources is ahighlytrained laborforce. In 1990, the
35 percentofthe SanFrancisco laborforce 18 years old SanFrancisco's arts, culture, and convention activities
andoverhad acollege degree. Thiswas a muchhigher are animportantpartoftheBayAreaeconomy. These
sharethanthe 29 percentofBayArea residents,.20 activities form amajorlinkbetweenthe city, the
percentofCaliforniaresidents, and 18 percent of .region, andthe global economy. This sectorhas shown
United States residents. The onlyBayAreacounty high and constant growth in employrnent andvalue .
with ahigher share ofpopulationwith a college degree added atthe national, regional, and citylevels. For
was Marincountywith 39percent. The same pattern example, between 1980 and 1990, the contribution of
is foundforresidentswithgraduate orprofessional themotion pictureindustryto gross domestic product
degrees. In SanFrancisco, 19percentofthelaborforce increased alinost 130 percent. Inthe sameperiod arts ,
over 18had a graduate orprofessional degree. and culture related employment in San Francisco
increasedby about 16 percent. These and other
creative and business activities are contributingto the
multimediaindustry, akeyemergingsector.
JULY 1996 1
.
COMMERCE AND INDUSTRY ISSUE PAPER No.
1
The San Francisco Symphony, Opera, and Ballet Leading States for Major Conventions
continue to draw classical artspatrons from aroiind the 1991
region and the world. The Museum ofModernAr.t, Fine
NewYork
Arts Museums, andtheAsianArtMuseum are also Nevada
Pennsylvania
strongvisitor attractions. However, whatmakes San
Georgia
Francisco unique amongculturalcenters is theexist- Massachussetts
Louisiana
ence ofavastnumberofsmall-scale arts organizations. illinois
Theyhave emerged as apowerful force in SanFran- DistrictofColumbia
Texas
Cisco, reflecting and respondingtothe changingethnic Florida
California
composition, and to generational changes inthe arts
2 4 6 8 10 12
audience. PercentoftotalUSConventions
,
Since the late 1980s, convention activities have rapidly
ofabout 660,000 square feet and anestimated armual
increased atthe national, state, and locallevel. Be-
attendance rangingfrom 650,000 to 800,000 peryear. The
tween 1988 and 1993, exhibit spacein.United States
demand for convention space in the city islikelyto remain
cities increased about 20 percent to total approximately
high.
58 inillion square feet. Between 1987 and 1991, .
Reduction of Mahufacturing Jobs Reflects
Connections to the Global Economy
Worldwide Patterns of Industrial Restructuring
13.4 million visitors to Sah Francisco in 1993
The city receives $40 million annually from visitor Since the end ofWorld War II,jobs in traditional manufac-
spending turingin advanced industrializedcountries have declined
$88 million peryear in total hotel tax revenues due tolarge increases in productivity aswell as relocation
66,400jobs directly supported by visitor spending
to countries withlowerlabor costs, less stringentenviron-
mental regulations, andlower taxes. Thisrelocationhas
been possible because ofthe improvementsin cornmunica-
national trends also showed an increase inspace and
tion and-transport technologies, aswell as the reorganiza-
attendanceperconvention. Californiahas ledthe
tion ofproduction processes intasmaller and more discreet
United States in majorconvention activities ajnd
tasks.
captures about.12 percent ofall conventions nation-
wide. Between 1980 and 1990, manufacturing employment
declined significantly - from40 percentto 34 percentof "
OntheWest Coast, SanFrancisco,represents one ofthe
totalUnited Statesjobs. HoWever, interms ofgross
most attractivelocations. In terms ofconvention space
doinesticproduct, total manufacturingoutputincreased
availability, SanFrancisco ranks fourthin thewest,
from40 to 41 percentofthe national total. Thig is a
after LasVegas, LosAngeles, andAnaheim. San
reflectionofgreaterproductivityin manufacturirig.
Francisco attracts'24percentofall exhibitors on the
westcoast, 22 pfircentoftotalattendance, 20 percentof Asimilartrendwas observed atthe regional and local
iall events, and 15percentofspaceused, .Whenlooking levels. In the BayArea, theshare ofmanufacturingjobs
at conventionsbyindustry, SanFranciscohas alarge declinedfrom 36 to 33 percentofalljobs. InSanFran-
market share ofelectronic/computers, medical, andfood cisco,manufacturingjobs declinedfrom 30 to 22percentof
and beverageevents. . . totaljobs. ' "
The Moscone Convention Centeris the 20thlargest
convention centerin NorthAmericawith a total space
2 SAN FRANCISCO PLANNING DEPARTMENT
AN OVERVIEW OF THE SAN FRANCISCO ECONOMY
Traditional manufacturinghas continued to face a UNEMPLOYMENTRATES
numberofconstraints in SanFrancisco, such as high 1990-1995
land prices, limited land availability, and limitedrail 10.0
andport accessibility. However, new industries and
9.0
restructuredold industries are creatinga "new indus-
trial" space in SailFrancisco, Multimediarepresents 8.0 California
one ofthe emergingindustries in San Francisco, with § 7.0
c
the highest concentration ainong all metropolitan 0) - San Francisco
I 6.0
regions in the United States. Apparel manufacturing a.
BayArea
in SanFranciscohas remained strongthroughoutthe 5.0 United States
recentrecessionbyshiftingfrom massproduction to
4.0
highvalue designeirproducts. Printing andpublishing
3.0
is incorporatingnew information technologies and 1990 1991 ,1992 1993 1994 1995
represents akey support industryforthe San Francisco
financial sector. .'
. REGIONAL
INTERDEPENDENCIES
Recent Employment Recovery: San Francisco
Bay Area Faster than the State
Jobs - Housing - Triansportation
Within the BayArea, SanFrancisco was one ofthe
cities most affected bythe recession. Between 1990 and In.1995 SanFranciscohad 526,000jobs, with 240,000
1993, San.Francisco employment declined from 559,000- (46 percent) heldbyworkers livingoutside thecity. Of
to 522,000 or about 6 percent. Between 1993 and 1995, these, 51,000 workers came from the North Bay;
employment in San Francisco remained-stable. Silicon 101,000.from the EastBay; and 78,000 from the South
Valley lost a large-r numberofjobs, biit propDrtionally Bay. In addition, about 10,000 workers cameto work in
San Franciscohad the highest employment decline. San Francisco from outside ofthe BayArea. Almost 80
These trendswere mainly due to thedownsizingin percentofall commuters work in downtown San
industries such as finance, teleccrmmunications, and Francisco. The totalnumberofcommuters into San
Francisco is largerthanthe numberofcommuters to
utilities.
.
anyother countyorsubregionwithin the BayArea.
San Francisco Unemployment Rate is one ofthe
Highest in'the BayArea San Francisco shows one ofthehighest rates ofpublic
transit ridership comparedto the region orthe nation.
Since 1990, the unemployment rate gap between
About 60 percentofthe total combined cityresident
San Francisco and the BayArea has been increasing
1990 - San Francisco 4.1%, Bay Area 4.0% ' and commuterworkers in.San Francisco use public .
• 1995 - San Francisco 6.4%, Bay Area 5.4% transportation orrideshare; the fourth highest transit
inode-share in the nation. Withinjust the commuter
sector, about 40 percentuse public transportation or a
The San Francisco BayArea's recoveryfrom the recent rideshare program. The transitsystemhas made it
recession started in 1994. Between 1993 and 1994,: possible for SanFranciscoto be amajoremployment
employment in the BayArea showed almostno decline. centerwithout severe congestion problems andgreater
In 1995, it increasedby 5,000jobs up to 2,850,000 . demandsforparking space.
Because ofits economic,diversity, the BayAreahas
.
weathered the recessionbetterthanthe statewithonly
a 2.3 percentdecline injobs during 1990-93 compared
to 3.8 percentforthe state.
JULY 1996 3
COMMERCE AND INDUSTRY ISSUE PAPER No.
1
Commuters to San Francisco
Jobs inSan Francisco
101,000 from the East Bay
San Francisco had 526,000jobs in 1995 51,000 from the North Bay
Lost 40,000jobs between 1990 and 1993 78,000 from the South Bay
IHas gained 5,000jobs since 1994 - slower growth 10,000 from out of Bay Area
than the rest ofthe region
Services, Government, Retail, and FIRE (Finance,
Insurance and Real Estate) comprise 80,percent of The FIRE and legal services industries provide 13
alljobs percent oftotal San Francisco employment, apercentage
thatis almost twice to four times the share ofthesejobs
inthe BayArea, California, ortheUnited States. They
Jobs in San Francisco sferve most counties and industries inthe BayAreawith
1983-1995 particularconcentration in: ^yholesale businesses in San
Mateo andAlameda; transportation services inContra
Costa and San Mateo; retail in Solano, Sonoma, and
Contra Costa; petroleum refiningin Contra Costa;
motionpicture production in Marin; andeducational
services in Napa, Marin, and San Mateoi
Business and professional services represent a clusterof
activities thatprovide direct supportto mostother
activities inthe BayArea economy. This industry
983 1985 1987 1989 1991 1993 1995
clusterrangesfrom advertisingandphotocop5ringto
engineering and research anddevelopment. Itrepre-
Industrial Linkages
The SanFranciscoBayArea is avital economicregion
providing an enormous diversity ofproducts and ser-
NORTHBAY
vices. This diversity and strongUnkages amongindus-
597,000
tries writhintheregionhave restaltedinrobust economic 51.000 66.000
health. Withintheregion, thecityofSan Francisco
plays averyimportantrole as ainternationalcultural
center and as acenterforfinance andhighlevelbusiness 15.000
services. The sectors,most closelylinkedto the regional
economyinclude finance, insurance andreal estate
EASTBAY
(FIRE); apparel manufacturing; transportation services;
1,1.29,000
business andprofessional services; motion picture
sANFmm
production; hospitalityand tourism; andthe arts. These
criticalsectors exchange services andgoods with the rest m.ooo ^^^.^.. 5300' 25.000'- .: 135.000
ofthe regional economy. Thus, theirgrowth and decline
/
impact otherindustries in the region.
65,000
The San Francisco economyrelies primarilyonMarin,
.
Sah Mateo, and Contra Costa counties for the provision SOUTHBAY
,
ofindustrial supplies. On the otherhand,.Napa and San 1,215,000
Mateo are the mainbuyers ofSan Francisco's goods and
services.
4 SAN FRANCISCO PLANNING DEPARTMENT
