Truckee Demographic & Economic Profile August 2012 Prepared for:
Truckee Donner Chamber of Commerce
10065 Donner Pass Road Truckee, CA 96161 530/587-8808 www.truckee.com
Prepared by:
400 Capitol Mall, Suite 2500 Sacramento, CA 95814 916/491-0444 www.strategiceconomicresearch.org
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE
Introduction This profile is designed to provide relevant context and background information to inform the process of developing a prioritized action plan for the Truckee Tomorrow initiative. The report covers a set of key demographic, workforce, and economic indicators that can be used to assess the local business climate and identify economic development opportunities.
Center for Strategic Economic Research
1
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE
Demographic Characteristics Truckee housed a total of 16,021 residents in 2011, which was about 16 percent of Nevada County’s population. As shown in Figure1, over the past 10 years, the Town’s population grew by nearly 16 percent, a significantly higher rate of growth than the County and statewide averages of roughly 6 percent and 9 percent, respectively. In addition to the Town’s core population base, there is a notable number of second home owners which boost the Town’s population at certain points in the year. According to the 2010 Census, approximately 47 percent of the nearly 13,000 housing units in the Town are for seasonal, recreation, or occasional use (a proxy for the second home owner market). A survey conducted by Applied Development Economics as part of its 2001 Truckee Economic Strategy study, indicated that second homes are occupied only 27 percent of the time during the winter season and 23 percent of the summer season. FIGURE 1 POPULATION GROWTH, 2001-2011
Truckee
15.6%
California
9.3%
Nevada County
5.7%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Center for Strategic Economic Research, August 2012 Data Source: California Department of Finance, E-1 Cities, Counties, and the State Population Estimates and E-4 Population Estimates for Cities, Counties and State, 2001-2010 Notes: Based on January of 2001 and 2011.
Center for Strategic Economic Research
2
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE Figure 2 shows that the greatest proportion of Truckee’s 2010 population is represented in the 45 to 49; 50 to 54; and 35 to 39 age brackets, each with nearly 10 percent of the total population. With about 8 percent each, the 15 to 19 and 40 to 44 age brackets also constitute a large share of the Town’s population. The median age in Truckee is 38— much younger than Nevada County’s median of almost 47 years old and slightly above the statewide average of about 35. FIGURE 2 TRUCKEE AGE COMPOSITION, 2010 75 to 79; 111; 0.7% 70 to 74; 203; 1.3%
80 to 84; 49; 0.3% 85 and over; 74; 0.5%
65 to 69; 386; 2.4% Under 5; 1,202; 7.6% 5 to 9; 785; 4.9%
60 to 64; 553; 3.5% 55 to 59; 1,068; 6.7%
10 to 14; 1,027; 6.5%
50 to 54; 1,549; 9.8% 15 to 19; 1,320; 8.3%
45 to 49; 1,553; 9.8%
20 to 24; 1,045; 6.6%
25 to 29; 1,055; 6.7% 40 to 44; 1,315; 8.3%
30 to 34; 1,025; 6.5% 35 to 39; 1,544; 9.7%
Center for Strategic Economic Research, August 2012 Data Source: U.S. Census Bureau, American Community Survey
Center for Strategic Economic Research
3
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE Truckee’s 2010 per capita and median household income levels (around $31,000 and $65,000, respectively) are greater than the County and statewide averages, as presented in Figure 3. This is in line with the fact that Truckee’s cost of living is also relatively high, as indicated in Figure 4. This Figure provides index scores of various cost categories relative to the national average of 100 and in comparison to the nearest large city, Reno, Nevada. With a score of 284, Truckee’s housing category’s index is considerably higher than the national average and Reno. FIGURE 3 PER CAPITA AND MEDIAN HOUSEHOLD INCOME LEVELS, 2010 $70,000 $65,351 $60,883 $60,000
$57,121
$50,000
$40,000
$31,238
$30,727 $29,188
$30,000
$20,000
$10,000
$0 Truckee
Nevada County Per capita income
California
Median household income
Center for Strategic Economic Research, August 2012 Data Source: U.S. Census Bureau, American Community Survey
FIGURE 4 COST OF LIVING INDEX Truckee Overall Food Housing Utilities Transportation Health Miscellaneous
168 131 284 125 118 115 123
Reno 110 103 138 92 106 101 95
Data Source: Sperling's Best Places Notes: As of September 2011. A score of 100 equals the national average.
Center for Strategic Economic Research
4
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE
Workforce Characteristics Almost 56 percent of Truckee residents (age 25 and above) have attained an Associate degree or higher educational level, as illustrated in Figure 5. This is a much higher proportion than the Nevada County and statewide averages. According to the U.S. Census Bureau’s Local Employment Dynamics data, in 2010 almost 22 percent of the jobs in Truckee were held by workers with a Bachelor’s degree or higher educational attainment level whereas roughly 46 percent of the Town’s residents have reached this level of education. These data reveal an untapped labor force potential considering that there is a much larger concentration of all levels of college degrees among Truckee’s population compared to the County and statewide averages.
7.8%
80%
70%
33.1%
1.1% 2.2%
1.4% 2.3%
7.3%
7.2%
College Degree = 42.5%
90%
1.5% 2.6% College Degree = 55.5%
100%
21.2%
10.6%
19.2%
7.7%
College Degree = 37.7%
FIGURE 5 RESIDENT EDUCATIONAL ATTAINMENT COMPOSITION, 2005 TO 2009 AVERAGE
60%
50%
21.5%
10.5% 28.8%
40% 22.4% 30%
21.5%
20% 22.8% 18.1% 10%
0%
19.3% 4.1%
5.9%
Truckee
Nevada County
California
No HS Diploma
HS Diploma
Some College
AA/AS Degree
BA/BS Degree
MA/MS Degree
Professional Degree
Doctoral Degree
Center for Strategic Economic Research, August 2012 Data Source: U.S. Census Bureau American Community Survey
Center for Strategic Economic Research
5
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE As shown in Figure 6, on average, between 2005 and 2009, over half (roughly 54 percent) of the employed residents within Truckee were employed in the Accommodation & Food Services; Construction; Retail Trade; Professional, Scientific & Technical Services; and Health Care & Social Assistance sectors. The latter three sectors also employ the highest proportions of residents in Nevada County and California. Rounding out the top five sectors in the County is Construction and Educational Services while Manufacturing and Educational Services also employ significant proportions of the state’s residents. FIGURE 6 RESIDENT MAJOR SECTOR EMPLOYMENT COMPOSITION, 2005 TO 2009 AVERAGE Major Industry
Truckee Nevada County California
Accommodation & Food Services
13.7%
6.3%
6.7%
Construction
11.7%
11.0%
7.0%
Retail Trade
11.5%
13.1%
11.0%
Professional, Scientific & Technical Services
8.7%
7.0%
7.5%
Health Care & Social Assistance
8.3%
12.7%
11.6%
Educational Services
7.5%
8.6%
8.5%
Public Administration
6.0%
5.2%
4.6%
Finance & Insurance
5.9%
4.0%
4.5%
Administrative & Support Services
4.7%
4.3%
4.6%
Other Services
4.6%
6.3%
5.2%
Arts, Entertainment & Recreation
4.6%
2.9%
2.5%
Real Estate, Rental & Leasing
3.9%
2.9%
2.5%
Manufacturing
2.1%
6.4%
10.3%
Wholesale Trade
2.0%
2.0%
3.4%
Information
1.8%
2.2%
3.0%
Agriculture, Forestry, Fishing & Hunting
1.1%
1.4%
2.0%
Transport & Warehousing
0.9%
2.1%
3.9%
Utilities
0.9%
1.4%
0.8%
Mining
0.0%
0.2%
0.1%
Management of Companies & Enterprises
0.0%
0.0%
0.1%
Center for Strategic Economic Research, August 2012 Data Source: U.S. Census Bureau, American Community Survey
Center for Strategic Economic Research
6
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE As shown in Figure 7, almost half of employed residents in Truckee hold occupations within the following four major occupational categories: Sales & Related; Office & Administrative Support; Management; and Food Preparation & Serving-Related. Nevada County and California share the same top three categories as Truckee; however, Food Preparation & Serving-Related accounts for twice the proportion of jobs in Truckee relative to the County and state where this category comprises only around 5 percent of total occupational employment. Countywide, the fourth-largest category is Construction & Extraction while, statewide, Transportation & Material Moving is included among the top four. About 37 percent of all jobs held by employed residents in Truckee generally require a high level of preparation and training, similar to Nevada County’s average and slightly above the statewide average of around 36 percent. Occupational categories typically requiring low training levels and skills capture approximately 49 percent of employed residents in Truckee, 48 percent in the County, and 53 percent statewide. Occupations requiring a medium training level comprise only about 14 percent of employed residents in Truckee. FIGURE 7 RESIDENT MAJOR OCCUPATIONAL CATEGORY EMPLOYMENT COMPOSITION, 2005 TO 2009 AVERAGE Occupational Category
Truckee Nevada County California Training Level
Sales & Related
14.3%
13.9%
11.5%
Low
Office & Administrative Support
12.4%
12.2%
13.8%
Low
Management
11.9%
10.7%
10.0%
High
Food Preparation & Serving-Related
10.3%
4.6%
5.1%
Low
Construction & Extraction
8.0%
9.1%
5.4%
Medium
Education, Training, & Library
6.0%
6.2%
5.5%
High
Business & Financial Operations
5.9%
5.0%
4.9%
High
Protective Service
3.5%
2.3%
2.1%
Medium
Building & Grounds Cleaning & Maintenance
3.4%
4.4%
4.3%
Low
Personal Care & Service
3.4%
4.0%
4.0%
Low
Arts, Design, Entertainment, Sports, & Media
3.3%
2.5%
2.6%
High
Transportation & Material Moving
3.2%
3.4%
5.6%
Low
Healthcare Practitioners & Technical
2.8%
5.2%
4.4%
High
Architecture & Engineering
2.5%
2.5%
2.2%
High
Installation, Maintenance, & Repair
2.3%
3.3%
3.0%
Medium
Computer & Mathematical
1.5%
1.4%
2.8%
High
Life, Physical, & Social Science
1.4%
1.0%
1.0%
High
Legal
1.2%
0.9%
1.3%
High
Production
1.1%
3.2%
5.5%
Low
Community & Social Services
0.8%
2.0%
1.5%
High
Healthcare Support
0.6%
2.0%
1.8%
Low
Farming, Fishing, & Forestry
0.2%
0.3%
1.5%
Low
Center for Strategic Economic Research, August 2012 Data Source: U.S. Census Bureau, American Community Survey
Center for Strategic Economic Research
7
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE Figure 8 shows that, with an unemployment rate at 9.0 percent in 2011, Truckee fared better than Nevada County and California (with rates at 10.6 and 11.7 percent, respectively). The recession has had a significant impact on unemployment rates across the country as evident in the large increase in unemployment rates in all areas from 2001 to 2011. FIGURE 8 UNEMPLOYMENT RATES 14%
11.7%
12%
10.6% 10% 9.0%
8%
6%
5.4% 4.4%
4%
3.6%
2%
0% Truckee
Nevada County 2001
California
2011
Center for Strategic Economic Research, August 2012 Data Source: California Employment Development Department, Labor Market Information
Center for Strategic Economic Research
8
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE As shown in Figure 9, approximately 66 percent of the Truckee resident workforce hold jobs that pay a High (more than $3,333 per month) or Moderate ($1,251 to $3,333 per month) wage. Approximately one-third of all workers earn a low wage, which does not support the relatively high cost of living in the area. FIGURE 9 TRUCKEE RESIDENT WORKFORCE WAGE STRUCTURE, 2005 TO 2010 AVERAGE
High Wage; 36.3% Low Wage; 34.0%
Moderate Wage; 29.7%
Center for Strategic Economic Research, August 2012 Data Source: U.S. Census Bureau, 2010 Local Employment Dynamics
Center for Strategic Economic Research
9
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE Around 52 percent of Truckee’s resident workforce leaves the community for work while the remaining 48 percent stays. Specifically, in 2010, of the total number of residents that left the area, about 92 percent were replaced by workers commuting into Truckee. Figure 10 shows that around 36 percent of Truckee’s worker outflow relates to jobs that fall in the High Wage category, which typically requires higher educational attainment and skill levels. The workforce that remains in Truckee falls primarily in the Low and High Wage categories. Over 38 percent of the inflow is aligned with Low Wage jobs with inflow for High Wage jobs at only about 29 percent. These data reveal that a notable share of the jobs in Truckee provide a low wage and require an inflow of workers likely from surrounding lower cost of living areas. FIGURE 10 TRUCKEE COMMUTE PATTERN WAGE STRUCTURE, 2005 TO 2010 AVERAGE 45%
40%
38.2% 35.8%
35%
30%
35.7%
34.7%
33.9%
33.4% 30.4%
29.6%
28.5%
25%
20%
15%
10%
5%
0% Outflow
Stay Low Wage
Moderate Wage
Inflow High Wage
Center for Strategic Economic Research, August 2012 Data Source: U.S. Census Bureau, 2010 Local Employment Dynamics Note: Low Wage=$1,250 per month or less; Moderate Wage=$1,251 to $3,333per month; High Wage=more than $3,333 per month
Center for Strategic Economic Research
10
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE The top five work destinations of Truckee residents include Truckee, Reno, Tahoe City, Sacramento, and Incline Village, as shown in Figure 11. These locations house about two-thirds of all jobs held by Truckee residents. FIGURE 11 TRUCKEE COMMUTE DESTINATION MAP, 2010
Reno Truckee Incline Village Tahoe City
Sacramento
Center for Strategic Economic Research, August 2012 Data Source: U.S. Census Bureau, 2010 Local Employment Dynamics
Center for Strategic Economic Research
11
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE
Economic Characteristics Nevada County annual job growth, as shown in Figure 12, has been more cyclical than the state, but it experienced relatively similar business patterns. This cyclical nature is likely attributed to the varying levels of seasonal employment. The Town of Truckee accounts for nearly 24 percent of Nevada County’s total employment. FIGURE 12 ANNUAL JOB GROWTH 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0%
Jan-91 Jul-91 Jan-92 Jul-92 Jan-93 Jul-93 Jan-94 Jul-94 Jan-95 Jul-95 Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12
-10.0%
Nevada County
California
Center for Strategic Economic Research, August 2012 Data Source: California Employment Development Department, Labor Market Information
Center for Strategic Economic Research
12
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE Figure 13 shows that over half of Truckee’s industry employment (which totals approximately 10,800) falls within the Accommodation & Food Services; Construction; Retail Trade; and Health Care & Social Assistance sectors. The same four sectors comprise the greatest proportions of employment in Nevada County as well as in California, with the exception of Manufacturing rounding out the state’s top four in place of Construction. Two of these sectors tend to support lower wage jobs, leading to the commute structure highlighted in Figure 10. FIGURE 13 EMPLOYMENT COMPOSITION, 2012 Industry
Truckee
Nevada County
California
Accommodation & Food Services
19.8%
13.5%
9.4%
Construction
12.6%
9.4%
5.0%
Retail Trade
11.7%
13.4%
13.4%
Health Care & Social Assistance
9.0%
9.7%
10.7%
Professional, Scientific & Technical Services
7.2%
6.1%
7.8%
Real Estate, Rental & Leasing
6.6%
3.8%
3.2%
Educational Services
5.9%
7.5%
8.0%
Public Administration
5.1%
6.8%
6.2%
Arts, Entertainment & Recreation
4.6%
2.9%
2.4%
Other Services
3.6%
6.7%
5.5%
Administrative & Support Services
2.9%
3.4%
3.6%
Wholesale Trade
1.9%
3.1%
5.4%
Finance & Insurance
1.9%
2.5%
3.9%
Transportation & Warehousing
1.7%
1.5%
2.4%
Manufacturing
1.6%
4.3%
8.3%
Utilities
1.4%
0.8%
0.3%
Information
0.9%
2.2%
2.7%
Agriculture, Forestry, Fishing & Hunting
0.7%
1.2%
0.8%
Unclassified Establishments
0.6%
0.9%
1.0%
Management of Companies & Enterprises
0.1%
0.1%
0.1%
Mining
0.0%
0.1%
0.1%
‐
‐
‐
Total
Center for Strategic Economic Research, August 2012 Data Source: ESRI Business Analyst Online, Business Summary report
Center for Strategic Economic Research
13
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE Specialization measures an industry’s share of total employment in one economy relative to that industry’s share in the larger regional, statewide, or national economy. Specialized sectors typically indicate current or historical locational advantages or unique operating conditions in a particular area or activities within that sector that are geared toward export. The Town of Truckee, in comparison to California, is specialized in five sectors, as shown in Figure 14, including Utilities; Construction; Accommodation & Food Services; Real Estate, Rental & Leasing; and Arts, Entertainment & Recreation. The high level of specialization in the Utilities sector is driven by a concentration of related public sector activities in the area. The Manufacturing; Information; and Wholesale Trade sectors show the lowest levels of specialization in Truckee all significantly under the statewide average share of total employment. FIGURE 14 TRUCKEE EMPLOYMENT SPECIALIATION, 2012 Utilities
574.8%
Construction
255.0%
Accommodation & Food Services
210.4%
Real Estate, Rental & Leasing
204.7%
Arts, Entertainment & Recreation
196.8%
Agriculture, Forestry, Fishing &…
92.3%
Professional, Scientific & Technical…
92.2%
Retail Trade
87.4%
Health Care & Social Assistance
84.5%
Public Administration
82.7%
Administrative & Support Services
82.1%
Management of Companies &…
81.0%
Educational Services
73.3%
Transportation & Warehousing
70.0%
Other Services
65.0%
Unclassified Establishments
60.6%
Finance & Insurance
47.5%
Mining
43.3%
Wholesale Trade
35.9%
Information
33.8%
Manufacturing
19.7% 0%
100%
Underspecialized
200%
300%
400%
500%
600%
700%
Specialized
Center for Strategic Economic Research, August 2012 Data Source: ESRI Business Analyst Online, Business Summary report Note: A measure of 100% means that the local area has the same share of total employment in the industry as the larger area.
Center for Strategic Economic Research
14
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE Of Truckee’s nearly 1,600 establishments, nearly 54 percent of them were in the Construction; Professional, Scientific & Technical Services; Retail Trade; and Other Services sectors, as shown in Figure 15. Although the proportions vary, the same four sectors comprise the highest proportions of establishments in Nevada County and California. FIGURE 15 ESTABLISHMENT COMPOSITION, 2012 Industry
Truckee
Nevada County
California
Construction
19.9%
15.6%
8.1%
Professional, Scientific & Technical Services
13.7%
12.6%
11.8%
Retail Trade
12.6%
13.1%
15.0%
Other Services
7.4%
10.3%
12.0%
Real Estate, Rental & Leasing
6.8%
5.2%
5.8%
Administrative & Support Services
6.3%
5.9%
5.0%
Accommodation & Food Services
6.0%
4.7%
6.4%
Health Care & Social Assistance
4.6%
5.6%
6.9%
Public Administration
3.3%
2.5%
1.7%
Finance & Insurance
3.2%
3.6%
5.5%
Arts, Entertainment & Recreation
3.2%
2.8%
1.8%
Wholesale Trade
2.9%
4.0%
5.4%
Manufacturing
2.3%
4.2%
4.1%
Educational Services
2.3%
2.5%
2.6%
Transportation & Warehousing
1.8%
1.4%
2.2%
Unclassified Establishments
1.3%
1.9%
2.5%
Information
1.1%
2.2%
2.3%
Agriculture, Forestry, Fishing & Hunting
0.6%
1.7%
0.7%
Utilities
0.2%
0.1%
0.1%
Management of Companies & Enterprises
0.1%
0.1%
0.1%
Mining
0.1%
0.1%
0.1%
‐
‐
Total
Center for Strategic Economic Research, August 2012 Data Source: ESRI Business Analyst Online, Business Summary report
Center for Strategic Economic Research
15
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE As shown in Figure 16, around 66 percent of Truckee’s establishments employ between one and four employees followed by those with between five and nine employees. Combined, these two micro-enterprise categories account for almost 82 percent of all Truckee establishments. This proportion is similar to Nevada County overall (nearly 81 percent), but far exceeds California’s share where about 74 percent of establishments employ fewer than 10 employees. FIGURE 16 TRUCKEE BUSINESS SIZE COMPOSITION, 2010 100-249; 5; 0.7% 50-99; 8; 1.1%
250-499; 1; 0.1% 500-999; 3; 0.4%
20-49; 30; 4.2%
10-19; 84; 11.7%
5-9; 111; 15.5%
1-4; 473; 66.2%
Center for Strategic Economic Research, August 2012 Data Source: U.S. Census Bureau, 2010 County Business Patterns
Center for Strategic Economic Research
16
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE According to the Bureau of Economic Analysis, between 2000 and 2010, about 43 percent of total jobs in the market area were proprietor based, which is more than double the statewide average. Figure 17 shows that the number of residents in the TruckeeGrass Valley Micropolitan Statistical Area (Nevada County) who are self-employed increased by over 4 percent between 2004 and 2009. In 2009, the Professional, Scientific & Technical Services; Construction; and Other Services sectors comprised the largest proportion of nonemployers. Nonemployer establishments increased in the majority of sectors with the largest growth rates occurring within Educational Services (41 percent); Arts, Entertainment & Recreation (almost 19 percent); and Administrative & Support Services (about 18 percent). Declines in self-employment occurred primarily within Real Estate, Rental & Leasing (-14 percent) and Manufacturing (nearly -12 percent). Home occupation permit application data from the Town of Truckee reveal more about this segment of the economy. These data indicate that home business types vary significantly, with larger proportions related to personal care services (massage, hair, and housecleaning), construction and landscaping services, and professional services such as web and graphic design and legal consulting. FIGURE 17 TRUCKEE-GRASS VALLEY MICROPOLITAN STATISTICAL AREA NONEMPLOYER STATISTICS % Change Sector
2004
Total Agriculture, Forestry, Fishing & Hunting
2005
2006
2007
2008
2009
2004-2009
10,882
11,202
11,334
11,856
11,611
11,352
4.3%
138
147
162
169
172
165
19.6%
Mining, Quarrying, & Oil & Gas Extraction*
-
17
17
16
17
16
-
Utilities*
-
5
6
5
6
5
-
1,808
1,892
1,887
1,966
1,914
1,885
4.3%
Manufacturing
330
327
331
347
311
291
-11.8%
Wholesale Trade
224
202
220
225
220
205
-8.5%
Retail Trade
833
823
853
872
821
768
-7.8%
Transportation & Warehousing
147
156
183
195
175
166
12.9%
Information
176
174
186
187
168
183
4.0%
Finance & Insurance
303
299
285
286
288
300
-1.0% -14.0%
Construction
Real Estate & Rental & Leasing
1,197
1,277
1,276
1,219
1,105
1,030
Professional, Scientific & Technical Services
1,962
2,057
2,051
2,181
2,184
2,149
9.5%
Administrative & Support Services
673
700
732
879
830
797
18.4%
Educational Services
200
224
234
259
285
282
41.0%
Health Care & Social Assistance
742
768
735
778
815
817
10.1%
Arts, Entertainment & Recreation
530
550
544
615
622
630
18.9%
Accommodation & Food Services
123
128
120
130
122
119
-3.3%
1,472
1,456
1,512
1,527
1,556
1,544
4.9%
Other Services
Center for Strategic Economic Research, August 2012 Data Source: U.S. Census Bureau, Nonemployer Statistics *Data for year 2004 withheld to avoid disclosing data for individual companies; data are included in higher level totals.
Center for Strategic Economic Research
17
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE As stated in Initiative 1, Action 1A of Bay Area Economics’ 2009 Town of Truckee Economic Development Strategy, there are a variety of unique sectors that merit special focus in the Town’s business retention, expansion, and recruitment efforts. These niche opportunities include the following: • • • • • • •
Health Services—develop Truckee as regional health services hub with specialties in rural medicine, telemedicine, and orthopedic medicine Professional and Business Services—high value-added businesses that are not constrained in location choice Lifestyle Businesses—associated with Truckee’s small historic mountain town image Alternative Energy—high altitude innovations in alternative energy sources Manufacturing—small-scale, high value-added manufacturing using local materials Environmental—eco-tourism, watershed management, forest fire & fuel loads management Retail—targeting current retail leakage categories
The Lake Tahoe Basin Prosperity Plan also outlines three major clusters that warrant economic development attention in the broader region including Tourism and Visitor Services; Environmental Innovation, and Health and Wellness. The focus areas identified within each of these clusters closely align with the Truckee opportunities identified above. Additionally, the Sacramento Area Council of Governments’ RuralUrban Connections Strategy, which includes El Dorado and Placer Counties, identifies economic opportunities in carbon sequestration and energy production specifically in the biomass field. These items also overlap with the Alternative Energy and Environmental targets identified by Bay Area Economics for Truckee. The concentration of proprietor or home-based employment in the professional services field also supports the focus on Professional and Business Services, particularly as it relates to entrepreneurial and small business opportunities.
Center for Strategic Economic Research
18
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE Truckee’s taxable sales totaled over $224 million in 2010, a decline of over 11 percent since 2005, similar to the statewide trend, as shown in Figure 18. Truckee’s decline in taxable sales was not as severe as seen overall in Nevada County, which experienced a decline of nearly 21 percent. Over the five-year time period, Truckee’s share of Nevada County’s total taxable sales increased by over 2 percentage points to around 22 percent. Per capita taxable sales in Truckee for 2010 were at close to $13,900, which was above both the County and statewide averages of approximately $12,800 and $10,200, respectively. This demonstrates that the Town is a draw for retail activity in distinct areas. FIGURE 18 TOTAL TAXABLE SALES (IN THOUSANDS) % Change/Shift Area
2005
2006
2007
2008
2009
2010
Truckee
$253,303
$286,339
$290,036
$259,004
$215,503
$224,482
-11.4%
$1,273,632
$1,354,634
$1,320,841
$1,187,429
$983,220
$1,011,819
-20.6%
$536,904,428 $559,652,437 $561,050,149 $531,653,540 $456,492,945 $477,347,986
-11.1%
Nevada County California Truckee's Share of Nevada County
19.9%
21.1%
22.0%
21.8%
21.9%
22.2%
2005-2010
2.3%
Center for Strategic Economic Research, August 2012 Data Source: State of California Board of Equalization, Taxable Sales in California Report
Center for Strategic Economic Research
19
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE Figure 19 shows that around 19 percent of the 2010 taxable sales in Truckee were obtained from Automotive businesses (almost $44 million), followed by businesses classified as All Other Outlets with around $39 million (nearly 18 percent of total taxable sales) and Other Retail Stores with about $35 million in taxable sales (almost 16 percent). Automotive and All Other Outlets business types also comprise the largest proportion of total taxable sales in Nevada County and California. From 2005 to 2010, Automotive and Other Retail Stores saw the greatest increase in Truckee’s taxable sales—around 50 percent and 36 percent, respectively. Despite the fact that All Other Outlets business constituted a primary component of Truckee’s taxable sales in 2010, this category shrunk considerably (by almost 45 percent) since 2005. However, with the exception of the All Other Outlets category, Truckee’s taxable sales categories experienced far less severe losses than Nevada County’s from 2005 to 2010. FIGURE 19 TRUCKEE TAXABLE SALES COMPOSITION, 2010 (IN THOUSANDS) Apparel Stores; $8,015; 3.6%
Automotive; $43,579; 19.4%
Home Furnishings & Appliances; $11,054; 4.9%
Food Stores; $20,491; 9.1%
Building Material; $33,237; 14.8%
All Other Outlets; $39,393; 17.5%
Other Retail Stores; $35,447; 15.8%
Eating & Drinking Places; $33,266; 14.8%
Center for Strategic Economic Research, August 2012 Data Source: State of California Board of Equalization, Taxable Sales in California Report Note: Nonstore Retailers include online sales, mail order sales, vending machine operators, and direct selling establishments. All Other Outlets includes any nonretail establishment including wholesale and business-to-business transactions.
Center for Strategic Economic Research
20
TRUCKEE DEMOGRAPHIC & ECONOMIC PROFILE Resident spending in other communities outside of Truckee leads to what is identified as leakages in several retail categories. Despite higher than average per capita taxable sales levels, Figure 20 shows that retail leakage factors (measured on a -/+ 0 to 100 scale) exist in Truckee in eight of the major categories based on the gap between expected and actual retail spending activity. The largest leakage factors are shown in the General Merchandise; Nonstore Retailers; and Electronics & Appliance stores categories. Five categories have a retail surplus factor with the largest in Food Services & Drinking Places, reflecting the local and regional draw of these types of establishments in the Town’s core. Truckee’s large proportion of second homeowners affects the availability of retail spending in the Town’s economy. According to a survey conducted by Applied Development Economics in their 2001 Truckee Economic Strategy study, second homeowners’ spending is primarily directed toward the home furnishings, other retail, and eating out categories. FIGURE 20 TRUCKEE RETAIL GAP, 2011 Food Services & Drinking Places
20.7
Sporting Goods, Hobby, Book, & Music Stores
14.4
Bldg Materials, Garden Equip. & Supply Stores
14.4
Food & Beverage Stores
8.3
Gasoline Stations
5.8
Furniture & Home Furnishings Stores
-1.5
Miscellaneous Store Retailers
-6.1
Health & Personal Care Stores
-8.6
Clothing and Clothing Accessories Stores
-33.3
Motor Vehicle & Parts Dealers
-41.5
Electronics & Appliance Stores
-42.7
Nonstore Retailers
-56.0
General Merchandise Stores-73.6 -80
-60
-40
-20
0
20
40
Center for Strategic Economic Research, August 2012 Data Source: ESRI Business Analyst Online Note: Leakage (red) and surplus (green) factors are measured on a -/+ 0 to 100 scale with 100 reflecting complete leakage/surplus.
Center for Strategic Economic Research
21