FOR IMMEDIATE RELEASE
March 31, 2014
Study Suggests Potential $12.5 Billion Economic Impact
For Coachella Valley iHub Network Over 20 Years
Economist John Husing estimates iHubs may create 3,500 desirable jobs,
facilitate 81 new businesses, and diversify the Coachella Valley economy
PALM SPRINGS, Calif. — A new report on the long-term potential of the Coachella Valley iHub network — which includes the Palm Springs Accelerator Campus and the forthcoming east valley iHub for advanced manufacturing — suggests billions of dollars in economic impact, including 3,500 high-skill, high-wage jobs at about 80 new companies engaged in clean and renewable energy, high-tech, health and medicine, and advanced manufacturing.
Economist John Husing of Economics & Politics Inc. in Redlands based his study on modest assumptions (see executive summary) such as annual iHub company graduation rates, number of employees they hire, average salaries, and profit-to-revenue ratio. He projects that by the 20th year, the impact would be:
• 81 new companies operating
• 3,544 new jobs
• $711 million in revenue
• $174 million in payroll
• $142 million in profits
Palm Springs Mayor Steve Pougnet was an early leader in the California Innovation Hub program as a participant in the development of a white paper that established its vision. Cathedral City Mayor Kathy DeRosa and former Desert Hot Springs Mayor Yvonne Parks joined him in 2009 to form the Coachella Valley iHub, one of the first six in California, which now has 16 with others in development.
“While our tourism industry continues to thrive, it is critical that we also focus on diversifying the economy in Palm Springs and the Coachella Valley†Mayor Pougnet says. “The iHub program is the path for us to do so with its focus on renewable energy and clean technologies. This valley is a global center for key renewable energy, such as solar, wind, and geothermal, and we can capitalize on the enabling technologies that will bring them to the consumer. The Husing report validates that these good-paying jobs are there and will help build the future economic vitality of the Coachella Valley.â€
Responding the Husing report, Joe Wallace, managing director of the Coachella Valley iHub, says, “To secure an economic impact projection of this magnitude by a respected economist like Dr. Husing validates the investments made by the founding stakeholders of the Coachella Valley iHub as visionary, and also demonstrates the profound positive impacts that public-private partnerships with the perseverance to focus on long-term objectives have the potential to achieve.†The numbers in the study are contingent on financial support of public and private stakeholders and generated revenue to ensure continuous operation of the iHub network.
“In September, CVEP received a U.S. EDA planning grant to expand the iHub to focus on advanced manufacturing,†says Tom Flavin, president/CEO of CVEP. “Sixteen of the 20 current iHub/Accelerator businesses, with others in the pipeline, clearly fit the definition of advanced manufacturing. We also identified advanced manufacturing opportunities associated with the Salton Sea, agribusiness, and other industies throughout the Coachella Valley.
With the federal grant, seven of the region’s 10 jurisdictions have engaged in the program. In addition to Palm Springs, Cathedral City, and Desert Hot Springs, the iHub has garnered the support of La Quinta, Palm Desert, Indio, and Riverside County.
The Coachella Valley iHub is helping to diversify the economy with sustainable businesses that create desirable jobs that will retain the Coachella Valley’s brightest high school and college graduates, many of whom are already preparing in career pathways programs.
John Raymond, director of the City of Palm Springs Community & Economic Development, adds, “To grow companies focused on renewable energy and advanced technology is important to the goal of diversifying the region’s economy. It makes sense for all jurisdictions to work together to pull resources and commit to a long-term strategy, because industrial development jobs have no borders, and those jobs benefit all the communities.â€
“The long term economic impact of the Coachella Valley iHub is, without question, significant, and we are proud to be a founding partner in this program,†says Cathedral City Mayor Kathleen DeRosa.
About Coachella Valley Economic Partnership
The nonprofit Coachella Valley Economic Partnership promotes a diversified, year-round economy through its Workforce/Jobs Collaborative, based on business attraction, expansion, and retention, and developing a workforce aligned with the needs of business. CVEP and its various programs — Workforce Excellence, Coachella Valley iHub, Coachella Valley Small Business Development Center, and Creative Resource Center — focus on planning and nurturing the growth of three emerging industry clusters: Healthcare and Life Science; Clean Technology and Energy; and Creative Arts, Media, and Design. Visit www.cvep.com or call 760-340-1575.
About Coachella Valley iHub and Palm Springs Accelerator Campus
The Coachella Valley iHub and Palm Springs Accelerator Campus, part of a statewide innovation hub network, consist of 20 high-tech and renewable energy companies in their “incubation†stage. The iHub provides them with an office, conference area, consulting, and administrative support. The Palm Springs Accelerator Campus will open a Health and Medical Innovation Center in May.
To request a copy of the full impact study email Joe Wallace at hadannahbusiness@aol.com
I’m dubious; $12b is about what’s spent on porn, globally, and “Coachella” is a punchline on modern TV.
What, precisely, makes this idea so much better than everyone else’s?
And when was the last time wind, solar and geothermal “clean” energies made a dollar of their own?
Most of our companies are not just in those spaces. Grid level storage is the holy grail of energy right now and we have three companies in that space. We also have one company that has already had a public offering and is valued at $42 Million. At any rate we did not do the study but the assumptions used are not only valid they are consistent with what we have been doing for the last 27 months with respect to job creation and wealth creation. All of our funding thus far is local.
If you are interested in the full study, please send a request to the email listed at the end of the press release. The plan that is going forward in Palm Springs is very similar to what I was trying to do in Evansville.
Why not just make the study readily available and forgo the nonsense of making people ask.
Too large for WordPress post. It has to be emailed. Otherwise I would post it. It was released to the public in Palm Springs yesterday. There are color charts and such that drove the file size up.
Then dump wordpress.
Or rather just provide a link to the file.
If you want it email me and request it. Several others already have. If you don’t want it enough to send an email you must not want it very much.
Not to pile on but is renounced the proper word in your title above?
Void that.
Missed a letter……
I knew I’d finally get to the bottom of this:
http://www.urbandictionary.com/author.php?author=World+Renouned+Dr.+Anthony+Brand
Doesn’t surprise us,what most people don’t realize is the actual shifting phase has started in the renewable primary supplies.
One thing is the storage and transfer grids will become vastly more important than the sourcing that supplies them. Most groups really have their heads in the sand with projected sustainable blending balance that will leverage it in the next 10 years.
Knowing what I have the privilege to have been working with the last 2 years some might instantly adjust their portfolios. This is action for climate change,certainly carbon sequestration.
Economic tsunami and cultural changing wave impact affect. Nothing is going to be the same,ever. That’s part of the whole problem when the breakthrough is out into the sun so too speak,most will be dumbfounded and completely shocked by the mass affect of the change. Trust me it will be a better world,and a brand new playing field.
High noon on the summer equinox with ground so leveled it will take very little venture capitol to roll a “Planet”.
Incremental adjustment recommended for sure,and,actually the process has started. Somehow out there in California,at CVEP your iHub, and the Southwest, We just don’t presume the adjustments will be as big an wave,lots of little ripples,amazing as that is,its really just all in the acceptance factoring of perceived commerce bases per given populations of some regional’s vs the others.
Touchy toe first entry into the water,would be the only way that would be accepted in the evansville metro,by the time they get in and start the swim,the other regions will have 65% of the race behind’um. Like always they’ll be the losers,and still dripping wet when the sun goes down.
Nihil sub sole novum ,sed in rebus est.
“hoc est,saltem”
Nothing new under the sun,however in the universe,as well.
“at least this end of it”
3,500+ jobs is impressive. I remember the Forgotten Cities study which said communities losing thousands of jobs but touting an increase of a few hundred as being a turn around is indicative of a declining city.
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