A survey of Silicon Valley's top businesses reveals a majority of the region's CEOs maintain a positive view of Silicon Valley's economy, but they have concerns. If these concerns are not resolved, it could affect the region's economy, according to Dennis Cima, vice president of education and public policy for the Silicon Valley Leadership Group.
Cima gave Realtors a snapshot of the region at last week's Silicon Valley Association of REALTORS® Palo Alto District Realtor tour meeting. He shared results of the SVLG's fourth annual CEO Business Climate Survey, which was conducted among the organization's 250 member companies and received 115 responses.
SVLG is an organization that involves principal officers and senior managers of member companies in a cooperative effort with local, regional, state, and federal government officials to address major public policy issues affecting the economic health and quality of life in Silicon Valley. Cima said it is SVLG's vision to ensure the economic health and a high quality of life in Silicon Valley by advocating for adequate affordable housing, comprehensive regional transportation, reliable energy, a quality K-12 and higher education system and prepared workforce, a sustainable environment, and business and tax policies that keep the state and the local region competitive.
Cima likened Silicon Valley's economy to his "bagelometer." He said a bagel cost 75 cents in 2004; the same bagel now costs $1.25 in 2008 – a 67 percent increase. His example underlined the fact that the cost of living in the region has increased greatly. Also, since 2007, Cima reported jobs in the region have increased 63 percent, however, jobs also decreased 11 percent, and the jobs lost are permanent.
According to the survey, the region's CEOs believe the greatest cost of living challenges facing the Valley are housing costs, traffic congestion and health care. The top executives' chief concerns included the need to create more affordable housing, improve traffic, improve K-12 education, develop more research and development tax credits, and limit frivolous lawsuits.
The mood among the Valley's executives is still positive, but Cima noted, "The same theme resonates, and if these concerns aren't addressed it could affect the economy and quality of life in Silicon Valley."
In a recent poll of 800 Santa Clara County voters, 63 percent said they believed California's economy is headed in the wrong direction, while 28 percent believed it is headed in the right direction. Their view of the region's economy was slightly more optimistic. Among the respondents, 42 percent believed Silicon Valley's economy was headed toward the wrong direction, while 46 percent believed it was headed toward the right direction.
Voters were most concerned about the need to improve education, (81 percent, very important) and the need to improve the state and local economy (78 percent, very important).
Cima said concerns about energy conservation and a clean environment are rising and evident in increasing investment in clean technology. The Leadership Group is working with cities to adopt appropriate green building policies.
"Our members are passionate about that work," said Cima.
The SVLG is involved in policy work at the local and state government levels. Incentives for teachers are also a primary focus of the organization. SVLG supports the Industry Initiatives for Science and Math Education (IISME), which seeks to transform teaching and learning through 8-week paid fellowships, funding 200 teachers to work in technology firms in the summer.
"We see IISME as an opportunity for teachers to transfer new knowledge to their students," said Cima.
Cima said he was at the trade association's tour meeting to get the Realtor pulse about the region, as well.
"Yours is a strong customer service occupation. What's important to you?" Cima asked.
When Realtors said they were concerned about affordable housing, Cima told them the SVLG, through the Housing Trust of Santa Clara County, and in cooperation with Realtors, builders and lenders, has provided voluntary contributions to assist families, including first-time homebuyers and teachers.
"Funding is of important interest to us through the Housing Trust. To make low interest loans is the cornerstone piece of our work," Cima assured SILVAR members.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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