Event Coverage
SVLG Official says Silicon Valley Economy Strong, but Concerns Need to be Addressed
A survey of Silicon Valley's top businesses reveals majority of the region's CEOs believe overall, Silicon Valley's economy is doing okay, but it's not permanently stable. The top businesses have concerns and believe that, if not resolved, could affect the region's economy, according to Dennis Cima, vice president of education and public policy for the Silicon Valley Leadership Group.
Cima was at the Palo Alto District tour meeting last week and shared results of the SVLG's fourth annual CEO Business Climate Survey. The survey 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.
"The bagel is a good indicator of Silicon Valley's economy," said Cima.
He said a bagel cost 75 cents in 2004; the same bagel now costs $1.25 in 2008 – a 67 percent increase. In essence, 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.
The region's CEOs believe the greatest cost of living challenges facing the Valley are housing costs, traffic congestion and health care. They indicated the region needs 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 top executives is still positive, said Cima, but he noted, "The same theme resonates, and if these concerns aren't addressed it could affect the economy and quality of life in Silicon Valley."
Cima said a recent poll of 800 Santa Clara County voters showed 63 percent believe California's economy is headed in the wrong direction, while 28 percent believe it is headed in the right direction. Their view of the region's economy is better, but not by much - 42 percent believe Silicon Valley's economy is headed in the wrong direction, while 46 percent believe it is headed in the right direction.
The voters' top concerns were the need to improve education, (81 percent, very important) and the need to improve the state and local economy (78 percent, very important).
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.
Cima said 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.
Cima wanted to get the Realtor pulse about the region, as well.
"Yours is a strong customer service occupation. What's important to you?" Cima asked.
SILVAR members expressed their concern over affordable housing. Cima said 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," said Cima.
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.
For further information, please email or call the SILVAR office at (408) 200-0100.