Anaheim: Economy

Anaheim: Economy

Major Industries and Commercial Activity

Tourism is the major industry in Anaheim. An ever-growing number of visitors has caused hotels, motels, restaurants, and retail centers to be built to meet their demands. At the time of Disneyland's opening in 1955, Anaheim had only 87 hotel/motel rooms; presently, those numbers have grown to nearly 20,000. The rise in tourism has encouraged the city to update and add to its facilities. Since being dedicated in 1967, the Anaheim Convention Center has undergone five major expansions, the most recent of which, completed in December 2000, enlarged the center by 40 percent to 1.6 million square feet. Tremendous infrastructure changes in the Anaheim Resort district (surrounding Disneyland and Anaheim Convention Center area) during the past few years have included 15,000 new trees, shrubs, and flowers, as well as improved signage. In 2004, visitors spent $7.3 billion in Orange County (a nearly 8 percent increase from the previous year), $3.6 billion of which was generated by Disneyland alone.

Tourism and business have built a healthy interdependence over the years. The city has become more economically diverse with the development of business and manufacturing firms; Anaheim is currently home to more than 15,000 businesses. It is a center of enterprise for multinational firms, as well as regional and local companies. Located within Anaheim are more than 100 manufacturing plants. The city of Anaheim has been successful in retaining some businesses that had considered leaving by offering loans, tax and utility rebates, subsidies, and job-training incentives.

Items and goods produced: electronic components, electrical machinery, chemicals, guidance and navigation systems, locks, plastics, processed food, aircraft parts, fabricated metal products, communications equipment

Incentive Programs—New and Existing Companies

State programs

California's Commerce & Economic Development Program offers financial solutions by helping businesses secure capital to invest in major public, private, and nonprofit ventures; providing export assistance and financing; and supporting small businesses by offering financial assistance, training, and technical assistance.

Local programs

Anaheim offers qualifying firms economic development rates, new construction incentives, and energy efficiency incentives. Anaheim's "Powerful Partnership for Business," comprised of the city's Community Development and Public Utilities departments, creates customized business programs for economic development support. These include Redevelopment Agency loans and assistance, utility loans and assistance, job training, energy efficiency strategies, environmental assistance, fast-track permitting, and financial assistance and subsidies.

Job training programs

Anaheim's Job Training Program (JTP) offers subsidies of up to 50 percent of an employee's wages for up to six months in order to assist with customized on-the-job training programs that can help new and expanding businesses. California's Employment Training Panel (ETP) contracts with employers to provide training for new workers as well as workers likely to be displaced without retraining. The highly successful program has been responsible for a return on investment of more than $5 for every $1 in ETP funds spent on training, as measured in benefits to businesses, workers, and the state's economy.

Development Projects

In 2001 a massive $5 billion renovation of the Anaheim Resort District (the greater Anaheim Convention Center/Disneyland area, comprised of 1,100 acres) was completed. The project began in 1994 when the city of Anaheim approved a $174 million Anaheim Resort Capital Improvement Program designed to transform the district into a more attractive, pedestrian-friendly destination. Among the results are a 55-acre themed park called Disney's California Adventure, brought about by a $1.4 billion investment in all Disney properties. California Adventure, which opened in February 2001 and is adjacent to Disneyland, pays tribute to the Golden State. The Anaheim Convention Center underwent a $177 million expansion, completed in December 2000. The expansion increased the size of the center by 40 percent; it now houses 815,000 square feet of exhibit space, making it the largest exhibit facility on the West Coast. Also completed is a $396 million "freshening" of the entire Resort District with landscaping and infrastructure improvements, including the addition of 15,000 new trees, shrubs, and flowers, and improved signage. The Anaheim Resort Transit (ART), which began operating in 2001, features 10 buses, two trams, and 25 trolleys providing access to all area resorts, attractions, hotels, restaurants, and shops. In the summer of 2005, Disneyland will begin an 18-month celebration of its 50th anniversary with several new attractions expected to draw more visitors to the park than ever before.

Economic Development Information: City of Anaheim Economic Development, City Hall East, 200 South Anaheim Boulevard, First Floor, Anaheim, CA 92805; telephone (714)765-4323

Commercial Shipping

The city's transportation access is excellent, and is in proximity to several airports, two major ports of call, interstate access, and an extensive public transit system. Freight service is provided by Southern Pacific, Santa Fe, and Union Pacific railroads, which maintain about 30 miles of railroad track in the city.

Labor Force and Employment Outlook

Economic development in Anaheim has created thousands of new jobs. As of early 2005, Orange County has the lowest unemployment rate—around 4.1 percent—among California's 52 counties.

The following is a summary of data regarding the Santa Ana/Anaheim/Irvine area labor force, 2004 annual averages.

Size of non-agricultural labor force: 1,460,000

Number of workers employed in . . .

natural resources and mining: 600

construction: 91,800

manufacturing: 183,200

trade, transportation, and utilities: 264,300

information: 33,500

financial activities: 131,200

professional and business services: 259,600

educational and health services: 130,400

leisure and hospitality: 164,500

other services: 47,300

government: 153,200

Average hourly earnings of production workers employed in manufacturing: $13.38

Unemployment rate: 4.1% (January 2005)

Largest employers in Orange County	Number of employees
Disneyland	21,000
County of Orange	19,000
University of California at Irvine	15,000
CKE Restaurants, Inc.	14,000
Federal Government	11,800
Boeing Aerospace	10,080
State of California	10,000
Albertson's	8,700
St. Joseph Health Care System	8,500
Tenet Healthcare	8,300

Cost of Living

The following is a summary of data regarding key cost of living factors for the Anaheim area.

2004 (3rd Quarter) ACCRA Average House Price: $674,000

2004 (3rd Quarter) ACCRA Cost of Living Index: 151.5 (U.S. average = 100.0)

State income tax rate: Ranges from 1.0% to 9.3%

State sales tax rate: 6.0% (food and prescription drugs are exempt)

Local income tax rate: None

Local sales tax rate: 1.75%

Property tax rate: 1.0% of assessed valuation

Economic Information: Anaheim Chamber of Commerce, 201 East Center Street, Anaheim CA, 92805; telephone (714) 758-0222