Economic view from Silicon Valley corner offices
If you’re looking for work, look no further, the Silicon Valley is where you want to be.
According to the 2012 CEO Business Climate, a survey released by the Silicon Valley Leadership Group, the region is leading the state in economic success. In fact, its gains have far exceeded the recovery of the nation, especially when it comes to high-tech employment.
Companies who are members of the SVLG anticipate hiring more than 5,000 new people in the coming year.
When it comes to job growth:
- More than three out of five companies added jobs in Silicon Valley during 2011
- 55% expect to see job growth in their sector during 2012
Of course besides the job market, the region remains an attractive place to live and work for many reasons. The top three are:
- Access to skilled labor
- Entrepreneurial mindset
- Proximity to customers and competitors
#ceosummit Sf Mayor Ed Lee "Start-ups have long-term views. They are not looking for instant gratification."— Carl Guardino (@CarlGuardino) April 24, 2012
This all sounds like great news—but the business community is also very realistic about the national and international competition. Silicon Valley companies have to innovate more quickly to remain the leader. The survey points out several challenges including:
- Employee recruitment/retention
- High housing costs for employees
- Business regulations
#CEOSummit Society moving at speed of technology but our institutions are 100 yrs old-Jim Spohrer— Brent Hailpern (@n2cjn) April 24, 2012
That’s why many believe businesses and government leaders have to work together to create a better business environment. How can this be done? Here are a few recommendations for local governments:
- Improve K-12 public education
- Reduce public pension costs
The Valley’s economy is on the right path, however, many agreed there is still a lot of work to do.
“Silicon Valley is getting increasingly bullish on the improving economy, with almost half of our respondent companies planning on hiring this year,” said Silicon Valley Leadership Group CEO Carl Guardino.
“But respondents also were clear that persistent infrastructure and government issues like the high cost of housing and continual cuts to government budgets negatively impacting local companies and Silicon Valley’s quality of life.”
188 people were surveyed, half of the members of the Silicon Valley Leadership Group, a regional partner of the California Economic Summit.
The Summit, which is attracting hundreds of Californians from all fourteen regions who held economic forums in March, is going to spend a great deal of time focusing on some of the issues from the survey.
- How to better prepare our workforce
- How to fix our aging infrastructure
- How to create better access to capital
- How to support and encourage innovation
- How to streamline regulations
The first ever Summit is May 11 in Santa Clara.