LVGEA: Passing the torch from 2022 to 2023
1)How was the business environment in 2022, and what are your outlook and prediction for 2023?
The business environment was markedly improved in 2022 as businesses and consumers emerged from the pandemic. That said, 2022 reported some of the highest rates of inflation and interest we have seen in more than a generation; supply chain issues remain a formidable challenge, and labor, land, and water issues remain acute for Southern Nevada businesses.
Where the last few years have largely been about economic survival, 2023 will be about sustainability and solutions. We certainly have some concerns about a recession during the next 18 months; however, Southern Nevada has nearly $30 billion worth of planned, proposed, and under-construction projects in the development pipeline; state and local governments are dealing with surpluses as opposed to deficits for the first time in more than a decade; and unemployment rates are dropping while wages are rising. We are now in a position to invest. We should do so, and that will pay dividends for the next years.
During the past 12 months, Southern Nevada reported a net gain of more than 2,000 businesses.
2)Are There Any Big Announcements We Should Keep An Eye On For The Upcoming Year?
There should be. But, like all major projects, the devil is in the details. Several companies are actively evaluating expansion or relocations into Nevada. As we gain improved certainty — economically and politically — I expect some of these projects will start moving forward.
3)Where do you see our city heading regarding business growth and development?
Southern Nevada’s growth and development is all about establishing multiple areas of specialization. We are gaining significant traction in sectors like sports and entertainment and advanced manufacturing, and we need to actively and aggressively foster opportunities in areas like healthcare and sustainable energy.
During the past 12 months, Southern Nevada reported a net gain of more than 2,000 businesses. However, most of these businesses were small, with just a handful of employees. We have long had an entrepreneurial spirit, but we have fallen short of creating a truly supportive entrepreneurial ecosystem. This will be critical in maximizing our community’s economic potential going forward.
First and foremost is a pro-business environment. Southern Nevada remains competitive today, from regulation to taxation to the cost of operations. Businesses that earn more tend to invest more. That is good for them and for us. Second is Nevada’s can-do attitude when it comes to economic development opportunities.
We start from a position of “yes” and view the community as a partner in the success of local businesses. In my experience, that tends to set Southern Nevada apart.
5)What is the primary focus/mission of the LVGEA as you head into 2023?
We expect 2023 to be a transformative year for LVGEA. In the past, LVGEA’s approach to economic development has been opportunistic, but we are working to be more intentional.
We will strategically align the unique value of the region to the opportunities within industries and aggressively target those intersections. We will leverage our collective assets and recognize the position and value our community brings to the southwest region. LVGEA’s vision is to move beyond resiliency in 2023, creating a strong and sustainable economy that generates innate competitiveness, ensures equitable access to high-quality jobs, and enhances our collective quality of life. We’ll be laser-focused on our core mission of attracting new diverse, and good-fit companies to the region. And we’ll be transparent about how we’re delivering value to the community.
6)What industries are LVGEA focusing on as it looks at 2023 and beyond?
We see economic opportunity everywhere we look in this community. Among our key focus areas will be developing opportunities within the sports and entertainment sector. Beyond game day, fight night, or race weekend, the business of sports is booming throughout our community, and the spinoff effects in healthcare, marketing, production, and hospitality are tremendous.
We are actively working to identify and fill gaps in terms of the goods and services demanded by teams and other sports-related businesses. We are also looking for innovation opportunities in areas like human performance, social advancement, and active AI on and off the field. We believe Southern Nevada has not only emerged as the sports entertainment capital of the world but is rightly positioned as the market where more sports business is done than anywhere in the United States.
Economic Opportunity is Everywhere
From training UFC fighters from around the globe at the UFC Performance Institute to being a hub for the club, agent, and sponsor meetings at NBA’s Summer League to record-setting Super Bowls, Formula 1 races, and National Finals Rodeos,
Southern Nevada’s ability to leverage its unique hospitality assets to not only fill seats but to bring the decisionmakers together is unequaled.
Beyond this, there are countless other opportunities in advanced technology, healthcare, sustainable energy, and logistics that are oozing with potential.