Creativity is Second Largest Business Sector in Los Angeles County

LOS ANGELES--(EON: Enhanced Online News)--Even during a financial recession, artists and designers contribute substantially to the economic bottom line of the Los Angeles region, according to the 2010 Otis Report on the Creative Economy of the Los Angeles Region, the annual report commissioned by Otis College of Art and Design from the Los Angeles County Economic Development Corporation (LAEDC). In fact, the “creative economy” is the second largest business sector in Los Angeles County (after Tourism and Hospitality). The new data show that the arts, design and entertainment industries together produce 835,000 in direct and indirect jobs for the Los Angeles region (including Orange County). In addition, $127 billion in sales revenues and over $4.6 billion in state and local taxes were generated by art and design-oriented businesses found in the following industries: Entertainment, Toy, Digital Media, Fashion, Furniture and Home Furnishings, Architecture and Interior Design, Art Galleries, Product and Industrial Design, Communication Arts, as well as Visual and Performing Arts.

“The creative talent pool in the region is not as vulnerable to going 'offshore' as has been the case of manufacturing jobs in the creative sectors”

These findings and more were unveiled today at a presentation of the 2010 Otis Report. “The report substantiates the important message that creativity is serious business in Southern California,” said Samuel Hoi, president of Otis College.

The program began with a presentation of the highlights of the 2010 Otis Report by Dr. Nancy D. Sidhu, Vice President and Chief Economist of The Kyser Center for Economic Research at the LAEDC. “The creative talent pool in the region is not as vulnerable to going 'offshore' as has been the case of manufacturing jobs in the creative sectors,” stated Sidhu. “Original artistic creation, innovative design thinking and other higher-level creative work cannot be outsourced easily.”

Other findings in the report:

The Digital Media sector is expected to grow the fastest between 2009 and 2014, with employment of digital artists rising by about 10% in both Los Angeles and Orange Counties. This sector’s job counts actually increased in 2009. More than video games are involved in this projection; demand is quite strong for all types of consumer handheld devices and applications.
Employment growth in the 5% to 6% range is projected for art galleries, the architecture and interior design sector and for visual and performing arts. Art galleries are projected to grow in numbers and staffing as a result of the economic recovery and expansion. Employment in the architecture and interior design sector is expected to grow again when construction activity resumes—by 2012. Among the visual and performing arts industries, employment is expected to grow most rapidly—by 9% or so—among independent artists, writers and actors and their agents and managers.
In sectors heavily dependent on manufacturing activities – Fashion, Furniture and Home Furnishings, Toy – design service jobs are expected to increase and manufacturing jobs to decrease.

The presentation was followed by a discussion moderated by James Canales, president and CEO of the James Irvine Foundation. Guest speakers were Rocco Landesman, chairman of the National Endowment for the Arts and Ann Markusen, economist, professor and director of the Project on Regional and Industrial Economics at the University of Minnesota’s Humphrey Institute on Public Affairs. "At the NEA, we know that artists are placemakers. When you bring arts organizations and arts workers into a neighborhood, the place changes to a vibrant and sustainable community, ” said Landesman. “The arts complement and complete other sectors of the economy.”

This year’s event, held at Zipper Concert Hall at The Colburn School, was sponsored by The James Irvine Foundation, the Department of Cultural Affairs of the City of Los Angeles, Mattel, Disney, Nike, Spin Master, Castle Press and City National Bank.

Included in this year’s Otis Report are two additional reports: Los Angeles: America’s Artist Super City by Ann Markusen, a policy brief commissioned by the Center for Cultural Innovation that demonstrates the influence and needs of artists, and Opportunities in the Arts Are Larger Than They Appear: An Analysis of Product Designer Employment across California’s Industries by Kathleen Milnes, a special report commissioned by Otis College of Art and Design that illustrates the reach of product designers across multiple industry segments.

The full report is available at http://www.otis.edu/econreport.