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Business Sector Profiles
Construction
Southern Nevada’s steady
population growth, as well as its continued appeal as a
vacation destination, has created a boom in the construction
industry that has lasted more than a decade. In fact, 33 of
the 100 top-grossing companies in Las Vegas are construction
firms. Though resort building has slowed in the past year,
infrastructure construction has increased, particularly on the
city’s roadways, and new home building remains a vibrant
industry.
Distribution and Trade
With an excellent transportation
and communications network, Las Vegas has become a hub for the
interaction of western markets. Las Vegas’ advanced,
interdependent, and continually expanding web of air, road,
and rail facilities makes the Valley an ideal site for
shipping and trade ventures. In a comparative survey, Las
Vegas ranked below 10 other Sun Belt and West Coast cities in
costs of inbound and outbound shipping. In 2000, three new
distribution companies entered the market, bringing the area’s
total number to 420.
In the early 1990s, trade lagged
behind other industries in overall job growth; however, with
the regional focus on economic diversification, marketing of
resources, and improved infrastructure, trade surged forward
to become one of the leaders in late 1993, and it has remained
there ever since. Employment figures for the Las Vegas MSA
(metropolitan statistical area) reported 161,200 workers in
the trade industry in 2000. Southern Nevada’s Foreign Trade
Zone 89 – which encompasses 390 acres at the Hughes Airport
Center and, most recently, 160 acres at the Las Vegas
International Air Cargo Center – has helped the area become an
international business destination. The facility has grown
from 5,000 square feet in 1986 to more than 300,000 square
feet today. There are currently almost 100 international and
domestic companies consulting with and utilizing Foreign Trade
Zone 89.
Financial Institutions
The thriving Las Vegas economy has
attracted the attention of several of the nation’s largest
banks, including Bank of America, Washington Mutual, and Wells
Fargo. In total, 23 different banks serve the city, along
with several credit unions and savings and loans. Washington
Mutual, along with Black Mountain Community Bank and Nevada
Commerce Bank, entered the market in 2000. Many of the more
than 350 bank branches in Southern Nevada are located in
supermarkets for added customer convenience. Most offer
banking via the Internet and such additional benefits as an
extensive ATM network (more than 1,600 machines at last
count), as well as the lending power to underwrite the dreams
and visions of the city’s most ambitious entrepreneurs.
Southern Nevada also boasts an impressive array of community
banks that combine and indepth knowledge of the local market
with a high degree of personalized service.
Gaming
The safest bet in Las Vegas is
that gaming will always be the city’s most prominent
industry. In fact, it’s difficult to discuss any other aspect
of Southern Nevada’s economy without taking into account the
impact of the gaming industry, especially considering that
gaming revenues have made Southern Nevada’s tax assessment –
which includes no corporate, state, or local income taxes –
the lowest in the nation.
The most recent wave of megaresort
development reached its peak in 1999, as the Venetian and
Paris Las Vegas joined Bellagio and Mandalay Bay as the
Strip’s newest attractions. For 2000, hotel construction
projects – including the new Aladdin hotel and casino – added
4,219 rooms and more than 109,000 square feet of convention
space. Despite the ever-increasing variety of accommodations,
hotel room occupancy averaged 89 percent in 2000, according to
the Las Vegas Convention & Visitors Authority. Gaming revenue
for Clark County tops $7.6 billion – more than enough to
maintain Nevada’s status as number one in the nation for
casino gaming.
Government
The provision of service at the
federal, state, and local levels makes government the
third-largest service-based employer in Southern Nevada. Las
Vegas is the seat for Clark County, which includes the
incorporated cities of Boulder City, Henderson, Mesquite, and
North Las Vegas. In addition to traditional government
offices are those unique to the state, such as the Gaming
Control Board, the federal facilities of the Nevada Test Site,
and Nellis Air Force Base, which continue to have a major
impact on the local economy.
Nellis Air Force Base, located
eight miles northeast of Las Vegas, encompasses 10,000 acres
and is one of the area’s largest employers, with a current
workforce of more than 9,000 people. Home of the Red Flag
combat training exercises, the world-famous Thunderbirds Air
Demonstration Squadron, and the USAF Fighter Weapons School,
Nellis maintains an annual budget in excess of $152 million.
The Nevada Test Site has evolved
from its original function as the site of above ground nuclear
testing into a ready-made laboratory for the Department of
Energy. More than $8 billion in government investment has
been distributed into programs, such as Kistler K-1 reusable
rocket testing, emergency response training to hazardous
chemical spills, antiterrorism training, a solar energy
production facility, and the development and commercialization
of hydrogen-powered fuel for vehicles, engines, and
appliances. The test site, located 65 miles northwest of Las
Vegas, is comprised of more than 1,100 buildings valued at
more than $700 million. The entire site spans 1,350 square
miles, an area larger than the state of Rhode Island.
Manufacturing and High Technology
Southern Nevada is becoming an
increasingly valid and accepted market for manufacturing and
high-tech industries, a result of corporate confidence in Las
Vegas’ skilled labor force, continuing education resources,
advanced communication infrastructure, and accessibility to
national and international markets. It is estimated that more
than 500 companies involved in E-commerce and Internet-related
businesses are now operating in Nevada, according to figures
compiled by the Internet Business Alliance of Nevada.
Las Vegas’ high-tech growth has
also been reflected in the manufacturing sector. The Las
Vegas Perspective 2001 lists 820 manufacturing companies
in Clark County with an annual payroll in excess of $164
million. Considering the region’s commitment to technological
advancements and efficiency, as well as the diversity within
the local manufacturing sector itself – from wood, plastic,
and rubber products to stone, glass, and metals materials to
measuring, exacting, and electronic instruments – the Las
Vegas Valley stands prepared for future growth.
Retail
Retail development is generally
reliant on population growth, so the question becomes not
whether Las Vegas has experienced an increase in retail
development, but how much of an increase is expected. When
Southern Nevada’s population topped the 1 million mark, a new
assortment of retailers, such as Lowes Companies, Inc., and
Walgreen Co., joined the ever growing wealth of retail and
factory outlet centers, including nine malls, more than 90
major supermarkets and more than 100 major shopping centers
now in existence.
Areas reporting the most new
activity are those in which residential growth has increased
most sharply: Green Valley, Summerlin, and along the path of
the new Las Vegas Beltway. In 2000, nearly 4.4 million square
feet of new retail space was planned. Existing malls such as
the Fashion Show and the Forum Shops at Caesars Palace are in
the process of doubling their capacity.
Clark County retail sales topped
$21.1. billion in 2000, a figure more than double the report
for 1993. More than 26.3 million square feet of rentable
shopping center space is available in Southern Nevada, with a
vacancy rate of only 3.1 percent. Las Vegas is now home to
most of the nation’s largest and best-known department stores
and specialty shops.
Travel and Tourism
Two-thirds of every dollar spent
in the state of Nevada originates in the tourist industry.
From finance, construction, and retail to service, utilities,
and transportation, Las Vegas’ entertainment venues and
hotel-casino resort properties provide a steady demand for
in-house jobs, and create a wealth of business opportunities
throughout the community.
Las Vegas is touted as the
Entertainment Capital of the World, and virtually every aspect
of its economic community is influenced by tourism. The
impact of this industry has earned Las Vegas the designation
as one of the nation’s top hot spots by the American Society
of Travel Agents (ASTA) Hot Spots Survey. The respected Zagat
guide also praised Las Vegas as an affordable resort
destination, determining that Las Vegas has the lowest average
hotel room rates among 32 national travel markets. Sometimes
overlooked in the overall travel picture are the 120,000
people who come to Las Vegas every year to get married.
The city has also earned a
reputation as the convention capital of the world. In 2000,
the city hosted 3,847 gatherings, attended by some 3.3 million
people. Among the largest conventions in 2001, the National
Association of Broadcasters expects 115,000 delegates, the
Magic International show estimates 90,000 and Softbank Comdex,
Inc. – the city’s largest convention – projects an attendance
of 225,000.
Overall, some
36 million people visited Las Vegas in 2000, with an economic
impact of $31 billion. That’s more than the number of people
who visited Disneyland, Walt Disney World, and all the other
theme parks in America combined. Tapping into international
tourism has become paramount in the marketing strategy of the
Las Vegas Convention & Visitors Authority (LVCVA). In 2000,
the LVCVA opened an affiliate office in Sydney, Australia, and
renewed contracts with travel agencies in the United Kingdom,
Germany, Japan, and South Korea. International tourism
continues to increase, accounting for 13 percent of the total
number of annual visitors to Las Vegas.
If you have
further questions or would like to purchase publications
regarding business in Las Vegas,
click here to visit the Chamber Store
or call the Las Vegas Chamber of
Commerce at (702) 735-1616.
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