As civic, business, education, environmental and nonprofit leaders convened in the low desert last week for the annual California Forward Economic Summit, the Coachella Valley was the ideal backdrop with its own exciting economic momentum from which to discuss how we collectively can make a positive impact on the California economy. The 19th annual Coachella Valley Economic Partnership (CVEP) Economic Report was unveiled with economic and demographic data to help kick off the three-day event.
As a leader in banking Inland Empire businesses and households for 90 years, Bank of America has been part of various economic cycles – but the current financial pulse across the low desert is truly notable.
While the 9-city Coachella Valley region continues to have its share of income, education and service gaps, over the past few years, we have seen the area economy adapt, get creative and display incredible resiliency in overcoming the pandemic and facing economic headwinds such as inflation. Indeed, there have been tremendous economic strides by businesses across a variety of industries as well as more personal wealth creation from local year-round households that together point to signs of a prospering region.
As a business banking executive for Bank of America in the Inland Empire, this economic momentum is reflected in my own local low desert business clients who are planning for expansions, hiring and launching new ventures this year and into 2024.
Trends driving momentum
Driving much of this exciting growth is the region’s change from a seasonal economy to a year-round one as more people make the Coachella Valley home − and businesses follow those households.
Helping spur this growth even further are notable projects coming to the region such as the Acrisure Arena, Eisenhower Medical’s expansion and Disney’s announced master-planned community.
The ripple effect from this economic momentum are jobs in the building trades and contracting industries, and more business for landscapers in landscapers, roofers and restaurants, as well as an uptick for hospitality-related companies.
Across the Inland Empire, we are also seeing projects that were put on hold during the pandemic now back online and generating job activity and revenue in the low desert. The health care industry overall also continues to be a strong economic driver in the region, with ancillary health and wellness-related services and businesses expanding into the Coachella Valley.
Local business growth
In the Coachella Valley, we are also seeing positive growth trends among small and mid-size businesses. Recently, Bank of America released its first-ever Mid-Size Business Owner report, a survey of business owners with $5 million to $50 million in annual revenues. Nationally, key findings found that over the next year 75% of mid-sized business owners expect their revenue to increase, 71% are planning to hire and 90% are investing in digital strategies to further optimize their businesses and operations.
Locally, mid-size business owners are also optimistic as commodities prices level out and non-discretionary products continue to remain in high demand.
Inland Empire small businesses are growing — at a rate of 4.75% each year, and Bank of America’s local small businesses clients are seeing top line revenues continuing to grow as well. As the nation’s number one small business and small business administration lender, Bank of America currently has nearly $460 million in credit extended to small businesses across the Inland Empire.
Small businesses are also optimistic about the economic strength of the Coachella Valley, as construction, restaurants, medical practices and health-related businesses continue to expand here. Our local small business bankers report significantly more SBA loan activity, a trend in line with Bank of America’s recent Women & Minority Business Owner Spotlight report which found the majority of women and minority business owners nationwide plan to expand their business and hire more employees over the next 12 months.
New wealth creation
Despite inflation and the current interest rate environment, consumers coming out of the pandemic have been steadily saving money, investing wisely and building their own wealth. This isn’t just in the traditionally affluent communities of the low desert – more families throughout the Coachella Valley were able to purchase homes in recent years, enabling them to build property value that builds wealth creation for the next generation of working families.
Given this exciting progress across the region, the timing couldn’t be better to address how to make this growth sustainable and equitable for even more people across the Coachella Valley to prosper and succeed.
Bansree Parikh is the senior vice president, market executive for Bank of America business banking in the Inland Empire, leading a team of bankers supporting local companies with $5 million to $50 million in annual revenue. She can be reached atInland.Empire.Market.President@bofa.com.
