Nevada's abundant sunshine and untapped geothermal resources are expected to fuel growth in clean energy from $11 billion to $167 billion by 2015, says a recently completed survey conducted by the Economic Development Authority of Western Nevada and the Northern Nevada Development Authority.
Last year's report focused on manufacturing, but this year's Business Builders survey queried a record 101 executives from five different business sectors business and financial services, software, tourism, life sciences and health services, and clean energy and is the first true regional forecast of the area's businesses, says Donna Crooks, business expansion manager for EDAWN.
With the U.S. Department of Energy ranking Nevada first in solar resources with 250 sun days per year, and second in production of geothermal power, the state is well positioned for explosive growth in clean energy resources. Nevada currently has 15 existing geothermal plants, 13 of which are in Greater Reno-Tahoe. However, the Business Builders survey cites a May 10 update by the Geothermal Energy Association saying 31 new projects in various stages of development could nearly quadruple the state's production capabilities.
"This one is really exciting for us," says Crooks. "We feel that the expected growth in this industry is going to be massive."
Additionally, 83 percent of companies queried in this sector plan to release new products in the next two years. "That just further supports the growth trend that has been forecast," Crooks says.
Larie Trippet of the NNDA says the underlying message of the study is that not only are the majority of the companies already located here staying, they are expanding. The 48 companies interviewed expect to add roughly $965 million in capital investment, 2,595 new jobs and almost 2 million square feet of new space by 2011.
Other key findings include:
* Business and Financial Services
This category had the highest growth rate of planned expansions and new jobs at more than 40 percent. "The good news is that this industry tends to be the higher-paying jobs," Trippet says.
* Life Sciences and Health Services
This industry also provides some of the highest wages available due to high job requirements. Businesses in this sector are expected to have the largest physical growth by adding 715,000 square feet of new space and are expected to add 475 new jobs. Additionally, half of the eight companies interviewed are headquartered in the region.
"The retirees coming into the area are going to be needing more health services, and that is fueling the growth of this industry," Trippet says.
* Software
An emerging industry, just three of the region's 13 software companies having been in business in northern Nevada more than 10 years, says the report. This category leads capital investment with $18.25 million to be invested in additional square footage and real estate. Ten of 13 companies have expansion plans.
* Tourism and Hospitality
Employment is one of the biggest factors in this segment, with 69 percent of companies interviewed carrying more than 1,000 employees. Eight of 13 companies are expected to expand, adding 830 new jobs and almost one million square feet.
In some open-ended questions based on a 1-7 points system, Nevada ranked high in quality of workforce with a 5.65. But it scored almost to the "red flag" stage of a 3 or below in availability of workforce, with a mere 3.18. "We are working on trying to get more people to consider moving to Reno," Trippet says. "We have jobs, we need people."
The three least favorable conditions of conducting business in the state were cost of living, transportation and availability of labor, while the top three strengths were quality of life, and friendly business and tax climates.
