CSUDH – South Bay Economic Forecast Conference – October 25, 2018


You are watching DHTV from California
State University Dominguez Hills Good afternoon and welcome to Cal State
University Dominguez Hills the South Bay economic forecast event may have your
attention please and please take your seats
thank you very very much folks for joining us I can feel the energy in the
room the business energy is noticeable and very robust here today so thank you
very very much for being with us I’m Frank motek the senior money anchor for
KNX 1070 Newsradio Donner to be back with you here on the campus this
afternoon ladies and gentlemen you did not have to get up with the chickens
today to soar with the Eagles who’ve gathered here today this is the first
time we’ve had this event in the afternoon and love to see all the
networking and robusta discussion going on here on the campus this afternoon a
lot to talk about we can celebrate at least the doubt was up today good thing
we didn’t have this yesterday right up 401 Nasdaq of 209 and the S&P 500 up 49
and here’s the forecast you’ve been waiting for mostly sunny
hype around 75 lows will be down to around 65 we’re showing a gorgeous 72
right now here in Carson thank you very much for your attention ladies and
gentlemen and we’re gonna get started now we have a lot to talk about a lot of
exciting things happening here at Cal State University Dominguez Hills the
South Bay economic forecast an event is not an event nowadays unless it’s on
social media so for those of you who have your smartphones you know in the
olden days they used to say oh you know put away your phones but we don’t do
that anymore if anything you’re encouraged to take them out and take
lots of pictures the hashtag is South Bay forecasts for Twitter and Instagram
at Dominguez Hills is the universities handled and if you want to be generous
at a Frank motek is yours truly handled as well hashtag CSU ADH will also work
technology ladies and gentlemen never stand still it’s always changing
adapting and progressing and oftentimes thing
that seemed improbable or even impossible one year earlier can quickly
become conceivable and what a fast year it’s been and a lot has happened and lot
of exciting things have happened that we’ll be hearing about today very
honored to be with you here this afternoon ladies and gentlemen because
like many of you I’m eager to learn about future innovations that are going
to change our lives the way we drive for example the way we conduct financial
transactions social media platforms we use the changes that are taking place in
the cities where we live what will be the social impacts and how different
will our kids lives be from our own today we have an exciting lineup of
panelists who will discuss some of these futuristic concepts and how they’re
going to affect the way we live and do business in an effort to support the
futuristic concepts of today’s program you can find today’s schedule at the
following URL there it is on the screen and I’d like to acknowledge the
fantastic sponsors out there ladies and gentlemen who’ve helped support this
important occasion many thanks first of all to our gold sponsors which include
Pacific century custom service MS Bri neuen CSU d-h alumna AEG sa recycling an
Ivy and Leo Chu again congratulations and thank you very much to our gold
sponsors and out for the silver sponsors we gratefully acknowledge your support
like to take this chance now to recognize the following elected
officials who’ve joined us here today as well California State Assemblyman el
muro Tucci city of Carson mayor the Honorable
Albert Robles city of Carson councilman Cedric Hicks city of Carson mayor
pro-tem joe wayne hilton city of Hawthorne
councilmember olivia Valentine city of Torrance mayor the Honorable Patrick
fury city of Torrance councilmembers here as well include Mike Griffiths Jeff
Rizzo milton herring and george chen let’s hear it for our elected officials
who taken the time to join us afternoon and now we’d also like to
recognize the Cal State University Dominguez Hills South Bay economic
forecast student research competition finalists that are exhibiting in the
ballroom today so a special shout out and salute to you guys there Andrew Lu
and Joshua Lozano Eugene Cox Nathan Castro Malika dust and they yaki and
Isabel Gonzalez did I get it right Malika I hope so thank you very much
thank you for that ladies and gentlemen today’s program will be in three parts
will be hearing updates and housing and telework trends entrepreneurship and the
South Bay economic forecast from the California State University Dominguez
Hills economics Institute and UCLA Anderson
we will then transition to the speaker panel who will discuss a region and
transition the future is here and following that we will invite all the
speakers to the stage for an audience Q&A and lastly we’ll end the afternoon
with a craft beer and wine tasting reception in the palm courtyard which is
just below us and you can taste the local craft brewery flavors of King
Harbor smog City three Weaver’s and strand also told make sure you hang on
to your nametag so you’ll be able to get in there when this is done also on
display by Honda R&D America’s will be one of the mobility innovations that
you’ll hear about today their autonomous workhorse before we dive into the
program however this gentleman wants to take a photo so we’ll take care of that
right now right no okay all right I would like to introduce the host the
host of today’s economic forecast ladies and gentlemen the president of
California State University Dominguez Hills dr. Thomas a Parham and for those
of you who may have not have met the president at the reception yet he joined
the University as the 11th president of this institution this year and it’s an
honor now and pleasure to invite president Thomas a Parham to the stage
to deliver the official welcome on behalf of
université ladies and gentlemen president thomas a Parham good afternoon
oh wait a minute all the chatter that y’all had to hear min ago trying to
settle down and that’s the best we can do good afternoon so two pieces of
ritual I want to engage in as I welcome you first I heard our host and emcee
introduced what I think is why we do this which is our students and the kind
of intellectual horsepower that we have on our faculty helps to produce and
cultivate the intellect that you see right there this ladies and gentlemen is
the future those of us who occupy the adult quarters of the world right now do
so so that we prepare a way for them and I think what we can do is let them know
how much you appreciate them and how much you encouraged them right in their
academic endeavors so that they can take their rightful place of rulership and
mastery over this South Bay reason give it up for our Cal State University
students let them know you love them turtles in the house is what we say next
thing I’d like to do is I want to invite you to engage in a what is a brand-new
ritual because part of what we want to do is make sure that you know what our
students know we wanted to create a sense of belonging on this campus and
there’s no place I would rather for you to be in talking about this South Bay
economic forecast than on this campus of Cal State University Dominguez Hills we
ought to be the place that is hosting this kind of conversation with topics of
economic forecasting become the topic of critical discourse and analysis in this
place so I want you all to repeat after me in a very loud resounding voice right
because all of you are now citizens of the terminations say good day Turo
citizens oh that sounds so weak let me try that again
maybe it’s my tire something to get that together good day taro citizens
I respect your humanity and I bear witness to your success that’s what our students are now
exchanging with each other as they walk up and down the walkways you’ll start to
see signs begin to appear as we do this so with that with those two rituals I
want to greet you and say good afternoon and welcome to the California State
University Dominguez Hills it’s great to see all the representatives here from
the various businesses and industry sectors that are here in this South Bay
region which we are proud to be a part of I also bring you greetings from the
California State University system what is the largest system of public higher
education not in the region not in the state not in the western United States
in the entire nation had nearly four hundred and ninety thousand students
that we educate that sounds like an applause line to me we are one of those
23 campuses that takes a great deal of pride in educating that your Cal State
University Dominguez Hills your Cal State University Dominguez Hills is not
a small place anymore we used to be five and six and seven and eight thousand
four we are nearly 16,000 students now it’s nearly 16,000 and I’m glad to hear
the gasbag oh yes they have grown but you ain’t seen nothing yet just be
patient with us and help us grow along with you and we’re looking forward to
that so we are proud to be one of those 23 campuses trying to do our part to
educate our broader swath of the state citizenry and we’ve got a lot of
excellence here I think on campus we invite you to come and take a part we
think we represent one of the best opportunities to cultivate investment
and interest in workforce that is culturally diverse our demographics are
among the most diverse not only in the California State University system but
in the entire nation everybody is talking about how to create a more
diverse and inclusive and equitable workforce environment and right here you
have the best living laboratory right here on this campus in your region so I
truly appreciate you taking your time to participate in what I believe is a very
important gather and I’m excited that this gathering is
here but understand that you’re charged today beyond listening to our speakers
and the presentations is not simply to hear a summary of issues going on it is
to think about dreaming it is to think about forecasting it is to think about
how do we innovate and create and think creatively about those things that we
can do to push the economy of this region forward right that’s what we’ve
come to do today not just to get a summary of what’s going on in the region
y’all with me on that so I really want to thank write all of our distinguished
speakers who are here as well included among those I want to take a shout out
to our two distinguished professors our own Jose Martinez who’s co-director of
the Cal State University Dominguez Hills economics Institute who’s associate
professor of economics Jose way to the crowd and say hello right he’s chair of
our County finance and economics department also his co-director for the
CSU D H Economics Institute is dr. Finland Prager dr. preggers waved to the crowd so also want to recognize and thank
today’s conference organizers including dr. Winn where is your deanship at
there’s dr. win right here my friend please give it up dr. Winn
he’s our Dean of the College of Business Administration of public policy many of
you’ve known and I want you to say hello to our vice president for University
Advancement this is vice president Carrie Stewart right here he’s part of
our team and all the members of the conference planning committee so what
all the members of the conference planning committee who’ve had a hand in
putting this together right you always hear about what didn’t go right this
sign is not quite right whatever but you rarely hear the praise everybody who had
a fingernail or hand in helping to plan this event please stand for me please
stand give it up for him if he would give it up the California State University
Dominguez Hills is also pleased to partner with UCLA Anderson to present an
economic forecast that specifically focuses on the South Bay and that’s the
report rule reveal and as our excellent panel of speakers I think that will
demonstrate this South Bay is a very influential and vital region in the
greatest Southern California economy but I think that I want us to be not a
hidden gem because if we are a hidden gem it is not just people’s fault for
not knowing it is partly our fault for not leveraging the knowledge and
information that we create to let people know why what we do in this South Bay
region is important it is our job to seize that narrative and I hope forums
like this help us begin to do that as a report really talks about it is not just
that we want to be influential it is that we also want to be on the cutting
edge of change we manage this university in a way that not only seeks to follow
the leader but to define and frame the discourse I want to set the curve not
follow the leader so I want this forum in other forums we will have like this
in the future to help us set the curve about what we need to do about the
economics of this region that then sets a pace for the rest of the state and
indeed the nation and so as you undoubtedly already know companies
within the South Bay region represent every major economic engine in this
whole region we’re talking about healthcare we’re talking about aerospace
entertainment transportation trade technology energy right in many cases
the South Bay are the leaders and those interests but one of the most critical
resources of course are our people our people the leaders ladies and gentleman
are only good as the work produced by the people who work with and for them
understand that as the president I hope you understand that even as the
executives that you are but we really want to acknowledge and support our
people and also those who are our customer base and
next generation of workers who will be there much like our students will be and
the success of our pre-k programs k-12 schools regional community colleges and
our four-year colleges universities will determine in part the success of your
business and our economy and you’ll be challenged to look beyond the sometimes
myopic view of academic major alone and understand that both the academic and
the co-curricular learning the academic and the co-curricular learning and I
emphasize co-curricular because 20 30 40 maybe 50 percent of what a college
student will learn in their years at an institution they will learn outside of
the four walls of the classroom in co-curricular ways and some of that each
of you are making possible by providing internship opportunities etc for our
students so we certainly appreciate that so we all have a role to play and it is
why we are pursuing similar partnership opportunities I think within the fields
of entertainment digital media technology transportation and the
blockchain skills necessary to meet the projected workforce demand of our region
which we know is growing in changing dynamic this is not a static place it is
a dynamic place and it changes an is our job to keep pace with what that change
is so I think it’s fair to say then I’m proud of the work that Cal State
University Dominguez Hills is doing to advance the vitality of the South Bay
economic region we are proud to be partners in this region with all of you
as together we help to stimulate the vitality and the creativity and the
innovation that comes out of here so while there’s work yet to be done the
future I think it looks promising and we are on the right path Cal State
University Dominguez Hills looks forward to continuing our work with all of you
and truly make a difference in the lives of the students in our community so on
behalf of our Chancellor Timothy white and the California State University
System all of my cabinet and administrators our Dean’s and academic
faculty on behalf of all of our students here in the turtle nation I say welcome
again to the California State University Dominguez Hills thank you very much thank you very very much dr. Parham for
that warm welcome and for the family treatment here on the campus and for
lifting the business spirits here in the South Bay and indeed throughout all of
Southern California ladies and gentleman I would like to
direct your attention to the screen to view today’s speakers schedule as you
can see a full program we’re gonna move things right along I’d like to introduce
our very first speaker now dr. Jose Martinez the co-director of the
economics Institute an associate professor of economics right here at Cal
State University Dominguez Hills he currently teaches financial forecasting
microeconomics and macroeconomics principales international business
within the accounting finance and economics department here at Cal State
University Dominguez Hills his research interests are labor economics applied
micro migration crime and time series econometrics ladies and gentlemen please
welcome to the stage dr. Jose Martinez thank you very much there you go
so today we’re gonna be talking about housing and transportation trends and
some highlights something new there’s gonna be beer right because so those are
you have been here before we know that as before we divided the South Bay
housing market into two areas the coastal communities and the inland
communities beautiful torrents of course for the coastal communities first of all
to analyze the different factors that are gonna play a role in this market
mainly jobs and income growth there’s gonna be a positive factor its
California everybody loves to be here so that’s gonna be a keep playing a factor
in the housing market no matter what happened negative issues affordability
especially for millenials that’s gonna be an issue is gonna affect mobility and
interest rates and the tax reform that’s going to impact the housing market in
the near term on the supply side we have nothing new there’s not much or
construction so housing construction is inadequate in the state about a hundred
thousand unit deficit and the approval process is too long and too costly so in
case you don’t know this is where things stand right now for September 2018 cells
medium prices and square per price per square feet is higher in coastal
communities no surprise there right if you look at the trends in self medium
prices and actually for my students of finance 484 where are you ok this is
gonna be in the quiz you notice there’s a negative trend in
sales and a slow growth in prices and similar trend in price per square foot
so this is what we see in terms of the trend and the forecast in housing for
the two areas so we saw a big drop in sales especially for inland communities
and the forecast is a big draw for sales in the coastal communities in terms of
prices we saw big gains especially for inland communities but the forecast is
for moderated increases in prices and for the similar story for price per
square feet so to summarize mother growth and housing prices decline in
sales and affordability is gonna be the key tax reform at the federal response
should start affecting the housing demand even more so to some people in
the South Bay not you but to some the alternative is to rent to rent instead
of owning a home but things are not that different in their in the rental market
almost 60% of renters in the in California are burden the way that they
define to be moderate burden is if they spend more than 30% of their income in
housing and severe burden will be 50% or more of your income so 60% of people in
California are burdened in the rental market if we look at changes you can see
that the median renter income has gone up but meaning rent has gone up even
further and affordability or the overall burden
has gone up also and if we assume in at the county level we can see a similar
picture for every county in Southern California burden rate is almost 60
percent so that’s a serious issue and in terms of the changes
see the same by the medium renter income gone up but rents have gone up even
further the Burton rates are even higher than
before so we should think what should be the solution and there are some
proposition to try to address this issue the issue of housing in general but I
believe there’s no single solution to the problem and most likely the solution
will not likely come from government might likely is going to come from a
market so what are the implications assuming that economy keeps growing for
ability issues is gonna play a bigger role in mobility and that’s gonna affect
the potential for the housing market for owners renters and millenials and
commuters affordability issues is gonna be the key and traffic is gonna continue
to be horrible so for employers is going to become even harder to attract and
retain workers so that’s going to be in a very severe issue for employers so one
potential solution and just one of them could be telecommuting and more flexible
scheduling this is a live picture from the 91 in Corona seriously that’s it’s okay but we at the
South Bay economics Institute partnered with the South Bay workforce in business
on board in the South Bay cities council the government to study telework and
flexible practices in the South Bay and by the way we have a conference coming
up in January 16th so mark your calendars we’re gonna be talking about
telework and flexible scheduling so what is the benefits of telework and flexible
schedule these are some of the benefits according to the literature and surveys
the main ones for larger entities is about compliance with the AQMD reduce
traffic congestion improve work-life balance improve housing options and
increase productivity productivity is always a major issue for employers
though we’re thinking how can I make sure that the poor employee is working
if it’s a home for example but I think there’s training to be done and they can
really learn how to manage that type of a work environment if we look at workers
in LA in terms of a commuting in 2013 you can see that for example the workers
in LA most of them come from LA County no surprise there but some of them come
from Orange San Diego San Bernardino Riverside Ventura most of them arrive by
car some of them use public transportation and a few of them work
from home and the median travel time feel sorry for the people from Ventura
in San Diego this is the medium time 90 minutes so more than half of them drive
for more than 90 minutes and if you look in 2016 not much difference in any of
them not even the travel time if we look at the specific cities in the
South Bay and this is for the average time to work the travel time is the same
story it doesn’t change much
in the last eight years you can see the changes in the last eight years not
major change as we said when we look at the county level
same story no significant changes in car usage public transportation we see a
slightly upward trend in working from home which is good news I guess but only
for some counties and a slightly upward trend in carpooling rates finally for
the percentage of commuters our drive for more than one hour shows a very very
slightly increase so lately we have seen housing prices going up and the forecast
is maybe for a slower great growth rate commuting times keep going up but a very
slow rate so what is the solution to this problem so maybe there’s no single
solution to the traffic issue in the housing issue as economists we always
believe that is about incentives so I’m not necessarily suggesting that it’s
gonna be about government but people workers employers coming up without a
solution as humans we have a tendency not to react to a slow moving events
does the truth so as we sit in traffic and every year the commute gets one
minute longer we don’t react to things we just take it for granted that is a
horrible commute and everybody takes it so maybe we need a shock to the system
or at least we need a beer right so now it is my pleasure to
introduce my co-author and co-director of the South Bay economics Institute my
esteemed colleague dr. Feng Wynn Prager is an assistant professor of public
administration here at Dominguez Hills his research include policy of and
economics of disasters particularly environmental and terrorism policy and
the impacts of regional economics and transportation system please welcome dr.
Berger to the stage to present on intrapreneurship thank you so much to dr. Jose Martinez
is really an excellent colleague very gracious so Jose always gives a really
great talk and so I thought I’d put a bit of extra practice in this year and I
was sat there on Sunday night family movie night I’ve got a captive audience
I’ll give my talk now so I went through it is feeling good I felt good asked my
wife she’s like yes that’s pretty good that’s my daughter she goes well it’s a
bit boring so I’ve changed it a bit hopefully it’s
a little bit more interesting and I love this stuff I find out work both
fascinating and rewarding I’m Jose and I both really proud to have launched and
built the South Bay economics Institute we’re now in our third year and we’ve
already brought in nearly three hundred thousand in grant funding which supports
cutting edge faculty research some of which Jose just presented as well as
student scholarship and community service in the South Bay and we’re
really proud of what we’re building here this paper is a really good example of
many of these elements and we’ve actually brought in more faculty from
the College of Business Administration and public policy to work on projects
were those so dr. Hugo Senseo came to us with this idea about studying the
relationship between governments and entrepreneurship in each city in the in
Southern California we said yeah we’ll go for it this Suns fantastic we had
amazing research assistance from John Tamara who is an MPA graduate of our
program excellent student did a fantastic job
so government and into entrepreneurship doesn’t where I’m from it doesn’t
usually fit right so we’ve got our government worker on the left there if
you’ve seen Yes Minister that’s actually what they look like to be alive and
entrepreneurs do they do they match all the time well all the government workers
I’ve met in this region have been really dynamic and engaging and so actually
they probably look more like this I can see you know that looks a bit like from
Fulton from Torrence they’re riding along the beach so to highlight some of
these connections we had a we hosted a conference on campus where we invited
both local entrepreneurs and local and government officials policymakers to
come and discuss what they saw is working for them on both sides and how
each of them could improve in terms of and the resources provided into them by
government but also and what entrepreneurs really needed to help them
them five and one I just want to really thank
here Provost max Wagner who came to speak at the event and Mike Grimshaw
from the entrepreneurial Institute who did a fantastic job helping us organize
the event really helpful and it just shows the community that we have here on
on campus now one comment really stood out for me one of the entrepreneurs in
that we’d invited said you know working in this region is like drinking from a
broken fire hydrant there’s just so much information and so many resources that
are provided to us that it’s almost hard to know what to what to use and so we
really wanted to think about well is this picture the same across the state
is it the same across the US and it it seems like it might be California is
still ranked first in start-up activity so don’t believe all those rumors in
Washington DC California is still number one we’re still driving the national
economy in many different ways we’re 9th in Main Street entrepreneurship so
that’s not just high tech that’s also high street we’re 14th in terms of the
growth of entrepreneurship so if all those other states didn’t come and steal
our new ventures then maybe would be growing even more there’s a lot of joke
for the economic development crowd there let’s keep it niche LA is a massive part
of that within the state of California so we’re we’re third overall in terms of
the proportion of new entrepreneurs within the country we also thought then
what’s it third in terms of the financings of new of new enterprises and
that’s both in terms of the number and also the dollar value so we’re we’re
fourth overall in terms the dollar value so the news is generally good at the LA
level and in terms of the South Bay as well we’ve got we’ve clearly got a huge
number of thriving entrepreneurial businesses in this region and this is
really highlighted in the report and this is taken from the use of the
understand economic forecast South Bay connect for
report that is put together and will be presented later you can just see the
wealth of different companies from different industries we’ve got the
silicon beach phenomenon so spilling down into the South Bay we’ve got sort
of traditional industries in terms of aerospace healthcare all being in a
biotech all being supported by investment from venture capitalists so
we’re doing really well in this region so back to our gushing standpipe let’s
dig into this a bit more what we actually doing well I want to first
celebrate the amazing work that’s done on this campus we recently were awarded
10-year accreditation by the Western I don’t know they’re full academics
Western schools colleges something but they are our Accreditation Board and
they gave us the full maximum ten years not seven not eight but ten and one
thing stood out to me on that report that we have they noticed a really
strong entrepreneurial spirit on campus now that’s thanks to people like Mike
Grimshaw I mentioned earlier Gary pulk and the torah’ incubator Dean Kim McNutt
at the College of extended and international education are really
providing these opportunities they’re looking into for example a blockchain
certificate that’ll be talked about a bit later our own Dean Dean Joseph when
clearly our president Thomas Parnes embodying this entrepreneurial spirit so
we’re really excited to be part of this broader network that’s providing
resources to the South Bay cities we also have within the South Bay cities
we’ve got incubators we’ve got cities running business business visitation
programs art districts Art Walks downtown areas Business Improvement
Districts we’ve got fantastic institutions like the South Bay
Workforce Investment Board who helped to fund studies that we’ve done and also
specifically on blockchain as well as telework the South Bay cities Council of
government fantastic organization as well as local chambers of commerce and
industry associations so we’re really fortunate to have that intellectual
infrastructure in place in our region and so the question that
we have is is all this effort working you know is that standpipe effective is
it is all that information helpful does all the effort pay off and so that’s
what we’ve tried to capture in this study using a quantitative analysis so
we collected data from all the cities in Southern California there’s 215 cities
not just about their economic development programs but also about
entrepreneurial activity in each of their cities we also then conducted
numerous phone calls with and interviews with IDI professionals in the region and
in cities to try and corroborate that evidence and actually it shows how good
our research team was that we when we when we cross-reference that data we got
a 99 percent correct hit rate on their data we found from web searches which is
pretty impressive so who are the winners well I don’t want to single out people
too much but Hermosa Beach and Torrance both provided the most resources in
terms of our economic development scores but as you can see across the South Bay
region we’ve got really strong and selection of cities that providing lots
of resources to our local businesses and that’s only to be M something to be held
up as a positive so what did we find from this study so we looked we ran
regression analyses I won’t go into them and I won’t buy them by you like I
bought my daughter so much but the findings were that we have we tends have
more economic development programs when there are larger cities no surprise and
higher levels of employment the presence of colleges so the fact that we have
institutions like this in the region is a really big advantage and it’s
something that government officials might look into in those regions that
don’t have as many educational resources but maybe more importantly well what do
these programs do well interestingly it’s not always what we’d expect so even
though we’re looking at entrepreneurial activity actually there tends to be more
economic development programs related with higher average firm size so
large businesses are being supported this is over the whole region of
Southern California and this is especially the case when direct
assistance through tax incentives are provided we curiously we also found
lower levels of female ownership in those cities with more economic
development programs that’s statistically significant results we’re
not sure exactly why but it’s interesting nonetheless and particularly
interesting because it kind of conflicts with this is data from the annual survey
of entrepreneurs across the whole us of which business is at making use of these
resources and clearly female owned businesses are taking more advantage of
these resources so there’s a bit of an interesting finding there and we’ll have
to dig deeper so thank you very much for your time it’s fantastic to see the room
full and such a fantastic energy here really appreciate your time thank you very very much Dr penguin
Prager and dr. Jose Martinez and special recognition to dr. preggers daughter as
well for fine-tuning that excellent presentation our next speaker ladies and
gentlemen is William you an economist at UCLA Anderson forecast which conducts
research on the regional state and national economies he’s a frequent
contributor to media coverage on the economy and this afternoon he’s going to
share with us what we can expect ahead here in the South Bay region please
welcome William you hello good afternoon everyone so today I’m very excited and
very honored to be here to present South Bay economic outlook I know many of you
are very concerned about recent a stock market decline so the slam mean the
recession is around the corner so answer is no okay so here let me show you our
anderson forecasts are predict that US economy remains robust this year 2018
and will slow down a little bit in 2019 so in this chart let me show you two
most important economic indicator the blue bars GDP quarter GDP growth and as
we can see on the far right we had this recent two quarters second quarter as we
all know is 4.2 percent very good and and so quarter right now we don’t have
an official number release year but a coding Atlanta Fed we had this estimate
and right now is three point six percent so it’s still very good all right and in
a child you can see the red line which is a year-over-year payroll job growth
for a u.s. so as you can see over the past year or two we stayed at a very
healthy level I will say one point than 1.8 percent all right so based on
our forecast our GDP growth this year will be a solid 3% maybe a little bit
more no so of the 3 percent and next year will be around 2 percent right so
let’s talk about California economy so in this chart
the rail line is like year-over-year US payroll Jack rose as I just show you and
the blue line is California’s payroll Jack rose all right so as we can see
over the past several years usually California economy outgrow the nation
and mostly still to tech boom in bay area and right now recent two-year we
can see there kind of gap has been our converge all right so here right now
let’s talk about South Bay so here I show you the total private sector jobs
in South Bay area so as you can see over the past several years we had these
grows steadily and in 2017 the annual growth is about 1.4 percent compared to
2016 and so in last year because let alone indeed how we have up to the zip
code level is 445 thousand jobs right and this is the annual average wage of a
worker in South Bay in blue bar and for Los Angeles total area in yellow bar so
basically we can see by and large there’s an upward sloping trend for a
wage is growing and South pace which is higher than Los Angeles okay so right
now let’s tie a little bit deeper to the sector okay here I show you the total
wage pay to the workers in sectors in South Bay so the data is for sir quarter
of 2017 so as we can see the largest sector in terms of a total wage and
you can say the total output economic output is proportion to the total wage
is 1.5 billion dollars for manufacturing sector so a year is about 6 billion
dollars so it’s a far larger less second-largest one which is a
professional scientific and technical sector point eight billion dollars so
it’s very good all right so right now let’s take a look at a total JA employee
in sectors in South Bay so again the first one number one is again
manufacturing sector about 67,000 jobs last year and the second largest ones
health care and social service about 50,000 jobs right so right now let’s
talk about job growth in the show run and in the long run
so in this char the blue bar represents the chakras from 2016 to 2017
and the yellow bar represents the annual growth compound gross from 2011 to 2017
so as we can see the health care sector is growing like crazy yeah so last year
is about like at 9% jab cross and this is nationwide nominal yeah so health
care in terms of job growth has been growing for for long time for the nation
in Los Angels in South Bay as well and but the problem later I will show you
another child probably is the average wage in this sector is not quite high
actually later I will show you is about like forty five thousand dollars a year
so the second sector are professional scientific and technical sector last
year’s 6% growth very good yeah and this sector had a very high wage so
it’s very good things for South Bay and finally I want to talk about
manufacturing we know face angle theta and show you before manufacturing is
larger in your employer largest job create
the most important sector are in South Bay but last year total jock roses only
employ five percent okay however don’t be sad because you know we had this lady
building the data we have I’ve come to this South Bay labor we only had up to
2017 but we have this whole county level data up to August 2018 so based on the
data we can see so we can say this DT of sex aerospace our job growth for the
whole Los Angeles County and we all know most of length is located in South Bay
Area is 5.2% so from August 2017 to ogres are to 20 2018 is 25.2% from 36
thousand to thirty eight thousand jobs so let’s a very very good news because
of the job pay very well and you might say wise lad why is that because you
know usually we know manufacturing job has been done especially in California
for a long time why we see this kind of very strong growth I believe the main
reason is because the new administration’s policy to expand our
federal defense budget so as long as lab policy doesn’t change we will see this
kind of a growth in this sector and transportation also very good 2.6
percent computer sector 2.6 percent or in manufacturing all right so here are
let me show you the average annual wage by sector so you you see this for happy
face they represent as you know high-paying sector like manufacturing
about above $90,000 a professional scientific technical way about 100
probably $110,000 and then information sector of course you know this kind of
tech pool information sector is doing very well
later on we will talk about that in our panel discussion and finance sector so
we all know this sector layer related to high human capital high skill yeah okay
so right now let me show you some kind of video demonstration so in this chart
I try to kick you a percentage of the manufacturing job over total payroll job
private sector job by Zico okay in South Bay Area so the blue collar represent
higher percentage okay sorry record represent higher percentage and
blue collar represent low percentage so the darker the color represent a higher
percentage of all red and the dark blue one represents a low one so we can see
basically let’s see here el segundo so last year is chakra see
2.3 percent right now total jaw is 64 thousand jobs so I believe El Segundo is
like a crown jewel in South Bay because in oleic produce a larger and hypen jaw
in manufacturing and other sectors where later I will show you a next one this is
a hospital okay so when we talk about these are enterpreneurship you know we
we see some kind of high activity of venture capital funding in this two area
so haram is all about spacex so everybody knows spacex right and because
this company these are flying company so it kind of bring up all the community so
can you see the number is kind of crazy last year three point four percent Jack
rose and if we look a long run from 2011 to 2017 every year is about five percent
Jack rose in his room okay so SpaceX you know one one of the
larger in a star company in the world totally transformed the city and a Libby
knows another city in goo usually we use usually be endo is kind of falling
behind but right now is changing as well last year job growth
point six percent and if we look at the 2011 to 2007 the area is about five
percent growth so we all know there’s a lot of exciting things going on in Engle
like a new transportation line to Airport and of course the new building
of stadium especially Lorenz doing very well right so so they will be very
exciting totally transforming of Lisa city okay so this is another sector
professional scientific and technical jobs sector so basically we can see the
kind of coastal are like a South the end of the city campaign Beach like scandal
yeah very high density of Lake and a high-paying job okay and this is
information sector similar yeah okay so here this is another density chart for
education so in this chart I calculate a percentage of Loretto in the Chico area
had a college degree or above graduate school degree so we can see mostly
coastal area had high human capital yeah so if we remember the previous
chart you can see some kind of high correlation between those kind of
high-paying industry which is located in this kind of high human capital in area
so I fully agree with our president just saying you know human people are the
most important asset for local economy and human with high human capital yeah
we’ll bring our shared prosperity to the local economy so hopefully you know over
time we will see more darker color blue color in this area in Los Angeles
okay conclusion all right so South Bay economy will continue to grow in 2018
and 2019 and aerospace industry is a resilient driver to our local economy
manufacturing professional scientific and technical and information sectors
provide a high paying job located in regions with high
human capital so it’s very good and finally has wrong and ingu are growing
fast and transforming because of SpaceX and our new building of NFL stadium okay
so it’s my presentation thank you thank you very much William you from the UCLA
Anderson forecast for that upbeat look at what’s happening here in the South
Bay and now ladies and gentlemen it’s time to introduce this afternoon’s
speaker panel and each speaker will give a presentation and then we’ll convene on
the stage for a panel discussion our first presentation now will be from Bri
new in the head of town partnerships for Facebook in her role at Facebook she
leads a team that works with celebrities actors creators and public figures to
utilize Facebook and Instagram in impactful ways hopefully we’ll get a lot
of likes on this one now she also works closely with the product development
teams to develop best-in-class product experiences on Facebook for media and
talent partners and was on the original team that developed and launched
Facebook live which is a terrific feature I must say renewing is a magna
cum laude graduate of guess where yup Cal State University Dominguez Hills
where she earned a BS in business administration finance now some of us
graduate cum laude summa cum laude magna cum laude others graduate thank the
laude I think that was my case but currently ladies and gentlemen she also
serves on the board of the College of Business Administration and public
policy here at Dominguez Hills please welcome familiar name here on the campus
renewing hi I really only do these to grow my
Instagram followers so he’s right but no let’s talk about the future hold on let
me just pull up my notes here I’m digital here we’re gonna talk about
the future of media I’m gonna jump right into it if okay right click okay when I
when I think about the future of media I really think about it in two different
two different sectors and that’s really the content and the distribution and
actually when you think of the history of every content business going all the
way back it really plays out in two different phases in these two different
channels so phase one is the distribution of everything I call it
laying the pipes right the infrastructure of things as technology
goes what what is the delivery mechanism for content and then phase two is once
all that infrastructure is in place and the pipes are laid what are the creative
people doing to reimagine what content could be like within that infrastructure
so a quick example would be you know back in the olden days we had TVs with
antennas and a lot TV Fuzzy’s all of that with literal cable being laid and
plugged into we all got access to HD video HD TV and the content producers
reexamined how to produce sports how to produce movies special effects that
completely read that completely changed how they produce and we receive content
so thinking about today and what the future might be let’s focus on
distribution distribution first is really been a lot of everything having
to do with the development of mobile phones that is our major platform right
now and our access to connectivity and Internet here’s a map of our data
connectivity now all around the world 5g is coming to 5g is completely going to
change lives in the next couple of years just
to give you an example three are the jumped just to remind you I mean is the
jump from 3G to 4G is what allowed us to watch video on our phones and create
video on our phone so the jump from 4G to 5g is gonna be just as transformative
and actually 78 percent of the world’s mobile data traffic will be video by
2021 and you’re already seeing this play out in our in the way we view content
now if there were 34 million cord Nevers as of 2017 meaning they never had cable
TV always internet always streaming so this is the present so we see this trend
of connectivity play out on Facebook so it started with text right that’s where
content producers did as the connectivity got stronger I was about 2
G 3G it turned into photos now we’re in videos we can all stream our videos all
day so what’s the future it’s virtual reality an augmented reality this is the
media platform of the future and in fact it’s built into Facebook’s 10-year
product roadmap this is the media platform of the future video is our
short term cool so you can see this play out and in fact sorry that’s a video but in fact 55
million headsets will be will be played out will be in households by 2022 and so
I’m gonna show you a quick video of our current headset right now oculus quest
is an all-in-one VR system it’s just you and your hands completely free and
immersed with six degrees of freedom
state-of-the-art optics and built-in audio you can forget about wires PCs and
phones an oculus quest is ready to play when you are the headset relies on four
ultra wide-angle sensors to map your environment as you navigate through it
and with oculus insight tracking every move you make in the real world
translates right into the game you airplane
combine that with oculus touch controllers and the game is at your
fingertips so when you grab swing or cast a spell you’ll feel the power of
every gesture the next level of VR gaming is finally here introducing
oculus quest so this is super exciting and this is what’s available today and
you see it all revolves around gaming and that kind of functionality because
gaming gives us the creativity to explore a lot of different things right
now but think about 10 years from now those headsets aren’t going to be clunky
anymore they’ll go shrink shrink shrink shrink shrink down and the image will
just get crisper more true to life more real just as our phones got smaller more
powerful like it’s like getting bigger now but um you know so given that if VR
is our platform for the future what does that mean for content reimagining
content in a VR world and an immersive world is really interesting and they
we’re seeing a lot of things play out right now on the platform in these early
versions of oculus and gaming and you can start to extrapolate like what
that’s gonna mean for content producers in the future first this is there’s been
more content buyers than ever today if now is the time to become a video
producer producer actually there used to be only four networks four studios now
there’s a whole network of digital publishers media publisher streaming
everything now is the time to be a Content producer
Facebook’s not even on this list but we’re also a buyer
so this is how content will change in these three fundamental ways content
will be highly personalized it will play out in real time and be extremely
interactive and immersive again we’re already seeing these behaviors now but
it can’t you can’t imagine the full effect of it without the hardware and
the infrastructure catching up to so we can start to extrapolate what that might
look like based on what we’re seeing right now and I’ll go into each one of
these so first personal content would personalize content what do I mean the
world series is going on right now some of those commentators are not my cup of
tea what if Kevin Hart was commentating that
for me and I got and they just knew me right away I’m like that’s what I wanted
but my mom wanted my mom is here in the audience my mom wanted my mom wanted a
different comedian or whatever it would be personalized to you think about your
favorite rom-com I always want the couple to get together at the end but my
friend might want the more dramatic ending you’ll actually be able to
experience that in the content producers will think about different scripts and
different personalized things that way you can hack this together now but
imagine if the sets and the VR sets and your TV actually just knows you right
away and delivers exactly what you want when you want playing out in real time
we’re seeing a lot of this and this is really interesting if any of you are
content in the creative business there you know love to talk to you about this
so when you see it a lot really in the gaming sector gaming and eSports is
sucked to take over live sports in the next five or ten years if you didn’t
know that huge thing I don’t laugh at it as just why are you watching people play
video games because what’s actually happening is viewers are watching
players play out stories in real time that’s what’s happening over and over
and over it is a different story same game different story every time and when
you extrapolate that behavior and the amount of viewers that are experiencing
it that way can you imagine watching your favorite
drama or your favorite or let’s Halloween right now horror movie play
out in real it’s gonna be incredible and again
you’re already seeing that consumer behavior with people watching gaming
there’s we’re also seeing it in a few shows so Scott Austin is a show is a
Facebook original show that we’ve produced and it’s a teen drama and in it
you can actually follow the characters on Instagram you can see their updates
all through the week you see their photos from school you see them
commenting on each other through the week and you see this drama play out in
real time following with the one the episode every week at the end of the at
the end of the week of what happens so you’re actually following the characters
all throughout the week that’s already happening on Facebook you start to
imagine what that looks like when your device is very interactive with you the
more creative people than me will get really had a lot of fun with that and
then finally interactive and immersive so this is one you can start to
experience in virtual reality this really means you are an active
participant in the content Jurassic world actually filmed the movie the swag
the last Jurassic world they filmed it just like a regular movie and then they
put 360 cameras on every camera as well and and filmed all this bonus content
they ended up having nowhere to put the content because we’re not caught up on
the infrastructure level so just upload it one at a time but in the future what
could happen is you could watch the movie in virtual reality be in there and
you get to choose that I want to watch this scene from T Rex’s head how to
stand right here and watch the t-rex eat Chris Pratt like from here you know and
you have that choice oh I didn’t see the movie is that did that happen but you
could you’ll have the choice to like interact in it and later what’s really
interesting is actors reacting to you what if you were in the movie what if
you actually got to move dinosaurs around and Chris Pratt actually reacted
to you that is gonna happen and that will happen in the next five or ten
years so real quick I this all talk about virtual reality and you get
play with it it reminds me of there’s an old story of the first movie that was
ever shown that that train story so it’s like 1895 or something and they’re
showing a train in a theatre and the trains coming at the screen and
everybody so convinced the trains going to leap off the screen and to them that
they run out of the theater and now we laugh at that like how ridiculous that’s
crazy and then I want to show you this video that I took on Saturday of my
niece playing with the oculus go I look at this and I laugh cuz I’m like this is
our train moment cuz when we look back at this at the arc of the history of
media we’re gonna think oh what a natural progression just from newspapers
to TV newspapers to radio to TV but right now we’re still like oh my god I
can’t believe I’m experienced in virtual reality and I showed this particular one
because we have goes oculus goes at the reception afterwards so everybody can
have this exact train moment as well thank you right thank you very very much and what
helped you with your Instagram followers are you what the Bree or let’s see
there’s breezy wheezy we’ll get that information from you later so we can
take care of that all right terrific ladies and gentlemen now let’s bring to
the stage our next speaker Heidi peace the co-founder of La blockchain lab a
very hot topic right now blockchain she’s the CEO and co-founder of proof of
art and home sidekick she focuses on helping develop the Southern California
blockchain ecosystem as well as promoting and funding artists using
blockchain and providing peer-to-peer mortgage lending opportunities using
blockchain in addition she’s a guest lecturer at UCLA as well as USC and
she’s with us here today she’ll provide insight on the purpose of black chain
and perspectives on the Southern California blockchain ecosystem ladies
and gentlemen please welcome Heidi peace hello thank you so much for having me
and I just wanted to echo the president parson Parnes comments about respect for
humanity I didn’t really put this into my speech today because I only have 10
minutes to explain what blockchain is and make you all blockchain experts but
really blockchain is as much a social movement if not more a social movement
than it is a technological movement and it really is about respecting our fellow
humans around the world and how do we get more people how do we democratize
accessibility to knowledge and power like we’ve never seen before so I really
commend the school here in this recognition for Humanity and thank you
so much for having me I also wanted to quickly say how many of you are
blockchain kind of experts or you could explain what blockchain is okay all
right that’s what I thought originally I wasn’t really even going to
talk about the technology but I figured probably most of you will want to hear
about it I’m not a technologist I didn’t even have a Facebook account last year
this is how quickly this space has propelled me into technology and now
I’ve speaker around the world I just came back from speaking at the United
Nations about what blockchain is but please don’t deem me on this card
because it is a little difficult to get what blockchain is in ten minutes I’m
I’m certain however so just really quickly why am I here la blockchain lab
we are a partnership of government business and academia focused on
building a sustainable blockchain ecosystem in Southern California so I’m
very excited to share with you the perspective of the businesses academia
and governments that I’ve experienced here in Southern California around
blockchain and from actually around the world
so maybe most of you have heard about blockchain how many of you have heard
about Bitcoin okay right all right is my clicker all right so there is of course
everybody’s heard about Bitcoin last year in 2017 the market cap the
cryptocurrency market cap grew from less than 20 billion to nearly 800 billion
the average cryptocurrency price rate changed for the most popular
cryptocurrencies changed to over 14,000 percent what took basis Zuckerberg and
Gates years to become billionaires in the blockchain crypto world some
entrepreneurs it only took them less than a year less than six months and
there’s even one where it took him less than a month and startups are raising
billions of dollars through a new type of crowd funding mechanism some raising
hundreds of millions of dollars within 24 hours and not even having a product
to show actually the largest fund was raised the largest fund was four billion
dollars and it came from a company here in Southern California
out of Silicon Valley we actually call that part of the Silicon Valley
blockchain beach not to mention publicly traded companies having nothing to do
with this technology their value of their stock increased
just by merely putting the name blockchain into the name of their
company the most infamous of them being the Long Island blockchain iced tea
company whose value of stock increased by 300% and they’re under SEC
investigation now by the way unfortunately this year we also saw a
lot of people lose their money due to cryptocurrency the valuation of price
volatility there were a lot of scams and hacking of sites where people keep their
cryptocurrencies so let’s talk a little bit about nomenclature when we hear
blockchain a lot of us immediately think bitcoin or these ICS but I just wanted
to make clear that there are actually four different areas within blockchain
first of all what we’ve mostly been hearing about in the news are these
things called crypto currencies such as Bitcoin ether and litecoin theoretically
these digital currencies may one day be used like any other currency replacing
the need for your credit card PayPal or venmo and because they are digital they
have their own unique identifiers that can be used to track every transaction
associated with that particular cryptocurrency similar to your credit
card today but today they are mostly used as a speculative vehicle a storage
of value more like much like buying stock or any other type of investment
asset then we have an ICO or an initial coin offering it’s a new type of
fundraising event which generally or which originally allowed for both
accredited and non-accredited investors to purchase coins or tokens of a
start-up at a discounted rate with the hope that as the company grows and its
network effect grows so does the value of the coin however many of these token
holders quickly liquidated their tokens on a secondary market where they made a
hundred to a thousand or more greater returns so actually currently the SEC is
pretty much declaring that these ICO tokens are securities and as such
a lot of regulatory uncertainty not to mention again unfortunately there are a
lot of scams so I think cryptocurrencies and ICS are a fascinating subject and I
believe that blockchain the underlying technology however has greater financial
and social impact in the longer term and actually you might ask who’s even
building on blockchain today well last year in the United States alone
companies were investing at about 800 million dollars on building and
improving their services using blockchain this year that number is
estimated to be 2 billion dollars so we are seeing that there is significant
growth in this space so let’s get to the fun stuff the mechanics again bear in
mind I am NOT an engineer so I’m gonna do my best to keep this interesting
while still at the same time explaining this very difficult technological
advancement so we all know what a ledger is right transactions are time-stamped
and recorded on a ledger which is generally auditable and irreversible and
it’s typically maintained by some centralized source usually this could be
a large institution and this centralized source validates and records each of our
transactions on their ledger which in the digital world if you think about it
all of our transactions are actually our data points unfortunately in this
digital world these centralized institutions are often subject to being
hacked making mistakes or actually even misusing our own data
so with blockchain transactions on the ledger are first made anonymous and then
the ledger is decentralized and distributed to hundreds of thousands of
computer nodes around the world we call these computer nodes miners these miners
are members of a peer-to-peer network which can both be public or private and
now the difference is the network of miners is responsible for validating and
recording these transactions rather than a centralized source so then afterwards
every single transaction has to be validated by using crypto
Murphy it is a form of a secure computer language using mathematical puzzles
which are nearly impossible to to solve and require a lot of computer processing
power and is basically very costly but once a transaction is validated by one
minor and that computational puzzle is solved then just like algebra once
you’ve figured the calculation it’s easy to go back and double-check the work
there has to be a majority of miners or a consensus of these miners within the
network they go back and they double-check the math and once everybody
agrees then they finally confirm and validate that transaction these miners
then for all of the costs that they’ve invested they get rewarded with a
cryptocurrency so that’s why you can see there is this circular economy then that
approved transaction is bundled together into a block and placed on a ledger and
then that block is chained to a prior block of transactions so the ledger and
all of our data that is contained on the ledger is now more secure than it has
ever been and hack resistant because one they use multiple they may use the
multiple uses of cryptography throughout – it cannot be lost or manipulated by
one entity and three any changes are just simply cost prohibitive because any
changes disrupt the entire chain of all of the subsequent transactions and then
those all need to be rivera fide so I’ll give you another visualization really
quickly a transaction is put out into the system and then the network of
miners grabs that transaction and they rush off whoever can be the fastest to
solve that algorithm solves it the rest of the miners are made aware this one
miner solved it all the other miners looking or at least majority of miners
come by and they say yes your math works out it’s been approved let’s put that
all onto the block the block then is added onto the chain of prior blocks and
then the transaction is complete and the miner is given a Bitcoin or light coin
or either so that’s kind of the complexity of what’s what how why
blockchain is so secure all right let’s get to the more
interesting stuff so why is blockchain even who cares right I want to start
with a current problem we know that the internet was amazing because it could
digitally transfer information without having to physically do this right but
the problem with the Internet is it was never developed with security in mind so
if you guys don’t know me and I were to email you a dollar without a middleman
like a bank or PayPal Irvine well how would you really trust that what I
emailed you was a dollar you can’t you cannot trust it without the use of a
middleman I love this middle man like a bank validates that I’m Heidi
I really have a dollar and I’m really sending that dollar over right so they
serve a purpose these middlemen basically ensure that we can trust any
digital transaction but the problem was in this digital universe now we’ve
needed these middlemen and these middlemen have become these large
institutions and they’re become layers and layers of middlemen and these
middlemen themselves then are adding friction costs and time to transactions
and they’re also like I mentioned before subject to being hacked making mistakes
are actually even misusing our data so for example when I use Amazon and I
think we’ve all used Amazon I love Amazon Amazon so simple I get on online
it says yes Heidi is Heidi and yeah she’s sending this dollar to this vendor
and it really is a dollar she didn’t make it up and yes the dollar actually
received it and we’re gonna and so everything’s good to go the product can
be shipped and they track all this information on the Amazon ledger but
every time a transaction occurs as I mentioned on this ledger there are
multiple multiple middlemen at the very least there’s my bank my credit card
processing company that vendors bank their credit card processing Amazon and
so forth and again they all add layers and layers of friction and what we’re
quickly realizing again like I said the data is not necessarily secure so
blockchains ledger solution protects our date data and pride
trust without the need of a large middlemen again what does that really
mean so if you think about it the layers of middlemen if we can reduce the layers
of middlemen we are actually now able to reduce the amount of fees and
transacting digitally becomes affordable for all for the first time we see the
world’s two billion unbanked and underbanked have the ability to
digitally store and transfer money instead of it costing $35 for me to wire
$100 blockchain reduces this cost to pennies and because blockchains ledger
records a products supply chain from its raw materials to its placement on a
shelf we will have much more information about that product where it came from
and how it was made it will help ensure that your diamond ring is actually not a
Blood Diamond or that the chocolate bar you’re eating was not was actually did
not use child labor blockchain in essence will help reduce barriers and
hopefully improve lives for all so with all of the potential that blockchain has
there are some significant hurdles right the the first of all this is a nascent
technology and blockchain protocols are limited by scalability and
interoperability I know I have my own startup and it is very difficult to find
a protocol that works and many compare the blockchain ecosystem today with what
the internet was of the early 1990s however there is a significant
trajectory growth because now we have all of the plumbing also there’s a lot
of question around regulation there have been no precedents and set and for
supply chain to really be effective we need a more robust system for digitizing
our physical assets as well businesses and governments are not accustomed to
being transparent and transparency is an underlying premise in blockchain and
perhaps the biggest hurdle of all is the lack of talent including software
engineers and business professionals and I want to encourage every student
that’s in this room please look into blockchain because we need you and this
is actually where I think Southern California has tremendous opportunity to
become a blockchain innovation hub with the help of our academic institutions we
can develop the future innovators coders and leaders in blockchain we actually
graduate more engineers than any other part of the country but unfortunately
they leave to other tech hubs however with blockchain we have
potential to develop and keep our talent here because in the blockchain ecosystem
today Northern California is primarily focused on blockchain protocols New York
is primarily focused on financial solutions but for all of the rest all of
the other industries such as transportation and port logistics
aerospace healthcare cannabis Southern California has more industry diversity
than any other part of the country and as such we have more opportunity for
blockchain innovation which means more jobs and a stronger economy and this is
actually what I think is the most important for this blockchain experiment
to work we need to have all types of people involved there’s this thing
called algorithmic risk and algorithmic bias which some of you have may be
familiar with and it actually and he impedes us from progressing and as such
we need all types of people and our greatest strength is our diversity in
conclusion I wanted to say that by the year 2027 the World Economic Forum
predicts that 10% of the global GDP will be on blockchain and I highly highly
encourage all of you if you want to be a part of that new blockchain ecosystem if
you want to help Southern California become this new blockchain innovation
hub please learn more about blockchain blockchain is the future and as this
seminar so says it is actually here thank you so much ladies and gentlemen I think we’ll all
agree that presentation was off the chain I mean on the chain as the case
may be in fact we’re gonna take out your number two pencils now we’re gonna have
a test on it as a matter of fact can we hear it again because we want to make
sure we understand it okay we’re gonna get into a bit more very very shortly
our next speaker is a plumber we’ll delve into it a little bit further
actually no but we will get into a little bit more in very very hot topic
right now thank you very much Heidi for that insightful blockchain presentation
here at Cal State University Dominguez Hills the College of extended and
international education is planning to offer a three-day blockchain
architecture program for late winter 2019 in addition a faculty-led two to
three-hour block chain that symposium is now being developed in collaboration
with the South Bay Workforce Investment Board that’ll be coming up in late
January early February 20 19 so stay tuned for more information about that
ladies and gentlemen our next presenter is Sean sundar he’s with edge soft as
co-founder and CEO of the company edge soft Sean and his team collaborate with
local California cities to help them develop smart cities smart cities sean
is also a member of the millennium momentum foundation board and is an
advisor to the management school here at Dominguez Hills Sean will talk about how
cities can enhance the quality and performance of their services and
transition into smart cities please welcome Sean sundar hi everyone mmm can you hear me okay
great well we just heard about augmented
reality from Facebook and blockchain now I’m gonna talk about smart cities you
know you are wondering how where is the connection right so some cities in the
world are beginning to talk about augmented reality they’re using it
they’re experimenting it I’ll talk about that and also blockchain I think Dubai
said in few years they want to do all the transaction using blockchain right
yeah so how many of you know what smart city is you do how many of you don’t
know it’s my personal opinion is every city can be a smart city he doesn’t have
to be a 902 or now right it could be any city some some really poor cities in
India or becoming smart city because the government declared that they’re going
to be smart cities so I’ll talk about whatever little I know about smart city
so we are based in my companies based in Manhattan Beach South Bay and but we are
also consultant to the government of india for creating project reports for
smart cities and so one of the cities we worked with is agra you know how many
people know where agra is okay that’s what Taj Mahal is how many people know
Taj Mahal right so and one of the things I told my team so are we gonna make Taj
Mahal a smart Taj Mahal now you know so when you walk in so it’s gonna talk to
you so so I like I said what does smart city
so I’m gonna talk about few things instead of talking about what a smart
city because a very very difficult definition IBM will say something else
Cisco will say something else Google will say something Facebook will talk
about something else and but instead of talking about what a smart city I want
to talk about why smart city given the smartphone technology revolution now we
are going into Internet of Things and augmented reality new generation we saw
Bri talk about where we are going ten years from now that’s a new generation
every service we wanted now and now right and that’s what smart city is if
we can provide that kind of service to the citizens that’s what smart city is
that’s why we need smart city so before honda comes up talk about autonomous
vehicles is it a smart car 9,600 bla bla buy a batteries in a car right so there
are a lot of misconception about smart smart city smart cars best way to keep
the street clean right I was on a panel with the BI and we were talking about
keeping cities clean right and one of the things I got involved in is that
city of the bi has 100 and nothing hundred and thirty countries
representing hundred and thirty countries and nobody think that they
live and they are part of the buy so when you have that enforcement cannot
the one who cannot be the only thing which can keep the cleanliness going
Singapore is a great example you walk in Singapore it’s clean but you go behind
the scene and to restaurant it’s the the dirtiest place on earth right because
that’s enforcement cannot keep it right so one of the things I want to talk
about is culture which is what I just alluded to in Dubai so urban
technologies talked about the inconvenient truth about smart cities
right the most important thing here is the third point it has to be both
top-down and bottom-up right meaning Compton can be as I’m gonna blame some
cities you know Compton or Watts can be a smart city so smelly Hills or San
Fernando it all depends on really improving the service there is no
standard definition of if you follow ten of these you become smart City right and the other thing I want to talk about is
that I I love this thing when somebody said before you bring down the fences
you must understand why the fence was put up in the first place right
so people walk in like cities I mean companies like big companies there’s oh
you gotta have fiber through every home right we all hear about different cities
talking about fiber to every home now we are talking about 5g right so where do
you draw the line and people cities spend millions and millions of dollars
because some mayor I mean there are some mayors in their room they heard
something in some conference you say okay let’s do this
right but the city the citizens may not be ready for it so it is very important
to really understand what a city can handle so the balance is important what
I mean by that is that if a city you have to look at the financial maturity
of the city service maturity technology maturity because if technology is not
there you can’t really do i OT models right you can’t really do a lot of
things and most important in the culture the culture also has to play a role the
city may not be ready for some really smart you know
technology for that city so this is my own personal experience I was asked a
tour a city in India and they have these garbage bins which are which are loaded
with IOT s they have their varieties and those garbage bins so if it fills up 3/4
it’ll notify somebody right so they’re taking me around this is true story okay
have you guys part of garbage mafia it exists in countries like that
so in that city where they’ve spent millions of dollars millions of dollars
you go to four or five places like that is a smart bin and the garbage mafia is
act one of the largest slums in India right I don’t want to name the city so
all the garbage is taken to that place people are not using these garbage the
smart garbage bins right but some technology company sold it so that’s why
I want to talk about culture culture is very important is your city ready for
the technology right so you could smart city technology can be used to fix
potholes in some of our cities here right I was a guest speaker a couple of
days ago and Cal State Dominguez Hills and the professor said there are a lot
of potholes in our campus we’ve got to do a smart pothole fixing right so but
but that’s real that’s real okay if you don’t fix it what is autonomous vehicle
gonna do if you have a lot of potholes right the other thing is cleanliness
which I talked about right you have that’s what people do that’s cleanliness
is different for different cultures right if you are if you are from Europe
the cleanliness means something else if you’re if you’re from Asia the
cleanliness meets something else if I from India the cleanliness means
something else so it’s very important to understand the culture before we start
you know pushing technology on people this is the street in the same city
which I talked about so what are the things happening in the
what is exciting is that if you look at I’m talking about a global trends 75% of
all population which is more than 5 billion it’s growing is going to be in
urban areas living in you know urban areas people are moving moving all over
China India so many things happening even here so that’s what is going on
modernization is important technology is coming through in terms of IOT augmented
reality all these are very very important to a city and one of the
things modernization we are talking about is in big cities they have
high-rise buildings the inspectors won’t even go there to do the inspection
somebody talked about permitting process it takes a long time to get approval and
cities like the by our doing augmented reality with drones
you can inspector can sit in his office and do the inspection with augmented
reality and drones that’s the future that’s here now right so I I don’t want
to bore you with a lot of these technical stuff but where we are going
is number four right that’s what true smart city is predictive modeling all of
a sudden in this event is happening okay so what if this event attracted 50
thousand people how was the university is going to handle it right the bar is
going to have I think 20 million people coming in Tony Tony
and the cities the population is 2.5 million so they are doing all these
predictive modeling what’s going to happen especially for food trash big
deal right so that’s what transformation is we have we have gone through the
first three in in America we have gone through the first three a lot of cities
okay number four is what is very important so personally I have a problem
with this term smart city every city is a smart city I mean if if I’m a smart
city or the neighboring cities are dumb city right so somebody’s going to give
you a graduation you’re a smart city right everyone can
be a smart city and since South Bay there are about 20 cities I think in
South Bay and all of them are doing something all of them so to say that no
Glen you know Beverly Hills won the Google City of the Year
and what about Inglewood right so our my company’s objective is to make sure
every city understanding their needs and making them the Smart City and that’s my
presentation thank you Shawn thank you very much for that very
smart presentation and our final presentation now society’s mobility
needs are constantly evolving with a rapidly changing pace of personal
mobility options and Technology extensive research has taken place to
examine the future of mobility and here to talk about this and other impacts on
mobility Pete went Senior Planner advanced product planning and the power
sports division aziz u k– Moakley the principal research analyst and matt
stall senior engineer and new business advisor at Honda R&D America’s
incorporated please welcome Pete welcome Aziz and welcome Matt good afternoon everybody
mm-hmm my name is Pete went a little bit of background on me I’m a South Bay
native I went to South Torrance high school and I still live in Redondo Beach
so glad to be here so things are changing very rapidly as everybody’s
alluded to and the mobility space is really no different and so we want to
talk today about is the future of mobility so many of you may not know
this but there actually was a mr. Honda he started the company back in the late
40s putting engines onto bicycles and he’s gone now about he has a philosophy
that he’s left behind and he has a lot of great quotes and we thought this
quote was really fitting for this event we only have one future and it will be
made of our dreams if we have the courage to challenge Convention and I
thought that was a great theme for today because if you’re not challenging
convention these days you’re probably going to get left behind there’s gonna
be some startup or some really small fast moving company or some new
technology that’s come gonna come in and take over so you really have to keep
that in mind so a little bit of background about Honda in the u.s. Honda
US has about 30,000 employees we have over 10,000 dealerships between autos
power sports power equipment etc and Honda was actually one of the first
companies to open a manufacturing plant the first company to open a
manufacturing plant in the US and first international company and today we have
12 manufacturing plants one thing that’s really telling about Honda though is
that in all the history of Honda the company has never had a negative profit
year never lost money which is pretty impressive in any industry but an
industry like the auto industry that’s super cyclical it’s really impressive so
how did Honda end up in the South Bay really quickly so mr. Honda after about
ten years selling motorcycles successfully in Japan came over to the
u.s. in the late 50s they opened a office in a small former photo studio on
Pico Boulevard and within just a few years with his eight staff they were
selling 40,000 motorcycles a year and they needed a bigger facility so in the
early 60s they moved to Gardena and then a few years after that they said well
why don’t we start bringing some of the cars over that we’re selling in Japan
and as you well know that went very successfully as well and in 1990 Honda
built its own kind of custom-designed campus in Torrance for its new
headquarters and we’re still there today there are about 2,200 associates about
300 of which are with R&D group that we’re with and just a quick note that we
sold 1.6 million cars last year and over 180 thousand motorcycles and ATVs so why Los Angeles why why be here
well we from when we think of it as kind of the center of the universe but of
course the diversity which has already talked about you have this amazing
unmatched diversity here that gives you all these great insights and ideas it’s
kind of the center of trends fashion Hollywood architecture even we have this
great culture of innovation here through our aerospace history as well as this
has been kind of the hub of car culture since the 50s in Southern California
what I think is most interesting though is what I call this kind of California
mindset if you think about the people that came to California in the last 50
years or even a hundred and fifty year ago years ago in a covered wagon or from
another country these are the risk takers in the whole country these are
the risk takers in the world that left everything behind they didn’t stay with
friends and family back on the East Coast or the Midwest or whatever they
came out to California by themselves whether it was on a covered wagon or
just in the last few years and so it’s no coincidence that there’s so much
innovation happening out here in California and Los Angeles in the South
Bay because these people are the direct descendants of these really risk takers
an innovative mindset or they were raised by these people next thing is we
have access so South Bay is kind of a small-town feel but we have access to
this big Los Angeles just down the road and all
of its amazing resources and that’s really hard to beat in a lot of places
and then finally all of that is balanced out with with this kind of you know
laid-back beach lifestyle that we’ve all known to love so when you’re driving
around on the road or yes even in the dirt you’ll see a lot of vehicles you’ll
see Hondas and Acuras and many of these vehicles that you see on the road from
Honda and Acura were conceived and planned and marketed and sold through
our office just down the street in Torrance so keep that in mind next time
you see some Honda and Acura vehicles so of course cars and motorcycles are our
core business and we’re going to continue to make those for the near
future but the world is changing and we’re constantly looking for new ways to
evolve mobility and to also continue to bring joy to the customer we’re gonna
keep talking about that right now Thank You Pete good afternoon everybody my
name is as easily as Pete mentioned the three of us are from advanced product
planning groups in the Torrence office I’m on the automotive side but I think
the important part point that Pete just made is that he ended off with the joy
for the customer or the consumer that’s really what we do in R&D it’s not just
design and develop and plan for technology first of all we have to
understand the consumer and it starts with the consumer we need to go beyond
just simply demographics how many they are what potential in terms of sales
penetration so far for our technology to be successful and to be adopted we first
have to understand the values and from the values of the consumers we can then
to understand we can begin to understand the wants and needs we have to do this
before we can even consider what kind of technology what kind of investments
we’re going to make down the road this is an example the Super Cub it was
introduced in the late fifties and since then it’s become the
best-selling personal transportation vehicle of all time surpassing the
Beatle Model T civic Corolla you name it it had a very clever marketing campaign
it had technology that was very unique for this class of vehicle but what
really made it successful and continue to do so is the development team first
started to with not what can we do in the form of technology but who’s that
buyer what’s that untapped market need and what are those latent needs and
wants and from that the vehicle was the Super Cub was born sorry wrong direction
I mentioned again the consumers right now we’re in the midst of a sea change
of generational leadership we’ve all heard of the Millennials of course also
known as Gen Y but it’s very important it goes beyond just simple demographics
as I said they will be the society leaders in for the next 10 20 30 years
so for us as a mobility company and really more or less every other mobility
company we first need to understand excuse me we first need to understand
what are those values of these consumers how are they different from Generation X
from the boomers and other generations what are those values that they’re going
to carry throughout their lives and what and of course transfer that or
translated that into needs and wants as dr. Martinez said this earlier
traffic is getting worse it’s not going to get better the
infrastructure simply can’t keep up and this is going to have a dramatic impact
on this coming generation as they’re as they become economically prominent
they’re going to be the ones that begin to influence society government business
and so forth so we need to understand what is it they’re going to do in
relationship to an ever increasing and worsening mobility
you’re out there and it’s from this we can then determine what we need to do as
far as develop new mobility solutions for them for example just a few years
ago the vehicle was essentially the center of the daily life you needed to
go to work entertainment run errands health issues
whatever today you can do all those without the use of a car and if you
still need mobility you can call it up but it’s not just simply that the
technology was created that allowed this to do it the consumer adapted to it and
Millennials being digital natives that is basically growing up with smart
phones in their hands they are the ones that are readily adopting and causing
the disruption that we’re seeing in the mobility industry these name brand named
bring me on brand names excuse me are probably very familiar to you there
they’re causing disruption and basically ank’s for the OEM industries but the
OEMs like Honda have to adopt and embrace this new technology as well the
typical way of doing business is going to change because the new consumers are
augmenting their mobility needs or in some cases replacing traditional vehicle
ownership with these new types of mobility everything from a hailing guber
down to the e bikes that you see lining the streets and sidewalks so I’m going
to now turn it over to Matt who will then explain what those critical
technologies are that are going to really shape the future of mobility Thank You Aziz yeah so we’ve talked
about generational shift urbanization and even the advent of smartphone
technology that’s causing this disruption of mobility so this these new
technologies are being incorporated and considered in new research methods that
were taking on with in Honda so for those key technologies
some of you are probably very familiar with of course electric vehicles
autonomous vehicles or even connectivity and even some of the newer forms of
transportation like the shared economy like you know the e bikes and also the
East scooters so the key point here is that these technologies are being
applied for a reason although they’re very complex in terms of how do you get
those integrated so they work and have no failure for example autonomous
technology is in various levels of maturation the final and end goal is for
the vehicle to be driven by itself or self driven and basically no steering
well that’ll be kind of a strange situation for a lot of us that grew up
around cars but that could happen in a number of years ahead and of course
connectivity is also very important so when you think about it’s not just how
your smartphone connects to the vehicle but in the future how are the vehicles
going to communicate with each other or if a vehicle is going down a road and
there’s a emergency vehicle up ahead perhaps there will be some signal sent
to the driver alerting them that there’s a hazard up ahead
or to pull over and then finally for the safety of pedestrians living in this car
centric world we all know that as a pedestrian you have to be very careful
before you step off the curb and a lot of us see this you know walking down the
street in a lot of times and we’re all guilty of ourselves of spending time on
our phone and not really thinking about what’s ahead of us so this is very
important of course battery electric vehicles are also a key player in
cutting carbon emissions especially when you compare that to a conventional
powered car a 50% cut in emissions over a year and then finally the membership
based services like the the birds scooters and some of these shared bikes
that are now being integrated into society with very difficult
waise I’m sure a lot of these cities and the planners are trying to figure out
how do you accommodate these because there’s obviously demand but how do they
fit in so that are a seamless part of society so these developments are very
complex but it’s also a very good challenge and a good opportunity for us
as we develop the future of mobility so when we think about traditional research
we often will go into the field we’ll talk to consumers has anybody been in a
focus group for a car like if you bought a new car and somebody invited to you
and they wanted to talk to you for an hour
understand how you how much satisfaction you had with a car correct that’s still
going to happen however if there’s going to be a change in terms of how we go
about our research it’s no longer just about the end user the consumer that’s
going to buy the car or the motorcycle and own it for a number of years and
then replace it it’s going to be about not only the private user but also from
a public standpoint whether it’s a city and also thinking about your smart
devices how those integrate seamlessly and the infrastructure as we talked
about earlier so the technology is much more complex and it’s going to require a
lot more involvement among other players in the market rather than just a OAM car
maker to sell a product so with that we sell cars motorcycles power equipment
but we’re also looking at what is it what are the new business opportunities
that we could be looking at beyond our conventional vehicles and services and
experiences that Honda can provide much like other if you want to think about
technology companies that are selling you a service and not necessarily just a
product so we you probably heard there’s downstairs there’s a prototype on
display is called the autonomous workhorse and this is actually Pete’s
baby he’s been working on this for the last two three years takes a lot of work
to work through a lot of the development but this is a device that’s very
unconventional for Honda but it has some new opportunities to take something that
we already make like an all-terrain vehicle apply some AI technology to it
and then have it applied to various types of businesses or user cases it
could be used for farming can be used for firefighting or even as a snow plow
of course we don’t have snow plows here but some of our friends our colleagues
in Ohio would probably find that to be very useful so we want you to be able to
see that and if you have any questions about that feel free to talk to Pete
so as we finish up three points we’d like you to take away today is the first
be in the South Bay we look at it as a very creative hub of the future of
mobility and for Honda this is not only just an ideal place to live but also to
do work and to create some new opportunities and new products second is
the rapid shift in the mobility options so as as ESET car-centric
we’ve all kind of grown up that way but now we have a lot of other options when
it comes to how we want to get around some in some cases we know a car going
to the airport it’s a little more difficult with a parking what not you
may decide to take another form to get dropped off so these are very important
especially as urban areas are expanding and make getting more dense and the new
generation continues to embrace this new technology and of course they’re all
about embracing change so maybe this is very good opportunity since we’re here
with a lot of the University students to say that you know you are the future and
you’re going to be leading the charge on a lot of these new technologies and then
finally we think that rather than Honda go out and work independently we still
need to be thinking beyond our own space and working closely with both public and
private groups to think about how do you innovate in this future space so with
that we conclude our presentation and been a great pleasure too at least for
the three of us maybe get a three for one deal here to present this to you and
share with some of the things that we’ve been working on so thank you gentlemen
remain on stage and take a seat I’d like to invite all the panelists to take a
seat here on the stage now we have our helpful Honda guys in place here love
that right they after this they’re gonna clear the tables and do the dishes and
then some vacuuming and sweeping to the floors now looking this room but
throughout the entire campus gentlemen we’ve had self-driving cars I’ll start
with you we’ve had self-driving cars for years actually you know we will drive
around Southern California we see people putting on makeup handling their
smartphones while they’re driving so we seem to have self-driving cars out there
when are we gonna see the real self-driving cars to hit the road here
in the South Bay what’s the exact date please yeah of course yeah you hear a
lot in the news about 2021 is a big year for some companies that are gonna be
applying some self-driving technology there’s actually five levels of
autonomous driving technology and so I think we’re right now in level two and
level three where in some cases you can drive down the open highway and there’s
a series of cameras and radar devices that are tracking the vehicle so you’re
not having to really be that attentive in terms of you’re not you don’t even
have your hands on the wheel however you’re still there whether it’s
a Tesla or a Cadillac or even a Honda or Acura you still have to be there to take
over one needed so I think it’s going to be further out than 21 when you’re gonna
see what some people coin the term Robo taxi or there’s no steering wheel it’s
probably gonna be a little bit further out as far as the year we don’t have an
exact what about the exact date all right
we’ll get back to that for the economists on the panel obviously
affordable housing a huge issue for everyone here when somebody asks you
what’s up the correct answer is nothing but the rent if you live here in the
Southern California so for dr. Martinez and for dr. Prager and perhaps for
William you as well from the UCLA Anderson forecast what’s the outlook
here with the affordability are getting worse in this area and it should be
noted a greater number of South Bay Millennials are living with their
parents than the last says you’re 130 years somebody
calculated largely due to a disparity in wage increase among other things one
will this change dr. Martinez do you want a specific date if you don’t
mind I think the main issues for employers right we we know that it is a
very good area innovative area we’re trying to attract the brightest minds in
the world but the keys how do you attract them to an area that is very
expensive that is gonna take him an hour and a half to get to work so the key
here is about transportation and making sure that you are able to attract and
retain the workers so this is your housing and traffic is about economic
development so if we don’t handle that and we don’t think about that then I
don’t think the economy can sustain this growth okay so the short answer for that
question I think is a not quite optimist in for affordability issue
yeah just like Jose mention about this demand supply issue demand and supply
factor and so even Southern California we had a strong demand and supply effect
that doesn’t help at all so actually you know personally I had is a tree war
answer long-term sustainable solution for this housing crisis which is
you baby boom yeah so I I know that it’s very difficult so but but I had done
some research your ballet you know I analyzed the main factor
consider about a manatee human capital ocean you know distant to the beach all
those kind of factor an economic development and another factor is a
building permit number over the past ten years twenty years and it’s very always
very significant that is the factor to determine area which is a very expensive
or not so expensive so I think we need to change the mindset we need to embrace
high-density for four thousand California now we are now like several
decades ago you know this is a great place just like everybody say here is a
great place and we should try to make a housing less expensive and surely one
solution is yeah what do you thank you very much somebody close that door every
time the toilet flushes I’m hearing it we have to close that door over there
please any thoughts on prop ten is is the is
rent control an issue here in the in the South Bay any thoughts on prompt end
doctor Prager I so really interesting survey which asked residents of
California what was the main cause of housing in affordability and number one
on that wasn’t the economists answer which is clear and obvious increased the
supply it was the lack of rent control so regardless of whether economists like
it or not in general people see this as a problem a cause of the problem even
though it’s actually a solution whether that works or not is another question so
that particular proposition that allows cities more sway over their own rent
control policies so it’s not like by voting for that you’re then going to
create rent control across the state of California there’s a two-stage process
and but it looks like people do favor it’s as a as a step in that direction
let’s zoom out here in the limited time we have available then we’re going to
open up to the audience for some questions as well but folks what are
some of the biggest challenges cities face as they transitioned into the smart
cities of the future and and will this lead to worsening of the affordability
situation here for residents yes and will there be any Singaporean
restaurants here in the South Bay anytime soon I think that technology
answer is the connectivity right if we we can have all kinds of technology but
if your smartphone is not up to speed if 5g is not coming through fast enough
quick enough it’s going to be a problem that is from the technology side and
from the city’s infrastructure side unless cities are going towards cloud
computing it’s going to be a challenge you know if you don’t have internal
infrastructure and a lot of cities are still holding on to internal
infrastructure it becomes a problem so it’s not going to serve the citizens
quick enough what is the smartest of the smart cities and which is the stupidest
out there you know at the end of the day if
citizens are enjoying you know to stay there work there so I hear Barcelona is
supposed to be a great smart city I’ve never been there
so I’m just hearsay but my daughter was there and she had a ball so I and Dubai
for sure because they have money I mean now they are experimenting flying taxis
Dubai’s and the worst smart city stupid a smart city said one of the South Bay
cities I think I don’t know I really don’t know I understand Honda is working
on flying cars gentlemen any insight on that we need them here it’ll be quite
some time before we ever get to flying cars first we need to fix autonomous
cars on the road though honda does make a jet so big that that’s very good
anybody else yeah okay all right Bitcoin and blockchain certainly they have their
supporters we saw Bitcoin hit what about almost 20,000 late last year and it’s
down around the 6,400 now the explanation was it’s going up because
it’s going up and now the explanation is it’s going down because it’s going down
we’re still trying to figure that out it does have tremendous boosters but
tremendous critics as well dr. Nouriel Roubini for example is a
very vocal critic I can’t even use the word that he uses to describe a Bitcoin
but you can just imagine what it might be for the critics of Blackie’s also
says that blockchain is an overhyped technology how do you answer the the
very severe critics on all this well I’m going to say crypto currency is a little
different discussion than the actual blockchain technology and I actually in
the worst person to ask about to investing because I buy high and sell
low unfortunately although I do think cryptocurrency about a good week then the most volatile week for stocks anyway
not necessarily for Bitcoin but certainly it’s been a wild year go ahead cryptocurrencies are definitely here to
stay in many many ways and the banks I think are one of the first to be afraid
in fact the my mention that two billion dollars is being invested by companies
today in the United States and half of that are by the baek’s because they are
worried they do not want to be disintermediated and actually Bank of
America and other banks have filed the most patents even though this is open
source which is kind of weird but they filed the most patents in this space but
other countries like Singapore they actually encourage the study of
cryptocurrencies between their banks and they’re using cryptocurrencies we’ll
never see it it’s a currency that’s between banks to reconcile their books
like within seconds rather than what would take normally days or longer and
they have a product in Singapore between banks and now with banks international
money I kind of want to change the subject ooh not for approach is gonna
have time for that so um Facebook is building its own
artificial reality glasses according to the verge who does not want to strap on
internet connected Facebook camera to their face so says the today’s the verge
Facebook has a huge investment in virtual reality most prominently in its
ownership of oculus social media giant has confirmed that it’s working on
augmented reality glasses too according to TechCrunch for Facebook is this
correct and are we going to be wearing these things out in public well like I
said nobody wants to wear those big huge goggles right that’s just where we are
right now with the technology look at the hardware so literally literally the
technology to make the glass thin enough doesn’t exist yet but it will
just like how pcs what’s that law the Marshalls law or whatever of computing
mark that was close so it’s the same thing on the hardware
side so the way you see the sets now are not what its going to be in ten years so
same with the augmented reality glasses how they are now is not what it’s gonna
be in ten years what is it gonna look like I don’t know like hopefully very
very seamless just the same as if you went back to that 1895 train story and
tried to explain what a mobile phone was or even a TV right it’s gonna be
something that is gonna seem very clear to us so it’s gonna be more about how
easy it is for everybody to have just like every single person in this room I
know has a mobile phone that’s why that’s not the future it’s the person
who doesn’t in here who is the one person that doesn’t I will call you out
but that’ll be the case with virtual reality and then we start to see okay
what what how does that content change beyond gaming yes I’m gonna turn the
audience now for questions I know the first question is sometimes slow
incoming so is there a second question as we prepare to conclude this forum
second question please dealing with the homeless issue here in
the South Bay what’s being done if anything please go right ahead obviously
there were two major policies passed by voters in the region so there’s the LA
County property tax measure and then a sales tax in the city of La and both of
those have raised I think a total of four over four billion over a number of
years and that is you know aiming towards reducing the number of homeless
and also you know reducing the number that are entering homeless this the
clearly the problem now is how how and where do you build the homes that are
going to house the homeless population you know mayor Garcetti is trying to
convince local neighborhoods to welcome those new housing units into their
neighborhoods and it’s facing a lot of opposition even in very what we’d see is
liberal enclaves like Venice so my suspicion is the implementation is going
to be a very difficult indeed thank you dr. Prager next question from
the audience we have a microphone please go right ahead hi my question is for the
Honda folks if you look from the point that mr. Honda first started the company
combustion engine kind of a linear progression in the planning but now as
we look at not only autonomous vehicles but different deliveries different
modalities different users how is your planning and design staff evolving to
look at these many different views of the future and what’s the future of the
combustion engine some countries are getting set to outlaw them right all
right that’s correct I think also even in some of the urban environments
they’re gonna there’s a lot of proposals to ban what we call icees or internal
combustion engines from the city centers so that we’re in the midst of that and
so in terms we can’t give any details of the plans that were in but I can
guarantee you like in our particular departments we’re knee-deep in a lot of
these issues that were trying to figure out how does Honda adapt to this kind of
new mobility environment so we think they’re still going to be a place for
the personally owned car you know we’re gonna see electric starting to increase
adoption of course a lot of that happens with affordability the cards have to be
affordable to own and to even the rent but I think for these other modes of
transportation we’re actively looking at those and looking for some solutions
next question will the audience go ahead so my question is also for team Honda so
so you know you talked a lot about the future of the cars and automotive sector
and how in the future we can have the autonomous cars or semi autonomous cars
right so but even in the Millennials or Jen’s ears a vast population is still
what we used to call petrol heads people who like to drive cars so what is team
Honda or the whole automotive sector whether this team Honda or some of the
other competitors of team Honda doing to to make sure there is some sort of you
know satisfaction for those consumers in the future
who would like to see the steering wheel in the car yeah I think that’s that’s
always gonna be there I’m a I’m a huge petrol head myself that’s a big
challenge first right now you know you read all these articles about Gen Y not
being interested in cars and you know we alluded to it earlier they have these
option now where’s when I was growing up if you wanted to go on a date you had to
have a car if you wanted to connect with your friends you had to have a car and
it’s not so true anymore you can connect so well with without having a car these
days and so there’s just less pressure on them to do it but I think you’re
always gonna have that core customer that that core enthusiast that wants to
have some fun with the car so I don’t think that’s how we’re gonna go away and
and that the autonomy is gonna trickle in very slowly it’s gonna start with
luxury cars you’re gonna have a lot of you probably have a car that has
automatic emergency braking these features are just gonna slowly trickle
in and eventually we’ll get to a fully autonomous car but it’s going to take a
long time what do you need for a date now smartphone of course go you talked about the economic impact of
manufacturing jobs in this region and I’m just wondering if you could address
the current trade policy and how that can affect the jobs and if the increase
in tariffs will eventually affect the number of jobs that are either being
created or maintained in this region William you just back from Taiwan please
go ahead ahead that’s a very big question um so so so right now the trade
tension I think it’s only with China because I think eventually we figure all
ways uh Canada and Mexico and then Japan euro so there should be no problem so
but major problem will be with China and I think that is beyond just pure
economics a situation is they are geopolitical and so it’s very complex I
don’t know what we’re eventually play all next year I’m pretty sure
probability will see 25 percent of a tariff on loves 200 billion Chinese
import that’s pretty sure because even though there will be a meeting between
President Ron and XI in November I don’t think there would be a big change of lap
meeting yeah and in terms of the impact I would say actually we are looking at a
number it does help a manufacturing job in the United States do that because
there’s the original motivation of this tre talk in terms of an impact on for
example Los Angeles Poor’s largest e let might be some kind of negative impact
for that and we all consumer American countrymen probably need to pay a little
more in the short run you know thank you very much
the next question really got we have people from all over the world here
today and some of you have come from as far away as Orange County and I see the
person of Orange County who’s got a question go right ahead
yeah I want to thank the college or the university for
sponsoring this I’m actually in the labor movement I work for the Teamsters
Union and my name is Patrick Kelly and I’d like to get some response from the
academics and how do we move forward at a time when we have 400,000 jobs and the
logistics sector here in Southern California we don’t have a lot of
manufacturing jobs like we used to we certainly have manufacturing jobs but
now we were really faced with an existential threat with prop 6 which
will basically wipe out a lot of infrastructure funding in the highway
sector and in in transit and I I personally believe we will defeat prop 6
but we’ve got to put a lot of energy and resource into educating people and I
really think there’s a challenge for the business in the academic community to
help educate people that there is no such thing as a real
free lunch and that we have to if we love California we have to protect
California and we have to educate people that that if they have to pay a 12 cents
a gallon or whatever it is to have safe street streets and to have good highways
and not have gridlock that people need to step up all right as I’ll tell you
we’re not gonna have the jobs we have if we’re not real careful thank you how
about dr. Prager I see about prompt 10 how about prompt 6 that would be
repealing the recently imposed the gas tax of 12 cents so taxis are not popular
for any voter right nobody likes to spend more money on things but in this
case there does seem to be a significant price that we’re paying for the lack of
investment in infrastructure and so I guess voters need to weigh up whether
they want to pay less at the pump or maybe pay more for the damage to their
car or the you know the knock-on effects of impacts to business and you know
logistics that may that may happen anybody else on infrastructure hardly do
get we saw that picture the gushing standpipe hardly it it goes
by when the pipe doesn’t blow out or the lights don’t go out someplace here as
far as supporting infrastructure improvements any signs that we’re gonna
see some movement there dr. Martinez you want a specific date of course I think
the key going back sorry to go back to the jobs question
I think there was a study of the LED see that shows that there’s gonna be a lot
of new jobs in the area but the problem is that they’re not gonna be enough to
be a living wages that people can afford to live here so that is a challenge so
you want jobs that you want good-paying jobs so it is tricky to think about just
jobs and jobs terms because if you don’t have a reasonable wage it doesn’t make a
difference that to live here you need higher wages so it’s not just about jobs
the discussion should be about the wages not just the number let’s go back to
tech now one of the hot spots here with silicon beach of course and blockchain
beach as we heard what in the Bay Area I guess for the tech folks how do you see
entrepreneurship evolving here in the South Bay and give us an update on the
vibrant tech sector here in the Silicon Beach area
sure so as I mentioned silicon beach we actually there’s a section called
blockchain beach we are for better or worse the ico hub of the country we have
the largest investment companies that invest in icos the biggest marketing
media some of the best attorneys and so there’s a lot of activity despite some
of these questions around regulation but in addition to that I had mentioned in
my presentation Northern California is very focused on blockchain protocols New
York is very focused on financial services for all of the rest including
supply chain management logistics aerospace healthcare really there’s so
much happening in Southern California I hope that we encourage our future
students to look at jobs in that because that’s where there will be a lot of job
growth yeah can I just add on the media side and so I’m actually based in in LA
so Facebook has an office here on the entertainment side remember I talked
about content and distribution the infrastructure of media is mostly in
NorCal like from the technology platforms but all the content platform
development is down here and so that’s kind of the other half of Silicon Beach
it because I’m right down the street in Playa Vista but what you’re seeing is
like I said there’s there has never been more content buyers than right now you
don’t have to sign a deal with Warner Brothers so if you want to become a
movie director and all the digital startups in Silicon Beach are people
like a BuzzFeed or these digital native publishers that are buy full screen is
based there all these things that are buying up media like crazy and all the
content production happens here we’re still the entertainment capital of the
world it’s you’re just getting a diversified buyers market so it’s really
interesting like I know we have a big media department here big production
department it’s interesting where you know your career can take you an
entertainment now it is when I met your boss Sheryl Sandberg a while ago I had a
chance to tell her that we went to the same high school together she was there
10 years after I was there but North Miami Beach Senior High School and she
said oh yeah have you ever been back there and you know she was very excited
about how does it feel to be back on this campus having been a former student
how does it feel they can’t get rid of me here I love it here I had an amazing
experience here which is why I like to stay involving me on the board so they
can’t get rid of me fantastic well thank you for for participate the pressure is
on the final question of this conference please go right ahead
okay um I have a question about like a smart city because I was in Paris like
last year and I noticed that they I want to know if Paris is considered a smart
city and I noticed that they had cars that you can rent and park in different
parts of the city and that was the first time I saw that so I don’t know if that
type of mode of transportation is available in this
dates yes yeah I think that is for me right man yes go ahead I think one of
the biggest problems we have in our country is that a lot of regulations a
lot of you know cities have to go through a lot of Hoops to convince Paris
is one of the first cities get into the Smart City conversation and because of
one of the things which is important is that the politicians and the leaders
have to get involved and that is kind of a little bit lacking in our country but
it’s coming along the new generation of councilmembers and you know all these
people Forks are coming in Millennials it’s going to turn around right so
because council members and the city management decide a lot of things so
it’s coming I mean Beverly Hills is going to experiment autonomous vehicles
and things like that it’s coming today’s speakers presentations by the way in the
South Bay economic forecast report will be available tomorrow on the Cal State
University Dominguez Hills website we’re gonna have a little mini Oktoberfest
downstairs I understand now in the palm courtyard for the complimentary craft
beer and wine tasting reception you will need your your pants to get in there so
keep your name badges on they are your entrance ticket to the reception and a
reminder that in addition to Honda’s autonomous workhorse renewing has also
brought some oculus go headsets for you to check out so you’ll want to join us
for some food and fun downstairs on behalf of Cal State University Dominguez
Hills and president part thank you very much for joining us here today please
join me in a huge round of applause for our panel of speakers thank you very
much

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