Our inaugural issue (Winter 2010) examined how the Inland Empire was facing one of the most severe recessions in history. This issue continues that analysis, but also notes how some sectors are looking beyond the recession and investing in the future.

To help assess the prospects for growth and investment in the Inland Empire, we have developed two new economic indices specific to the region. Our Inland Empire Coincident Economic Index (CEI) provides information about the current state of the economy, and our Inland Empire Leading Economic Index (LEI) seeks to predict future economic conditions (p. 2). There is no question that the Inland Empire will continue to struggle to recover. Commercial real estate vacancy rates have been rising (p. 12) and trade volume has been decreasing (p. 14). However, the indices we are developing will help businesses position themselves for the region’s eventual recovery.

Turning to the public sector, we discuss how the City of Riverside, the Inland Empire’s largest city, is seeking to maintain innovative policies during a period of reduced revenues (p. 8). Under Mayor Ronald Loveridge’s leadership, Riverside has continued to make strategic investments in infrastructure, technology, the environment, and the arts. Meanwhile, some of the region’s Native American tribes, including Agua Caliente, are seeking to diversify their business enterprises to sustain future growth (p. 18), and candidates for the California state legislature in Inland Empire districts are debating how to promote economic recovery (p. 20).

The publishers of Inland Empire Outlook are also looking to the future. The Rose Institute of State and Local Government and the Lowe Institute of Political Economy have recently launched the Inland Empire Center for Economics and Public Policy. The new center is designed to provide the Inland Empire with expert analysis of the region’s political and economic trends. In one of its first ventures, the center has formed a partnership with the UCLA Anderson Forecast, California’s premier economic forecasting organization. This affiliation will combine the experience of the UCLA Anderson Forecast with the Inland Empire Center’s specialized knowledge of the region. As part of this collaboration, the Inland Empire Center and UCLA Anderson Forecast plan to co-host conferences featuring topics of special concern for the Inland Empire at local venues in San Bernardino and Riverside counties. The conferences will help establish the UCLA Anderson Forecast/Inland Empire Center partnership as the preeminent source for economic and political analysis of the region.