NEWS AND CONSULTING ACTIVITIES April 2011 Spring Issue

Quarterly Economic Commentary

By Tony Villamil

US Economic Indicators
Real GDP Growth PCE Deflator (Inflation) Payroll Employment (Seasonally Adjusted)

2008*
0.0% 3.3% -0.6%

2009*
-2.6% 0.2% -4.4%

2010*
2.9% 1.7% -0.7%

Economic Outlook for 2011

National economy expanding at a moderate 33.5% annual rate. Inflation at consumer level, while modest, is increasing due to energy/food prices. Employment growth accelerating in 2011. This is positive for improvement in consumer confidence and spending.

Florida Economic Indicators

Payroll Employment (Seasonally Adjusted)

2008*
-3.5%

2009*
-6.2%

2010*
-1.1%

Economic Outlook for 2011

Employment growth is expanding at a modest 1-1.5% this year. Key industries expanding: Visitor, International Trade, Healthcare and Business Services. Sales have started to increase at a moderate pace, with foreclosed properties moving in the market. It will take several years before a normally functioning housing market returns. Trade activity expanding strongly. Major markets of Florida in Latin America growing at a healthy pace.

Single-Family Home Sales

-4.1%

32.7%

5.1%

Exports ($ in Billions)
Sources: BEA, BLS, AWI, FAR, EFI and WEG.

$73

$60

$73

Recent Consulting Services

Major University System Expanding Nationally with Assistance of WEG Market Analysis A major University System, and long-standing client of WEGs, retained the firm to provide the national market intelligence in their efforts to expand the University across the United States. Such analyses over the past year conducted by WEG on behalf of the University System have included the Metro Washington D.C. area, the Metro Denver, Colorado area, as well as regions of interest in Nevada, Texas, Illinois and California. The WEG Market Analyses have been instrumental in the University Systems successful market entry in Florida and throughout the U.S. WEG Completed Economic Analysis for State Manufacturer A large state manufacturer with long-standing ties in the State of Florida retained WEG to study the impact of legislation that would impose a proposed tax increase on the companys products. WEGs analysis found that if passed, there would be significant negative impacts on jobs, labor income and fiscal revenues to the state. The adverse economic impacts were found to primarily occur in the county where the Companys headquarters and manufacturing facility are located which is a low income and high-unemployment area Florida Chamber of Commerce Foundation Commissioned WEG Study on Judicial Compensation and Recruitment Practices In partnership with The Florida Chamber Foundation, WEG prepared a comprehensive study on the trends of judicial salaries by analyzing the salaries of trial judges in Florida to that of selected states. WEG also developed and conducted a survey of current judges and attorneys on issues impacting the retention and recruitment of judges in Florida. The Study found that wages of Floridas trial judges are significantly lower than the other comparative states such as Alabama, California, Georgia and Illinois among others. The Study also concluded that in order for Florida to reach its future economic goals, the state must maintain its attractive business climate by recruiting and retaining the best judges to administer justice. Demand for Solar Generation Projects in Florida Studied by WEG WEG prepared a study on the demand for proposed solar generation projects in the State of Florida and specifically, in six counties around the state. Retained by a major state utility company, the study found that significant employment opportunities and fiscal revenues would be generated by the establishment of the solar projects in the specific counties studied. The analysis also found that establishing new solar power and energy generation projects would facilitate local (countywide) and statewide economic development while also presenting a unique opportunity to the state to establish and grow a new industry and spur innovation.

WEG Economic Consultants Completed Conclusive, Follow-Up Study on Sales Tax Holiday, Commissioned by the Florida Retail Federation
The economics consulting team of WEG completed a study comparing the 2010 sales tax holiday with the findings of WEGs 2009 study on the expected impact on state revenues from a 10-day sales tax holiday. The results of this study were in line with the 2009 WEG study which concluded that a sales tax holiday would result in increased sales tax revenue to the state. The findings of the analysis were presented by WEG Principal Tony Villamil and WEG Senior Economist Dr. Horacio Soberon via a Webinar that was attended by retail association representatives from around the country.

WEG Retained to Study New Fuel Distribution System at South Florida Port
A recently completed WEG study examined the potential economic impacts associated with the proposed construction and operation of an in-ground fuel distribution system at a major port in South Florida. Commissioned by a European-based logistics company, the economic analysis found that a 21st Century fuel distribution and delivery system would facilitate local, regional and statewide economic development while also improving productivity and facilitating the efficient movement of goods and services from the local community to regional, national and international trade partners.

An Alabama University Hired WEG to conduct System-Wide Economic Impact Analysis

WEG is preparing an economic impact study that analyzes and presents the economic impacts of a University in Alabamas operations in the State of Alabama and in the region of the state in which the University is located. The Study will quantify the direct, indirect and induced impacts of the Universitys operations on jobs, labor income, business revenues, gross state and regional product, and state and local taxes for Alabama. The study will also present the key contributions of the Universitys alumni and the Universitys role as a foundation for economic development in the state and region.

Recent Speaking Engagements & Interviews WEG Principal Economic Advisor Participates in Daily Business Reviews Business Advisory Board Panel
Tony Villamil participated in the Daily Business Review's first quarter 2011 Business Advisory Board panel discussion on March 28th. Villamil is a member of the Advisory Board of the Daily Business Review. As a regular panelist, Villamil spoke about what role the public sector plays in job creation, the current state of Floridas proposed budgets cuts and their impact on the state and local economic growth and recovery

Marielena Villamil, CEO of WEG Featured in El Venezolano

A community newspaper geared toward the Venezuelan communities in Broward and Palm Beach counties highlighted Mrs. Villamils leadership qualities and discussed her long-term involvement with Hispanic women in our community. The article also highlighted her as an entrepreneur and as a volunteer in diverse boards such as her Chairmanship of the Ana G. Mendez University South Florida Advisory Board.

Tony Villamil Interviewed on Black Swan Events Impacting the Economy

The recent tsunami in Japan, unrest in the Middle East and rising gas prices prompted Miami Today to contact Villamil on the impacts of such uncontrollable, but impactful events. In a March 24th Miami Today article, Villamil said that such actions create a Black Swan event which is an unpredictable event with far-reaching consequences. For example, Villamil said that computer equipment shortages could impact business confidence as the U.S. is interdependent with Japan.

Villamil Delivered Annual Economic Update to the Board of Trustees of the Greater Miami Chamber of Commerce
On March 22nd, Tony Villamil delivered his annual economic update to the Board of Trustees luncheon of the Greater Miami Chamber of Commerce. Always a large event attended by hundreds of local business and civic leaders, the updated focused on an overview of the economy in 2011 and provided an outlook on what will impact South Floridas recovery from the Perfect Storm of 2008-2009. Concerning the state and local business climate, Tony said that while the global brand of Miami is strong and the next two years are likely to show an improving business environment, state, county and municipal budgets and finances remain downside risks moving forward.

WEG CEO Joined Recently the United Way Center for Excellence in Early Childhood Education Committee (CFE)
Marielena Villamil recently joined the governing body of the CFE. The CFE concentrates on advising and guiding the Center which is at the epicenter of early learning in South Florida as it provides training for educators, students and parents as well as administrating a demonstration school.

Tony Villamil Re-elected by Enterprise Florida to Chair the Global Commerce and Investment Committee of the Board
At the January meeting in Tallahassee chaired by Governor Rick Scott, Tony Villamil, Principal Economic Advisor of WEG, was re-elected as Chair of the Global Commerce & Investment Committee of the Board of Directors of Enterprise Florida the statewide economic development organization that is chaired by Governor Rick Scott. Tony is active in Florida and Miami-Dade County affairs, serving as Senior Fellow of Florida TaxWatch and Chairman of the Economic Roundtable of The Beacon Council, among other civic and professional activities.

WEG Principal Advisor Headlines Economic Summit in Lakeland, Florida

Tony Villamil was the keynote speaker at the Lakeland Chamber of Commerce-sponsored Annual Economic Forecast Breakfast. The Breakfast, attended by over 600 members of the Lakeland business and civic communities, focused on the Florida economy and what should be expected in the year ahead. Villamil said that an accelerating recovery for the U.S. economy will help fuel Floridas turnaround.

Marielena Villamil, WEG CEO, Advocates for Miami-Dade College (MDC) in State Capital
WEG CEO, Marielena Villamil traveled to Tallahassee, Florida during the 2011 Legislative Session as a Trustee of Miami-Dade College. Accompanied by fellow Board members and MDC President, Eduardo Padron, the group met with key legislators to discuss higher education funding.

Villamil Addresses Coral Gables Rotary

In February 2011, Tony Villamil gave the lunchtime keynote address to the Coral Gables Chapter of the Rotary Club. His presentation titled, 2011 Economic Perspectives for South Florida Under the New Normal Economy was a favorite among the local Rotarians. The presentation highlighted that 2010 was a transition year for local businesses and that a moderate economic recovery will take place in South Florida in 2011-2012.

WEG Principal Economic Advisor, Tony Villamils Upcoming Presentations

On April 14th, Tony will deliver the keynote address to the Florida League of Mayors on during the groups Mayors Mean Business event in Tallahassee. Villamil will discuss the economic outlook for Florida and specifically the important role that local governments have in economic development and job creation. Governor Scott will also deliver remarks at the event. On May 13th, Tony will deliver remarks on the economic outlook at the Coral Gables Chamber of Commerce-sponsored Commercial Real Estate Forum. The lunchtime event will take place at the Biltmore Hotel in Coral Gables at Noon. On June 16th, Tony will participate in the Financial Planning Association of Miami-Dades Symposium at the University of Miamis BankUnited Center. Tony will kick off the day-long event with his presentation titled, The Economy under the New Normal Implications for the Financial Planning Industry. In August, Tony will address the Office Business Center Association Internationals (OBCAI) Annual Education Conference in Las Vegas, Nevada. His presentation will focus on the global financial trends and implications facing the current business environment. This is Tonys third time presenting at OBCAIs Annual Conference.

If you are interested in having Dr. Villamil speaks at your organizations next meeting, retreat or conference, please contact: Ms. Mary Snow, Managing Director of Client Services At 305-461-3811 or msnow@weg.com