Stephen Cheung has been busy since taking the helm of the Los Angeles County Economic Development Corp. last year, replacing industry veteran Bill Allen.
“As Bill was looking at retirement, one of the things that he wanted to do was to make sure that there was consistency. (With) the work that he’s done for 17 years to build the foundation for us, he wanted to make sure that we’re able to understand the direction and the focus, so that we can continue to build on the foundation that he laid,” Cheung said.
The organization, known as the LAEDC, is a nonprofit tasked with aiding economic growth in the Los Angeles region.
Cheung said his first two years in the role have been “really exciting” but also “overwhelming in many ways.”
“L.A.’s economy is so diverse. We have to partner with not only the industries and the businesses – and this includes the Fortune 500 companies to the small mom-and-pop shops – and then you also have to work with governments. There are 88 different cities, the county of Los Angeles, the state, the federal government; there are many different aspects,” Cheung said, adding that he also works with schools and communities.
He called working with so many groups “one of the biggest challenges so far.”
“It’s hard to build consensus,” Cheung said, adding that he was working on building a strategic plan that represented all voices in the region.
Prepping for the Olympics
One of the biggest opportunities Cheung said is on the horizon is the number of high-profile events such as the FIFA World Cup and Olympic Games coming to Los Angeles.
Cheung said a priority for him is making sure the impact of the events extends beyond just the events and that local companies are able to take advantage of “indirect opportunities.”
“How do we make sure we’re able to leverage these huge global events where the eyes will be on L.A. to create new industry opportunities, and especially job opportunities and entrepreneurship opportunities for all Angelenos?” Cheung asked.
“You have the Olympic Games coming over here, and they have all these international delegations that will be coming here, how can they basically contract with local small businesses?” he continued. “Do they have printing needs? Do they have catering needs? Do they have marketing needs? Can we start helping our small companies to understand the opportunities that are available and help them prepare so that they can scale to meet the demand that will be coming? It’s a once-in-a-lifetime opportunity. We don’t want to waste it. So that coordination of all the resources and all the diverse companies here ready to take advantage of those opportunities, you have to create the pathway.”
Cheung said that while the county may be ready to host the large events associated with the Olympic Games, there was still work to be done to “make sure that we’re able to benefit the entire region and leave a legacy.”
Importance of the ports
Cheung joined the World Trade Center Los Angeles, a subsidiary of the LAEDC, in 2015. He also leads the group. He was formerly the director of international trade at the Port of Los Angeles.
The ports of Los Angeles and Long Beach are among the busiest in the world and make up a huge part of L.A.’s economy. Cheung said the ports’ recent push to hydrogen and other green technology was an “amazing opportunity for the entire region” as is its status as an international trade hub.
“As the global economy continues to change, L.A. will continue to play a major, major role with the Port of L.A. and Port of Long Beach,” he said. “We’ve seen our capabilities and we have a lot more room to grow. So I’m actually very bullish about what’s going to be happening in the future.”
He added that beyond the ports themselves, “the entire supply chain” needs to function correctly, including trucks, fueling stations, warehouses, distribution centers and more.
Being green, he said, is a huge part of the future of the ports.
“In order for us to grow, we have to grow green,” he said.
Entertainment sector
Beyond the ports, the county is also known for its bustling media and entertainment sector with people around the world associating Hollywood in particular with the film industry.
It has, however, been an interesting time for a business heavily impacted in recent years by a global pandemic and then labor strikes halting production. Some studios have also moved projects to other cities or countries with strong tax credit programs.
To lure productions back to L.A. and encourage others to stay here, Gov. Gavin Newsom announced a proposal to expand California’s Film & Television Tax Credit Program to $750 million per year, up from the current level of $330 million per year.
Cheung said the LAEDC was “very much involved with that process.” He added that keeping productions local was important not just for the productions themselves but also for the “multiplier effect.”
“For every single state dollar that comes in, you’re going to get over $20 in return, in terms of economic impact,” Cheung said. “The jobs that are created in this industry are very enticing because they’re high paying jobs. They actually sustain the entire economy.”
Looking forward, Cheung said his goal for LAEDC is to “support the growth of various industries.
“In order for L.A. to be thriving, you can’t just depend on one or two,” he said.
