Healthcare, the Leader in OC Office Growth
The healthcare industry has seen the most growth in Orange County over the last 15 years, but diversification has been the key to local economic growth.
“As the saying goes, ‘don’t put all your eggs in one basket.’ It is great advice that not only bears relevance on the farm but also in an economy and within a company,” Paulina Torres, research analyst at JLL, tells GlobeSt.com. “In the same way experienced investors spread their capital across different industries, companies would also reap the benefits of sustainable, long-term growth by approaching their business strategy in the same manner. A uniform consumer base makes a company completely vulnerable to any changes that may negatively impact that base.”
These diversified companies have also helped fuel growth into other market, strengthening the core brand. “Companies with diversified products/services can tap into more markets, increase their technological capabilities with increased R&D, and benefit from cross selling and brand equity, and expand their client base,” adds Torres. “Pacific Life, for example, headquartered here in Newport Beach, has made several acquisitions that have greatly diversified the company and allowed it to stand the test of time.”
According to Torres, companies can achieve diversification through “informed decision-making,” which she says can have a big impact on a company’s success. “Informed decision-making is crucial to achieve sustainable growth through diversification,” she explains. “This requires careful research and analysis to ensure that a new opportunity is potentially viable, competitive and would meet the needs of the targeted consumer base. Companies should take a deep dive into research to identify exactly what they can offer and then analyze the targeted market to determine its competitors and if it shows promise for revenue growth.”
Healthcare and education have led the job growth in the market not only in the last 15 years, but more recently as well. The industry recorded the largest year-over-year increase, adding 8,000 new jobs, of which 91% were from healthcare and social assistance. “Social assistance and ambulatory health services have been crucial to the long-term growth of this sector as well,” she explains. “Over the past 15 years, social assistance has grown by 195 percent and ambulatory services has grown 76 percent. During the past 15 years, Orange County, as a whole, has significantly grown, we have obviously had a ton of growth in healthcare across all major hospitals in the area. Hoag, for example, was only located in Newport Beach but now has buildings reaching as far down as the Irvine Spectrum area.”
Torres wasn’t surprise that this industry led the job growth. As a whole, healthcare has been booming nationally. “Across the nation, the aging population has increased creating strong demand for these services,” adds Torres. “In Orange County, those 50 years old and older made up 29 percent of the total population in 2010, today they make up 33% of the total population and in 2023, they are projected to make up 35% of the population. So, this demand will only continue to push the growth and prominence of this sector in the Orange County market.”