From crisis to coalition … to the cosmos
How Deloitte helped launch a space-age economic revival on California’s Central Coast
COST OF LIVING: UP.
MAJOR EMPLOYER:
SHUTTING DOWN.
TIME TO GET STRATEGIC.
The Situation
Say you're up in space and happen to look down on California's Central Coast—there, hard by the ocean surf, you might be able to make out the top private-sector employer in San Luis Obispo County. What you won’t be able to see is that a few years ago this employer was slated to be shut down.
Nor could you see how—even before the announcement—workers there (as well as other locals) were struggling economically to stay where they grew up. You couldn't see the sense of deep distress. And you definitely couldn't see how the region might get itself out of this pickle.
But back here on Earth, in 2019, you could see Melissa James of the SLO County Chamber of Commerce start to try. First, by helping convene local business, government, academic and community leaders to start conversations about how to address the crisis, and to build a shared concept of regionalism. (As in: Never mind that the crisis spans two counties bigger than the state of Connecticut, with 15 cities and dozens of unincorporated communities. Civic boundaries are no more relevant to the crisis than can they be seen from space.) Next, she was helping coalesce these early stakeholders into a working team, dubbed the Hourglass Project (as in: time’s running out). And then … what?
"I'd just gotten up on a big stage to say we're going to start this organization,” James recalls now. “It's been announced, it's in the paper. Then there was this moment: Okay … now we need to double down and really get to work."
She knew they’d need help, but from whom? Again, she just started trying. And so, from a dead start and then a connection with someone at Deloitte, she ultimately connected with the organization and its Government and Public Services professionals.
THE SOLVE
THE ADDRESSABLE
MARKET LAID OUT
IN THE 2030
MASTER PLAN: $1 TRILLION
The Impact
The REACH 2030 plan followed by the VSFB Commercial Space Master Plan—aren’t just road maps; they’re a reality. And they’re happening thanks to the unique coalition—including REACH, the Space Force, California Polytechnic State University (Cal Poly), the Governor’s Office of Business and Economic Development, the County of Santa Barbara, and Deloitte—that started with the Hourglass Project.
REACH initiatives—like developing the space industry, modernizing infrastructure, creating a regional talent pipeline, enhancing quality of life and affordability, and fostering regional alignment—have all gained traction.
Over 100 companies benefit from these initiatives today, with high-paying jobs secured—a significant boost to the regional economy. To wit: the State of California is creating a space industry task force—as called for in the master plan—and awarding $60 million in tax credits to two companies expanding at VSFB. The nearby city of Paso Robles is also leaning into the regional strategy, having already secured letters of intent from international companies to support a horizontal launch spaceport at its underutilized airport.
Meanwhile, commercial (and vertical) space launches from VSFB have, well, taken off: from nine in 2020, to 50 slated 2024, and a hundred projected by 2026, with VSFB officials in talks with even more launch providers.
(In fact, launch activity got so busy so quickly that VSFB started experiencing bottlenecks in processing payloads. REACH then secured $80 million in federal funds to ease the, well, load, and start a mission development zone—also as detailed in the master plan.)
And these are only the early successes; REACH and Deloitte anticipate continued, regional economic development across other emerging growth sectors and industries. To wit: Through the Jobs First Program in the State of California, with REACH as lead partner of the Uplift Coalition, six counties and community-based organizations are driving plans for a resilient and inclusive Central Coast, with Deloitte acting as a lead strategic adviser.
“The groundwork Deloitte did back in 2019 is still spot-on today,” notes Sally Buffalo Taylor, Communications Director at REACH. “They helped the community and region get to the root of issues and address them in a timeless way. Even after a global pandemic, and everything else that's happened, the work's still very relevant and we talk about it every day."
"On a personal level," adds Melissa, characteristically highlighting the people part, "we call them our Deloitte family."