Official: State industry is fragmented

Pasadena Star News

By: Cynthia Kurtz

Posted 2/27/2013

Recently the San Gabriel Valley Economic Partnership was pleased to host Karen Hathaway, 2012 President of the Los Angeles Area Chamber of Commerce, as our featured lunch speaker. The Chamber Chair is a fitting role for Karen since her great-great grandfather was one of the founders of the L.A. Chamber 125 years ago.

Karen is President and Managing Partner of LAACO one of the oldest continually operating businesses in Los Angeles. Her family’s involvement in the Southern California business community harkens back to the 1880’s, with the founding of the Los Angeles Athletic Club. Today the company is a publicly traded limited partnership. Along with the LAAC, their primary business is managing four million sq. ft. of self-storage facilities.

Even with the responsibilities that come with being appointed President of the company in 1990 and elected as Managing Partner in 1991 Karen has made civic and community involvement a priority. Throughout her business career, Karen has found the time not only to chair the Los Angeles Area Chamber of Commerce, but to serve as chair of the Central City Association, as well as to have served on the Boards of numerous community service organizations including the American Red Cross of Greater Los Angeles and the United Way of Los Angeles.

When it comes to civic engagement, Karen doesn’t just talk the talk, she walks the walk. And civic engagement was what Karen’s lunch presentation was about. Her theme was simple - people in business need to get involved in public policy decision-making. 

California has the ninth largest economy in the world. Los Angeles County has the 21st largest GDP. Our region leads the nation in number of export/import related jobs and is still the nation’s largest manufacturing center. We are clearly a global business center. 

So how can a state and a region with this much economic activity have such a bad reputation as a place to do business? Why are costs and regulations businesses must shoulder so much higher and more complex here? Instead of pointing fingers at who to blame for our situation, Karen suggested the business community needs to do some soul searching. What we would find is that businesses and business associations have “fallen behind.”

“Labor unions coalesced long ago,” she told us “as did the environmental community. Not business.  Fragmentation is the major issue that dilutes the voice of business in politics and government reform. We are told by elected officials that business needs to start showing up (when policy is being made). Our physical absence is a sign that we don’t care.”

Karen suggested a road map for action. Involvement in associations like the L.A. Area Chamber and the San Gabriel Valley Economic Partnership is a step...but just the beginning. “There are limits to what any one business organization can do by itself. Business groups must band together, if we want to be heard.  When we work together, we increase our leverage.”

Great advice from someone who knows the business of business and the business of public involvement.  Partnership and collaboration are the means for a stronger California economy.