Strong Economic Pull

The top three labor employment sectors in Napa County today are manufacturing with 10,500 employees; Trade, Transportation and Utilities with 9,000 employees; and Leisure with 8,225 employees. Employment rates for all three sectors have been growing steadily since 1992. However, because of California’s budget crisis, both education and government experienced a decrease in employment between 2002 and 2003.

The Retail and the Service sectors each account for more than 10 percent of Napa County’s total labor market, although the service industry has experienced a substantial decrease of 20 percent of total employment since 2001. Agriculture and Construction are strong employment sectors, which employ 4,791 and 4,366 Napa County residents respectively. Both markets have experienced volatility over the past decade, which is likely due to the unpredictable nature of the industries and the dependence upon unstable outside factors such as weather patterns and the economy. Wholesale trade employment increased by 13 percent between 2002 and 2003, while the financial sector lost eight percent of its jobs. This was the finance sector’s first downturn in a decade.

Napa County’s labor force is 54.4 percent of its population, a figure that has remained fairly steady since 2002. The greatest gain was seen between 2000 and 2001 when employment rose by 2.25 percent. This is likely attributed to the end of the nationwide recession in November of 2001. Overall labor force participation rates have been trending upward since 1995, and are 4.6 percent higher than they were a decade ago.

Napa County’s unemployment rate has recovered from record high levels of over seven percent in the early 1990s. However, the County’s unemployment rate has more recently been trending upward. This recent increase, however, is occurring at a much slower rate than that of the 1990s. The slope of the adjusted trend line and recent California economic trends indicate that Napa may be nearing its unemployment peak. This peak would be significantly lower than the peak of the early 1990s. In 2004 Napa County had an average unemployment rate of 4.5 percent, or 3,300 people. The seasonally adjusted unemployment rate for Napa County in December of 2004 was 5.1 percent, a rate unseen in Napa County since 1997. However, employment conditions in Napa are still better than both California and the U.S., which had rates of 5.8 and 5.4 percent, respectively, in December 2004.

Napa County has seen the median annual household income rise from $36,773 in 1990 to $51,738 in 2000. This represents a 29 percent increase. Consequently, current economic conditions have improved markedly. In particular, the County has seen large increases in the percentage of households in the relatively high income ranges and a corresponding drop in the percentage of households in the low income ranges. For example, income ranges of $49,999 and below accounted for only 48.02 percent of households in 2000 versus 66.93 percent of households in 1990. Households in the higher wage categories of $50,000 to $150,000 or more grew by 18.91 percent over the same decade.

In the year 2000, 20 percent of households were earning between $50,000 and $74,999 per annum, while 16.15 percent of households earned between $35,000 and $49,000, a four percent decrease from 1990. The greatest increases were seen in the higher income ranges, with over 18 percent of households in Napa County earning over $100,000.

Agricultural production in Napa County has increased two and a half times since 1995, growing from $150,405,000 per year to $392,929,000 in 2003. This represents an increase of 161 percent over eight years. Although there have been slight increases in agricultural production varying from one to six percent over the past three years, the largest jump occurred between 1999 and 2000 with a 34 percent increase in total agricultural production value.

Crop diversification can be valuable. However, fruit and nut crops make up an overwhelming majority of Napa County agricultural crops, accounting for 97.92 percent of total production. Red wine grapes accounted for $314,500,000 of the County’s 2003 fruit and nut crop revenue, while white grapes contributed only $70,100,000. Vegetable crops, field crops, and livestock and poultry production have decreased modestly since 1995. Floral and nursery crops have decreased by 1.78 percent of total agriculture production in eight years.

CHECKLIST FOR STARTING A BUSINESS

Develop a Business Plan
Your nearby Small Business Development Center has been established to help business owners and aspiring entrepreneurs succeed. Their goal for new business owners is to help them do the careful planning required to minimize the risks of launching a new enterprise. The Napa Valley College Small Business Development Center provides Professional Business Counseling, Excellent Low Cost Workshops, Information & Resources and an Annual Rx for Business Program.

Napa Valley College Small Business Development Center
1556 First Street, Suite 103
Napa, CA 94559
(707) 253-3210
Fax (707) 253-3068

Join your local Chamber of Commerce
The Napa Chamber of Commerce functions as a trade association for member businesses and professionals. Included in their services to members are business education and promotion, legislative advocacy, referrals, networking opportunities, community/business events and the primary source for community information. One of the first things a new business owner should do is join the Chamber and take advantage of its networking and referral opportunities.

Napa Chamber of Commerce
1556 First Street, Suite 104
Napa, CA 94559
(707) 226-7455
Fax (707) 226-1171

Consult with Necessary Professionals
As a business owner, you will want to establish a relationship with several outside professionals. You will need to set up bookkeeping procedures, choose your legal structure, set up agreements and contracts, obtain financial information and financing, obtain insurance coverage for liability, fire, theft, workers’ compensation, etc. and find a location for your business. This guide will give you contacts in many important areas such as Accountants, Attorneys, Bankers, Insurance Agent/Brokers, Real Estate Agents, etc.

File a Fictitious Business Name Statement, if applicable, with the County Clerk
Also, publish the notice with a local newspaper and file an affidavit of publication with the County Clerk within 30 days of publication.

Napa County Clerk – Recorder
900 Coombs Street, Room 116
Napa, CA 94559
(707) 253-4246

Newspapers qualified to publish

Fictitious Business Names:
1615 Second Street
Napa, CA 94559
(707) 226-3711

1328 Main Street
St. Helena, CA 94574
(707) 963-2731

1360 Lincoln Avenue
Calistoga, CA 94515
(707) 942-4035

Published weekly each Tuesday

Box 333
3429 Broadway, suite C-1
American Canyon, CA 94503
Newsroom Tel: 707.256.2210 / Fax: 707.254.3240

Obtain a business license from the City Hall Collection Department
The City of Napa requires businesses doing business in the City to pay a business license tax. The tax on most businesses is based on gross receipts earned and must be renewed at the end of the applicable period.

City of Napa Revenue and Collections Department
955 School Street
Napa, CA 94559
(707) 257-9508

Check the parking/zoning laws and land use ordinances that might apply

Napa Planning Department,
Community Services Building
1600 First Street, Napa
(707) 257-9530

Apply for a State Employer Tax Identification Number
If your business will pay wages, contact the tax office for a State Identification number. Contact them also for disability insurance tax, state withholding tax, and unemployment insurance tax. Ask for the California Employers Tax Guide (Form #DE 44)

Tax Office
50 D Street
Santa Rosa, CA 95404
(800) 852-5711; Forms (800) 338-0505

NOTE: These are not all of the requirements necessary to start your business. For more information regarding requirements, contact the NVC-SBDC.

Napa Valley College Small Business Development Center
1556 First Street, Suite 103
Napa, CA 94559
(707) 253-3210
Fax (707) 253-3068