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The Big Picture San Diego Blog


February 2018

February 28, 2018

By Kate Gallagher, economic development coordinator 

With the largest concentration of military assets in the world and the largest federal military workforce in the country, it’s no surprise that San Diego has the 3rd highest population of veterans in the United States.

Each year, more than 20,000 Sailors and Marines stationed in San Diego leave military service, a third of whom are expected to stay in the San Diego community. Individuals transitioning to civilian life are trained, team oriented, and hardworking, but can also face challenges adjusting to life outside the military structure and regime. According to the National Veterans Transition Service Inc. (NVTSI), “81 percent of transitioning military personnel do not feel fully prepared for the process of entering the job market.”

There are countless support services to help veterans through their transition, but navigating the programs and resources can be a daunting challenge. To provide a fresh perspective and tackle the transition experience through an educational lens, the University of San Diego, in partnership with EDC, hosted its third annual Military Transition Conference. The USD Military Transition Conference focused on translating military experience into skills and knowledge applicable to a wide variety of industries, and addressed key questions military personnel and veterans have around educational benefits, job hunting, and more.

Attended by more than 75 veterans and their dependents, the conference showcased opportunities for veterans to continue meaningful, innovation-driven work in San Diego. The day kicked off with a keynote address by Maurice Wilson, president and executive director of NVTSI and creator of REBOOT, a cohort-based program designed for transitioning military to develop skills necessary for successful reintegration into civilian life. Following the keynote were a series of breakout sessions where participants could get their resumes reviewed, speak one-on-one with industry representatives, or get coached on job search strategies. Finally, a panel of veterans – representing Bank of America, SONY, Intuit, TaylorMade Golf, and Sentek Global – wrapped up the conference by sharing their transition stories into successful careers across tech, finance, and manufacturing.

With veterans representing nearly 10 percent of San Diego’s population, the development of this important pool of talent is pertinent to San Diego’s economic success. EDC will continue to support the veteran ecosystem, helping to elevate local opportunities for transitioning military. 

 

February 28, 2018

Last Friday, San Diego hosted Vancouver Mayor Gregor Robertson, as a follow up to San Diego Mayor Kevin Faulconer and WTC San Diego's "World's Greenest Cities” trade mission to Vancouver, Canada.

The day began with a public Mayoral Forum on North American Competitiveness and Sustainability, held at the University Club in downtown. Mayor Faulconer and Mayor Robertson were joined by City of Tijuana COO, Bernabe Esquer, in a moderated discussion on cross-border cooperation and city leadership in economic and environmental issues. The event was attended by more than 100 civic and business leaders.

Building on the theme of sustainability, Mayor Robertson was taken on a tour of San Diego-based Measurabl, the company responsible for the world’s fastest growing sustainability software for commercial buildings and facilities. The local startup develops cloud-based software that collects data on energy consumption, creates investment-grade sustainability reports and alerts companies to improvement opportunities for added efficiency. The company visit showcased how San Diego companies play a leading role in developing green technologies that get adopted around the world.

Mayor Robertson left that evening for the C40 Mayors Summit in Mexico City with much report on his visit to life-changing San Diego. At the forefront: San Diego’s working relationship with Tijuana can be a model for border cities like Vancouver in addressing issues that span national boundaries.

 

February 23, 2018

A world leader in 3G, 4G and 5G wireless technologies, Qualcomm is San Diego County’s largest publicly traded company. The locally-grown company has, quite literally, put the smart in our smart phones.

More than that though, Qualcomm has poured into the San Diego community. Its innovation and investment in this region has catalyzed life-changing developments in robotics, unmanned systems and mobile health, as well as inspired more than 3,300 students to pursue careers in STEM through its Thinkabit Lab.

And as Qualcomm juggles an unsolicited offer from Broadcom and a record-breaking acquisition of NXP Semiconductors, there is no denying that this San Diego tech innovator has shaped the region's economy and connected millions across the globe.

EDC recently produced an economic impact assessment of Qualcomm, based on 2017 data. The numbers:

  • In 2017, the total economic impact of Qualcomm on the San Diego region’s economy was an estimated $4.9 billion. This is equivalent to 35 Comic-Cons.
  • While Qualcomm directly employs 13,000 people locally, Qualcomm’s presence in the region impacts an estimated 36,050 jobs when considering direct, indirect and induced effects (expenditures of production, B2B spending and local spending of wages by employees and other businesses).
  • Every dollar generated directly by Qualcomm results in an increase of almost $2 in the San Diego region’s GDP.
  • In 2017, Qualcomm impacted approximately $3.4 billion in wages in the regional economy.
  • In 2017, Qualcomm impacted an estimated $7.9 billion in economic activity (output).

EDC will release the full economic impact assessment on Qualcomm in April. Stay tuned.

Follow along and share your support with #QualCOMMUNITY.

 

February 21, 2018

Recovering from a decrease in employment during Q3 2017, San Diego, and the overwhelming majority of the most populous metros, experienced an increase in employment during Q4 2017. The region’s total nonfarm employment grew 22,100, or 1.5 percent during the quarter. Compared to a year ago, nonfarm employment was up 21,100, or 1.5 percent.

Meanwhile, San Diego’s unemployment rate was 3.3 percent in Q4, the lowest the region has seen in the last 17 years and down from 4.1 percent in Q3.

Key findings from the Quarterly Economic Snapshot:

  • San Diego closed Q4 2017 with an unemployment rate of 3.3 percent, the 7th lowest among top U.S. metros and below the state rate of 4.2 percent.
  • With the holiday season in full bloom, the retail sector continued to grow, adding 7,500 jobs in Q4. Other strong contributors to the quarterly employment growth were professional, scientific, and technical services and state and local government, together adding 13,200 jobs.
  • The median home price rose slightly from the previous quarter, and is now up 7.4 percent compared to a year ago.
  • VC dollars in the region increased 33 percent compared to a year ago.

The Quarterly Economic Snapshot analyzes key economic indicators that are important to understanding the regional economy and the region’s standing relative to the 25 most populous metropolitan areas in the U.S. This releases includes data from October to December (Q4) 2017.

Read it here, and see our research center for more.

February 15, 2018

Today, EDC launched a data-driven initiative to drive economic growth and inclusion in the region. Catalyzed by San Diego’s participation in the Brookings Institution’s Metropolitan Policy Program learning lab in 2017, EDC released research that highlights the region’s economic pain points and necessity for an employer-led approach to tackling inclusivity issues.

Despite record-low unemployment and a renowned innovation ecosystem, San Diego has an inclusion problem that cannot be ignored,” said Mark Cafferty, president and CEO, San Diego Regional EDC. “Small businesses cannot compete with larger corporations, while one million people cannot afford to live here. This initiative is a call to action for San Diego’s employers – we must come together to bridge the gaps in our economy.”

While the rise of the innovation economy has created wealth and opportunity across the region, it has also widened economic inequalities. If San Diego does not change its status quo, the region will lose employees and companies to other regions. 

Key facts:

With the combination of a high cost of living, low educational attainment in our fastest growing population and a small business-centric economy that struggles to pay competitive wages, it is imperative that San Diego employers take action to promote economic inclusion.

Convened by EDC, a Steering Committee of local employers will work to create an actionable platform to achieve three goals: close the minority achievement gap; equip small businesses to compete; and address the affordability crisis. The committee consists of nearly 40 local employers including Northrop Grumman, Solar Turbines, Sempra, Thermo Fisher Scientific, San Diego Padres and more.

Inclusion is not a philanthropy issue. This is about economic competitiveness, and San Diego’s employers must lead the charge in addressing inequity in our local workforce, said Janice Brown, founder and owner, Brown Law Group, and incoming board chair, San Diego Regional EDC. “But if any region can change and reinvent itself, it’s this one.” 

If the region intends to compete in the global market, employers and economic development leaders must work to ensure all workers have equal opportunity to thrive. While talent attraction efforts are necessary in an increasingly global economy, San Diego must ensure its future workforce is prepared for jobs in the innovation economy and recognize opportunity within its local talent pool.

To view the research summary, click here.

Over the next year, EDC and the Steering Committee will produce ongoing research and develop actionable recommendations to inclusive economic development in San Diego that will be updated on sandiegobusiness.org/inclusivegrowth.

The initiative launched at an event hosted by EDC at the Jackie Robinson YMCA, with special guest Amy Liu, vice president and director of the Metropolitan Policy Program, at the Brookings Institution.

Other partners and organizations are making progress as well. On February 27, National University and the San Diego Workforce Partnership are hosting Dr. Raj Chetty, leading impact economist from Stanford University, and the author of research that inspired much of the focus on inclusion, nationally.  He will discuss social mobility markers and the link between mobility and economic growth. To RSVP for the event, click here.

 

February 14, 2018

Last week, President Trump signed a two-year budget deal that included a hike in the debt ceiling and agreements to raise spending caps for domestic and defense programs.

For San Diego, a community where 20 percent of our GRP is tied to the military, this bill provides some stability and relief from the constant threat of continuing resolutions and sequester.

In order to better understand how fluctuations in defense spending impact our regional economy, EDC has released “Mapping San Diego’s Defense Ecosystem,” as well as a data visualization tool at SanDiego.DoDspend.com. This is the first of its kind regional analysis that focuses on the industrial composition of the defense supply chain and quantifies the number of firms and jobs that are impacted by defense spending. This project was executed as part of phase one of Propel San Diego, a Department of Defense funded grant initiative awarded to the City of San Diego.  

Specifically, the web tool provides deal flow information at the zip code level and by industry across the county. Why this matters: the 2019 budget includes two Fleet Replenishment Oilers (T-AO) priced at $1.1 billion. These ships will likely be built by General Dynamics NASSCO here in San Diego. While those contracts are awarded over a period time, by using this new tool, users can see that this funding will have a direct impact in creating more than 1,000 jobs in the shipbuilding and repair industry.

Key study findings include:

  • San Diego is the second largest recipient of defense procurement dollars in the U.S. 
  • A strong network of suppliers and access to customers are key reasons that 71 percent of firms have a favorable view of San Diego as a place to do business.
  • Defense contractor jobs have grown 6.3 percent over the last three years, and are expected to grow another 9.3 percent over the next year.
  • Since 2012, the majority of contract dollars received by the region were awarded by the Department of the Navy, each year awarding between 44 and 55 percent of total awards.
  • The majority of contract dollars were awarded to companies in the manufacturing industry, each year receiving anywhere between 47 and 68 percent of total contract dollars.


These resources provide companies, city planners, workforce agencies and economic development organizations better insights into how legislation like the bill signed into law last week can impact the San Diego community. The data has the potential to help companies prepare for new market opportunities and help communities prepare for changes in workforce demands, as has helped inform how EDC can better prioritize our limited resources in support of the region’s defense industry.

Following the successful execution of Propel San Diego’s phase one, the City of San Diego has been awarded a phase two grant for an additional $1.7 million. For more information, visit sdmac.org/propel.

Read the full study here.

 

February 9, 2018

On January 24, WTC San Diego partnered with the U.S. Department of Commerce to host a roundtable discussion on data protection and privacy regulation.

Beginning in May 2018, virtually all U.S. exporters to Europe will need to be compliant with the new EU General Data Protection Regulations (GDPR). Regardless of the company, industry or sales market, there will be new requirements and stiff fines for companies in the case of non-compliance.

At this roundtable, Nasreen Djouini, policy advisor at the U.S. Department of Commerce, discussed important developments in the GDPR and introduced the EU-Swiss-U.S. Privacy Shield Framework – a mechanism that provides companies on both sides of the Atlantic a way to comply with data protection requirements when transferring personal data in support of transatlantic commerce.

Djouini also advised on the Cross-Border Privacy Rules (CBPR) System developed by Asia-Pacific Economic Cooperation (APEC). The CBPR is a mechanism that helps to bridge privacy regulation differences by providing a single framework for the exchange of personal information among participating economies in the APEC region.

Hosted by CBRE, the event was attended by more than 30 San Diego business executives from companies either planning to, or currently, conducting business overseas.