Big Picture San Diego Blog
March 17, 2017
Today, San Diego Mayor Faulconer announced The City of San Diego has been awarded a $1.6 million grant from the Department of Defense’s Office of Economic Adjustment to support the resiliency and growth of local defense contractors.
The City of San Diego and key partners, including San Diego Regional EDC, County of San Diego, San Diego Military Advisory Council, East County Economic Development Corporation and South County Economic Development Corporation – collectively named Propel San Diego – will deploy programs to support the region’s defense ecosystem.
Leveraging the grant, the Propel San Diego team will concentrate on economic development strategies for companies expanding in or at risk of leaving the region. As part of this work, Propel San Diego will create a database of all defense firms in San Diego County and deploy an interactive tool to explain and model changes in defense spending activity.
Home to the largest concentration of military assets in the world, San Diego’s economy is inextricably linked to the national defense ecosystem. According to SDMAC, the total economic impact of the defense industry is nearly $45 billion.
Defense-related organizations are as diverse as San Diego’s key industries and include companies specializing in aerospace, maritime, unmanned vehicles, robotics, autonomous systems, cybersecurity, advanced manufacturing and more.
Leveraging DoD support, Propel San Diego programs aim to help San Diego retain highly-skilled talent and create increased stability for defense companies in an increasingly uncertain defense budget world.
Propel San Diego sentiments:
“San Diego is proud of its military roots and our defense industry plays an integral role in our local economy,” Mayor Faulconer said. “This grant will help support our local defense contractors so they can keep creating the kind of good-paying jobs San Diegans deserve.”
“From Qualcomm’s mobile technology to Cubic’s smart card systems and ViaSat’s broadband satellites, some of the world’s most game-changing technology is rooted in San Diego’s defense industry. Supporting the commercialization and visibility of the region’s defense-related firms, small and large, is critical to economic growth. The OEA grant and Propel San Diego collaborative enables us to do just that,” said Mark Cafferty, president and CEO of San Diego Regional EDC.
“The Propel San Diego initiative and OEA funding will enable a complete technology refresh of East County Economic Development Council‘s Connectory.com Network, an online resource that contains detailed capabilities profiles of industrial and technology companies across all industries,” said Joe Mackey, chair of the East County EDC board and CEO of XL Staffing and XL Security. “An upgraded Connectory that takes advantage of big data analytics will allow Propel San Diego to understand and track the wide, deep and diverse defense supply chain resident in the San Diego region, now and into the future.”
“SDMAC is honored and excited to be a recipient of the OEA grant. We look forward to playing a key role in facilitating the exchange of contractual information that will keep business in the San Diego region,” said Randy Bogle, executive director of San Diego Military Advisory Council.
For more information, visit OEA.gov.
March 8, 2017
In conjunction with AECOM, EDC released an economic impact assessment of FS Investors’ proposed SoccerCity development. The analysis estimates the potential economic and fiscal impacts of the large mixed-use development, which is planned to include a 30,000 seat Major League Soccer stadium, approximately 4,800 residential units, more than 2 million sq. ft. of office, 740,000 sq. ft. of retail space, and 55 acres of open space and park land. This development would be located at the current Qualcomm stadium site in San Diego’s Mission Valley.
Economic impacts of development proposal have been estimated for both the City of San Diego and the County of San Diego. This includes impacts from construction and impacts from operations at a future year at full buildout and stable occupancy. Additionally, annual fiscal impacts to the general fund have been estimated for the City of San Diego from operations of the proposed development at a future year at full buildout and stable occupancy.
Construction Economic Impacts to the County of San Diego
Annual Operations Economic Impacts for the County of San Diego
The above information does not imply EDC’s endorsement of the SoccerCity SD proposal and should not be taken as such.
March 3, 2017
Understanding our economy begins with strong data. Lucky for us, Feb/March means lots of it.
A little about the research products released this week:
Quarterly Economic Snapshot: February
Every quarter, San Diego Regional EDC analyzes key economic indicators that are important to understanding the region's standing relative to the 25 most populous metropolitan areas in the U.S. The Economic Snapshot covers data from October to December 2016 (Q4), the most recent quarter available, in regard to employment, real estate and venture capital.
Release time: Data from the previous quarter is available at the end of the second month of the current quarter (e.g. data from Q4 2016 is released late Feb. 2017; data from Q12017 will be released late May 2017)
San Diego's Economic Pulse: March
Monthly, the California Employment Development Department releases countywide employment and unemployment data. However, we know unemployment is only a small sliver of understanding our economy. EDC supplements this report by adding information on who's hiring, business establisments and job postings.
Release time: The California Employment Development Department typically releases the previous months data on the third Friday of every month (e.g. Data from April 2017 will be release on May 19, 2017). However, the first few months of the year are on a revised schedule, as January is subjected to seasonal changes as some service sectors wind down from the holidays and other data is being adjusted from the previous year. Therefore, January's data was released on March 3, 2017.
March 1, 2017
Authored by Nathan Loveland, economic development intern, PLNU student and U.S. Coast Guard veteran
Because San Diego is home to the largest federal military workforce in the country, it is critical that we routinely make efforts to assist service members taking the leap of faith to transition into civilian life. That’s why in February, EDC partnered with University of San Diego’s Graduate School of Business to host the military transition event, Link2 Defense. The event served to connect transitioning military members to local defense contractors and shed light on the job opportunities available across San Diego.
Representatives from local companies General Dynamics NASSCO, ESET, ViaSat, Qualcomm, Sentek, Northrop Grumman and Cubic shared information on company-specific programming for veterans, while some – veterans themselves – shared insight about their transition into civilian careers. Moderated by USD School of Business Executive Director Stath Karras and zero8hundred CEO Sean Mahoney, the back-to-back panel discussions addressed topics including resume building, job hunting and converting military specific jobs/skills into civilian equivalent work.
As an economics student at PLNU, an intern for EDC and a U.S. Coast Guard veteran, I attended Link2 Defense to continue to hone in on my skills as I further my education and pursue a civilian career.
The event was top notch. Representatives from USD gave valuable insight on how maximize VA education benefits in multiple ways. In addition to the panel sessions, the event included small group breakout sessions covering topics like resume building hosted by Manpower, techniques for job hunting and salary negotiation. I attended the salary negotiations seminar and look forward to using these tactics in my future job hunt – Look out, future employer.
After attending Link2, I feel extremely confident in my decision to transition from the military to purse my education and career in the San Diego region. I feel the opportunities provided to San Diego’s veterans are superior in comparison to other cities I’ve lived.
February 28, 2017
Every quarter, San Diego Regional EDC analyzes key economic indicators that are important to understanding the region's standing relative to the 25 most populous metropolitan areas in the U.S.
The Economic Snapshot
covers data from October to December 2016 (Q4), the most recent quarter available, in regard to employment, real estate and venture capital.
The San Diego region had the 14th lowest unemployment rate amongst the top 25 metros. This ranking is down four spots from Q2 2016.
The region’s unemployment rate of 4.2 percent continues to be lower than the national and state rates of 4.5 and 5.0 percent, respectively.
The region’s unemployment rate decreased by 0.5 percentage points between Q3 and Q4 2016, the 9th largest decrease among major metros.
Year-over-year, the region has added 28,900 jobs - a 2.0 percent increase.
With the exception of manufacturing, all of the region’s sectors experienced year-over-year growth. Leading the way was real estate and rental leasing which increased by 6.1 percent or 1,700 jobs.
The largest venture capital investments were in disease diagnosis, internet software and services and biotechnology companies. The top two deals accounted for 44.1 percent of the region’s total investment for the quarter, or $79 million.
Check out the full Quarterly Economic Snapshot here.
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February 22, 2017
The largest city in the state of Baja California, Tijuana sits at one of busiest land border crossings in the world. Together with San Diego, Tijuana is part of a dynamic cross-border metropolis where deep economic and cultural linkages result in the creation of value, jobs and exports. The unique dynamics of this mega-region provide local companies with an important comparative advantage in the global economy. Since April 2016, EDC has participated in a greater initiative to streamline cross-border economic development efforts by refining our approach to servicing corporate retention, expansion and attraction interests. This “bilateral cities exchange” called for a deeper understanding of Tijuana’s economy as a critical component of economic growth throughout the region.
As such, EDC partnered with UC San Diego’s Center for US-Mexican Studies to create an economic overview of Tijuana
– a seven-page document that provides a data-driven summary of Tijuana’s economic drivers, talent, quality of life, global connectivity and cost. This resource will help inform clients and partners of Tijuana’s diversifying economy while touching on the unique benefits of doing business in our binational mega-region.
Economy: Tijuana is a medical device manufacturing powerhouse; 97 companies employ 21,000 workers who produced $600M worth of product in 2014.
In 2015, Tijuana graduated more than 8,000 university-level students – 29 percent of which received STEM degrees.
Tijuana ranked #8 on the New York Times' 2017 list of must-visit destinations around the world.
Between 2012 and 2016, FDI in Baja totaled $5.6 billion – 63 percent of which came from the U.S. Other sources of FDI include South Korea, the Netherlands, Japan and Spain.
When compared to China, Mexico is estimated to have 13 percent lower labor costs and an overall average direct manufacturing cost that is four percentage points cheaper than China.
February 17, 2017
Like CES for maritime… San Diego welcomed the world's leading marine science and ocean technology exhibition and conference this week. Oceanology International (OI) – launched in London in 1969 – kicked off its first North American conference at the San Diego Convention Center, bringing together more than 1,500 attendees and 150 maritime technology companies from more than 13 countries. Led by The Maritime Alliance and with the support of EDC, OI will be a biennial event in San Diego, switching to London in off-years.
The tradeshow connected companies and consumers from across the world, and served to help improve strategies for developing, protecting and operating in the world’s oceans.
Why San Diego?
With 70 miles of coastline, a concentrated military presence and innovation-driven technology companies, San Diego has emerged as a hub for maritime technology. Driving this point home, local companies large and small set up shop at Oceanology International North America
– from Ocean Aero with its unmanned surface and underwater vehicles to SonTek with its underwater sensors, or Planck Aerosystems that can land an aerial drone autonomously on a moving vessel. Attendees got first-hand access to current and impending innovation in maritime and bluetech.
February 16, 2017
EDC investor and recreational sporting events organizer VAVi Sport & Social Club was looking to make a big splash at its first major international competition: a 20,000-person obstacle course and race in Sydney, Australia. Little did VAVi know its shipment of inflatable obstacles would present its own set of obstacles.
The company loaded its $1 million worth of goods into shipping containers, set to arrive a month before the event. Complications arose in South Korea when VAVi’s equipment was unloaded and seemingly forgotten about on storage docks. This is when EDC came in…
Having been a part of the 2015 global export assistance program MetroConnect
, VAVi CEO Steve Stoloff called on EDC and the organization’s World Trade Center team to leverage its international network for support. EDC staff contacted the U.S. Commercial Service – the trade promotion arm of the U.S. Department of Commerce – to ensure the forgotten equipment would be loaded onto another boat bound for Australia. Staff also reached out to contacts in Sydney to coordinate on-the-ground transportation from Brisbane to Sydney, since this new boat would no longer be porting in Sydney.
And it didn’t stop there. EDC’s board of directors stepped up to the challenge. Helping recover some of the money lost in the fuss, Linde Hotchkiss, managing partner at the global risk advisory and insurance solutions firm Willis Towers Watson, counseled VAVi on the qualms of international shipping and helped facilitate an insurance claim.
With all hands on deck, VAVi received its shipment and salvaged the prominent event – saving one-fifth of the company’s yearly projected sales. This is not simply a company story of overcoming obstacles in going global, but of the collaborative nature of San Diego’s business community. This is who San Diego is.
February 14, 2017
This weekend, years of hard work came to life for BAE Systems and partners across the state as the Barrio Logan-based shipyard cut the ribbon on its new dry dock, the Pride of California.
At 950 feet long and capable of lifting nearly 55,000 tons, the dry dock is the largest in California and the third largest in the nation. Used for ship repair and construction, the dry dock is flooded to allow watercraft to float in and then drained so watercraft can be set on a dry platform for work.
EDC board member and BAE Vice President Bob Koerber joined Congressman Scott Peters, Congressman Duncan Hunter, Port Chairman Robert “Dukie” Valderrama and an audience of more than 150 senior military personnel for the event inside the dry dock’s 100-foot walls. The dry dock was shipped across the Pacific Ocean on a 7,000 mile, 60-day journey. It represents approximately $100 million in infrastructure investment from BAE to increase the shipyard's capacity to meet the growing needs of the U.S. Navy.
BAE currently employs 2,000 workers in San Diego, with the dry dock anticipated to add more jobs over the next several years. BAE is a critical pillar of San Diego’s working waterfront, where the shipbuilding and ship repair industry employs approximately 12,000 San Diegans and has an economic impact of $1.75 billion annually throughout the county.
EDC was proud to support this monumental engineering project by working directly with BAE to craft a competitive application for the Cal Competes Tax Credit program, which they ultimately won. Awarded in 2015, BAE's $1.55 million tax credit supports the shipyards ability to remain competitive and continue to invest in their yard and workforce.
With the rebalance to the Pacific, the U.S. Navy’s presence in San Diego will continue to grow dramatically over the next several years. The challenges associated with this growth include the ability for local industry to service, build, upgrade and repair the equipment for the influx of U.S. Navy vessels. With President Trump calling for the Navy to increase its current fleet to 350 ships, San Diego will be on the receiving end of increased spending.
February 9, 2017
“If you build it, they will come…” This mantra was true of the Field of Dreams, and now of San Diego’s burgeoning tech ecosystem.
Together with 35 of San Diego's best and biggest tech companies, Innovate78 representatives joined the San Diego Venture Group's Tacos + Tech in Silicon Valley last week. The event – appropriately held at the Computer History Museum – played host to more than 700 curious Bay Area engineers and programmers, and served to showcase the high-tech jobs and opportunities available across San Diego.
With a special focus on attracting Bay Area engineers, North County companies like ViaSat, Thermo Fisher Scientific and Verve, as well as other San Diego companies like Illumina, Dexcom, ResMed, Qualcomm, Human Longevity, Cubic, Hired and LoanHero set up shop at the job fair-like event. Company recruiters spoke to San Diego as the alternative to Northern California’s congested traffic, high cost of living, hyper-competitive workforce culture and other issues plaguing the region.
As a proud sponsor, the EDC-led economic development initiative Innovate78 represented North County at a booth, with leaders from the five cities along the 78 Corridor – Carlsbad, Escondido, Oceanside, San Marcos and Vista – at the helm. Conversations with attendees ranged from North County housing costs to the growing tech sector, to the many breweries that make up the ‘Hops Highway’ – one of the primary booths highlighting the region's lifestyle.
While many attendees admitted connection to San Diego through family, school or dream vacations, it seemed as though the region’s tech ecosystem – which employs nearly 69,000 people – has flown under the radar. Tacos + Tech provided a platform for some of San Diego County’s top employers and innovators to attract Bay Area talent through simply sharing San Diego's reality: a broad diversity of career opportunity mixed with a top-tier quality of life (and, of course, tacos and beer). For decades, San Diego has built this ecosystem, and now…the talent will most certainly come.
Tacos + Tech comes on the heels of SDVG's Beachhead launch, a coworking space for San Diego entrepreneurs working out of Silicon Valley.