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The Big Picture San Diego Blog


Big Picture San Diego Blog

June 16, 2017

EDC is proud to take part in the BIO International Convention, the largest life sciences convention in the world, hosted right here in San Diego from June 19-22.
 
Join us Monday, June 19 as we celebrate the region's ever-growing life sciences cluster. Here's how:
  • 1:00 - 2:15pm: Panel event for the launch of EDC's economic impact report on San Diego's genomics industry. Details here.*
  • 5:00 - 7:00pm: San Diego Innovation Council Reception. Register here.
 
*must be registered for BIO to attend.
June 5, 2017

San Diego knows how to build companies that the rest of the world values. Case in point: Last month, El-Cajon based Calbiotech, a diagnostics company, was acquired by ERBA Mannheim, a medical device manufacturer based in Mannheim, Germany.

In 2016, Calbiotech was part of MetroConnect, World Trade Center San Diego’s flagship export assistance program. As part of the 2016 cohort, Calbiotech received financial and programmatic resources to support their plans to expand internationally.

Calbiotech has a global footprint of more than 200 products, which are distributed to 60 countries worldwide. With the expansion announcement, Calbiotech will maintain its footprint in San Diego because of the access to key reference labs and other biotech customers throughout the region. It will also serve as ERBA’s hub and gateway to the Latin American market.

The company was referred to the MetroConnect program by Jo Marie Diamond, head of the San Diego East County Economic Development Council. “I’ve been working with Calbiotech for years,” said Diamond, “They are representative of everything positive about the San Diego economy – a focus on innovative products, a strong sense of commitment to the community, and an incredibly grounded and highly diverse team.

We’re excited to hear of Calbiotech’s next step and were very impressed with the company during their time in MetroConnect”, said Lauren Lindner, director of World Trade Center San Diego who oversees the MetroConnect Program. “Their team was incredibly savvy in their rollout to international markets, and we’re not surprised to see that a leader like ERBA took notice.”

San Diego, and specifically East County, have been an integral part of the Calbiotech success story,” said David Barka, Vice President. “San Diego is home to companies that are leading the world in innovation in science and medicine. Being in San Diego gave us access to an amazing talent pool that really helped our company grow.”

The acquisition will help Calbiotech increase access to markets across Europe and Asia add to EBRA’s extensive and far-ranging product portfolio.

M&A is an important growth strategy and capital source for San Diego companies. According to a 2016 EDC study, nearly 70 percent of San Diego’s capital in 2015 came through M&A.

Calbiotech’s acquisition mirrors the region’s strengthening ties with Germany, including the announcement of Condor’s new direct flight to Frankfurt, Germany, which began operation on Monday, May 1.

Financial details of the acquisition were not disclosed.

Applications for the MetroConnect 2017 round are now open. To apply, click here.

June 1, 2017
Calling all companies looking to go global...
 
MetroConnect, World Trade Center San Diego’s flagship export assistance program, is now accepting applications for its 2017 cohort. 
 
Made possible through a grant provided by JPMorgan Chase & Co., small to mid-sized companies in San Diego can apply for a $10,000 grant and programmatic services to assist with international expansion efforts.
 
Fifteen local companies will be selected. Apply now through June 30, 2017.
To date, the 30 companies that have gone through the MetroConnect program (2015-2016) have collectively generated $10.5 million in new export sales, signed more than 70 new contracts, added 50 new jobs to the region, set up nine new overseas facilities and seen three successful company exits.
 
Past participants include Calbiotech, Rough Draft Brewing, Deering Banjo Company, Cypher Genomics (now part of Human Longevity Inc.), ROBO 3D and more.
 
Learn more at metroconnectsd.org and apply here
 
 
May 31, 2017

According to EDC’s newly released Quarterly Economic Snapshot, the region added 29,600 jobs year-over-year, a 2.1 percent increase in total employment since Q1 2016. However, the San Diego region saw a quarterly decline of 10,900 jobs, primarily due to seasonal workers transitioning out of retail following the holiday season.

Meanwhile, San Diego’s unemployment rate rose by 0.1 percentage points during Q1 2017, but is 0.7 percentage points lower than the same period a year ago.

Key findings from the snapshot:

  • San Diego closed Q1 2017 with an unemployment rate of 4.2 percent, the 14th lowest among top U.S. metros and below the nation’s and state’s rates of 4.6 and 5.1, respectively.
  • The construction sector saw the largest quarterly and year-over-year growth in employment, adding 2,800 and 5,700 jobs, respectively – indicative of the overall health of the economy.
  • The median home price fell 0.7 percent from the previous quarter, but is still up 5 percent compared to a year ago.
  • VC dollars in the region increased 15.2 percent compared to the previous quarter.

Kirby Brady, San Diego Regional EDC research director, explains, “A small uptick in unemployment and slowing home price appreciation are to be expected in the winter months. However, when you look at the overall trends, San Diego appears to be reaching full employment and real estate remains a seller’s market. If these trends continue, we’ll start to see wages rise.”

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 January to March (Q1) 2017. 

Read it here.

May 19, 2017

"Job postings aren't staying up long, and unemployment is near record lows. I expect wages to start increasing as we approach full employment." - Phil Blair, President and CEO, Manpower

 
Each month the California Employment Development Department (EDD) releases unemployment data for the prior month. This edition of San Diego’s Economic Pulse covers April data, including unemployment data, new business establishments, job postings and who’s hiring in San Diego.
 
Highlights include:
  • The unemployment rate dropped 0.4 percentage points to 3.8 percent in April, the lowest seen since December 2006.
  • Unemployment declined in 18 of 19 jurisdictions. Only Del Mar was unchanged, with an unemployment rate of virtually zero.
  • Construction job growth accelerated in April, up 8.5 percent compared to a year ago.
     
 

 

May 11, 2017
This week, World Trade Center San Diego and UC San Diego’s School of Global Policy and Strategy (GPS) welcomed Alan Beebe, President of the American Chamber of Commerce in China, for the third and final Global Forum program of the year. The event was held in the Harbor View room at Tom Ham’s Lighthouse.
 
The presentation focused on the findings of the 2017 China Business Climate Survey Report, released by the American Chamber of Commerce. Alan Beebe provided insight on the obstacles American companies face in China today, and how these obstacles are leading to adjustments in strategy for the future. Following the presentation, Mr. Beebe was joined by Dr. Karl Gerth, Chinese Studies program director at UC San Diego for a moderated Q&A session.
 
Sponsored by Bank of America, the Global Forum initiative offers GPS’s high-profile, visiting scholars a chance to address the region’s local business community.
 
May 3, 2017

At 6pm on Monday, May 1, San Diego greeted Condor Airlines' first ever flight from Frankfurt, Germany. Condor begins seasonal, nonstop service between San Diego and Frankfurt with up to three flights weekly.
 
“Germany is one of San Diego’s most important foreign markets. By providing nonstop service to Frankfurt from San Diego, we’re opening new doors to global markets that will attract exports and lucrative foreign investment for the region,” said City of San Diego Mayor Kevin Faulconer.
 
As a key global partner to the San Diego region, Germany currently ranks fourth in terms of foreign employment (2015) and seventh in terms of total exports from San Diego (2013). 
 
Ringing in this new flight, more than 100 San Diego business and tourism officials joined WTC San Diego at Stone Brewing World Bistro & Gardens - Liberty Station for a kickoff event this Tuesday. Attendees included San Diego Mayor Kevin Faulconer; Jens Boyd, group head of long-haul, Condor Airlines; April Boling, board chairman, San Diego County Regional Airport Authority; Greg Koch, founder and Chairman, Stone Brewing; and Consul General Hans Jörg Neumann, Consulate General Germany Los Angeles. Stone Brewing Co is the only U.S. brewer to fully own and operate a brewery in Europe. 
 
Besides Frankfurt, the service will provide travelers with convenient one-stop access to European destinations such as Paris, Vienna, Prague, Venice, Berlin, Rome, Zagreb and many more.
 
This year, San Diego International Airport will double its intercontinental routes. In addition to its current service to Tokyo, London and the new route to Frankfurt, it will also add a new flight to Zurich, Switzerland later this year. 
 
May 2, 2017

This week, we sat down with Dino D'Auria, executive vice president and chief banking officer at Silvergate Bank. One of EDC's newest investors, Silvergate Bank is a San Diego-based community bank that serves individuals and businesses across industries including manufacturing, defense, property management, real estate investment and many more.

 

1) Please tell us what your company/organization does.

Silvergate Bank has four main lines of business: Mortgage Warehouse Lending, Correspondent Mortgage Lending, Real Estate Construction and Investor Financing, and – my division – Business Lending and our Branch network.  We also have an on-line portal that serves our Fintech clients for Treasury Management services.

In our Business Banking group, we primarily serve growing, privately held companies or Community Service Organizations (Not for Profit) by helping them position their balance sheets for growth and assist them in efficient and cost effective cash management.

Many of our clients come to us after having trouble working with larger banks, because they did not fit.  We take the time to teach clients how to properly report their financial statements and communicate in “banker-speak” to enable them to get the financial services needed to grow.  Some examples of our work:

  • A privately held company that rents film production equipment was piecing together many small loans at typically high rates of interest to finance their 25 percent year-over-year growth. Silvergate Bank was able to consolidate these loans into two loans at a more favorable interest rate and reduce the monthly debt service by 25 percent. This allowed more working capital to be preserved in the company, which can be leveraged to support his continued growth.
  • A privately held company that sells packaging material was using UPS to finance its shipments of product.  By coaching the company on maintaining supporting net worth in his company, we were able to replace this expensive funding source with a Formula Line of Credit cutting his financing costs by 50 percent and setting him up to grow his business.

2) What are some advantages to being located/doing business in San Diego?

San Diego is a close-knit business community. Our team is able to bring other professionals as resources for our clients through our networking activities.  The economy is diverse and provides a stable base for entrepreneurs to grow their companies and have the confidence that things will be good in the future.

3) San Diego is full of dynamic companies, firms and service providers influencing global trends and innovation. Pick another San Diego company that is at the top of its game.

Gap Intelligence is a dynamic marketing research company that is very progressive in using technology and creating a positive dynamic culture. 

4) What do you anticipate for your company in five years? What do you anticipate for San Diego?

We expect to grow Business Banking to be an equal share of our balance sheet as our other lines of business.  We also plan to expand into Orange County, Los Angeles and the Inland Empire so there are plenty of growth opportunities at the bank.

San Diego will continue to positively progress as it has over the last 20 years.  

April 26, 2017

 
The world is changing – for better and for worse. In San Diego, we know we can change it for the better and enjoy life in the process.
 
It's time we took our story into our hands. We're not Silicon Valley. We're not Los Angeles. And we're not Denver, Austin or New York. We're San Diego...and there's never been a better time to own our story.
 
Introducing San Diego: Life. Changing.: a campaign about real people who have chosen San Diego and have changed the world and upgraded their lives along the way. This is #SDLifeChanging. See the details at SanDiegoLifeChanging.org.
 

And we need YOU to help us tell the world the real San Diego story.

April 21, 2017

“Unemployment rates are stabilizing across the region, as jobs are being filled more quickly and new businesses are coming online at the fastest rate we’ve seen in a year. Some of our biggest and best paying employers are those who are looking to hire right now.” - Phil Blair, President and CEO, Manpower
 
Each month the California Employment Development Department (EDD) releases unemployment data for the prior month. This edition of San Diego’s Economic Pulse covers March data, including unemployment data, new business establishments, job postings and who’s hiring in San Diego.
 
Highlights include:
  • With a total of 4,601 new establishments, March saw the largest number of new establishments in the past 12 months.
  • San Diego’s unemployment rate of 4.2 continues to be lower than both the California rate of 5.1 percent and the national rate of 4.6 percent.
  • Compared to a year ago, total nonfarm employment is up 29,600, or 2.1 percent, with 22,900 of those jobs coming from the private sector.