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Big Picture San Diego Blog

November 7, 2014

Mayor Faulconer and TSRI Acting President & CEO James Paulson

With more than 80 research institutes throughout the region, San Diego is a breeding ground for innovative companies and institutes that solve some of the world’s toughest challenges.  Perhaps no local institution has captured the region’s innovative spirit more than The Scripps Research Institute (TSRI).

 They are on the forefront of controlling a global epidemic. Currently, TSRI Professor Erica Ollmann Saphire is advancing new Ebola therapies and has already contributed to the development of ZMapp, the Ebola therapy from San Diego-based Mapp Pharmaceuticals, given to the first two U.S. missionaries who survived infection.  Dr. Saphire has launched a crowdfunding campaign to find new therapies for the viral disease. TSRI Professor Dennis Burton and his colleagues are also taking a global leadership role in the development of a vaccine to combat HIV/AIDS, focusing on understanding rare antibodies that are effective in neutralizing the virus.

As part of his commitment to raising global awareness of the region’s innovation economy, City of San Diego Mayor Kevin Faulconer has partnered with EDC to tour some of San Diego’s most cutting-edge businesses and institutes, including TSRI last Friday.  The Mayor also visited General Dynamics NASSCO and SPAWAR earlier this year.

As of Tuesday, Dr. Saphire’s crowdfunding campaign has exceeded its $100,000 goal, meaning more innovation will take place right here, in San Diego.  


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November 5, 2014

AMP SoCal

San Diego’s aerospace and defense industries play a critical role in our regional economy.  To further support these key industries, San Diego Regional EDC joined in partnership with 86 dedicated organizations to form the AMP SoCal Coalition to compete for the new federal designation known as the Investment in Manufacturing Community Partnership (IMCP). The AMP SoCal coalition, which stretches from San Diego through Ventura County, was one of only 12 regions across the United States that received this new special grant status from the U.S. Economic Development Administration.

The IMCP designation allows 11 federal agencies with $1.3 billion in economic development funds to use the designees’ plans to make targeted investments in demonstrably strong public-private partnerships to strengthen regional manufacturing. Essentially, this opens up AMP SoCal and the 11 other IMCP designees to vie for a piece of this $1.3 billion funding.

To ensure the AMP SoCal Coalition puts its best foot forward, San Diego Regional EDC, along with East County EDC President Jo Marie Diamond and other members of AMP SoCal Coalition, participated in a two day conference in Washington D.C. last week. This conference was designed to provide best practices insights for regions that won IMCP designations, while giving attendees direct access to the federal agencies participating in the program including the Department of Defense, Environmental Protection Agency, Small Business Administration, and Department of Transportation.

In December, San Diego will be hosting AMP SoCal’s Executive Board meeting to review the IMCP conference and continue to identify regional opportunities to leverage the IMCP status to compete for locally impactful grants.

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November 4, 2014

RA Capital Advisors

San Diego builds products and innovations that bring value to the rest of the world. However, San Diego’s story is a bit different from other regions across the country. Whereas many regions rely on a few large companies for the majority of their economic growth, San Diego’s story is one of building innovative, highly-valued companies from the ground up.

Companies like RA Capital Advisors get that. Having served the San Diego business community for more than 25 years, they have worked with clients across many of San Diego’s high-growth industries, including defense, energy, and manufacturing.

This week, we sat down with RA Capital Advisors' Joel Reed to hear more about the competitive advantages of doing business in the region.

1.  Tell us about RA Capital Advisors
RA Capital is a boutique investment bank providing financial advisory services to businesses both domestically and internationally.  We focus on mergers, acquisitions dispositions and private financings, and have completed over $60 billion in transactions since founding our business in the San Diego area over 25 years ago. 

RA Capital has handled many large and high profile transactions, including helping our clients:  use innovative technology to create substantial energy savings for commercial aircraft, combine their businesses into one of America's premier defense technology companies, finance construction of the largest fleet of ocean-going container ships, and realize many other entrepreneurial dreams. We bring that same experience to helping small and middle market business owners successfully build their companies, and realize their value when the time is right.

2.  What are some advantages to doing business in SD?
Why RA Capital Chose SDSan Diego is a vibrant center for innovation, technology and entrepreneurship.  Being in San Diego allows you to see great companies grow from the ground up.  We have enjoyed working with companies as they grow new technologies or business ideas into successful companies like Sirius XM Radio, Sandel Avionics and The Titan Corporation. Many of our diverse clients have focused on specialized manufacturing, national security, aerospace, energy, and healthcare.  San Diego offers these employers the opportunity to create challenging and rewarding jobs in a city with an outstanding quality of life, that is a preferred destination for many professionals and technologies.  As companies such as Qualcomm, SAIC, and others have grown, they have generated many new businesses, reinvigorating the community.  Facing the Pacific makes San Diego a great fit with our affiliate partners' offices in India and Malaysia, and local high tech companies often find our European affiliate offices to be a source of beneficial connections.

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.
Manufacturing and innovation are essential to the success of our community and our economy.  D&K Engineering, located in Rancho Bernardo, is a very exciting example.  D&K is a global product realization company specializing in the design, engineering and manufacturing of complex electromechanical products and equipment.  Through innovation, collaboration and process discipline, D&K partners with organizations to create and build innovative products while reducing cost, accelerating time to market and ensuring product quality. As D&K puts it: they bridge the gap between concept and reality. 

4.   What do we anticipate for San Diego and RA Capital in five years?
San Diego and its regional partners will emerge as a premier global city, exporting and exchanging products, technology and talent with its Asian neighbors and the rest of the world. Continuing innovations in technologies will require building upon our world class institutions of higher learning and expanding our highly skilled workforce. San Diego will build intelligent infrastructure to support this growth, while maintaining the unique beauty of our surrounding area and offering a lifestyle that attracts the active, intellectually curious individuals who create innovation. RA Capital will grow locally, while continuing to expand its global capabilities and be part of supporting this regional growth. We will help San Diego companies find the capital they need to grow, acquire the companies that complement their businesses and extend their reach around the globe. And, as we have always done, we will use our global experience and personal commitment as trusted advisors, to create value for clients, their owners, their employees and the San Diego community.

RA Capital Advisors LLC is a Member of FINRA and SIPC.

TAGS
November 3, 2014

Earlier this month, EDC released its Manpower Monthly Employment Report. Since then, the U.S. Bureau of Labor Statistics has released September employment data on all U.S. metros, which allows us to analyze some key indicators across geographies. Click on images to enlarge in a new window/tab.

HIGHLIGHTS

  • At 5.9 percent, San Diego’s unemployment rate ranked 16th among the 25 most populous U.S. metros.
  • From September 2013 to September 2014, San Diego's unemployment rate fell by -1.4 percentage points, which ranked 8th among the 25 most populous U.S. metros.
  • Since the end of the recession (June 2009), San Diego's unemployment rate has fallen by 4.1 percentage points, which is greater than the U.S. average.
  • San Diego's employment grew by more than 2.5 percent from September 2013 to September 2014, which ranked 9th among the 25 most populous U.S. metros.
  • From September 2013 to September 2014, San Diego's employment in professional, scientific and technical services (PST) grew by 7.2 percent, the 2nd fastest growth among major U.S. metros.
  • Manufacturing in San Diego grew more than 2.6 percent from the previous year, which is faster than both the overall employment growth and the U.S. manufacturing average.

[Unemployment Chart]

The Bureau of Labor Statistics (BLS) recently released employment data for the September 2014 period for all U.S. metro areas. At 5.9 percent, San Diego County’s unemployment rate fell by 1.4 points from this time last year. San Diego's rate ranked 16th among major U.S. metros and was slightly above the U.S. overall rate of 5.7 percent. However, San Diego's rate fell faster than most. San Diego's percentage point change from September 2013 to September 2014 ranked 8th among major U.S. metros. While the unemployment rate in San Diego was higher than some of the region's key peer metros, it still fared better than other California metros like Los Angeles and Riverside, and fell roughly in the middle of the 25 most populous U.S. metros.

[Employment Chart]

When looking at employment growth, San Diego fared better than most. From September 2013 to September 2014, the region's employment grew by more than 2.5 percent, which ranked 9th among the 25 most populous U.S. metros. The U.S. average growth rate was less than 2 percent, and only two U.S. metros, Houston and Dallas, grew by more than 3 percent.

[PST Chart]

While San Diego's overall growth is very positive, we saw more explosive growth in one of the region's most important sectors. Professional, scientific and technical services (PST) is a sector of the economy very heavily associated with the region's innovation clusters. Much of the companies and employment in clusters like biotechnology, biomedical products, cleantech and information technology fall within the PST sector. From September 2013 to September 2014, employment in the region's PST sector grew by 7.2 percent, more than double the U.S. average of 3.2 percent. San Diego ranked second among the 25 most populous U.S. metros in this measure, which is a positive sign for the region's key traded clusters.

[MFG Chart]

Manufacturing is another key industry for growth in the region, not only because manufacturing jobs are accessible and pay well, but also because certain manufacturing subsectors are critical to the region's innovation clusters. From September 2013 to September 2014, manufacturing employment grew by 2.6 percent, which was faster than the region's overall growth rate. San Diego's manufacturing employment grew at twice the rate of the U.S., and recorded the 9th highest growth rate among major U.S. metros. 

As we discussed in the Manpower Monthly Employment Report earlier this month, San Diego's economy is experiencing strong positive employment growth. That point is even more apparent now that we can observe that growth in the context of San Diego's peers. While the unemployment rate isn't as comparatively low as we would like to have seen, Summer-to-Fall seasonal effects are often felt more strongly in San Diego, given the region's large tourism industry. We've generally seen the unemployment rate track at or below the U.S. average, and don't expect that to change much in the near future.

Thank you to Manpower-SD for their ongoing support of EDC's employment trends research.

October 28, 2014

Uber logo

Uber, the ubiquitous transportation platform, has revolutionized the way San Diegans get around. But it’s more than just a logistics platform. Although Uber is available in more than 100 cities around the world, they have found a way to leverage San Diego’s unique assets, tapping into both the concentration of military personnel and cross-border economy.  They are a high-tech company that has mastered the cross-over between innovation and quality of life – something San Diego knows well.

Christopher Ballard, general manager of Uber San Diego, explains why the company thrives in San Diego:

1) Tell us about Uber
Uber is a technology company that is changing the way the world moves, works and lives. By seamlessly connecting riders to the safest, most reliable ride on the road, we’re making all of San Diego more accessible to locals and visitors alike at prices anyone can afford.  And our growth in the city has been tremendous. When we launched in San Diego in early 2012, we partnered with a handful of drivers covering the Gaslamp. Today, we have thousands of drivers partnering with the Uber platform, with average pickup times of less than five minutes across San Diego.

2) What are some advantages to being located/doing business in San Diego?
Why Uber Chose SD We like to say Uber is a technology company at the intersection of lifestyle and logistics, and that’s definitely the case in San Diego.  San Diego’s quality of life attracts ambitious, dynamic and tech-savvy people from across the country and the world who regularly ride and drive with the Uber platform.  We’ve also tapped into the tremendous talent, commitment and dedication of our city’s vast military community as part of our national UberMILITARY initiative, which started in San Diego.  We are committing to onboarding 50,000 service members, veterans and military spouses over the next 18 months as driver-partners with the Uber platform.  

Also, San Diego has the unique distinction of being a border region.  Having recently launched Uber Tijuana, we see a major opportunity in providing riders more choice in transportation options throughout the Cali-Baja Region.

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.
HouseCall is revolutionizing the home services space.  Founded by ex-Qualcomm employees, the app allows people to book home services jobs directly with the service provider.  As someone who doesn’t have a lot of time left in the day for household chores like cleaning the house or fixing a sink, having the option to press a button and receive immediate service from a vetted professional is a major way to stay productive.

4) What do you anticipate for your company in five years? What do you anticipate for San Diego?
I see Uber weaving itself further into the fabric of city life in San Diego and cities across the globe.  Right now, we’re connecting riders to drivers in less than five minutes.  Once you get that right, the possibilities for on-demand delivery are endless, and the need to own a vehicle is diminished. Ultimately, we’re trying to make it so that car ownership isn’t necessary in San Diego.  It’s an ambitious goal, but one we think is achievable.  If we can make it so that it’s cheaper to take an Uber than own a car, we can boost productivity, reduce congestion, and help make San Diego an even better place to live.  We also hope to facilitate stronger economic and social ties between Tijuana and San Diego by making seamless cross-border transportation a reality.

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October 24, 2014

Across the globe, cities are forging a new kind of battle. They are competing for talent.

Metros understand that it’s talent, more than any other factor, that will drive business location decisions. If they want to grow their economy, they need to grow their talent pool first.

A new study from the City Observatory, “The Young and the Restless and the Nation’s Cities,” takes an in-depth look at the migration patterns of the young, educated millennial population (age 25-34) in cities since 2000. Young workers – especially those with bachelor’s degrees – are the most mobile subset of the American workforce. They are not just looking for any job; they are looking for a job in a city where they can envision building a life and a career.

The report reads, “We’ve witnessed an inversion of the classic recipe for economic development: it used to be that people moved to where the businesses were. Now, increasingly, it is businesses that look to expand in locations where there is an abundance of talent, especially young, well-educated workers.”

So the brings us to our next question – exactly where does San Diego stack up when it comes to its ability to attract talent? Here’s what the report tells us:

  • Between 2000 - 2010, there was a 91 percent increase in the number of 25-34 year olds that reside in close-in neighborhoods in San Diego. Close-in neighborhoods are defined as those within three miles of the center of the central business district of each metropolitan area.
  • San Diego saw disproportionately larger increases in well-educated young adults than the overall population. There was a 43 percent increase from 2002-2012 in terms of the number of 25-34 year olds that hold four-year degrees. To put it in comparison, the overall U.S. average grew by slightly more than 25 percent.
  • Cities and entrepreneurship go together. Venture capital investment appears to be increasingly flowing to startup firms located in urban settings. The urban share of venture capital in San Diego is above 80 percent.

The numbers speak for themselves: San Diego is doing well when it comes to attracting educated talent between the ages of 25-34. But we must not take this for granted. If the region wants to continue to be known for innovation, we must ensure we are attracting the right people to the region.

With the help of many partners, EDC currently has a multi-faceted global identity program underway to ensure that we continue to lead the pack in talent attraction and retention. This represents a shift in our previous marketing efforts, which were aimed at c-level decision makers.  We will be sharing more about the program in the coming weeks. For recent analysis from EDC, please see our July and October Quarterly Snapshots, which looked deeper into San Diego's comparative advantages and challenges in the talent race. 

We know that San Diego is a magnet for talent, investment and capital – our job now is making sure that message gets to the rest of the world.

Some media outlets including The New York Times have taken a closer look at the report.

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October 21, 2014

San Diego County Water Authority

Water is an essential part of the region’s economic health. From genomics to advanced manufacturing and beer, many of San Diego’s strongest industries are also those that use the most water.

Amid one of the most severe droughts in the State’s history, local governments and water agencies have put in place restrictions to conserve and increase regional water flow to preserve the health of our economy and people. The San Diego County Water Authority (SDCWA) launched a When in Drought campaign to educate county residents and businesses about the need to conserve our water supply.

The good news is that when it comes to these diversification efforts, San Diego is leading the pack. Thanks to the efforts of the SDCWA, the region no longer relies on one source for 95 percent of its water supply, instead looking to new sources such as recycled water as well as water storage to bolster these efforts. The recently-completed San Vicente Dam raise doubles the reservoir’s capacity. Another answer may be right in our backyard: when complete in 2015, the Carlsbad Desalination plant will be the largest of its kind in the Western hemisphere, and provide another local source of water.

This week, we got to learn a little more about the region’s water supply – and what it means for our economic competitiveness - from Mark Weston, the newly-elected chair of the board of directors at the San Diego County Water Authority. Mr. Weston serves as the Poway representative.

 

1) Tell us about the SDCWA.
San Diego County is a wonderful place to live, but there are not local enough water supplies to support the region’s 3.1 million people and $206 billion economy*. That’s where the Water Authority comes in. We import water from distant sources and distribute it in five very large diameter pipelines to 24 retail water districts and cities. We also are helping to develop local water resources such as seawater desalination, and we are assisting our member agencies advance potable reuse, water recycling and groundwater. And, we promote water conservation to make the most of every drop. Established in 1944, the Water Authority service area stretches from Camp Pendleton to the Otay Water District on the U.S-Mexico border. Over the past two decades, the Water Authority – in partnership with the community – has diversified the region’s water supply sources. We no longer rely on a single supplier for 95 percent of our water, a strategy that is helping reduce the impact of the current statewide drought on our community.

2)  What makes San Diego’s water supply unique?
Our region is effectively at the end of two major pipelines that bring water from the Colorado River and Northern California. After the county’s imported water supplies were cut by 31 percent in 1991, the Water Authority SDCWA on the region's water supply and the region – with support from our member agencies and the business community – developed an aggressive plan to diversify our supply sources. The strategy included the nation’s largest agriculture-to-urban water transfer as part of the historic 2003 Colorado River Quantification Settlement Agreement. In addition, the Water Authority has promoted water conservation as a way of life, helping to reduce the region’s per capita water use by more than 20 percent since 2007. The Water Authority also has been a strong supporter of water recycling. And, in fall 2015, we expect to start buying water from the landmark Carlsbad Desalination Project.

3) Water is an essential component of our future. Pick a San Diego company that is paving the way when it comes to water conservation.
San Diego Zoo Global recycles more than 16 million gallons of water annually and uses that water to support its horticultural collections. In addition, the Zoo uses water-saving technologies such as low-flow toilets, water reclamation ponds and evaporation-reducing mulch around plants. San Diego Zoo Global is also doing a great job spreading the word about the need for water conservation through: new signs at the San Diego Zoo and the San Diego Zoo Safari Park that emphasize WaterSmart practices; water conservation reminders during bus and tram tours; and social media posts that highlight California’s water supply challenges while encouraging its legions of supporters to conserve water.

4) What do you anticipate for the Water Authority in the next 5 years? What do you anticipate for San Diego?
By 2020, the Water Authority anticipates achieving its long-term goals for creating a fully diversified water supply, and we also expect the region will meet the state Legislature’s mandate to reduce water use by 20 percent by 2020. But that doesn’t mean our job is done. The serious statewide drought and a changing climate will continue to challenge local and state water suppliers. For instance, if this winter is dry, it may mean reductions in the amount of imported water delivered to San Diego County by the Metropolitan Water District (MWD) of Southern California. While MWD is still our region’s largest water supplier, our diversification efforts will reduce the impacts on our community of any water allocations by MWD. About this time next year, the Carlsbad Desalination Project will generate 50 million gallons of water a day, enough to meet about 7 percent of regional demand in 2020. In addition, we will continue supporting our member agencies’ efforts to enhance groundwater supplies and water recycling. Several member agencies are developing or studying potable water reuse projects, and we have identified potable reuse as the region’s most likely next source of local supply. Finally, we will continue partnering with residents and businesses to conserve water, particularly outdoors.

*2014 estimated GDP, according to National University Systems Institute for Policy Research 

TAGS
October 17, 2014

Download a printable version

 

 

This post is part of an ongoing monthly series dedicated to the California Employment Development Department (EDD) monthly employment release and is brought to you by Manpower. Click images to enlarge in a new tab/window.

HIGHLIGHTS

  • Monthly data for September is highly susceptible to seasonal changes, so month-to-month employment changes should be viewed in that context.
  • At 5.9 percent, San Diego’s unemployment rate fell in September by 0.3 percentage points from August. In addition, unemployment was down 1.4 points from September 2013.
  • San Diego’s unemployment rate was lower than the California average, and slightly above the U.S. average.
  • The region lost 2,800 seasonal jobs from August to September, but added 33,300 jobs since last year.
  • Seasonal effects limited monthly employment growth in most private industries, but manufacturing, education services and professional and business services added jobs in September.
  • Staffing services grew by 4.7 percent since last year and nearly two percent this month, indicating demand for hiring services.
  • San Diego’s traded economies (Innovation, Defense and Tourism) continued to drive annual employment growth.

[Unemployment Chart]

The California Employment Development Department (EDD) released statewide county employment data today for the September 2014 period. At 5.9 percent, San Diego County’s unemployment rate dropped 0.3 points from August to September, and fell by 1.4 points from this time last year. The unemployment rate in the region remained a full point below California’s 6.9 percent rate and tracked just above the U.S. average of 5.7 percent. While the region experienced a decline of more than 11,000 in its labor force, much of this can be pinned on seasonal effects, as temporary summer workers fall out of the labor force. Since September of last year, the labor force gained 11,100 people, 33,900 more people have identified as employed, and 22,200 less people have identified as unemployed, indicating positive momentum in the labor market.

[Employment Chart]

When looking at employment changes, September seasonal effects played a role here as well. From August to September, the region’s total employment fell by 2,800 jobs, with the private sector falling by 7,400 jobs. Private sector losses were partially offset by 4,500 public sector education workers returning to their jobs. While these numbers appear threatening, it can be almost entirely pinned on seasonal losses in common summer growth industries like construction and tourism. When looking at year-over-year growth, we see that San Diego added 33,300 jobs, 32,400 of which are from the private sector. San Diego continued to out-pace national growth as well. Employment from September 2013 to 2014 grew by approximately 2.5 percent overall and three percent in the private sector, while the U.S. grew by about a half point slower.

[PST Chart]

San Diego’s traded economies continued to drive much of the region’s employment growth. Professional, scientific and technical services (PST), heavily associated with innovation, was one of the few industries to add jobs in the down season. The industry added 600 jobs since August 2014. More importantly, PST added 8,900 jobs since September 2013, a growth rate of 7.2 percent, which is nearly three times the economy-wide 2.5 percent growth rate. PST includes subsectors like scientific research and development services, which is a key driver of our life sciences. This subsector grew by 4.6 percent over the year.

San Diego’s tourism industry continued its normal seasonal decline, losing 5,700 jobs from August to September. However, the industry added 3,700 jobs since September 2013, indicating that the industry is still performing well.

San Diego’s goods producers continued their steady employment growth, despite experiencing a seasonal drop like most industries in the region. Goods producers accounted for more than 27 percent of the annual job growth. The construction industry, despite losing 1,400 jobs last month, added 6,300 jobs from September 2013 to 2014, a 10.2 percent increase. Manufacturing was one of the few industries to grow this month, adding 600 jobs from August to September. This industry has added 2,500 jobs since September 2013,

Other substantial annual growth industries include ship and boat building, which grew by more than 11 percent and is a critical component of our maritime cluster. San Diego’s movers of goods have also been growing rapidly, as transportation and warehousing employment grew 7.5 percent over the year.

[Growth Chart]

While the apparent seasonal effects in this month’s report may grab the headlines, San Diego is performing well so far in 2014. San Diego’s key driving industries have had an outstanding year, at least in terms of job growth, and the region has continued to add middle-to-high paying jobs in industries like manufacturing, construction and PST services. San Diego continued to out-pace the U.S. in job growth, while seeing a healthy decline in the unemployment rate. With one quarter remaining, San Diego’s labor market has exceeded many expectations.

Note: Our Economic Indicators Dashboard will show how our unemployment rate compares to other US metros and the US total rate when that information is released in the coming weeks.

October 15, 2014

More than 60 businesses attended a seminar Monday to learn how to apply for the Cal Competes Tax Credit. The workshop was co-hosted by EDC and the Governor's Office of Business and Economic Development (GO-Biz). The new income tax credit allows businesses to receive a reimbursement from the state for hiring and capital investment improvements. “The California Competes tax credit encourages businesses, large and small, to expand in California and create good paying jobs in a variety of industries,” said GO-Biz Senior Business Development Specialist Sid Voorakkara.

Congressman Scott Peters (D-San Diego) and Assembly Speaker Toni Atkins (D-San Diego) welcomed businesses to the workshop. 

Assembly Speaker Toni Atkins addresses crowds at a Cal Competes Workshop
 

“We are the greatest state and the eighth largest economy in the world. We compete globally against economies such as Brazil, Russia and India. We are the innovation site for many of the world’s industries,” said Speaker Atkins.

The Cal Competes Tax Credit is now accepting applications through Monday, October 27. GO-BIZ has allocated a total of $45 million for companies this round. Apply now at www.calcompetes.ca.gov. You can watch a step-by-step video on the application process by clicking here

In the last round of Cal Competes, San Diego and Imperial County companies received more than 65 percent - $4.83 million of the $7.37 million allocated for small businesses – under the program meaning that the region raked in more small business credits than any other area in the state combined.

In total, one Imperial County and four San Diego companies were approved for the economic incentives, which are collectively valued at $7.43 million. According to documents filed by the respective companies, the incentives are expected to create 1,144 jobs. San Diego’s diverse industries, including military, maritime, biotech and advanced manufacturing, were well-represented in the credit recipients.

Companies looking to apply or find out more about the tax credits are encouraged to contact Sid Voorakkara and Drew Garrison

October 14, 2014

D&K Engineering

On October 3rd, more than 28 San Diego companies opened their doors to the public as part of National Manufacturing (MFG) Day. As one of the founding members of the local event, the team at D&K Engineering was behind the day’s success. More than 100 people lined up to tour its Rancho Bernardo headquarters where many of the world’s most innovative products are made.

With a wide-range of expertise - including kiosks, medical devices, 3D printers and more – D&K Engineering is redefining the way we think of product manufacturing. Its products and expertise illustrate the way manufacturing has evolved to become a high-tech process that creates applications that change the world. This product intuition has helped them yield results: the innovator saw its manufacturing business grow by 90 percent from November 2012 to November 2013.  This is the type of growth that lands a company on the Inc. 5000 list five times.

For this week’s Investor Spotlight, we sat down with D&K Engineering’s CEO Scott Dennis to learn about why the innovator chooses to grow in San Diego.

1) Tell us about D&K Engineering

D&K Engineering provides end-to-end R&D, product development and manufacturing services for high-innovation content, hardware-based products.  We help enterprises become leaders in their industries by creating and manufacturing breakthrough hardware-based products that lead to profitable, enduring lines of business for our clients.  We achieve this by employing world-class R&D and manufacturing talent, deploying state-of-the-art product realization processes and leveraging our global infrastructure and supply chain to design and manufacture innovative products on a service basis. San Diego based ecoATM is a great example of one of D&K Engineering’s many end-to-end client relationships (R&D through manufacturing).  As the engineering and manufacturing engine behind ecoATM, we helped them quickly achieve market leadership by designing and delivering a fully-automated kiosk that was deployed to the market and generating revenue within a 12-month period.  Today, ecoATM is the leader in the electronics eCycling kiosk industry.

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

Why D&K Engineering Chose San Diego

Although D&K Engineering provides services to companies around the world, San Diego is an ideal location to call home.  Some key advantages of doing business in San Diego are the broad base of industries located in the region, the deep pool of R&D and manufacturing talent available, geographic proximity to Mexico and easy access to Asian markets and supply chain. San Diego’s industry base includes many market-leading and emerging companies in a wide variety of industries such as medical, life science, wireless, 2D and 3D printing, kiosks, and defense.  Most organizations in these industries partner heavily with service-based companies to assist them with developing new, innovative products and manufacturing them on an ongoing basis.    

The education level and specialized skills of the talent pool in San Diego is a competitive advantage for our business. Not only does the region provide a talented pool of experienced workers, but its world-class university system, including UC San Diego, San Diego State University, the University of San Diego and others, continually provides a great pool of new engineering and business talent.

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.

There are many San Diego based companies that are innovators and global leaders in their perspective industries. A few of these companies include:  iboss, a web security company developing innovative security solutions and a prominent member of San Diego’s growing cybersecurity industry; Hologic GenProbe, a medical device company developing diagnostic products to help improve patients’ lives; Illumina, a medical device manufacturer developing advanced DNA sequencing solutions and products used in the advancement of personalized medicine. 

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

D&K expects continued regional and global growth in both our engineering and manufacturing services business over the next five years. With the goal of achieving a global leadership position in the product realization services industry, D&K offers San Diego the advantage of having a global industry leader in their own back yard that can help expand the burgeoning pool of technology based companies who call San Diego home. 

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