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Today, we welcomed Wrike, a Silicon Valley-based SaaS startup to San Diego. While Wrike is certainly a unique company, its situation is one we know well.
Recognizing the talent footprint in the region, Wrike chose to expand to San Diego, bringing with it 150 jobs over the next three years. Located a stone’s throw away from UC San Diego, Wrike is looking to attract talent from the region’s top universities, including SDSU and CSUSM. The company considered Raleigh, Phoenix and Chicago as alternative locations, but in the end, chose San Diego as the place to expand its California footprint.
"We're thrilled to expand to San Diego and open this location as a launch pad for our growth here,” said Seth Shaw, Wrike’s Chief Revenue Officer and San Diego expansion lead. “We've been really impressed with the high caliber of talent in the region and the enthusiasm for growing professionally in a startup environment."
EDC’s recent data can attest to the depth of San Diego’s talent pool. In 2014, San Diego gained 72,000 degree holders – more than any other major metro area. However, it’s not just the talent pool that attracted Wrike here, but the quality of life the region offers to employees. Not only are the region's beaches ranked among the best in the country, but San Diego ranks fourth in number of sunshine hours (yes, that’s a metric), and has the lowest average commute time among our peer metros. Life most certainly works here, and we’re proud that Wrike agrees.
By Mark Cafferty, President & CEO
Just back from a long trip to Auckland, New Zealand and Sydney, Australia. I wanted to share some updates and observations from my time representing EDC and marketing our region to our friends Down Under and in the City of Sails.
Unlike many of my recent international trips, I spent a great deal of time over the past few weeks engaging with our economic development peers at the Auckland Tourism, Events and Economic Development agency (ATEED) and the leadership of the Committee for Sydney – two very different and interesting models in two very different and interesting cities. EDC’s relationships with these highly regarded organizations have been continually strengthened and enhanced through our work with JPMorgan Chase and Brookings Institute. Our colleague Greg Clark from Brookings was especially instrumental in setting up several of these meetings over the course of my trip.
Most exciting for me to see was the buzz EDC’s work has created over the past few years. Both the ATEED and the Committee for Sydney were familiar with our research and gave high praise to our work with the region’s traded clusters. Quite surprisingly, the organizations knew about our transition away from politics/policy over the last four years and praised EDC for being a leader in redefining regional economic development through a collaborative, employer-led approach – a strategy that has served us well.
In Auckland, they are building a "sports and active lifestyle" sector strategy based on the research EDC conducted a few years ago in partnership with San Diego Sports Innovators. They have also analyzed our export strategy and Go Global efforts, and are working to mirror several of our programs/initiatives – now spearheaded by the WTC San Diego housed within EDC.
In Sydney, the highly influential Committee for Sydney was excited about what they have seen/read regarding our collaboration with Mayor Faulconer's office. Specifically, they are hoping to set up a video conference in May with their business and political leadership in Sydney to hear about the "San Diego Story" from the Mayor and the EDC team. From there they are hoping to open the door to a large-scale trade/investment mission in 2017. Stay tuned...
Along the way I also had a fantastic meeting with Baseball New Zealand set up through the San Diego Padres, meetings with the airline industry set up by our colleagues at the San Diego County Regional Airport Authority, and continued engagement with leadership from two of our greatest San Diego/Sydney business connections: Cubic and ResMed. Lastly, I met with an Auckland-based VC firm who will likely be visiting businesses in San Diego within the next few months.
As always, San Diego’s universities, world renowned research institutions, biotech industry, defense technology and proximity to Mexico dominated conversations throughout the course of my trip. And with international commerce opportunities increasing and expanding through the Trans Pacific Partnership (TPP), everyone I spoke with saw San Diego's geography, entrepreneurship and economic diversity as key assets for expanded international trade and investment.
But what was incredible to see was how much better San Diego's economic story was understood and appreciated in comparison to my first visit to Auckland and Sydney just two years ago.
With and through our partners/investors, EDC is successfully placing San Diego on the radar of international businesses, investors and thought leaders across the world. The National Geographic Smart Cities documentary and our work with Brookings and JPMorgan Chase have a lot to do with this, but so does the hard work of our economic development team, the outstanding research we have been producing and the creative way in which our marketing team is framing our work and telling our story. For that, we have nobody to thank more than our board members and investors whose leadership, guidance, support, direction and vision are helping to change the way the world sees our region and our economy. And the best is yet to come.
A fascinating person I met with during this trip told me that an old Australian Aboriginal Proverb states:
"We are all visitors to this time, this place. We are just passing through. Our purpose here is to observe, to learn, to grow, to love...and then we return home."
Thank you for sharing this time and place with us, and thank you for continuing to support our efforts to observe, learn and grow.
Could the 78 Corridor be the next hub for Information and Communications Technology (ICT) companies? At a roundtable discussion with industry companies, academic institutions and city economic developers this week, EDC posed this question.
With a concentration of more than 650 ICT employers in the five cities along the 78 Corridor - Carlsbad, Escondido, San Marcos, Oceanside, Vista - there is a reason companies are choosing to locate here. Some of those reasons are the quality of talent and engineers, quality of life, and strategic positioning between San Diego and Orange County. If we are able to better capitalize on those reasons and understand the issues and opportunities of doing business along the Corridor (and the broader San Diego region), we can proactively set the framework to accelerate industry growth and clear hurdles.
The discussion identified several key challenges to overcome as well. Key among them: talent accessibility, infrastructure improvements, university/academic relationships and the ability to work together to make the region more attractive for those who might consider working here.
EDC plans to dive deeper into these challenges with our partners, cities and institutions to find creative solutions to turn those challenges into opportunities.
By Shea Benton, economic development manager
Late January, EDC ventured into new territory by hosting ExploreSD, a three-day showcase of San Diego’s economy and talented workforce for site selection consultants from all over the country. Our goals were twofold: 1) pilot a replicable multi-day tour of the best companies our region has to offer to tell the San Diego story; and 2) proactively promote our region’s unique economy in an effort to generate new business attraction opportunities.
Over the past year, our team has engaged with a select group of consultants whose business is to compare and contrast regions for their clients, based on a gamut of criteria from real estate and utility costs to talent and quality of life, in order to help companies decide where to expand or relocate. As you can imagine, many in this industry have an aversion to California due to perceived and real barriers to doing business in the state. EDC’s strategy was to sell the San Diego region based on our thriving innovation economy, talented workforce, collaborative relationship with local and state government and unmatched quality of life.
Day 1: Joined by Mark Field, CTO of Thermo Fisher Scientific, Melissa Floca, director of the Center for US-Mexican Studies at UCSD, and Erik Caldwell, director of economic development for the City of San Diego, we kicked off day 1 with an overview of our mega-region. The conversation turned quickly to cross-border manufacturing and our proximity to Mexico, an asset previously overlooked by this group. After a multi-hour discussion, the stage was set for the next two days of company tours.
Day 2: Starting with a visual overview of downtown from the top of Diamondview Tower, our morning featured tours of Red Door Interactive, ESET and EvoNexus incubator. This portion of the event showcased San Diego’s downtown, with visit to both tech startups and established companies. The afternoon included trips to three companies with some of the most unique stories in San Diego: Illumina, iBoss Cybersecurity and BD/Carefusion. Not only are these three of the most recognizable names in the region, but they also have something else in common: they all explored expanding or relocating to other regions, only to increase their presence in San Diego.
Day 3: We began our final day in North County with tours of General Atomics and D&K Engineering to help these individuals better asses our advanced manufacturing industry. After a quick lunch at Stone Brewing Bistro & Gardens - a necessary stop for anyone visiting the region that doubled as a highlight of our craft beer industry - we explored all 5 cities along the 78 corridor. With stops at CSU San Marcos, a drive through Ocean Ranch Business Park and Carlsbad giants ViaSat and Thermo Fisher Scientific, we finished out our tour strong.
One thing was clear throughout the tour – our region’s innovation economy, talented workforce, and quality of life permeated every discussion in an organic way. With the help of an articulate group of business leaders and San Diego’s leading industry and real estate experts, we effectively articulated the benefits of business location in our region over peer metros including Austin, Denver and San Francisco. Moving forward, we intend to replicate and use this style of tour as an effective method to tell the San Diego story.
By Sean Barr, senior vice president of economic development
Greetings from Tokyo, Japan. This week, behind a newly relaunched World Trade Center San Diego, EDC kicks off its 2016 international program. Our goals are clear – grow exports and position the region as a choice location for investment and science and technology partnerships.
I am here in Tokyo the next few days with the Jacobs School of Engineering at UC San Diego. From day one, we were met with great enthusiasm for expanded partnerships with the University of Tokyo, University of Osaka, and private industry leaders such as Mitsui, Honda and the Japan Venture Capital Association, to name a few.
Japan represents San Diego's largest trade and investment market, making the relationship key to our economic growth. Tokyo alone accounts for nearly 25 percent of all foreign owned establishments in the region. With operations in San Diego, Japanese companies such as Kyocera International, Sony, Ajinomoto, and Takeda are some of the most active and community-minded companies, employing hundreds of San Diegans. Japan leads the way as an export market, consistently ranking among the top five most important markets for San Diego. From water technology, to microelectronics, to tourism, to telecommunications to renewable energy and craft beer, Japan punches way above its weight in the consumption of San Diego products and services.
The relationship, however, is not one-sided. A number of organizations in San Diego have long recognized the importance of Japan to our economy, with some committing to a fulltime presence abroad, including Biocom, the San Diego Tourism Authority, the San Diego International Airport, the Port of San Diego, SDSU and of course, UC San Diego. We are looking to build on, amplify and support their work to advance the region's trade interests.
Leading with our universities and science and engineering talent, San Diego is successfully attracting attention to our global innovation economy. In partnership with Al Pisano, Dean of the Jacobs School of Engineering at UC San Diego, EDC co-hosted a symposium this week for more than 30 Japanese investors. As investors traveled from Osaka, Kyoto, and throughout Tokyo to attend, it was evident that San Diego’s technology and engineering prowess has garnered global attention, with many inquiring about the region’s business climate and international presence.
The global outreach continues next week, through the end of April, and beyond. Next stop: Tokyo (return visit), Nagoya, Osaka, Auckland, Sydney, London, Toulon and Stockholm. We will certainly keep you updated from the road.
“San Diego’s labor market experienced a very positive year in 2015, despite a slower than usual December. The region added tens of thousands of jobs since the previous year, primarily in high-wage and productive industries. This drove thousands of people back to the labor force and resulted in 20,000 fewer unemployed.”
Phil Blair, Executive Officer
Manpower San Diego
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.
The California Employment Development Department (EDD) released statewide county employment data today for the December 2015 period. This month’s data allows for a complete picture for year 2015, and shows that San Diego’s economy grew at an accelerated pace in 2015 compared to recent years.
The unemployment rate closed the year at 4.7 percent in December, the lowest since June 2007. The rate is down 0.1 points from the previous month and 0.8 points from the previous year. The San Diego rate remained much lower than the statewide unemployment rate of 5.8 percent. When averaged over the entire year, the unemployment rate closed at 5.0 percent for 2015, down substantially from the 2014 average of 6.4 percent. The 2015 annual average is the lowest since the recession. Meanwhile, the annual average labor force was up 17,700 from 2014, while unemployment claims were down 20,300, which indicates a healthy rate drop.
The region’s year-over-year employment for December grew below the 2015 average. San Diego’s total non-farm employment grew by 37,500 jobs from December 2014 to December 2015—2.7 percent growth. San Diego’s growth rate was again much higher than the 1.9 percent national rate. In total, the San Diego region averaged 3.1 percent annual growth in 2015, compared to only 2.3 percent in 2014. This was the highest annual percent growth rate since 2000, as the region added 41,400, the most jobs added since 1999.
The private sector drove employment growth in 2015, as private employment accounted for 91.7 percent of all employment growth over the year. The total private sector grew by 3.4 percent on average in 2015, out-pacing the private U.S. growth rate of 2.1 percent.
Private growth was driven largely by service providers, but goods producers experienced a particularly strong year. Manufacturers and construction companies drove 15.9 percent of private job growth in 2015, and finished the year strong. The two industries added a combined 6,000 jobs in 2015, the most since 2004. The manufacturing industry in particular added the most jobs and experienced the highest annual percent growth rate since 1998. The boom in the construction market is likely a response to demand pressures in the commercial and residential real estate markets, as quality space is becoming increasingly scarce, according to CBRE MarketView reports. The growth in manufacturing and wholesale trade are putting pressure on the industrial market in particular, as the industrial vacancy rate in Q4 2015 was at the lowest ever recorded.
Professional, scientific, and technical (PST) services, which is strongly associated with the region’s innovation economy, grew by 6.6 percent in 2015, which was the highest growth rate among major industries in the region (tied with construction). The 2015 growth rate was the highest posted since 2005 in the industry. PST services accounted for more than one fifth of all private annual job growth in San Diego. Comparatively, the national PST sector grew by only 3.6 percent in 2015. Scientific research and development services, a subsector of PST that represents many cleantech and life science companies, grew by 5.2 percent.
Other key drivers for growth included the region’s healthcare sector, which added 7,000 jobs and accounted for roughly one fifth of the region’s private job growth in 2015. Tourism experienced another seasonal hit in December, but the annual average was strong. The industry added 6,500 jobs in 2015, a 3.7 percent growth rate. Growth slowed in the latter half of the year, particularly in food service and drinking places, which was driving higher growth earlier in 2015.
With a full year of 2015 data on the books, it was a very positive year for San Diego’s economy. The national economy showed tepid growth throughout the year, while San Diego consistently looked much stronger than the country as a whole. Key industries like manufacturing, construction, health care, and PST services had impressive, and by some measures, record years. While concerns around decreases in federal spending for science and defense will likely thwart some expectations for 2016, other factors like the Department of Defense’s shifting focus toward cybersecurity and national trends toward manufacturing re-shoring could prove promising for San Diego. Given these trends, future outcomes remain largely uncertain, but San Diego’s economy appears well positioned for growth through 2016.
This report was performed with assistance from the CBRE research team in San Diego.
Talent is the cornerstone of today’s global economy. It drives corporate location decisions, encourages innovative urban planning and inspires entrepreneurship. In essence, talent is the key to economic growth. If regions – such as San Diego – want to get ahead, they must have the workforce to compete.
Today, San Diego Regional EDC released “Talent: Where San Diego Stands,” a comprehensive study that contextualizes San Diego’s standing in talent growth and retention with regard to highly-skilled engineering, science and tech talent in nine peer metros including Austin, Denver and San Francisco. By analyzing key factors for firms and site selectors and comparing key characteristics that attract talent, San Diego can better understand how to maintain its competitive edge.
Among peer metros, San Diego ranks…
2nd – percent growth of degree-holding millennials (age 25-34)
1st – concentration of scientific R&D firms and employment
3rd– wages in sciences and engineering jobs
1st – lowest average commute times
2nd – average annual pay for R&D employees at $176,000
3rd – total number of scientific R&D firms
When looking for a place to start or continue a career, talent is demanding change. Infrastructure and creative office design are becoming critical requirements. Innovative workspaces, lifestyle, competitive wages and economic opportunity matter.
Thank you to our study sponsors iboss Cybersecurity and Kilroy Realty Corp. with additional support provided by CBRE.
This week we sat down with Seth Stein, president of workforce recruitment at Eastridge Workforce Solutions, to discuss how Eastridge is helping companies refine their talent recruitment processes. With Eastridge's Talent Acquisition Assessment, companies can see how their recruitment and technology practices stack up against their peers, providing insight on how to improve and refine current hiring processes.
For more on talent, attend EDC’s study release event to see how San Diego stacks up against its peer metropolitan cities in talent attraction and retention on Jan. 14. Register here.
1) Please tell us what Eastridge Workforce Solutions does.
Backed by over 40 years of experience, Eastridge Workforce Solutions makes attracting and managing a skilled workforce easier. We develop strategic workforce management programs, innovative technology platforms, and comprehensive staffing solutions customized for your organization. As the success of an organization relies on its talent, businesses partner with Eastridge to solve their workforce needs and stay ahead of the competition.
2) Identify current obstacles companies face in hiring.
The U.S. Bureau of Labor Statistics November 2015 report showed the unemployment rate declined to 4.8 percent, the lowest level in seven years. Across the country, niche positions are becoming increasingly difficult to fill as candidates receive numerous compelling offers.
In the recently published Consumer Price Index Report, consumer confidence in the economy is the highest rate in eight years. Candidates are feeling more confident than ever that they can find a position that offers competitive compensation and career growth. With multiple offers, candidates are demanding higher pay—even for entry-level positions.
As San Diego has shifted to a more candidate-driven market, employers have to quickly revise their hiring strategy. In order to secure top candidates, organizations must have a well-defined recruitment process to ensure consistent and repeatable performance through the hiring life cycle. This measures effectiveness and sets a baseline for ongoing expectations.
Organizations that do not have efficient hiring processes, like quick turnaround time from interviews to offers, are subject to losing top candidates to their competitors. To help HR professionals assess hiring challenges in today’s labor market, Eastridge Workforce Solutions developed a Talent Acquisition Assessment to gather data from companies nationwide and learn more about their recruitment performance.
3) How does the Talent Acquisition Assessment enable companies to refine their current hiring processes?
The Talent Acquisition Assessment allows companies to gauge their current recruitment and technology practices against their peers, helping reveal problem areas that exist in current hiring, communication and technology methods.
Organizations that are aware of any gaps that exist in current recruitment processes are better able to secure top candidates and stay ahead of the competition in today’s labor market. Companies that have leading edge recruitment technology and proven talent acquisition practices can source, interview, and hire top candidates quicker. Sticking to outdated methods creates gaps in talent acquisition performance.