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Inside EDC

August 11, 2017

Discover San Diego: Life. Changing. with this pocket guide full of interesting SD facts and a map illustration of the coolest companies in town!

This is the first official 'tool' - debuted last night - from EDC's San Diego: Life. Changing. Campaign. 

 

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.
March 20, 2017

The Duane Roth Renaissance Award is named in memory of a beloved community leader who tirelessly championed San Diego's innovation ecosystem and reframed how we view our economic diversity. Presented at EDC's Annual Dinner each year, this award recognizes an organization whose work is creating outstanding inventions, innovations or breakthroughs that have changed and improved the world around us. 
 
EDC is deeply honored to announce the Salk Institute for Biological Studies as the 2017 Honoree of the Duane Roth Renaissance Award, presented by:

 
Founded in 1960 after Jonas Salk developed the first effective polio vaccine, Salk Institute is among the top five research institutions in the world. The San Diego institute is pushing boundaries of scientific discovery around cancer and immunology, aging, diabetes, brain science and plant biology. Salk has been issued 560 patents, while 38 new companies have spun out of its discoveries. Strengthened by its diversity, there are 46 countries represented by Salk faculty, staff and students.
 
Please join us at EDC's Annual Dinner to celebrate Salk and more, April 20.
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. 

 

December 13, 2016

Connections: a simple word that takes on different meanings, but for EDC, it describes both what we do and how we do it. In 2016, we were all about connecting... Connecting companies to global markets. Connecting business to opportunities. And connecting with the people who make our economic development work possible.

EDC's impact:

  • 8,260 jobs impacted; 126 year-to-date projects
  • $3.4M in tax credits earned by local companies
  • 14 national media hits secured; 149M people reached
  • 15 SMEs accrued $6M in additional export sales; 42 new regional jobs
  • $1.6M DoD grant awarded to San Diego and local organizations
  • 9K students impacted by career development programming
  • Seven economic research reports released
  • And 160 investors and partners who make it all possible...

See the stories behind the numbers in our interactive review at EDCin2016.com.

"As we head into the new year, we know that we have even more to accomplish in connecting San Diego's economy to the world. As always, EDC is honored to do it with and through all of you." - Mark Cafferty, president & CEO

December 8, 2016

Sometimes we find San Diego stories in unlikely places. 
 
Today, Pristine Environments, a facilities management company, announced that it will be integrating autonomous robotic cleaning technology into its clients’ facilities through a partnership with San Diego-based Brain Corp, a Qualcomm Ventures-backed company. Pristine clients include BAE Systems, Scripps, Takeda, CBRE and many more.

At EDC, we like to see San Diego companies working together. Even better is when we can make it happen. 
 
EDC played matchmaker on this deal. When EDC’s economic development manager Jesse Gipe heard Brain Corp was looking to pilot its robotic cleaning technology, he knew the right partner was in San Diego.  He introduced them to Pristine Environments, an EDC investor in the facilities management space, to see if they would be open to getting this new technology into the hands of their clients. Pristine Environments has clients all over the country, but is headquartered in San Diego. 
 
Brain Corp is a software technology company specializing in the development of autonomous artificial intelligence (A.I.) systems for self-driving vehicles (SDVs). Its newly-launched, self-driving industrial floor-cleaning machine called EMMA will be used in Pristine Environments’ client location throughout the country.  
 
Two local companies collaborating to harness the power of artificial intelligence and robotics to make our lives a bit easier... Now that’s a San Diego’ story.
April 28, 2016

It’s clear that despite a healthy economy, not every part of San Diego is enjoying economic prosperity. This week, GlobeSt.com sat down with Jim Zortman, sector VP, strategic operations of Northrop Grumman and newly appointed chairman of EDC, for a chat about what he hopes to do about this issue and others. 

What are your goals in your new role as chairman of the San Diego Regional EDC?

Zortman: Over the past four years, EDC has introduced a number of important initiatives to expand our regional economy with and through a broad base of partners. For example, in partnership with the Brookings Institution and JPMorgan Chase, the “Go Global Initiative” aims to attract foreign direct investment, grow regional exports and strengthen economic ties in strategic international markets, as well as position San Diego’s unique global identity.

As chairman, I am committed to championing these initiatives, but it’s clear that despite a healthy economy, not every part of San Diego is enjoying economic prosperity. I hope to broaden our agenda to focus on economic development issues in communities that have not yet benefited from the region’s development. It is my vision that the broad-based coalition of partners that catalyzed the region’s life-sciences, technology, R&D, defense and aerospace sectors can also come together to develop job opportunities and prosperity for more San Diegans.

What do you feel are the biggest economic development challenges in the San Diego market?

Zortman: We have all heard the comment that businesses should operate “anywhere but California.”  We know it is not cheap to do business here. But it is our job as economic developers to understand and leverage our assets and competitive advantages—just as your readers often have to do as real estate professionals. California is number one in economic categories like foreign investment, venture capital and job growth; we rank first in sectors like agriculture, defense, biotechnology and life sciences; our public universities are nationally ranked and produce top-tier talent—the list goes on and on. San Diego plays an important role in each of these fields.

San Diego is home to the largest concentration of military anywhere in the world. It is the underpinning of defense sectors where we have unmatched dominance: cybersecurity, defense, communications, unmanned systems and maritime. San Diego is the epicenter of the future of biotechnology—specifically genomics. We are home to Craig Venter, who was the first person to sequence the human genome, and to Illumina, the company that can now sequence the genome in just over 24 hours for under $1,000. San Diego has more than 80 research institutions, more than any other region in the country.

Not only are we home to a diversity of thriving industries, but we are also a top-tier talent pool driving our region’s growth. Specifically, San Diego gained 72,000 degree holders in 2014 alone, more than any other major metro area in the country. Also, San Diego has the lowest turnover rate in tech and scientific R&D jobs, which is attracting the attention of technology companies across the country.

Continually, we have what talent wants: the lowest average commute time of any major metro area in the country; an influx of creative-office space as seen with iboss Cybersecurity’s space in UTC; competitive wages—ranking second average annual pay for R&D employees—and more.

And if that’s not enough, let me point out that the economy of Texas could pretty much double overnight and still not match the strength of California’s economy. In the end, dispelling myths about doing business here and telling San Diego’s story is our collective responsibility.

What do you feel are the biggest economic-development opportunities that are perhaps not being taken advantage of in the San Diego market?

Zortman: One of the biggest opportunities we have as a region is to help companies export their products and services. In 2013, San Diego ranked 18th of the 100 largest metro areas in total export value, export-supported jobs, GDP and population size. But the region was only 61st in terms of export intensity—total export value as a share of the region’s GDP. According to the Institute for International Economics, companies that export not only grow faster, but are less likely to go out of business than non-exporting companies.

World Trade Center San Diego – now housed within EDC – has introduced the MetroConnect Program to provide small- and medium-sized enterprises with resources and funding to help open new markets abroad. The Go Global Initiative and programs like MetroConnect help San Diego maximize its global competitiveness.

What else should our readers know about San Diego Regional EDC?

Zortman: The real estate industry is a key partner to EDC. Every day our team works with brokers and developers to help enable and encourage companies to grow here. Using data on the region’s industry clusters, workforce talent and network of partners, EDC is able to assist companies with expansions throughout the mega region. Some of San Diego’s recent wins include the attraction of tech companies such as Bizness Apps and Wrike.

Real estate professionals should also use the research EDC produces to better understand industry sectors poised for growth. For example, EDC recently released a study on San Diego’s software development industry. The study showed the region’s software ecosystem impacts more than 100,000 jobs in the regional economy, with an economic impact totaling $12.2 billion annually; venture-capital investment in software was up by 38 percent in 2015; and the industry has an anticipated employment growth of 18.1 percent in the next year—all signs that the region’s tech ecosystem is gaining national visibility.

 

Click here for the full story.

April 22, 2016
Once again 800 of the region’s executives, elected officials and community leaders joined EDC at SeaWorld San Diego for our Annual Dinner.
 
EDC’s new Chairman Jim Zortman of Northrop Grumman Aerospace Systems shared his vision for the organization; Conrad Prebys was recognized as the Herb Klein Civic Leadership honoree for his many contributions to the region and Illumina’s former CEO Jay Flatley accepted the Duane Roth Renaissance Award on behalf of the company for its life changing genomics technology. 
 
Throughout the evening, guests had the opportunity to interact with SeaWorld animals and enjoy a unique array tastes and treats spread over a large section of the park. 
 
EDC’s Annual Dinner is underwritten by Point Loma Nazarene University, with additional support from sponsors.
 
March 4, 2016

Phil Blair

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“The local economy picked up steam in January after slowing a bit toward the end of 2015 – a typical trend as seasonal, holiday jobs phase out. Key sectors like manufacturing, construction, engineering, and health care all posted outstanding figures this month. These trends are also reflected in the demand for staffing services, which posted seven percent growth in employment in January.”
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

 

The California Employment Development Department (EDD) released statewide county employment data today for the January 2016 period, as well as revisions for 2015. This month’s data shows that San Diego's labor market fundamentals remained strong, as unemployment continued to fall amid solid and steady job growth.

The unemployment rate fell to 4.7 percent in January, the lowest since September 2007. The rate is down 0.1 points from the revised December number and 1.2 points from the previous year. The San Diego rate remained much lower than the statewide unemployment rate of 5.8 percent. The national unemployment rate rose substantially to 5.3 percent, well above the San Diego rate. The rate dropped in part due to a typical seasonal decline in the labor force from December to January, but the annual labor force increased by 6,100, with 16,900 fewer unemployed persons since January 2015.

Employment dropped back below 1.4 million in January, but seasonal declines are typical after the holiday season. More importantly, year-over-year employment went up by 38,200, a 2.8 percent increase. San Diego’s growth rate was again much higher than the 1.9 percent national rate. While the year-over-year growth slowed as 2015 progressed, the growth rate climbed again in January, which is a positive sign of momentum in the region.

The private sector drove employment growth in January, as private employment accounted for 90.3 percent of all employment growth over the year. The total private sector grew by 3.1 percent year-over-year, out-pacing the private U.S. growth rate of 2.2 percent.

Private growth was driven largely by service providers, but goods producers experienced another strong month. Manufacturers and construction companies drove 24.0 percent of private job growth in January. The two industries added a combined 8,300 jobs in January. The manufacturing industry in particular had a very strong month, posting 3.4 percent growth, compared to the national growth rate of 0.4 percent in the industry. Revisions showed that 2015 was an even stronger year than previously understood, with an annual 2015 growth average of 3.7 percent.


Professional, scientific, and technical (PST) services, which is strongly associated with the region’s innovation economy, slowed substantially in January, but it is unclear if there are complications with the EDD revision. Prior to the revision, the industry showed6.6 percent growth in 2015. With revisions, that growth is only 1.9 percent. It is unclear if job growth previously categorized as PST was moved to another sector like manufacturing or management, as national revised figures don't show the same dramatic shift. Architecture and engineering, a subset of PST services, showed solid growth of 5.1 percent despite the overall PST figure.

Other key drivers for growth included the region’s healthcare sector, which added 7,100 jobs and accounted for roughly one fifth of the region’s private job growth in January. Tourism experienced strong year-over-year growth, adding 5,900 jobs and contributing to 17.1 percent of growth.

In all, the January report released today showed many continued positive signs for San Diego's economy. The dramatic adjustment to PST employment raises some questions, and we will have to wait and see what was behind this revision by EDD. Otherwise, the region posted another month of solid yearly job growth, in large part due to the booming manufacturing and construction industries. Unemployment fell despite statewide and nationwide increases, and growth was spread out across a variety of key high-wage and base sectors in the region.

This report was performed with assistance from the CBRE research team in San Diego.

 

January 22, 2016

Phil Blair

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“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.

Highlights

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.

Unemployment Rate

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.

Total Nonfarm Employment

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.

YoY

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.

Contributions

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.

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.

This report was performed with assistance from the CBRE research team in San Diego.