Skip to Content
The Big Picture San Diego Blog


March 2019

March 22, 2019

Each month the California Employment Development Department (EDD) releases employment data for the prior month. This edition of San Diego's Economic Pulse covers February 2019. Check out EDC's research bureau for more data and stats about San Diego's economy. 

Thank you to Manpower San Diego for making this possible.

Highlights include:

·         The region’s unemployment rate was 3.5 percent in February, down from a revised 3.8 percent in January, and unchanged from the year-ago estimate of 3.5 percent.

·         San Diego’s unemployment rate remains below both the state rate of 4.4 percent and the national rate of 4.1 percent.

·         The labor force grew by 3,700 workers during the month and is now up 24,600 compared to a year ago.

·         Total nonfarm employment is up 9,700 in February and up 19,900 over the year.

·         The largest employment gain over the year occurred in educational and healthcare services, which added 6,900 jobs. 

March 20, 2019

Duane Roth was a beloved San Diego community leader and friend. He knew San Diego was destined to do incredible things and pushed us every day to fulfill our potential. To honor his legacy, we created the Duane Roth Renaissance Award in 2014 to honor an organization whose work is creating outstanding inventions, innovations or breakthroughs that have changed and improved the world around us - the same way Duane looked to improve San Diego. 

We are deeply honored to announce ResMed as the 2019 Honoree of the Duane Roth Renaissance Award, presented by UC San Diego.

ResMed was founded in San Diego in 1989 and has become a world leader in cloud-connectable medical devices and software, transforming care for people with sleep apnea, COPD and other chronic diseases. Meanwhile, its comprehensive out-of-hospital software platforms support the professionals and caregivers who help people stay healthy in their home or care setting of their choice. ResMed has quickly become the gold standard in remote and self-monitoring software, with more than eight million patients worldwide remotely monitored by clinicians. Its monitoring tools are shown to increase patients’ therapy adherence rates and clinicians’ business efficiencies.
 
Revenues for ResMed's first fiscal year in 1990 were less than $1 million, and there were only 9 employees. Today, ResMed is an S&P 500 company with a market cap exceeding $10 billion and yearly revenues above $2 billion. It employs more than 6,000 people globally and operates in more than 120 countries.
 
Dedicating seven percent of annual revenue to research and development, ResMed is committed to advancing innovative technology in sleep and respiratory medicine, to commercializing innovative products that incorporate these technologies around the world, and exercising the highest standards of ethics and quality at all times.
 
Please join us at SeaWorld on May 2 to celebrate ResMed and more. Get your tickets.
 
 
TAGS
March 14, 2019

In a world where Internet-enabled devices have become embedded in everyday objects, the need for cybersecurity has never been more vital. San Diego's roots in wireless technology, combined with its top tier engineering talent and military presence, make it a fertile ground for cybersecurity talent. And that's exactly what EDC's most recent economic impact study found.

cybersecurity economic impact numbers in SD

Commissioned by San Diego Cyber Center of Excellence, a San Diego-based nonprofit organization dedicated to accelerating the region’s cyber economy, the study found that San Diego had more than 150 core cyber firms that employ 4,920 people in the region. The Navy’s Space and Naval Warfare Systems Command (SPAWAR) provides an additional3,530 jobs to San Diego’s cybersecurity industry. In total, there are 8,450 direct jobs – up 11 percent from 2016 (faster than the regional employment growth of 3 percent). 

"Too often San Diego worries about falling behind Silicon Valley or the East Coast, but this study conveys we have the talent and workforce to punch above our weight," said Rear Admiral (Ret), Ken Slaght, CCOE chair and president of Cyber Center of Excellence. "San Diego's premier educational institutions, existing industry base and robust federal assets, seed not only the cyber workforce but the innovation needed to protect our nation."

The study was launched at Qualcomm on March 13, and featured a keynote from Dr. John Zangardi, CIO at the U.S. Department of Homeland Security, as well as an in-depth look at the interactive research tool, presented by EDC's Research Director Kirby Brady.

View the interactive tool here.

March 12, 2019

With many economists forecasting an economic downturn in the years ahead, small businesses are often the most vulnerable to a changing economy. However, a new survey released by Innovate78 – a collaboration among Carlsbad, Escondido, Oceanside, San Marcos and Vista – found that small businesses are feeling optimistic about the future. In fact, 85 percent of small businesses along the 78 Corridor project financial growth over the next two years, demonstrating stability in San Diego’s North County.

“Most small business owners are so busy running their companies, that they don't have time to step back and leverage the resources available to them,” said Michelle Geller, Economic Development Manager for the City of Escondido. “As part of Innovate78, we are taking a collaborative, data-driven approach to understand their business’ needs. Using the data from this study, we will be able to better collaborate with regional partners to ensure these businesses remain viable and a key economic engine in North County.”

The Small Business Ecosystem Along the 78 Corridor” surveyed 164 small businesses – firms with fewer than 100 employees – as a way to uncover insight and gain a deeper understanding of small business perceptions of the regional business climate.

According to EMSI, small businesses make up 98 percent of the 78 Corridor’s businesses – mirroring the broader San Diego region.

KEY FINDINGS:

  • Businesses are growing.  Over the next two years, 85 percent expect to grow in terms of financial performance.
  • Companies have a focus on local customers. In total, 69 percent said their customers were primarily in Southern California, whereas only 7 percent said their customers were primarily international.
  • Job growth will continue to be fueled by small businesses. Over the next two years, 45 percent of 78 Corridor small businesses project employment growth, while only 6 percent say they will have fewer employees.
  • Generating new sales is the biggest need for small business owners. A majority –88 percent – of small businesses said sales/new business was a challenge. As a way to generate sales, survey respondents identified ‘marketing’ as their highest future priority. 
  •  Connecting to resources is imperative. Small business identified needing assistance with financing, marketing and business development. However, many cited a lack of knowledge of available resource providers, like municipalities, economic development organizations, and chambers of commerce.

 “A quick glance at the data confirms that small businesses are a key driver for our economy. But when you dig a little deeper, you uncover trends that are key to understanding the 78 Corridor’s competitive advantage,” said Kirby Brady, director of research at EDC and the author of this study. “The study shows that small businesses along the 78 Corridor are both profitable and resilient.”

The study concluded that 73 percent of Innovate78 small businesses reported financial growth in the past two years, and 62 percent of businesses have been operating for more than five years, a metric often associated with resiliency. According to the Small Business Administration, nearly 50 percent of small businesses fail before the five-year mark. While not a direct comparison, this data suggests that small businesses along the 78 Corridor are outlasting U.S. small businesses.  

CHALLENGES AHEAD:

While Innovate78 businesses are faring well collectively, many challenges remain. With the 78 Corridor’s December 2018 unemployment rate at 3.2 percent, finding skilled talent is increasingly difficult – a trend many rapidly growing regions across the country are facing.

 “From hiring to finding new customers, I face many challenges on a day-to-day basis that I did not anticipate before starting my own business,” said Jiang Fan, president of Carlsbad-based American Lithium Energy. “While these are trials that many small business owners face, I believe that because of the 78 Corridor’s unique access to both San Diego and Orange County’s labor market, as well as the abundant resources the cities offer, that there’s never been a better time to own a small business on the 78 Corridor.”

If you are a business along the 78 Corridor and are looking to connect with available resources, please visit Innovate78’s resource page and/or contact your city’s economic development department directly.

Read the study here.

 

March 6, 2019

Mayor Kevin L. Faulconer, Apple Vice President Kristina Raspe and regional leaders announced today that the technology company will increase its employment in San Diego by an additional 20 percent over previously announced numbers.

Apple now plans to add 1,200 employees in San Diego within the next three years, with almost 200 of those employees in place by the end of the year. As part of a nationwide expansion, Apple announced in December that it would establish a new site and job opportunities in San Diego.

“Apple has been a part of San Diego for nearly 20 years through our retail presence and small, fast-growing teams – and with this new investment we are proud to play an even greater part in the city’s future,” said Tim Cook, Apple CEO. “You don’t have to try too hard to convince people that San Diego is a great place to live, work and do business, and we’re confident our employees will have a great home among the community there.”

Apple cited San Diego’s successful efforts to diversify its economy, incubate new industries, broaden its talent pool, build partnerships between academia and the business community, and maintain a superb quality of life as reasons for its expansion to America’s Finest City.

“There isn’t a city in the U.S. that can offer the talent, infrastructure and community that San Diego can,” said Mayor Faulconer. “I invited Apple to increase its growth in San Diego, and on behalf of a grateful city we’re delighted they accepted our invitation. Apple’s inventions have literally changed the world, revolutionizing how we communicate, create, do business and learn. As Apple continues to innovate and introduce new products, we will be proud to say that San Diego is a part of it.”

Apple and Mayor Faulconer met over recent weeks to discuss the company’s growth plans.

“We were excited to announce in December that we planned to grow our presence here and add one thousand jobs, and then Mayor Faulconer and members of his team very thoughtfully and convincingly walked us through everything the San Diego region has to offer,” said Kristina Raspe, Apple Vice President of Global Real Estate and Facilities. “So we went back and sharpened our pencils and increased our investment.”

San Diego will become a principle engineering hub for Apple with new positions distributed across a number of specialty engineering fields, to include both hardware and software technologies. While Apple hasn’t yet settled on a location, plans are also underway to develop a campus that will feature hundreds of thousands of square feet of office, lab and research space. 

"Apple - with its vision, its brand and its products - could make a home anywhere across the globe,” said San Diego Regional Economic Development Corporation Chair Janice Brown. “By selecting San Diego, they are showing that they value a place that prioritizes a rich talent pool, inclusive economy, and commitment to changing the world for the better."

In addition to its corporate and retail presence, Apple’s app ecosystem contributes to the San Diego economy. App developers who call San Diego home create products that reach customers around the world.

“Apple’s decision to increase the company’s presence in San Diego is a testament to the strong, talented workforce and intellectual capital we have in the region,” said Jerry Sanders, President and CEO of the San Diego Regional Chamber of Commerce. “We look forward to the opportunities this investment brings for our entire region and the role San Diego will play in the future of Apple.”

Apple Fashion Valley, opened in 2001, was the company’s 21st store in the world. Apple currently employs 600 retail employees at its five stores in the region.

The company’s local teams over the years have helped support a number of organizations in San Diego, including the Jacobs & Cushman San Diego Food Bank, Make-A-Wish San Diego, San Diego Humane Society, American Cancer Society, Zoological Society of San Diego, Cards for Kidz NFP, Braille Institute San Diego Center, and Challenged Athletes Foundation. 

 

TAGS