Every week, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week. GNOTW is sponsored by Manpower.
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For the week of February 14, 2025, here’s what we’re reading:
As tariff threats loom and the country teeters on the brink of an all-out trade war, we all wonder what it means for our binational region, the future of the popular USMCA, and the hundreds of thousands of jobs tied to global commerce in San Diego. This will be a volatile period for the North American supply chains that enable this region to compete globally. What we have learned is that in the midst of uncertainty, we should return to what we know to be true about this binational region.
Navigating trade uncertainty in a binational region
As tariff threats loom and the country teeters on the brink of an all-out trade war, we all wonder what it means for our binational region, the future of the popular USMCA, and the hundreds of thousands of jobs tied to global commerce in San Diego.
This will be a volatile period for the North American supply chains that enable this region to compete globally. We have been here before.
In all the economic development work we do in this region, we strive to do it binationally, as a metropolitan region of close to seven million bisected by an international border. We travel together on investment attraction missions to South Korea or Singapore; we advocate together in Washington, D.C. and Mexico City for better infrastructure; and we work every day with counterparts in Tijuana to help companies create deep and resilient binational supply chains in critical industries.
What we have learned is that in the midst of uncertainty, we should return to what we know to be true about this binational region:
We know that our border economy, anchored by the busiest port of entry in the Western Hemisphere, has been a tremendous driver of economic growth, job creation, and competitiveness—not just for San Diego, but for America as a whole.
We know that what we do here is not trade, it is co-production: a single component—in an automobile or a medical device—may cross the border six to eight times, with value added at each stop, before finally reaching its customer. This means that 40 percent of what we import from Mexico was made by American workers in the first place. For imports from China by contrast, that number is less than four percent.
We know that this ability to regionally produce goods is a compelling reason why foreign companies invest here, and why local companies can compete globally and export their goods and technologies around the world, creating hundreds of thousands of jobs in this region alone.
And we also know how critical these supply chains—in aerospace, electronics, semiconductors, and medical devices—are to the broader U.S. economy. Notably, 60 percent of all medical devices imported to treat patients in hospitals in Boston and Atlanta are produced in this region and cross this border every day.
Finally, we know how important long-term investments in infrastructure—like Otay Mesa East or the Cross Border Xpress terminal—are to enhancing the remarkable economic engine we have created in this region.
Here in San Diego we have been finding solutions for decades, by working collaboratively to build border infrastructure, to facilitate trade and immigration, to fight crime and enhance education, and to create better outcomes for businesses, for consumers, and for communities.
The coming weeks and months will be bumpy—as barriers to trade and market access rise around the world—and they will be especially difficult for the 98 percent of U.S. exporters that are small businesses. Yet despite this turbulence, the overall calculus for American policy makers and global business leaders has been consistent for well over a decade: Regionalize supply chains closer to the customers they serve, and rebuild U.S. manufacturing capabilities in industries critical to national security and competitiveness. And there is no way to achieve those goals without relying on our North American neighbors. Even in the most extreme tariff scenarios, trade with Mexico and Canada would likely increase, but businesses and consumers would pay higher prices for the pleasure.
Our job in this moment is to be agile and creative in helping firms of every size—who have played by the rules and made significant investments in this country and its neighbors—to navigate uncertainty, continue to reach their customers and suppliers, and maintain jobs and supply chains in our most critical industries.
Every week, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week. GNOTW is sponsored by Manpower.
Get Good News of the Week in your inbox every Friday.→ Sign up
For the week of February 7, 2025, here’s what we’re reading:
Inclusive Growth Spotlight: San Diego County Regional Airport Authority
To celebrate and inspire the efforts of regional employers, EDC published a spotlight on the San Diego County Regional Airport Authority and its efforts to support local small business jobs—one of three pillars of the 2030 Inclusive Growth goals.
With the rest of our region’s business community, we’re closely watching updates around the new tariff on China and the paused tariffs on Mexico and Canada.
EDC’s Chief Strategy Officer Nikia Clarke shares in a formal statement: “We know that this will be a volatile period for the North American supply chains that enable this region to compete globally. We have been here before. Here in San Diego, from medical devices to semiconductors and consumer goods, our supply chains are so integrated that 40 percent of what we import from Mexico was made by American workers in the first place. Our job in this moment is to be agile and creative in helping firms of every size—who have played by the rules and made significant investments in this country and its neighbors—to navigate uncertainty, continue to reach their customers and suppliers, and maintain jobs and supply chains in our most critical industries.”
EDC and World Trade Center San Diego remain a resource and partner to our regional business community, offering free assistance, information, and guidance.
Need support? Contact our team.
EDC and WTCSD work directly with companies—free of charge—to help them grow in San Diego.
Every week, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week. GNOTW is sponsored by Manpower.
Get Good News of the Week in your inbox every Friday.→ Sign up
For the week of January 31, 2025, here’s what we’re reading:
Do you know a local student looking for an opportunity in San Diego’s fast-growing economy? EDC is now offering two competitive part-time internships providing students with valuable experiences in economic development, research, and talent programs.
To celebrate and inspire the efforts of regional employers, EDC’s new Inclusive Growth blog series will highlight San Diego companies helping to drive progress on the 2030 Inclusive Growth goals.
Launched in 2018 and informed by a partnership with the Brookings Institution, the Inclusive Growth initiative sets 2030 goals for San Diego related to increasing: 1) the supply of talent, 2) quality small business jobs, and 3) newly thriving households. The goals inform San Diego’s economic priorities and make the business case for economic inclusion.
Small businesses are the backbone of the economy
San Diego small businesses represent 98 percent of all firms and account for 59 percent of total employment, more than the national average. The impact that small business owners have on local jobs cannot be overstated, and yet, they struggle to keep up in an increasingly expensive market.
With a goal to add 50,000 new quality jobs in small businesses by the end of the decade, EDC data shows a surge in progress after years of steady recovery. In 2023, the region added 48,481 new quality* small business jobs, nearly surpassing the goal.
While the significant rise in quality jobs is reassuring, small businesses still struggle to compete. Employer-led efforts to support small businesses are critical to the future of the region’s economy, and the San Diego County Regional Airport Authority is among those contributing to the progress.
How SAN supports the ecosystem
As a regional anchor institution that generates more than $12 billion dollars in economic activity each year, the San Diego County Regional Airport Authority is a pillar of the economy. This fall will mark the completion of the first phase of the much-anticipated Terminal 1 at San Diego International Airport. The project will continue to generate economic opportunity for San Diego, primarily through jobs and contracting opportunities—key components of Inclusive Growth.
Learning to do business with the Airport can be difficult to navigate for small, local businesses. The Airport Authority’s Small Business Development (SBD) Program is the primary business unit responsible for opening the doors to smaller businesses so that they can compete for airport contracts.
The Airport Authority’s Procurement Department also maintains an outreach plan and tracks supplier diversity metrics for all solicitations. In collaboration with department contract owners, Procurement develops solicitations and facilitates the review, evaluation, selection, and onboarding of respondents. To engage local, small, and Veteran-owned businesses, the Airport Authority implements a variety of outreach strategies designed to ensure these businesses are informed of contracting opportunities and can be competitive when bidding on Airport projects.
Both SBD and Procurement, in partnership with all Airport Authority departments, encourage diversity in the Airport’s suppliers, professional services, contractors, and concessionaires.
The Airport Authority’s annual “Meet the Primes” event is open to the public and connects small businesses directly with prime contractors, airport staff, and other government agencies to learn how to navigate the contracting process. In addition, the Authority hosts various training and educational events throughout the year, covering how to work with the Airport and become certified for contracting opportunities.
“We also try to see if there are opportunities to unbundle projects to make certain aspects of the project smaller, so more businesses have the ability to compete,” said Craig Ruiz, Manager of the Airport Authority’s SBD Program. “We do targeted outreach to businesses in those different categories to ensure they are prepared to bid.”
On a project-specific level, the Procurement team proactively identifies businesses that can meet the needs of each project, ensuring all relevant vendors are informed and engaged through targeted outreach. The Procurement Department leverages platforms like PlanetBids, an e-procurement tool where businesses can register, access contracting opportunities, and connect with prime contractors for subcontracting opportunities, helping to broaden their reach and increase their chances of success. Small businesses are invited to signup for PlanetBids to access trainings and more information.
“Supplier diversity provides a greater range of solutions to projects, and helps our community flourish,” said Airport Authority Director of Procurement Jana Vargas. “Investing in these businesses creates a ripple effect that allows them to reinvest in their communities, creating a cycle of opportunities.”
The Airport Authority’s efforts continue to show results. For 2023, there was a 21 percent year-over-year growth in major construction project spending to Local Business Certified (LBC) firms, with more than $32 million awarded to LBCs.
Businesses in the Small Business Enterprise (SBE) category were awarded contracts representing almost $28 million in 2023. The federally funded Quieter Home Program awarded $1.4 million to Small Business Enterprises (SBE).
Join the movement
Progress on EDC’s 2030 Inclusive Growth goals is only achievable with and through the region’s employers who must be committed to scaling innovative and intentional solutions in San Diego. Anchors like San Diego County Regional Airport Authority are helping to collectively pave the way toward a more inclusive regional economy.
Endorse the goals, and be part of the change San Diego’s economy demands
*A quality small business job is defined as one provided by a company with fewer than 100 employees and that pays at least $23 per hour and provides healthcare benefits.
To learn more and get involved in EDC’s work, contact:
Every week, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week. GNOTW is sponsored by Manpower.
Get Good News of the Week in your inbox every Friday.→ Sign up
For the week of January 24, 2025, here’s what we’re reading:
The map is not the terrain, says EDC’s Sr. Director of Research and Economic Development Eduardo Velasquez in his 2025 Crystal Ball writeup. In the year ahead, EDC will keep its eye on how capital converts to job growth, how AI will boost productivity, and how mortgage rates will impact home sales—among other wildcards.
As I return to the crystal ball in 2025, never have I seen such a wide range of possibilities. Both the national policy and technology landscapes are primed for major disruptions that could shape San Diego’s economic fortunes in more ways than we can count. While the map provides a fairly clear direction, the terrain is difficult to predict and sure to throw us off course at some point, at least temporarily.
What is certain is that we have just wrapped up what should be viewed as another solid year for the U.S. economy. The nation added 2.2 million jobs, a growth rate slightly above the average of the last 10 years. The economy expanded at an annualized growth rate of 3.1 percent, primarily driven by consumer spending, exports, business investment, and federal government spending. Inflation has continued to moderate with the price of energy and goods falling, while the price of services continues to rise.
I see the money, show me the jobs
Locally, San Diego continues to draw venture capital to fund young companies in both Tech and Life Sciences, to the tune of nearly $6 billion in 2024. The region also added jobs, but at about half the rate of the U.S. Recent job growth has been driven by locally serving industries like full service restaurants, whereas our innovation industries have shed jobs during the last 12 to 18 months. Some of this is right sizing after a pandemic fueled surge in Life Sciences. Some of it is driven by federal incentives that have led to relocation and expansion of Manufacturing jobs outside our region.
Meanwhile, there are $132 billion in federally appropriated funds for renewable energy that remain unspent. San Diego has a small but growing Cleantech cluster that continues to innovate and provide high-paying jobs.
Additionally, the private sector has more than bought into the promise of AI, with a third of the large companies looking to pour tens of millions of dollars more into the tech and build upon the positive returns on the past investments. The question here is whether San Diego can catch the wave of investment that is going into all these foundational and enabling technologies so that our region can also benefit from the growth will bring.
AI’s double-edged sword
Speaking of AI, 2025 may be the year that will truly test the hype. Yes, investment is up, way up (see last paragraph), but job postings requiring skills in developing AI have barely budged since the launch of ChatGPT in November 2022.
Yet, the application of GenAI is seemly impacting the skills employers are looking for in new hires. Since 2019, six of the 10 fastest growing occupations in Life Sciences have been for non-scientific and non-technical roles. In Tech, seven of the 10 fastest growing occupations have been non-engineering, non-software roles. In fact, demand for software developers has fallen 80 percent during that time—the occupation that has topped job postings lists for the last decade in San Diego. Time will tell if the AI hype is real, but for now, there are fewer Tech jobs in San Diego than there were pre-pandemic and AI’s impact on the labor market is certainly a factor.
Affordability is about payments, not prices
Another factor impacting San Diego’s Tech cluster is remote work availability, which was lower in 2024 than in 2023 and lags the national average. Remote jobs outside of the region can be especially attractive considering San Diego’s high cost of living.
However, 2024 did bring some relief in terms of housing costs. Rents in San Diego grew much more slowly compared to recent year, up 2.6 percent. The median-priced home fluctuated throughout the year but ended where it began at just above $1 million. However, mortgage rates continued to rise, driving up the monthly payment on that same million-dollar home by $730. There are signs that it is less of a seller’s market: homes have not sold above asking price for most of the past 12 months and for-sale inventory is higher than it’s been in years. Still, the big variable in the housing market is whether mortgage rates can fall enough to spur owners currently locked into historically low rates to sell.
The year ahead
These trends—converting capital to job growth, harnessing AI to boost productivity, and unlocking home sales—will help define our regional economy in the year ahead. Of course, so will several other wild cards, such as looming public budget constraints, the prospect of trade wars, global conflict, and climate change impacts. Nonetheless, the goal remains the same: to maximize San Diego’s economic prosperity and global competitiveness through an inclusive economic development agenda, and doing so with and through our network of 150+ investors and regional partners.
In 2025, EDC will focus on amplifying the economic impact of large-scale, mixed-use developments to grow and retain quality jobs and deliver much needed housing. We will also work to elevate the value of our unique assets as a military economy, cross-border region, and innovation hub. We know where we are and where we want to go—getting there will certainly be a ride.
Every week, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week. GNOTW is sponsored by Manpower.
Get Good News of the Week in your inbox every Friday.→ Sign up
For the week of January 17, 2025, here’s what we’re reading:
Need help applying for up to $215 million in Cal Competes Tax Credits? EDC’s expert team has helped 39 local companies secure more than $86 million in credits. If your business is expanding or retaining jobs in California, we’re here to support your application.
Every week, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week. GNOTW is sponsored by Manpower.
Get Good News of the Week in your inbox every Friday.→ Sign up
For the week of January 10, 2025, here’s what we’re reading:
Case Study: EDC supported NY-based fintech’s expansion into San Diego
n looking for a second U.S. office, New York-based fintech company Prism Data leveraged EDC’s free site selection and research services to understand the region’s value proposition. Ultimately, the company selected San Diego and has set up shop in La Jolla, supporting 10 jobs and counting.
