Category: News

San Diego’s role in the Navy’s fleet sustainment mission

By San Diego Regional EDC,

This is a developing story; last update was made May 2024.

In April 2023, San Diego Regional EDC and its partners hosted the Shipbuilding Regional Industrialization Pilot (SHIP) Regional Visioning event at UC San Diego Park & Market.

The day-long workshop was the first part of a multi-state effort to understand unique regional challenges facing the nation’s defense industrial base. Critical partners in the effort included a Navy Program Executive Office (PEO SSBN), California Manufacturing Technology Consultants (CMTC), Port of San Diego Ship Repair Association (SDSRA), the Office of Congressman Scott Peters (CA-50) and more. The day’s speakers included Congressman Scott Peters, Scott Frost at Industrial Base Analysis and Sustainment (IBAS); Jess Key, Manager of Supplier and Workforce Development at Electric Boat; Gordon Rutherford, President of SDSRA; Kyle Turner, Program Manager at PEO SSBN; and a panel discussion with members of industry.

The SHIP Regional Visioning event gathered diverse industry, education, policy makers, and civic leaders’ perspectives on critical priorities for the shipbuilding industrial base, including:

  1. Industrial base workforce
  2. Technology and innovation
  3. Strategic outsourcing
  4. Data analytics and proactive risk management
  5. Material readiness and sustainment
  6. Supply chain infrastructure and engagement

ABOUT THE SHIP PROGRAM

In collaboration with the Navy, the U.S. Department of Defense’s (DOD) IBAS program office launched the SHIP program to help regions address supply chain and workforce gaps across the defense shipbuilding industry. IBAS selected the Texas A&M Engineering Experiment Station’s SecureAmerica Institute to deliver data-driven and relationship-based roadmaps to scale and deploy regional workforce and technology adoption solutions that simultaneously support the near-term and future needs of the shipbuilding industrial base.

In addition to San Diego, these efforts are also taking place in the New England and Great Lakes regions. In each region, the Regional Visioning workshop is followed by series of deep dives into topics that arose during the workshop, as well as a Threatcasting activity.

The SecureAmerica Institute then delivers key event takeaways, as well as investment and solution recommendations, to the IBAS team.

TALENT FLOW ANALYSIS FINDINGS

IBAS, SecureAmerica Institute, and other implementation partners rely on regional champions and local experts to help guide their understanding of each region. At the SHIP Regional Visioning event, San Diego Regional EDC presented preliminary findings from its ongoing Talent Flow Analysis project in collaboration with San Diego’s major defense industrial base employers over six months.

What we learned: Poor communication between regional industry leaders and education partners drives a mismatch of talent supply and demand, exacerbated by a lack of shared strategy around industry recruitment efforts.

Additionally:

  • Long-term, there is shrinking interest in the skilled trades. Improved demand signaling, as well as employer engagement in career exploration at the K-12 level could open doors for more young people to be trained in the skilled trades.
  • DOD contracting methods and San Diego’s high cost of living continue to put pressure on the existing talent pipeline. This incentivizes talent to transition to different skilled trades-reliant industries or move outside the region altogether.

read the full report

SHIP REGIONAL VISIONING TAKEAWAYS

During the event, breakout groups with equal representation from each group of participants (industry, education, policymakers, and civic leaders) covered the critical topics listed above in three separate phases:

  1. Obstacles: What are the consistent themes that are driving the challenges in the area? Groups saw consistent obstacles with awareness and perception, cost of living and compensation, skilled manufacturing workers, contracting and supplier support, and inconsistent demand signaling.
  1. Enablers: What entities exist that play a critical role in addressing the identified obstacles? Groups identified education and training programs, marketing and communication initiatives, technology incubators, and government and policy support as enablers.
  1. Resourcing: What resources could be adapted, scaled, or started to tackle the identified challenges? Conversations centered around workforce education, training, and recruiting program areas. Some also highlighted supply chain, policy and economic, and infrastructure program areas.

Taking Action

By the summer of 2023, the SHIP team assembled a roadmap and presented investment recommendations based on the data collected. EDC convened key partners including San Diego Workforce Partnership (SDWP), San Diego/Imperial Counties Community College Consortium, San Diego/Imperial Center of Excellence for Labor Market Research (COE), East County Economic Development Council, and California Manufacturing Technology Consulting (CMTC) to submit five white papers indicating how funds could be deployed in the region to achieve the investment recommendations made by the SHIP team. The collaborative anticipates we will receive information about regional investments into new and existing programming by the end of Summer 2024.

In the meantime, EDC, through support from BlueForge Alliance, is conducting an employer working group that builds on the original Talent Flow Analysis project. This group will produce workforce demand data looking into 2025 and help local partners understand what interventions will be most useful in strengthening the talent pipeline of skilled tradespeople into defense industrial base companies. The results of the working group will be available in June 2024, in conjunction with the release of funding.

Interested in getting involved? Please reach out to Director of Talent Initiatives Taylor Dunne for more information.

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Taylor Dunne
Taylor Dunne

Director, Talent Initiatives

 

EDC, SBDC research show talent acquisition is greatest challenge to small businesses

By Sang Nguyen,

Small businesses are one of the cornerstones of San Diego’s regional economy. More than 61 percent of all jobs in the region are within a business that employs less than 100 employees, which is nearly double the national average.

However, small businesses are also the most prone to economic downturns relative to their larger peers. The pandemic caused approximately half of all small businesses to face extended closures locally, with many shutting down permanently. On top of that, a job at a small business will pay 34 percent lower wages, on average, than a job at a larger business.

To better understand where small businesses currently stand and their evolving needs in this ever-changing business climate, EDC, San Diego & Imperial Valley Small Business Development Center (SBDC), and BW Research conducted a survey of small businesses across San Diego and Imperial Counties. This survey was done in partnership with SBDC to inform its network of advisors to best provide support and programming. Here’s what we learned:

expansion of workforce

Job growth for small businesses has been flat for the past two years. Nearly half of small businesses surveyed indicated no change in employment and an additional 19 percent reported a decrease in employment. This trend is applicable to small businesses in most industries. Businesses in food service, tourism, and hospitality industries experienced less of a decline in employment since the end of 2021. This could be due to pandemic-induced tourism slowdowns when travel was limited. On the other hand, firms in the construction and design industries reported an expansion in employment 12 percentage points above the average, reflecting the region’s investment in infrastructure and development.

However, when asking small businesses about their near-term outlook, nearly one out of three expect to increase hiring over the next 12 months. Firms in the high-paying innovation economy (life sciences, emerging technologies, information, and communication technologies industries) stood ahead of the pack, with 43 percent expecting to add to their workforce. Additionally, 48 percent of small businesses that have a customer base that expanded outside the region had a positive outlook, compared to only 23 percent of firms that serve customers primarily in the region.

Hiring is the greatest challenge

The most significant challenge that small businesses face is recruiting and hiring qualified staff. More than half (55 percent) of small businesses reported some level of difficulty in talent acquisition. Mid-sized (10 to 24 employees) and larger small businesses (25 to 100 employees), as well as firms with more years of experience under their belt, struggle more with finding talent relative to micro businesses (two to nine employees) and younger firms. As a firm grows over time, expansion in its workforce is necessary, but finding the right people to fill roles is hindering most small businesses. This becomes more of a problem when considering that larger businesses are competing for the same talent. Read more about San Diego’s talent outlook on our talent dashboard.

Other significant challenges for small businesses include navigating rules and regulations (44 percent), retaining qualified staff (43 percent), finding affordable commercial or working space (43 percent), and securing necessary funding (43 percent). Younger small businesses are more likely to have difficulties with issues in the early stages of a business like finding an affordable working space or securing necessary funding. More experienced firms are more likely to have difficulties attracting and retaining talent as they look to expand.

Relocation risk

Of small businesses surveyed, seven percent revealed they are planning or exploring a move out of the region. Additionally, 20 percent indicated that although they plan to stay in the region for now, they have considered a move out of the region at some point in the future. When looking at retention by industry, the distribution and logistics industry has the highest proportion of firms planning to leave the region. Furthermore, 35 percent of responding firms in the high-paying, fast-growing innovation economy industries have considered leaving the region—the highest among all industry groups.

Those small businesses that have considered or are planning to leave the region have more difficulty with facets of doing business. Three in five small businesses that are planning to move out of the county report difficulty in navigating these rules and regulations. More specifically, labor regulations, permitting, and taxes are the most common issues that firms run into. Finding an affordable working space and securing funding are also challenges more commonly found in firms that are likely to leave.

Small businesses that rated local programs and resources as a weakness are more likely to leave the region than those that rated it as a strength. Connecting these small businesses to the right resources can help alleviate the challenges they are facing. Greater and more targeted awareness of what is currently available to help small businesses, like EDC business services and SBDC services, could help.

Tap into local resources

If you are a small business in need of assistance, connect with SBDC and its network of advisors, and access on-demand training and live workshops. For additional resources to help your business grow see EDC’s Doing Business Here page. Additionally, learn more about EDC’s Anchor Institution Collaborative, which aims to increase small business resilience by connecting them to large buyers in the region.

SEE THE ADDITIONAL FINDINGS FROM THE SURVEY HERE

San Diego’s Good News of the Week – May 3, 2024

By Liz Muthoni,

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 San Diego.

Get Good News of the Week in your inbox every Friday. → Sign up

For the week of May 3, 2024, here’s what we’re reading:

…and here are some events and opportunities:

EDC, Apprenti partner to grow local talent pipeline with apprenticeships

Together with Apprenti, EDC invites companies with advanced manufacturing operations to hire registered apprentices in order to create a pipeline of critical, diverse, and emerging talent and support our local workforce. As part of this program, apprentices will tentatively begin in Summer 2024, with training completed and full-time onboarding in Winter 2026.

Learn More and Participate

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Liz Muthoni
Liz Muthoni

Coordinator, Economic Development

San Diego’s Good News of the Week – April 26, 2024

By Liz Muthoni,

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 San Diego.

Get Good News of the Week in your inbox every Friday. → Sign up

For the week of April 26, 2024, here’s what we’re reading:

…and here are some events and opportunities:

Webinar: New Cargo Opportunities at Port of San Diego

Together with the Port of San Diego, World Trade Center San Diego invites you to join our April 30 webinar to learn about the heavy-duty all-electric cranes recently installed and what they mean for your business. You’ll also hear updates on other inland projects that emphasize energy transition.

Register Here

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Liz Muthoni
Liz Muthoni

Coordinator, Economic Development

San Diego’s Good News of the Week – April 19, 2024

By Liz Muthoni,

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 San Diego.

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For the week of April 19, 2024, here’s what we’re reading:

…and here are some events and opportunities:

EDC’s Annual Dinner: June 18 at Petco Park

EDC invites you to join us at our Annual Dinner together with more than 900 business and community leaders. We’ll enjoy a brief program honoring our Life. Changing. awardees followed by dinner and networking at the new Gallagher Square at Petco Park.

Last Day for Early Bird Tickets

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Liz Muthoni
Liz Muthoni

Coordinator, Economic Development

Create diverse talent pipelines with apprenticeships

By Olivia Jones,

EDC, Apprenti partner to grow local talent pipeline

The region’s advanced manufacturing companies employ 40,581 skilled San Diegans who lead on the development and production of cutting-edge, life-changing technology. However, amid a nationwide talent shortage, companies are challenged to maximize their growth.

Join San Diego Regional EDC and Apprenti to explore how registered apprenticeships can help employers create a pipeline of critical, diverse, emerging talent, and support our local workforce. Together with Apprenti, EDC invites companies with advanced manufacturing operations to hire registered apprentices. Apprentices will tentatively begin in Summer 2024, with training completed and full-time onboarding in Winter 2026.

THE PARTNERS

EDC recognizes talent as the cornerstone of economic growth and works to leverage employer engagement, work-based learning, and unique company solutions to broaden San Diego’s pool of diverse, qualified talent. In complement, Seattle-based non-profit Apprenti provides the resources to support employers in developing a strong apprenticeship pipeline. Through this partnership catalyzed during EDC’s Leadership Trip, the Apprenti program sources, assesses, trains, and places talent for participating companies. The program also manages the administrative process of registering through state and federal systems, including access to braided funding to support program investments.

WHO SHOULD PARTICIPATE?

Companies that require a workforce with advanced manufacturing related technical skills but not a traditional degree. Example roles include:

  • Optics Manufacturing Technician
  • Electromechanical Technician
  • Precision Machinist
  • Automation and Controls Technician
  • Instrumentation and Controls Technician
  • CNC Operator and Programmer
  • And other highly technical manufacturing roles

WHY PARTICIPATE?

SAMPLE TIMELINE

  • Summer 2024: Apprentices begin training in the classroom half-time, and working on the job half-time.
  • Winter 2026: Apprentices complete classroom training, apprenticeship ends, and employers bring individuals on full-time.

PROGRAM MANAGEMENT FEE

  • EDC investors: $3,000 per apprentice
  • Non-investors: $3,500 per apprentice

Fee covers services by Apprenti and EDC in sourcing talent, tests screening candidates, completing state and federal administrative requirements, providing ongoing apprenticeship programmatic support, and coordinating with training partners around funding and qualified curriculum. It does not include the cost of related technical instruction (which could be as low as $0) nor wages for the apprentice, which must be at least 60 percent of the employer first year wage paid to employees in this role at your company.

Interested in bringing on apprentices in your IT Teams? We can help with that too!

To learn more or join the cohort, contact:

Taylor Dunne
Taylor Dunne

Director, Talent Initiatives

 

San Diego’s Good News of the Week – April 12, 2024

By Liz Muthoni,

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 San Diego.

Get Good News of the Week in your inbox every Friday. → Sign up

For the week of April 12, 2024, here’s what we’re reading:

…and here are some events and opportunities:

EDC’s Annual Dinner: June 18 at Petco Park

EDC invites you to our Annual Dinner, gathering more than 900 business and community leaders to celebrate our region and organization. On June 18, we’ll enjoy a brief program honoring our Life. Changing. awardees followed by dinner and networking at the new Gallagher Square at Petco Park.

Hear More From Mark

Business information and resources page

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Liz Muthoni
Liz Muthoni

Coordinator, Economic Development

A note from Mark on EDC’s Annual Dinner

By Mark Cafferty,

Honoring Life. Changing. San Diegans

Dear EDC investors and partners,

I hope this message finds you all well and enjoying springtime in San Diego. As we speed through April, our entire team is turning its attention to our upcoming Annual Dinner.

As many of you know, for more than 20 years, San Diego Regional EDC has presented an award at our Annual Dinner that focuses on community and economic service and leadership. Originally called “The Spirit of San Diego Award,” this recognition was later changed in 2010 to honor the memory of Herb Klein—a truly wonderful San Diego leader who was noted for bringing people together to work on many of San Diego’s most challenging political and economic issues. More than anything, both iterations of this award were structured to recognize an individual who goes ‘above and beyond’ their day job to help make San Diego a better place, whether through philanthropy, volunteerism, vision, action, etc.

About nine years ago, EDC added a second award in memory of Duane Roth, another beloved San Diego leader and a tireless promoter of San Diego’s innovation economy. By contrast, this award would recognize a business or institution (not an individual) that was ‘changing the world from San Diego’ through technology, science, or innovation (think Qualcomm, the Salk Institute, Illumina, etc.). Duane was passionate about San Diego’s smart and life-changing companies and ideas, and this was EDC’s way of honoring his leadership, service, and memory.

Over the last few years, we have made efforts to ensure that the criteria for these awards are not only reflective of the leaders who inspired them, but of the changes in EDC’s work—with continued alignment to our core values of integrity, accountability, collaboration, and inclusion. The awards have now become known as our “Life. Changing. Awards,” an ode to our region’s brand identity and reflective of the EDC that businesses and individuals are investing in today. And if there were ever two words that could encapsulate the impact of Herb Klein and Duane Roth, those would certainly be them.

Meet our 2024 awardees

This year, our individual award will be given to (retired) Vice Admiral Jim Zortman. Admiral Zortman is one of the most highly decorated Naval officers to call San Diego home. He is the former Commanding Officer for Naval Air Forces, San Diego and Naval Air Forces, Pacific Fleet. He is also the retired Senior and Sector Vice President for Global Logistics and Operations Support for Northrop Grumman Aerospace Systems. While at Northrop Grumman, he led the effort to make San Diego the company’s ‘center for excellence’ for unmanned systems. Admiral Zortman also served on the Chairman’s Competitiveness Council—a group of senior business and university leaders who worked to carve out meaningful and independent directions and focus areas for EDC, the San Diego Regional Chamber of Commerce, and Connect. He served on EDC’s board of directors and executive committee for more than 10 years. From 2016-2018, Jim served as EDC’s board chair and made ‘economic inclusion’ his focus area and platform. Feeling he had been a part of meaningful and intentional efforts made by the U.S. military to strengthen and diversify its officer ranks, and by Northrop Grumman to increase the number of women and people of color within its engineering, technical, and executive workforce, Jim felt that EDC could be a powerful catalyst to establish inclusion as an economic imperative within the San Diego region. Since Jim’s time as chair, every new EDC board chair has continued to build off the foundation he established and has kept inclusion at the forefront of EDC’s goals and work, which now so many of you have committed to and engaged in with us.

We will be presenting this year’s business award to a legendary San Diego company—Solar Turbines.

Noorfadzreena Binti Mahmud, Field Service Supervisor and Eliza Porterfield, District Service Manager
At the Customer Experience Center in San Diego California

Solar Turbines designs and manufactures industrial gas turbines for onshore and offshore electrical power generation, for marine propulsion, and for producing, processing, and transporting natural gas and oil. Headquartered in San Diego for nearly a century, Solar Turbines has more than 8,000 employees in dozens of countries around the world, with the majority of them working in the San Diego region. For decades, the company has represented the best elements of our binational economy with substantial manufacturing operations in Tijuana/Northern Baja. Solar Turbines has been a constant partner and investor in workforce development and training programs throughout San Diego and Imperial Counties, and has one of the most dedicated and diverse workforces in our region. It is also important to note that the corporate leadership of Solar Turbines has chosen to remain in San Diego and California despite aggressive efforts by other states to lure them away.

As champions of our organizational core values, examples of what Duane Roth and Herb Klein stood for, and critical partners in building a stronger, more vibrant, and more inclusive region, we could not be prouder to recognize Admiral Jim Zortman and Solar Turbines with our 2024 Life. Changing. Awards. Hoping that you will all join us at Petco Park on June 18 to give them the celebration and thanks they deserve.

Learn more and buy your tickets at EDCannualdinner.com.

With continued thanks for your leadership and support—Mark

Mark Cafferty
Mark Cafferty

President & CEO

Read EDC’s Monthly Report

Special thanks to our award sponsors Boston Consulting Group, San Diego State University, and UC San Diego.

San Diego’s Good News of the Week – April 5, 2024

By Kyle Winnick,

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 San Diego.

Get Good News of the Week in your inbox every Friday. → Sign up

For the week of April 5, 2024, here’s what we’re reading:

…and here are some events and opportunities:

Case study: EDC, regional partners cut ribbon on new Samsung Semiconductor sales office

Together with Mayor Gloria and the San Diego Regional Chamber of Commerce, EDC supported Samsung Semiconductor in celebrating the opening of its new Memory and Foundry customer engagement office. Supporting 20 staff and counting, the office marks the start of more regional expansion and will serve customers in San Diego and Southern California.

Read More

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Kyle Winnick
Kyle Winnick

Coordinator, Marketing

San Diego’s Good News of the Week – March 29, 2024

By Liz Muthoni,

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 San Diego.

Get Good News of the Week in your inbox every Friday. → Sign up

For the week of March 29, 2024, here’s what we’re reading:

…and here are some events and opportunities:

U.S. Commercial Service Export Compliance Roadshow

Join World Trade Center San Diego for a dynamic one-day program on April 17 featuring speakers from the U.S. Commercial Service, the Bureau of Industry and Security, U.S. Customs and Border Protection, and more. Whether you’re a seasoned exporter or new to the international market, this event will equip you with the network, knowledge, and tools necessary to navigate exporting while adhering to critical regulations.

Register Here

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Liz Muthoni
Liz Muthoni

Coordinator, Economic Development