Each month the California Employment Development Department (EDD) releases employment data for the prior month. This edition of San Diego’s Economic Pulse covers November 2020 and reflects some effects of the coronavirus pandemic on the labor market. Check out EDC’s research bureau for more data and stats about San Diego’s economy.
Key Takeaways
Unemployment falls to 6.6 percent.
San Diego retailers gear up for holiday season by hiring 1,800 employees, but sales continue to suffer.
Shop local this holiday season and wear a mask.
Labor Market Overview
The region’s unemployment rate was 6.6 percent in November, down from a revised 7.5 percent in October 2020, and still more than twice the year-ago estimate of 2.9 percent. Unemployment continues to increase in San Diego’s unincorporated and poorer areas, while falling in wealthier areas. The highest unemployment area in the region was Bostonia at 12.4 percent followed by National City at 10.3 percent, and the lowest was Solana Beach at 3.6 percent.
The region’s unemployment rate remains lower than California’s unemployment rate of 7.9 percent, but slightly higher than the national rate of 6.4 percent. While unemployment continues to fall, much of the improvement can be attributed to government support. In fact, unemployment claims increased again this week showing as emergency aid has dried up—proof the local job market could once again backtrack in the coming months.
Total nonfarm employment increased by 14,300 in November. Trade, transportation, and utilities accounted for the largest monthly gains, adding 8,200 jobs last month, primarily concentrated in retail trade (up 1,800 jobs). Even so, compared to a year ago, retail trade is still down 6,200 jobs. Professional and business services followed with an increase of 2,800 jobs. Job gains were driven by administrative and support services, which added 1,800 jobs. Food services and drinking places continue to struggle, shedding 1,000 jobs last month, even before the mandatory closures that took place in December.
Compared to a year ago, San Diego nonfarm employment remains down 97,700 jobs, or 6.4 percent. Leisure and hospitality represent the largest share, down 35,300 jobs. Accommodation is down 12,900 jobs over the year, and food services and drinking places are down 22,400.
Retail Sales Decline
November marked the beginning of the holiday shopping season as shown by an increase in retail employment in San Diego. However, nationwide retail sales numbers were gloomy. Retail sales were down 1.1 percent from October (seasonally adjusted), which was much worse than expected and likely impacted by increased COVID-19 infections and decreasing household income as expanded unemployment benefits expired. Without a stimulus relief package from Congress, retail sales declines will likely continue and perhaps become severe as millions lose unemployment benefits the day after Christmas.
Department store sales in the U.S. declined by 19 percent since this time last year and 7.7 percent since last month. Clothing and clothing accessories stores declined by 16.1 percent since last year and 6.8 percent since last month. Food service and drinking place stores declined by nearly one percent since last year and 4 percent since last month due to mandatory stay at home closures.
November’s retail sales were the worst since April, adding to the already growing list of signs that a slowdown in the recovery could be imminent. As San Diego’s retailers hire more employees for the holiday season, the call to shop local and safely becomes more necessary, especially given what appears to be a slowdown in consumer spending. Small businesses drive San Diego’s economy and create thriving neighborhoods. Check out some local favorites around the County.
For more COVID-19 recovery resources and information, please visit this page.
EDC is here to help. You can use the button below to request our assistance with finding information, applying to relief programs, and more.
While the end of the year is about reflection, it has been challenging for all of us to celebrate 2020’s bright spots and successes. And yet, while our community grappled with global public health and social justice crises, we also saw San Diegans rise to the challenge—as they always do—to address a new virus, grow innovative companies, and make the world a better place.
Read on for the silver linings of 2020, all made possible by the region we call home. Here’s to continued collaboration, resilience, and inclusion in 2021.
-Team EDC
COVID-19 spurs life sciences innovation with global impact
At the onset of the pandemic, we saw our local biotechnology and research communities collaborate to create rapid testing, develop new treatments, and contribute to scientific efforts aimed at bringing a vaccine to the world. Here are just a few of this year’s breakthroughs with a San Diego stamp on them:
Pfizer develops COVID-19 vaccine with 95 percent efficacy rate
FDA approves first COVID-19 drug from Oceanside’s Gilead Sciences
Some COVID-19 inspired innovation isn’t so obvious. This year, from safe attractions to hand sanitizer, we saw San Diego companies big and small answer the call to innovate:
Orucase begins manufacturing face masks to help combat COVID-19
San Diego makes major strides in research and innovation
Beyond COVID-19, San Diego’s tech and life sciences companies continued to make waves in a diversity of industries, from oncology to aerospace to artificial intelligence (AI):
Illumina acquires GRAIL for $7.1B to scale early cancer detection
San Diego IPP builds foundation for emerging regional UAS industry
San Diego stays strong in defense with major contracts
In 2020, an estimated 25 percent of San Diego’s gross regional product was a result of military spending, and we saw key regional players score major contracts:
Venture capital into the region skyrocketed this year, as San Diego companies responded to the challenges of the pandemic. In Q2 and Q3 alone, local life sciences and healthcare companies pulled in $1.4B in new investment—75 percent of all funding. Some of San Diego’s standout startups and raises include:
GoSite raises $56M total to help small businesses go online
Flock Freight raises $113.5M to pool truck freight shipments
Newly relocated from the Bay Area, ClickUp raises $135M, earns unicorn status
San Diego earns the numbers to back it up
From heavyweights to fast-growing startups, our local companies, talented workforce, and innovative industries remained at the forefront of growth and innovation. We even have the numbers to prove it:
San Diego is one of five cities accounting for 90 percent of tech jobs
Taylor Guitars sees record sales, renewed interest in guitars
Innovative Commercial Environments, Scientist.com join 112 local companies on Inc. 5000
Chula Vista ranks as top city for integrating immigrants in the U.S.
Airport, regional companies foster continued connection
This year, we’ve learned that staying connected is key. Whether helping small businesses adapt to remote work or adding critical flights from San Diego, we saw regional players work hard to keep us safely connected to resources, opportunities, and each other:
Qualcomm helps small businesses adapt to remote work during pandemic
Fifteen small businesses find opportunities for increased resiliency in MetroConnect V
San Diego makes the region—and the world—a better place
Making the world a better place is no small feat. These are just a fraction of the many ways regional teams made us prouder than ever to be San Diegans:
TaylorMade raises $5.5M for frontline COVID-19 efforts through golf event
Sony gives $100M to support workers impacted by COVID-19
SDG&E launches $107.4M program for zero-emission heavy-duty vehicles
Verizon gives LISC $2.5M for small business, nonprofit grants
Tech mogul Jeff Bezos awards Salk Institute $30M to fight climate change
CSU San Marcos wins $830K grant to increase STEM diversity
EDC’S OWN GOOD NEWS
Our Top 20 in 2020
Between a global pandemic, a racial justice reckoning, and an ever-contentious political landscape, this year had nobody ‘seeing 2020’. And yet, here we are—turning the page into the new year, with many of the same problems of 2020, but with greater resilience, forward thinking, and commitment to inclusion.
With and through our nearly 200 investors, EDC is proud to have directly helped nearly 500 San Diego businesses through crisis and recovery. Read our top 20 of 2020.
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Invest in EDC’s inclusive growth and business assistance work.
It’s been a long and unpredictable year, yet it’s gone by in a flash. This year was challenging and different for everyone, but one thing rang true – the North County community showed its resiliency and commitment to collaboration time and time again. Together we celebrated the bright spots and successes and grieved unimaginable loss. And so, as we turn the chapter into a new year, Innovate78 is highlighting some of North County’s biggest business wins in 2020.
Acutus launches successful IPO (Carlsbad)Acutus Medical (AFIB), a Carlsbad-based biotech company that develops 3-D imaging technology for heart procedures, found major success with its IPO. The company’s flagship product, AcQMap, creates a virtual map of the heart that updates in real time with each heartbeat to help treat arrhythmia, which affects more than 2.7 million Americans. Acutus garnered such excitement around its story in the midst of the marketing process for its public offering that it had to upsize. It ultimately raised $183 million for its initial public offering.
Scripps Medical Center opens state-of-the-art facility (Oceanside) Scripps Health opened their Scripps Medical Center Jefferson in Oceanside, giving North County its largest outpatient health center. The facility boasts 85,915 square feet and three stories, and is designed as a one-stop shop for patients, with a wide range of outpatient services including primary care, cardiology, neurology, obstetrics/gynecology, oncology, ophthalmology, orthopedics and pediatrics, along with comprehensive imaging, outpatient surgery, urgent care and same-day walk-in care through Scripps HealthExpress.
Exagen rapidly expands footprint and employee count (Vista) Inside Exagen, scientists work around the clock on groundbreaking tools to help physicians better diagnose and monitor autoimmune diseases such as lupus and rheumatoid arthritis, giving hope to patients with major, unmet medical needs. The Vista-based company is growing rapidly, expanding its footprint from approximately 33,500 square feet to approximately 46,500 square feet for its corporate headquarters and ancillary space. Earlier this year, Mayor Judy Ritter and Vista City Council Members joined Exagen to learn about their life-changing work through a lab tour (pictured here) during their ribbon cutting celebration of the new facility expansion.
Piercan secures $1.5 million in tax credits (San Marcos)Piercan is a worldwide leader in manufacturing niche polymer products, including specialty gloves used by NASA, pharmaceutical companies, and beyond. The San Marcos company secured a $1.5 million California Competes Tax Credit. With the funds, Piercan will expand their local operations and create 62 new jobs along the 78 Corridor. The company will also be investing more than $7.5 million toward wages, equipment and improvements in North County within the next five years.
LocalHub opens and thrives through pandemic (Escondido) Opened this year in Escondido, LocalHub allows small business owners, freelancers, entrepreneurs and remote workers a space to work, conduct meetings, use shared resources and collaborate safely. While coworking spaces have been hit as the pandemic has forced people to temporarily stay and work from home, the LocalHub continues to grow and thrive. In addition, LocalHub began hosting a weekly Tuesday outdoor retail market to support local makers and retailers who have been hit with significant reductions in indoor sales capacity to sell their wares in a safe, outdoor environment on the LocalHub campus.
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.
For the week of December 11, 2020, here’s what we’re reading:
In 2020, our communities grappled with unimaginable loss brought on by COVID-19, a social and racial justice reckoning, an ever-contentious political landscape, and so much more. And yet, here we are – turning the page into the New Year, with many of the same problems of 2020, but with greater resilience, forward thinking, and commitment to inclusion.
With and through our nearly 200 investors, EDC directly helped nearly 500 San Diego businesses through crisis and recovery. Here’s a look back on EDC’s top 20 of 2020. Read More
IPP recap: San Diego’s foundation for emerging aviation technology
Capitalizing on San Diego’s rich aerospace history, industry relationships, and unique operational environment, EDC and partners have helped grow the emerging Unmanned Aerial Systems industry by providing regional support for food delivery, medical delivery, and public safety initiatives through the Integration Pilot Program (IPP). Read the Program Recap
San Diego business resources:
Amidst everything happening in the world, we need a reminder that there’s plenty of ‘Good News’ to go around in San Diego. We have also compiled additional resources for businesses and individuals seeking additional guidance.
The end of the year is about reflection – of the months past and of the work accomplished. But like most, 2020 has made it challenging for EDC to celebrate the bright spots and successes. This year was unlike anything anyone could have predicted. Our communities grappled with unimaginable loss brought on by COVID-19, a social and racial justice reckoning, an ever-contentious political landscape, and so much more. And yet, here we are – turning the page into the New Year, with many of the same problems of 2020, but with greater resilience, forward thinking, and commitment to inclusion.
With and through our nearly 200 investors, EDC directly helped nearly 500 San Diego businesses through crisis and recovery. This is our top 20 of 2020.
Regional resources and relief
EDC helped 476 companies access COVID-19 relief. At the onset of the pandemic, EDC developed a COVID-19 webpage for regional businesses seeking relief, resources, and reopening assistance; and continued on to support nearly 500 local businesses throughout the crisis.
Advancing San Diego launched its internship program virtually. EDC’s talent development program, Advancing San Diego, placed 70 student interns at 33 regional small companies and recognized 19 Preferred Provider programs giving top-quality training to emerging local talent. And we’re doing it again next year.
IPP helped San Diego advance the emerging drone industry through historic flights. Through San Diego’s Integration Pilot Program (IPP), Chula Vista Police Department became the first public agency to receive a Close Proximity, Low Altitude Waiver; and a UC San Diego Health partnership made San Diego one of the first regions to complete a medical specimen delivery by drone.
World Trade Center (WTC) San Diego launched MetroConnect V virtually. This all-star cohort of 15 small and medium-sized businesses participating in WTC San Diego’s entirely remote international sales accelerator is connecting with an international network of partners and exploring opportunities that ultimately build domestic economic resiliency. Over the years, the MetroConnect program has generated an $85 million net increase in exports.
WTC San Diego launched its in-house Export Specialty Center. Through a new partnership with the San Diego and Imperial Small Business Development Center, WTC San Diego will double down its focus on small business export advising and training that serves to increase the number of export-ready firms in the region.
WTC San Diego analyzed key FDI trends in the San Diego region. In early 2020, WTC San Diego identified foreign direct investment types and trends in San Diego in preparation for the launch of a new regional trade and investment strategy.
WTC San Diego worked with San Diego Tourism Authority and San Diego International Airport to look toward recovery. Together with key partners, WTC San Diego helped spearhead a COVID-19 economic recovery strategy focused on flight retention and expansion.
EDC’s Research Bureau conducted two new economic impact studies on key industry clusters. EDC’s Research Bureau released “Measuring the Future: AI and San Diego’s Economy” underwritten by Booz Allen Hamilton, and “San Diego’s Creative Economy” in partnership with the City of San Diego Commission for Arts and Culture.
EDC’s Research Bureau tracked the ongoing impact of COVID-19 on local businesses and workers. In partnership with key regional organizations, EDC assessed ongoing data and identified lasting impacts on our region’s most vulnerable: low-wage workers, small businesses, and marginalized business owners.
EDC’s Research Bureau launched its interactive Industry Profiles. Back and better than ever, these new Industry Profiles take a deep dive into the industries that make San Diego the innovation hub that it is, with data on employment, businesses, wages, and more.
EDC’s Research Bureau debuted a new Economic Snapshot and Economic Pulse. Economic data changes quickly, so EDC empowered its audience to explore the data for themselves. Check out the new Economic Snapshot and Economic Pulse.
Telling San Diego’s story
EDC launched the framework for San Diego’s economic recovery. Too often, in a rush to restore economic normalcy for some, entire segments of our communities have been left further behind in economic recoveries. To begin a more resilient recovery for all, EDC launched a webpage that tracks impacts of COVID-19 on an interactive data dashboard and outlines our region’s growing economic imperative for inclusive growth.
Innovate78 launched a new website. To spotlight North County San Diego as an innovation hub unto itself, Innovate78 launched a new website with interactive economic dashboards, regional investment information, and resources for startups. The launch immediately increased website traffic by 25 percent.
San Diego: Life. Changing. launched its Still Hiring list. In partnership with Startup San Diego and CONNECT w/ SDVG, EDC talent campaign San Diego: Life. Changing. developed a live table connecting job seekers to hiring companies. Since its launch, the page has garnered more than 15,000 page views and 110 entries.
EDC and Innovate78 helped local companies tell their stories. In addition to free consulting and programmatic support, we secured placements in news outlets highlighting Welfie, The Broken Token, Wynn’s Ice Cream, Fuse Integration, and more.
Staying connected, no matter where
EDC hosted a Future of Growth Forum discussing inclusive growth. In February, EDC gathered community leaders to learn how members of the Brookings Network for Economic Inclusion are addressing economic inclusion in cities across the country. Stay tuned for more in 2021…
San Diego: Life. Changing. launched a virtualseries to highlight San Diego companies. San Diego: Life. Changing. hosted four virtual panels highlighting San Diego science, genomics, senior health, and job opportunities during COVID-19, with more than 500 total attendees.
Advancing San Diego hosted its inaugural virtual Career Fair and Exploration Day. During Advancing San Diego’s day-long virtual event, featuring speakers from Qualcomm and Sony, San Diego students submitted 240+ applications to 20 regional companies.
New EDC board chair doubled down on commitment to getting San Diego’s economic recovery right. EDC continued to drive an inclusive growth and recovery strategy as outgoing Board Chair Janice Brown passed the gavel to Julian Parra, who wrote in the San Diego Union-Tribune that San Diego’s economic recovery must be inclusive.
Get involved
Invest in EDC’s inclusive growth and business assistance work.
The Advancing San Diego (ASD) Internship Program launched this Spring in a remote-capacity amid the COVID-19 pandemic and aims to provide up to 100 San Diego-based companies with fully subsidized interns. This program targets companies with 100 employees or less, which comprise 98 percent of all businesses in San Diego, employ nearly two thirds of San Diegans, and account for 70 percent of job growth. A key issue for these companies has been a lack of time and resources to recruit the skilled talent necessary to continue their growth.
As students close out their Summer internship experiences—and as we recruit a new cohort of companies and interns—EDC has launched this blog series to highlight the innovative local companies that comprise the first cohort of the program and the interns they hosted.
In this feature, we sat down with ZUM Radio intern and California State University (CSU) San Marcos student Kailyn King. A part of the inaugural cohort of host companies, ZUM Radio is a San Diego-based software company that manufactures radio-frequency transceivers for the amateur radio community. King is a computer science transfer student that began her studies at Oceanside’s MiraCosta College and is now in her first year at CSU San Marcos.
Read on for more from Kaylin.
How has your experience in the ASD Internship Program been, and what projects have been the most meaningful?
Applying for an internship through ASD and being connected with ZUM Radio proved to be a seamless transition from my coursework in community college to industry-based work. My supervisor Jim McLaughlin was excellent in relating the skills I had to new applications and opportunities for growth. My tasks included contributions to an open-source Android mobile application, revising a C program for a Raspberry Pi USB device, and writing guides on how to set up handheld transceivers for communicating on-air. Through this, I gained invaluable practical experience working for a project manager under a specific timelines. Above the technical knowledge, I learned the most about how to effectively communicate through email and daily Scrum meetings. Some of my biggest takeaways from this internships were practicing the management of expectations and keeping my colleagues informed about my progress on each project.
How has the COVID-19 pandemic affected your day-to-day, and what challenges have you faced as a student?
Although I am no stranger to spending a lot of time in front of a computer, this new modality of fully-online learning has challenged my ability to dedicate time and energy throughout multiple classes. It is sometimes hard for me to focus as I typically stay at home for remote work and school. I now do my best to diversify my environment by studying in different locations, walking my dog through new routes, and running outside a couple times a week. We are all constantly subjected to the stresses of the pandemic, so it is important to have patience with ourselves as we work to the best of our abilities under these unusual conditions.
What advice would you give to students looking for a successful career in the local software industry?
Recognize that good company is all around you. Communicate often and be open with your colleagues, mentors, and potential employers. Your background, perspective, passion, and hard work will be recognized as you continue to reach out towards new and challenging opportunities.
We’re now accepting applications for small companies in need of business interns! Learn more about ASD and our internship program.
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.
For the week of December 4, 2020, here’s what we’re reading:
Through Advancing San Diego, we are providing San Diego small companies with paid, remote business interns from top regional educational programs we call Preferred Providers—at no charge. Applications are open until December 18, 2020.
Amidst everything happening in the world, we need a reminder that there’s plenty of ‘Good News’ to go around in San Diego. We have also compiled additional resources for businesses and individuals seeking additional guidance.
In 2017, the United Stated Department of Transportation, which oversees of the Federal Aviation Administration (FAA), launched the unmanned aerial systems (UAS) Integration Pilot Program (IPP) to build pathways that would encourage the expansion of the commercial unmanned aerial systems industry safely and cohesively with existing piloted aircrafts.
Capitalizing on San Diego’s rich aerospace history, industry relationships, and unique operational environment, EDC partnered with the City of San Diego’s Office of Homeland Security to become one of only 10 jurisdictions across the United States to participate.
Over the past three years, San Diego IPP has laid the groundwork for regional companies of all sizes to develop cutting-edge UAS technology here in San Diego by utilizing the streamlined FAA approval process, supporting homegrown talent, and positioning the region as a UAS center of excellence by encouraging the industry’s growth.
As we wrap up the program, below are a few of the key successes:
Public Safety
The challenge: Chula Vista Police Department is largely understaffed—yet as the second largest city in San Diego County, it has been recognized at the tenth safest city in the United States with jurisdictions of more than 270,000 residents.
The solution: In coordination with the San Diego IPP, Chula Vista Police Department became the first in the nation to utilize drones as a proactive public safety tool. The department saw drones as a new opportunity to create a Drone as a First Responder (DFR) unit as a safer, less expensive alternative to helicopter and officer units.
San Diego IPP helped Chula Vista Police Department obtain a FAA permissions and waivers to provide safe, transparent jurisdictional coverage. Ultimately, Chula Vista Police Department was able to dispatch UAS to remotely assess the scene of emergency calls for service.
The results: Together, San Diego IPP and Chula Vista Police Department achieved great heights:
First public safety organization in the nation to be granted a Beyond Visual Line of Sight Certificate of Authorization.
First in the nation to achieve a Tactical Beyond Visual Line of Sight (“Close Proximity, Low Altitude”) Waiver. This enables police officers on scene to utilize small UAS to search behind obstacles, at a very low altitude to ensure safety for the officers, suspect, and potential bystanders.
First in the nation to achieve 2-to-1 Operations and is pending 100 percent jurisdictional coverage for a Public Aircraft Operator Certificate of Authorization. This enables the Remote Pilot in Command (the operator) to operate two drones at one time, an operation that required an entirely new FAA process to be created, and ultimately expanded service coverage for all residents in the City of Chula Vista.
Safe information dissemination to at-risk populations for COVID-19 response.
Statewide, nationwide, and international acclaim for public safety and innovation. San Diego IPP and Chula Vista Police Department received the 2020 AUVSI XCELLENCE Humanitarian and Public Safety Award, the 2019 California Police Chief’s Association Innovation Award, and were highlighted in UAS Norway, Chicago Tribune, Police Chief Magazine, Interdrone, Department of Justice’s DRONES publication, and more.
To date, DFR has responded to 4,303 calls, assisted in the arrest of 558 suspects, was the first to arrive on scene 1,987times, and has an average response time of 224.49 seconds.
Notably, in 1,065 instances, DFR has been able to avoid dispatching officer patrol units on scene—freeing those resources for other service calls and mitigating potential officer-involved confrontations.
COMPLEX AND CRITICAL Delivery
Despite airspace complexities and difficult operating environments, San Diego IPP leapt at the prospect to test the viability of both commercial food and medical specimen delivery within our region. San Diego IPP partnered with Uber, Matternet, and UPS Flight Forward to accomplish cutting-edge, time-sensitive deliveries in San Diego.
Food Delivery
The challenge: On the heels of a white paper on the future of urban air transportation, Uber Elevate was born. To bring its vision to fruition, Elevate determined a need for a multi-pronged effort at advancing Urban Air Mobility (UAM) efforts nationwide, but needed help obtaining permission for and conducting safe delivery testing.
The solution: Through a series of tests and strategic public-private partnerships, IPP helped the company take the first step toward urban air transportation.
San Diego IPP matured Uber Elevate’s initial business model past short-distance flights at San Diego State University to focus on a more complex delivery route from coastal Chula Vista to the Coronado Cays. San Diego IPP and Uber Elevate worked with local public and private partners for three months to coordinate efforts for a single week of safe delivery testing and an official Part 107 Commercial Food Delivery in December 2019.
Initially focused on food delivery convenience for the end user, San Diego IPP and Uber Elevate ultimately found an opportunity to expand areas of service for regional small businesses and provide options for communities without equal access to food delivery.
The results: Through this effort, San Diego IPP achieved:
The first real time Remote Identification test in the country. Remote Identification allows interested parties to utilize an application that enables the individual(s) watching to identify the drone operator and follow the drones path in real time.
Strategic public-private partnerships. To achieve one week of operations, San Diego IPP coordinated efforts with Department of Defense (DoD), Department of Homeland Security (DHS), United States Navy – North Island Naval Air Station, and the local field office at Customs and Border Protection to mandate a minimum altitude to avoid conflicts with existing aviators. Additionally, San Diego IPP worked with the Port of San Diego to create new land use agreements for take-off and landing zones in undeveloped areas along the San Diego Bay for the week of operations. Finally, the Cities of Chula Vista and Coronado both engaged in testing planning efforts and advocacy. The first official Part 107 Delivery was made to Coronado City Council Member, Bill Sandke.
Innovative safety process formation. The United States Fish and Wildlife Service, which oversees two sanctuaries adjacent to the route, worked with the San Diego IPP team to create solutions to addresses the safe operations of UAS in, near, and around animal sanctuaries, in coordination with FAA and the Department of the Interior legal counsels.
Medical Specimen Delivery
The challenge: With San Diego’s globally recognized expertise and innovation in life sciences, medical specimen delivery was a particularly important goal. With the ability to delivers medical specimens via UAS, San Diego healthcare providers could improve delivery speed and reliability, and ultimately cut costs and improve care. However, Matternet needed help obtaining waivers for night operations and flights over people to support its tests.
The solution: After extensive groundwork, San Diego IPP helped Matternet obtain accommodations for proof-of-concept flights at UC San Diego Health’s Jacobs Medical Center, including a §107.39 waiver enabling operations over people and a §107.29 waiver enabling operations at night. Matternet and UPS Flight Forward were operable and making vertical moves in San Diego by early 2020.
The results: San Diego IPP, with Matternet and UPS Flight Forward, accomplished:
259 successful flight operations at the UC San Diego Health Jacobs Medical Center.
Two separate route approvals on the UCSD Health Jacobs Medical Center Campus.
Next Steps
After three years of aiding in the development and growth of an emerging innovation industry, San Diego IPP will not be moving forward with the FAA’s next step, BEYOND.
EDC will continue to work to ensure San Diego remains a welcome space to research, design, develop, test, and advocate for the drone community, and will continue to provide exemplary service for any UAS business interested in expanding their business or concepts in our region.
Finally, we are excited to continue working with our regional leaders to ensure that we support opportunities that advance this emerging industry, as innovation is the cornerstone to our region.
EDC study quantifies impact of artificial intelligence, machine learning
San Diego industries that are embracing artificial intelligence (AI) support an estimated 175,680 jobs and $33.3 billion in annual gross regional product, according to a study released today by San Diego Regional EDC. Underwritten by Booz Allen Hamilton, “Measuring the Future: AI and San Diego’s Economy” is the first in a series of reports that will identify key industries and clusters where AI and machine learning (ML) have been implemented, and ultimately quantify the impacts of these technologies on San Diego’s regional economy.
The study—available at SanDiegoAI.org—includes a historic timeline, cluster map, and cross-references AI patent language with job postings to anticipate the future impacts of AI and ML on the job market.
AI and ML technologies have swiftly infiltrated most every facet of our lives as computing power and speed increase. Self-driving cars, algorithmic trading, customer experience bots and AI assistants like Siri and Alexa have become commonplace tools used by people at home and at work.
“The proliferation of AI and ML technologies promises to be a transformative force for businesses worldwide—and like in many innovative industries—San Diego is at the forefront. With this report, the EDC Research Bureau helps paint a picture of the impact of AI, proving its potential to grow jobs and even help narrow gender and racial wage gaps,” said Mark Cafferty, president and CEO, San Diego Regional EDC.
Contrary to popular belief and despite current economic conditions, three in five AI developers (62 percent) expect to see the number of employees specifically engaged in AI-related work grow over the next 12 months. This means locally based AI talent could help meet growing demand across the U.S. as employers try to hire workers in earnest that possess skills readily available from San Diego AI. Notably, job postings data in Sun Belt metros like San Antonio, Austin, Dallas, Tampa and Miami show that employers are struggling to fill positions requiring facial and speech recognition skills—key specializations of AI developers in San Diego. Meanwhile, predictive and forecasting AI could help alleviate hiring difficulties among firms in major economic and financial centers, including New York, Philadelphia, and Chicago. More than eight in 10 AI developers in San Diego specialize in machine or deep learning technologies, a fundamental building block for predictive AI.
Large local companies in San Diego like Booz Allen Hamilton, Northrop Grumman Corporation, ResMed and growing startups and small businesses like Lytx, Lockton, Traits AI and Semantic AI are helping to lead the charge in AI—enabling people and firms to operate more quickly and efficiently. Specifically, the use of AI or ML technologies largely supports four areas of firm activity: the development of new products and services, improved efficiency and productivity, reduced costs and an increase in business revenues.
“Booz Allen Hamilton is at the forefront of AI adoption, development and implementation, and we believe that San Diego’s companies can leverage this technology to meet their missions, attract talent and fuel economic activity,” said Joe Rohner, a Booz Allen director and leader in the firm’s analytics practice and AI services business. “We are energized that EDC’s report findings show local respondents see AI as truly helping the San Diego economy by creating more jobs—not eliminating them. People are essential to the ethical application of AI, and this technology will enable organizations and their workforce to increase productivity, quality and efficiency—in San Diego and globally.”
Despite AI’s productivity-boosting, job-creating power, a number of challenges remain. Top of mind for most local employers is the inability to source qualified talent. However, COVID-19 and the subsequent increase in remote work has expanded the talent pool for San Diego County’s AI and ML employers.
“Rapidly developing machine learning/artificial intelligence technology that enhances the work our men and women in uniform do every day is critical to the future of defense. Northrop Grumman is well positioned to continue to grow the local talent pipeline through our San Diego-based education programs so businesses in our community have the right skill sets available to support this important and rapidly evolving field,” said Alfredo Ramirez, Vice President of Northrop Grumman’s San Diego Autonomous Design Center of Excellence.
OTHER KEY FINDINGS
Average salary in AI/ML-concentrated industries is $127,960—3.9 percent above the national average for these industries and more than 70 percent above San Diego’s average worker salary.
For every 1,000 jobs gained in this cluster, another 1,400 jobs are created in other industries.
Survey proves AI adoption is creating job opportunities in the region:
66 percent of firms agreed that the use of AI and ML has created new job opportunities
54 percent of firms agree that AI and ML are increasing the need for more workers at their business
31 percent of jobs in AI-concentrated fields require only a high school diploma and pay an average of $22.42 per hour
The boost to productivity and efficiency from AI and ML should lift wages in traditional or population-serving industries, which employ a larger share of women and non-white workers than other sectors, and could therefore potentially reduce gender and racial wage gaps as these technologies are adopted.
The report was produced by San Diego Regional EDC, underwritten by Booz Allen Hamilton, and sponsored by Northrop Grumman Corporation, ResMed, Lytx and Lockton.
As the year comes to a close, Advancing San Diego partners remain committed to connecting San Diego students to local companies into 2021. We’re excited now to announce our Preferred Providers of business talent, and to open our application round for small companies in need of business interns.
First up: Meet the Preferred Providers of business talent
EDC, San Diego Workforce Partnership, and Advancing San Diego partners are excited to announce the following schools as Preferred Providers of business talent. Through a competitive application process, these Preferred Providers are colleges, universities, and certificate programs recognized by local employers for training the next generation of business professionals in San Diego.
Preferred Providers of business talent:
CSU San Marcos
MiraCosta College
National University
San Diego Mesa College
San Diego State University
UC San Diego Extension
University of San Diego
The Preferred Provider network serves as a resource to better connect employers to locally-serving education programs. Earlier this year, we announced the cohorts of Preferred Providers of software and engineering talent. View the full network of programs on EDC’s Preferred Provider map. Learn more about their respective programs
And finally, Do you need business interns?
We’ll pay them for you.
Through the Advancing San Diego Internship Program, small local companies can host remote business interns at no cost to them. All interns will be sourced from Preferred Provider programs mentioned above and will be paid $20/hour. If you are a small company (<100 employees) interested in hosting business interns in the springand meet the eligibility criteria, please apply now! Twelve companies will be selected to host interns starting March 2021. Applications will close December 18, 2020.
Hear first-hand testimonials from some of the 34 small businesses who have already hosted interns in our blog series here.
