This blog post is a part of a larger series in celebration of Manufacturing Month, sharing key trends from an upcoming report on San Diego’s Manufacturing sector. To be the first to read the new report:
San Diego is known for its sunny coastlines, vibrant tourism, and thriving biotech industry, but its Manufacturing sector is equally as diverse and dynamic. Manufacturing in the region is done using the most cutting-edge technology as well as traditional craftsmanship. This diversity reflects the region’s ability to adapt and evolve while creating a robust economic landscape with opportunities across a variety of industries.
The impact of the Manufacturing sector on San Diego’s economy may go unnoticed, but it’s a crucial contributor to the region, generating more than $47 billion annually when accounting for direct, indirect, and induced effects on the economy.
By the Numbers
With significant job concentration in Life Sciences, Technology, and Aerospace and Navigation technologies industries, manufacturing in San Diego is both sophisticated and advanced.
Why San Diego stands out
Three key factors set San Diego apart as a Manufacturing hub: talent, innovation, and proximity to key customers. See how local companies are taking advantage of all three below:
Staying close to key customer base
Stone Brewing is a unique story and part of a larger narrative of the region’s diverse Manufacturing landscape. A homegrown brewery, Stone Brewing was founded in San Diego County in 1996, playing a key role in establishing the region as a thriving craft beer hub. Its strategic location keeps it close to target customers and suppliers, while the vibrant brewing community attracts top talent. Now the largest craft brewery in California and the ninth-largest overall in the U.S., Stone continues to expand, reinforcing its presence in San Diego. Acquired by Japanese brewery Sapporo in 2022, Stone invested $20 million to expand its Escondido brewery. Now branded Sapporo-Stone Brewing, the brewer makes Sapporo’s beers in addition to its own, doubling output and expanding the Japanese brewery’s reach into the U.S. market. Its San Diego presence remains a strategic asset, benefiting from the region’s collaborative brewing community and loyal customer base.
A hub for cutting-edge ideas
San Diego consistently ranks in the top three Life Sciences markets in the U.S., often recognized as a hub for research and development (R&D). However, the region’s strength in manufacturing frequently goes overlooked.
Founded in San Diego in 2017 by former Illumina leadership, Element Biosciences develops genetic analysis tools and human genome sequencing, reflecting the region’s cutting-edge genomics work. One of the key advantages to San Diego is the robust biotech ecosystem, specifically within Genomics, which fosters continuous innovation and cutting-edge ideas, creating an environment where a startup like Element can thrive. Element’s rapid growth in under seven years is partly due to the decision to continue manufacturing key components in San Diego, driven by proximity to critical R&D activities, access to top talent and reliable industry partners, and collaboration with local universities and industry giants. Like many Life Sciences companies in the region, Element stands out as both an R&D innovator and precision manufacturer, solidifying its role in San Diego’s innovation Manufacturing landscape.
Driving San Diego’s next innovation cluster
When people think of Manufacturing, they often picture large-scale assembly lines. In San Diego, smaller-scale Manufacturing with a greater emphasis on quality and precision is the region’s sweet spot.
Aptera launched in 2019 out of co-CEO Steve Fambro’s garage. The solar electric vehicle company embodies the region’s burgeoning Cleantech hub, utilizing a micro-factory model. Aptera opts for smaller-scale operations and strategically selects markets close to its customer base. California’s environmental goals made the state an ideal fit for its innovative product. San Diego was also a natural choice for its founders, who had prior experience launching companies in the region.
Beyond being a key market for customers, San Diego’s innovation ecosystem continues to provide access to top-tier talent for high-tech, cutting-edge roles. It also offers strategic supply chain advantages due to proximity to Los Angeles and, more importantly, to Tijuana, Mexico.
Supporting the ecosystem
Manufacturing in San Diego is a vital sector that supports more than 100,000 jobs, contributes significantly to local GDP, and fosters a thriving environment for innovation and growth. By focusing on nurturing talent, fueling innovation, and leveraging its strategic location, San Diego is well-positioned to sustain and grow its manufacturing expertise.
Local industry resources:
- San Diego Regional EDC Business Resources
- San Diego & Imperial Valley SBDC Network
- California Manufacturing Technology Consulting
Stay tuned for next week’s blog on talent in the Manufacturing industry—and later this month for the unveil of a new industry report by EDC and Boston Consulting Group (BCG).
