Tag: Inclusive Growth

EDC report: Annual Inclusive Growth Progress

By San Diego Regional EDC,

Report: Gaps in accessibility challenge the region’s goals

Today, San Diego Regional EDC released its Inclusive Growth Progress Report, using the most up to date and available data (2023). With new progress and bold objectives set around increasing the number of quality jobs, skilled talent, and thriving households critical to the region’s competitiveness, the report measures San Diego’s growth and future outlook, and spotlights the greatest threats to prosperity

progress.incLUSIVesd.org

Making the business case for inclusion, EDC releases this annual report to track progress toward the region’s 2030 goals: 50,000 new quality jobs* in small businesses; 20,000 skilled workers per year; and 75,000 newly thriving households**.

Since its launch in 2017, the initiative has rallied public commitments from County, City, academic, and private sector leaders who are leveraging the Inclusive Growth framework to inform their priorities, tactics, and resource allocation. While much about the economy remains uncertain and inclusion is challenged at the national level, intentional and consistent efforts by a diverse set of regional stakeholders will be key to achieving these goals.

THE STORY BEHIND THE DATA

Halfway through the decade, the San Diego region continues to make progress towards its 2030 goals with increases in quality jobs, post-secondary education completions, and median household incomes in communities of color. Nevertheless, gaps in accessibility continue to challenge the region’s competitiveness.

In terms of quality jobs, San Diego has made immense progress towards the 2030 goal and is even projected to exceed it. However, while quality job numbers have increased, small businesses are struggling with a stagnant pace in job growth, talent acquisition, and staff retention. These challenges further the gap between small and large businesses and threaten small businesses’ ability to compete.

With many small businesses considering leaving the region due to funding and staffing challenges, it is vital that these firms have access to new markets. San Diego anchor institutions can make an immense impact by shifting just one percent of existing procurement spend to small, local, and diverse businesses.

San Diego’s innovation economy has positioned the region as a global hub for breakthrough scientific research and life-changing technological advancements. Yet, our talent shortage poses a threat to San Diego’s competitiveness and talent goal. A key issue continues to be accessibility for low-income students who make up the workforce of tomorrow but are underrepresented in today’s workforce. While Hispanic and Latino students make up almost half of San Diego’s K-12 students, only 20 percent are currently represented in the innovation economy workforce.

Furthermore, less than 40 percent of Black and Latino students from the graduating class of 2023 were considered college-ready upon graduation, which translates into less students opting into post-secondary education. This lack of preparation, coupled with the increasing requirement of a bachelor’s degree for entry level jobs, is exacerbating the talent crisis in the innovation economy. If San Diego is going to meet workforce needs and the talent goal by 2030, greater efforts must be made to enable access and opportunity for local, young, and diverse students.

With rising housing, transportation, and grocery costs, San Diego remains one of the most expensive metros in the country. While median household incomes have seen significant growth—especially in Black and Latino households—they still struggle to keep pace with rising costs. There is also a racial disparity in San Diego’s ratio of housing wealth to population share. For example, Latino households represent 27.4 percent of the population but hold only 17 percent of the region’s housing wealth.

While not at pre-pandemic numbers yet, San Diego has added 49,916 newly thriving households as of 2023, notable progress in the face of increasing affordability pressure. In order to sustain progress, housing options must be made available at more affordable price points, and housing permit activity needs to be accelerated to meet regional goals—especially for affordable and middle-income units.

Join the movement

Learn more and get involved with EDC:

Read the full report here, and all previous updates at progress.inclusiveSD.org. 

The initiative is sponsored by Bank of America, Burnham Center for Community Advancement, County of San Diego, JPMorgan Chase & Co., Prebys Foundation, SDG&E, Southwest Airlines, and TOOTRiS.

more at inclusiveSD.org

*Quality job = $23.88 per hour wage + healthcare benefits.

**Thriving household = total income covers cost of living for renter- or owner-occupied households, at $77K and $124K respectively.

Inclusive Growth Spotlight: Commute with Enterprise

By San Diego Regional EDC,

To celebrate and inspire the efforts of regional employers, EDC’s Inclusive Growth blog series highlights San Diego companies helping to drive progress on the 2030 Inclusive Growth goals. Below we feature the nationally recognized commuter vanpool service operated by Commute with Enterprise.

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.

Decreasing affordability in San Diego has threatened progress toward newly thriving households. Increasing cost pressures disproportionately impact communities of color who historically do not have the same rate of homeownership, a key driver of upward economic mobility. By the end of the decade, EDC estimated the region would need to add 75,000 newly thriving households. As of 2023, San Diego has added 49,916 newly thriving households bringing the total number of San Diego’s thriving households in the region to 610,983.

Commute with Enterprise supports companies and households

Commute with Enterprise operates the nation’s largest vanpool service and provides affordable commuting solutions, which contribute to EDC’s 2030 thriving households goal by reducing travel costs for workers.

Commute with Enterprise established its first vanpool in San Diego 25 years ago, which still operates today and has since served numerous local employers across industries including healthcare, manufacturing, tech and biotech startups, universities, and more.

In San Diego, 20-30 percent of the population commutes more than 60 miles each day. Annually, households in San Diego spend more than $13,000 on transportation costs, representing a 73 percent increase since EDC began tracking progress toward the 2030 goals. As housing costs have increased, households have opted to move to more affordable areas, often further away from their jobs creating longer work commutes.

Companies like Dr. Bronner’s have leveraged Commute with Enterprise to launch a pilot program to support its workforce as well as contribute to a more sustainable future. In addition, SANDAG supports employers and employees through its vanpool program which offers subsidies to offset vehicle lease costs.

Benefits for Dr. Bronner’s:

  • Employees pay $50 per month, compared to $285 for solo commuting (IRS, 2024).
  • Emergency ride credit of $500 per car provided by SANDAG covers three emergency rides home per year, per participant.
  • One vehicle with five employees commuting an average of 25 miles round trip reduces CO2 emissions by more than 10 metric tons per year compared to individual driving.
  • Program aims to save 25 parking spaces at Dr. Bronner’s site with future growth.

Commute with Enterprise gives employers a competitive edge when it comes to talent attraction and retention. Riders could save $10,000 per year on average by reducing costs associated with fuel, vehicle maintenance, and more.** Vanpooling can also help reduce traffic congestion as Commute with Enterprise takes more than 45,000 single-occupancy vehicles off the road each day.*** This smart, practical, and employer-led commuting solution helps alleviate rising costs and ultimately supports households.

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. Companies like Cultura are helping to collectively pave the way toward a more inclusive regional economy. Join us:

To get involved in EDC’s work, contact:

Teddy Martinez
Teddy Martinez

Sr. Manager, Research

 

* A thriving renter-occupied household, as defined by EDC, needs at least $77,280 in household income per year while homeowner-occupied households need $124,368 per year to be considered thriving.
** Estimates based on 2024 Commute with Enterprise reporting, an average 5-day/ week commute and 2024 AAA costs associated with operating a vehicle including fuel, maintenance, and depreciation. CommutewithEnterprise.com/Showmethemath. 
*** Estimates based on 2024 Commute with Enterprise reporting. Assuming participants previously drove alone. CommutewithEnterprise.com/Showmethemath.

Inclusive Growth Spotlight: Cultura

By San Diego Regional EDC,

To celebrate and inspire the efforts of regional employers, EDC’s Inclusive Growth blog series highlights 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, outpacing the national average. In 2023, San Diego County ranked third for most new business formations in California. Despite significant contributions, small businesses 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 and increase the number of quality jobs are critical to the future of the region’s economy, and Cultura is among the local companies contributing to the progress.

How Cultura is moving the needle

Cultura is a San Diego small business specialized in a broad range of furniture solutions tailored to fit the needs of its clients. Since 2009, Cultura has partnered with more than 1,250 companies to build spaces that support their businesses, people, and ultimately culture. Whether it’s designing inviting lobbies, creating flexible workspaces, or setting up collaborative meeting rooms, Cultura excels at transforming environments that foster both productivity and well-being.

As a diverse, women-led company, Cultura plays a critical role in the region’s economic ecosystem. By providing tailored solutions for office environments, Cultura directly supports the infrastructure needs of San Diego companies while also adding to the region’s number quality jobs. Cultura also prioritizes small, local businesses in its internal vendor selection process, further strengthening the local economy.

When local firms choose to work with local vendors, they are not only fulfilling their needs but also investing back into the regional economy. This practice helps keep procurement dollars circulating locally, promoting quality jobs and fostering a more resilient local economy. In fact, EDC has found that if local anchors shifted just one percent of existing spend to local, small, or diverse suppliers, San Diego would see millions of dollars in economic impact and thousands of jobs.

The synergy between large anchor institutions, smaller businesses, and local vendors like Cultura creates a powerful multiplier effect that fuels job growth, drives innovation, and sustains a thriving economy.

Cultura’s mission to create the best work environments begins internally. Offering flexibility in the work schedule, competitive salaries, matching retirement contributions, annual bonuses, and a unique work environment, the company demonstrates how small businesses can contribute to Inclusive Growth progress.

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. Companies like Cultura are helping to collectively pave the way toward a more inclusive regional economy. Join us:

*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 get involved in EDC’s work, contact:

Teddy Martinez
Teddy Martinez

Sr. Manager, Research

Inclusive Growth Spotlight: San Diego County Regional Airport Authority

By San Diego Regional EDC,

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.

Small shifts in local spend by San Diego’s anchor institutions create quality jobs. EDC found that a one percent increase in local construction spending could generate more than 1,000 new quality jobs for the region.

“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.

*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:

Teddy Martinez
Teddy Martinez

Sr. Manager, Research

A note from Eduardo: Looking into the 2025 crystal ball

By Eduardo Velasquez,

The map is not the terrain

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.

Federal funding has fueled a half trillion-dollar investment into new manufacturing facilities nationwide over the last three years. Pre-pandemic, manufacturing employment growth in San Diego outpaced both the state and nation; since then, that trend has completely reversed.

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.

Happy new year,

Eduardo Velasquez
Eduardo Velasquez

Sr. Director, Research & Economic Development

 

Read 2024’s edition: Looking into the 2024 crystal ball

Read 2023’s edition: Looking into the 2023 crystal ball

More FROM EDC’s research bureau

More on inclusive growth

EDC designates San Diego’s top computing, engineering, business programs

By San Diego Regional EDC,

To fill talent gaps, regional employers vet training curriculum aligned to industry needs

Together with more than 80 industry representatives, San Diego Regional EDC is proud to announce Advancing San Diego’s newest Verified Programs of 2024: 28 education programs from 15 different institutions that are best preparing students for jobs in computing, engineering, and business.

These programs earned a three-year verification status through a rigorous evaluation process led by Advancing San Diego, the flagship program of EDC’s Talent Initiatives, which serves to double the production of skilled workers in San Diego while prioritizing historically underrepresented populations in the innovation economy. 

San Diego and the nation are grappling with a critical talent supply and demand challenge. Since 2017, San Diego County has experienced a 1.3 percent decline in its working-age population even as jobs have increased by 3.1 percent, intensifying competition for skilled talent. Additionally, 83,000 more jobs now require a bachelor’s degree than in 2016, underscoring the growing demand for advanced training and education alongside skill-based hiring practices.  

At the same time, demographic shifts are reshaping the future workforce. More than 70 percent of San Diego’s K-12 students are people of color, a group that has historically faced systemic barriers to accessing high-wage, high-demand careers. These changes present an opportunity—and an imperative—to invest in training programs that equip local, diverse populations for the region’s most in-demand careers. By expanding access to quality post-secondary education and training, the region can build an inclusive talent pipeline that supports both economic growth and equity in San Diego’s innovation economy.  

“The numbers are clear; the region cannot fill its talent gaps unless we open doors for more San Diegans. Our Advancing San Diego work is part of the solution—connecting industry to vetted local education programs that they might not yet be recruiting from. This new roster, which includes universities, community colleges, adult schools, and more, offers employers a go-to for sourcing qualified and diverse talent, and arms training programs with the boots-on-the-ground intel needed to shape the curricula of the future,” said Taylor Dunne, Director of Talent Initiatives at San Diego Regional EDC.  

How programs are verified

Employers met with and vetted applicants’ curriculum at EDC’s ‘Reaching Tomorrow’s Talent’ event on November 13, which brought together more than 150 businesses, educational programs, and community organizations working to close talent gaps by aligning education with industry needs.  

Status as a Verified Program indicates five critical elements:

  • Alignment of educational curriculum with industry requisites of necessary hard skills (ex: coding)
  • Alignment of educational curriculum with industry requisites of necessary soft skills (ex: problem solving)
  • Continuous engagement with industry
  • Ability to reach and serve a diverse student population
  • Proven history of collaboration along the education continuum and with critical community organizations

By participating in the process, local training programs get an inside look at the most critical skill expectations for students coming out of their programs and begin to explore how those expectations will change as technology and artificial intelligence evolve.  

“Poway Adult School is excited be recognized as an Advancing San Diego Verified Program. We believe that further developing industry partnerships, encouraging reflection on learning objectives, and aligning with the needs of local industries will help set our students up for success as they enter the workforce,” said Kathleen Porter, Executive Director of Career Technical, Adult, and Alternative Education at Poway Unified School District. 

“By equipping students with the skills needed to thrive, we help them transition successfully into the workforce. EDC’s Talent Demand data is an invaluable tool that allows us to align our programs with the skills students need to launch new careers,” said Elizabeth O’Shea-West, Principal at Vista Adult School. 

The 28 programs verified in this round represent more than 79,500 students across San Diego and Imperial Counties, and join a roster of others across key industries including Healthcare, Business, and Life Sciences. Last done in 2020, 10 programs were re-verified while Advancing San Diego welcomed 18 newly verified programs. 

hire summer interns at no cost

With the new designation comes the opportunity for students to take advantage of paid work-based learning experiences. In conjunction with the Border Region Talent Pipeline K-16 Collaborative, companies in  San Diego and Imperial Counties  are invited to apply by February 28, 2025 to host funded computing, engineering, and/or business interns for the  summer of 2025, sourced exclusively from the Verified Programs roster. In 2024, 322 interns were placed at 104 local companies, up from 48 interns placed in 2023, and creating an invaluable bridge between education and industry in high-growth, high-wage fields. Learn more and complete the interest form here. 

“I was drawn to this internship program because of my commitment to social mobility and reducing socioeconomic gaps. Companies have a pivotal role in building a more equitable future, especially by empowering the next generation of talent. My favorite part about working with the Advancing San Diego interns at ChakraTech has been their contagious enthusiasm and unwavering dedication to the work,” said Ravi Chawla, founder and CEO of ChakraTech, a 2024 summer intern host. 

Learn more at advancingSD.org and explore Verified Programs for other industry clusters here.

Apply by February 28

Verified Programs of BUSINESS

  • California State University San Marcos
  • Cuyamaca College
  • MiraCosta College
  • National University
  • Palomar College
  • Poway Adult School
  • San Diego State university
  • San Diego Community College District – College of Continuing Education
  • UC San Diego Division of Extended Studies
  • UC San Diego Rady School of Management
  • Vista Adult School

Verified Programs of Computing & ENGINEERING

  • California Institute of Applied Technology
  • Cuyamaca College (Engineering)
  • National Foundation for Autism Research
  • National University
  • San Diego City College
  • San diego MiraMar College

Learn More About Advancing San Diego

Inclusive Growth Spotlight: Booz Allen Hamilton

By San Diego Regional EDC,

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.

Regional talent demand remains high

To maintain economic competitiveness, the region needs 20,000 students per year completing post-secondary education within six years of graduating high school. These include certifications, career technical education, and college degrees. Progress toward the goal has increased incrementally since 2017 yet completions have shown signs of tapering; the region still falls short of the goal; and the local supply of talent continues to be a critical priority for San Diego employers.

Talent scarcity has become the new normal as hiring demand exceeds the supply of talent across industries. Compounding this challenge, student success is demographically uneven in the region. Despite making up 35 percent of the population, Hispanics and Latinos only account for 17 percent of residents over 25 years old with at least a bachelor’s degree. Critical to growing the local talent pool is creating more opportunities for Black and Latino students to succeed. Employer-led talent pipeline development efforts are critical to the future of San Diego’s economy and Booz Allen Hamilton is among those working toward a solution.

Employer-led solutions

Combining 110 years of strategic consulting expertise with the perspectives of diverse talent, Booz Allen leverages innovative solutions for its clients in defense, cybersecurity, healthcare, and energy. In the San Diego metro area, Booz Allen employs more than 1,200 people with a range of technical expertise contributing to the region’s reputation as a hub for innovation and a catalyst for groundbreaking ideas.

While San Diego has a highly educated workforce with a proportion of bachelor’s degree holders that is seven percent higher than the national average, Booz Allen is among many employers across San Diego still facing a talent scarcity challenge. A smaller talent pool makes competition for technical professionals more intense, especially as the presence of major tech companies has increased over time and local startups continue to flourish.

To help expand access and exposure to quality jobs in STEM, Booz Allen and the Booz Allen Foundation are deeply committed to supporting San Diego youth.

Here’s how the company is committing to Inclusive Growth:

  • For the past 10 years, Booz Allen has partnered with the USS Midway Museum to offer STEM education programming to elementary and middle school students in Southeast San Diego. This year, the Booz Allen Foundation is underwriting scholarships for 1,000 students, predominantly from Black and Latino communities.
  • Since 2023, the Booz Allen Foundation has provided resources to Southwest San Diego around Lincoln High School (LHS) and its surrounding community. Recognizing that schools are part of a larger ecosystem, the company supported not only LHS but also the elementary and middle schools that feed into it, along with local organizations like Girl Scouts of San Diego and MANA de San Diego with a focus on youth exposure to STEM. Last year, the Foundation supported LHS’s engineering program including its inaugural FIRST robotics team. With this support, the robotics team made the regional robotics competition, earning a spot at the FIRST international championship in Houston. For many participants, this was their first time flying, staying in a hotel, and dining at a sit-down restaurant—a truly life-changing experience. Additionally, LHS students attended the San Diego State University College of Engineering Expo, where they connected with first-generation college students thriving in STEM fields, helping them envision their own future in these careers.
  • The company is also a strong supporter of the Elementary Institute of Science (EIS), a Southeast San Diego-based organization that has provided equitable access to STEM since the 1960s. EIS has partnered with the Booz Allen Foundation to take its mission to new heights. Together, they are developing new AI programming and teacher training to stay ahead of rapidly changing technology, providing stipends for internships to help talented students earn money while advancing their education and careers, funding scholarships for students to attend EIS STEM camps, facilitating volunteer days to support the community, among other efforts.
  • Lastly, the Booz Allen Foundation is proud to support Rady Children’s Hospital’s Medical Academy, which provides high school students with valuable learning opportunities in healthcare. Through its Equity Grant, the hospital is connecting students with Booz Allen employees to explore the fundamentals of artificial intelligence (AI) and its emerging applications in healthcare. This initiative empowers students to gain exposure to cutting-edge technology, expanding their career possibilities in both healthcare and AI, and preparing them for success in these high-demand fields.

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. Companies like Booz Allen are helping to collectively pave the way toward a more inclusive regional economy.

To learn more and get involved in EDC’s work, contact:

Teddy Martinez
Teddy Martinez

Sr. Manager, Research

How Advancing San Diego funded internships help students and businesses

By Olivia Jones,

Advancing San Diego: Bridging education and industry

EDC’s Advancing San Diego (ASD) internship program, run in partnership with the Border Region Talent Pipeline K-16 Collaborative and Imperial Valley EDC, has transformed how students across San Diego gain early career experience, while helping local businesses address talent needs. In summer 2024, the ASD program placed 358 interns at 104 companies across San Diego and Imperial Counties, creating an invaluable bridge between education and industry in high-growth, high-wage fields like engineering, computing, and business. That’s up from 48 interns placed in summer 2023. This program plays a crucial role in addressing regional talent shortages, helping local companies access vetted, diverse talent and offering students paid, hands-on learning opportunities in high-demand industries.

Summer 2024 by the numbers

*Priority populations include low-income individuals, first-generation college students, current community college students or community college transfers, veterans and active-duty military students, and students with disabilities

Addressing the talent gap with community impact

At the heart of ASD’s mission is a commitment to reaching under-resourced communities, ensuring that students from diverse backgrounds gain valuable career experience while helping local businesses address critical talent needs. Companies apply each year by early spring to host students from Advancing San Diego Verified Programs to be interns. These Verified Programs are selected based on industry-determined criteria, including industry engagement, diversity, equity, and inclusion, as well as curriculum that teaches the most in-demand skills in computing, engineering, and business. This approach ensures that students’ skills align with evolving workforce demands, enhancing the overall impact of the internship experience.

Once companies are selected, students from Verified Programs apply for their top five preferred positions. There are not enough positions for every student, so those who identify with the program’s priority populations get preferred access to available positions, with 73 percent of the interns identifying with one or more of the priority populations this past summer. Importantly, ASD provides financial support through the K-16 Collaborative, covering competitive intern wages and saving local companies more than $2 million in payroll costs, ensuring businesses can prioritize mentorship and on-the-job training over recruitment logistics.

Real-world experience and career advancement

Every year the ASD internship program provides students with valuable work experience directly linked to their academic pursuits, equipping them with practical skills and career confidence. At the same time, EDC’s program enables companies to benefit from student contributions, with a 17 percent conversion rate of interns into full-time employees in 2024. For employers, this means reduced time spent on recruitment and a pipeline of highly motivated, well-prepared candidates who bring immediate value.

“I was drawn to this internship program because of my commitment to social mobility and reducing socioeconomic gaps. Companies have a pivotal role in building a more equitable future, especially by empowering the next generation of talent. My favorite part about working with the Advancing San Diego interns at ChakraTech has been their contagious enthusiasm and unwavering dedication to the work.”

—Ravi Chawla, founder and CEO of ChakraTech; ASD summer intern host

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Learn how employers can bolster the local talent pipeline

Read our op-ed

To learn more and get involved in EDC’s work, contact:

Olivia Jones
Olivia Jones

Coordinator, Talent Initiatives

Op-ed: Employers can bolster the local talent pipeline. Here’s how.

By Sidd Vivek, Mark Cafferty, and Dr. Sunita Cooke,

Op-ed originally published by the San Diego Union-Tribune.

Authored by Sidd Vivek, President and CEO at Junior Achievement of San Diego and Imperial Counties; Mark Cafferty, President and CEO at San Diego Regional EDC; and Dr. Sunita Cooke, President and Superintendent at MiraCosta College

The success of our regional economy hinges on more than the businesses that power it; it thrives when our community, education systems, and industry come together to create opportunities that benefit all San Diegans. Internships and career-connected learning are key to aligning local students with regional jobs and overcoming the talent shortages threatening our economic competitiveness.

Demand for workers in the innovation economy is set to double over the next few years, making it imperative to connect young people to career pathways and professional networks in San Diego’s leading industries. Talent from historically underserved communities remains heavily underrepresented in the local innovation economy; in fact, Black and Hispanic people comprise 50 percent of the region’s K-12 population but only 24 percent of innovation cluster workers. Supporting these youth in accessing high-growth, sustainable careers is key to addressing San Diego’s socioeconomic disparities and creating a talent surplus.

That’s why, together with key local partners, San Diego Regional EDC is focused on placing students in paid work-based experiences and/or internships across the region. In collaboration with the Border Region Talent Pipeline K-16 Collaborative, Imperial Valley EDC, Junior Achievement of San Diego and Imperial Counties, and the County of San Diego led by Chair Nora Vargas, 443 local youth were placed in paid summer internships and/or work-based learning experiences at more than 125 businesses across San Diego and Imperial Counties including Illumina, Deloitte, Booz Allen Hamilton and Cox Communications and many small businesses. Through local industry partners—and supplemented by philanthropy—students were paid more than $2.7 million in collective wages and employer support services, and many are already being hired on for full-time opportunities. This work goes beyond offering students a paycheck—transforming futures and driving long-term economic growth for San Diego.

When employers invest in career-connected learning experiences, they address both immediate staffing needs and strategically build a future workforce pipeline tailored to their skills demands. According to the National Association of Colleges and Employers, approximately 72 percent of US companies will offer their interns full-time positions, and 80 percent of employers cited their internship programs as the talent acquisition technique with the best return on investment.

It is not just businesses that benefit. Forbes reported that students who completed paid internships receive twice as many job offers and secure a higher first-year salary than students with no internship experience, even when controlling for industry and demographic data.

Work-based learning equips students with industry tools and professional skills while helping them identify career paths aligned with their strengths and build a network of support for the future. Young people’s creativity and diverse perspectives can spark fresh ideas that drive businesses forward. As more students transition from interns to full-time roles, they mentor the next generation, creating a self-sustaining growth cycle that fuels innovation and economic mobility across San Diego and Imperial Counties.

This complex work requires cross-sector collaboration, from K-12 school districts and nonprofits to community colleges, universities, and employers who need the talent to fill critical functions. For our region—we must keep our sights set on fostering innovation, connecting youth to in-demand, sustainable wage career pathways, and building a talent pool that reflects our people.

With students back in school for the fall, we invite our regional businesses to join us in this vital work. From participation in career panels to hosting work-based learning for high school students or post-secondary apprentices and interns, a commitment by San Diego’s companies will be the difference-maker for this region and our youth.

It is only with and through San Diego’s employers that we can meet our Inclusive Growth goals, and ensure our economy remains competitive, innovative, and resilient for years to come. The benefits are clear: stronger businesses empowered students, and a vibrant, accessible economy that works for everyone.

What’s next?

To learn more and get involved in EDC’s work, contact:

Bridgette Coleman
Bridgette Coleman

Manager, Talent Initiatives

Small, localized commitments mean huge economic impacts in San Diego

By Eduardo Velasquez and Jennie Brooks,

Op-ed originally published by San Diego Business Journal

Authored by Eduardo Velasquez, Sr. Research & Economic Development Director at San Diego Regional EDC, and Jennie Brooks, EDC Board Chair and Executive Vice President at Booz Allen Hamilton

Hosted in San Diego last month, the Department of the Navy Gold Coast Small Business Exposition brings together hundreds of government and defense contracting leaders to talk all things DOD procurement. Self-proclaimed as the big business event for small businesses, Navy Gold Coast serves to ‘leverage small business capabilities to seize opportunities for strengthening national security.’

Boasting the largest concentration of military assets in the world, San Diego has an incredible and important opportunity to tap our region’s small businesses not only to support military interests, but also to drive inclusive economic growth across the region.

As we track toward our region’s 2030 Inclusive Growth goals, it is imperative that our economic development strategies prioritize small businesses, which represent more than 98 percent of all local businesses and employ 59 percent of San Diego’s workforce. They are not just contributors to the local economy; they support jobs for 807,540 San Diegans across industries. But they are challenged to remain competitive. Small businesses pay on average 38 percent less than their large business counterparts, and in 2023, under one-third (or 244,794) of small business jobs were considered quality jobs—those paying $46,846 plus healthcare benefits. Not to mention the challenge small businesses face in succession planning, accessing capital, and generally staying afloat in one of the most costly regions in the country.

Together, San Diego’s large employers can have enormous impacts on our region’s small business community. In fact, a 2021 EDC study found that anchor institutions—such as universities and hospitals, as well as utilities, local government, and even sports teams—that are physically bound to the region collectively purchase tens of billions of dollars in goods and services every year. Yet, it is estimated that local anchors spend about one-quarter of all procurement dollars on suppliers from outside the region, with a fraction going to small and minority-owned businesses. EDC found that if anchors shifted just one percent to local, small, or diverse suppliers, San Diego would see millions of dollars in economic impact and thousands of jobs.

Booz Allen Hamilton has been committed to partnering with small and diverse suppliers across the San Diego region. In 2023, the firm’s local spend in the San Diego area with small businesses was more than $50 million, a 24 percent increase from 2022. We’re also inspired by San Diego Gas & Electric, the County of San Diego, and others making measured and meaningful commitments to support our region’s small and diverse businesses.

So, what can you do? To maximize their collective economic development impact, we need three key things from the region’s anchors.

First, we need consistency and coordination, both in terms of definitions and processes, to increase accessibility. Every institution tracks its spending differently, and each has its own requirements and processes for bidding out contracts. A consistent set of definitions and even some coordination in bidding processes will not only facilitate tracking and collective goal setting, but also increase access to a new pool of potential vendors and suppliers.

Second, leadership and resourcing are needed to establish and meet procurement goals. It is important that both organizational leadership and procurement staff agree on the value of these goals, thus creating accountability, aligning incentives, and implementing change.

Last, anchors leverage their large prime contractors to meet procurement goals. Take construction for example: large projects are often sub-contracted out by prime contractors to smaller suppliers and vendors, and many anchors lack visibility into these sub-contractors. Engaging primes in anchors’ goal setting increases visibility and opportunity for smaller suppliers while also ensuring that prime contractors have the capacity to fulfill project deliverables.

With intentional and localized commitments, we can create an economy that benefits more San Diegans, grows more jobs, and helps small businesses become the Qualcomms, Dexcoms, and Booz Allen Hamiltons of the future.

Let Navy Gold Coast serve as a potent and timely reminder to prioritize small businesses and inclusion for the betterment of our economy.

To learn more and get involved, contact:

Eduardo Velasquez
Eduardo Velasquez

Sr. Director, Research & Economic Development