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The Big Picture San Diego Blog


February 2018

February 15, 2018

Today, EDC launched a data-driven initiative to drive economic growth and inclusion in the region. Catalyzed by San Diego’s participation in the Brookings Institution’s Metropolitan Policy Program learning lab in 2017, EDC released research that highlights the region’s economic pain points and necessity for an employer-led approach to tackling inclusivity issues.

Despite record-low unemployment and a renowned innovation ecosystem, San Diego has an inclusion problem that cannot be ignored,” said Mark Cafferty, president and CEO, San Diego Regional EDC. “Small businesses cannot compete with larger corporations, while one million people cannot afford to live here. This initiative is a call to action for San Diego’s employers – we must come together to bridge the gaps in our economy.”

While the rise of the innovation economy has created wealth and opportunity across the region, it has also widened economic inequalities. If San Diego does not change its status quo, the region will to lose employees and companies to other regions. 

Key facts:

With the combination of a high cost of living, low educational attainment in our fastest growing population and a small business-centric economy that struggles to pay competitive wages, it is imperative that San Diego employers take action to promote economic inclusion.

Convened by EDC, a Steering Committee of local employers will work to create an actionable platform to achieve three goals: close the minority achievement gap; equip small businesses to compete; and address the affordability crisis. The committee consists of nearly 40 local employers including Northrop Grumman, Solar Turbines, Sempra, Thermo Fisher Scientific, San Diego Padres and more.

Inclusion is not a philanthropy issue. This is about economic competitiveness, and San Diego’s employers must lead the charge in addressing inequity in our local workforce, said Janice Brown, founder and owner, Brown Law Group, and incoming board chair, San Diego Regional EDC. “But if any region can change and reinvent itself, it’s this one.” 

If the region intends to compete in the global market, employers and economic development leaders must work to ensure all workers have equal opportunity to thrive. While talent attraction efforts are necessary in an increasingly global economy, San Diego must ensure its future workforce is prepared for jobs in the innovation economy and recognize opportunity within its local talent pool.

To view the research summary, click here.

Over the next year, EDC and the Steering Committee will produce ongoing research and develop actionable recommendations to inclusive economic development in San Diego that will be updated on sandiegobusiness.org/inclusivegrowth.

The initiative launched at an event hosted by EDC at the Jackie Robinson YMCA, with special guest Amy Liu, vice president and director of the Metropolitan Policy Program, at the Brookings Institution.

Other partners and organizations are making progress as well. On February 27, National University and the San Diego Workforce Partnership are hosting Dr. Raj Chetty, leading impact economist from Stanford University, and the author of research that inspired much of the focus on inclusion, nationally.  He will discuss social mobility markers and the link between mobility and economic growth. To RSVP for the event, click here.

 

February 14, 2018

Last week, President Trump signed a two-year budget deal that included a hike in the debt ceiling and agreements to raise spending caps for domestic and defense programs.

For San Diego, a community where 20 percent of our GRP is tied to the military, this bill provides some stability and relief from the constant threat of continuing resolutions and sequester.

In order to better understand how fluctuations in defense spending impact our regional economy, EDC has released “Mapping San Diego’s Defense Ecosystem,” as well as a data visualization tool at SanDiego.DoDspend.com. This is the first of its kind regional analysis that focuses on the industrial composition of the defense supply chain and quantifies the number of firms and jobs that are impacted by defense spending. This project was executed as part of phase one of Propel San Diego, a Department of Defense funded grant initiative awarded to the City of San Diego.  

Specifically, the web tool provides deal flow information at the zip code level and by industry across the county. Why this matters: the 2019 budget includes two Fleet Replenishment Oilers (T-AO) priced at $1.1 billion. These ships will likely be built by General Dynamics NASSCO here in San Diego. While those contracts are awarded over a period time, by using this new tool, users can see that this funding will have a direct impact in creating more than 1,000 jobs in the shipbuilding and repair industry.

Key study findings include:

  • San Diego is the second largest recipient of defense procurement dollars in the U.S. 
  • A strong network of suppliers and access to customers are key reasons that 71 percent of firms have a favorable view of San Diego as a place to do business.
  • Defense contractor jobs have grown 6.3 percent over the last three years, and are expected to grow another 9.3 percent over the next year.
  • Since 2012, the majority of contract dollars received by the region were awarded by the Department of the Navy, each year awarding between 44 and 55 percent of total awards.
  • The majority of contract dollars were awarded to companies in the manufacturing industry, each year receiving anywhere between 47 and 68 percent of total contract dollars.


These resources provide companies, city planners, workforce agencies and economic development organizations better insights into how legislation like the bill signed into law last week can impact the San Diego community. The data has the potential to help companies prepare for new market opportunities and help communities prepare for changes in workforce demands, as has helped inform how EDC can better prioritize our limited resources in support of the region’s defense industry.

Following the successful execution of Propel San Diego’s phase one, the City of San Diego has been awarded a phase two grant for an additional $1.7 million. For more information, visit sdmac.org/propel.

Read the full study here.

 

February 9, 2018

On January 24, WTC San Diego partnered with the U.S. Department of Commerce to host a roundtable discussion on data protection and privacy regulation.

Beginning in May 2018, virtually all U.S. exporters to Europe will need to be compliant with the new EU General Data Protection Regulations (GDPR). Regardless of the company, industry or sales market, there will be new requirements and stiff fines for companies in the case of non-compliance.

At this roundtable, Nasreen Djouini, policy advisor at the U.S. Department of Commerce, discussed important developments in the GDPR and introduced the EU-Swiss-U.S. Privacy Shield Framework – a mechanism that provides companies on both sides of the Atlantic a way to comply with data protection requirements when transferring personal data in support of transatlantic commerce.

Djouini also advised on the Cross-Border Privacy Rules (CBPR) System developed by Asia-Pacific Economic Cooperation (APEC). The CBPR is a mechanism that helps to bridge privacy regulation differences by providing a single framework for the exchange of personal information among participating economies in the APEC region.

Hosted by CBRE, the event was attended by more than 30 San Diego business executives from companies either planning to, or currently, conducting business overseas.