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The Big Picture San Diego Blog


April 2018

April 30, 2018

Next month, join WTC San Diego for the finale of the 2017-2018 MetroConnect export assistance program. MetroConnect, presented by JPMorgan Chase, is a comprehensive export support program designed to help San Diego companies accelerate their global growth. Fifteen San Diego companies were chosen to participate in the 2017-2018 program, representing a variety of sectors including life sciences, maritime, craft goods, and cleantech. These companies received a $10,000 grant and services to help them increase international sales.

On June 7, WTC San Diego is inviting four of the top performing companies back to compete for an additional $35,000. The catch? These companies will be looking to the audience to judge and award the extra cash. Make your vote count at the Grand Prize Pitchfest, as these promising local companies make their final case to be MetroConnect champion.

The event will take place from 2:30 – 5:30 PM at The Alexandria at Torrey Pines. Matt Cole, president of Cubic Transportation Systems will deliver the keynote address. Networking reception to follow.

 

April 25, 2018

WTC San Diego attended the World Trade Centers Association General Assembly (GA) in Leeuwarden, Netherlands alongside leadership from the Port of San Diego. Programming for the GA included educational sessions on global trade and investment, company tours, and networking events.

Following the GA, WTC arranged meetings for the Port of San Diego relating to aquaculture and maritime technology. Post-GA programming included meetings with Dutch ports, trade organizations, centers of excellence, water tech companies, fish farms, and maritime incubators.


April 24, 2018

 

San Diego is among 15 cities being considered for the Army Futures Command, a new major command for the United States Army that will incubate emerging technology and innovations. San Diego Regional EDC will be submitting a joint response with the City of San Diego to the Army’s request for additional information on the City. 

 “San Diego easily checks all the boxes for the Army Futures Command. We have a community that embraces its innovation economy, an unparalleled workforce, and top-tier universities,” said Mark Cafferty, president & CEO of San Diego Regional EDC. “But beyond that, San Diego has a long history of collaborating with the military to spur innovation and protect national security.” 

The new Army Futures Command will employ both a military and civilian workforce, creating nearly 500 jobs. 

The City of San Diego was informed of its candidacy in a letter sent to Mayor Kevin Faulconer on April 17, 2018.

Your city appears to have a combination of talent, commercial, and academic innovation, and quality of life that we are looking for in locating the command,” said Under Secretary of the United States Army Ryan D. McCarthy in a letter. The document also states that the Army favors locations with a growing technical workforce and is looking for a concentration of occupations including engineers (biomedical, chemical, computer, electrical), as well as software developers.

SAN DIEGO'S COMPETITIVE ADVANTAGE

In early 2018, Robert Half staffing company named San Diego the number one city for tech job growth in the first half of 2018. Additionally, STEM jobs are 34 percent more concentrated in San Diego than the U.S. average, based on a San Diego Regional EDC analysis of EMSI data.

According to the San Diego Military Advisory Council (SDMAC), the San Diego region is currently home to the largest concentration of military in the world. The military generates one out of every five jobs in the San Diego region. While the U.S. Navy, Marine Corps, and Coast Guard have a significant presence in the region, the Army Futures Command would establish a new military branch in San Diego.

San Diego is also the headquarters of the Space and Naval Warfare Systems Command (SPAWAR), which is responsible for supplying the U.S. Navy with innovative technologies. According to a separate SDMAC study, SPAWAR pumped $1.77 billion into the regional economy in 2014 alone.

 “Like San Diego, many cities in the running offer a strong quality of life and skilled workforce. However, San Diego’s legacy of military innovation sets us apart,” said Jesse Gipe, senior manager of economic development at San Diego Regional EDC who handles the organization’s military portfolio. “If the Army views a long history of collaboration with military personnel, a focus on commercializing military technologies and a highly-skilled workforce with security clearances as an asset, then San Diego has a competitive chance of becoming the new Army Futures Command headquarters.”

The other cities being considered include Atlanta, Austin, Boston, Chicago, Dallas, Denver, Houston, Los Angeles, Minneapolis, New York, Philadelphia, Raleigh, San Francisco and Seattle.

EDC and the City of San Diego will send in the requested information by the May 10, 2018 deadline. 

 

 

 

 

April 20, 2018

Each month the California Employment Development Department (EDD) releases industry data for the prior month. This edition of San Diego’s Economic Pulse covers March 2018 data, including unemployment, new business establishments, and job postings.

Highlights include:

  • The region’s unemployment rate was 3.2 percent in March, down 0.3 percentage points from February’s revised rate of 3.5, and 1.0 percentage point lower than a year ago.
  • Every jurisdiction saw a decrease in the unemployment rate from the month prior.
  • The labor force contracted slightly, shedding 8,700 workers during the month. The labor force is now up 1,800 compared to a year ago.
  • The largest job increases in March came from education and health services, up 1,200 jobs. Retail saw the largest decline during the month, losing 1,000 jobs.

Get the details in the full Economic Pulse here.


 

 

 

 

 

 

 

 

April 18, 2018

EDC's San Diego: Life. Changing. campaign is all about telling San Diego’s authentic story. Besides our impressive new technologies and literally life-changing scientific breakthroughs, there’s nothing more innately San Diego than our delicious craft beer.
 
EDC has partnered with Ballast Point to create a special Made in San Diego craft brew, exclusively available in San Diego County. Just like our campaign, this beer is made for San Diego, by San Diego.
 
Ballast Point has been an integral part of the San Diego community for more than 20 years. It was founded here in 1996 as a home brew shop, and with the support of its community, Ballast Point has grown into the global craft beer giant that it is today. As a way to give back to its hometown that has given it so much, Ballast Point will donate a portion of every case sold to a new fund created by EDC’s foundation, to support local entrepreneurs that share the same dream of growing their business right here in San Diego.
 
The Made in San Diego beer features the same level of innovation, quality, and flavor that embody San Diego and Ballast Point. With packaging that pays homage to the vibrant cities and neighborhoods across the San Diego region, it's an easy-drinking Kolsch that features toasted bread aroma and flavor from Munich malt and a soft bitterness from Cascade and Mosaic hops. The beer cans also feature the San Diego: Life. Changing. brand mark, as a proud partner of our campaign.
 
Made in San Diego beer will be available on draft throughout San Diego County later this month, with six-pack 12 oz. cans rolling out region-wide at the end of May.

Raise a glass with us, and visit MadeinSD.com to learn more about this #SDlifechanging partnership.

 

 

 

 

 

 

April 16, 2018

This op-ed was first published in the San Diego Business Journal, authored by EDC's Dr. Nikia Clarke, Brown Law Group's founder and owner and incoming EDC Board Chair Janice Brown, and Brookings Institution's Amy Liu. 

San Diego is poised to become an unstoppable force in the global economy. The region is home to 34 percent more STEM workers than the national average, ranks third in the U.S. for patent intensity and has the sixth highest rate of income mobility.
 
While the rise of the innovation economy has created wealth and opportunity, it has also left many residents behind. This is leading to wide economic inequalities that, if left unaddressed, will cause San Diego to lose employees and companies to other regions.
 
San Diego Regional EDC and the Brookings Metropolitan Policy Program have collaborated over several years to make San Diego a prosperous global city. Last year, San Diego joined Brookings in a learning lab focused on inclusive economic growth. Here is what we learned:
 
According to the Center on Policy Initiatives, more than one million residents cannot afford to live in San Diego. Driven by wage increases in the innovation economy and constraints on the supply of housing, the region now has the fourth highest cost of living in the country.
 
San Diegans are spending an increasingly greater proportion of incomes on housing. These pressures are already impacting some of San Diego’s largest employers, as prospective talent opts for competing regions with lower costs of living.
 
In San Diego, more than 98 percent of the region’s employers are small businesses (less than 100 employees), which have less capital available to pay competitive wages. Employees of small businesses typically earn up to 20 percent lower wages than their peers at larger corporations. Because of this dynamic, the region’s small businesses struggle to compete with larger companies for skilled talent.
 
And this all comes at a time when workforce demographics are rapidly changing. Brookings research has shown that 59 percent of millennials and 67 percent of post-millennials in San Diego are racial and ethnic minorities. By 2030, Hispanics will become San Diego’s largest demographic group, and yet 85 percent currently do not hold a bachelor’s degree or higher.
 
Achievement Gap
 
Unless all San Diegans are willing to invest in closing this minority achievement gap, we will continue to constrain the region’s ability to compete in the global market. Employers cannot simply rely on the in-migration of workers. The real opportunity lies within our local talent pool. 
 
With the compounded impact 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, San Diego has a problem that cannot be ignored. They point to an economic imperative for change. We must recognize that the roots of exclusion are economic, and must be systematically addressed by employers and policymakers, not left to philanthropy.
 
Calls to Action
 
Over the next year, a regional Steering Committee will be releasing research and recommendations to address these challenges that together create a platform for inclusive growth.
 
If leaders do not take measures to promote economic inclusion, San Diego will find itself unable to compete in a global economy that is increasingly unforgiving to businesses and regions that cannot adapt. If San Diego tackles these challenges head-on, it will position itself as a national leader among metro areas in building an innovative economy that works for all.
 
San Diego has evolved from border town, to military hub, to tech and innovation powerhouse. With the will, leadership and a healthy dose of experimentation and collaboration, San Diego can build an economy that reaches and includes all of its residents and employers.
 
Janice Brown is president of Brown Law Group. Nikia Clarke is executive director of World Trade Center San Diego. Amy Liu is director of the Metropolitan Policy Program at the Brookings Institution.

 

 

 

 

 

April 11, 2018

The California Competes Tax Credit (CCTC) is an income tax credit program available to both small and large businesses with plans to expand in or relocate to the state of California. Negotiated by the Governor’s Office of Business and Economic Development (GO-Biz), the California Competes Tax Credit program has awarded more than $600 million in credits to California companies since the program’s inception in 2014. In the FY 2017-18 round alone, the state will grant more than $230 million.

Each year, the state grants a series of awards over three rounds: November, April, and June. In the April round of FY 2017-18 program, the state awarded 63 companies a total of $72 million in tax credits based on commitments to add more than 6,500 jobs and invest more than $490 million by 2021. San Diego received 16.27 percent of the total credits, just behind the LA metro that received 22 percent of credits.

Based on the recent announcement, 15 San Diego companies were awarded more than $11.7 million in tax credits. Compared to other metros across California, San Diego fared well across all measures. Of all metros, San Diego received the highest number of small business awards, with more than 40 percent of small business recipients hailing from San Diego. These small businesses were awarded more than $1.7 million in tax credits for commitments to create 71 jobs and invest $4.5 million.

San Diego large businesses – defined as more than $2 million in annual revenue – were awarded more than $10 million in credits. San Diego ranks second in the large business category, with 16 percent of total credits awarded to local large businesses. San Diego also earned the second place ranking in the amount of job creation among all metros, with almost 700 new jobs coming to the region over the next five years.

In this CCTC round, San Diego recipients will invest more than $67.5 million into the community and pay nearly $138 million in wages over the next five years. Since inception, more than 125 San Diego companies have been awarded more than $75 million in credits, committing to the creation of more than 8,500 jobs and $1.4 billion in investments.

Of the 15 company recipients, EDC consulted six winners throughout the application process. Among those that received EDC support, top awardees include Bank of the Internet ($5M credit), Planck Aerosystems ($600K credit), and Fuse Integration ($500K credit).

For more information regarding the California Competes Tax Credit program, please contact Jesse Gipe.

 

 

 

 

April 11, 2018

With and through our investors, EDC maximizes San Diego’s economic competitiveness. Here's our Q1 in review:

Regional Support
In order to grow jobs, EDC dispatched the following company support tactics and events throughout Q1:
 
San Diego: Life. Changing.
EDC's global identity efforts serve to elevate the region as a top destination for talent and investment. In Q1, EDC told authentic stories about the people and companies that call San Diego home. Here's how:
 
Research
Understanding our economy begins with strong data. EDC develops economic reports to help business and civic leaders make informed decisions specific to growth and inclusion across the region. EDC released the following economic reports:
 
WTC San Diego
As part of EDC, World Trade Center San Diego works to cultivate a pipeline of export-ready firms, maximize FDI opportunities, and grow the region's global connectivity. Q1 outcomes included:

See EDC's full Q1 Report here.

April 4, 2018

Each year, EDC honors an individual who has demonstrated outstanding leadership in addressing challenges and making significant contributions to improving our region. We are honored to announce Dr. Mary Walshok as the 2018 Honoree of the Herb Klein Civic Leadership Award

The Herb Klein Civic Leadership Award is presented by:

Dr. Mary Walshok is an author, educator, researcher, and Associate Vice Chancellor for Public Programs and Dean of Extension at the University of California San Diego. She is a thought leader on the topic of workforce development and its role in fueling regional economic prosperity. Dr. Walshok is the co-author of “Invention & Reinvention: The Evolution of San Diego’s Innovation Economy,” a book published by Stanford University Press that analyzes San Diego’s ever-changing sociological, political, and economic trends. In addition, she is the author of five other books and more than 100 articles and reports on regional innovation, the role of research institutions in regional economies and workforce development. Her work has led to a number of international engagements and awards in Sweden, the UK, Asia, and Latin America. 

Dr. Walshok oversees a $45 million, 200-employee division  in San Diego that annually serves more than 80,000 enrollees through innovative local and online programs, as well as provides access to a vast array of intellectual resources through the award-winning UCSD-TV and nationwide through UCTV, which reaches more than 6 million households and millions more around the globe via web. The Division also serves more than 3,000 foreign students annually.
 
Dr. Walshok was a co-founder of the internationally recognized CONNECT in 1984 on whose board she still serves and of the San Diego Dialogue in the 1990s, a program focused on opportunities in the San Diego-Tijuana region. She has chaired the Francis Parker School and The San Diego and International Community Foundation Boards and continues to sit on the boards of the La Jolla Playhouse, the Girard Foundation, and the Foundation for U.S./Mexico Science and Technology. 
 
Please join us at SeaWorld on May 31 to celebrate Dr. Mary Walshok and more. Register here.