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The Big Picture San Diego Blog


Big Picture San Diego Blog

June 24, 2016

Cyber study launch

In 2012, then FBI Director Robert Mueller stood up at a cybersecurity conference and said, “There are two types of companies- those who have been hacked and those that will be.”

Whether you’re a Fortune 500 company, military contractor, genomics company or a neighborhood restaurant, cybersecurity has become ubiquitous for all businesses.  Accord to Cybersecurity Ventures, an estimated $1 trillion will be spent on cybersecurity from 2017 to 2021. These global businesses may have San Diego – or rather one of its 100 plus cyber firms – to thank for that.

A new study released this week by San Diego Cyber Center of Excellence, with research by San Diego Regional EDC, provided additional insights on the impact of San Diego’s cyber economy.  In total, 104 core cyber firms employ 4,230 people in the region. SPAWAR,  which leads R&D efforts on behalf of the Navy to deploy cyber security products, employs an additional 3,390 in the cyber industry. The blend of defense and commercial cyber focused companies and research is a unique and powerful strength for the San Diego region.

According to the study, San Diego’s cybersecurity industry generates more than $1.9 billion in GDP and impacts 16,580 jobs annually – equivalent to hosting four Super Bowls or 14 Comic-Cons each year – and has grown by more than 26 percent in just two years, since EDC’s last cyber study.

“San Diego is uniquely positioned to capitalize on the ever-growing global demand for cybersecurity products and security,” said San Diego Mayor Kevin Faulconer. “This study shows how the convergence of the innovation economy, education and research, and department of defense presence creates a fertile ecosystem for companies and talent.”

San Diego, with its strong concentration of military personnel,  growing base of software jobs and university specializations, also benefits from a rich pool of cybersecurity talent. It’s one of the reasons companies such as ESET and iboss have set up shop here. More than 51,000 technology specialists call San Diego home and work in a variety of cybersecurity-related occupations. Employers surveyed expect their cybersecurity workforce to grow by 13 percent in the next year compared to projected 2 percent overall regional job growth. 

See the full study here. You can find EDC's 2014 cyber study here

June 23, 2016

In collaboration with San Diego County College and Career Readiness Consortium and Mayor Faulconer’s One San Diego 100 initiative, EDC is working to create and provide work-based learning opportunities across the region to help develop and retain San Diego’s talent. With opportunities including job shadows, company tours, industry panels and access to internships, students gain exposure to our region’s diverse career opportunities.  

This quarter, EDC coordinated day-long job shadows at various organizations throughout San Diego including The Control Group, San Diego Union Tribune, Cox Communications, SAIC, Ethertronics Inc. and the FBI.

Check out the students’ experience at video production company Scratch Media and broadcast news station CW6:

 

Together, in collaboration with East County EDC, Junior Achievement and Cleantech San Diego, more than 1,600 young people have been provided industry exposure experience through job shadowing. 

June 22, 2016
San Diego’s large and complex concentration of Navy and Marine Corp personnel and assets face a wide variety of challenges ranging from budget pressures under sequestration to consequences of changing geopolitical strategies like the rebalance to the Pacific. With more than 22 percent of San Diego’s GDP tied to our military and defense industrial base, this sector is a critical driver of the region’s economy. 
 
This connectivity is why EDC works in close partnership with the San Diego Military Advisory Council (SDMAC) to develop strategies to support the region’s military through a coordinated DC strategy. SDMAC, with its extensive group of retired flag officers, has the network and understanding necessary to advocate for the defense industry in San Diego as they face budget and geopolitical pressures.  
 
This year, EDC joined SDMAC for its annual DC trip, where Executive Director Randy Bogle and President Ward Wilson met with senior Navy and Marine Corp commanders and our local congressional delegation to discuss how best we can continue to support the military in San Diego. 
 
Meetings in DC ranged from conversations with Navy Surgeon General, Vice Admiral Forest Faison on how best to continue to build partnerships in our medical community to ensure the long-term wellbeing of our veteran population, to conversations with Assistant Secretary of the Navy Sean Stackley about the importance of our shipbuilders in San Diego and how future ship deployments will impact the region. Conversations at the Pentagon were followed by a series of meetings with San Diego’s congressional delegation, whose leadership positions on the HASC and other key committees continue to prove valuable to San Diego. Maintaining a presence in DC with trips such as this are critical to our being effective allies for the region’s military. 
 
June 21, 2016

First, Germany. Now, Switzerland. Q2 was chock-full of global wins for San Diego. The San Diego International Airport recently announced a new nonstop service to Zurich, Switzerland. Edelweiss, a Swiss leisure carrier owned by the German airline Lufthansa, will operate flights between the two cities on Mondays and Fridays starting in 2017.

As part of EDC’s efforts to increase San Diego’s global competitiveness, EDC and World Trade Center San Diego (WTC San Diego) worked in partnership with the San Diego Tourism Authority to support the San Diego County Regional Airport Authority in bringing Edelweiss’ nonstop seasonal service to Switzerland. Making the case for San Diego, WTC San Diego provided data and research on economic ties to the European innovation hub.

 Why Switzerland matters to San Diego:

  • Switzerland ranks third among all nations for the most foreign employment in San Diego.
  • Swiss companies such as Novartis and Genentech call San Diego their home.
  • In 2011, more than 50 percent of all Swiss employment entered San Diego through M&A activity.

Airport Authority CEO Thella Bowens said that with the addition of the flight, San Diego will have direct service to six countries and add to the list of foreign airlines operating out of Lindbergh Field.

June 21, 2016

This week, World Trade Center San Diego (WTC San Diego) traveled to Washington DC for the SelectUSA Investment Summit.

For the first time ever, San Diego had an organized and coordinated effort for the nation’s foreign investment summit. In partnership with the city of San Diego and the city of Chula Vista, San Diego hosted a booth that attracted nearly 40 international companies and investors that communicated interest the San Diego region. These interests ranged from learning about the city’s concentration of innovation-based industries, San Diego’s climate action plan and the region’s growing talent pool. While quantifiable value is still be determined, the overall experience by the San Diego delegation was incredibly positive and we’re all in agreement that SelectUSA did a top-notch job.

The summit hosted more than 2,400 visitors from 70 international markets, including some of San Diego’s priority markets – Japan, China, Germany, Canada and more. Foreign direct investment (FDI) is a key tenant of the work WTC San Diego undertakes, especially as it tends to increase the research and development funding of a region (great when your region’s R&D efforts contribute more than $14 billion), pay employees better wages/salaries (great when your region’s pay is already competitive for its employed citizens) and can fill key capital gaps of a region (which enhances the fact that San Diego receives the fourth highest amount per capita of venture capital in the software industry).

Staying on the topic of foreign investment, WTC San Diego’s executive director Nikia Clarke attended the inaugural meeting of the Investment Advisory Council (IAC). The IAC is a group of key foreign and domestic business leaders that will advise Secretary of Commerce Penny Pritzker and the U.S. Department of Commerce on policies that will enable the government to ensure foreign investment flows into the U.S. economy. In an ever increasing global economy, where FDI is shifting from advanced economies to emerging, and from large business to small- and medium-sized enterprises, it has become apparent that the U.S. – both from a national and local level – needs to proactively market and attract foreign investment. With Nikia Clarke in attendance, the IAC will meet over the next two years in order to advise the current administration and help streamline the transition into the new one.

Finally, we couldn’t have had the presence we did at SelectUSA without the help and success of our leading local companies. To that effect, we want to thank Stone Brewing Co. for its incredible work in promoting the San Diego craft beer industry. Using their beer at the private reception WTC San Diego and the city of San Diego hosted on Monday night, we attracted more than 50 investors and gave them a taste of some San Diego region’s best assets – craft beer.

 
June 17, 2016

This week, the Worth Group announced that San Diego has been named as a 2016 “Worth Destination.” Featured in the June/July issue of Worth magazine, San Diego is among 15 cities lauded for civic leadership, quality of life, business climate, sustainability, entrepreneurial community, cultural offerings and urban innovation.

After months of deliberation and research by Worth's editorial team, San Diego was chosen for its burgeoning technology and life sciences ecosystems, powerful cross-border manufacturing economy, unparalleled infrastructure and world-class cultural institutions.

“San Diego has long been famous for its incredible natural beauty and beautiful weather,” says Richard Bradley, Worth’s editor in chief and chief content officer. “But thanks to its close and mutually beneficial relationship with Mexico, its status as a global hub with a particular emphasis on Asia, and its world-class scientific community, San Diego is also an economic powerhouse.” “Recognition like this from a magazine as prestigious as Worth shows that San Diego’s reputation is shifting,” says Joe Terzi, President and CEO of the San Diego Tourism Authority. “The city is becoming known for more than beautiful scenery. Showcasing San Diego’s innovation, creativity and strong business sector is vital not only for attracting new companies and talent to the marketplace, but it is also key for attracting top conferences and business travelers, which are a critical part of the local tourism economy.”

 “From advancing the human genome to developing cutting-edge military technologies, San Diego is a leader in global innovation,” said Mark Cafferty, president and CEO at San Diego Regional EDC. “Worth provides San diego with a powerful platform to tell our story to important audiences around the world.” Focused on entrepreneurship, wealth management, philanthropy, travel and lifestyle, the Worth media brand includes print, digital, broadcast and radio channels  as well as the bimonthly magazine Worth. The full list of Worth Destination cities will be announced on June 21. The June/July issue of the magazine featuring San Diego will be available on newsstands beginning June 28, 2016. 

June 17, 2016
Click here to download the May Employment Report.

While overall employment growth has slowed heading into summer, May proved to be another solid month for San Diego's economy. Here are EDC's top three takeaways from May's Manpower Monthly Employment report:

  1. Dropping to 4.2 percent, unemployment remains at the lowest rate in nearly nine years.
  2. Year-over-year nonfarm employment went up by 32,200, a 2.3 percent increase.
  3. The region’s leisure and hospitality industry was the largest driver of regional employment growth, adding 2,200 jobs since April.

“Consistent to what we have seen in previous years during the summer months, San Diego’s job growth in May was driven by our hospitality and tourism industry. Although regional employment growth has slowed, San Diego is still one of the healthiest economies in the state.”

Phil Blair, Executive Officer
Manpower San Diego



 

The California Employment Development Department (EDD) released statewide county employment data today for the May 2016 period. This month’s data shows that San Diego’s labor market fundamentals remained strong; unemployment continued to drop while total regional employment grew more slowly than previous months heading into the summer season. 
 
May’s unemployment rate dropped to 4.2 percent; down 0.3 percentage points from 4.5 percent in April. The rate is down 0.8 points from the previous year. San Diego’s unemployment rate continues to remain lower than both the statewide and national unemployment rates of 4.7 and 4.5 percent, respectively.
 
Total nonfarm employment increased steadily since April, adding 4,800 jobs. More importantly, year-over-year nonfarm employment went up by 32,200, a 2.3 percent increase. The private sector drove employment growth in May, as private employment accounted for nearly 82.3 percent, or an increase of 26,500 jobs, of all employment growth over the year. The total private sector grew by 2.3 percent year-over-year.
 
Heading into summer and peak tourism season, the region’s leisure and hospitality industry was the largest driver of regional employment growth, adding 2,200 jobs since April. Leisure and hospitality experienced moderate year-over-year growth, adding 3,900 jobs and contributing to 14.7 percent of private sector growth.
 
Professional and Business Services (PBS) accounted for over 52.7 percent of private sector growth, adding 1,900 jobs. Professional, Scientific and Technical services, a subset of PBS jobs and strongly associated with the region’s innovation economy, accounted for 25 percent of private growth, contributing 900 jobs in May.
 
Other key drivers for growth included health care and social assistance, which added 1,300 jobs since April and accounted for roughly 36.1 percent of the region’s private job growth. Over one quarter of all year-over-year growth in the private sector can be attributed to health care and social assistance, which added 7,000 since May 2015.
 
The May report released today showed many continued positive signs for San Diego’s economy. While overall growth was modest, the region posted another month of solid yearly job growth, in large part due to the continued growth in the goods-producing industries. Unemployment remains well below the state and national rates and growth was spread out across a variety of base sectors in the region.
June 16, 2016

In partnership with iDEA Hub, EDC hosted the 6th Annual Multi-Use Technology Symposium in conjunction with San Diego Startup Week. With industry leaders including NASA, SPAWAR, UC San Diego, Northrop Grumman and others in participation, the day-long event focused on robotics, autonomous vehicles and opportunities for entrepreneurs.

San Diego’s tech ecosystem is intimately connected to the region’s defense economy, with federal labs like SPAWAR continue to play a vital role in spurring innovation that has led to broad commercial success. To foster more engagement between federal labs across Southern California and San Diego’s rich entrepreneurial ecosystem, the symposium brought together nearly 150 attendees to discuss new technologies under development in autonomous vehicles and robotics.

SDSW provided an excellent venue for entrepreneurs from across San Diego to learn how they might partner with industry leaders and federal labs in San Diego’s rapidly evolving tech hub. The event showcased technologies from Northrop Grumman, 5D Robotics, UC San Diego, NASA Armstrong, China Lake, SPAWAR, Qualcomm, among others. Attendees were able to discuss cutting edge research and strategies on how to leverage these entities as business partners – driving San Diego and its innovative companies forward.  

Here's more on the role federal labs have played in driving tech innovation: 

June 9, 2016

This week, the San Diego County Regional Airport Authority announced a new seasonal service between San Diego and Frankfurt, Germany. The new flight – operated by Condor Airlines – will provide the only nonstop connection between San Diego and Continental Europe.

EDC and World Trade Center San Diego (WTCSD) worked in partnership with the San Diego Tourism Authority to support the San Diego County Regional Airport Authority in bringing Condor Airlines’ nonstop seasonal service to Frankfurt.

New international route service is a core priority of EDC and the newly relaunched WTCSD global competitiveness interests. Making the business case, the EDC and WTCSD team prepared a package of materials, including research related to economic ties between both Germany and San Diego, a series of case studies of German-owned firms operating in the San Diego region, as well as a compilation of San Diego-based companies operating in Germany.

Key economic figures include:

  • There are currently 135 German-owned firms in San Diego County, more than eight percent of all foreign-owned enterprises in the region.
  • Over the last decade, German companies have invested more than $300 million in new projects in our region, making Germany one of our top three largest greenfield investors.  
  • Germany ranks as the 4th largest source of foreign employment in San Diego, with more than 4,368 jobs in San Diego tied to German-owned businesses.
  • German companies such as Taylormade (owned by Adidas), Kontron and Siemens all have locations in San Diego.
  • Germany is a top destination for San Diego exports, especially in the machinery, electronics and precision instruments industries.
  • San Diego companies across diverse industries are targeting Germany, as seen with Stone Brewing Co.’s newly opened brewery in Berlin.

Upon meeting with the Condor team, EDC prepared and delivered a presentation outlining the growing interests between Germany and San Diego. In the weeks following the presentation, EDC answered a series of follow up questions and requests from the Condor Airlines route planning division to help secure its commitment to San Diego.

“As one of San Diego’s top partners for exports and foreign investment, Germany is fast becoming one of our economy’s most important international markets,” said Mark Cafferty, president and CEO of San Diego Regional EDC. “Condor’s new nonstop flight will now link San Diego to one of Europe’s most important economic and cultural hubs.”

 

Condor will begin service in May 2017 with up to three weekly flights on Mondays, Thursdays, and Saturdays. The route will operate on a Boeing 767-300ER aircraft and offer three classes of service: Business Class, Premium Class and Economy Class. Flights can now be booked online at http://www.condor.com/

June 1, 2016

With over 3.2 million people and nearly 1.5 million jobs in the San Diego region today, San Diego’s extensive network of highways, roads, rail lines and public transit serves as the backbone of our economy. Essential for the movement of people and goods in and around the region, transportation infrastructure strengthens the regional economy and promotes future economic growth. Expansions and enhancements to roads, highways and public transit reduce congestion, decrease travel times and increase business productivity and overall economic competitiveness.

First approved by voters in 1988, TransNet – the region’s half-cent sales tax – has funded a variety of local transportation projects including roads, highway, public transit and active transportation. Since its inception, nearly $3.3 billion in funds collected by TransNet have been leveraged with nearly $10 billion more from federal, state and local funding sources to deliver more than 650 projects throughout the region. EDC released an economic impact analysis of TransNet, which reveals how investments in transportation over the last 25 years have impacted San Diego’s economy.

Key findings:

  • TransNet has a $20 billion economic impact.
  • 650 projects have been completed to date, including 6,500 acres preserved as open space.
  • Every $1 collected in TransNet taxes results in a $1.70 increase in the region’s GDP.
  • TransNet supports 5,300 jobs annually and has contributed $9 billion in total local wages.
  • Regional benefits from infrastructure investment include 12.4 million hours of commute time savings and $500 million in travel time savings annually.  
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