Good News of the Week – July 2, 2020

Every week, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week.

For the week of July 2, 2020, here’s what we’re reading:

…and here are the events we’re (virtually) attending:

COVID-19 Survey Results: Anticipated impacts become reality

In March, we deployed a survey to assess the immediate economic impacts and evolving business sentiment in the wake of COVID-19. To assess changes over time, we deployed a follow-up survey with local partners.

Three trends stood out based on what employers told us:

  • Anticipated revenue declines and staff reductions confirmed by businesses.
  • Minority owned businesses are hardest hit but may lead recovery.
  • Telework is here to stay.

Read more.

COVID-19 & San Diego:

Amidst everything happening in the world, we need a reminder that there’s plenty of ‘Good News’ to go around in SD. We have also compiled additional resources for businesses and individuals seeking additional guidance

For businesses:

For individuals:

Be in the know – Sign up below to receive future editions of GNOTW.

Want to submit your event or news update to our weekly newsletter? Contact us for more information.

Heather Dewis
Heather Dewis

Coordinator, Marketing

COVID-19 Survey Results: Anticipated impacts become reality, minority owned businesses hit hard, and workspace changes will continue

Earlier this year, we deployed a survey to assess the immediate economic impacts and evolving business sentiment in the wake of COVID-19.

To assess changes over time, we have deployed a follow-up survey with our partners at San Diego Regional Chamber of Commerce, San Diego and Imperial Small Business Development Center. The Downtown San Diego Partnership and National City Chamber of Commerce also served as survey partners. Information collected was from May 28 – June 8 and includes 194 valid responses.

Three trends stood out based on what employers told us:

  1. Anticipated revenue declines and staff reductions confirmed by businesses; 41 percent of businesses surveyed saw revenues decline by 81 to 100%, 93 percent saw  staffing declines of one to 50 employees.
  1. Minority owned businesses are hardest hit but may lead recovery. Long term, minority owned businesses anticipate continuing workspace changes (56 percent), teleworking (41 percent), offering online services (34 percent), and virtual programming and team building.
  1. Telework is here to stay, with 47 percent of firm surveyed reporting workspace changes to continue after the state of emergency is over.

Understanding COVID-19’s impact: an interactive visualization

Below is an interactive visualization of self-reported impacts to local employers, both in terms of employment and revenue. You can segment the data by industry, number of employees, and typical annual revenue. Additionally, please scroll over the tab to look at the breakdown of responses via zip code. Please note, this is not a representative sample – meaning we did not weigh responses operationally to the population and demographics of the region – so we strongly advise against drawing sub-regional conclusions from this data.

Survey Overview

The economic impacts of this crisis disproportionately affect the parts of our community that are disconnected from growth: communities of color and small businesses. The right recovery means focusing on efforts that benefit all San Diegans in this unique moment in time.

The overwhelming majority of firms surveyed (93 percent) were small businesses (fewer than 100 employees) and most (73 percent) had revenues of less than $1 million in 2019. Survey respondents were concentrated in the food and beverage, professional services, manufacturing, and retail industries.

Nearly 93 percent of firms surveyed saw their revenue decline, with most (41 percent) declining by 81 to 100 percent. However, more than one third expect revenues to return to 2019 levels in six to 12 months. The majority cut back on payrolls, with nearly 74 percent reducing staff hours and 60 percent reducing staff. The food and beverage industry had the most (19 percent) full time layoffs, followed by professional services (17 percent). Overall, most firms in all industries expect layoffs to be temporary, but 32 percent are still unsure. The uncertainty might be due to growing concern that the economy will fully reopen within the coming summer months, but a second wave in the fall will turn temporary layoffs into permanent ones.

Nearly 87 percent of firms surveyed applied for government (federal, state, or city) or private (company grants or bank loans) funding, and 70 percent who applied received funding. Firms that received private (company grants or bank loans) funding received more than $260,000 on average and firms that received government funding received more than $245,000 on average

Firms located in the opportunity zone represent 12 percent of survey respondents, or 24 businesses. In terms of access to capital, nearly 63 percent of firms located in an Opportunity Zone cited access to capital as a long term need in response to COVID-19, while 43 percent of all survey respondents cited access to capital as a long term need.

When asked about the changes a firm has experienced as a result of the pandemic, the top response was “scope of work”, which indicates firms are adjusting their business models and changing the range in which they operate in response to COVID-19. Unsurprisingly, in the short-term, businesses’ greatest needs are increased revenues and additional capital. While many businesses are unsure of the longer-term impact, they still anticipate needing capital and replacing staff.

Anticipated Revenue Declines and Staffing Reductions Confirmed

Most anticipated revenue impacts in the beginning of the COVID-19 pandemic were realized, even as reopening continues across San Diego County. More than 95 percent of businesses surveyed that expected their revenue to decline saw an actual decline in their revenue. Nearly 97 percent of businesses that expected their revenue to decline by 81 to 100 percent saw an actual decline of that amount.

Most anticipated staffing impacts in the beginning of COVID-19 pandemic were realized as well. More than 73 percent of firms surveyed who anticipated staff reductions actually reduced their staff. Most staff reductions were between 1 and 50 employees. More than 78 percent of those that anticipated staff reductions of one to 50 employees actually saw these reductions.

Minority-Owned Businesses

A new report shows that because minority owned small businesses have been disproportionately impacted by COVID, they may demonstrate how US businesses will ultimately adapt. These businesses are experimenting with new ways of working to ensure their employees’ safety, offering relief to employees and community members, and introducing new services. In San Diego, the top adjustments minority owned businesses made in response to the pandemic that are working well are workspace changes (56 percent), teleworking (41 percent), offering online services (34 percent), and virtual programming and team building.

There were 44 minority owned businesses that responded to the survey. Nearly all (98 percent) of minority owned businesses surveyed were small businesses with fewer than 100 employees. These businesses are concentrated in professional services, food and beverage, manufacturing, and retail – the industries hardest hit by COVID-19. The latest employment data shows that from February to June 2020, local retail, food and beverage, and professional services lost a combined 86,200 jobs. More than 90 percent of minority owned businesses have seen their revenue decline, with most experiencing steep revenue declines of 81 to 100 percent.

Workspace Future

In order to keep operating, many businesses have made changes to their physical workspace and/or are have employees working remotely. Firms surveyed expect to maintain these arrangements even after the state of emergency is lifted. Nearly 76 percent of firms surveyed report physical space as critical for operation, with most of those businesses in food and beverage, professional services, and manufacturing. Only seven percent of firms reported the pandemic has shown them that office space is unnecessary. Firms were split in regards to whether physical workspace will decrease, increase, or remain the same in the future.

Resources for you

San Diego Regional EDC, San Diego Regional Chamber of Commerce, and San Diego and Imperial SBDC offer a variety of resources to help businesses.

If you would like assistance from EDC, please use this form. Once we receive your responses, we will make every effort to reach out to you within 24 hours.

Request EDC assistance

If you are looking for general information about COVID-19, please view this page.

You can view last week’s COVID-19 survey results, as well as a full screen dashboard, here.

Good News of the Week – June 26, 2020

Every Friday, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week.

For the week of June 26, 2020, here’s what we’re reading:

…and here are the events we’re (virtually) attending:

 

Economy in Crisis: Retail likely to rebound in June

In May 2020, the region recovered 18,200 jobs, and many shops reopened their doors to customers in June with modified social distancing protocols in place. If San Diego follows May’s record 17.7 percent jump in U.S. retail sales, it’s not unreasonable to assume a similar bounce back could emerge locally in June. Read more.

COVID-19 & San Diego:

Amidst everything happening in the world, we need a reminder that there’s plenty of ‘Good News’ to go around in SD. We have also compiled additional resources for businesses and individuals seeking additional guidance

For businesses:

For individuals:

Be in the know – Sign up below to receive future editions of GNOTW.

Want to submit your event or news update to our weekly newsletter? Contact us for more information.

Heather Dewis
Heather Dewis

Coordinator, Marketing

Good News of the Week – June 19, 2020

Every Friday, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week.

For the week of June 19, 2020, here’s what we’re reading:

…and here are the events we’re (virtually) attending:

World Trade Center San Diego: MetroConnect announces fifth cohort

15 companies have been selected to participate in MetroConnect V, the fifth iteration of WTC San Diego’s international sales accelerator program, underwritten by Procopio and JPMorgan Chase & Co. From community-owned health and genomic data platform LunaPBC to California’s very first employee-owned brewery Modern Times, the MetroConnect V companies represent a diverse cross section of San Diego’s innovation economy. Read more.

COVID-19 & San Diego:

Amidst everything happening in the world, we need a reminder that there’s plenty of ‘Good News’ to go around in SD. We have also compiled additional resources for businesses and individuals seeking additional guidance

For businesses:

For individuals:

Be in the know – Sign up below to receive future editions of GNOTW.

Want to submit your event or news update to our weekly newsletter? Contact us for more information.

Heather Dewis
Heather Dewis

Coordinator, Marketing

San Diego’s Economic Pulse: June 2020

Each month the California Employment Development Department (EDD) releases employment data for the prior month. This edition of San Diego’s Economic Pulse covers May 2020 and reflects some effects of the coronavirus pandemic on the labor market. Check out EDC’s research bureau for more data and stats about San Diego’s economy.

Unemployment Unchanged

The region’s unemployment rate was 15.0 percent in May, unchanged from a revised 15.0 percent in April, and far above the year-ago estimate of 2.8 percent. The region’s unemployment rate remains lower than the state unemployment rate of 15.9 percent, but higher than the national unemployment rate of 13.0 percent (not seasonally adjusted) during the same time period, respectively. Read more about EDC’s unemployment analysis.

Employment Bouncing Back

Between April 2020 and May 2020, total nonfarm employment in San Diego increased from a revised 1,290,800 to 1,309,000, a gain of 18,200 jobs. Overall, from February when the pandemic first began to May 2020, San Diego employment has declined by 205,500 jobs. In California, nonfarm employment decreased by 2.9 million in May from the month prior, and payroll employment increased by 2.5 million in the U.S. during the same time period.

Compared to a year ago, San Diego nonfarm employment declined by 195,800 jobs or 13.0 percent. In California, total nonfarm employment decreased by 2.3 million jobs, or 13.0 percent, from May 2019 to May 2020 compared to the U.S. annual loss of 17.7 million jobs, or 11.7 percent.

Sector Employment Slowly Returns

The leisure and hospitality industry accounted for the largest monthly gains, adding 7,900 jobs in May, primarily concentrated in food services and drinking places as restaurants began to reopen. While it is encouraging that the food services and drinking places sector has added jobs the last month, the industry has 40 percent fewer jobs compared to a year ago.

Educational and health services increased employment this month by 5,500 jobs, concentrated by 6,300 positions in health care and social assistance. Non-emergency health services added 5,800 of those positions, which accounts for roughly half of the jobs lost between March and April.

Construction followed with an additional 3,500 positions, and business/professional services recovered 2,500 of the 11,000 jobs lost between March and April. The bulk of the job gains in professional services came from administrative services, which includes temp help and employment services. This is particularly encouraging, as these types of jobs tend to become permanent over time and is an indicator of job growth in the relatively near future.

The accommodation industry continues to struggle with a monthly decline of 1,900 jobs, or 14 percent, in May. Accommodation industry employment has declined by nearly 64 percent from May 2019 to May 2020. While San Diego employment in accommodation is larger than many other regions, the job losses are in line with both San Francisco and Los Angeles Counties.

While job losses were not as extreme this month, clothing stores employment is about half its level from a year ago.

The largest monthly employment decline was in government, with a loss of 4,700 jobs, concentrated in state government — particularly state government education, which includes public colleges —and consistent with national trends.

As San Diego’s economy continues to reopen, current labor market trends provide a glimpse of the long-term effects on the economy. While some industries have brought back jobs, others are slower to recover. And while the May data brings some good news, it will take some time to recover from unprecedented levels of unemployment.

World Trade Center San Diego announces MetroConnect V cohort

World Trade Center San Diego’s Flagship Export Program

San Diego – San Diego Mayor Kevin L. Faulconer and World Trade Center (WTC) San Diego unveiled the 15 companies selected to participate in MetroConnect V, the fifth iteration of WTC San Diego’s international sales accelerator program, underwritten by Procopio and JPMorgan Chase & Co. The program is designed to help local companies jump start and scale their global growth.

“One of San Diego’s biggest exports is the innovation and ingenuity of our local companies and this business accelerator helps fuel the entrepreneurs of tomorrow,” Mayor Faulconer said. “Programs like MetroConnect strengthen our local economy by creating opportunities for our small businesses to build greater networks, employ more San Diegans and further invest in our region.”

Now in its fifth program-year, WTC San Diego has adapted MetroConnect V to address the unique circumstances brought on by COVID-19. Routine video conferencing, an enhanced export education program, and virtual workshops with program partners are among the changes implemented prior to the virtual launch.  MetroConnect continues to equip small and medium-sized companies (SMEs) with a suite of financial and programmatic resources in their efforts to bring their products and services to global markets.

More About the Program

The MetroConnect program is highly competitive, with just 15 companies selected based on a variety of criteria, including product potential, interest in new markets, assessed impact of program funds and resources, current international traction, and more. Applicant companies are assessed by a panel of judges, which include representatives from Qualcomm Ventures, Connect w/ San Diego Venture Group, Biocom, the U.S. Commercial Service, CMTC, Viasat, Mitsubishi Electric, Procopio, San Diego State University, Tech San Diego, UC San Diego, San Diego Regional EDC, WTC San Diego, and the previous year’s program winner.

The MetroConnect program resources include:

  • $5,000 in matching grants to cover the costs associated with international expansion, made possible by co-underwriters JPMorgan Chase and Procopio, and with additional funds and in–kind services from more than a dozen sponsor companies
  • One year of complimentary access to SYSTRAN’s premium enterprise machine translation platform
  • Workshops (7) addressing export compliance, localized marketing strategies, and more, taught by private sector experts from the San Diego business community
  • Dedicated WTC San Diego staff manager to support company participants in deploying overseas strategies during the grant period
  • Reduced airfare on international flights out of San Diego International Airport with American Airlines, British Airways, and Japan Airlines
  • Free consultations with legal, tax, and consulting partners
  • Access to a mentor network consisting of trade experts at large and mid-sized San Diego firms and country representatives at the Japan External Trade Organization and the United Kingdom Government Office in San Diego
  • Consideration to compete for an additional $25,000 during the MetroConnect Grand Prize Pitchfest

“San Diego’s continued economic growth is vital to the region’s long-term health and prosperity,” said Aaron Ryan, Executive Director and San Diego Region Manager of JPMorgan Chase’s Middle Market Banking & Specialized Industries practice. “MetroConnect will enable some of San Diego’s brightest companies to grow internationally, and help them successfully navigate the complexities of doing business abroad. JPMorgan Chase is proud to support this impact on the San Diego economy.”

Since the program’s debut in 2015, 65 MetroConnect alumni have collectively generated $85 million in new export sales, signed 500 new contracts, added 269 new jobs to the region, set up 18 new overseas facilities and seen five successful company exits. Past participants include Coronado Brewing, Cypher Genomics (acquired by Human Longevity Inc.), Dr. Bronner’s, Planck Aerosystems, Scientist.com and many more. From community-owned health and genomic data platform LunaPBC, to unmanned aerial systems component manufacturer Mayan Robotics, to California’s very first employee-owned brewery Modern Times, the 2020 MetroConnect companies represent a diverse cross section of San Diego’s innovation economy.

“The MetroConnect program’s support of innovative, high-growth SMEs aligns with the priorities of our firm,” said Jim Perkins, COO and Chief Compliance Officer of program co-underwriter Procopio. “We are thrilled to support WTC San Diego in this endeavor and are looking forward to lending our knowledge and expertise to the new cohort of MetroConnect companies.”

Why MetroConnect Matters Now More Than Ever

Expanding a customer base into multiple markets creates resiliency. That has been especially true during the COVID-19 pandemic as global markets have been affected, then subsequently recovered at varying rates. Additionally, as a port city, trade has always played a big role in San Diego’s economy and the success of the businesses that call this city home. In 2018 alone, San Diego exported more than $20 billion in goods overseas, as well as billions more in services like software, cybersecurity, engineering and research. SMEs produce 92 percent of those goods – driving home the point of programs like MetroConnect. Plus, according to the Brookings Institution, companies that are global pay higher wages, are less likely to go out of business, and increase productivity of the domestic market.

One member of the current cohort has already experienced the benefits of taking part in a program like MetroConnect. White Labs’ yeast serves as a key ingredient in beer, which has made it a pillar of San Diego’s craft brewing industry for the last 25 years. International expansion has always been an important part of White Labs’ business, and it applied to be part of the MetroConnect V cohort to expand and improve its international procedures, policies, and marketing to continue to expand globally.

MetroConnect put White Labs in contact with JAS Forwarding. JAS was able to assist White Labs by reviewing its import/export procedures. This consultancy resulted in White Labs adapting their documentation systems to decrease customs clearance holds in Australia.

JoAnne Carilli-Stevenson, Head of Business Development for White Labs, told the MetroConnect team that this change has “resulted in improved service to customers, and decreased re-shipments required due to custom delays. At a time when we are working hard to balance supply and demand during crisis, this change in international procedure is significant for us.”

“Amidst a global health and economic crisis, new agreements and ongoing negotiations with key trading partners, and the rapid evolution of global supply chains, it is more important than ever to give local SMEs an edge in the global marketplace by equipping them with the tools to be successful,” said Nikia Clarke, executive director of World Trade Center San Diego. “Financial assistance, export education, preferred access to ancillary export services, and connectivity to an international network of partners and mentors – all of these were requests emanating from the small and medium-sized companies this program serves. With 98 percent of San Diego’s economy comprised of such businesses, it is critical that we are responsive to their needs.”

See the full list of MetroConnect V companies here.

About World Trade Center San Diego
World Trade Center San Diego operates as an affiliate of San Diego Regional Economic Development Corporation. WTC San Diego works to further San Diego’s global competitiveness by building an export pipeline, attracting and retaining foreign investment and increasing San Diego’s global profile abroad. sandiegobusiness.org/wtcsd

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Good News of the Week – June 12, 2020

Every Friday, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week.

For the week of June 12, 2020, here’s what we’re reading:

…and here are the events we’re (virtually) attending:

EDC welcomes Julian Parra as new board chair

San Diego is working to recover from a global pandemic and faces systemic race and equity issues that plague all metropolitan economies. To continue driving inclusive growth efforts forward, Julian Parra resumed the role of EDC board chair, after the successful and inspiring tenure of outgoing chair Janice Brown. Read more.

COVID-19 & San Diego:

Amidst everything happening in the world, we need a reminder that there’s plenty of ‘Good News’ to go around in SD. We have also compiled additional resources for businesses and individuals seeking additional guidance

For businesses:

For individuals:

Be in the know – Sign up below to receive future editions of GNOTW.

Want to submit your event or news update to our weekly newsletter? Contact us for more information.

Heather Dewis
Heather Dewis

Coordinator, Marketing

Good News of the Week – June 5, 2020

Every Friday, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week.

For the week of June 5, 2020, here’s what we’re reading:

…and here are the events we’re (virtually) attending:

Black lives matter: our commitment to San Diego

In light of the pain that the US has been facing, we must do better as a region and as a nation. The current and historical racial realities, compounded with the impacts of COVID-19 disproportionately affecting lower-income San Diegans, means we must do everything in our power to make sure we get this post-pandemic recovery right.

If you are a Black entrepreneur or business owner in San Diego and we can help connect you to resources, programs, or other assistance, please contact us here.

Read more

COVID-19 & San Diego:

Amidst everything happening in the world, we need a reminder that there’s plenty of ‘Good News’ to go around in SD. We have also compiled additional resources for businesses and individuals seeking additional guidance

For businesses:

For individuals:

Be in the know – Sign up below to receive future editions of GNOTW.

Want to submit your event or news update to our weekly newsletter? Contact us for more information.

Heather Dewis
Heather Dewis

Coordinator, Marketing

Good News of the Week – May 29, 2020

Every Friday, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week.

For the week of May 29, 2020, here’s what we’re reading:

…and here are the events we’re (virtually) attending:

Last call: Advancing San Diego

Engineering education and training programs: apply by June 1 for the designation of Preferred Provider by Advancing San Diego.

Preferred Provider institutions will gain access to:

  • Paid internships for students at small companies and referrals to opportunities at larger companies
  • Work-based learning opportunities for students including networking events, and career and internship fairs
  • Annual briefings on talent demand alongside local employers

Apply now

COVID-19 & San Diego:

Amidst everything happening in the world, we need a reminder that there’s plenty of ‘Good News’ to go around in SD. We have also compiled additional resources for businesses and individuals seeking additional guidance

For businesses:

For individuals:

Be in the know – Sign up below to receive future editions of GNOTW.

Want to submit your event or news update to our weekly newsletter? Contact us for more information.

Heather Dewis
Heather Dewis

Coordinator, Marketing

Good News of the Week – May 22, 2020

Every Friday, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week.

For the week of May 22, 2020, here’s what we’re reading:

…and here are the events we’re (virtually) attending:

Reopening San Diego’s small businesses

Small businesses account for 98 percent of San Diego companies – and we’re committed to giving them the tools to succeed for when they’re ready to reopen. We’ve developed step-by-step reopening guides to provide retail establishments, restaurants and bars, and other small businesses with information on current regulations, safety protocol, and recommended business adaptations. Download your free guide.

COVID-19 & San Diego:

Amidst everything happening in the world, we need a reminder that there’s plenty of ‘Good News’ to go around in SD. We have also compiled additional resources for businesses and individuals seeking additional guidance

For businesses:

For individuals:

Be in the know – Sign up below to receive future editions of GNOTW.

Want to submit your event or news update to our weekly newsletter? Contact us for more information.

Heather Dewis
Heather Dewis

Coordinator, Marketing