San Diego Regional EDC: Message from Mark Cafferty – April 5

Originally published on April 5 in the San Diego Business Journal, this is the latest of EDC President and CEO Mark Cafferty’s weekly columns:

Once again, I hope this message finds all of you healthy and safe. With each passing day, our team at San Diego Regional EDC is adjusting and repurposing our work to address the new normals (short-term and long-term) that our businesses are trying to deal with. While we are all facing significant challenges, it has been both amazing and inspiring to see how local companies have mobilized, adapted and pivoted to play critical roles in dealing with the COVID-19 pandemic and response.

As some of you know, I have been asked to write a weekly column to provide resources and information to the business community as things continue to move and change around us. As an important supporter and investor in our work, I wanted to make sure you had a preview of this information. You will begin to get updates from me every Thursday and see a similar version of these updates in the San Diego Business Journal the following Monday.

Stepping Up and Doubling-Down

In the City of San Diego, Mayor Faulconer has urged companies to pivot and expand their operations to support the COVID-19 response efforts. Other city leaders, from Chula Vista to San Marcos, have followed suit.

From their unique local, national and global perspectives, here are just a few of the ways in which San Diego companies are stepping up and pivoting operations to respond:

• ResMed – ResMed is best known for creating medical technology to address sleep apnea and other breathing/respiratory illnesses. The company also produces and manufactures respirators and ventilators for hospital and home use. ResMed is now looking to pivot some of its production capacity away from sleep apnea devices to the much-needed ventilators, which will triple the number of ventilators that the company produces.

• Cutwater Spirits – Cutwater Spirits, which was originally started by the team at Ballast Point, has already begun retooling operations to make badly-needed hand sanitizer. Other local distilleries, including Misadventure Vodka and Seven Caves, are also retooling to help provide this essential resource for medical facilities and homes.

• Orucase – Orucase, a San Diego manufacturer of cycling travel bags and accessories, has started adapting its production lines to manufacture face masks. The company has the capacity to make 500,000 a week and plans to begin shipping immediately. Additionally, Orucase is in the process of securing materials to make medical-grade masks for healthcare workers.

• Cubic – Cubic is leveraging technology through its Cubic Mission Solutions division to create a prototype ventilator. The San Diego-based company is partnering with the University of Alabama’s Nursing program to test and refine this ventilator.

• Flexsystems – El Cajon-based manufacturer Flexsystems has also changed its operations to focus on manufacturing fabric masks and splash guards.

As I mentioned in last week’s column, we are continuing to see many local life sciences companies explore and uncover potential solutions, vaccines and cures. In addition to Thermo Fisher Scientific and others, this past week has brought announcements of other local companies that are stepping up in a big way–many of them are startups and small businesses themselves. San Diego-based startup Cue Health has won a $13 million federal contract to speed up the development of testing. LunaDNA, a local startup that allows individuals to share and control their health and genomic data, is already thinking long term. The company is collecting real-world information by asking individuals to anonymously report how they are either living with or living in the times of COVID-19. This information will help scientists and researchers better understand long-term health impacts, and potentially, even lead to a cure.

A San Diego Marketplace

While many companies are stepping up to help, there are several healthcare organizations on the front lines of this effort that still desperately need resources and supplies. To that end, EDC is supporting the efforts of our partners at Biocom (San Diego and California’s largest biotech and life sciences industry association) to create an online marketplace for critical items. If your company is producing something in the COVID-19 supply chain and is looking for a buyer, or if you are looking to pivot operations and needs crucial materials to do so, this new online marketplace can be accessed at www.biocom.org/coronavirus/partnering-opportunities/

How Business Are Really Doing

Along with our partners at San Diego Regional Chamber of Commerce & San Diego and Imperial Small Business Development Center, we have deployed a survey to assess immediate economic impacts and understand the evolving business sentiment. We plan to keep this open for the foreseeable future and chart how responses change over time.

The first two weeks of data we analyzed is from 642 employers, representing 87,824 jobs. More than 86 percent of businesses that have responded expect to see revenue losses, and not surprisingly, our small businesses are expecting higher losses than the larger business respondents.

We have seen that many businesses have already had to lay off workers and most survey respondents sighted access to financing/capital as one of their most pressing business concerns.

In the weeks ahead, EDC and our partners will continue to share a weekly analysis of what we are learning and seeing through the business survey and designing new strategies and programs to address the changing and evolving business needs.

For up-to-date analysis and interactive dashboard of the data, please visit www.sandiegobusiness.org/research/covid-19-survey-results/

If you have not yet taken the survey, you can find it here: www.sandiegobusiness.org/blog/we-need-your-help-understanding-the-impact-of-covid-19-in-san-diego/

We will also continuously update our resource guide online (www.sandiegobusiness.org/coronavirus/) to provide the most timely information on where businesses can access reliable resources and support at this time.

The weeks and months ahead are going to continue to be challenging, uncharted, and in many cases, heartbreaking. Be patient with and supportive of your business partners, colleagues, contractors and associates. We are all in this together and we are all trying to figure things out together. Our team will continue to share with you everything that we believe can be valuable and helpful during these times and we will work hard to pass along everything new that we are analyzing and learning along the way.

Communication, connectedness, collaboration and generosity are hallmarks of our business community. They aren’t just pleasant words and aspirations. They are the core values that make us resilient and strong. None of that changes during times of social distancing and crisis.

Stay healthy, stay safe, (stay home), and stay strong.

Good News of the Week – April 3, 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 April 3, 2020, here’s a look at what we’re reading:

…and here are the events we’re attending:

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:

Assessing the impact of COVID-19 – Week of March 31, 2020
We’re releasing the first of our assessments about the evolving economic impact of COVID-19 on San Diego. This week’s key takeaways: impacts are immediate, concentrated by industry, and disproportionately affect small businesses. Read more.

Thank you to the San Diego Regional Chamber of Commerce, San Diego & Imperial SBDC Network, Downtown San Diego Partnership, and National City Chamber of Commerce for their partnership.

 

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: Immediate impacts are concentrated, severe, and hit small business & low wage workers hardest

More than 86% of businesses in San Diego expect to see revenue losses in the wake of COVID-19, according to an economic impact survey on the San Diego economy.

In order to assess immediate economic impacts and understand the evolving business sentiment, we have deployed a 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. The survey will remain open for the foreseeable future so we can chart how responses change over time.

Key Takeaways

Three trends stood out based on what employers told us during the first two weeks of surveying:

  1. Impacts are concentrated by industry. Of the 360 employers planning to reduce staff, 80% are in the food and beverage or tourism industries.
  1. Impacts are immediate. Nearly 94% of employers anticipating staffing reductions and two-thirds of those expecting revenue declines expect those hits within 30 days.
  1. Impacts disproportionately affect small businesses. Employers with annual revenues below $1M anticipate average losses in income of nearly 70%, compared with an average loss of 51% for businesses earning more than $1M annually.

A majority of employers (61%) are in need of capital support. More than half of those with capital needs are the smallest of employers with fewer than 5 employees.

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

Small businesses are the backbone of our local economy and the majority of the Chamber’s membership. They account for 98 percent of businesses in the region. Our focus now more than ever is on those small businesses. We are working with local and federal officials to ensure our region’s businesses have what they need to weather this storm. We are focused on resiliency and recovery.

Jerry Sanders, president & CEO, San Diego Regional Chamber of Commerce

Respondent Profile

For up-to-date respondent information on the survey respondents and high level results, please view the responding profile here.
Other key numbers:

  • Number of responses: 642
  • Number of responses in this analysis: 642

While the impacts of COVID-19 are rippling through the entire region, the survey shows that small businesses – which are responsible for a majority of our economic growth – are disproportionately impacted. It’s a long road to recovery, and I want to remind you that EDC’s staff is here to help you access loans and grants, and work one-on-one to triage issues as they arise.

Mark Cafferty, president & CEO, San Diego Regional EDC

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.

All of us at the San Diego & Imperial SBDC Network know this public health crisis is hitting you, the small business owner, very hard. Know we are here to help. We are still providing all our services, just online. You can still visit SDIVSBDC.org and click “request counseling” to get assistance. We are here to help you apply for capital and work through the ways you now have to pivot to get through this time where we all have to be physically distant from one another.

Danny Fitzgerald, San Diego and Imperial Small Business Development Center

 

*industries include retail trade (excluding groceries and gas stations), wholesale trade, arts & entertainment, accommodation & food services.

San Diego Business Journal: Message from EDC President and CEO Mark Cafferty

Originally published on March 29 in the San Diego Business Journal, this is the first of EDC President and CEO Mark Cafferty’s weekly columns:

As I write this, I can only hope for everyone reading that your families and loved ones are both healthy and safe. The impact of COVID-19 in all corners of our community has been devastating and has changed our lives in numerous ways.

Things have certainly changed for our team at San Diego Regional EDC over the last few weeks, so I write today to share our unique perspectives.

As an economic development organization, EDC plays a unique role in serving the business community. We recognize that so much of this is uncharted territory for all of us. But as always, it is important to step back and look at what we know and focus on where we are needed most.

Our regional collaboration is an asset recognized around the world and I am certain it is going to be a key reason why San Diego emerges from this global health crisis stronger than ever. There is no doubt we will be facing challenging weeks and months ahead. Accurate and timely communication will be critical to our business community.

In that vein, our team has spent the last two weeks making outreach calls to our nearly 200 investors–the companies that underwrite our work. These companies range from regional giants such as Qualcomm, Sempra and Illumina, to shipbuilders like NASSCO, to hospitals/healthcare providers like Scripps, Sharp and Kaiser Permanente who are on the front lines of this crisis, to small and family owned business like Brown Law Group, Ace Parking and Jerome’s Furniture. Some of them are busier than ever and some are struggling in unprecedented ways. Yet one resounding thing we have heard from all of them is that they want to know how they can help fellow San Diegans. Some of them have made donations to the San Diego Foundation’s COVID-19 Community Response Fund and others have offered their manufacturing floors to produce critical resources.

Resources for the Business Community

While our team is still trying to get our hands around everything that is happening right now, and we certainly don’t have all the answers, EDC has quickly pivoted to provide companies with a comprehensive list of resources that we feel can best meet their needs right now. And while these continue to change and expand by the day, I wanted to take a moment to point a few out:

City of San Diego – Economic Relief Package

Businesses in the City of San Diego may be eligible for the Economic Relief Package, which provides approximately $4 million in reduced fees. It includes a Small Business Relief Fund, where businesses can apply for grants and/or low-interest loans, as well as an extension of business permits and business tax-deferral options. I know some other cities in the region are working on their own relief packages as well.

Small Business Administration–Economic Injury Disaster Loan

The San Diego and Imperial Small Business Development Center can provide no-cost guidance through a company’s recovery process. Businesses can apply for an Economic Injury Disaster Loan, which may provide up to $2 million of financial assistance. SBA also has immediate $25,000 bridge loans available (less paperwork) for small businesses with an existing relationship with the SBA. To apply for these programs, visit SDIBDC’s website and click “request counseling.”

South County EDC – South County Restaurant Loan

South County Economic Development Council is offering $5,000 no-interest loans to eating establishments in South County. Apply here.

San Diego Workforce Partnership – Layoff Transition Services

For businesses in the tough spot of dealing with layoffs or furloughs, San Diego Workforce Partnership has unemployment insurance information, tax assistance, a work-sharing program to avoid layoffs, financial planning, remote career services and more. If you are pivoting operations to address COVID-19 solutions, San Diego Workforce Partnership may also be able to provide funds to train workers. Fill out this form to get started.

Advancing San Diego

Thanks to a $3 million grant from JP Morgan Chase & Co, EDC and regional partners have launched Advancing San Diego–a program that drives economic inclusion by addressing talent shortages. Advancing San Diego is offering fully paid software engineering internships for companies with fewer than 100 employees. Over the past week, we have pivoted this program to provide remote internships. Companies can apply to host a fully funded intern here.

According to the Brookings Institution, 73 percent of San Diego’s economic growth is going to come from small businesses. However, we know that businesses of all sizes are struggling to adapt, and are searching for programs that provide support at all levels.

We have refocused our efforts on finding resources to assist businesses through this significant economic change and are working even more closely with our partners at San Diego Workforce Partnership and the United Way of San Diego County who will continue to provide resources and support to impacted workers.

Understanding the Regional Impact

At EDC, we frequently say “everything we do begins and ends with research.” We know we cannot grow and help our economy if we do not have the means to measure and track our efforts. And right now, accurate data and information is more important than ever.

To that end, San Diego and Imperial Small Business Development Center, San Diego Regional Chamber of Commerce and San Diego Regional EDC are working together to assess the impacts of COVID-19 on San Diego’s economy.

We are asking businesses to fill out a short survey so we can better understand how we can help in the days, weeks and months ahead.

The survey has been open nearly a week, and the responses have been eye-opening. Yes, companies are struggling and there have been layoffs, but amidst all the struggle, there have been some bright spots. I will share some of this data and anecdotes with you in the coming weeks.

Good News Ahead

With a research institution named after the inventor of the Polio vaccine and numerous contributions in fighting global health crises such as Ebola and HIV, San Diego has developed a reputation for bringing life-changing treatments to the world.

Right now researchers in San Diego are working 24/7 to find a vaccine and/or cure. We have local companies like Arcturus Therapeutics and Inovio Pharmaceuticals that are focusing on developing life saving vaccines, and others like Mesa Biotech, Epitope Diagnostics and Thermo Fisher Scientific that are developing and distributing test kits to healthcare workers around the globe. These workers have been showing up every day, ready to serve our residents and forge ahead, and I know I stand with the entire business community in expressing my unwavering gratitude to them all.

Back in 2011, as San Diego was climbing out of the recession, our board members were going around the table discussing all the positive things happening in our region. Our current chair – Janice Brown – suggested at that time that we compile all of the highlights into a newsletter, and from there, our publication known as “Good News of the Week” was born. With the rare exception of holidays, we have not missed a week since. Although it will take on a different and appropriate tone with regards to all that is happening now, you can expect to see Good News from EDC in the weeks ahead.

Our local outlets, including the Business Journal, are important work to keep us informed.  We need to be reminded of the numerous wins in our community now more than ever. We need to support them.

Moving Forward

When I started at EDC a little more than 8 years ago, our board challenged our team to reframe how San Diego thinks about economic development…and we have. We have built a team that believes in our mission and lives our core values of collaboration, integrity, accountability and inclusion. In the weeks ahead, as we all strive for some level of economic stability, we will be thinking again of how to reframe our value proposition and how we can best serve San Diego businesses now and in the future.

I know we are all going to get through this. Things will certainly get worse before they get better, but things will get better.

In the meantime, let’s all continue to do our best to stay in touch with each other and take care of each other. I remind myself daily that it is who we are during these moments that will shape who our children are in the future and who we will forever be in the eyes of those who count on us.

Stay safe, stay inside and stay strong.

Good News of the Week – March 27, 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 March 27, 2020, here’s a look at what we’re reading:

…and here are the events we’re attending:

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 – March 20, 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 March 20, 2020, here’s a look at what we’re reading:

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

We need your help: understanding the impact of COVID-19 in San Diego

We need your help: understanding the impact of coronavirus in SD

San Diego and Imperial Small Business Development Center (SDIVSBDC), San Diego Regional Chamber of Commerce, and San Diego Regional EDC are working together to assess the impacts of COVID-19 on San Diego’s economy.

We’re asking businesses to fill out the following survey so we can better understand the potential impacts and learn how we can best serve you.

The survey should take no more than 7 minutes. Your responses will remain anonymous and only be reported on an aggregate level.

Take the survey

powered by Typeform

If you’d prefer to take the survey on a seperate site, please follow the button below.

Take the survey

 

SDIVSBDC, the Chamber, and EDC have developed COVID-19 resource and response pages with additional information for both businesses and employees.

If any of our organizations can help you directly during this time, please don’t hesitate to reach out.

We’re in this together, San Diego.

COVID-19 Resources for San Diego Businesses

Good News of the Week – March 13, 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 March 13, 2020, here’s a look at what we’re reading:

 

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: February 2020

Each month the California Employment Development Department (EDD) releases employment data for the prior month. Each year, the Labor Market Information Division (LMID), in cooperation with the federal Bureau of Labor Statistics (BLS), revises historical industry employment, labor force, and hours and earnings estimates. The revision process, also called “benchmarking,” produces updates to the data sets used to generate the monthly estimates.

This edition of San Diego’s Economic Pulse covers 2019 benchmarking updates and data from January 2020. Check out EDC’s research bureau for more data and stats about San Diego’s economy.

Highlights include:

  • The region’s unemployment rate was 3.3 percent in January 2020, up from a revised 2.8 percent in December 2019, and below the year-ago estimate of 3.8 percent
  • The region’s unemployment rate remains lower than both the state and national unemployment rates of 4.3 percent and 4.0 percent, respectively
  • Between December 2019 and January 2020, total nonfarm employment decreased from 1,525,200 to 1,501,700, losing 23,500 jobs
  • Between January 2019 and January 2020, total nonfarm employment increased from 1,482,000 to 1,501,700, adding 19,700 jobs
  • Professional and business services led the year-over-year gain, adding 8,600 jobs
  • Benchmark revisions show that the region experienced slower employment growth in 2019, ending the year with 15,500 fewer jobs than originally estimated

Meet our Advancing San Diego Preferred Providers

Meet the Preferred Providers.

Fueled by tech, defense, and life science industries, San Diego’s innovation economy relies on a pipeline of diverse talent. However, local companies continue to cite access to quality talent as a persistent challenge–98% of firms in San Diego are small companies (fewer than 100 employees) that often lack time and resources to effectively compete for talent with their larger counterparts. Meanwhile, many San Diegans are disconnected from high-demand job opportunities like software engineering, largely due to education requirements.

Made possible by JPMorgan Chase, Advancing San Diego is a demand-driven strategy to address talent shortages and remove barriers for small companies to access qualified workers. It is a collaborative effort between San Diego Regional EDC, San Diego and Imperial Counties Community College Association, San Diego Workforce Partnership, City of San Diego, and United Way of San Diego.

Over the last six months, Advancing San Diego partners worked with a group of 17 employers to develop a skills-based criteria for the region’s highest growth position over the past five years–software engineers. We asked that any education provider meeting that criteria apply for the Preferred Provider designation. An employer review panel then evaluated these applicants against the skills criteria to determine which programs should be designated as ‘Preferred Providers’, recognized as effectively preparing individuals for jobs and internships in software engineering.

EDC is excited to announce the first round of Preferred Providers of software talent.

Preferred Providers (Full Designation) – defined as fully preparing individuals for software engineering jobs.

Preferred Providers (Partial Designation) – defined as providing the foundational skillsets necessary for students to pursue a software engineering internship.

How small companies can get involved:

Over the next three years, Advancing San Diego will cover the cost of internships for Preferred Provider students within up to 100 small companies. Students will also participate in industry engagement opportunities such as career fairs and networking events, and become eligible for up to $500 each in flexible funds to support their success in the workplace. The Preferred Provider (full) and (partial) designations come with the same set of benefits. The first cohort will be placed in Summer 2020.

If you are a small company (<100 employees) that is interested in receiving interns from STEM fields and meets the eligibility criteria, apply now!

In the meantime, please register to attend our workshop geared toward building and improving your company’s internship program. While it is not a requirement for companies to attend the workshop and be eligible to host interns, it is highly encouraged.

How education programs can get involved:

Advancing San Diego will continue to designate Preferred Providers in a variety of high-demand fields. Preferred Provider criteria and applications are updated and reviewed on an annual basis. The Preferred Provider application schedule is as follows:

For more information, visit AdvancingSD.org.