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.
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For the week of April 15, 2022, here’s what we’re reading:
ICYMI: A progress report on San Diego’s 2030 Inclusive Growth goals
While San Diego’s innovation economy has made the region more prosperous, it perpetuates economic disparities in ways that threaten San Diego’s competitiveness and resilience. With new data and bold goals toward increasing the number of skilled talent, quality jobs, and thriving households, leaders in the private and public sectors, education, and philanthropy offered their shared commitments to economic inclusion.
This is the title of a book I recently started reading about applying stoic philosophy to everyday, modern life. The core teaching is to turn adversity into advantage. Obstacles, both predictable and unforeseen, are not an impediment to growth or progress but rather the path to achieving our goals—it’s a matter of perspective.
EDC and a steering committee of the region’s largest employers determined that for our region to continue to grow and remain competitive, by 2030, San Diego will need:
50,000 quality jobs in small businesses,
20,000 skilled workers per year, and
75,000 newly thriving households.
However, to do so, inclusion needs to be our focus. To achieve these goals, we must invest in and support the segments of our community that have been historically and systemically excluded from growth and prosperity—not simply because it’s the right thing to do, but because it’s an economic imperative.
Small businesses employ 60 percent of San Diego’s workforce but struggle to compete for new customers and talent. On top of that, supply chain disruptions have impacted nearly every industry in our region. Connecting local small businesses to big, institutional buyers builds resiliency for both sides.
To keep pace with the demand for talent, we must double the production of skilled workers in our region. If San Diego’s Black and Hispanic youth were prepared for post-secondary education at the same rate as White youth, our talent shortage would become a talent surplus.
San Diego is now the most expensive major metro in the country. The rapidly rising cost of living is impacting employers’ ability to attract and retain talent. Investing in the infrastructure needed to support working families ensures that the region remains an attractive place for people to work and businesses to operate in.
That is the scale of our challenge. It is also the size of our opportunity.
Even the pandemic itself, a once-in-a-century global health crisis that has claimed the lives of nearly one million Americans, has paved a new way forward. It taught us that how and where we work can be different and better. It reaffirmed that small businesses are not just places of employment but also part of the fabric of our community. It reminded us that no matter how much technology we have at our fingertips, it is the human spirit that drives the life-changing and life-saving innovation in our region and world.
During last week’s Report to the Community, I shared that four years later progress toward these goals remains elusive. Yet, the more than 200 people in attendance reminded us that our collective commitment toward these goals will drive the region toward success.
San Diego’s future growth and competitiveness could be undermined by the inequities we currently face; or, the next wave of innovation and prosperity could be fueled by greater inclusion. It’s a matter of perspective. The obstacle is the way.
County, City, academic, and private sector leaders announce commitment to inclusive economic growth
Today at its Report to the Community event, San Diego Regional EDC shared progress against the 2030 inclusive growth goals outlined pre-pandemic in 2018. With new data and bold objectives set around increasing the number of skilled talent, quality jobs, and thriving households critical to the region’s competitiveness, County and City of San Diego officials as well as leaders in the private sector, education, and philanthropy offered their shared commitments to economic inclusion.
“EDC’s recent analysis underscores the significant impact of the pandemic on San Diego’s under-resourced communities and small businesses,” said Julian Parra, Business Banking Region Executive at Bank of America and EDC Board Chair. “To drive meaningful economic change, a diverse set of stakeholders must step up or the issues facing our economy—talent shortages, skills gaps, and a soaring cost of living—will further challenge San Diego’s economic competitiveness.”
The innovation economy has made San Diego more prosperous than many of its peers—leading the region out of the COVID-spurred economic recession as it has in past downturns—but remains inaccessible to the fastest-growing segment of the region’s population. At no surprise, the goalposts EDC outlined four years ago are now farther from reach in the wake of the pandemic.
With nearly 200 members, EDC represents just a small fraction of the region’s employers. It is only with and through a broader group of stakeholders that more quality jobs, skilled talent, and thriving households in San Diego is possible. As such, EDC has enlisted the endorsement of key regional partners and employers that have committed to using the Inclusive Growth framework to inform their priorities, tactics, and resource allocation.
Hear some of those commitments:
“The County shares a deep commitment to the framework outlined by EDC. In order to help regionalize these Inclusive Growth goals, the County has created the Office of Economic Prosperity and Community Development that will prioritize significant investments in our communities as well as uplift our local businesses,” saidVice Chair Nora Vargas, San Diego County Board of Supervisors. “Our inclusive work is centered on achieving an equitable economic recovery that ensures prosperity for all San Diegans.”
“Employing more than 1,200 San Diegans, we understand the criticality of large employers fostering a robust talent pipeline who can afford to live and thrive here,” said Jennie Brooks, Senior Vice President at Booz Allen Hamilton and EDC Vice Chair. “We are committed to advancing these goals by mentoring the next generation of women leaders through partnerships with local organizations like Girl Scouts San Diego; creating opportunities through our Mil/Tech Workforce Initiative to help military veterans build on their experiences and upskill into quality tech careers; and providing the flexibility that employees need in today’s dynamic work-life environment.”
The pandemic’s impact to progress: Jobs, talent, households
In its new analysis, available at progress.inclusivesd.org, EDC quantifies the COVID-19 pandemic’s devastating impact on the regional economy and reports progress toward the 2030 goals. Takeaways include:
QUALITY JOBS: While the region saw an overall increase in the number of quality jobs* since 2017, the disparity between quality jobs in small and large firms grew. The jobs losses of 2020 were principally concentrated in lower paying jobs at small businesses, especially those held by people of color. Meanwhile, larger firms added quality jobs in haste. In order to compete on talent, small businesses need new, reliable customers. San Diego’s large buyers can support quality job growth and ensure supply chain resilience by spending more with small, local businesses.
SKILLED TALENT: Since 2016, all job growth has been in positions that require some form of degree or credential acquired through post-secondary education (PSE). Looking forward, it is projected that 84 percent of new jobs created between now and 2030 will also require PSE. Hispanics represent one-third of San Diego’s total population but only 15 percent of degree holders. Further, nearly half of middle school students are Hispanic but are statistically the least prepared for the jobs of the future. To address employers’ hiring challenges long-term, the region must invest in college readiness for more San Diego students.
THRIVING HOUSEHOLDS: Rapidly rising home prices—up more than 30 percent in the last two years alone—coupled with jobs losses have resulted in almost 11,000 fewer thriving households** in 2020 than in 2017. Further, the region lost 3,200 licensed childcare facilities due to business closures amid the pandemic. Rising costs and access to childcare, transportation, and broadband—disproportionately felt by people of color—will leave businesses unable to retain or recruit talent from outside of the region.
While the innovation cluster has more than rebounded from the pandemic, the talent challenges employers face will only worsen and threaten their growth across San Diego. A concerted commitment to Inclusive Growth must be made; the region’s competitiveness depends on it.
The initiative is sponsored by Bank of America, HomeFed Corporation, San Diego Gas & Electric, Southwest Airlines, The San Diego Foundation, University of San Diego School of Business, City of San Diego, and County of San Diego.
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.
Get Good News of the Week in your inbox every Friday.→ Sign up
For the week of April 8, 2022, here’s what we’re reading:
San Diego Biz Hub: Free digital services for small businesses
GoSite and EDC are still accepting applications for the San Diego Business Hub, which offers small, service-based businesses the full suite of GoSite products at no cost. Services include payment and invoicing, bookings, review management, customer communications, and template websites.
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.
Get Good News of the Week in your inbox every Friday.→ Sign up
For the week of April 1, 2022, here’s what we’re reading:
We sat down with Neil Bence, EDC investor Bristol Myers Squibb’s vice president of oncology discovery and San Diego site head, to discuss its mission to discover, develop, and deliver innovative medicines that help patients prevail over serious diseases.
San Diego Biz Hub: Free digital services for small businesses
GoSite and EDC are still accepting applications for the San Diego Business Hub, which offers small, service-based businesses the full suite of GoSite products at no cost. Services include payment and invoicing, bookings, review management, customer communications, and template websites.
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.
Get Good News of the Week in your inbox every Friday.→ Sign up
For the week of March 25, 2022, here’s what we’re reading:
On April 8, EDC will unveil data on the region’s collective progress towards the 2030 Inclusive Growth goals and hear commitments from government, academia, and community leaders to increasing the number of quality jobs, skilled talent, and thriving households. Join us for breakfast and networking at the Jackie Robinson YMCA.
San Diego Biz Hub: Free digital services for small businesses
GoSite and EDC are still accepting applications for the San Diego Business Hub, which offers small, service-based businesses the full suite of GoSite products at no cost. Services include payment and invoicing, bookings, review management, customer communications, and template websites.
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.
Get Good News of the Week in your inbox every Friday.→ Sign up
For the week of March 18, 2022, here’s what we’re reading:
Before COVID-19, San Diego defense and energy security company SIDUS Solutions derived 15 percent of its revenue from exports. But when trade shows were canceled amid the pandemic, SIDUS needed to find other ways to strengthen its brand overseas. World Trade Center San Diego’s MetroConnect program helped the company connect with international customers and retain revenue.
San Diego Biz Hub: Free digital services for small businesses
GoSite and EDC are still accepting applications for the San Diego Business Hub, which offers small, service-based businesses the full suite of GoSite products at no cost. Services include payment and invoicing, bookings, review management, customer communications, and template websites.
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.
Get Good News of the Week in your inbox every Friday.→ Sign up
For the week of March 11, 2022, here’s what we’re reading:
On April 8, EDC will unveil data on the region’s collective progress towards the 2030 Inclusive Growth goals and hear commitments from government, academia, and community leaders to increasing the number of quality jobs, skilled talent, and thriving households. The event will include breakfast and networking at the Jackie Robinson YMCA.
San Diego Biz Hub: Free digital services for small businesses
GoSite and EDC are still accepting applications for the San Diego Business Hub, which offers small, service-based businesses the full suite of GoSite products at no cost. Services include payment and invoicing, bookings, review management, customer communications, and template websites.
EDC’s team, investors, and partners do our best work when we are together; this reflects our values of collaboration and inclusion and is core to our mission. But it’s been a minute…
While we safely begin to gather again, we recognize many things are different. Whether you have trepidation about returning to in-person gatherings or are eager to get from behind the Zoom screen, EDC will meet you where you’re at—offering opportunities for both interactions in the months and year ahead. Hearing from and being with our investors and partners in either setting is essential.
Last week, we hosted a two-day retreat with 40 leaders from industry, academia, nonprofits, and government to share complex data unpacking the pandemic’s impact on the 2030 Inclusive Growth goals. The common thread: inclusion is an economic imperative and thus, requires shifts in our regional priorities.
And this week for the first time in two years, EDC’s Chairman Julian Parra led an in-person board meeting with 60+ leaders across the region. Julian took the gavel in June 2020 and never imagined his term would largely be served virtually; however, he has continued to drive the inclusive economic development strategy with the same fervor as instilled by past EDC Chair Jim Zortman in 2017.
For the region to fully emerge from this global pandemic, it must reconcile an economic recovery that is full of contradictions. The region is simultaneously experiencing strong job growth and record venture capital inflows, along with a fierce battle of seemingly unavailable talent, small business closures, and the most expensive housing market in the U.S., with the brunt of these impacts incurred most by low-income earners and people of color. To get this recovery right, the San Diego region must double down on the goals for quality jobs, skilled talent, and thriving households.
That’s why we hope you will join us on April 8 at EDC’s Report to the Community, where we will unveil data on the region’s progress towards these goals and hear commitments from regional leaders.
Here are other opportunities for engagement with us in the months ahead:
This Friday, March 11, at our quarterly Economic Development Committee meeting, hear how San Diego companies are re-evaluating talent attraction techniques to see success in a new world of hiring challenges. Register now with password EcoDev2022.
On March 23, join the virtual Global Competitiveness Council meeting to hear an update from Congresswoman Sara Jacobs (CA-53) on the devastating conflict in Ukraine, followed by an update on the state of global aviation from the San Diego County Regional Airport Authority.
In May, EDC will host another investor reception—stay tuned for the date and location. If you missed any of our recent gatherings, we hope you are able join us.
On June 9, EDC celebrates the return of its Annual Dinner—this year at Petco Park. Together with 900+ friends and colleagues, join us for a special night honoring the region’s healthcare providers for their unwavering care and The San Diego Foundation for its essential community investments throughout the pandemic. If you would like to sponsor, please contact Jennifer Storm.
For two decades I have had the pleasure of being a part of the team at EDC. Never have I been more certain of our value proposition than right now. To our investors, my sincere gratitude for your support—especially these past two years. There is critical and challenging economic development work ahead, but with and through all of you, we can ensure our regional competitiveness and create better futures for more San Diegans. As our past EDC Chair Janice Brown reminded us, when Lin-Manuel Miranda wrote the score for Hamilton, the lyric wasn’t “on the Zoom,“ it was “in the room where it happens.” Somewhere on the journey ahead, I look forward to being in the room alongside you.
What San Diego companies need to know about the crisis in Ukraine
The situation in Ukraine has devolved rapidly over the past week and a half, in a conflict that has shaken the foundations of the post-Cold War world order. What happens in Ukraine has major implications for Russia’s relationship with Western nations and the global economy—and has already led to significant changes in the regulation of trade. It is important for San Diego companies—particularly in energy, defense, and dual use technologies—to be aware of these changes and prepare accordingly.
Our team spoke withBob Bowen, a San Diego trade attorney who, throughout his career, has worked at major defense, aerospace, and tech companies, and helped them navigate the complexities of global trade and compliance. He points out the following aspects of new U.S. export control laws in response to the evolving situation in Ukraine:
The U.S. Export Administration Regulations (EAR) now apply to a broader range of items destined for Russia or Belarus, including items manufactured outside of the U.S. with components subject to the EAR
The EAR now require U.S. Department of Commerce export licenses for items destined for Russia or Belarus that previously did not require such export licenses
This includes items subject to the EAR that are intended for Government of Russia end-users or users at state-owned enterprises in Russia
There is a policy to deny applications for such export licenses
Nearly all items subject to the EAR are prohibited from going to military end-users, or for military end-uses, in Russia or Belarus without U.S. Department of Commerce export licenses (which are subject to a policy of denial)
Items subject to the EAR are prohibited from going to the Donetsk and Luhansk regions of Ukraine without U.S. Department of Commerce export licenses (which are subject to a policy of denial)
The Entity List of individuals, companies, and organizations in Russia and Belarus who are now prohibited from participating in transactions subject to the EAR has recently grown and is likely to continue growing
San Diego-headquartered law firmProcopio lists additional guidance to help ensure U.S. companies comply with federal law:
This is going to help you understand whether an export license is required for the product
It is highly unlikely that you will be able to secure license exceptions for Russia, Belarus, and the Donetsk and Luhansk regions of Ukraine at this time
Restricted entities include individuals, so your company needs to ensure that hiring processes properly screen and keep up with the latest version of the Entity List on the Bureau of Industry and Security (BIS) website
Foreign Direct Product (FDP) Rules extend the reach of US export regulations to include foreign-produced items comprising US-origin content
San Diego companies should be screening customers and evaluating for prohibited end-uses. Companies may request a Letter of Assurance from a foreign customer if needed
As always, it is critical that companies properly classify export itemsANDscreen all parties to a transaction.
As the war in Ukraine unfolds, we are cognizant of and compassionate toward those personally affected and their loved ones. More than a million Ukrainians have already fled into neighboring countries, with hundreds of thousands more expected in the coming days. As the world grapples with this humanitarian crisis, there are organizations you can support to help make a difference:
Locally, the San Diego branch of the International Rescue Committeeprovides opportunities for refugees, asylees, victims of human trafficking, survivors of torture, and other immigrants to thrive in the United States via immigration assistance and family reunification, financial literacy, and free English classes.
Charity Navigator is a resource to help you identify and evaluate 501(c)(3) foundations around the world to ensure that your charitable contributions are responsibly deployed.
“EDC’s recent analysis underscores the significant impact of the pandemic on San Diego’s under-resourced communities and small businesses,” said Julian Parra, Business Banking Region Executive at Bank of America and EDC Board Chair. “To drive meaningful economic change, a diverse set of stakeholders must step up or the issues facing our economy—talent shortages, skills gaps, and a soaring cost of living—will further challenge San Diego’s economic competitiveness.”
