Tag: cleantech

From statewide leadership to regional execution: San Diego’s role in fusion’s next chapter

By Yavuz Basaran,

California is a global leader in fusion research and development. As detailed in EDC’s 2025 statewide fusion energy study, the state is home to 16 core fusion companies—representing more than a third of all U.S. fusion firms. This rapidly expanding industry is supported by world-class universities and national laboratories located in the state and anchored by San Diego’s fusion energy expertise, which together have attracted more than $2.2 billion in public and private investment. Collectively, these assets put California in pole position for realizing the potential of fusion energy.

Sustaining that leadership—and translating it into energy production—will depend not only on statewide leadership and investment, but on the ability of individual regions within California to position themselves as specialized hubs for commercialization. Fusion’s path forward will be inherently place-based, requiring access to talent, regional supply chains, and pilot-scale infrastructure necessary to move from demonstration to deployment. Within this landscape, San Diego stands out as one of California’s most critical regional hubs.

Fusion pedigree with global reach

In San Diego, the fusion energy industry already generates more than $442 million in annual economic output and supports more than 1,600 regional jobs—evidence of a mature foundation for continued growth as fusion technology progresses toward commercialization. Our region further distinguishes itself by the breadth of our fusion capabilities, with strong legacy of companies, talent, and R&D supporting both magnetic and inertial confinement, the two primary fusion approaches. Combined, these assets position San Diego as a cross-cutting fusion hub.

At the center of San Diego’s fusion ecosystem is General Atomics, whose decades-long presence has shaped both national and international fusion progress. The company plays a central role across the world’s fusion landscape, supplying the components, systems, and diagnostics critical to both fusion industry partners and national laboratories.

In San Diego, General Atomics operates DIII-D, North America’s largest tokamak reactor, on behalf of the U.S. Department of Energy. A critical magnetic fusion research facility, DIII-D serves as a global collaboration platform that produces scientific insights and technological advances to support fusion development.

General Atomics’ fusion capabilities extend further through its Poway-based magnet facility, where it developed and built the world’s largest, most powerful pulsed superconducting magnet for recent installation at ITER, a 35-nation collaborative effort toward power plant scale fusion energy located in France. The expertise demonstrated at this facility represents a potential resource for developing future fusion blankets—the systems that surround the fusion reaction and convert its energy into usable heat while protecting the reactor, which are critical components across most fusion power plant designs. As fusion technologies progress toward pilot-scale deployment, sites like General Atomics’ magnet facility will become increasingly valuable in addressing both scientific and engineering challenges to commercialization.

San Diego’s highly-skilled fusion talent pipeline

Talent is critical to fusion’s development and commercialization. A strong academic pipeline anchored by UC San Diego complements our region’s industrial assets, offering established strengths in engineering, plasma physics, and materials science that support both fusion technology research and a skilled emerging workforce.

UC San Diego’s Jacobs School of Engineering, a top 10 U.S. engineering school that graduates about 3,000 students each year, houses the university’s Fusion Engineering Institute which brings together interdisciplinary teams to address complex technical challenges. At the same time, UC San Diego’s collaborative efforts such as its Fusion Data Science and Digital Engineering Center—led jointly with General Atomics—apply advanced computation, artificial intelligence, and digital engineering to accelerate fusion testing and development timelines.

This kind of cross-institutional collaboration reflects San Diego’s interconnected ecosystem and is increasingly essential as fusion companies move toward commercialization.

Hurdles to scale: Competing in a rapidly evolving national landscape

As fusion technologies move closer to commercialization, regions across the U.S. are beginning to compete on more than research capabilities alone. Local and state governments are increasingly deploying economic and regulatory tools to attract fusion companies—and their growing economic impact—as they transition from research to deployment. These tools include property tax abatements, accelerated environmental review planning, coordination with local utilities, and, in California, the establishment of recent California Environmental Quality Act (CEQA) exemptions that protect permitting timelines from costly legal challenges and signal regulatory clarity to fusion companies.

In San Diego, we have the opportunity to learn from other regions’ wins. Albuquerque City Council’s recent approval of a major incentive package for California-based Pacific Fusion—along with similar efforts by other regions, including Virginia’s recent success in securing the move of MIT-rooted Commonwealth Fusion Systems—illustrates both the scale and impact of the tools available to local municipalities and underscores that the race for fusion is underway.

San Diego cannot rest on its laurels; we must proactively address the challenges that inhibit the building of test facilities and pilot plants. Our region has an opportunity to build for the future, to both maintain our leadership position and capture the emerging economic benefits of fusion commercialization.

Translating strength into impact

The good news: San Diego is entering the fusion energy race with clear advantages. We have a dynamic innovation economy, a strategic position in the fusion supply chain, world-renowned institutions, and a robust, highly-skilled talent pipeline. We can learn from other regions’ wins and losses, strengthening the local infrastructure, incentives, and partnerships critical to fusion companies’ success in San Diego.

But turning scientific leadership into lasting economic value will also require a statewide policy environment that makes it easier to build, scale, and integrate fusion energy projects. That is exactly the role programs like California Jobs First are designed to play: Helping regions like San Diego align workforce training, infrastructure investment, and economic development strategies so emerging industries like fusion translate into high-quality jobs, more resilient local supply chains, and broadly-shared prosperity. Here, California has the opportunity to invest in this fast-growing sector to strengthen both our economic and our long-term climate resilience.

With statewide investment and momentum, San Diego will be able to double down on the opportunities most critical to the fusion energy industry—from workforce development to streamlined siting, permitting, and grid readiness—to ensure our region captures the full economic benefit of fusion’s next chapter.

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A note from Eduardo: Looking into the 2026 crystal ball

By Eduardo Velasquez,

An inflection point

As another year begins, I sit with my crystal ball once again to see what we can glean from the data we’ve received this past year and what implications it may have for our region’s economic growth in the year ahead.

The past year told a complex story, driven by uncertainty. On the surface, the U.S. economy performed remarkably well, achieving 4.3 percent real GDP growth in Q3 2025, representing an acceleration from a year ago. But this growth has been buoyed by unprecedented investment in AI led by a handful of companies, potentially masking deeper structural shifts beneath the surface.

The U.S. achieved this growth while creating just 584,000 jobs—roughly one-third the rate seen in the past decade. And while San Diego gained its fair share, adding 5,800 jobs through November 2025, all our job growth was principally concentrated in higher education, healthcare, and local government.

In 2026, San Diego stands at an inflection point—one where technological transformation collides with traditional economic challenges in ways we haven’t seen before.

Innovation industries are losing steam

Our region’s innovation engines—the traded clusters that have long defined San Diego’s competitive advantage—are sputtering. Cumulative job growth across aerospace, life sciences, tech, and manufacturing has plateaued or declined from pandemic-era peaks. Cleantech continues to add jobs, though it represents a smaller sliver and is also growing at a slower pace than in previous years. More concerning, it’s not just leaner firms we’re seeing, but fewer firms altogether. Firm growth across these key industries has stagnated, with only defense tech startups providing a bright spot in an otherwise sobering picture.

 

This matters because innovation industry jobs have an outsized impact on our economy, with each added job supporting another two jobs elsewhere in the economy. When these jobs contract, the ripple effects are significant.

So what’s going on? In part, it’s a tale of structural transformation. Professional, scientific, and technical service jobs, which our innovation cluster relies on, declined 3.3 percent through November 2025. Meanwhile, an additional 550,000 square feet of office space were vacated during the year, bringing total vacant space to 11.3 million square feet in a year with zero new construction. 2025 showed our region’s economy is increasingly dependent on fewer knowledge workers and thus less office space to host those workers.

Yet, investment is happening. Nationwide, construction spending toward data centers is set to eclipse that of traditional office buildings—a trend that accelerated dramatically after ChatGPT’s release. Infrastructure investments are building for servers, not people.

AI is picking up the slack, for now

Amid this disruption comes a silver lining—AI may be delivering what all new technologies promise: Productivity. Looking at inflation-adjusted average wages as a proxy for productivity growth, San Diego’s innovation industries have recovered from the pandemic. AI may be responsible for this recovery, enabling workers to do more with less. This could help explain the decline in local job postings, which fell six percent in 2025.

The question is whether this productivity boost translates into broader prosperity or simply allows companies to operate with smaller teams.

San Diego’s talent landscape reflects this uncertainty. While the value of a degree has been questioned more than perhaps any time in history, it still brings higher income and greater job security in our region. In the past decade, more than twice as many local jobs have been added that require a bachelor’s degree or higher than those requiring associate’s degrees or less. This trend accelerated in 2025, with jobs requiring bachelor’s degrees or higher outnumbering others by a factor of six.

Yet, new graduates are struggling in a job market that increasingly favors experience alongside credentials. The national unemployment rate for young college graduates stands at 4.8 percent, up more than a percentage point compared to before the pandemic.

The market signal is clear: Disruption continues to favor those with degrees and experience, even as the nature of work itself transforms.

Affordability is not a hoax; it’s an enigma

Incomes are up and people are spending their money, but they’re not happy about it. That’s because the essentials like housing, childcare, energy, and transportation continue to get more expensive—local energy prices, for instance, are up nine percent year-over-year as of November 2025.

Housing affordability remains the single biggest threat to regional prosperity. While San Diego’s median household income has increased 25 percent since 2020—a welcome development—the cost of homeownership has far outpaced these gains. The median-priced home fell slightly to $990,000 in Q3 2025, requiring a household income of $263,000 to afford the monthly mortgage payment. Even those looking to rent are facing an average monthly outlay of $2,900, which makes San Diego one of the most expensive counties to rent in the nation.

There’s a glimmer of hope: San Diego home sales increased 14 percent year-over-year in September 2025, suggesting some movement in a frozen market.

Yet meaningful housing market recovery will remain elusive until mortgage rates drop substantially enough to free homeowners locked into historically low rates or make room for significant new supply.

The year ahead

These trends—the pace and composition of job growth, AI’s impact in the demand for talent, and housing affordability—will define San Diego’s 2026.

Can we leverage regional strengths to capture new growth opportunities, particularly in defense tech where startups show momentum? Will hiring priorities shift to tap new pools of talent as employers rethink what it means to be a skilled worker? How do we make room for more housing in a region where working families are increasingly priced out, while the office is increasingly empty?

The answers aren’t in my crystal ball.

They require deliberate action through an intentional, inclusive economic development agenda. We must make sure our region—and our state—is a place that not only cultivates great ideas but also enables the realization of those ideas into solutions, products, and jobs. We must make it easier for builders to build infrastructure and easier for businesses to do business.

In 2026, EDC will work to position San Diego as the destination for defense tech investment, build pipelines to better address employers’ evolving talent needs, and identify opportunities to replace unused office with much needed housing and infrastructure for working families.

But we can only do this with and through you—our partners across industry and academia, local and state government.

Now more than ever, our goal remains constant: To maximize San Diego’s economic prosperity and global competitiveness through meaningful partnerships with our 150+ investors and regional stakeholders. We know where we are and where we need to go. Getting there in 2026 will require resolve, creativity, and bold action—together.

LGSD!

Eduardo Velasquez
Eduardo Velasquez

Vice President, Economic Development & Research

 

Explore economic trends from prior years:

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Study: CA’s $125B fusion energy potential could support 40K jobs, power the future

By EDC Research Bureau,

In October 2025, San Diego Regional EDC released “Catalyzing CA’s Fusion Advantage: Roadmap to Commercialization,” an interactive web report quantifying the economic impact of California’s fusion energy industry and exploring its potential to support more than 40,000 jobs and $125 billion to the state economy.

With electricity demand rising and climate targets tightening, the world is facing an impending energy crisis. These challenges, combined with grid instability and geopolitical vulnerability, have underscored the need for groundbreaking commercial technologies, as well as coordinated policy and regulatory frameworks to harness the state’s full potential.

The same process that powers the sun, fusion energy has long been considered the “holy grail” of power: A clean, safe, and virtually limitless source of baseload electricity. It offers high power density, no carbon emissions, minimal and short-lived radioactive waste, no risk of meltdown, and 24/7 reliability.

California has already begun to establish itself as a global leader in the fusion energy industry. The presence of industry titans such as General Atomics and TAE Technologies, coupled with world-leading R&D institutes like Lawrence Livermore National Laboratory (LLNL) and UC San Diego’s fusion cluster, positions the state as one of the world’s most promising regions for fusion commercialization. These institutions also host two of the nation’s most significant fusion research facilities—General Atomics’ DIII-D, the only operational fusion user facility in the country, and LLNL’s National Ignition Facility, where the first successful ignition proved that fusion energy is possible.

“With the right support, California can lead the in the commercialization of fusion energy, capturing the economic benefits that come from it while reshaping the global energy landscape,” said Eduardo Velasquez, Sr. Director of Research and Economic Development at San Diego Regional EDC, the report’s author. “EDC’s report brings into focus the regions, firms, and talent currently driving the industry, as well as the opportunities and hurdles the state faces in scaling from fusion R&D hub to a production powerhouse.”

Informed by nearly two dozen executive interviews with fusion business leaders, academia, and local governance, the report—available at fusionCA.org—dives deep into current industry strengths, future growth scenarios, and policy recommendations needed to drive industry competitiveness in California.

KEY FINDINGS

  • California leads the nation in fusion energy development. The state boasts 16 core fusion companies—more than one-third of all U.S.-based fusion companies—and has captured more than $2.2 billion in cumulative private and public funding since tracking began.
  • The fusion industry already generates significant economic impact—with even more high-growth potential. Currently, fusion energy accounts for approximately 4,700 jobs across California and generates $1.4 billion in annual economic output. The industry has the potential to grow to between $48 billion and $125 billion, depending on successful commercialization and state policy decisions.
  • California excels in research but faces commercialization challenges. The state’s world-class universities, national laboratories, and private investment ecosystem position California as the global leader in fusion R&D. However, barriers such as regulatory uncertainty, high land costs, grid interconnection delays, and lack of fusion-specific policy frameworks threaten California’s ability to retain companies as they transition from R&D to commercial deployment.
  • Maintaining fusion leadership requires strategic policy measures and state support. Success depends on recognizing fusion as ‘clean energy’ under state law, establishing clear regulatory pathways, preparing appropriate sites for establishing commercial research centers and fusion energy plants, and creating coordinated policy support. Without decisive action, California risks losing fusion companies to other states offering more favorable commercialization conditions.

“As a leader in climate resilience, California has been at the cutting edge of energy transition strategies and innovation for decades. Now, as fusion presents such clear economic opportunity, our state must build a long-term policy roadmap that prioritizes and incentivizes research, commercialization, workforce development, and investment to further position us to lead in the global energy transition,” said California Senator Catherine Blakespear, Chair of the Environmental Quality Committee.

“We’re proud to play a key role in advancing fusion energy here in San Diego while collaborating with partners such as the State of California, the City of San Diego, the Department of Energy, the University of California system, and national laboratories,” said Anantha Krishnan, senior vice president for the General Atomics Energy Group. “To realize our region and state’s full potential, California companies will need financial incentives, regulatory support, and streamlined land-zoning processes. In addition, public-private collaborations to build test facilities and train the future fusion workforce will be critical to achieving success in commercializing fusion energy.”

The report was underwritten by General Atomics, with research contributions by Boston Consulting Group and sponsorship by B3K Prosperity, LLNL, Livermore Lab Foundation, Mintz, ML Strategies, and Tokamak Energy, and unveiled at a press conference and industry reception October 9. Congressman Scott Peters, Senator Catherine Blakespear, and other leaders across the state were in attendance.

READ THE FULL REPORT

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Rep. Peters, Mayor Gloria to lead France trade mission to strengthen economic ties with EU

By Bree Burris,

WORLD TRADE CENTER SAN DIEGO CONVENES REGIONAL LEADERS TO HELP SAN DIEGO BUSINESSES EXPAND GLOBALLY, CREATE LOCAL JOBS

In order to foster vital global economic partnerships, Congressman Scott Peters, San Diego Mayor Todd Gloria, and World Trade Center San Diego (WTCSD), the international team at San Diego Regional Economic Development Corporation (EDC), are leading a 2025 trade delegation to France. During the September 21–September 26 trade mission, business and civic leaders will promote the region’s key industries and seek to establish and strengthen business relationships across biotechnology, clean energy, maritime technologies, and tourism.

As geopolitical tensions, trade policy uncertainty, and supply chain realignments reshape the global economy, it is more important than ever for San Diego companies and institutions to strengthen ties with trusted partners in Europe. France—home to leading firms in aerospace, life sciences, clean energy, and advanced manufacturing—offers natural synergies with San Diego’s innovation-driven economy. This trade mission aims to open new pathways for collaboration, investment, and market access that will help San Diego businesses remain competitive and resilient in a complex international landscape.

“With years of enduring collaboration between France and the U.S., now is the time to reinforce our regional commitments on the world stage,” said Congressman Scott Peters. “I am eager to join WTCSD on the road—now for the fifth time—to strengthen our global collaboration, drive investments in innovation and R&D, and bolster public-private partnerships across critical industries.”

San Diego and France have shared expertise in knowledge-intensive industries, including biotechnology, aerospace and defense, and clean energy. France is San Diego’s third largest foreign investor, contributing $5.6 billion since 2014. Further, the country’s research institutions have built long-lasting relationships with San Diego’s premier universities including San Diego State University and UC San Diego. France is ranked third in Europe for R&D spending, with the Paris region ranking first worldwide for FDI in R&D and corporate projects.

Companies have also capitalized on these synchronicities. On the heels of its acquisition of San Diego-based Inhibrx, France’s largest life sciences company Sanofi announced its commitment to invest at least $20 billion in the U.S. by 2030. French aerospace giant Safran also calls San Diego home, with aerospace jobs making up nearly one-fifth of the region’s innovation employment.

Boasting one of the cleanest energy grids in Europe and producing more than half of the European Union’s nuclear energy, France is also home to the ITER fusion energy project—the largest international scientific collaboration in the world. As the project aims to create fusion energy at power plant scale, San Diego-based General Atomics is one of its largest contributors, fabricating the world’s most powerful pulsed superconducting electromagnet for ITER.

“San Diego is an undeniable force in the global marketplace, and our future prosperity depends on strengthening those ties,” said Mayor Todd Gloria. “From pandas returning to the Zoo to nonstop flights to Amsterdam to new tech jobs here at home, global engagement is delivering real results for San Diegans. I’m proud to continue this work alongside World Trade Center San Diego and Congressman Scott Peters, and to celebrate our new Sister City partnership with Marseille“

Over the five-day trade mission in Paris, Marseille, and Saint-Paul-lès-Durance, San Diego will look to build lasting institutional relationships and attract foreign investment in industries critical to the future.

Agenda items include:

  • The celebration of key partnerships including a new San Diego-Marseille Sister City Agreement; an MOU between life sciences trade organizations Eurobiomed and Biocom; and agreements for France’s Centre National de la Recherche Scientifique to place leading researchers at San Diego State University and UC San Diego.
  • Opportunities to showcase San Diego’s innovation economy and major regional development projects to foreign investors.
  • Ahead of the 2028 Los Angeles Olympics, tours and meetings with the organizers of the Paris Olympics for a best-practices discussion on infrastructure, tourism, and economic development.
  • Meeting and tour of ITER, where General Atomics’ recently-completed central solenoid magnet will be housed—a significant accomplishment for San Diego and clean energy innovation.
  • Formal meetings with major entities with investment interests in both countries, including Sanofi, LVMH Group, Dentons, and the Port of Marseille.

“As the rules of global commerce continue to shift rapidly, San Diego firms of all sizes need strong partnerships to navigate this moment,” said Nikia Clarke, executive director of World Trade Center San Diego and chief strategy officer at San Diego Regional EDC. “That’s why we lead trade missions as a region—with a diverse cross-sector delegation of both the region’s largest and smallest employers working together to find opportunity in uncertainty.”

Delegates will participate in upwards of 15 meetings over the course of the trade mission, sharing best practices and driving business connectivity across many verticals. The nearly three dozen San Diego delegates include representatives from ASML, Ambix Ventures, Cubic Transportation Systems, General Atomics, San Diego Zoo Wildlife Alliance, and smaller businesses including French Bio Beach, GEN2X, and La Jolla Labs. Also in attendance are delegates from key agencies, academic institutions, and civic organizations such as the Port of San Diego, San Diego Regional Chamber of Commerce, SoCal French American Chamber of Commerce, San Diego Tourism Authority, Biocom, San Diego State University, University of California Office of the President, UC San Diego, and others

The trade mission is organized by World Trade Center San Diego, the international team at EDC, with assistance and support provided by the U.S. Embassy in France, the SoCal French-American Chamber of Commerce, and Dentons Paris, and sponsorship by Qualcomm, Ambix Ventures, General Atomics, and San Diego Tourism Authority.

Learn more about France and San Diego’s connection here, and follow along during the trade mission: #SDinFR. 

SD-FR data sheet

WTCSD has previously led trade missions to Singapore, South Korea, The Netherlands, Germany, the United Kingdom, Japan, Vancouver, and more.

About World Trade Center San Diego
World Trade Center San Diego (WTCSD) is the international team within San Diego Regional Economic Development Corporation (EDC). WTCSD 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. WTCSD.org

For media queries or other questions, contact:

Bree Burris
Bree Burris

Sr. Director, Communications & Community Engagement

A note from Eduardo: San Diego’s 2025 mid-year check-in

By Eduardo Velasquez,

At the top of each year, we try to look ahead to which trends are most worth tracking for the potential impact each can have on our local economy. We began 2025 watching AI and affordability, as well as whether massive investments from both corporations and the federal government would translate into job growth.

We also began 2025 flagging that there would be many wild cards in the year ahead that could knock us off course. As we enter the second half of the year, we want to pause to take stock of what has been a very tumultuous six months, with both immediate impacts and long-term implications.

Affordability and AI

The housing affordability picture looks mostly the same as it did in January: dire. Mortgage rates have bounced around a narrow range while staying above six percent, and the median home price remains just above $1 million, translating to a monthly mortgage payment of about $5,300. This means the annual household income needed to qualify for a conventional loan is more than $260,000, which roughly 12 percent of all households in the region can afford.

AI adoption remains one of the most profound questions in workforce development. San Diego has once again been identified as a ‘star hub’ for AI capacity and adoption, predominantly as a region with high rates of firm readiness and job exposure to generative AI. Tech giants continue to race for AI dominance, which has led to eye-watering compensation packages, record valuations for chipmakers, and $70 billion announced in new federal investments for data centers and power grid upgrades.

What the cut?

Speaking of federal funding, the impact of federal investments on local job growth is more immediate. That’s because all the money that the federal government lined up to invest in re-shoring manufacturing, capacity building for semiconductors, and sustainable energy projects in the last few years has been cut off, significantly scaled back, or temporarily tied up. Oh, and don’t forget state and local public funding cuts.

It is worth noting that much of this remains to be settled as the courts figure out what the Trump administration can legally defund. Yet, much of it is already impacting San Diego’s economy.

New jobs data shows that through the first half of 2025, the region lost 4,900 jobs. This is not as bad as the first six months of 2024 but still trending in the wrong direction. June’s unemployment rate jumped to 4.9 percent (from 4.0 percent in May) as the number of people unemployed rose 14,200—the largest month-over-month increase since the pandemic lockdowns of April 2020.

Private sector job losses are even deeper, down 8,400 year-to-date. Every major sector in San Diego has shed jobs through mid-2025, with the exceptions of Healthcare and Social Services, Leisure and Hospitality, and State and Local Government.

Way too many wild cards in this deck

The pace of new policy directives from D.C. has been overwhelming. The lack of clarity as to whether these policy proposals will be implemented, or are legally enforceable, has been paralyzing. Whether it’s consumers, homebuilders, or manufacturers, the sentiment remains weak.

In San Diego, it’s not just bad vibes. The impacts are real.

The newly-created Department of Government Efficiency (DOGE)’s contract cancellations have started chipping away at our federal workforce, including DoD which spent $20 billion here last year. Proposals to reduce indirect costs associated with federal research grants have led to hiring freezes and layoffs in higher education and could evaporate nearly $448 million from the regional economy. The proposed cuts to NIH and NSF funding would nearly cut in half the region’s $1.1 billion that fuels the research that has led to 99 percent of drugs approved a decade ago. Congress’ latest tax law is set to increase the population of uninsured patients by 1.7 million across California and is already manifesting in workforce reductions at local hospitals, which hasn’t yet showed up in the data.

The up and down tariff threats are the top concern of local businesses that sell in global markets. As one company executive put it, retaliation from countries like China has “completely changed the growth strategy.” These impacts are felt locally in jobs losses to industries like Transportation and Warehousing (down 10 percent, year-to-date) and Retail (down almost five percent). These impacts are also felt by $1 billion less in venture capital, $500 million less in export sales, and 770 fewer employers looking to hire than a year ago in San Diego.

“If you want to go far, go together.”

There are many famous quotes about navigating uncertainty and how resilience drives success. At EDC, we often quote an African proverb: “If you want to go fast, go alone. If you want to go far, go together.”

Collaboration has often defined success in this region; it’s what makes us different.

Whether the winds change and we need to adjust our sails, or whether we fall seven times but pick ourselves up eight, let’s do it together.

As I look into my crystal ball again, I see the next six months will continue to be riddled with uncertainty and unexpected challenges. I also still see a region that is a top three Life Sciences market, a top three market for startups, has the largest concentration of military assets in the world, and the busiest land port in the Western hemisphere. So, we have a lot to build on. As your business works to navigate changing rules, reach new markets, or find talent, don’t go it alone. EDC is here to help.

Onward and upward,

Eduardo Velasquez
Eduardo Velasquez

Vice President, Economic Development & Research

More FROM EDC’s research bureau

More on inclusive growth

A note from Eduardo: Looking into the 2025 crystal ball

By Eduardo Velasquez,

The map is not the terrain

As I return to the crystal ball in 2025, never have I seen such a wide range of possibilities. Both the national policy and technology landscapes are primed for major disruptions that could shape San Diego’s economic fortunes in more ways than we can count. While the map provides a fairly clear direction, the terrain is difficult to predict and sure to throw us off course at some point, at least temporarily.

What is certain is that we have just wrapped up what should be viewed as another solid year for the U.S. economy. The nation added 2.2 million jobs, a growth rate slightly above the average of the last 10 years. The economy expanded at an annualized growth rate of 3.1 percent, primarily driven by consumer spending, exports, business investment, and federal government spending. Inflation has continued to moderate with the price of energy and goods falling, while the price of services continues to rise.

I see the money, show me the jobs

Locally, San Diego continues to draw venture capital to fund young companies in both Tech and Life Sciences, to the tune of nearly $6 billion in 2024. The region also added jobs, but at about half the rate of the U.S. Recent job growth has been driven by locally serving industries like full service restaurants, whereas our innovation industries have shed jobs during the last 12 to 18 months. Some of this is right sizing after a pandemic fueled surge in Life Sciences. Some of it is driven by federal incentives that have led to relocation and expansion of Manufacturing jobs outside our region.

Federal funding has fueled a half trillion-dollar investment into new manufacturing facilities nationwide over the last three years. Pre-pandemic, manufacturing employment growth in San Diego outpaced both the state and nation; since then, that trend has completely reversed.

Meanwhile, there are $132 billion in federally appropriated funds for renewable energy that remain unspent. San Diego has a small but growing Cleantech cluster that continues to innovate and provide high-paying jobs.

Additionally, the private sector has more than bought into the promise of AI, with a third of the large companies looking to pour tens of millions of dollars more into the tech and build upon the positive returns on the past investments. The question here is whether San Diego can catch the wave of investment that is going into all these foundational and enabling technologies so that our region can also benefit from the growth will bring.

AI’s double-edged sword

Speaking of AI, 2025 may be the year that will truly test the hype. Yes, investment is up, way up (see last paragraph), but job postings requiring skills in developing AI have barely budged since the launch of ChatGPT in November 2022.

Yet, the application of GenAI is seemly impacting the skills employers are looking for in new hires. Since 2019, six of the 10 fastest growing occupations in Life Sciences have been for non-scientific and non-technical roles. In Tech, seven of the 10 fastest growing occupations have been non-engineering, non-software roles. In fact, demand for software developers has fallen 80 percent during that time—the occupation that has topped job postings lists for the last decade in San Diego. Time will tell if the AI hype is real, but for now, there are fewer Tech jobs in San Diego than there were pre-pandemic and AI’s impact on the labor market is certainly a factor.

Affordability is about payments, not prices

Another factor impacting San Diego’s Tech cluster is remote work availability, which was lower in 2024 than in 2023 and lags the national average. Remote jobs outside of the region can be especially attractive considering San Diego’s high cost of living.

However, 2024 did bring some relief in terms of housing costs. Rents in San Diego grew much more slowly compared to recent year, up 2.6 percent. The median-priced home fluctuated throughout the year but ended where it began at just above $1 million. However, mortgage rates continued to rise, driving up the monthly payment on that same million-dollar home by $730. There are signs that it is less of a seller’s market: homes have not sold above asking price for most of the past 12 months and for-sale inventory is higher than it’s been in years. Still, the big variable in the housing market is whether mortgage rates can fall enough to spur owners currently locked into historically low rates to sell.

The year ahead

These trends—converting capital to job growth, harnessing AI to boost productivity, and unlocking home sales—will help define our regional economy in the year ahead. Of course, so will several other wild cards, such as looming public budget constraints, the prospect of trade wars, global conflict, and climate change impacts. Nonetheless, the goal remains the same: to maximize San Diego’s economic prosperity and global competitiveness through an inclusive economic development agenda, and doing so with and through our network of 150+ investors and regional partners.

In 2025, EDC will focus on amplifying the economic impact of large-scale, mixed-use developments to grow and retain quality jobs and deliver much needed housing. We will also work to elevate the value of our unique assets as a military economy, cross-border region, and innovation hub. We know where we are and where we want to go—getting there will certainly be a ride.

Happy new year,

Eduardo Velasquez
Eduardo Velasquez

Vice President, Economic Development & Research

 

Read 2024’s edition: Looking into the 2024 crystal ball

Read 2023’s edition: Looking into the 2023 crystal ball

More FROM EDC’s research bureau

More on inclusive growth

Rep. Peters, WTCSD to lead Singapore trade mission to strengthen economic ties in Asia

By Bree Burris,

WORLD TRADE CENTER SAN DIEGO CONVENES REGIONAL LEADERS TO HELP BUSINESSES IN SAN DIEGO MEGA-REGION EXPAND GLOBALLY, CREATE LOCAL JOBS

In order to foster vital global economic partnerships, Congressman Scott Peters, San Diego Councilmember Raul Campillo, and World Trade Center San Diego (WTCSD), the international arm of San Diego Regional Economic Development Corporation (EDC), are leading the 2024 trade delegation to Singapore. During the September 30—October 4 trade mission, business and civic leaders will promote the region’s key industries and seek to establish and strengthen business relationships across biotechnology, medical devices, advanced manufacturing, and urban infrastructure.

A generational shift in U.S. industrial strategy aimed at reducing reliance on China, coupled with federal legislation like the Chips and Science and Infrastructure Investment and Jobs Acts, position Singapore as a natural partner in advanced industries. As national governments continue to incentivize the reshoring and nearshoring of activities, gateway regions like Singapore-Malaysia in Asia and San Diego-Tijuana in the Americas are perfectly positioned to take advantage of these global shifts.                                                    

“Singapore’s strategic position and expertise in innovation industries make it an ideal partner for our San Diego-Tijuana binational region,” said Congressman Scott Peters. “This trip with World Trade Center San Diego will help strengthen our global brand, drive investment, and bolster the resilience of our local businesses.”

Home to the world’s busiest transshipment port and border crossing, Singapore is a highly developed center for global trade and a hub for U.S. companies conducting business in Asia. Situated in one of the most strategically important locations on the planet, the city-state boasts a free and business-friendly economy with low corruption, low tax rates, a skilled workforce, and world-class infrastructure.

As the U.S. strengthens its alliances in Southeast Asia, San Diego finds in Singapore an economy with shared expertise in knowledge-intensive industries, including artificial intelligence, medical device manufacturing, and information communications technology. Singapore boasts satellite operations for some of San Diego’s premier innovators including Qualcomm, ResMed, and Illumina. Further, Singapore has poured $12.8 billion in FDI into the U.S. since 2019 in industries such as manufacturing, information communications technology, and energy. The U.S. has matched that amount, investing $12.5 billion during the same time period. Looking closer, Singapore is the #10 country investing venture capital into San Diego by deal count, just behind Denmark and India (2014—2020), primarily in the medical equipment and technology industries. Singapore also shares in San Diego’s binational identity, with Singapore-Johor seeing nearly 1.6x the number of border crossings per day compared to San Diego-Tijuana’s border (450,000 and 283,000, respectively).

“Guided by data and shifting geopolitics, each year WTCSD leads a trade mission to a strategic international metro. For 2024, Singapore was a standout choice for our delegation of public-private leaders,” said Nikia Clarke, executive director of World Trade Center San Diego and senior vice president at San Diego Regional EDC. “As gateway regions, Singapore-Malaysia in Asia and San Diego-Tijuana in the Americas will anchor the critical supply chains of the future. We’re here to deepen international ties and maximize our economic impact.”

Over the four-day trade mission across Singapore, San Diego will look to build lasting institutional relationships and attract foreign investment in industries critical to the future.

Agenda items include:

  • The celebration of a recent partnership between UC San Diego and National University Singapore, as well the exploration of new opportunities around soft-landing space with Singapore commercial real estate developer CapitaLand
  • Opportunities to showcase San Diego-Tijuana and major regional development projects for foreign investors, including innovation developments by San Diego State University and Alexandria Real Estate Equities, Inc.
  • Local, small- to mid-sized businesses Biolinq and Visaic will pitch to global investment firm Temasek
  • Meetings with Port, Airport, Border, and infrastructure partners to better connect our regions through nonstop air and liner service, as well as sharing energy transition and urban development innovations
  • Government convenings with Deputy Prime Minister of Singapore Gan Kim Yong and other dignitaries
  • Formal meetings and tours of major employers in both regions, including Illumina, ResMed, as well as the Mandai Wildlife Group—a peer of the San Diego Zoo Wildlife Alliance

Delegates will participate in upwards of 15 meetings over the course of the trade mission, sharing best practices and driving business connectivity across many verticals. The two dozen San Diego delegates include representatives from Cubic, Mitsubishi Electric, Qualcomm, San Diego Zoo Wildlife Alliance, and smaller businesses including Visaic and Biolinq. Also in attendance are delegates from key agencies, academic institutions, and civic organizations such as Port of San Diego, San Diego International Airport, UC San Diego, San Diego State University, MiraCosta College, Tijuana EDC, San Diego Tourism Authority, Connect, and others.

“As San Diego’s Economic Development Chair, I have two key goals: creating high-paying jobs and lowering costs for families in our city,” said San Diego City Councilmember Raul Campillo. “International trade and partnerships with businesses in Singapore and elsewhere bring advanced technology, high-skill workers, and robust tourism and investment to our local region. This strengthens our economy and delivers benefits like more affordable products that our citizens will see in their day-to-day lives.”

The trade mission is organized by World Trade Center San Diego, the international team at EDC, with assistance and support provided by the U.S. Embassy in Singapore, and sponsorship by Qualcomm, Ambix Ventures, San Diego Tourism Authority, and the San Diego Zoo Wildlife Alliance.

Learn more about Singapore and San Diego’s connection here, and follow along during the trade mission: #SDinSG. 

WTCSD has previously led trade missions to South Korea, The Netherlands, Germany, the United Kingdom, Japan, Vancouver, and more.

For media queries or other questions, contact:

Bree Burris
Bree Burris

Sr. Director, Communications & Community Engagement

Investor Spotlight: General Atomics

By Liz Muthoni,

As a nonprofit, San Diego Regional EDC is supported by investment from nearly 150 private organizations, companies, and public agencies like General Atomics. With this support, EDC provides direct services to help companies grow and thrive in San Diego by leading initiatives to enhance the region’s growth and prosperity.

General Atomics has long been an EDC investor and global leader in energy and defense research and development. In early 2023, Mayor Todd Gloria visited the DIII-D National Fusion Facility at GA’s Torrey Pines campus as part of a series of tours of the region’s leading defense innovators.

Hear about General Atomics’ leadership in the world’s clean energy future and how the company is investing in San Diego.

Tell us about General Atomics and its mission.

Headquartered in San Diego, General Atomics (GA) specializes in diversified research and development for energy, defense, and aircraft. As the world’s largest private participant in fusion energy research, GA aims to provide sustainable, reliable carbon-free energy for future generations through commercialized fusion power plants. Cracking the code on fusion would mean no harmful emissions, no radioactive spent nuclear fuel waste, and no mining for fuel because fusion fuel is derived from seawater.

GA operates the DIII-D National Fusion Facility in San Diego on behalf of the Department of Energy (DOE) and has been the sole-source supplier of targets and target support services for the DOE National Nuclear Security Administration’s inertial confinement fusion program since 1991.

Why San Diego?

Founded in San Diego in 1955, GA has proudly called the region home for nearly 70 years. GA’s Torrey Pines campus was originally made possible by the City of San Diego, which arranged a public vote to approve the sale of what was then an empty cow pasture overlooking the Pacific Ocean. While the company now operates on five continents with more than 12,500 employees and more than 8.3 million square feet of engineering, laboratory, and manufacturing facilities worldwide, the majority of GA operations remain in San Diego County.

Over the years, GA has benefited enormously from San Diego’s quality of life, competitive innovation workforce, and partnerships with world-leading universities like UC San Diego and San Diego State University (SDSU). GA has hosted countless students for internships and postdoctoral fellowships, and generations of UC San Diego and SDSU researchers working alongside its scientists and engineers on a wide range of projects. Many of these students have gone on to become leading scientists in their field, some of whom now work full-time in San Diego at GA.

GA is also known for its support of San Diego’s small businesses, which make up 98 percent of the region’s firms. Now a cornerstone of San Diego’s innovation ecosystem, GA as a long-time federal contractor is committed to supporting San Diego’s small, women-, veteran-, and minority-owned businesses through its comprehensive DOE-recognized Small Business Program.

Please share more about GA’s collaboration and partnership with San Diego Regional EDC.

GA has been an EDC investor for more than 30 years. Vice Chairman Linden Blue has served as a director and in EDC leadership roles over the years. As GA facilities have  expanded, EDC has provided permitting support as well as helping elected leaders understand the company’s economic impact on the region. In recent months, GA has worked the team to arrange behind-the-scenes tours for Mayor Todd Gloria and local business leaders sharing our exciting fission and fusion facilities with community partners.

Looking ahead, what is on the horizon for GA?

Among other initiatives, GA is drawing from its decades of experience in fusion to develop a new concept for a Fusion Pilot Plant that will deliver clean, safe, and economically viable fusion-powered electricity. The facility will utilize GA’s proprietary Fusion Synthesis Engine to enable engineers, physicists, and operators to optimize the plant for maximum efficiency, and has developed a concept for tritium, a fusion fuel, to make the fuel cycle self-sufficient. As part of this project, GA is joining with leading institutions around the world, including France-based ITER Organization, to pursue the most rapid, economically practical path to fusion energy.

The great thing about clean energy is that anyone with a passion for it can find their calling in the space. In addition to the scientists and engineers who create clean technology, San Diego’s GA team needs the same talented business, operations, and marketing professionals that any other company needs to operate successfully. For GA, a clean energy future means access to high quality jobs for all San Diegans.

Read more about EDC’s investors in our investor spotlight blog series and join GA and 150+ investors committed to supporting the region’s inclusive economic development by becoming a member of EDC.

Interested in publishing an investor spotlight? Contact our team:

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Mayor Todd Gloria to lead South Korea trade mission to strengthen economic ties in Asia

By Bree Burris,

WORLD TRADE CENTER SAN DIEGO CONVENES REGIONAL LEADERS TO HELP BUSINESSES IN SAN DIEGO MEGA-REGION EXPAND GLOBALLY, CREATE LOCAL JOBS

In order to foster vital global economic partnerships, San Diego Mayor Todd Gloria, SANDAG and San Diego County Board of Supervisors Chairwoman Nora Vargas, and World Trade Center San Diego (WTCSD), an affiliate of San Diego Regional Economic Development Corporation (EDC), are leading a trade delegation to South Korea. During the October 27—November 2 trade mission, business and civic leaders will promote the region’s key industries and seek to establish and strengthen business relationships across biotechnology, semiconductors, clean energy, and infrastructure.

Monumental federal legislation (IIJA, IRA, and CHIPS and Science Act), combined with a generational shift in U.S. industrial strategy aimed at reducing American reliance on China, have positioned South Korea as a natural partner in critical industries. As the federal government continues to incentivize the reshoring and nearshoring of activities aligned to national priorities, leaders from across San Diego, Imperial Valley, and Tijuana are maximizing growth through global connection.                         

“South Korea is a critical global market and a natural partner for San Diego as we share complementary strengths in the life sciences, clean energy, and biotechnology sectors,” said Mayor Todd Gloria. “I’m proud to again join the World Trade Center San Diego on a trade mission to strengthen business relationships and grow quality jobs here at home for San Diegans.”

Home to Asia’s third busiest cargo airport and seventh largest port, South Korea is an emerging hub for global trade and business. As the U.S. strengthens its alliances in East Asia, San Diego finds in South Korea an economy with shared expertise in knowledge-intensive industries, including personalized medicine, semiconductor research and manufacturing, and clean energy. South Korean-based companies directly employ more than 850 San Diegans, predominantly in the technology and manufacturing industries at companies like Samsung and Hyundai. Notably, the U.S. and South Korea hold the #1 and #2 spots, respectively, in global market share of the semiconductor industry. Further, South Korean investment into the U.S. is accelerating, with $18.2 billion in new investment since mid-2020 alone. South Korea is the #13 country investing venture capital into San Diego by deal count, closely behind Germany and Singapore (2014—2020), primarily in the pharmaceuticals and technology industries.

LEARN ABOUT THE TWO REGIONS

 “The binational mega-region has always been a remarkable place, but at this moment for the global economy, we can compete like never before,” said Nikia Clarke, executive director of World Trade Center San Diego and senior vice president at San Diego Regional EDC. “With San Diego’s innovation ecosystem, Imperial Valley’s clean energy leadership, and Tijuana’s advanced manufacturing prowess, we have all the necessary pieces to anchor the supply chains of the future: collaboratively, efficiently, and sustainably.”

“I am looking forward to showcasing the advancements in clean energy technology, life sciences, and port infrastructure to elevate the best of what our binational region has to offer and identify new partnerships with South Korea to foster innovation and economic growth for both our regions,” said SANDAG and San Diego County Board of Supervisors Chairwoman Nora Vargas. “This is an opportunity to increase trade and share new ideas that will help develop lasting solutions to improve our region’s infrastructure, transportation, and economy for the residents of San Diego County.”

Over the four-day trade mission in Seoul, Incheon, and Gyeonggi Province, San Diego will look to build lasting institutional relationships and attract foreign investment in industries that are critical to the future.

Agenda items include:

  • The celebration of a partnership between San Diego-based medtech company Dexcom and South Korean-based tech giant Kakao, which will enable Dexcom to bring its next-generation glucose monitoring capabilities to the South Korean market
  • Opportunities to showcase major regional development projects for foreign investors, including the Seaport Village redevelopment, Lithium Valley in Imperial County, as well as San Diego State University and UC San Diego’s campus expansions
  • Meetings with Port, Airport, and infrastructure partners to better connect our regions through nonstop air and liner service, as well as sharing energy transition innovations
  • Government convenings with the Governor of Gyeonggi and the Mayor of Siheung together with Mayor Todd Gloria and SANDAG and County Board of Supervisors Chairwoman Nora Vargas
  • Formal meetings and tours of major employers in both regions, including Qualcomm, Illumina, and Samsung Biologics

Delegates will participate in upwards of 15 meetings over the course of the trade mission, sharing best practices and driving business connectivity across many verticals. The two dozen San Diego delegates include representatives from Illumina, Qualcomm, Viasat, ASML, Cubic, General Dynamics NASSCO, Gafcon, and small businesses including Tioga Research and Nano PharmaSolutions. Also in attendance are delegates from key agencies, universities, and civic organizations such as Port of San Diego, San Diego International Airport, UC San Diego, San Diego State University, San Diego Association of Governments (SANDAG), Imperial Valley EDC, Tijuana EDC, and others.

The trade mission is organized by World Trade Center San Diego, an affiliate of the San Diego Regional EDC, with assistance and support provided by the U.S. Embassy in South Korea, and sponsorship by Dentons, Townshend Venture Advisors, and Qualcomm.

Follow along with the trade mission: #SDinKR

REFLECTIONS ON OUR KOREA TRADE MISSION

WTCSD.ORG

Thank you to our trade mission sponsors:

How this local company is helping lead the electrification revolution

By Bree Burris,

‘Electrification revolution’ to drive clean energy future, job growth, innovation

Today, Carlsbad-based battery manufacturer American Lithium Energy Corporation (ALE) announces it has secured a total of $13.2 million from the California Energy Commission (CEC) as part of its Realizing Accelerated Manufacturing and Production (RAMP) and Zero-Emissions Transportation Manufacturing programs. ALE will use the funding to expand its U.S.-based manufacturing production capabilities in Carlsbad, significantly grow its team in California, and increase use of U.S. and California-based raw materials and equipment supplies, in order to further its mission of developing sustainable energy solutions that promote the widespread adoption of zero-emissions transportation.

Founded in 2006 by Dr. John Fan, ALE’s technology first serviced the U.S. Army and has been actively engaged and shipping products to the Department of Defense, Department of Energy, and several U.S. defense primes for more than 10 years. Now, with 40 patents and the most advanced lithium-ion battery in the world, the company offers battery applications for defense, aerospace, medical devices, electric vehicles, and much more.

A 2035 state mandate for electric vehicles and other ambitious goals has spurred significant investments in battery innovation. The recent $46 million CEC award to ALE and three other zero emission transportation manufacturing companies marked the single largest state award in history—designed to support the growth of lithium battery production, develop sustainable energy solutions, and promote the widespread adoption of zero-emissions transportation.

“We are thrilled to receive this significant funding from the California Energy Commission,” said Dr. John Fan, CEO, American Lithium Energy Corporation. “This funding will allow us to expand our outreach efforts, increase our production capabilities, and continue to drive innovation in the lithium battery industry. Our goal is to become a leader in sustainable energy solutions and expand our outreach efforts, increase our production capabilities, and continue to drive innovation in the lithium battery industry, and this funding will help us achieve that goal.”

As we become increasingly reliant on battery technology and governments make bold commitments to clean energy, the availability of lithium—a key component in batteries—will play a major role in nearly every aspect of our economy. California, and more specifically the Southern Border region of San Diego and Imperial Counties, is uniquely positioned to lead in the ‘electrification revolution’. Home to the largest rare earth mineral extraction site outside of China, ‘Lithium Valley’ in neighboring Imperial Valley’s Salton Sea presents significant opportunity to catalyze the U.S.’ future energy independence. In fact, the Salton Sea could provide 600,000 tons per year of lithium carbonate, currently priced at $12,000 per ton, which exceeds the total global lithium carbonate demand.

“As oil shaped the last century, lithium will help shape the next. And as leaders in technology, science, and manufacturing, our bi-national mega-region is uniquely positioned to lead in the clean energy future. To support more innovation, jobs, and companies like ALE, we will need the talent, infrastructure, and backing of our policymakers to do this right,” said Mark Cafferty, president and CEO, San Diego Regional EDC.

This funding is considered a component of ALE’s Series A fundraising. ALE is also actively engaging in discussions with investors that invest both equity and debt into energy storage solutions in order to accelerate its mission.

Other CEC program awardees include ChargePoint, Zimeno, and Wiggins Lift.

Learn more about Cleantech, Manufacturing, and other key industries in San Diego

ALE is hiring! Job board here