Tag: life sciences

Meet our 2026 San Diego Business Impact Awardees

By Kai Oliver-Kurtin, San Diego Magazine,

From clean energy and biotech, to beach bags and events, these San Diego companies are driving the region’s next wave of growth

Originally published in San Diego Magazine, authored by Kai Oliver-Kurtin

Renewable energy companies building hundreds of power plants. Biotech startups using artificial intelligence to create personalized medicine for children with rare diseases. Hospitality companies quietly powering thousands of local events. Consumer brands growing from beach-town startups into national businesses. These are the kinds of companies driving San Diego’s economy today, and the businesses recognized at this year’s San Diego Business Impact Awards offer a snapshot of where the region is headed.

Hosted July 23 by San Diego Regional Economic Development Corporation (EDC) and JPMorganChase, the second annual awards event honored four local companies for innovation, growth, and economic impact. More than 100 nominations from San Diego’s middle-market businesses were reviewed by a 10-person judging committee, with winners selected across four categories: startup, early-stage innovator, rising star, and established heavyweight.

Two-time honoree Jimbo Someck, founder of Jimbo’s organic grocery stores, also joined the event for a fireside chat on buying local, supporting emerging brands, and giving back to the community.

“San Diego’s strength comes from its makers and builders—the resilient people who endure great risks and overcome obstacles to build and scale a company,” says Aaron Ryan, San Diego Region Manager and Middle Market Banking at JPMorganChase & Co. “These awards aren’t just recognition; they spotlight the talent, grit, and innovation shaping our region’s future. By celebrating those who create and build, we foster connections and fuel the growth that keeps San Diego thriving.”

Building the infrastructure behind clean energy

Heavyweight honoree SOLV Energy has grown alongside the country’s rapid investment in renewable power. “It’s an exciting time for SOLV Energy as we are experiencing significant growth,” says CEO George Hershman. “The business has doubled over the last year and has almost double-digit growth since its inception.”

The Rancho Bernardo-based company designs, builds, operates, and maintains utility-scale solar and energy storage facilities. Since its founding in 2008, SOLV Energy has built more than 500 power plants.

Growth has translated directly into hiring. About 200 employees work from the company’s local headquarters, including roughly 20 interns. “Our intern program is a big part of the way that we grow our workforce,” Hershman says. “Last year, 43 percent of our interns became full-time employees. We believe San Diego is a great community to build and grow a high-tech infrastructure and technology company because of the incredible workforce—the ability to attract top talent and draw from world-class universities.”

Developing medicine one patient at a time

Startup honoree La Jolla Labs is tackling one of medicine’s biggest challenges by developing personalized RNA therapeutics for patients with rare diseases—many of them children with neurological disorders like ALS. Using proprietary artificial intelligence and machine learning tools, the biotech company develops treatments tailored to each patient’s specific genetic mutation.

CEO Tamar Grossman says the recognition reflects how far the company has come despite limited resources. “We’re honored to be recognized for our ability to change and save patients’ lives and turn our lean startup into a clinical company with very minimal resources,” she says.

Grossman credits San Diego’s concentration of research institutions—including UC San Diego, the Salk Institute, and Scripps Research—with creating a pipeline of talent and collaboration. “San Diego is one of the world-leading centers for technology, genomics, and RNA therapeutics,” she says. “We have over 30 RNA therapeutics companies here, and we support each other and help with anything related to drug discovery.”

She says that collaborative spirit extends beyond formal partnerships. “You can walk around Torrey Pines, go into a café, and find colleagues from the industry and have an ad hoc conversation,” Grossman says. “That’s something very unique to San Diego.”

Powering San Diego’s special celebrations

While Snake Oil Venue Company may not be a household name, chances are many San Diegans have attended one of its events. The early-stage innovator honoree has expanded from beverage catering and mixology consulting into venue management, operating Julep Venue in Mission Hills, Bramble Bay Venue in Imperial Beach, Vesper Venue, the Chapel at Liberty Station, and five outdoor venues throughout Liberty Station—more than 500,000 square feet of event space altogether.

“We do a lot of launch parties for corporations and new products,” says CEO Mike Esposito. “I really like working on the entrepreneur side of things, where new businesses are entering the San Diego market and looking to make a splash.”

Snake Oil has executed more than 16,000 events, employed more than 1,000 people, and partnered with more than 900 local vendors, including caterers, florists, photographers, entertainers, and other hospitality businesses. The company also works with many of San Diego’s nonprofits, museums, and cultural institutions. “We get to celebrate people’s most important moments,” Esposito says. “Whether that’s a wedding, celebration of life, or quinceañera, we’re fortunate to be involved in the community in so many different ways.”

Growing a beach-town brand into a national business

Rising star honoree ALOHA Collection is proof that a simple idea can grow into a thriving company. Founded by two roommates who wanted a better way to carry wet swimsuits after a day at the beach, the lifestyle brand has grown into a business while maintaining strong year-over-year growth.

Now headquartered in Carlsbad, ALOHA Collection employs more than 100 people and operates its California flagship store in Encinitas, which is slated for a remodel. With roots in Hawaii, the company is known for its lightweight, splash-proof travel bags that have become a familiar sight on beaches in San Diego and beyond.

“‘Aloha’ is part of our name, but it’s also how we move through the world,” says CEO Lynna Barnard. “It’s how we show up for people, the way we travel, the way we give back.” Since day one, the company has maintained a 5 percent giveback to Hawaii conservation efforts, contributing millions of dollars over the years.

“I think what’s so inspiring about ALOHA Collection, and the founders in particular, is when you dream big, those dreams can come true when you work hard and trust in the universe,” Barnard says. “It’s inspiring to be a role model for other people wanting to start businesses from humble beginnings. Start small and watch it grow.”

Picture credits: Matt Furman, San Diego Magazine

Together, businesses like these form a cornerstone of San Diego’s economy—not only through the jobs and revenue they generate—but through the local workers they hire, vendors they support, and investments they make in the region. Their growth doesn’t happen in isolation; it ripples outward, strengthening the broader business community and the people who call San Diego home.

EDC, WTCSD kick off BIO 2026 spotlighting San Diego to international delegations

By Becca Schulert & Javier De Leon,

Home to renowned universities and research institutions, life-changing breakthroughs, and a highly-skilled talent pool, San Diego is a global leader in innovation and a pillar of California’s world-leading life sciences sector. Kicking off BIO 2026, San Diego Regional EDC and World Trade Center San Diego (WTCSD) hosted our second biennial Invest in San Diego Breakfast spotlighting our region’s world-class life sciences ecosystem.

In partnership with the California Governor’s Office for Business and Economic Development (GO-Biz), IQHQ, and San Diego County Water Authority, with support from ITJ and Biocom, we welcomed more than 200 attendees representing international delegations including Japan, Singapore, the UK, Australia, Denmark, and South Korea. Alongside stunning waterfront views at IQHQ’s Research and Development District, City of San Diego Mayor Todd Gloria welcomed delegates and highlighted life sciences’ driving role in San Diego’s global economic impact, and GO-Biz Associate Deputy Director for Industry Engagement and Development Maria Onorato spoke to California’s collaborative spirit and business support.

Following EDC’s Chief Strategy Officer and WTCSD Executive Director Nikia Clarke’s spotlight on San Diego’s competitive advantages, attendees heard industry insights from an expert panel moderated by Miguel Motta, Senior Vice President, Chief Operating Officer, and San Diego Head at Biocom.

Representing some of the biggest brands and most exciting startups in life sciences, panelists Kevin Pegels, chief of global operations at Illumina, Sabrina Martucci Johnson, president and CEO at Daré Bioscience, Tamar Grossman, co-founder and CEO at La Jolla Labs, and Thierry Diagana, head of global health and California sites head at Novartis shared why they call San Diego home—and why you should, too.

What sets San Diego apart

San Diego is a top three life sciences market.
San Diego’s competitive advantages make it a world-class innovation hub—100 research institutions, 2,000 companies, 57,000 jobs, $1 billion in 2025 NIH and NSF funding, and a legacy as a global R&D powerhouse, bolstered by homegrown companies like Illumina, La Jolla Labs, and Daré Bioscience.

San Diego’s proximity to Mexico provides dynamic binational business opportunities.
Just 20 minutes south of downtown San Diego, innovative businesses can easily access additional skilled talent and Baja California’s manufacturing expertise in medical devices, manufacturing, and software. The Cali Baja region offers R&D and advanced manufacturing at scale in a single time zone.

Global players are already betting big on San Diego science.
From Novartis’ $1.1 billion research facility to Lilly’s new Gateway Lab to acquisitions and partnerships worth billions, pharma heavyweights in key international markets are investing in the future of discovery. Since 2015, San Diego’s life sciences industry has captured 72% of all FDI into the region, and the region captured $3.6 billion in VC in 2025 alone.

Interested in investing or locating in San Diego?

EDC and WTCSD work directly with companies—free of charge—to help them grow in San Diego. Contact our team today:

Becca Schulert
Becca Schulert

Manager, Economic Development

Javier De Leon
Javier De Leon

Sr. Manager, World Trade Center San Diego

Learn HOW WE CAN HELP

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:

More FROM EDC’s research bureau

More on inclusive growth

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

Harnessing the power of cross-border manufacturing in San Diego

By Lindsey Silvia ,

This blog post is a part of a larger series in celebration of Manufacturing Month, sharing key trends from our report on San Diego’s Manufacturing sector.

READ THE NEW REPORT

Cross-border manufacturing in San Diego has significant untapped potential. With five ports of entry, the Baja California region is one of the most accessible and lucrative for international expansion. While some companies are just beginning to explore it, many of San Diego’s most successful, innovative brands have already established a manufacturing presence in Tijuana and surrounding cities.

According to Tijuana EDC, Baja California already has 960 manufacturing facilities with plenty of room for growth. The manufacturing industry represents 65 percent of Tijuana’s GDP. Just 30 minutes to the south, manufacturing in Mexico offers cost effective products without compromising quality, backed by a steady supply of highly skilled labor.

Here are three common myths about cross-border manufacturing and how San Diego companies have been able to flourish in the binational region.

    1. The myth: Lack of infrastructure makes it more expensive to manufacture in Mexico than advertised.

      The region has made significant strides with modernizing infrastructure including upgrades to many points of entry. For example, major investments in the Otay Mesa II Port of Entry, funded primarily by the US, are set to reduce traffic congestion by up to 50 percent. This improvement will further enhance the cost efficiency of cross-border trade and manufacturing operations, making it even more attractive for San Diego companies to consider these opportunities.

      Taylor Guitars is a prime example of a San Diego company benefiting from cross-border manufacturing. Its operations in Tecate are thriving due to cultural alignment and strategic advantages. A business leader at Taylor Guitars highlights the key benefits and programs it utilizes, such as the IMMEX program, which allows temporary importation of goods that are transformed or repaired and then exported.

      “Manufacturing in both San Diego and Tecate gives Taylor Guitars a competitive advantage. Our Tecate operation allows us to produce quality guitars at accessible price points, reaching a broader audience, while our San Diego facility focuses on more specialized, premium instruments. Together, they enable us to deliver a diverse range of products without compromising on craftsmanship or innovation.”

      – Ed Granero, VP of Product Development, Taylor Guitars

    1. The myth: Mexico doesn’t offer high-quality manufacturing. 

      Many manufacturers in Tijuana work with leading global companies in high tech industries including Medical Devices, Electronics, Automotive and Aerospace. These companies require high quality and rigorous quality control measures to ensure compliance with international standards. For instance, ResMed operates a manufacturing facility in Tijuana, producing advanced medical devices like CPAP machines with stringent quality assurance protocols. Similarly, other high-tech firms like Qualcomm and Medtronic trust local partners to deliver precision-engineered products that comply with their exacting requirements.

    1. The myth: There isn’t a strong talent pipeline present in Mexico.

      The presence of high-quality manufacturing and modernized infrastructure is complemented by access to a highly capable talent pool, supported by top universities in Tijuana and advanced manufacturing capabilities in the region.

      Tijuana provides a hub for a strong pool of high-skilled workers. Baja California is home to many world class universities, 37 of which are in Tijuana. Among these include top-rated schools University of Tijuana and the Tijuana Institute of Technology, which contribute to more than 3,700 annual degrees in STEM fields. Many graduates choose to remain in the region, where they can live at a lower cost and help drive the local economic growth.

Cross-border manufacturing offers San Diego companies a powerful combination of cost efficiency, advanced capabilities, and access to world class talent. By leveraging the benefits of San Diego’s proximity and relationship with Baja California, manufacturing companies not only reduce their costs but also enhance production capabilities and increase competitiveness. As infrastructure investments continue to improve cross-border logistics, and with the support of programs like IMMEX, the future looks bright for San Diego’s cross-border manufacturing landscape.

Resources to explore cross-border trade opportunities

  • World Trade Center San Diego and its Export Specialty Center works directly with companies—free of charge—to help them expand internationally and grow in San Diego.
  • Tijuana EDC provides specialized business consulting and logistics services for companies that are considering choosing contract manufacturing in Mexico to grow.

This blog post is a part of a larger series in celebration of Manufacturing Month. Click here to look at our previous deep dive on San Diego’s strong manufacturing talent pool. To read our full analytical manufacturing report click here.

Building a bright future: The faces of San Diego Manufacturing

By Lindsey Silvia ,

This blog post is a part of a larger series in celebration of Manufacturing Month, sharing key trends from our report on San Diego’s Manufacturing sector.

READ THE full REPORT

San Diego’s Manufacturing sector is not just a cornerstone of the local economy; it also provides unique and well-paying career opportunities for San Diegans with great prospects for advancement. With an average wage of $103,000 per year, manufacturing jobs in San Diego pay 31 percent more than non-manufacturing jobs in the region on average. The industry supports approximately 100,000 jobs across a diverse array of industries including Craft Brewing, Life Sciences, Aerospace, and Tech as well as emerging fields like Cleantech.

Talent is a key driver for many manufacturers looking to setup or expand in the region. Companies are actively seeking local graduates, offering summer internships, and creating opportunities for individuals from historically underrepresented communities. This proactive approach to talent acquisition ensures that manufacturers in San Diego continue to thrive and innovate—and supports real San Diegans in building meaningful careers.

EDC sat down with a few local manufacturing experts to hear their experiences and insights. The goal is to showcase the diverse range of individuals and companies within the manufacturing sector and highlight the opportunities available to those interested in pursuing a career in this industry.

Employee spotlights: Real stories, real success

ASML: Working at the cutting edge of technology

Austin graduated with a degree in materials physics from UC San Diego in 2021 and holds a master’s in engineering from UC Irvine. After his stint in Orange County, he was determined to build a life in San Diego and returned to the area seeking a career in manufacturing. Although his education opened doors at top companies nationwide, Austin knew San Diego was home and was determined to carve his path here. With experience in research, he pivoted to manufacturing where he could see the direct impact of his work. Now working at local tech giant ASML on the New Product Introduction team, he integrates new products into the manufacturing process and ensures they meet customer expectations. Reflecting on his journey, Austin emphasized the importance of internships for gaining industry exposure and building professional networks. His connection to the San Diego community, formed during his undergraduate studies, has motivated him to pursue a career in the region. Austin is optimistic about the future of the semiconductor industry, noting its growth and increasing demand for chips driven by AI, and computing and electric vehicles.

TriLink BioTechnologies: Cultivating a culture of quality and inclusion

Jennifer is a dedicated member of the TriLink BioTechnologies team, part of the Maravai LifeSciences parent company, which helps other businesses develop and manufacture products vital for understanding genetic processes and developing biotechnological applications like vaccines and gene therapies. A graduate of UC San Diego, Jennifer started her career as a lab assistant in 2001, and over the years has taken on multiple roles leading to her current role as Associate Director for Quality Product Lifestyle, where she is dedicated to enhancing quality control within the company. Jennifer is passionate about mentoring and advancing female leadership in the Life Sciences industry, aiming to elevate women in executive roles. She values San Diego’s collaborative Life Sciences ecosystem, where companies share knowledge to develop life-saving treatments.

Dr. Bronner’s: Growing up in the culture of care

Blanca has navigated an inspiring career since joining Dr. Bronner’s in 2007. Joining the Vista-based company directly out of high school, she found her niche in manufacturing, driven by passion for the products she helps create. Over the years, Blanca has ascended through various roles, culminating in her current position as Director of Production. She cherishes the culture at Dr. Bronner’s, which prioritizes employee care and work-life balance, and she appreciates the company’s approach to challenges like the high cost of living in San Diego. Blanca’s experience as a woman in a traditionally male dominated industry has equipped her with resilience and determination, and inspired her advocacy for other women. Her passion for San Diego’s vibrant, inclusive culture mirrors her dedication to shaping manufacturing in the region.

Finding skilled talent for your manufacturing facilities

San Diego’s manufacturing sector is not only an economic force but it’s also a community of innovators and skilled technicians where professionals like Austin, Jennifer, and Blanca have built rewarding careers with opportunities for advancement. More than offering a job, this industry can provide fulfilment and a well-balanced and thriving lifestyle in the San Diego region.

If you’re a manufacturer looking for skilled talent like those profiled above, leverage these recruiting tools:

  • Develop an apprenticeship program: In partnership with Apprenti, EDC can assist companies with establishing apprenticeship programs in non-traditional fields like advanced manufacturing, information technology, cybersecurity, and more.
  • Connect with Verified Programs: To strengthen your company’s talent pipeline, EDC can connect employers with local post-secondary training programs that have been vetted and recognized for strong efforts to teach relevant curriculum and serve a diverse student body.

What’s next?

This blog post is a part of a larger series in celebration of Manufacturing Month. Click here to look at our previous deep dive on San Diego’s unique manufacturing strengths and opportunities. To read our full analytical manufacturing report click here.

Manufacturing in San Diego: More vital than you think

By Lindsey Silvia and Emily Irion,

This blog post is a part of a larger series in celebration of Manufacturing Month, sharing key trends from our report on San Diego’s Manufacturing sector.

READ THE full REPORT

San Diego is known for its sunny coastlines, vibrant tourism, and thriving biotech industry, but its Manufacturing sector is equally as diverse and dynamic. Manufacturing in the region is done using the most cutting-edge technology as well as traditional craftsmanship. This diversity reflects the region’s ability to adapt and evolve while creating a robust economic landscape with opportunities across a variety of industries.

The impact of the Manufacturing sector on San Diego’s economy may go unnoticed, but it’s a crucial contributor to the region, generating more than $47 billion annually when accounting for direct, indirect, and induced effects on the economy.

By the Numbers

 

With significant job concentration in Life Sciences, Technology, and Aerospace and Navigation technologies industries, manufacturing in San Diego is both sophisticated and advanced.

Why San Diego stands out

Three key factors set San Diego apart as a Manufacturing hub: talent, innovation, and proximity to key customers. See how local companies are taking advantage of all three below:

    1. Staying close to key customer base

      Stone Brewing is a unique story and part of a larger narrative of the region’s diverse Manufacturing landscape. A homegrown brewery, Stone Brewing was founded in San Diego County in 1996, playing a key role in establishing the region as a thriving craft beer hub. Its strategic location keeps it close to target customers and suppliers, while the vibrant brewing community attracts top talent. Now the largest craft brewery in California and the ninth-largest overall in the U.S., Stone continues to expand, reinforcing its presence in San Diego. Acquired by Japanese brewery Sapporo in 2022, Stone invested $20 million to expand its Escondido brewery. Now branded Sapporo-Stone Brewing, the brewer makes Sapporo’s beers in addition to its own, doubling output and expanding the Japanese brewery’s reach into the U.S. market. Its San Diego presence remains a strategic asset, benefiting from the region’s collaborative brewing community and loyal customer base.

    1. A hub for cutting-edge ideas

      San Diego consistently ranks in the top three Life Sciences markets in the U.S., often recognized as a hub for research and development (R&D). However, the region’s strength in manufacturing frequently goes overlooked.

      Founded in San Diego in 2017 by former Illumina leadership, Element Biosciences develops genetic analysis tools and human genome sequencing, reflecting the region’s cutting-edge genomics work. One of the key advantages to San Diego is the robust biotech ecosystem, specifically within Genomics, which fosters continuous innovation and cutting-edge ideas, creating an environment where a startup like Element can thrive. Element’s rapid growth in under seven years is partly due to the decision to continue manufacturing key components in San Diego, driven by proximity to critical R&D activities, access to top talent and reliable industry partners, and collaboration with local universities and industry giants. Like many Life Sciences companies in the region, Element stands out as both an R&D innovator and precision manufacturer, solidifying its role in San Diego’s innovation Manufacturing landscape.

    1. Driving San Diego’s next innovation cluster

      When people think of Manufacturing, they often picture large-scale assembly lines. In San Diego, smaller-scale Manufacturing with a greater emphasis on quality and precision is the region’s sweet spot.

      Aptera launched in 2019 out of co-CEO Steve Fambro’s garage. The solar electric vehicle company embodies the region’s burgeoning Cleantech hub, utilizing a micro-factory model. Aptera opts for smaller-scale operations and strategically selects markets close to its customer base. California’s environmental goals made the state an ideal fit for its innovative product. San Diego was also a natural choice for its founders, who had prior experience launching companies in the region.

      Beyond being a key market for customers, San Diego’s innovation ecosystem continues to provide access to top-tier talent for high-tech, cutting-edge roles. It also offers strategic supply chain advantages due to proximity to Los Angeles and, more importantly, to Tijuana, Mexico.

Supporting the ecosystem

Manufacturing in San Diego is a vital sector that supports more than 100,000 jobs, contributes significantly to local GDP, and fosters a thriving environment for innovation and growth. By focusing on nurturing talent, fueling innovation, and leveraging its strategic location, San Diego is well-positioned to sustain and grow its manufacturing expertise.

Local industry resources:

To read our full analytical manufacturing report click here.

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