NEW: San Diego Business Hub takes small businesses online, boosts resilience

Public-private partnership offering subsidized digital tools for small, diverse businesses

Today, in partnership with local tech company GoSite, EDC launched the San Diego Business Hub, which in its first phase will offer up to 100 small, service-based businesses a full suite of digital tools at no cost. Made possible by grants from The San Diego Foundation and Union Bank, SDbizhub.com is accepting applications from businesses most impacted by the COVID-19 pandemic—women, minorities, veterans and other economically under-resourced groups.

The pandemic accelerated the digital transformation of companies of all sizes and industries by as much as five years in a 12-month period, with many struggling to keep up. Since the start of 2020, the region has seen nearly 40 percent of its small businesses close. Many of these closures can be attributed to businesses’ inability to quickly pivot online, depriving them of access to customers and key markets.

We also know those hardest hit by the pandemic have been communities of color who are being left further behind in San Diego’s economic recovery.

The proof is in the numbers:

  • Despite making up just 30 percent of the local population, Hispanic and Latinx communities accounted for well over half of all regional COVID-19 cases and two in five related deaths.
  • Additionally, people of color are overrepresented in local industries that were hardest hit during the pandemic (e.g. Hispanics make up 39.8 percent of Hospitality staff and 41.8 percent of Retail staff). As a result, unemployment and loss of income have been concentrated within Black and Brown communities.

The cohort of 100 service-based businesses (e.g. personal care services, transportation, food service, home repair, small contractors, etc.) will receive GoSite’s web-based tools—which payment and invoicing, bookings, review management, customer communications, template websites and more—free of charge for one year.

Thoughts from local leaders:

“Small businesses employ the majority of San Diegans, and it’s essential we invest in their growth, recovery and resiliency if we are going to get this recovery right. This partnership with GoSite allows us to do just that: Provide the digital tools small businesses need to weather future economic downturns,” said Nikia Clarke, Vice President of Economic Development, EDC.

“This partnership is a prime example of how San Diego public, private and civic sectors rally together to solve hard problems. Access to these digital tools will help our region achieve a more equitable recovery and help small businesses struggling today be more resilient as San Diego gets back on track and back to work,” said San Diego Mayor Todd Gloria.

“Small businesses face great challenges, made worse by the COVID-19 pandemic. GoSite’s mission is to help small businesses adapt and succeed, with technology in hand for them to easily communicate with customers, manage online bookings, accept online payments, generate invoices and drive reviews—all in one place,” said Alex Goode, CEO of GoSite. “GoSite is proud to partner with EDC to create the SD Biz Hub and deliver innovative technology resources to San Diego, the place we call headquarters and home.”

“To build long-term economic resilience, San Diego’s small businesses must have resources to sustain their connections to customers and markets,”  shared Mark Stuart, President & CEO of The San Diego Foundation. “This is an inspiring example of government, philanthropy and nonprofit sectors coming together to help the small businesses in our neighborhoods survive, recover and grow.”

FAQ and applications are now live, and will remain open until the cohort is full.

SDbizhub.com

Study release: North County’s manufacturing industry poised for recovery, growth

A marketing initiative of EDC and the five cities along the 78 Corridor, Innovate78 serves to spotlight the businesses and innovators that make our region competitive.

Today, Innovate78 released a new report, The Future of Manufacturing in North County, which finds the industry will continue to prove its resiliency and positive economic impact in the region—even amid trends in automation, globalization and COVID-19 ramifications. According to the study, manufacturing accounts for $18 billion annually (or seven percent) of the area’s economy, and while many of the 813 local manufacturing firms were impacted by coronavirus, 58 percent of survey respondents are looking to increase their space.  

The study analyzes trends in employment, which is concentrated in high-value goods like computer and electronic product manufacturing. This sub-industry specifically accounts for nearly one-third of all manufacturing jobs in North County, with 12,746 employees of the total 40,151 jobs reported in the study. This number is expected to grow nearly six percent in the next five years—continuing to position manufacturing as a key driver of North County’s economy.  

Flux Power, a company represented in the study that manufactures advanced lithium-ion battery for industrial and commercial equipment, increased both their staff and revenue in 2020 amid the pandemic. With more than 100 employees, the Vista-based company is now looking to increase both its production and nonproduction space within the region.  

“The need to be efficient, safe and environmentally-conscious is high, especially now, as businesses plan for post-COVID-19 recovery,” said Chuck Scheiwe, chief financial officer of Flux Power. “Manufacturing products that empower others to improve their day-to-day efficiencies will be critical in our industry and region’s future growth, and we’re proud to be part of it.”  

The study reports that during COVID-19, North County manufacturing companies were undoubtedly impacted by the pandemic, with 43 percent of respondents reporting a loss of revenue in 2020. Looking at net growth, however, there was a reported one percent increase in manufacturing jobs, with 186 manufacturing jobs lost and 956 gained as noted by respondents. Most job losses were in medical manufacturing, while most job gains were in machinery manufacturing.  

One company that reported job gains is Quik-Pak, an Escondido based computer and electronic manufacturing company. In addition to anticipating upscaling facilities in the future, during COVID-19 Quik-Pak hired staff and reported increased revenue.  

“The strength of the manufacturing industry in North County San Diego is one of the reasons we wanted to expand here,” said Rosie Medina, vice president sales and marketing of Quik-Pak. “The talent pool is rich, and there is space to grow. We appreciate that not every region has both of these critical components that are needed for our industry to thrive.”    

Automation, globalization and COVID-19 are obvious pressures affecting North County’s manufacturing industry. However, as Quik-Pak and Flux Power note, the need for innovation and talent remain strong. There are 9,804 manufacturing jobs with a higher-than-average risk of automation—that’s nearly 24 percent of all North County manufacturing jobs. Investment in upskilling and re-training will be needed to help move these workers into other quality jobs over time.  

From craft beer to surfboards, to life-changing medical devices and technology services, manufacturing has long been a pillar of the region’s economy, with impacts spanning beyond our community,” said Jordan Latchford, research manager of San Diego Regional EDC, the study author and managing entity of Innovate78. “This study confirms the manufacturing industry in North County is poised for a strong recovery, and will remain a significant economic driver for the San Diego region.”  

read the full report

LEARN MORE ABOUT SAN DIEGO’S MANUFACTURING INDUSTRY

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Release: EDC study finds one in four local firms engaged in AI

EDC study quantifies impact of artificial intelligence, machine learning

San Diego industries that are embracing artificial intelligence (AI) support an estimated 175,680 jobs and $33.3 billion in annual gross regional product, according to a study released today by San Diego Regional EDC. Underwritten by Booz Allen Hamilton, “Measuring the Future: AI and San Diego’s Economy” is the first in a series of reports that will identify key industries and clusters where AI and machine learning (ML) have been implemented, and ultimately quantify the impacts of these technologies on San Diego’s regional economy.

The study—available at SanDiegoAI.org—includes a historic timeline, cluster map, and cross-references AI patent language with job postings to anticipate the future impacts of AI and ML on the job market.

AI and ML technologies have swiftly infiltrated most every facet of our lives as computing power and speed increase. Self-driving cars, algorithmic trading, customer experience bots and AI assistants like Siri and Alexa have become commonplace tools used by people at home and at work.

“The proliferation of AI and ML technologies promises to be a transformative force for businesses worldwide—and like in many innovative industries—San Diego is at the forefront. With this report, the EDC Research Bureau helps paint a picture of the impact of AI, proving its potential to grow jobs and even help narrow gender and racial wage gaps,” said Mark Cafferty, president and CEO, San Diego Regional EDC.

Contrary to popular belief and despite current economic conditions, three in five AI developers (62 percent) expect to see the number of employees specifically engaged in AI-related work grow over the next 12 months. This means locally based AI talent could help meet growing demand across the U.S. as employers try to hire workers in earnest that possess skills readily available from San Diego AI. Notably, job postings data in Sun Belt metros like San Antonio, Austin, Dallas, Tampa and Miami show that employers are struggling to fill positions requiring facial and speech recognition skills—key specializations of AI developers in San Diego. Meanwhile, predictive and forecasting AI could help alleviate hiring difficulties among firms in major economic and financial centers, including New York, Philadelphia, and Chicago. More than eight in 10 AI developers in San Diego specialize in machine or deep learning technologies, a fundamental building block for predictive AI.

Large local companies in San Diego like Booz Allen Hamilton, Northrop Grumman Corporation, ResMed and growing startups and small businesses like Lytx, Lockton, Traits AI and Semantic AI are helping to lead the charge in AI—enabling people and firms to operate more quickly and efficiently. Specifically, the use of AI or ML technologies largely supports four areas of firm activity: the development of new products and services, improved efficiency and productivity, reduced costs and an increase in business revenues.

“Booz Allen Hamilton is at the forefront of AI adoption, development and implementation, and we believe that San Diego’s companies can leverage this technology to meet their missions, attract talent and fuel economic activity,” said Joe Rohner, a Booz Allen director and leader in the firm’s analytics practice and AI services business. “We are energized that EDC’s report findings show local respondents see AI as truly helping the San Diego economy by creating more jobs—not eliminating them. People are essential to the ethical application of AI, and this technology will enable organizations and their workforce to increase productivity, quality and efficiency—in San Diego and globally.”

Despite AI’s productivity-boosting, job-creating power, a number of challenges remain. Top of mind for most local employers is the inability to source qualified talent. However, COVID-19 and the subsequent increase in remote work has expanded the talent pool for San Diego County’s AI and ML employers.

“Rapidly developing machine learning/artificial intelligence technology that enhances the work our men and women in uniform do every day is critical to the future of defense. Northrop Grumman is well positioned to continue to grow the local talent pipeline through our San Diego-based education programs so businesses in our community have the right skill sets available to support this important and rapidly evolving field,” said Alfredo Ramirez, Vice President of Northrop Grumman’s San Diego Autonomous Design Center of Excellence.

OTHER KEY FINDINGS

  • Average salary in AI/ML-concentrated industries is $127,960—3.9 percent above the national average for these industries and more than 70 percent above San Diego’s average worker salary.
  • For every 1,000 jobs gained in this cluster, another 1,400 jobs are created in other industries.
  • Survey proves AI adoption is creating job opportunities in the region:
    • 66 percent of firms agreed that the use of AI and ML has created new job opportunities
    • 54 percent of firms agree that AI and ML are increasing the need for more workers at their business
  • 31 percent of jobs in AI-concentrated fields require only a high school diploma and pay an average of $22.42 per hour
  • The boost to productivity and efficiency from AI and ML should lift wages in traditional or population-serving industries, which employ a larger share of women and non-white workers than other sectors, and could therefore potentially reduce gender and racial wage gaps as these technologies are adopted.

The report was produced by San Diego Regional EDC, underwritten by Booz Allen Hamilton, and sponsored by Northrop Grumman Corporation, ResMed, Lytx and Lockton.

Read the full study at SanDiegoAI.org

For more research from EDC, click here.

Applications now open: Advancing San Diego to provide 100 small companies & startups with fully-funded internships for STEM students

Employers select seven ‘Preferred Providers’ to supply qualified software engineering talent for first internship cohort

San Diego – As a way to broaden and diversify San Diego’s talent pipeline, Advancing San Diego – a program led by San Diego Regional EDC – will provide up to 100 San Diego-based companies with fully-funded internships.  Advancing San Diego internships are available to companies with fewer than 100 employees looking for better access to STEM talent to develop inclusive opportunities for all students. Companies can apply here.

“If we want to grow our regional economy, we must remove barriers that small companies face in accessing qualified workers,” said Nikia Clarke, vice president of economic development at San Diego Regional EDC. “Today, 73% of San Diego’s job growth is going to come from small businesses, yet our research has shown that many of these companies don’t have the time or money to invest in recruiting skilled-talent. We’ve flipped the traditional workforce development model on its head:  employers tell us the skills they need, we identify the educational programs – Preferred Providers – that do the best job providing those skills , and then we use our talent development fund to create pathways for San Diegans into quality jobs in the companies that need them most.”

The Advancing San Diego program is helping the region achieve its inclusive growth goals. To ensure future competitiveness, San Diego must double the production of local workers with in-demand degrees or credentials by 2030. Achieving this goal requires collaboration between public and private sectors – educators and employers – as well as a focus on equity and inclusion. Better alignment of industry and education systems means that institutions can more effectively prepare San Diegans from all backgrounds for high-demand jobs and employers can establish and expand recruitment relationships with locally-serving institutions.

In its first round of internships, Advancing San Diego will place software engineering talent who will soon be followed by cohorts of interns with backgrounds in general engineering, and marketing/operations.

Applying for Advancing San Diego: How it works

Advancing San Diego will fully subsidize the cost of interns for more than 100 small companies in San Diego, with priority for companies in STEM industries that are poised for high growth in coming years. Once a company certifies it meets eligibility requirements, the company will ‘apply’ to Advancing San Diego.

Advancing San Diego has also hired a staffing partner that will coordinate interviews, scheduling, and placement, and who will serve as a resource for the interns throughout their duration of the internship.

In addition to providing each intern with a wage of $16.50 an hour, each intern will be eligible for up to $500 to be used on miscellaneous expenses including transportation to the internship site, wardrobe, training services and more.


As part of the first software engineering cohort, Advancing San Diego interns will be sourced from Preferred Providers – programs recognized by employers for providing the skills and training necessary for students to pursue jobs or internships in software engineering positions. Students from Preferred Provider programs will come from diverse backgrounds and will be at varying stages of their education journey. Each Preferred Provider was evaluated against a skills-based criteria for entry-level software engineers that was created by employers.

Software Engineering Preferred Providers:

  1. CSU San Marcos – Computer Science Department
  2. Mesa College – Computer and Information Science Department
  3. MiraCosta College – Computer Science Department
  4. San Diego Code School – Full Stack JS Apprenticeship Program
  5. San Diego State University – Computer Science Department
  6. UC San Diego – Jacobs School of Engineering
  7. UC San Diego Extension

Advancing San Diego will facilitate the placement of students from these programs into jobs or internships with selected companies.

Understanding Advancing San Diego

In 2019, San Diego was one of five cities to receive a $3 million investment as part of JPMorgan Chase’s AdvancingCities Challenge, an initiative to drive inclusive growth and create greater economic opportunity across the U.S.

“JPMorgan Chase firmly believes in San Diego’s legacy of collaboration. That’s why we’ve invested in Advancing San Diego knowing that our community partners will work closely together with small businesses and higher education to ensure San Diego’s future competitiveness,” said Aaron Ryan, San Diego regional leader for middle market banking at JPMorgan Chase. “By developing advanced workforce skills and providing pathways to the jobs of the future, San Diego’s brightest citizens and businesses will be equipped for success for years to come.”

Advancing San Diego is a collaborative effort to address skilled talent shortages and increase diversity in high-growth, high demand jobs. This effort aligns economic development, workforce development, educational systems and industry around a set of common goals: increase completions of degrees and credentials for high-demand jobs and provide pathways to placements in those jobs for San Diegans. Advancing San Diego collects and communicates employer’s talent needs, identifies education programs providing top-quality training and covers the cost of internships for students of those programs in small companies.

To learn more about Advancing San Diego, visit advancingSD.org.
To apply to host a fully-funded software engineering intern, apply here.

About San Diego Regional EDC

San Diego Regional EDC mobilizes business, government and civic leaders around an inclusive economic development strategy in order to connect data to decision making, maximize regional prosperity, enhance global competitiveness, and position San Diego effectively for investment and talent. sandiegobusiness.org

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Media Contact
Sarah Lubeck, San Diego Regional EDC
sl@sandiegobusiness.org | 619.361.1437

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