Tag: research product

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

EXPLORE MORE SAN DIEGO DATA

EDC analysis: Midway Rising set to generate $285M local economic impact

By San Diego Regional EDC,

New analysis quantifies jobs, housing, other economic impacts for forthcoming Sports Arena redevelopment

A new analysis commissioned by Midway Rising and authored by San Diego Regional Economic Development Corporation (EDC) quantifies the projected economic and fiscal impacts of the Midway Rising redevelopment, which would revitalize nearly 50 acres of City-owned land in San Diego’s Midway/Sports Arena neighborhood.

With the addition of thousands of market-rate and designated affordable housing units, an entertainment district centered around a 16,000-seat facility, and a highly-amenitized urban park, EDC estimates Midway Rising will have a $285 million direct annual economic impact, equivalent to hosting another San Diego Comic-Con.

“This project is more than just a redevelopment—it’s a long-term investment in San Diego’s future,” said Mark Cafferty, President & CEO of San Diego Regional EDC. “As our region and state grapple with a dire affordability crisis, Midway Rising promises meaningful and accessible housing options, as well as a world-class tourism and entertainment hub that will add jobs. This is exactly the type of bold, private economic investment San Diego demands.”

Midway Rising’s more than $3.9 billion redevelopment will remake the nearly 60-year-old, City-owned Sports Arena facility and surrounding parking lot in the Midway neighborhood, and includes 4,250 new homes, a new 16,000-seat arena, and 130,000 square feet of retail space.

The EDC analysis also revealed other economic impacts to the City and neighborhood, including:

  • 172% increase in housing stock in the Midway neighborhood.
  • The building of 2,000 deed-restricted affordable homes below 80 percent Area Median Income, which is the single-largest affordable housing project in California’s history.
  • The staffing of 3,100 permanent jobs paying 12 percent higher average wages relative to the site’s current retail mix.
  • A doubling of arena visitor spending from $160 million to $344 million annually.
  • $1.4 million in new tax revenues to the City and $3.9 million in new tax revenues to the County each year.
  • Participation in the City’s Business Cooperation Program, which reallocates the full 1 percent sales and use tax directly to the City’s General Fund.
  • Throughout the 10-year phased build-out, total construction activity is estimated to generate $3 billion in gross regional product and $94 million in tax revenues within the City of San Diego, while supporting the creation of 21,900 temporary construction jobs.

Selected by the City in late 2022, the Midway Rising team is made up of affordable housing developer Chelsea Investment Corporation, sports venue developer and operator Legends, market-rate housing developer Zephyr, and The Kroenke Group, a real estate investment company led by billionaire and professional sports team owner Stan Kroenke.

Midway Rising is anticipated to break ground in late 2026 pending City Council approval later this year.

Read the EDC analysis

The EDC assessment was commissioned by Midway Rising in Summer 2025. EDC currently does not endorse specific ballot measures or candidates. From time to time, we provide objective research on the economic impact of specific measures or proposals such as this to better inform the public and policymakers on a project’s potential economic impact. If you are interested in working with EDC on customizable research, contact us.

EDC report: Annual Inclusive Growth Progress

By San Diego Regional EDC,

Report: Gaps in accessibility challenge the region’s goals

Today, San Diego Regional EDC released its Inclusive Growth Progress Report, using the most up to date and available data (2023). With new progress and bold objectives set around increasing the number of quality jobs, skilled talent, and thriving households critical to the region’s competitiveness, the report measures San Diego’s growth and future outlook, and spotlights the greatest threats to prosperity

progress.incLUSIVesd.org

Making the business case for inclusion, EDC releases this annual report to track progress toward the region’s 2030 goals: 50,000 new quality jobs* in small businesses; 20,000 skilled workers per year; and 75,000 newly thriving households**.

Since its launch in 2017, the initiative has rallied public commitments from County, City, academic, and private sector leaders who are leveraging the Inclusive Growth framework to inform their priorities, tactics, and resource allocation. While much about the economy remains uncertain and inclusion is challenged at the national level, intentional and consistent efforts by a diverse set of regional stakeholders will be key to achieving these goals.

THE STORY BEHIND THE DATA

Halfway through the decade, the San Diego region continues to make progress towards its 2030 goals with increases in quality jobs, post-secondary education completions, and median household incomes in communities of color. Nevertheless, gaps in accessibility continue to challenge the region’s competitiveness.

In terms of quality jobs, San Diego has made immense progress towards the 2030 goal and is even projected to exceed it. However, while quality job numbers have increased, small businesses are struggling with a stagnant pace in job growth, talent acquisition, and staff retention. These challenges further the gap between small and large businesses and threaten small businesses’ ability to compete.

With many small businesses considering leaving the region due to funding and staffing challenges, it is vital that these firms have access to new markets. San Diego anchor institutions can make an immense impact by shifting just one percent of existing procurement spend to small, local, and diverse businesses.

San Diego’s innovation economy has positioned the region as a global hub for breakthrough scientific research and life-changing technological advancements. Yet, our talent shortage poses a threat to San Diego’s competitiveness and talent goal. A key issue continues to be accessibility for low-income students who make up the workforce of tomorrow but are underrepresented in today’s workforce. While Hispanic and Latino students make up almost half of San Diego’s K-12 students, only 20 percent are currently represented in the innovation economy workforce.

Furthermore, less than 40 percent of Black and Latino students from the graduating class of 2023 were considered college-ready upon graduation, which translates into less students opting into post-secondary education. This lack of preparation, coupled with the increasing requirement of a bachelor’s degree for entry level jobs, is exacerbating the talent crisis in the innovation economy. If San Diego is going to meet workforce needs and the talent goal by 2030, greater efforts must be made to enable access and opportunity for local, young, and diverse students.

With rising housing, transportation, and grocery costs, San Diego remains one of the most expensive metros in the country. While median household incomes have seen significant growth—especially in Black and Latino households—they still struggle to keep pace with rising costs. There is also a racial disparity in San Diego’s ratio of housing wealth to population share. For example, Latino households represent 27.4 percent of the population but hold only 17 percent of the region’s housing wealth.

While not at pre-pandemic numbers yet, San Diego has added 49,916 newly thriving households as of 2023, notable progress in the face of increasing affordability pressure. In order to sustain progress, housing options must be made available at more affordable price points, and housing permit activity needs to be accelerated to meet regional goals—especially for affordable and middle-income units.

Join the movement

Learn more and get involved with EDC:

Read the full report here, and all previous updates at progress.inclusiveSD.org. 

The initiative is sponsored by Bank of America, Burnham Center for Community Advancement, County of San Diego, JPMorgan Chase & Co., Prebys Foundation, SDG&E, Southwest Airlines, and TOOTRiS.

more at inclusiveSD.org

*Quality job = $23.88 per hour wage + healthcare benefits.

**Thriving household = total income covers cost of living for renter- or owner-occupied households, at $77K and $124K respectively.

Study: San Diego’s $47B Manufacturing sector supports 121K jobs, a third of which are in small businesses

By EDC Research Bureau,

This week, San Diego Regional EDC released “Manufacturing in San Diego: Local Impact, Global Reach,” which quantifies the economic impact of the region’s Manufacturing sector and explores the firms, innovation clusters, and talent building and creating the goods and technologies of the future.

While federal priorities shift to reduce dependence on foreign supply chains, prioritizing the resilience and competitiveness of San Diego’s Manufacturing sector is key. In fact, over the last five years local manufacturing firm growth has outpaced that of California and the U.S. at large. The Manufacturing sector not only creates jobs and fosters innovation across key industries in our binational region, but it ensures a stable supply of essential goods and technologies.

“As is always our mission, this report aims to provide actionable insight for regional decision makers with data and guidance needed to preserve and enhance San Diego’s competitiveness in the global economy. Manufacturing is core to San Diego’s innovation identity, offering onramps to quality jobs, and will need coordinated support to sustain growth,” said Eduardo Velasquez, Sr. Director of Research & Economic Development at San Diego Regional EDC, the report’s author.

Released as part of National Manufacturing Month, the interactive web report includes a deep dive on the $47 billion Manufacturing sector, and includes company profiles, a metro-by-metro comparison, and a set of recommendations for better supporting manufacturers in a costly and highly regulated environment.

KEY report FINDINGS

  • San Diego’s Manufacturing sector is a significant part of the regional economy. There are 121,027 jobs supported by 4,429 establishments tied to the Manufacturing sector. This means that manufacturing employment accounts for nearly one in 10 private sector jobs across the region. Altogether, this amounts to a $47 billion regional economic impact annually.
  • Manufacturing jobs are high-paying and increasingly accessible. Average annual wages are more than $103,000, which is 31 percent higher than the region’s average. The proportion of manufacturing jobs not requiring higher education continues to rise, opening opportunities to a wider range of candidates.
  • Growth in the sector is driven by small businesses. More than one-third of the manufacturing workforce is employed by a small business, with fewer than 100 employees. Nearly nine in 10 manufacturers employ fewer than 50 employees.
  • Manufacturing is tied to innovation. San Diego manufacturing encompasses industry verticals from Consumer Goods and Craft Beer to Life Sciences, Technology, and Aerospace. Innovation-related industries make up 46 percent of all manufacturing employment in the region.
  • High cost of living and operational challenges hinder the sector’s growth. Success stems from companies finding unique pathways to grow and expand. However, a high cost of living, limited space, and higher operational costs in San Diego pose challenges for attracting and retaining manufacturers and their workers.

Manufacturing in San Diego is made up of world-class brands and consumer goods like Taylor Guitars, Dr. Bronner’s soaps, and Stone Brewing’s IPAs. Yet San Diego’s Manufacturing sector also has a strong tie to the region’s innovation ecosystem—producing everything from satellite navigation equipment to genome sequencers. In fact, San Diego’s innovation manufacturing employment concentration is more than double the national average.

“San Diego brings something special beyond biotech innovation—it’s the collaborative spirit and vibrant energy here that truly enhance what we create,” said David Arida, COO at Biolinq, a San Diego startup focused on developing biowearable sensor devices.

However, the region’s high cost of living, expensive and hard-to-come-by real estate, and higher operational costs pose challenges for attracting and retaining talent and manufactures alike. Even more, San Diego ranks low in ease of doing business compared to competitor regions, which can impact company decisions on where to locate or expand operations.

“As EDC’s report demonstrates, it is critical that our region commits to cultivating talent and catalyzing innovation, as well as investing in critical infrastructure and easy-to-navigate policy frameworks to better support local manufacturers. In Carlsbad, we are dedicated to strengthening our manufacturing community by fostering collaboration and ensuring businesses have the resources needed to succeed. From streamlining processes to providing access to new opportunities, we are committed to making Carlsbad a hub for innovation and sustainable growth in manufacturing,” said City of Carlsbad Mayor Keith Blackburn.

The report was sponsored by the City of Carlsbad, CMTC, County of San Diego, San Diego County Water Authority, and Walmart, and was unveiled October 30 at an industry event together with Carlsbad Mayor Keith Blackburn and San Diego City Councilmember Raul Campillo.

SEE THE FULL REPORT

LEARN MORE ABOUT MANUFACTURING IN SAN DIEGO

Plus, explore our Spotlight on Manufacturing series

About EDC

San Diego Regional Economic Development Corporation (EDC) is an independently-funded economic development organization that 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.

Q4 2023: San Diego’s employment and what it means post-pandemic

By Sofia Nelson-Ferezi,

Each quarter, EDC’s Research Bureau releases its Economic Snapshot to analyze key economic indicators in San Diego’s economy. Read on as we dig deeper to assess the region’s job recovery journey in a post-pandemic economy by looking at economic trends through the end of 2023.

San Diego’s job recovery journey

As San Diego’s unemployment rate has remained up and above the national average, at 4.3 percent and 3.5 percent respectively, and as job growth has slowed compared to early 2023, it is worth examining the region’s progress recovery in a post-pandemic economy.

From March to April 2020, San Diego lost 233,900 jobs, and employment dropped by 18.5 percent causing the unemployment rate to spike to 15.7 percent. In November 2021, the region officially recovered the total number of jobs lost during the pandemic. While recovering lost jobs is an indicator of a healthy economy, it does not tell the whole story. The following explores San Diego’s employment data to understand where the region stands as of the end of 2023.

Not all industries are created equal

While San Diego has regained the total amount of lost jobs, this is not the case for each industry. Total employment in San Diego stands two percent higher than at the onset of the pandemic. However, more than half of industries in San Diego don’t currently match pre-pandemic employment levels. Top growing industries such as Utilities, Transportation, and Healthcare help offset other sectors that are lagging in job growth.

Comparing current employment levels relative to pre-pandemic numbers is not always a reflection of recovery. Such is the case for Finance and Insurance, which made up for pandemic-related job losses by December 2020, but currently sits at 5,300 jobs under original pre-pandemic levels. In fact, several other industries initially recovered pandemic job losses and now find themselves with lower total employment. This includes Retail Trade, Real Estate, Accommodation and Food Services, and Management of Companies.

While it is hard to assume this negative trend is related to pandemic effects, the new conditions it spurred can potentially have a lagging impact on employment across sectors. For example, as remote work trends have become more prevalent, commercial real estate is affected as firms continue to reduce their office footprint, which could potentially lead to a lower demand for commercial real estate talent. In 2019, remote job postings made up only eight and four percent of total job postings in Finance and Information, respectively. In 2023, those proportions grew to 26 and 15 percent.

The industries that recovered the fastest are Transportation and Warehousing in November 2020, followed by Finance and Insurance in December 2020, and Professional, Scientific, and Technical Services in March 2021. Employment in the Utilities industry was hardly impacted after March 2020, which might explain why it has added the most jobs since the pandemic started.

What if the pandemic didn’t impact jobs?

While jobs have been recovered, the pandemic has also impacted the job growth that would have occurred absent the pandemic. Before the COVID hit, San Diego’s annual employment growth rate was averaging at 1.1 percent. This typical annual growth rate was disrupted in 2020, as annual employment fell by 10 percent.

To get an idea of where employment would stand today if jobs had not declined amid the pandemic, we apply the average growth rate from 2019 to 2023. Below, we can see how this potential growth compares to the actual annual employment levels in San Diego. From this, we see that the region is still 1,488 jobs below the potential growth, assuming employment has been growing at a fixed annual rate of 1.1 percent. This recovery had a significant economic impact on the region beyond number of jobs. In 2020, the annual growth of San Diego’s gross regional product (GRP) was barely 0.1 percent, while the annual GRP growth rate in 2021 and 2022 was 10 percent.

San Diego relative to California

While San Diego has not fully closed this gap between actual employment and potential employment growth, it is ahead of the state. This aligns with the fact that San Diego’s unemployment rate has remained below California’s throughout the pandemic until now. Additionally, the region was able to reach pre-pandemic labor force levels back in 2022, while the state remains 1.57 percentage points below 2019 participation.

Where does San Diego stand?

While San Diego’s recovery from pandemic employment impacts is not over yet, it is very close to completion at a macro level. However, it is important to monitor individual industries as their employment trends differ from one another. Even after San Diego is aligned with its potential growth, there will likely be industries falling behind; some might even experience new disruptions due to emerging economic conditions in a post-pandemic economic climate.

When comparing to California, the region has held a stronger position and experienced an overall faster recovery, with lower unemployment rates, faster labor force growth, and more rapid return to potential growth.

Learn more in our Quarterly Economic Snapshot

Contact SDREDC
To learn more, please contact us.

 

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San Diego’s Economic Snapshot: Q4 2023

By EDC Research Bureau,

Every quarter, San Diego Regional EDC analyzes key economic indicators that are important to understanding the regional economy and the region’s standing relative to the 25 most populous metropolitan areas in the U.S. Thank you to our sponsor Verizon Wireless.

EDC explains San Diego’s Q4 2023 economic data:

 

Key findings from Q4 2023:

  1. COMMERCIAL REAL ESTATE: Office and industrial real estate utilization fall for sixth straight quarter. In Q4, the region experienced sharp increases in negative net absorption of 441,867 sq. ft. in office space and 525,516 sq. ft. in industrial space. These declines mark the sixth consecutive quarter of negative net absorption. The office market ended 2023 with an additional 1.5 million sq. ft. of unoccupied space, bringing the total amount of vacant office space to more than 10.5 million sq. ft. In response, construction activity has generally declined in both office and industrial, most especially office where we see high interest rates and remote work trends continue post-pandemic.
  2. HOUSING PERMITS: In 2023, the number of housing construction permits reached its highest level since 2005. In Q4 alone, 3,500 housing construction permits were issued in San Diego, totaling 11,468 permits for 2023 and beating the average 8,635 permits granted annually since 2004. This was driven primarily by permits for five or more units, at almost 8,000 permits, while permits for one to four units decreased compared to 2022. Despite an increase in permitting activity, affordability remains woefully low. In fact, only one in nine households in San Diego can now afford the median home price, which reached $931,600 in Q4.
  3. VENTURE CAPITAL: More deals and more dollars in Q4. VC funding in Q4 was split almost equally between San Diego tech and life sciences companies, at $526 million and $570 million respectively, while the consumer companies raised $9 million. This brought the region’s total in Q4 to $1.1 billion, $134 million more than Q3. Making up more than half of Q4’s tech funding, Shield AI secured the region’s largest deal to buildout its AI pilot for autonomous aircraft systems. Overall, San Diego saw a total of $3.9 billion in funding across 182 deals in 2023, $1.9 million short from 2022, but ranking fifth in total VC funding among all U.S. metros.

Check out our most recent Economic Snapshot below

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Q3 2023: San Diego’s remote work policy and the impact on commercial real estate

By Sofia Nelson-Ferezi,

Each quarter, EDC’s Research Bureau releases its Economic Snapshot to analyze key economic indicators in San Diego’s economy. Read on as we take a closer look at how remote work trends are reshaping the workplace and the broader economy.

Remote first work

As the cost of living in San Diego continues to outpace compensation, remote work flexibility has emerged as a valuable incentive for job seekers—often, the most valuable. With San Diego median home prices reaching an all-time high of $1 million in Q3, working remotely opens affordable housing markets to employees without being limited by geographic constraints. Meanwhile, this allows employers to hire out-of-county or even out-of-state, increasing the pool of talent available to them.

Even still, employers grapple with concerns about the potential impact on employee productivity, leading to a spectrum of opinions on the efficacy of remote schedules. Yet, cutting overhead costs by adopting fully remote schedules has become an attractive possibility for firms.

SANDAG’s recent report on Remote Work Policies and Practices shows how the percentage of businesses that offer remote work options to their employees jumped from 27 percent pre-pandemic to 47 percent during, and 57 percent post-pandemic. This has had an obvious and indelible impact on commercial real estate demand.

What this means for real estate now

In the Q3 2023 Economic Snapshot, we saw that San Diego office real estate experienced its fifth consecutive quarter of negative net absorption, which reflects the difference between space that became physically occupied and space that became vacant. When this number is negative, it means more space became vacant than occupied during the quarter, perhaps because tenants decided not to renew leases as they became due.

San Diego’s negative net absorption trend is noteworthy for two reasons:

  1. Despite net absorption remaining negative for five quarters, asking rates remained at an all-time high throughout, reaching $3.31 per square foot in Q3 2023. Typically, asking rates would be expected to decrease in response to a slower demand for office space.
  1. Since 2010, the only other time the region has experienced five consecutive quarters of negative net absorption was during the onset of the pandemic, from Q1 2020 to Q1 2021.

Find this and other data trends in our interactive dashboard.

We know that office spaces became unoccupied during the pandemic due to public health mandates and safety protocols. But why are we seeing this trend again and what could be causing it? The answer could be observed in the previous graph, leading firms to cut office space.

While net absorption remained negative in Q3 2023, the number recovered greatly and indicated potential recovery from past quarters. In Q3, the office market experienced 37,868 square feet of negative net absorption, compared to 159,262 square feet in Q2 and 874,036 in Q1.

The negative net absorption in Q3 was primarily driven by larger office vacancies in areas such as UTC, Kearny Mesa, and Del Mar Heights, according to CBRE’s quarterly report. Similarly, the highest asking rates in Q3 were found in UTC, Torrey Pines, and Del Mar Heights. The low tenant demand and the continuing construction of office spaces combined might generate more available, yet unoccupied space.

Looking ahead and how you can get involved

As the San Diego region anticipates continued changes in commercial real estate, EDC is scoping a unique study of the local workforce in which we’ll survey the employees of large and small companies throughout the county. The first local study of scale on workforce requirements and desires (to our knowledge), our goal is to identify evolving local trends in how work is done, workers’ needs, workforce trends, and workplace requirements to inform company return to office plans as well as office tenant attraction strategies.

Updated survey work and studies combined with tools such as EDC’s Investment Map can help private and public investors better understand workforce and workplace trends when making commercial real estate development decisions that benefit both employers and workers. To get involved, contact EDC’s Senior Director of Research and Economic Development:

Eduardo Velasquez
Eduardo Velasquez

Sr. Director, Research & Economic Development

 

You might also like to read:

San Diego’s Economic Snapshot: Q3 2023

By EDC Research Bureau,

Every quarter, San Diego Regional EDC analyzes key economic indicators that are important to understanding the regional economy and the region’s standing relative to the 25 most populous metropolitan areas in the U.S. Thank you to our sponsor Verizon Wireless

EDC explains San Diego’s Q3 2023 economic data:

 

Key findings from Q3 2023:

  1. TALENT: Job growth continues as job postings slow down. In Q3, employment grew 1.9 percent compared to a year ago, in line with the state but behind San Diego’s most peer metros. The labor force has recovered from Q2 losses, adding nearly 13,000 participants this quarter and up 2.8 percent from last year. In contrast, the number of unique job postings advertised by regional employers totaled 106,521 in Q3, a 32 percent decrease compared to this quarter last year.
  2. AFFORDABILITY: Median home price reached an all-time high. San Diego’s median home price ranks second among peer metros, behind only San Francisco. Home prices increased an additional eight percent during the last year, while home sales fell 25 percent. Year-over-year home sales have declined since August 2021. The lack of housing supply and the reduced number of transactions has resulted in record lack of affordability.
  3. COMMERCIAL REAL ESTATE: Office space occupancy declines for fifth consecutive quarter. In other words, more office space has become unoccupied than leased for over a year. However, net absorption is currently trending in the right direction. In Q3, the office market experienced 37,868 square feet of negative absorption, compared to 159,262 square feet in Q2 and 874,036 in Q1. The only other time San Diego experienced this degree of negative net absorption was during the height of the COVID-19 pandemic.

Check out our most recent Economic Snapshot below

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Study: San Diego’s cyber talent grows by 10% across 1K firms

By EDC Research Bureau,

EDC, CCOE study quantifies impact of region’s cybersecurity cluster

Together with the Cyber Center of Excellence (CCOE), EDC released “Cybersecurity is Everyone’s Business: San Diego’s Cyber Cluster.” The fifth update since 2014, the report quantifies the economic impact of the region’s cybersecurity cluster and explores the firms, technology, and talent working to help thwart cyber risk across San Diego and beyond.

As cyberattacks and ransomware threats extend beyond technology and begin to impact even our built environment, the importance of cybersecurity cannot be overstated. Not only are the consequences costly—reaching an average of $9.44 million in the U.S. per IBM—but they have profound impacts on human health and safety.

“San Diego is leading the charge with more than 1,000 cyber firms, top-ranked education and research institutes, and the Naval Information Warfare Systems Command (NAVWAR). This collaborative ‘Ecosystem in Action,’ as highlighted by the White House, is developing new technologies, solutions, and diverse cyber talent to create a more secure digital community for all,” said Lisa Easterly, President & CEO, CCOE—commissioning organization of the report.

Marking the 10-year anniversary of CCOE, the biennial report includes a deep dive into San Diego’s $4 billion cyber cluster, a metro-by-metro comparison, a roster of local resources and assets, and business sentiments of local firms.

KEY report FINDINGS

  • Cybersecurity is everyone’s business. With increasing cyber threats to physical infrastructure, the security of data and communication is of critical importance, leading to a sharp rise in global demand for cybersecurity talent across industries. In San Diego, 59 percent of private sector cybersecurity jobs are in industries outside of technology, such as manufacturing, architecture, and engineering.
  • San Diego’s cybersecurity cluster is expanding its footprint and impact on the regional economy. There are 13,383 jobs and 1,016 establishments tied to the cybersecurity cluster in San Diego, up eight percent and 17 percent respectively in the last two years. Altogether, this amounts to a $4 billion regional economic impact.
  • Local cybersecurity firms remain deeply linked to the Federal government, including the Department of Defense. A majority (65 percent) of San Diego cyber firms work directly or indirectly with the government. Nearly one-fifth indicate government-related work as their primary focus, explaining why 23 percent of local cybersecurity firms are in the defense and aerospace industry.
  • Fast growth and resilience define San Diego’s cybersecurity talent. The region’s talent pool has grown by nearly 10 percent since 2018, five times faster than all other occupations combined. The cybersecurity talent base experienced significantly smaller job losses during the pandemic and recovered both more strongly and more quickly than other occupations. 
  • Demand for cyber talent far exceeds local supply. Three out of four cybersecurity firms in San Diego report having difficulty finding entry- to mid-level as well as experienced applicants. Increasing compensation and diversity can help address San Diego’s talent shortage.

Cyber is an important and rapidly growing piece of the San Diego regional economy. The cluster supports 26,000 local jobs, most concentrated at NAVWAR, the preeminent provider of information warfare capabilities for the U.S. Navy. In all, the economic impact of San Diego’s cyber cluster is about the same as 24 Comic-Cons.

“Firms in every industry face cybersecurity risks. This is driving up the demand for cybersecurity talent and solutions. To keep pace and remain competitive, San Diego must leverage its unique assets, such as the military, as well as its incredibly diverse pool of talent,” said Eduardo Velasquez, Senior Director of Research and Economic Development, EDC.

“We have a national shortage of cyber workers—to the tune of 663,000 in the U.S. per Cyberseek. Opening the aperture with accessible and skills-based training helps seed and diversify the talent pipeline, which is critical to advancing our country’s homeland security,” said Joseph Oregon, Chief of Cybersecurity, Region 9, Cybersecurity and Infrastructure Security Agency (CISA).

More competitive compensation, increased diversity in recruitment, and thoughtful consideration of degree requirements are all strategies that can help San Diego lead in cybersecurity innovation across the region and globe.

In partnership with CCOE, the report was sponsored by Booz Allen Hamilton, CyberCatch, ESET, Haiku, RiskRecon, and San Diego State University, and was unveiled today at an industry event hosted at Qualcomm.

SEE THE FULL REPORT HERE

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The economic impact of San Diego’s RNA cluster

By EDC Research Bureau,

EDC study explores the power and impact of RNA before and beyond COVID-19

Together with 1STRAND, EDC released “San Diego’s RNA cluster: Powering public health and the economy,” a comprehensive overview and economic impact assessment of San Diego’s RNA cluster, including direct input from industry representatives and stakeholders.

The power of gene expression manipulation has unlocked possibilities that were once unthought of—advanced treatments for cancer, HIV vaccines, personalized medicine, and more. These scientific achievements, discoveries, and events have catalyzed the growth of RNA innovation and therapeutics.

Home to dozens of RNA firms supporting more than 11,000 jobs, San Diego is especially well positioned to lead in RNA therapeutics innovation, promising a bright future for the region’s Life Sciences ecosystem and the broader economy.

KEY report FINDINGS

  • San Diego’s RNA cluster is a major contributor to the regional economy, with a nearly $6 billion annual impact. For every 100 jobs generated within the cluster, an additional 150 jobs are supported across the region.
  • San Diego’s RNA cluster has capabilities in both research and development (R&D) and manufacturing. While R&D leads RNA activities in the region, San Diego’s expertise in advanced manufacturing offers a solid foundation for further growth.
  • Leveraging its expertise in RNA technology, San Diego proved resilient and important in the fight against COVID-19. The region drew in $59 million from the National Institutes of Health (or NIH) and employment grew nine percent through 2021.
  • Software development jobs continue to grow within San Diego RNA firms. Demand for these professionals is expected to rise as Artificial Intelligence and Machine Learning (AI-ML) are further integrated.
  • Talent attraction is a major challenge for local RNA companies. Compensation is not keeping pace with San Diego’s high cost of living and puts the region seventh out of 10 in average wages among peer metros.

RNA and RNA therapeutics sit at the intersection of four sectors: R&D, manufacturing, trade, and healthcare. These include operations such as medical laboratories, production of biological materials and lab instruments, drug wholesalers, and consulting services to name a few—all of which are part of a broader ecosystem of industries fueling San Diego’s RNA cluster. This broader ecosystem feeds RNA clusters across the country, and San Diego consistently ranks among the top 10 metros in terms of total jobs, job concentration, and average wages. Peer metros includes Life Sciences heavyweights Boston and San Francisco, as well as parts of the North Carolina Research Triangle and tech hubs Seattle and San Jose.

Among peer metros, San Diego ranks:

  • #2 in job growth (nine percent) from 2021
  • #2 in projected job growth (13 percent) by 2027
  • #3 in number of job postings
  • #4 in median advertised salary for RNA jobs at just under $85,000
  • #7 in average hourly compensation ($56.68) for RNA jobs
  • Home to #5 most funded institution in the U.S. in RNA-related projects, and #2 in California – UCSD

The study was produced by EDC on behalf of 1STRAND in June 2023. Learn more about EDC’s research here.

SEE THE FULL REPORT HERE

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