Manufacturing in San Diego: Local Impact, Global Reach
This article was sourced from San Diego Regional EDC. Click “Read More” to read the full article on their site.
Executive summary
San Diego’s Manufacturing sector is a vital component of the region’s economy. Tied to San Diego’s pillars of innovation, the sector is not only expansive but also diverse, making a profound impact on the local economy and supplying a significant number of jobs.
Authored by San Diego Regional EDC in October 2024, the following report provides a comprehensive analysis of the strengths and opportunities related to San Diego County’s Manufacturing sector and highlights the diversity and innovation driving its success. In addition, the report covers the challenges facing manufacturers locally, as well as macro trends that could propel it forward.
The report findings will serve as a strategic guide for regional decision makers, offering data and insights needed to preserve and enhance San Diego’s competitive edge in the global manufacturing landscape.
Key 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 manufactures and their workers.
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