San Diego’s manufacturing sector has a $47 billion regional economic impact annually, according to new research, while accounting for nearly one in 10 private jobs across the region.
The industry, according to a report by the San Diego Regional Economic Development Corp., supports 121,027 jobs at 4,429 establishments tied to manufacturing, which craft everything from consumer goods to genome sequencers.
The report, “Manufacturing in San Diego: Local Impact, Global Reach,” attempts to quantify the economic impact of the local industry while exploring the firms, innovation clusters and talent building behind it.
“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., the EDC’s director of research and economic development.
The EDC tied the release of the report to National Manufacturing Month, unveiling it Wednesday at an industry event with San Diego City Council member Raul Campillo and Carlsbad Mayor Keith Blackburn.
The interactive web report includes a deep dive on the local manufacturers, with company profiles, a metro-by-metro comparison and a set of recommendations for better supporting manufacturers in a costly and highly regulated environment.
Among the key findings:
- Over the last five years local manufacturing firm growth has outpaced that of California and the U.S. at large.
- Manufacturing jobs are high-paying and increasingly accessible. Average annual wages are more than $103,000 – 31% 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.
Manufacturers in San Diego include recognizable brands with popular products such as Taylor Guitars, Dr. Bronner’s soaps and Stone Brewing IPAs. But innovation-related industries, from life sciences to aerospace, make up 46% of all manufacturing employment in the region.
Yet the local high cost of living, including expensive housing and higher operational costs, pose challenges for attracting and retaining talent and manufactures alike. San Diego also ranks low in ease of doing business compared to competitor regions.
“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,” Blackburn said.
The report was sponsored by the Long Beach nonprofit, California Manufacturing Technology Consulting, along with Walmart, the city of Carlsbad and the San Diego County Water Authority.