HomeMy WebLinkAbout2013/09/17 Item 12 Attachment A2 - Target Clusters
Target Industry Clusters Report
August 2013
Chula Vista Business Cluster Analysis
Leveraging Unique Assets to Compete Globally
CLIENT
“This study was partially supported by the Chula Vista Local Government Partnership, which is
funded by California utility ratepayers and administered by San Diego Gas & Electric, under the
auspices of the California Public Utilities Commission.”
Chula Vista Phase II Target Industry Clusters Report August 2013
Table of Contents
Introduction ..................................................................................................................... 1
1.0 Methodology .............................................................................................................. 2
1.1 Target Industry Analysis ......................................................................................... 2
1.2 Chula Vista Business Clusters ............................................................................... 3
2.0 Findings ..................................................................................................................... 4
2.1 Industry Clusters .................................................................................................... 5
2.4.1 Existing & Local Industry Specialization .......................................................... 5
2.4.2 Border Industries ............................................................................................. 6
2.4.3 Six Target Industry Clusters ............................................................................. 8
2.4.4 Industry Cluster Matched to Assets and Property Districts ............................ 28
3.0 Reports & Background Research ............................................................................ 29
3.1 Appendix .............................................................................................................. 30
3.2 Chula Vista Business Cluster Analysis – Project Team ....................................... 31
Chula Vista Target Industry Clusters Report August 2013
Page 1
Introduction
The purpose of the Chula Vista Business Cluster Analysis, a three phase study, is to:
1. Identify Chula Vista’s strengths and assets for attracting business and
industry with quality jobs;
2. Identify those industry clusters that are “best fits” based on those strengths
and assets; and
3. Provide direction and specific targets for initiating a business recruitment
effort.
Phase II is the Target Industry Cluster Analysis which includes screening and analysis
to identify “best fit” target industry clusters for Chula Vista. This report overviews the
methodology, industry selection and provides industry intelligence on each target
industry cluster. In Phase III, a list of 30 businesses matching the target industry
clusters is provided to launch business recruitment initiative.
The Phase II Best Fit Target Industry Clusters for Chula Vista include:
1. Advanced Manufacturing
2. Education & Innovation Centers
3. Clean Tech
4. Health, Wellness, Sports Medicine
5. Information & Communication
Technology
6. Headquarters & Administrative
Sales Offices
Also identified were convergence
industries, such as, Medical Device
(advanced manufacturing, innovation,
health) as well as industries linked to
growth sectors in Tijuana.
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1.0 Methodology
Determining target industries for Chula Vista involves both quantitative and qualitative
evaluations. Phase II of the project involved:
1) Target Industry Analysis, a screening process of multiple sources to identify
the best fit targets; and
2) Applying regional and industry research to target industry identification to
align Chula Vista’s assets and opportunities to business clusters.
Phase I, the Competitive Location Assessment, provided the qualitative evaluation –
corporate location decision factors, a real estate market analysis, and a local business
climate survey – which was used in Phase II to further identify the target clusters.
1.1 Target Industry Analysis
The quantitative analysis uses a universe of target
industries for the metro area beginning with SANDAG
Traded Clusters which is supplemented with additional
information about employment and establishments at the
national, state, regional and local level.
It is a multiple step screening process to identify targets
with strong location quotients and with growth
opportunities in both employment and output, Figure 1,
Target Screening Funnel. For Chula Vista, the process
also screened for industry opportunities with energy
efficiency and conservation, cross-border and healthcare.
Chula Vista Target Industry Clusters Report August 2013
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Figure 1 - Target Screening
1.2 Chula Vista Business Clusters1
The final process for identifying Chula Vista’s business clusters involves further
investigation of niche and emerging industries as well as research of the target
industries identified to understand their needs in a location, such as, workforce.
During this phase the Project Team also investigated linkages with regional assets and
how those assets / opportunities affect Chula Vista’s position in the market place, such
as, Chula Vista’s proximity to Tijuana and their manufacturing hub.
The result is matching Chula Vista’s assets and market situation from the competitive
assessment to identify Chula Vista’s Target Industry Clusters.
1 Reports supporting the findings and analysis are included in Appendix as separate documents.
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2.0 Findings
Chula Vista is fortunate to have businesses that drive economic prosperity – population
driven businesses such as retail and healthcare; visitor serving, businesses that attract
and / or serve visitors; and Traded Sector, businesses that export goods and services
creating a higher economic multiplier effect in the community.
Phase II is focused on increasing businesses in the Traded Sectors, which will provide
quality jobs to local residents and create a higher multiplier effect for a greater economic
impact.
The Quarterly Census of Annual Average Employment & Wages Data2 table below
highlights the current industry sectors in Chula Vista.
The largest employment sectors are retail, government, healthcare, accommodations
and food and manufacturing. The largest total payroll is in 31-Manufacturing, 110-
Government, 62-Health Care and 44 Retail Trade. Average wage, calculated per
employee, is 31-Manufacturing $91,146, 51-Information $56,623, 110-Government
$50,869 and 62-Healthcare $50,707.
2 Source: California EDD, Third Quarter 2012, Quarterly Census of Annual Average Employment & Wage Data
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2.1 Industry Clusters
The City of Chula Vista has transformed over the last century from an agricultural
community to a war-time aircraft production node in the 1940’s to what is now primarily
an economy based on small businesses, many of them local-serving. There are also
several large companies in aerospace and electronics that have been in the City for a
long time.
In preparation for more aggressive economic development efforts, identification of key
industry clusters and specific business targets is important to moving forward. As noted
in the Methodology, this target industry cluster phase focuses on opportunities for Chula
Vista based on the targets identified for the San Diego region by SANDAG as well as
unique opportunities related to the large manufacturing base in Tijuana and the City’s
focus on energy efficiency and conservation.
2.4.1 Existing & Local Industry Specialization
Location quotients are used to identify industry specialization within the City. Industries
with location quotients greater than one are technically serving customers outside the
local area and represent Chula Vista’s specializations within the SANDAG traded
clusters. Traded industries in Chula Vista with a location quotient (LQ) greater than 1.5
include: precision and advanced manufacturing (plate work mfg. LQ 51.6),
communication equipment repair LQ 23.61, boat building LQ 14.4 and aircraft parts
manufacturing LQ 13.7.
Chula Vista has a strong manufacturing base in several industry sectors:
Advanced Precision Manufacturing
Aerospace, Navigation & Maritime Technologies
Apparel Manufacturing
Biomedical Devices & Products
Information & Communications Technologies
Specialty Foods
United Technologies Aerostructures (formerly Goodrich) is a perfect example. UTC is
headquartered in North Carolina with a major facility in Chula Vista. UTC is a Tier 1
supplier of its Nacelle Systems to Airbus. In 2011 Airbus selected UTC Aerostructures
to provide the Nacelle System for the new engine option A320neo3. Airbus is building a
new facility in Mobile, Alabama to be completed in 2015.
3 http://utcaerospacesystems.com /latest-news/utc-aerospace-systems-celebrates-25-years-of-providing-nacelles-for-the-airbus-a320-family-looks-ahead-to-the-
next-25/
Chula Vista Target Industry Clusters Report August 2013
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A review of the building inventory for industrial and flex building4 indicates that dominant
uses are manufacturing and warehousing with 45% of the inventory, approximately 3.9
million SF used for manufacturing on the west side of the City. The following chart
shows number of establishments by zip code 91910 and 91911, 116 manufacturing
firms, with most being small, fewer than 20 employees.
2.4.2 Border Industries
One of the unique locational advantages of Chula Vista is its proximity to the Mexican
border. The City is located only 7 miles from Tijuana, Mexico. Tijuana is a rapidly
growing manufacturing, innovation and technology hub. Mexico is increasingly taking
manufacturing market share from China and India as rising wages and transportation
costs make “near-shoring” a more attractive option. Better integration of Mexico’s
manufacturing and innovation strengths into America’s economy creates benefits for
both economies. Chula Vista could take advantage of this growing trend.
4 KMA Research, March 15, 2013, Appendix
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The manufacturing sector in the City of
Tijuana alone employs more than 169,000
workers at over 2,700 firms, representing
44 percent of total employment5. This is
significantly larger than San Diego
County’s manufacturing base of only
93,000 workers. In the State of Baja
California, the number of manufacturing
workers rises to 281,000. This represents
an extraordinary level of manufacturing
capacity within less than 10 miles of
Chula Vista.
Tijuana has begun to receive
considerable attention in the press for its
economic growth and manufacturing
excellence. Tijuana, expected to triple its
GDP between 2010 and 2025, is the most
active border crossing in the world and by
2025 adds the Tijuana-San Diego bi-
national airport with an international
bridge to serve as the International Terminal for San Diego.
Boston Consulting recently released a report entitled “Tipping Point” Industries. With the
rising Chinese wages along with a desire to slash long lead-times, locate production
lines closer to design and engineering teams, improve quality control, and reduce
shipping costs, US manufacturers are beginning to consider bringing production back to
US or closer locations.6
Tijuana sees reshoring and near-shoring (locating near the US) as an opportunity to
grow their strong niches:
Aerospace & Defense Industry – $1.2 billion
Medical Device Industry – $1.5 billion
Electronics Industry – $6.5 billion
Automotive Industry – $1 billion
Plastics Industry – $1 billion
5 Source Instituto Nacional de Estadistica, Geografia e Informatica (INEGI), 2009 Economic Census
6 The Boston Consulting Group, www.bcgperspectives.com; South County EDC Manufacturing Sector Report, June 2012
Chula Vista Target Industry Clusters Report August 2013
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2.4.3 Six Target Industry Clusters
Using the screening model six Target Industry Clusters were identified as the best fit
targets for Chula Vista to considered for marketing and recruitment:
1. Advanced Manufacturing
2. Education & Innovation Centers
3. Clean Tech
4. Health, Wellness, Sports Medicine
5. Information & Communication
Technology
6. Headquarters & Administrative
Sales Offices
Also identified were convergence
industries, such as, Medical Device
(advanced manufacturing, innovation,
health) as well as industries linked to
growth sectors in Tijuana.
These targets have historically
experienced growth in the region, have a
strong regional presence (including Mexico), are
projected to grow in employment and output7 and have relative high wages.
Average wages for the targets industry range from a low of $42,300 to a high of
$125,800 depending on the industry and occupations.
This target list is not intended to exclude opportunities that present themselves; instead,
it is a means to focus limited resources for marketing and sales.
The following pages provide an overview of each target industry cluster including key
location priorities, average industry wage based on existing San Diego firms,
opportunities in the cluster, primary occupational needs and list of areas supporting the
industry.
7 Appendix spreadsheets provide detail of employment and output growth for each sector.
Chula Vista Target Industry Clusters Report August 2013
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Recommended Target Industry Clusters
1.0 Advanced Precision Manufacturing Advanced Manufacturing, both in Precision Manufacturing and the
Aerospace, Navigation & Maritime Technologies is Chula Vista’s strongest
niche in the Region. This niche is also closely tied to the sectors in Tijuana.
The federal / state discussions around advanced manufacturing and the
growing trend for “reshoring” and “near-shoring” bring special
opportunities to this sector.
This sector should be closely tied to Chula Vista’s Education & Innovation
Cluster to attract institutions and technology centers, federal or private,
to position Chula Vista as the bi-national location for Advanced
Manufacturing.
2.0 Aerospace, Navigation & Maritime
Technologies
This cluster represents Chula Vista’s largest employers and is also closely
tied with Tijuana clusters. Opportunities in this cluster will be with
expansions of the existing base, new research, and development in the
field, component suppliers and potential technical training.
As this cluster grows in the US, i.e., Airbus which UTC is a Tier 1 Supplier,
and in Tijuana, Chula Vista should be an opportunity location for
expansions.
3.0 CleanTech Chula Vista’s clean tech reputation can help drive this industry cluster
development. This is an emerging field that crosses over industry sectors.
Environmental instrument manufacturing and industrial design services
could be unique opportunities.
Industrial design services may bring an element of innovation to this
cluster. Within manufacturing, there may be niche opportunities for small
to medium sized companies in instrument manufacturing to support
energy monitoring and efficiency.
4.0 Education & Innovation Centers Closely tied to Chula Vista’s Advanced Manufacturing niche and
opportunity to leverage the manufacturing economy in Tijuana, Chula
Vista could create in addition to a 4-year University technology and
innovation centers specific to advanced manufacturing - automotive,
aerospace and electronics industries, as well as becoming a provider of
technical education for skilled manufacturing employees in these sectors.
5.0 Information & Communications
Technologies
This cluster is a match and a way to leverage the manufacturing industries
in Tijuana by developing better information tracking systems to help
manage manufacturing processes.
6.0 Health & Wellness Services (Sports
Medicine)
Given the strong industry presence in other areas of the region, Chula
Vista is not generally competitive for the bio-tech component of health
services. However, there may be demand for additional health-wellness
service providers in the City and opportunity for “health tourism” as
health services is typically population-driven.
A unique niche and a growing niche in San Diego is the Sports Innovation
Cluster. Tying Chula Vista’s Olympic Training Center to a “Sports
Innovation” or “Sports Medicine” field could be a convergence of
tourism, health, wellness, fitness, and manufacturing industries
supporting sports and sports athletes.
The following pages highlight key industry intelligence for each Target Industry Cluster.
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Advanced Precision Manufacturing
This is a narrowly defined group of targets that includes iron and steel pipe
manufacturing, communication equipment repair and the emerging technology of
additive manufacturing or “3D printing”. Additive manufacturing uses software to
produce extremely complex parts by layering materials.
Both communication equipment repair and steel pipe manufacturing have experienced
strong growth in the region in the past five years. Communication equipment repair has
an established presence in Chula Vista. Steel pipe manufacturing would be a good fit as
a supplier and a fit with the west side properties.
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Key location priorities (what industry seeks) for this cluster include:
Transportation costs
Energy dependability
Availability of raw materials
Availability of skilled and semi-skilled production workers
Built space availability and cost (see my note under the next category regarding
this comment)
“Ready-to-go sites”
Low cost electricity
Skilled CNC machine operators
Quality technical schools with metal-working curriculum in place
Target Industry Size Overview
Total San Diego
Establishments
Average
Emp. Size
Average
Wage
Typical
Square
Footage **
Building
Type
Advanced Precision Manufacturing 20 31 $42,300 21,000-
25,000 Industrial
Source: IMPLAN ES202 Data for 2011.
*Average wage for San Diego County
**Base is average establishment size in San Diego - size will be dependent on company plans.
The following are examples of opportunities for growth and innovation in Advanced
Precision Manufacturing industry cluster:
Within the communication equipment sector, as the volume of smartphones
and tablet computers in the market continues to grow, there will be demand for
advanced features such as 3D displays and improved internet connectivity to
spur additional consumer spending.
As the trend toward more sophisticated communication and audio / video
equipment in vehicles progresses (see education and innovation cluster), there
will be additional opportunities within the communication equipment repair
industry.
The opportunities within additive manufacturing are substantial. It is expected
to become a $3.1 billion industry by 2016. Additive manufacturing can be used
to make almost any shape or geometric feature and has wide ranging
applications from the automotive and aerospace industries to medical devices
Chula Vista Target Industry Clusters Report August 2013
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and consumer products. It is even possible to use this technology to create
bones and soft tissue for surgical procedures.
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Aerospace, Navigation and Maritime Technologies
Chula Vista has a strong cluster with the existing UTC Aerostructures and the Marine
Group Boat Works.
Marine Group Boat Works is a good example of a transitioning industry, in business for
25 years and now specializing in employing energy efficient, low emissions processes
and equipment in the repair and rebuilding of yachts and other commercial vessels.
UTC has a significant presence in Chula Vista as well as Mexico. This is an important
sector to both Chula Vista and Tijuana which is continuously innovating new products
and components for the aerospace industry. UTC is a Tier 1 Supplier to Airbus who will
be completing a new facility in Mobile, AL, the only US facility.
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Other industries in this cluster include testing laboratories, physical and engineering
research and process and logistics consulting related to the aerospace industry. These
service and R&D capabilities are closely aligned with the types of industry opportunities
described in the cluster on Education and Innovation Centers.
The industries in this target cluster have experienced moderate growth in the region
over the past five years. They offer high wage jobs as well as strong projected growth
nationally. They would be a good fit for the Bayfront area.
Key location priorities for this cluster include:
Proximity to manufacturers and other “customers”
Access to air transportation
Availability of technical and professional specialty workers
Skilled CNC machine operators / maintenance mechanics and electricians /
certified welders
“Ready-to-go sites”
Built space availability and cost ready-to-go buildings / move-in space to
accommodate smaller users in the 25-50,000 SF range or higher (100,000 SF)
Secondary and higher education quality – technical schools
Low cost electricity
Target Industry Size Overview
Total San Diego
Establishments
Average
Emp. Size
Average
Wage*
Typical
Square
Footage **
Building
Type
Aerospace, Navigation and Maritime
Technology
596 47 $125,800 24,000 -
50,000 with
potential of
100,000
Industrial /
flex
Source: IMPLAN ES202 Data for 2011.
*Average wage for San Diego County
**Base is average establishment size in San Diego - size will be dependent on company plans.
Opportunities for growth in this cluster will be through expansion of existing industries
and tying to the growth of the same industries in Tijuana through “reshoring” efforts.
Industries in the aerospace, navigation and instrumentation fields, both domestic and
international, should be on the watch list.
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Clean Technology
Federal and state governments promote energy efficiency through initiatives to reduce
greenhouse emissions, research, and development aimed at reducing energy intensity
in manufacturing, and a series of voluntary agreements to promote the use of
renewable energy resources. Because increasing energy efficiency can be costly for
manufacturers that are competing in a global marketplace with less stringent
requirements, these changes need to be accompanied by productivity enhancements to
be financially feasible.
Providing technical assistance to industries needing to improve energy efficiency, which
Chula Vista is already doing, as well as specialized manufacturing of energy saving and
monitoring devices are both keys to this industry cluster.
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This cluster could potentially include lower skilled functions related to the installation
and repair of energy efficiency devices, and products that would provide a broad mix of
job opportunities for Chula Vista residents. The clean tech cluster has experienced
moderate growth in the San Diego region over the past five years and has strong
projected growth on a national level. Clean tech industries would be a good fit for the
University Park in the long term but perhaps also in the Eastlake area in the shorter
term given the availability of existing built space, or the Millenia.
Clean Tech is a relatively young industry cluster and does not have assigned NAICS
codes as they cross-over with other industry sectors, Clean Tech is more of a function
of research, development, manufacturing and installation. The Clean Tech Value
Chains are included in the Clean Tech Value Chain Chart:
Key location priorities for this cluster include:
Proximity to customers
Energy dependability
Availability of engineering and related technical workers
Built space availability – including low to no rent incubator space
Access to capital including venture capital
Chula Vista Target Industry Clusters Report August 2013
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Regulatory climate
“Green” sustainable community
Quality-of-life factors including interesting neighborhoods and a lively
downtown district for work force recruiting
Due to the rising demands for capital among companies that are manufacturing green
devices to support renewable energy, emissions reduction, and reduced carbon
footprints, Chula Vista is able to attract manufacturers versus professional service
providers within this cluster. Assisting all new companies with establishing relationships
in regional venture capital networks will be valuable.
Target Industry Size Overview
Total San Diego
Establishments
Average
Emp. Size
Average
Wage*
Typical
Square
Footage**
Building
Type
Clean Tech 2,400 16 $112,700 6,500 -
15,000
Light mfg. /
business
park
Source: IMPLAN ES202 Data for 2011.
*Average wage for San Diego County
**Base is average establishment size in San Diego - size will be dependent on company plans.
Chula Vista Target Industry Clusters Report August 2013
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Education and Innovation Centers
The concept of the Education and Innovation Center Cluster is to grow advanced
manufacturing, grow other clusters through innovation and technology advancement,
and support education and vocational training for the existing manufacturing and
manufacturing growth that is taking place in Mexico. These types of centers and
institutions are being promoted and supported by federal and state governments as well
as industry. Attracting additional education and innovation centers along with a 4-year
University that are aligned with industry clusters will create a cluster of its own.
The purpose of these types of centers, and why local areas, government, academia and
business are embracing them, is to accelerate technology deployment relative to new
materials and processes; operate demonstration facilities; support education and
training; perform applied research to support private industry and create quality
employment.
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In Chula Vista, this type of industry cluster may include a range of services from the 4-
year University to career and technical education for incumbent and new employees,
assistance with human resource and marketing issues for companies new to Mexico,
and innovation centers to address the specific needs of the type of manufacturing that is
present in Tijuana and US.
Some of this type of activity is already taking place in Mexico at centers like the
Business Innovation and Technology Center or the Technology Consortium, both with
locations in Tijuana. However, there may be opportunities to provide additional services
from Chula Vista8.
This target would be a good fit for the University Park.
In addition to the above, the following are some examples of opportunities for innovation
and training specific to the primary industries in Tijuana.
Automotive and Aerospace
Alternative product designs to work around rising costs of key raw materials
such as platinum and volatility in steel prices.
Lighter weight parts to improve fuel efficiency including engines as well as
vehicle and aircraft bodies.
Greater engineering expertise on the research side as well as additional
training for technicians who can work with cutting edge, high tech tools to
produce more sophisticated vehicle components.
R&D focused on Internet enabled automotive features such as vehicle tracking,
navigation, mobile television, and email access.
Focus on green technology, not only in terms of alternative fuels but also the
use of renewable, non-toxic materials in other components.
Continual worker training in computer systems and production control will be
required to support greater automation in manufacturing.
The application of additive manufacturing (3D printing) to the plastics industry,
which is a key supplier to both automotive and aerospace manufacturing.
8 NOTE: There currently exists an opportunity to work with regional entities to compete for Federal Funding through the Advanced Manufacturing Initiative. The federal government will be designating and providing funding for Advanced Manufacturing Centers across the US.
The Governor’s Office of Economic Development hosted an Advanced Manufacturing Summit in March 2013 to discuss opportunities of application from San
Diego. An application is being seriously considered among the various organizations in San Diego with San Diego State taking the lead. In conversations with
CONNECT, it was agreed that Chula Vista could be a competitive location in the for application process for an Advanced Manufacturing Center. Contact
CONNECT for further information.
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Medical Devices
Demand for innovative and cost effective ways to recycle medical devices. One
of a myriad of issues related to rising health care costs in the United States is
medical supply waste. As a result, there is a new push towards recycling and
refurbishing medical devices. The FDA requires that these devises comply with
the same regulations as new equipment.
Key location priorities for this cluster include:
Proximity to customers (manufacturers and other recipients of services)
Reliable advanced telecommunications capabilities
Availability of professional specialty and managerial workers
Built space availability and cost
Access to capital
Quality secondary and higher education
Target Industry Size Overview
Total San Diego
Establishments
Average
Emp. Size
Average
Wage*
Typical
Square
Footage**
Building
Type
Education and Innovation Centers 1,337 8 $73,000 4,000 -
20, 000 to
campus
Office
Source: IMPLAN ES202 Data for 2011.
*Average wage for San Diego County
**Base is average establishment size in San Diego - size will be dependent on company plans.
Chula Vista Target Industry Clusters Report August 2013
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Information and Communications Technology
The information and communications technology cluster is well established in the San
Diego metro area. It is a good match with the types of sites and skill sets available in
Chula Vista.
This target cluster has strong projected output growth nationally and offers high paying
jobs9.
Information and communications technology would be a good fit for the Eastlake area,
but also for the University Park in the longer term.
9 Appendix, Cluster Analysis Data Sheets detail industry growth and projections in output and employment.
Chula Vista Target Industry Clusters Report August 2013
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Key location priorities for this cluster include:
Reliable advanced telecommunications capabilities
Availability of business support services
Availability of technical workers
Built space availability and cost – including low to no rent incubator space
Quality secondary education
“Green” sustainable community
Quality-of-life factors including interesting neighborhoods and a lively
downtown district for work force recruiting
Target Industry Size Overview
Total San Diego
Establishments
Average
Emp. Size
Average
Wage*
Typical
Square
Footage**
Building
Type
Information & Communications
Technologies
2,248 21 $116,800 7,000 -
15,000
Office
Source: IMPLAN ES202 Data for 2011.
*Average wage for San Diego County
**Base is average establishment size in San Diego - size will be dependent on company plans.
The following are examples of opportunities for growth and innovation in this industry
cluster:
Computer systems are used extensively in the auto and aerospace industries
to design parts, for process control, and inventory management. Smaller
suppliers are working to integrate supply chain systems to support just-in-time
delivery while the major auto manufacturers are looking to increase their supply
chain efficiency through upgraded electronic data interchange.
Streamlined logistics systems are important for manufacturers to manage a
large number of suppliers and also to minimize inventory of parts and finished
goods and improve timeliness of outgoing shipments.
Another key growth area within information and communications technology is
security; including data security for internal systems and network security for
wireless devices. Security systems address threats such as viruses and
hackers, as well as intelligence breaches.
New systems design capabilities are often required to accommodate wireless
devices and therefore present opportunities in information and communications
technology.
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Migration to cloud computing services also presents an opportunity for new
development in information technology, as well as generating demand for
additional data storage capability.
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Health & Wellness Services
(Sports Medicine)
Chula Vista has some unique assets that can be brought together to create a Health,
Wellness, Sports Medicine Cluster. CONNECT refers to this cluster as Sports
Innovation.
Chula Vista has one of only three Olympic Training Centers in the US. This is an
underutilized asset.
This cluster’s opportunity is the Convergence of Tourism focused on Health,
Wellness, Culture, and Recreation; of which Chula Vista has the unique assets to
build, expand, and grow this cluster in Chula Vista.
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Research indicates consumers in the US and Mexico, are more and more integrating
Health and Wellness into their lifestyles and in so doing look for destinations that
enhance those opportunities. Wellness Travel is the pause that reenergizes and
rejuvenates each traveler. The Wellness Vacation is considered an occasional break for
the body, mind, and soul. The Wellness Vacation often involves new outdoor and sports
experiences.
According to the recently published Outdoor Recreation Economy Report, outdoor
recreation spending is approximately $646 billion in the United States and generates 6.1
million American jobs. Of that $646 billion, fully $524 billion was spent on trips and
travel related spending.
Linking these assets to job creating industries that support and advance Sports and
Sports Medicine would complement the cluster and build synergy with the Olympic
Training Center and could be attractive to those industries that support athletes, both
professional and recreational.
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2.4.4 Industry Cluster Matched to Assets and Property Districts
The following chart provides an overview of Chula Vista’s assets and potential property
district as location for the target industry businesses:
TARGET CLUSTERS ASSETS DISTRICTS
Advanced Precision
Manufacturing
Semi-skilled and skilled labor pool
Access to Tijuana industries and engineers
Southwestern College
Proposed university
Brown Field Municipal Airport (corporate
aviation)
Heavier industrial uses:
Bay Blvd / Industrial Blvd
Main Street
Auto Parkway / Landfill Buffer
Lighter industrial uses:
Eastlake Business Center
UPID
Aerospace, Navigation and
Maritime Technologies
United Technologies Corp. (formerly
Goodrich Aerostructures Group)
Maritime theme of Tidelands uses
(Bayfront)
Access to Tijuana industries and engineers
Southwestern College
Proposed university
Brown Field Municipal Airport (corporate
aviation)
Bayfront Master Plan
Bay Blvd / Industrial Blvd
Main Street
Auto Parkway / Landfill Buffer
Clean Tech Maritime theme of Tidelands uses
(Bayfront)
City government initiatives
Proposed university
Natural amenities (open space, trails, bay,
lakes)
New mixed-use districts (attractive to
younger employees)
Bayfront Master Plan
UPID
Eastlake Business Center
Millenia
Education and Technology
Centers
Proposed university
Semi-skilled and skilled labor pool
Access to Tijuana industries and engineers
Maritime theme of Tidelands uses
(Bayfront)
UPID
Bayfront Master Plan
Bay Blvd / Industrial Blvd
Millenia
Information and
Communications
Technology
New mixed-use districts (attractive to
younger employees)
Natural amenities (open space, trails, bay,
lakes)
Proposed university
Brown Field Municipal Airport (corporate
aviation)
UPID
Eastlake Business Center
Millenia
Health & Wellness
(Sports Medicine)
Sharp Chula Vista Medical Center
Scripps Mercy Hospital
Natural amenities (open space, trails, bay,
lakes)
Olympic Training Center
REI store
Medical tourism to Tijuana
UPID
Eastlake Business Center
Landfill Buffer
Auto Parkway / Landfill Buffer
Chula Vista Target Industry Clusters Report August 2013
Page 29
3.0 Reports & Background Research
Title Author Date
10 Fastest-Growing Enterprise Technology Companies – online
article from Forbes.com
Andrew Nusca, Between the Lines Jun. 2012
Advanced Biofuel Market Report Mary Solecki, Anisa Dougherty,
Bob Epstein
2012
Baja California’s Economy, Security & Why it Matters, PPT Crossborder Group Mar. 2013
Growing Industries from the Bottom Up – online article from
Forbes.com
Rebecca O. Bagley, Contributor to
Forbes
Apr. 2012
Growing Industries in need of Workers in 2012 – online article from
Forbes.com
Forbes Feb. 2012
Manufacturing Hubs: What and Why Not? Online article from
Brookings Institute
Mark Muro and Kenan Fikri,
Brookings Institute
Feb. 2013
Metropolitan Export Exchange Overview – San Diego Brookings Institute Feb. 2013
Nearshoring Strategy will Boost US Manufacturing Jobs – online
article from MRFTech.com
Dr. Chris Kuehl, Economic Analyst Oct. 2011
Offshoring? Reshoring? Nearshoring? How Will Global Mobility
Change in the next 10 Years
Grabel 2013
Safariland’s Future Growth Liens in International Business, online
article from GlobeSt.com
Natalie Dolce, Inland Empire Mar. 2013
San Diego Regional Manufacturing Sector Report Cindy Gomper-Graves & Bradley
Weinstein, South County EDC
Jun. 2012
Seven Growth Sectors Driving California’s Clean & Efficient
Economy
Collaborative Economics May 2012
Smart Grid Value Chain, Industry Overview, online excerpt from
Smart Grid: Core Firms in the Research Triangle Region, NC
Marcy Lowe, Hua Fan and Gary
Gereffi of Duke’s Center of
Globalization, Governance &
Competitiveness
2011
Southwestern College Educational Master Plan Southwestern College Mar. 2012
The Solar Value Chain: Value Chain Segments & Activities, online
information
Green Rhino Energy Mar. 2013
The Tipping Point Industries Boston Consulting Group Sept. 2012
The World’s Most Innovative Companies Forbes
Tijuana Industry Supply Chain Opportunities, PPT Tijuana EDC Feb. 2013
Tijuana Leads the Way as Mexico Heads for the Big League Co-Production International Jan. 2013
Traded Industry Clusters in the San Diego Region SANDAG Dec. 2012
What Business Should You Start? Fast-Growing Sectors for 2013
– online articles from Forbes.com
Carol Tice, Contributor to Forbes Feb. 2013
Chula Vista Target Industry Clusters Report August 2013
Page 30
3.1 Appendix
1. Applied Economics – Target Industry Cluster Analysis
a. Economic Base Screening Tables
b. Clean Tech Value Chain Sectors
c. Westside Employment Table
d. Location Factors Table
e. Occupations Table
f. Source Area Table
2. Industry Pro Forma Size based on San Diego Clusters
3. EDD Employment Baseline Data
4. Energy Efficiency Market Assessment
5. Olympic Training Center Research – Convergence of Health, Wellness & Sports
Chula Vista Target Industry Clusters Report August 2013
Page 31
3.2 Chula Vista Business Cluster Analysis – Project Team
Audrey Taylor, President & CEO, Chabin Concepts
Audrey founded Chabin after 10 years in the Economic Development field. Chabin
Concepts has been advising local communities, counties, regional economic
development organizations, and even states on their economic development programs
and policies since 1988.
Chabin uses a team approach to research a community’s competitiveness (strength,
weaknesses and opportunities), and then focusing on assets identifies “best fit targets”
and delivers a customized go-to-market strategy for the community.
Sarah Murley, Co-Founding Partner, Applied Economics
Sarah is a co-founding partner of Applied Economics. Sarah has conducted economic
base analyses, business climate assessments, target industry analyses, supplier
identification strategies, occupational assessments and labor market analyses, and
community improvement plans for numerous cities, counties, and economic development
agencies.
Frank Spano, Managing Director, Austin Consulting
Frank is responsible for managing and directing all operations of Austin Consulting.
Austin Consulting is the location strategy consulting division of The Austin Company, an
industry leader in assisting corporate client in developing national and global location
strategies, relating to community and site selection, incentive negotiations and property
due diligence for manufacturing plants, distribution facilities, R&D, services centers, data
centers and offices. Austin has completed over 1,700 consulting assignments.
Paul C. Marra, Senior Principal, Keyser Marston Associates, Inc.
Paul is a senior principal with Keyser Marston Associates, Inc. in the San Diego office.
He has over 25 years experience in real estate market and financial evaluation, fiscal and
economic impact assessments, and public/private partnerships.
Daniel Silverman, V.P., Business Development, Research on Investment
ROI, Research On Investment, is a specialized market research firm that produces
validated lead generation services based on originally sourced intelligence. ROI monitors
the trajectory of corporate investment by proactively gathering and analyzing market
intelligence on areas such as industry trends, investment trends, and specific businesses
across a multitude of geographic locations and industrial sectors. The ROI service is
unique because proprietary research methodologies are directly related to a fundamental
understanding of the corporate investment and site selection process.
Chula Vista Target Industry Clusters Report August 2013
CLIENT
Chabin Concepts
2515 Ceanothus Ave, Ste 100
Chico, CA 95973
(530) 345-0364
www.chabinconcepts.com
Applied Economics
11209 N. Tatum Blvd, Ste 225
Phoenix, AZ 85028
(602) 765-2400
www.appliedeconomics.net
Austin Consulting
6095 Parkland Blvd
Cleveland, Ohio 44121-4186
(440) 544-2617
www.theaustinconsulting.com
Keyser Marston Associates, Inc.
1660 Hotel Circle North, Suite 716
San Diego, CA 92108
(619) 718-9500
www.keysermarston.com
Research On Investment (ROI)
6300 Du Parc Avenue, Suite 309
Montreal, Quebec H2V 4H8
(514) 495-5231
www.roivision.com