Manufacturing in San Diego: Local Impact, Global Reach

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.

• 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.

Though often overshadowed by the region’s research and development (R&D) prowess in Life Sciences and Technology, San Diego’s Manufacturing sector is integral to the regional economy—ranging from traditional to advanced manufacturing. San Diego is home to well-known companies such as  General Atomics  and  Illumina  in the central part of the county,  Solar Turbines  in South County,  ASML  in North County, and  Taylor Guitars  in East County, among many more.

Click through the map to explore the region's manufacturing firms.

Comprising 4,429 firms—a number that has risen each year at a cumulative 13.4 percent since 2017—the sector collectively employs 121,027 workers. This means nearly one in 10 private sector jobs in the region are manufacturing jobs. Not only are these jobs plentiful, but they are highly paid, with an average annual wage of more than $103,000, which is 31 percent higher than the region’s average.

The significance of the Manufacturing sector is further underscored by its contribution to the region’s economic output. In 2023, the sector directly contributed $28.3 billion to San Diego’s economy. This accounts for 10 percent of San Diego’s Gross Regional Product—a share that has remained consistent since 2017. When factoring in supply chain activities and consumer spending from wages, the sector supports an additional 146,000 jobs across the county. This means that for every 100 jobs added in manufacturing, another 121 jobs are created elsewhere in the economy. All this amounts to a total regional economic impact of 266,000 jobs and a staggering $47 billion for the regional economy annually.

Manufacturing growth in San Diego is driven by three primary factors: talent, a strong local value chain, and innovation.

The region boasts robust university and vocational programs, producing  a pipeline of skilled workers  who gain invaluable expertise at market-leading companies. This creates a talent pool that is not only diverse but also highly specialized. The local value chain further enhances San Diego’s appeal, as the proximity to other innovative companies fosters strong customer and supplier relationships. Innovation is a major magnet for companies seeking to establish themselves in San Diego, as well as those wishing to expand here long-term. The region fosters new ideas, whether from a local university or spin off from an established company.

Moreover, San Diego's proximity to Mexico offers a strategic advantage for manufacturers established locally, especially as the pandemic renewed calls for nearshoring. Baja California is an established hub for medical device manufacturing and offers an attractive option for lowering production costs while staying close to company headquarters. Many local manufacturers leverage Tijuana and Tecate for production where labor costs can be up to 12 times less expensive while leveraging San Diego for activities such as R&D, prototyping, assembly, and quality assurance. The ability to tap into Mexico’s labor market not only reduces production costs but also enhances the flexibility and scalability of manufacturing operations. San Diego manufacturers also benefit from access to a broader talent pool that resides in Baja,  which adds 3,700 STEM graduates each year . This cross-border dynamic encourages knowledge sharing and innovation as well as responsiveness to changing market conditions and customer needs. It also raises San Diego’s competitive standing in the global manufacturing landscape and ultimately strengthens the region’s economic resilience.

As a result of these drivers, most manufacturing companies in San Diego follow four pathways to growth. While each company’s story is unique, there are notable similarities that can explain why companies decide to manufacture in San Diego (or not). These pathways highlight the journeys that San Diego offers to companies, both established and new, and provide helpful insights into the region’s strengths and opportunities:

1. Local specialization: Smaller-scale manufacturers which may have local or global reach and tend to play a specialized role in the manufacturing value chain locally.
2. Scale from San Diego: Manufacturers which start in San Diego and scale to a larger size elsewhere while continuing to operate from San Diego.
3. Nearshore production: Companies whose core innovation or design was born in San Diego or who have headquarters/corporate operations here, but move production to another location nearby (e.g. Mexico).
4. Offshore production: Companies whose core innovation or design was born in San Diego or who have headquarters/corporate functions here, but do their physical manufacturing offshore (e.g.  Singapore ).

Beyond San Diego’s strengths in talent, local value chains, and innovation, the region’s vibrant culture and appealing lifestyle truly set it apart. While San Diego is the second most populous county in California, it still fosters a collaborative, closely connected community that seamlessly blends professional success with the region’s natural beauty and quality of life. This unique combination allows businesses and their employees to thrive in a region  celebrated  for its work-life balance and stunning weather. San Diego’s environment encourages companies to innovate and grow, supported by a culture that values partnerships, sustainability, and a shared commitment to delivering  life-changing products and solutions . This helps attract and retain top talent drawn not just to the job opportunities but also to San Diego itself.

Since 2017, manufacturing job growth in San Diego has outpaced both California and the U.S. The region added jobs during the pandemic, while California and the U.S. contracted. More recently, however, San Diego’s Manufacturing sector has experienced declines in employment. Between July 2022 and December 2023, the sector suffered a 5.2 percent drop in employment, erasing nearly all the post-pandemic recovery job gains and declining to levels last seen in early 2021. This reduction in employment can be partly attributed to larger companies moving operations outside the region,  as federal investments have incentivized them to do so .

However, San Diego has consistently increased its number of manufacturing firms. Since 2017, the number of manufacturing establishments has risen by 13.4 percent, increasing each year at an average annual rate of 2.1 percent. Despite workforce reductions by larger manufacturers, this steady expansion in the number of firms highlights the sector’s resilience and innovative spirit.

This growth is primarily driven by small firms with fewer than 10 employees. Of the 4,429 manufacturing establishments in the region, 88 percent have fewer than 50 employees, and approximately 37 percent of the workforce is employed by firms with fewer than 100 people. This illustrates that San Diego provides a favorable environment for early-stage manufacturing companies, supported by its strong innovation ecosystem.

With more than 121,000 jobs tied to manufacturing in the region, the type of work found within the sector varies tremendously. Assemblers and fabricators are the most abundant roles within manufacturing, representing 11 percent of the total. However, as manufacturing processes become more advanced and automated, there is a growing reliance on software related skills. Software development positions within the sector have increased 19 percent since 2019 and now represent nearly four percent of all manufacturing jobs.

Greater reliance on technology and software skills may help explain why more manufacturers are able to start operations with fewer workers. This shift in manufacturing work has driven average wages up significantly from nearly $65,000 in 2017 to more than $103,000 in 2023—an increase of nearly 60 percent.

This evolution in manufacturing roles is also evident in job postings. During the COVID-19 pandemic, many entry-level positions, such as assemblers, were open to meet the surge in demand for goods production. However, that demand has since tapered off. In the past two years, there has been a noticeable increase in postings for roles requiring more experience and technical expertise, like machine operators and quality inspectors.

Despite the increasing technical nature of local manufacturing processes, accessibility to these jobs has improved. The share of job postings that require a bachelor’s degree in San Diego has decreased from 40 percent in 2017 to 28 percent in 2024. Similarly, the share of job postings that require no experience, or zero to one year of experience, has grown from 54 percent in 2017 to 63 percent in 2024 (see San Diego Regional EDC's Manufacturing Talent Demand report  here ). It’s worth noting that this only reflects the positions that are posted online; many manufacturing jobs, particularly those filled by skilled tradespeople, are often not posted online.

While job opportunities may be more accessible to those without college degrees and little work experience, there are fewer opportunities available overall. Demand for workers in the sector has cooled in the past year. Unique job postings for San Diego manufacturing roles have dropped significantly, from 1,818 in June 2022 to just 852 in August 2024.

As with employment, San Diego manufacturing is also outperforming California and the U.S. in firm count, even after the recent dip in employment. Since 2017, the number of firms in San Diego has increased by more than 13 percent, whereas California and the U.S. have grown by just six percent and 11 percent, respectively. However, in recent years, national growth has accelerated due to federal initiatives like the Inflation Reduction Act (IRA) and the CHIPS and Science Act, which have bolstered manufacturing expansion across the country, principally outside of California. As employment grows across the U.S., San Diego has experienced a decline over the last year, as some larger manufacturing companies have moved operations outside the region.

A comparative analysis of 11 peer metropolitan areas with similar manufacturing capabilities reveals that while San Diego’s Manufacturing sector has experienced strong firm growth buoyed by its capacity for innovation and skilled talent base, there are areas where it lags its peers. Talent attraction is a critical challenge for all local employers. San Diego manufacturing is no different, ranking eighth out of 12 in compensation. More concerning is that after accounting for the region's high cost of living (COL), San Diego drops to 11th place, only beating out Los Angeles and just behind Boston in COL-adjusted earnings. Additionally, an analysis done by Arizona State University in  Doing Business in North America  revealed that San Diego is tied with San Jose for 9th in terms of ease of doing business. This metric accounts for several factors, including starting a business, employing workers, land and space use, and paying taxes. A high COL impacting worker retention combined with difficulty doing business could certainly explain some of the shift in growth to outside of the region.

See how San Diego compares to peer metros by selecting the metrics on the left.

Local manufacturers shared challenges with getting their operations running in San Diego. One manufacturer working in technology said San Diego’s relatively slow permitting processes compared to other countries or states causes delays in their “time to market.” These delays are critical in a fast-paced sector, prompting tough decisions about whether to relocate operations to regions with more efficient and transparent regulatory frameworks and processes.

Most manufacturing jobs in San Diego are tied to the production of consumer goods from world class brands such as 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.

While Life Sciences, Technology, and Aerospace are well known for their innovation and growth, what is not well known is the large concentration of manufacturing jobs tied to each. Innovation industries represent 46 percent of all manufacturing jobs in the region. San Diego’s innovation manufacturing employment concentration is more than double the national average.

San Diego’s Life Sciences manufacturing employment concentration ranks third among peer metros, at 2.5 times the national average. This falls behind only Durham and Minneapolis, while beating out Life Sciences heavyweights of San Francisco and Boston. Technology manufacturing in the region is nearly double the national average; fifth among peer metros and notably greater than both Boston and San Francisco. Employment and firms in the Technology industry have had growth since 2017, ranking fifth and seventh among peers, respectively. Aerospace manufacturing in the region is highly concentrated relative to peers, at 2.5 times the national average. However, employment in this vertical has declined in the past few years. While San Diego excels in growth and job concentration, it lags peer metros for COL-adjusted wages across all three verticals.

See how San Diego compares to peer metros by selecting the sub-industry and metrics on the left.

San Diego consistently ranks among the  top three Life Sciences markets  in the nation, alongside Boston and the San Francisco Bay Area, based on metrics like commercial real estate, funding, and talent. While celebrated for its robust R&D capabilities, the region’s strong Life Sciences manufacturing presence often goes underappreciated. This sector includes Bio Medical Devices (surgical equipment and glucose monitors), and Biotechnologies and Pharmaceuticals (e.g. mRNA reagents for vaccines), all requiring specialized, technical processes.

San Diego’s thriving Life Sciences ecosystem attracts R&D companies that often require manufacturing operations as they scale. These locally-grown companies benefit from in-house manufacturing by being in a top Life Sciences hub, with access to top-tier talent and collaborative opportunities with industry leaders. This is especially important for companies at critical growth stages, where in-house manufacturing ensures strict quality control essential for product refinement.

San Diego is also home to numerous contract manufacturers and contract development manufacturers serving Life Sciences companies. Firms such as Argonaut Manufacturing Services, Catalent, and Wacker Biotech specialize in high-precision manufacturing for biopharmaceuticals and diagnostic devices. Being part of a Life Sciences hub allows contract manufacturers to attract high quality talent and closely collaborate with clients, iterate quickly, and focus on high-value, small-scale production. Proximity to customers and a robust talent pool is a significant advantage, enabling them to thrive despite higher operational costs.

Click to swipe through company profiles.

Despite a recent decline in manufacturing jobs nationwide, the long-term prospects of Life Sciences Manufacturing in San Diego remains promising. RNA therapeutics is one area with tremendous growth potential and where  San Diego is already a national leader .

The region has a strong track record in attracting venture capital and NIH funding. San Diego’s collaborative ecosystem, access to talent, and high quality of life will continue to make it an attractive destination for Life Sciences Manufacturing. The deep integration of R&D and manufacturing will, in turn, drive expansion for both in-house manufacturing operations and contract manufacturers in the region.

Yet challenges remain. High rent and labor costs impact early-stage companies when deciding where to scale future manufacturing. A lack of manufacturing-ready space for Life Sciences companies can deter growth. Promoting an environment where talent and early-stage R&D ventures can thrive will be crucial to San Diego’s next wave of Life Sciences Manufacturing.

San Diego's Technology Manufacturing sector stands as a beacon of innovation and economic growth, anchored by semiconductor design giants like Qualcomm and advanced machinery manufacturers like ASML (Cymer). This vibrant ecosystem is characterized by rapid technological advancements, particularly in advanced electronics and telecommunications.

The Tech manufacturing landscape in San Diego is diverse and robust, encompassing four key industry verticals. Together, they employ more than 19,000 manufacturing workers, with an average annual salary of $142,000. This significant employment base and high wages underscore the sector's importance to the regional economy.

San Diego's tech manufacturing strength is evident in wireless equipment, which spans 60 establishments employing nearly 5,700 people. The region boasts a concentration of wireless equipment manufacturing jobs that are nine times greater than the national average, highlighting the region's specialization and competitive advantage in this area. Though historically a strength in San Diego's tech manufacturing, it was the only tech vertical to lose jobs (951) in 2023.

San Diego's Tech Manufacturing sector competes with other prominent hubs, including San Jose, Dallas-Fort Worth, Austin, Phoenix, and Boston. While San Diego's average tech manufacturing wage of $142,000 is impressive, it is lower than half of this peer group, with most competitors offering even higher wages. This is compounded by a high COL.

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San Diego is on the brink of a new era in Tech Manufacturing, full of opportunities for innovation and growth. Though recent federal funding favored competitor metros like Phoenix, with the right support, San Diego can lead the next wave of technological advancements. To stay ahead of competitors, it is essential for local leaders to actively engage with federal legislators to ensure that San Diego remains a top contender for funding. Expanding a skilled labor pool, especially among non-college educated workers, will be key to powering the next generation of tech manufacturing professionals.

San Diego's Tech sector thrives on deep connections with its powerhouse industries like Life Sciences and Aerospace, and with emerging fields like Cleantech and Semiconductors. This synergy fuels groundbreaking collaborations that keep San Diego leading in technological innovation. Proximity to Tijuana strengthens its strategic edge and enables rapid product development and efficient mass production just across the border. By continuing to support a robust talent pipeline and innovation, San Diego will be well-positioned to continue manufacturing cutting-edge technologies that will shape the future.

San Diego has long been a major hub for Aerospace and Navigation Technologies manufacturing, building on a history of collaboration with both military and civil aerospace leaders. The sector benefits from the region’s large veteran population of  more than 200,000 , which provides a skilled workforce with relevant experience.

Aerospace plays a vital role in the local manufacturing economy, employing approximately 17,000 manufacturing workers, with an average annual wage of $123,000. San Diego's aerospace landscape features major players like  GKN Aerospace ,  Northrop Grumman , and  General Atomics , alongside an array of smaller, specialized companies. This mix fosters innovation and resilience within the sector. Unlike other Manufacturing industries, Aerospace relies less on cross-border production due to stringent security requirements and defense-related restrictions. This focus on domestic capabilities strengthens the local industry and aligns with national defense needs.

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San Diego is a key player in the Aerospace industry, competing with other major hubs like Seattle, Los Angeles, Orange County, Dallas-Fort Worth, Phoenix, and Denver. The region benefits from its strategic geographic location and access to a highly skilled workforce, making it an attractive site for aerospace and navigation technology development. San Diego’s Aerospace industry, with an average wage of $124,000, faces competition in attracting top talent from markets like Dallas ($136,000) and Phoenix ($121,000). Additionally, San Diego has the highest COL among its aerospace peers, complicating retention efforts.

Despite challenges, San Diego's Aerospace industry boasts significant strengths and opportunities. One key advantage is its robust talent pipeline; the region ranks highly in producing relevant bachelor's degrees, with 1.1 degrees per thousand residents, surpassing San Diego’s peers. This strong educational foundation is crucial for sustained growth in the sector.

San Diego is a leader in Unmanned Aerial Systems (UAS) development. Key players like General Atomics and Northrop Grumman anchor the region's status as a pivotal hub for drone innovation, with applications that extend from defense to emergency response. Expansions by companies such as GA-ASI and GKN Aerospace demonstrate that San Diego can still attract major businesses, particularly those implementing high-efficiency production techniques. These factors collectively position San Diego's Aerospace industry for continued growth and innovation.

Looking ahead, the future is promising. San Diego is seeing growth in drone technology, satellite advancements, and space technologies. The region’s drone market is expected to expand rapidly, with  military applications increasing by seven percent each year  and  commercial uses rising by 25 percent . Innovative companies like Firestorm Labs are at the forefront of this transformation, developing advanced drone technologies through lower cost measures and significantly reduced timelines. This vibrant ecosystem not only fosters innovation but also positions San Diego as a leader in shaping the next generation of aerospace technologies, driving the industry forward.

As San Diego's manufacturing landscape evolves, two industries are emerging as key drivers of future growth and innovation: Cleantech and Semiconductors. While currently smaller contributors to the region's manufacturing ecosystem, global demand and evolving policy ambitions give these industries significant expansion potential and represent critical opportunities for San Diego to lead in next-generation technologies.

Cleantech is a relatively small player in San Diego's manufacturing scene today, with about 1,500 manufacturing workers. However, San Diego’s broader Cleantech industry encompasses a range of R&D and design services startups poised to experience explosive growth. In total, San Diego’s  Cleantech industry  spans more than 900 establishments that collectively employ nearly 12,000 people. What makes Cleantech particularly attractive is its combination of high growth and high wages. Cleantech jobs grew 27 percent between 2017 and 2023; meanwhile, the average salary is nearly $124,000. Even more impressive, manufacturing roles within the industry pay $192,000. 

Several favorable factors make San Diego an attractive investment in Cleantech manufacturing. Federal legislation, including the IRA and the Infrastructure Investment and Jobs Act, is providing substantial funding and incentives for clean energy and sustainable technologies. Combined, these two pieces of legislation  offer up nearly $100 billion  toward batteries, vehicle charging, sustainable fuels, and related technologies. This national push is complemented by California's proactive climate policies— such as its cap-and-trade program, which has funded $28 billion in climate investments— which position the state as a testing ground for Cleantech innovation and implementation.

San Diego is well-positioned to capitalize in several key areas of future Cleantech manufacturing. Expertise in battery technology and electronics makes it an ideal hub for leadership in electric vehicle component manufacturing. Additionally, San Diego's scientific prowess and proximity to renewable energy sources position it to spearhead advancements in low-carbon hydrogen fuel technology. The region has also demonstrated leadership in long-term sustainable solutions. Its coastal location and established maritime industry experience present an opportunity for San Diego to emerge as a hub for offshore wind energy equipment manufacturing. General Atomics is the world’s largest private participant in fusion energy research, operates the DIII-D National Fusion Facility in San Diego on behalf of the Department of Energy (DOE), and has been the sole-source supplier of targets and target support services for the DOE National Nuclear Security Administration’s inertial confinement fusion program since 1991.

The combination of local expertise and supportive policy framework at both the state and federal levels positions San Diego as a prime location for Cleantech growth. However, there are some hurdles that need to be addressed to ensure success. One local battery manufacturer expressed issues with regulations that fail to accurately capture the new technologies in the industry. These gaps in existing regulations make it difficult to implement new technologies and cutting-edge solutions aimed at reducing carbon emissions. Addressing these regulatory challenges will be crucial to unlocking San Diego’s full potential as a leader in Cleantech.

The Semiconductor industry in San Diego is rebounding due to increased global demand and the push for technological sovereignty. U.S. semiconductor manufacturing capacity is  projected to triple by 2032 , fueled by federal investment. This presents a significant opportunity for San Diego to expand its footprint in this critical sector.

San Diego's semiconductor manufacturing ecosystem is anchored by global leaders like ASML, which produces cutting-edge lithography equipment essential for chip production. The region's strengths lie in a robust ecosystem of companies spanning the entire semiconductor value chain, from design and equipment manufacturing to specialized services. This established network is complemented by a deep pool of talent in related fields like Wireless Communications and Aerospace. San Diego's top universities and research institutions drive innovation and investment, while its location plays a crucial role, offering access to Asia-Pacific markets and being a gateway to North American semiconductor supply chains.

San Diego can differentiate itself by focusing on high-value, specialized manufacturing processes that leverage the region's unique blend of technical expertise and cross-sector knowledge. By emphasizing areas where San Diego has a competitive edge, like advanced chip design, specialized semiconductor equipment, next-generation solar technologies, and innovative energy storage solutions, the region can carve out a distinctive niche in the global Cleantech and Semiconductor manufacturing landscapes. Finally, leveraging San Diego's strategic location to forge international partnerships, especially with companies and research institutions in the Asia-Pacific region for semiconductors and in Europe for cleantech innovations, will help position the region as a global leader in these industries.

San Diego County’s Manufacturing sector stands as a vital pillar of the regional economy, characterized by its diversity, innovation, and significant economic impact. This sector’s strength lies in its ability to span traditional industries while excelling in innovation-driven fields such as Life Sciences, Technology, and Aerospace.

San Diego’s thriving innovation ecosystems drive the Manufacturing sector. These ecosystems foster cutting-edge research, attract venture capital, and spawn new technologies that often require specialized manufacturing capabilities. The region’s talent pool, bolstered by top-tier education programs and a high concentration of STEM graduates, provides crucial advantage for local high-tech manufacturing operations. Proximity to Mexico, particularly Tijuana, offers unique opportunities for cross-border manufacturing collaborations, allowing companies to optimize costs while maintaining close oversight of production.

Cleantech and Semiconductors represent the vanguard of San Diego's manufacturing future. By strategically investing in these industries, fostering innovation, and leveraging their unique strengths, San Diego is poised to become a global leader in both areas. As these industries grow, they will not only drive economic prosperity but also set San Diego up to solve some of the world's most pressing technological and environmental challenges.

Manufacturing success in San Diego stems from companies finding unique pathways that provide the flexibility to adapt strategies as they grow and evolve. However, challenges remain. The region’s high COL, expensive 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. Limited availability of manufacturing-ready facilities, particularly for growing Life Sciences companies, can also hinder expansion.

However, these challenges also present opportunities for creative solutions. To sustain its current position of strength in Life Sciences, Technology, and Aerospace, and to capitalize on the growth potential in both Semiconductors and Cleantech, San Diego should focus on several key strategies:

• Cultivating talent: Expanding specialized training programs and fostering partnerships with local  universities and training programs  will ensure a steady pipeline of skilled workers for high-tech manufacturing fields. Expanding opportunities for non-college educated individuals through internships and apprenticeships will be critical.
• Catalyzing innovation: The creation of innovation hubs and regulatory sandboxes can facilitate rapid prototyping and testing of new technologies, accelerating the pace of innovation. Cross-sector collaboration between established players and startups should be encouraged to drive innovation and speed up the commercialization of new technologies.
• Infrastructure investment: The development of specialized manufacturing facilities and improved energy infrastructure will also be crucial to support the unique needs of semiconductors and cleantech production. Increasing the availability of manufacturing-ready facilities, particularly those with cold storage and shared spaces for startups, will cater to both R&D and production needs, alleviating financial pressures in the critical early stages of business development.
• Coordination and championing: Working with local and state governments to create favorable policies to improve time to market and align incentives will be essential. San Diego needs coordinated and consistent messaging from its diverse base of manufacturers to secure support for the sector’s most critical needs. Organizations such as the San Joaquin Valley Manufacturing Alliance, Manufacturers’ Council of the Inland Empire, and Association of Manufacturing Bay Area have united their regional stakeholders to successfully advocate for their respective manufacturing ecosystems.

In San Diego’s high-cost market and California’s stringent regulatory environment, companies across all sectors are increasingly weighing the tradeoffs of operating here versus lower-cost regions. A clear understanding of the region’s strengths and challenges is crucial for shaping the future of manufacturing in San Diego, whether in Life Sciences, Technology, Aerospace, or other industries. By adopting these strategies to focus on regional investments, San Diego can cultivate a vibrant manufacturing ecosystem that fosters innovation and drives economic growth for years to come.

For the methodology and additional details, click  here .

The report was authored by San Diego Regional EDC in October 2024. To learn more visit  sandiegobusiness.org/about-the-region .