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INDUSTRIAL CLIMATE OF SAN DIEGO.
Term Paper ID:28557
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Essay Subject:
Growth of Southern California city. Composition of its economy; major industries; trends.... More...
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9 Pages / 2025 Words
9 sources, 17 Citations,
MLA Format
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Paper Abstract:
Growth of Southern California city. Composition of its economy; major industries; trends.
Paper Introduction:
SAN DIEGO’S INDUSTRIAL CLIMATE:
RIDING THE TECHNOLOGICAL REVOLUTION
The last decade has been one of immense change. The face of industry has shifted yet again, this time in effort to accommodate a world that is digitizing, globalizing and of course, shrinking. The San Diego area in particular is in the midst of a sustained economic boom. Due largely- but not wholly- to the prosperity of the United States at large, San Diego has made the most of the technological revolution and has established itself as a haven for start-up tech firms and rapid development.
Of course, the tried-and-true local industries that have long sustained San Diego do continue to create revenue in the region. Tourism, always a factor in San Diego, persists as an agent for the creat
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1999: A16.Duffy, Tim. "Moving Forward on Airport Planning." The San Diego Union- Tribune Jul. Andyet, the 9 s have left San Diego with some difficult obstacles that must beovercome if the region is to be effectively competitive in the globalmarketplace. The face of industryhas shifted yet again, this time in effort to accommodate a world that isdigitizing, globalizing and of course, shrinking. In the emerging globaleconomy, many San Diegans feel pressured to equip the city with all that itneeds to truly service the world. Most obvious is the airport situation.Harvey P. Returning to the export trade figure, Kathy Ward, writer for The SanDiego Union-Tribune, remarks that even the $8.6 billion mark may not be anadequate representation of just how much has actually been generated byinternational trade in San Diego. As William B. 6, 1999: B-9.----------------------- 9 BILLIONS OF DOLLARS GENERATED BY EACH OF THE MAJOR INDUSTRIES OF SAN DIEGO IN 1998 2.8 2.1 8.6 TOURISM MILITARY EXPORT TRADE 9- 7- 5- 3- 1- -OTHER MEXICO BILLIONS OF DOLLARS MAJOR INDUSTRIES In this, new challenges naturally arise. Beginning the 9 s with recession only to round outthe decade with a boom, San Diego not only rode the wave of technology, butalso helped to pioneer the whole movement. It is a trend that may, ifcultivated carefully, bring San Diego further into the fore as a city ofthe future. "Sun, Fun, and Ph.D.s, too." Forbes May 31, 1999: 22(1).Fitch, Larry. Jim Battey, in an article published in 1999 in InfoWorld, joyfullyproclaimed that "The recession that struck a major blow to the SouthernCalifornia economy earlier this decade is history, and the positivebusiness climate is creating a rosy job outlook for IT professionals"(81).He specifically mentions San Diego in his analysis, citing that the regionhas become home to the most cutting edge companies in the tech-sector. As surely as the rest of the United States experienced recession inthe early 9 s, so too did San Diego. This one collective understanding may be enough to secure San Diego'sbid as a city of the future. Throughout the 9 s, San Diego has struggled against its ownrestrictions; by fate or by choice it has met resistance. Prolificdefense contracts helped ensure a high per capita income for decades(Duffy44). Others reflect on a lagging educational system that has been churningout an alarmingly low percentage of high-school students that have aninterest in a career in a technology-related field: only 7 percentaccording to The San Diego Union-Tribune, a "startling statistic for aregion that is trying to attract some of our nation's leading technologycompanies"(Fitch G-3). 6, 1998: G-3.Hippaka, William H. This growth isintrinsically linked to San Diego; as Business Mexico reported in April of1999, "Tijuana does the manufacturing for the high-tech research anddevelopment generated in San Diego"(Duffy 45). But it is safe to say that nearly all SanDiegans can agree on one thing: that the science and technology industriesmust be cultivated carefully if a lasting socioeconomic success is to beachieved(Benford, A-16). Although clearly, there is muchfarther to go. "Why San Diego Needs a Mayor With Global Economic Vision." Feb. On the one hand,San Diego has ushered in an era of "technology clusters", phenomenally lowunemployment, and high standards of living. In a 1999 issue of Forbes magazine, alocally-based San Diego founding executive reflected that "It's always beenthe thing in San Diego to have your own business...the community has[always] been socially supportive of the start-up"(Ferguson 24). By the late 195 s, San Diego had established itself in two distinctways. With respect to tourism, it is worth noting the potency of Mexico- 2.8billion dollars- contrasted with the remainder of the total- 2.1 billion.San Diego and Tijuana have become twin metropolises, engaged in a symbioticrelationship that is mutually beneficial. Obviously, the age of technology is upon us. Essentially, most agree that if San Diego is to continue its economicboom it must make some very specific adaptations that will combat some ofthe aforementioned problems. Asa result, unemployment has hit historically low levels, and multinationalcompanies are beginning to invest and locate operations in the region.Ultimately, the result has been the emergence of thousands of localbusinesses (Battey 81). By 2 2, international trade is expected toout-tally tourism and the military combined in terms of dollar power in theSan Diego economy (Ward B-11). 1999: 44-45.Ferguson, Tim W. "Building a Better San Diego Work Force." The San Diego Union- Tribune Sep. San Diego will continue to take the next steps, ideallyenjoying an environment that can commit its industries to the internationalmarket without hindrance, and in the process continue to create jobs andwealth. Military bases offeredopportunity for employment for servicemen imported to the region. Ward recognizes that"international trade...[is] one of the driving forces behind our[SanDiego's] growing regional prosperity into the 21st century"(B-11). After the second World War, San Diego played host to an economy thathinged largely upon the defense industry. "The Changing Office Space Market in Downtown San Diego, California: 1958-1967." Bureau of Business and Economic Research April, 1967.Spaulding, Mark. Between 1958 and 1967, San Diego experienced an office spaceboom, as office tenants began to demand more options for their businesses.The population of San Diego was growing, and the city needed to accommodatethe surge. As the high-tech industryin San Diego booms, so too does the manufacturing industry of Tijuana boom;under such an arrangement, tourism between the two cities -- indeed the twocountries -- begins to flourish as well. And SanDiego, having seen its aerospace and real estate industries pitch andswoon, took a new step in the start-up direction and began to cultivate thenext wave; in this next phase of industrial growth, small to mid-size start-up businesses in biotechnology, software development and telecommunicationssoon became the new "growth engines" of the San Diego economy (Duffy 45). One, it was a haven for those who relied upon the military foreconomic opportunities, and two, it was a destination for any who wished tovisit or settle in a beautiful place with a near-perfect climate. Thelegacy of the 9 s has therefore been a double-sided one. On the other hand, if thatboom is to continue, San Diego must improve its education system, developstrong business and political leadership, create a more efficientinternational airport, and cultivate its workforce from within(Ward B-11). By the 197 s, the defense contract market was beginning to wane,although the arms buildup in the 8 s would provide a bit of a bump(Ferguson 23); when the Cold War officially drew to a close, a wave ofmilitary base closings prompted a reciprocal wave of suffering in San Diego(Duffy 44). Works CitedBattey, Jim. Of course, the tried-and-true local industries that have longsustained San Diego do continue to create revenue in the region. Tourism,always a factor in San Diego, persists as an agent for the creation ofwealth. The city has not only grown,but grown into a powerhouse that is on the cutting edge of an industry thatprovides high-paying, highly skilled jobs. Thechart below indicates this breakdown: The chart reveals that as of 1998, the major industries comprising theSan Diego economy were split three ways. Ever since the 197 s, the numberof in-bond assembly plants, or maquiladoras, in Tijuana has grown, so thattoday Tijuana has more than any other city in Mexico. 17, 2 : B-11.White, Harvey. "Special Millennium Issue/Science & Technology; Sunshine Science." The Los Angeles Times 25 Jul. Forbes notes that during that 9 s and into today, San Diego has been"removed from the rivers of commerce; its airport...has few internationalflights; its water port and rail lines are not built for trade; itshighways are choke points"(Ferguson 22). However, they have been radically outpaced: in 1994, for example,the export trade figures were half of what they were by 1998, and thegrowth seems to be continuing. SAN DIEGO'S INDUSTRIAL CLIMATE: RIDING THE TECHNOLOGICAL REVOLUTION The last decade has been one of immense change. If it did, the total would surely be even higher. White explains in The San Diego Union-Tribune that because high-tech companies are so typically international, "improving the quality ofair service in San Diego is...vital to keeping our companies competitiveand making our region an attractive place to do business"(B-9). 2 : 1 -14.Ward, Kathy; Forsyth, Richard. Hippaka reported in 1967, city officialseventually agreed that it was time to "do something about downtown."Construction followed as offices were built new or upgraded, and deepanalyses of real estate development possibilities were conducted in orderto rework the office space market (Hippaka 1-11). The figure "represents only tangibleproduct exports," she explains, "It does note include the service sector,software sales, licensing, royalties, and other income from intangiblesources"(B-11). In San Diego, themovement is particularly vital, as much of its industry has relied upon itfor substance and prosperity. These things have prevented SanDiego companies from being as competitive with analogous companies incities such as San Francisco, Los Angeles, and Seattle. The international behavior of many of the emerging San Diegobusinesses helps to shore up this impressive tally. Put in context, it is clear that San Diego has animperative to protect the incredible potential for wealth that hinges uponthe ability of its own technology clusters to compete with and service theinternational market (Ward B-11). Clearly, San Diego and Tijuana have established arelationship that can be very economically rewarding- for those residing onboth sides of the border. Converting Magazineobserved that in San Diego, the companies of the past have been highlystructured and restricted, and that if they hope to compete in the venture,a value exchange must take place: "Strategy, structure, and systems need togive way to purpose, process, and people"(Spaulding 1 ). Many over the last ten years have expressed concern that SanDiego's industrial infrastructure will require a significant overhaul if ithopes to sustain its international trade figures. Due largely- butnot wholly- to the prosperity of the United States at large, San Diego hasmade the most of the technological revolution and has established itself asa haven for start-up tech firms and rapid development. Throughout thepast ten years, however, it has been the emergence of the tech-communitythat has made San Diego the up-and-coming city that it is, and it will mostlikely be the tech-community that will continue to shape the city in thefuture. Unemployment rose, defense contracts dried up, and the realestate and financial sector began to fall into disarray(Ferguson 23). Thus, the composition of the San Diego economy has grown fragmented.No longer exclusively a military-supported community, different industrieshave taken off to create a three-pronged system of economic stability. In a time of globalization,interconnectedness is a natural consequence, one which, in turn, createsinterdependence. Today, ideasabound as to which are the best prescriptions for the future. Ultimately, the years 1989 to 2 have been, for San Diego, a timefor growth and triumph. Tourism and the Military, the oldstandbys for revenue, have not fallen by the wayside completely in recentyears. "Strong Economy Propels San Diego, Los Angeles IT Job Market Growth." InfoWorld June 14, 1999: 81.Benford, Gregory. The industrial composition of theregion was ripe for a change. At thistime, the city expanded and subsequently began to hear cries fordevelopment. In recent years, San Diego has done much to accommodate Mexicantourists. The San Diego area inparticular is in the midst of a sustained economic boom. The relationship between San Diego and Tijuana is anappropriate example of such a phenomenon. The military presence also continues to offer opportunities foremployment for many who chose to make San Diego their home. Many others haveagreed, pointing out that in addition to its physical impediments, SanDiego must overcome some psychological ones as well. The tech-sector- largely an export-oriented industry- clearly must not be hindered by an environment thatcannot connect it to those far-off places that it intends to service. "AIMCAL Explores New Frontiers at San Diego Management Meeting." Converting Magazine Apr. Of course,not all will agree upon these. The proliferation of the export trade industry has been nearlyexclusively a function of the burgeoning tech-sector and the trend towardsglobalization. "Isla California." Business Mexico Apr. "San Diego stores do a brisk business catering to Mexicancitizens who cross the border to shop" reports Business Mexico; in 1992 itwas estimated that between 45, and 6 , individuals crossed into theUnited States to go shopping in San Diego, creating a new surge ofrevenue(Duffy 45).
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