February 22, 2022

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The Ahlers Center for International Business at the University of San Diego (USD) released a report that provides an in-depth analysis of the characteristics, dynamics, and impacts of the CaliBaja regional economy. The San Diego Regional Chamber of Commerce partnered with USD for this research to help inform policy and influence economic growth within the CaliBaja region.  

“This report is important for the Chamber and regional stakeholders, as it helps us address challenges and opportunities for the binational region with a collective voice.  It also serves as an essential tool for promoting the development of policies that drive our economy through efficient cross-border trade, along with strong international business, political, and cultural relationships,” said Jerry Sanders, San Diego Regional Chamber President, and CEO.  “We are very grateful to USD for this in-depth analysis focused on growing our cross-border workforce and regional economy.”

Combining the border economies of the U.S. state of California and the Mexican state of Baja California, the CaliBaja regional economy is the largest integrated economic zone along the U.S.-Mexico border. With a regional GDP of nearly $250 billion, “CaliBaja” is home to diverse industries, including some with powerful manufacturing capabilities that drive cross-border economic activity and create jobs in both the United States and Mexico. 

This report was made possible by The Ahlers Center for International Business’ Move Forward program – which connects professors with local businesses to solve a current organizational challenge. 

Key Takeaways from the Report:

CaliBaja’s educational institutions are preparing the region’s STEM workforce. A total of 30,932 higher education degrees were conferred in San Diego County and 18,800 were conferred in Baja California in 2018, with 32% and 38% awarded in the STEM fields, respectively. 

The region’s manufacturing strengths helped CaliBaja weather the COVID-19 pandemic. While COVID-19 struck certain industries hard —with severe job losses in Arts, Entertainment, and Recreations (-51.7%) and Accommodation and Food Services (-51.4)— job losses were much lower in Manufacturing (-7%), Information (-8.4%), Professional, Scientific, and Technical Services (-5.9%).

Much of the region’s high manufacturing capability comes from the Mexican side. The region has a strong manufacturing base compared to other parts of the United States and Mexico, particularly in areas like audio-visual manufacturing and medical devices. In 2018, Tijuana had 41 industries (including 27 in manufacturing) that were well above average in the number of workers, while Mexicali had 49 such industries (including 17 in manufacturing). By comparison, San Diego had high concentrations in 35 industries (10 in manufacturing). Imperial had high concentrations in 27 industries (one in manufacturing). 

The strength of the CaliBaja economy has made it attractive to outside investors. Baja California attracts over a billion dollars a year in foreign direct investment (FDI), with the majority of that investment in manufacturing. Venture capital flowing into San Diego has increased sharply in recent years and topped $2 billion in each quarter from 2020Q4 to 2021Q2, mainly in the life sciences (biotechnology, pharmaceuticals, and genomics). 

Improved infrastructure is needed to create jobs and promote investment for both countries. Continued infrastructure investments—including the construction of the Otay Mesa East port of entry for trucks and commercial vehicles—are urgently needed to enable the CaliBaja region to contribute to the growth of U.S.-Mexico production and trade in the coming decades. 

This report was prepared through binational collaboration with the University of San Diego, Universidad Autónoma de Baja California, and Colegio de la Frontera Norte.

February 22, 2022

Last year, during the height of the COVID 19 pandemic, there was an interest in pursuing a predictive scheduling ordinance in the City of San Diego. This would have required employers to provide employee schedules up to 14 days in advance, penalize employers for adjusting employee schedules, and prohibit the use of “on call” lists–among other requirements.

The Chamber, along with the California Restaurant Association, the California Retailers Association, BOMA, NAIOP, San Diego AGC, and the San Diego Lodging Association, formed a coalition to oppose the ordinance.

A number of our members had specific feedback, particularly during their experience recovering from the pandemic, about negative impacts. 

Chamber staff prepared research citing impact studies of cities that had implemented a predictive scheduling ordinance, finding that “one size fits all” scheduling policies often have unintended consequences that can be negative for both businesses and staff. 

Councilmember Campillo has determined he will not be pursuing the predictive scheduling ordinance in 2022, and that he appreciated the Chamber’s research and contribution as he considered next steps.

We’re really appreciative of the opportunity to work with the Councilmember and his team to think through potential policies and look forward to continuing that collaboration.

February 22, 2022

More than 50 local, state, and federal representatives from the U.S. and Mexico joined private sector leaders from both countries for a binational summit to reiterate their commitment to working together to advance the construction of the Otay Mesa East Land Port of Entry.  The summit, led by the U.S. Ambassador to Mexico Ken Salazar and moderated by California Lieutenant Governor Eleni Kounalakis, was held at the site where the new port is being built.

The Ambassador also met with the city of Tijuana and the State government to discuss joint efforts to address transboundary pollution impacting the Tijuana river valley in our region. He was joined by the administrator of the U.S. Environmental Protection Agency, Michael Regan.

This was Ambassador Salazar’s first visit to San Diego since was sworn in as United States Ambassador to Mexico on September 2, 2021.

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February 22, 2022

Governor Newsom signed legislation extending COVID-19 paid family sick leave and additional small business relief. SB 114 requires covered employers to provide up to 80 hours of paid family sick leave (reinstating the supplemental paid sick leave a la 2020). Small businesses with fewer than 25 employees are exempt, however the bill is retroactive to January 1, 2022 and extends through September 30, 2022. SB 113 provides $6.1 billion in tax relief and grants for small businesses, including $150 million to fund waitlisted applicants for the Small Business COVID-19 Relief Grant Program.

You can read this helpful summary on what employers need to know about supplemental sick leave here.