HomeMy WebLinkAbout2019-07-09; City Council; ; Report on the 2019 Carlsbad Biennial Business Survey~ CITY COUNC IL
~ Staff Report
Meeting Date:
To:
From:
Staff Contact:
Subject:
July 9, 2019
Mayor and City Council
Scott Chadwick, City Manager
Joseph Stewart, Management Analyst
joe.stewart@carlsbadca.gov or 760-602-4620
Report on the 2019 Carlsbad Biennial Business Survey
Recommended Action
CAReview l;VV
Receive a report on the results of the Carlsbad Biennial Business Survey and an update on the
city's major industry clusters.
Executive Summary
The City of Carlsbad Economic Development Division, in collaboration with BW Research
Partnership, conducted the Carlsbad Biennial Business Survey in March 2019. The survey
measures Carlsbad's business climate, determines barriers to growth and provides up-to-date
information on what Carlsbad businesses need to thrive. The survey also captures the size and
growth of Carlsbad's five major industry clusters: Information & Communication Technologies,
Life Sciences, Action Sports Manufacturing, Clean Technology, and Hospitality & Tourism. Staff,
in collaboration with BW Research Partnership will provide the City Council an overview of the
results of the 2019 sruvey.
Discussion
In January 2019, Economic Development staff commissioned BW Research Partnership to
conduct the 2019 Carlsbad Biennial Business Survey. After two months of preparation, survey
design, and sampling method development, data collection was conducted from March 5 to
March 29, 2019. BW Research Partnership sent letters out to all businesses with an active
business license making them aware of the survey and Economic Development Division staff
promoted the survey via social media channels to encourage participation. A telephone and
web survey of 444 Carlsbad employers was conducted as part of this study. Of the 444
surveyed, 394 respondents completed the entire survey. The results of the data collection and
industry cluster analysis are outlined in the 2019 Carlsbad Business Report (Exhibit 1).
Highlights from the 2019 Carlsbad Business Report include:
• Eighty-one percent of survey respondents identified Carlsbad as an excellent or good
place to do business, a slight improvement over the 2017 report.
• Twenty-two percent of respondents stated their most significant challenge in finding
qualified job applicants was the high cost of housing and living in the area.
July 9, 2019 Item #13 Page 1 of 66
• A higher portion of respondents (8.9%} expressed that Carlsbad's proximity to high
skilled talent was a primary factor for locating in the city compared to the 2017 report
(6.7%), especially among export-oriented and innovation firms.
• About one-third (34%) of surveyed firms have been in Carlsbad for less than five years
compared to 19.7% in 2016, suggesting health, vitality and growth in Carlsbad's
entrepreneurial ecosystem.
• Smaller, younger firms (less than five years old) are more likely to have a positive
perception of the business climate in Carlsbad. Older firms, (over 10 years) are more
likely to have a negative perception of the business climate.
• Over 65% of respondents expressed confidence in the City of Carlsbad to positively
affect the local business climate.
• Access to clients and customers, quality of local roads and streets, and the ability to get
products to and from the. business location received the highest levels of satisfaction
from surveyed firms when asked about Carlsbad's business climate.
• Quality of life considerations remain an overwhelming reason why firms choose to
locate in Carlsbad.
• Information & Communication Technologies (ICT) continues to be a key industry cluster
in Carlsbad with employment increasing by 8.5% from 2016-2018.
• While Action Sports Manufacturing has seen a 7.5% decrease in employment from 2016-
2018 consistent with macroeconomic trends, employment in Carlsbad is still 37.4 times
the national average.
Fiscal Analysis
There is no fiscal impact from receiving the report.
Next Steps
Economic Development Division staff will look at current and past results to see if any new
services or programs could address issues brought up through the survey effort. Staff will
continue to survey businesses every two years. Survey questions will be adapted with new
questions to get relevant feedback from the business community while preserving some
baseline questions for comparison purposes. BW Research Partnership will conduct the next
survey in 2021, and provide an industry cluster update in 2020.
Environmental Evaluation (CEQA)
Pursuant to Public Resources Code Section 21065, this action does not constitute a "project"
within the meaning of CEQA in that, it has no potential to cause either a direct physical change
in the environment, or a re~sonably foreseeable indirect physical change in the environment,
and therefore, does not require environmental review.
Public Notification and Outreach
This item was noticed in accordance with the Ralph M. Brown Act and was available for public
viewing and review at least 72 hours prior to the scheduled meeting date.
Exhibits
1. City of Carlsbad Business Report 2019.
July 9, 2019 Item #13 Page 2 of 66
TABLE OF CONTENTS
City of Carlsbad Business Report
April 2019
Table of Contents ...................................................................................................................... ii
List of Figures ........................................................................................................................... iii
List of Tables ............................................................................................................................ iv
Executive Summary ................................................................................................................. 1
Overall Indicators for the Business Community .................................................................... 4
Opportunity & Assessment in Carlsbad's Business Community ........................................ 10
Industry Clusters .................................................................................................................... 30
Action Sports Manufacturing ............................................................................................ 32
Life Sciences ....................................................................................................................... 34
Cleantech ............................................................................................................................ 36
Information and Communications Technologies (ICT) .................................................... 38
Hospitality and Tourism .................................................................................................... 40
Appendix A: Secondary Data on Universe of Carlsbad Businesses .................................... 42
Appendix B: Survey Methodology ........................................................................................ 43
Secondary Research ........................................................................................................... 43
Primary Research ............................................................................................................... 48
Appendix C: Survey Toplines (n = 394) ................................................................................. 49
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LIST OF FIGURES
City of Carlsbad Business Report
April 2019
Figure 1. How respondents rated Carlsbad as a place to do business ................................. 4
Figure 2. Respondents' perceptions of changes of business climate .................................. 5
Figure 3. Respondents' perceptions of change in business climate by firm age ................ 6
Figure 4. Opinion of Carlsbad's Business Climate by Firm Size ............................................ 6
Figure 5. Opinion of Carlsbad as a Place to do Business by Employment Change in Past
Three Years .............................................................................................................................. 7
Figure 6. Confidence in the City of Carlsbad to positively affect local business climate .... 8
Figure 7. Confidence in the City of Carlsbad to positively affect local business climate by
firm age .................................................................................................................................... 9
Figure 8. Firm sizes of respondents ...................................................................................... 10
Figure 9. Number of years companies have had a location in Carlsbad ............................ 11
Figure 10. Primary Focus of Business ................................................................................... 12
Figure 11. Main industries represented by surveyed companies ...................................... 13
Figure 12. Eight most-common industries by firm age ....................................................... 14
Figure 13. Reasons for Carlsbad business locations ............................................................ 15
Figure 14. Reasons for Carlsbad Locations by Industry .................. , ................................... 16
Figure 15. Reasons for Carlsbad business locations by age of firm ................................... 17
Figure 16. Firms' expectations for number of employees 12 months from taking the
survey ..................................................................................................................................... 18
Figure 17. Firms' growth expectations by number of employees ...................................... 19
Figure 18. Change in employment expectations over the next 12 months by industry
grouping ................................................................................................................................. 20
Figure 19. Types of expected hires by industry .................................................................. 20
Figure 20. Hiring difficulty by industry ................................................................................. 21
Figure 21. Satisfaction with attributes of Carlsbad's business climate ............................... 22
Figure 22. Satisfaction rates for business climate aspects by industry ............................. 23
Figure 23. Dissatisfaction rates for business climate aspects by industry ......................... 24
Figure 24. Satisfaction with Business Climate Aspects of Carlsbad by Length of Residency
················································································································································ 25
Figure 25. Dissatisfaction with Business Climate Aspects of Carlsbad by Length of
Residency ............................................................................................................................... 26
Figure 26. Issues respondents would like to see the City of Carlsbad address -open
ended response ..................................................................................................................... 27
Figure 27. Geographic locations of suppliers and customers ............................................. 28
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City of Carlsbad Business Report
April 2019
Figure 28. Geographic location of suppliers and vendors by firm age .............................. 29
Figure 29: City of Carlsbad Industry Clusters by Growth, Annual Wages, and Overall
Employment* ......................................................................................................................... 31
Figure 30: Action Sports Manufacturing Employment% Change Over Time .................... 33
Figure 31: Life Sciences Employment% Change Over Time ............................................... 35
Figure 32: Cleantech Employment% Change Over Time ................................................... 37
Figure 33: ICT Employment% Change Over Time ............................................................... 39
Figure 34: Hospitality and Tourism Employment% Change Over Time ............................ 41
Figure 35. Secondary Data -City of Carlsbad Size of Businesses ....................................... 42
LIST OF TABLES
Table 1: Overview of Project Methodology ......................................................................... 43
Table 2. Industry Cluster Definitions (2017 NAICS) ............................................................. 44
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City of Carlsbad Business Report
April 2019
talent". The survey results also show a higher portion of survey respondents indicating proximity
to skilled workers and talent (8.9% in 2019 vs. 6.7% in 2017) as the primary reason for locating in
Carlsbad. These results indicate that access to talent and a skilled workforce are both a challenge,
an opportunity, and likely an issue of increasing importance to Carlsbad's business community.
Entrepreneurial Activity in Carlsbad
The 2019 business survey results indicated an overall increase in entrepreneurial activity. In 2017,
4% of responding firms had at least one location in Carlsbad for fewer than three years. In 2019,
15% of responding firms had at least one location in Carlsbad for fewer than three years. The
current survey results also showed that these same firms that have had a location in Carlsbad for
fewer than three years are considerably more likely to be optimistic about the direction of
Carlsbad's business climate compared to firms that have been located in Carlsbad for more than
10 years. These indicators provide an initial, but limited, measure of the health and vitality of
entrepreneurial activity in Carlsbad.
Moving forward, the City of Carlsbad could consider developing an annual or biennial analysis of
entrepreneurial activity in the city. This analysis would provide a more robust assessment of the
size, industry, and economic activity of new firms in Carlsbad. This analysis could also include a
measure of business birth and death rates over time and by industry, as well as examining the
flow of early investments, innovations, and related activity in the entrepreneurial space.
The Diversity of Carlsbad's Business Ecosystem
There are numerous ways of segmenting Carlsbad's business community, whether by looking at
industry clusters, a firm's customer base, the size of the firm, or how long they have been located
in Carlsbad. What is worth noting, is that Carlsbad's business community is relatively diverse
among most of these different segmentations. For example;
• Almost one in five (19%) business respondents indicated that their primary customers are
international and outside the United States, about one-third (35%) indicated their
primary customers are in the US, but outside California, and about half (53%) indicated
their primary customers are local within Carlsbad or North County.1
• Over one-quarter (28%) of businesses are focused on serving other businesses, 42% are
focused on serving consumers directly, and another 29% indicated they serve both
consumers and businesses.
1 It is worth noting that this question in the survey allowed respondents to provide more than one
response, so total responses added up to over 100%.
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City of Carlsbad Business Report
April 2019
• Of the respondent firms, 28% are in export-oriented and innovative industries, 15% are in
tourism and hospitality, and 60% are population and local business serving industries
(ranging from healthcare to construction to professional and business services).2
This is important to note because economic development strategies in Carlsbad need to account
for this diversity and also recognize that what may be effective for certain segments of Carlsbad's
business community will not likely have a consistent impact, positive or negative, across the
business ecosystem. The business diversity in Carlsbad could also provide a valuable hedge
against an industry-specific downturn and increases overall economic resiliency.
Quality of Life Remains a Foundational Advantage for Carlsbad's Business
Community
One of the first questions in the survey asked respondents to identify the main reasons their
company is located in Carlsbad. The top three responses were;
1. Founders lived here (43%)
2. Proximity to customers, collaborators, and vendors (35%)
3. Quality of life in Carlsbad (33%)
These three responses were selected three times more often than any other response categories.
Of the primary three, one states directly it is about quality of life. Another, "Founders lived here"
is at least indirectly built upon a high quality of life and the ability to draw business entrepreneurs
and founders to want to live in the area. Lastly, even proximity to customers, collaborators, and
vendors likely has some indirect relationship with the Carlsbad's quality of life.
Quality of life in Carlsbad is a driving factor for why firms are in the city. Export-oriented and
innovative firms have higher percentages of respondents saying their reason is because founders
lived here and proximity to skilled workers/workforce. Firms in tourism and hospitality are more
likely to indicate they spun-off another company that was already here, but ultimately the quality
of life in and around the city played a key role in why many businesses decided Carlsbad would be
their home.
2 For industry group definitions, please see page 15.
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City of Carlsbad Business Report
April 2019
numbers differ from the 2017 survey, where only 20% of firms that responded have been in
business in Carlsbad for five years or fewer.
Figure 9. Number of years companies have had a location in Carlsbad.
0.0%
Oto 1 Year
More than 1 year, up to 2 years
More t han 2, up to 5 years
More t han 5 years, up to 10 years
More than 10 years, up to 20 years
More than 20 years
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5.0% 10.0% 15.0%
6.5%
8.1%
20.0% 25.0% 30.0%
19.4%
20.7%
24.9%
20.5%
11 July 9, 2019 Item #13 Page 17 of 66
City of Carlsbad Business Report
April 2019
Not surprisingly, the three largest industries represented in the survey are Professional or
Business Services, Retail or Wholesale Trade, and Healthcare. These three industries accounted
for more than half (51%) of all respondent firms (Figure 11). Relative to the 2017 survey, the
2019 survey set represents minor increases in the percentage of Technologies or JCT, Research
and Development, Manufacturing, and Hospitality firms surveyed.
Figure 11. Main industries represented by surveyed companies
Professional or Business Services
Retail or Wholesale Trade
Healthcare
Finance, Insurance, Real Estate, or Property Management
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PARTNERSHIP
Hospitality
Technologies or ICT
Manufacturing
Research and Development
Construction or Building and Design
Life Sciences
Tourism
Cleantech
Public Sector or Education
Action Sports Manufacturing
Energy or Utilities
Other
0.0% 5.0% 10.0% 15.0% 20.0%
16.0%
13.0%
12.6%
11.4%'
10.9%
9.1%
6.3%
5.3%
4.2%
3.3%
1.9%
1.9%
1.4%
0.5%
14.7%
25.0%
22.1%
13 July 9, 2019 Item #13 Page 19 of 66
City of Carlsbad Business Report
April 2019
Reasons for Firm Location in Carlsbad
As was the case in the 2017 business survey results, quality of life-related reasons were among
the most popular for why a company was located in Carlsbad. Almost three-quarters (73%) of
respondents said their location was due to either founders living in Carlsbad and/or the quality of
life in Carlsbad (Figure 13).
Figure 13. Reasons for Ca rlsbad business locations8
0.0% 10.0% 20.0% 30.0% 40.0%
Founders lived here _____________ 41.0%
Proximity to customers, collaborators, and vendors ____________ 33.2%
Quality of life in Carlsbad ----~~-----~ ______ 31.8%
Spun-off another company that was already here 9.8%
Proximity to skills workers/workforce 8.5%
General location (proximity to SD, ocean, 1-5) 4.8%
Office space availability/pricing 3.7%
Connection or proximity to university or related ... · 1.6%
Other (please specify) 11.9%
Don't know/ Refused 4.6%
50.0%
Throughout this report, some findings across industries are reported in industry groups. The major
industries identified in the survey were grouped based on their broader markets and customers.
There are four groups;
I
Tourism and Hospitality (consisting ofTourism and Hospitality firms),
Export-oriented and Innovative Firms (includes Technologies or ICT, Manufacturing, Research
and Development, Life Sciences, Action Sports Manufacturing, and Cleantech),
Population Serving (includes Professional or Business Services, Retail or Wholesale Trade,
Finance, Insurance, Real Estate, or Property Management, and Construction or Building and
Design), and
Healthcare and Municipal (includes Healthcare, Public Sector or Education, and Energy or
Utilities).
8 Respondents could select multiple responses, so values sum to more than 100%
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City of Carlsbad Business Report
April 2019
When reasons for locating in Carlsbad are examined by industry group, a couple patterns emerge.
Export-oriented and Innovative industries reported relatively high percentages affirms that
located in Carlsbad because of its "proximity to skilled workers" and because the "founders lived
in [Carlsbad]". This suggests that Carlsbad and the surrounding communities have been able to
successfully attract high skill workers and entrepreneurs necessary for these industries. It is also
notable that Tourism and Hospitality firms have a relatively high proportion of firms that are
spun-off from another company that was already here (Figure 14}. Many of these "spin-offs" are
food and beverage establishments.
Figure 14. Reasons for Carlsbad Locations by Industry
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
Founders lived here
Proximity to customers, collaborators, and vendors
Quality of life in Carlsbad
Spun-off another company that was already here
Proximity to skilled workers/workforce
18.9%
11.0%
8.8%
12.7%
7.5%
18.0%
10.2%
12.7%
41.5%.
52.0%
44.9%
39.7%
37.7%
32.0%
34.7%
37.7%
31.0%
36.6%
38.1%
•49.2%
Tourism and Hospitality ■ Export/Innovative ■ Population Serving Healthcare and Municipal
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INDUSTRY CLUSTERS
City of Carlsbad Business Report
April 2019
SAN DAG focused on 13 industry clusters in its March 2016 report. Among those, six clusters17
were identified as the most relevant to the City of Carlsbad as they either already have a
relatively high concentration of employment within Carlsbad or there is a potential to see
considerable growth within the next three to ten years. The industry clusters relevant to the City
of Carlsbad, include;
1. Action Sports Manufacturing cluster includes firms that are engaged in the design and
production of golf clubs, surfboards, diving equipment, and other recreational goods as
well as the apparel and accessories that are closely tied to these products.
2. Life Sciences cluster combines two of SANDAG's industry clusters, Biomedical Devices and
Products which includes the research, design, and production of medical devices and
Biotechnology and Pharmaceuticals which includes research and development related to
biological technologies as well as the manufacturing of medicinal and diagnostic
substances.
3. Cleantech cluster includes firms that are engaged in renewable energy (wind power, solar
power, biomass, hydropower, biofuels), green transportation, electric motors, green
chemistry, lighting, greywater, and many other appliances that are now more energy
efficient.
4. Hospitality & Tourism cluster {SANDAG's Entertainment & Hospitality) includes hotels,
transportation services, and restaurants, as well as entertainment attractions such as
theme parks (LEGOLAND), golf courses, and country clubs.
5. Information, Communications, & Technologies (ICT) cluster includes cyber security,
software and video game design, satellite communication, electronic device
development, radio and wireless communication, and robotics.
It should be noted that each of the industry cluster definitions are generally consistent with
SAN DAG; a few minor revisions and additions were made after reviewing the database of
employers with the City of Carlsbad. In addition, some NAICS are included in multiple industry
clusters with proportions implemented to avoid double or triple job counting.
17 Life Sciences cluster combines two of SANDAG's industry clusters Biomedical Devices & Products and
Biotechnology & Pharmaceuticals
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City of Carlsbad Business Report
April 2019
ACTION SPORTS MANUFACTURING
There are 16 Action Sports Manufacturing (ASM) firms19 in Carlsbad that employ about 1,888
individuals. Despite a 7.5% decline in ASM jobs between 2016-2018, the industry cluster is still
very concentrated in the area-about 37 times greater than the national average. The industry
also generated over $736 million in sales in 2018, 98% of which were exports from Carlsbad. This
demonstrates that the industry still plays a substantial role in bringing revenue and employment
into Carlsbad.
Action Sports Manufacturing
This cluster includes firms that are engaged in the design and production of recreational
equipment, from golf clubs to surfboards, as well as the apparel and accessories that are
closely tied to these products.
2018 Employment:
Current Establishments:
Change over the Last 2 Years:
Average Annual Earnings:
Industry Concentration:
19 City of Carlsbad Business License List.
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1,888
16
A 7.5% employment decline from 2016 through
2018
$107,481
Employment in Carlsbad is 37.44 times the national
average
32 July 9, 2019 Item #13 Page 38 of 66
LIFE SC IE NCES
City of Carlsbad Business Report
April 2019
For our purposes, two of SANDAG's clusters-Biomedical Devices and Products & Biotechnology
and Pharmaceuticals -have been combined into one industry cluster-Life Sciences-in
Carlsbad. Carlsbad has increasingly become an appealing option for small and large Life Sciences
firms alike; there are now 111 life science firms in Carlsbad-nearly half of which employ
between one and nine individuals. This suggests that Carlsbad has been successful in attracting
life science-related startups and small companies as well as large, established firms. The industry
is also 13 times more concentrated in Carlsbad than the national average. The industry also
generated nearly $3 billion in sales and offered average earnings of $130,258 per year in 2018.
Life Sciences
This cluster combines two of SANDAG's industry clusters, Biomedical Devices and Products
which includes the research, design, and production of medical devices and Biotechnology
and Pharmaceuticals which includes research and development related to oiological
technologies as we ll as the manufacturing of medicinal and diagnostic substances.
2018 Employment:
Current Establishments:
Change over the Last 2 Years:
Average Annual Earnings:
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Industry Concentration:
6,366
111
A 2.4% increase in employment from 2016 to 2018
$130,258
Employment in Carlsbad is 13.6 times the national
average
34 July 9, 2019 Item #13 Page 40 of 66
CLEANTECH
City of Carlsbad Business Report
April 2019
Twenty Cleantech firms22 in Carlsbad employed about 659 people in 2018. Employees in this
industry cluster earned an average of $118,827 per year and the industry generated more than
$168 million in sales in 2018, 85% of which were exported sales. Cleantech is also relatively
abundant in Carlsbad; there are about 3.57 times more Cleantech employees in Carlsbad than the
national average for a region of the same size. Between 2016-2018, Cleantech employment in
Carlsbad increased a slight 0.6%.
Cleantech
This cluster includes firms that are engaged in renewable energy, energy efficiency, and
energy storage.
2018 Employment:
Current Establishments:
Change over the Last 2 Years:
Average Annual Earnings:
Industry Concentration:
22 City of Carlsbad Business License List.
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659
20
A 0.6% increase in employment from 2016 to 2018
$118,827
Employment in Carlsbad is 3.57 times the national
average
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City of Carlsbad Business Report
April 2019
INFORMATION AND COMMUNICATIONS TECHNO LOGIES (ICT)
The Information and Communications Technologies (ICT) cluster represents a key industry cluster
in Carlsbad with 258 firms24 and 8,862 jobs in Carlsbad. ICT is also more than nine times more
concentrated in Carlsbad than the national average. Despite its substantial size, ICT employment
increased by a robust 8.5% between 2016-2018. This industry cluster also brings substantial
economic activity to Carlsbad; in 2018, ICT firms generated over $4.2 billion in sales and the
average ICT employee earned $132,250 per year.
Information & Communications Technologies
This cluster includes communications, computer and electronics, and software
industries.
2018 Employment:
Current Establishments:
Change over the Last 2 Years:
Average Annual Earnings:
Industry Concentration:
8,862
258
8.5% increase in employment from 2016 to 2018
$132,250
Employment in Carlsbad is 9.18 times the national
average
24 Data source: City of Carlsbad Business License List.
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April 2019
APPENDIX B: SURVEY METHODOLOGY
Data compiled for this report were drawn from both primary and secondary data sources. The
table below provides a brief overview of the methodology utilized for the project.
Table 1: Overview of Project Methodology
Method A mailed letter followed by a Telephone and Online Survey of Carlsbad
Businesses
Number of Survey
394 Firms in Carlsbad Completed a Web or Telephone Survey Participants
Survey Field Dates March 5 to 29, 2019
Survey Universe 4,758 Firms in the Carlsbad
Survey Margin of The margin of error for questions answered by all 394 respondents was+/-
Error 4.73% at the 95% level of confidence.
SE CO N DARY RESEARCH
For this study, industry clusters were defined using the North American Industry Classification
System {NAICS), the system to classify establishments by type of economic activity. Table 2
displays the complete list of NAICS28 used for this study for each industry cluster. If a percentage
is provided next to the NAICS description, this means that not all jobs in the particular NAICS
were assigned to the specific industry cluster; only the stated percentage of jobs was accounted
for.
All secondary data used in this study were compiled from either Database USA.com or the
Economic Modeling Specialists Inc. (Emsi) 2019.1 QCEW and Non-QCEW dataset for Carlsbad.
Emsi updates their data quarterly, which includes revisions to past years of data . The data used in
this report is an updated version of the dataset utilized in the 2017 Carlsbad Business Report and
may therefore differ in values from figures presented in the 2017 report. The EMSI Class of
Worker dataset includes Quarterly Census of Employment and Wages (QCEW) employment and
non-QCEW Employment provided by state and federal level data sources including the U.S.
28 NAICS-the structure that SAN DAG and other comparable organizations use to define their regional
industry clusters.
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City of Carlsbad Business Report
April 2019
Bureau of Labor Statistics (BLS), the U.S. Census Bureau, and the Bureau of Economic Analysis
(BEA).
Table 2. Industry Cluster Definit ions (2017 NAICS)
Industry Cluster
Action Sports
Manufacturing
CleanTech
Entertainment and
Hospitality
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NAICS Code
339920
339999
423910
334413
334513
334514
335314
541380
541420
541620
541690
541715
114111
481111
481211
481212
481219
487210
532292
711110
711120
711130
711190
711211
711212
711219
NAICS Description
Sporting and Athletic Goods Mfg.
All Other Miscellaneous Manufacturing (20%)
Sporting and Recreational Goods and Supplies Merchant
Wholesalers
Semiconductor and Related Device Mfg. (25%)
Instruments and Related Products Mfg. for Measuring,
Displaying, and Controlling Industrial Process Var.
Totalizing Fluid Meter and Counting Device Mfg.
Relay and Industrial Control Mfg.
Testing Laboratories (10%)
Industrial Design Services (10%)
Environmental Consulting Services
Other Scientific and Technical Consulting Services (25%)
Research and Development in the Physical, Engineering,
and Life Sciences (except Nanotechnology Biotech) (5%)
Finfish Fishing
Scheduled Passenger Air Transportation
Nonscheduled Chartered Passenger Air Transportation
Nonscheduled Chartered Freight Air Transportation
Other Nonscheduled Air Transportation
Scenic and Sightseeing Transportation, Water
Recreational Goods Rental
Theater Companies and Dinner Theaters
Dance Companies
Musical Groups and Artists
Other Performing Arts Companies
Sports Teams and Clubs
Racetracks
Other Spectator Sports
44 July 9, 2019 Item #13 Page 50 of 66
Information and
Communication
Technologies (ICT)
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'
711310
711320
711410
711510
712130
713110
713120
713290
713910
713930
713990
721110
722310
722320
722330
722410
722511
722513
722514
722515
323120
334111
334112
334118
-
334210
334220
334290
334310
334412
334413
334417
City of Carlsbad Business Report
April 2019
Promoters of Performing Arts, Sports, and Similar Events
with Facilities
Promoters of Performing Arts, Sports, and Similar Events
without Facilities
Agents and Managers for Artists, Athletes, Entertainers,
and Other Public Figures
Independent Artists, Writers, and Performers
Zoos and Botanical Gardens
Amusement and Theme Parks
Amusement Arcades
Other Gambling Industries
Golf Courses and Country Clubs
Marinas
All Other Amusement and Recreation Industries
Hotels (except Casino Hotels) and Motels
Food Service Contractors
Caterers
Mobile Food Services
Drinking Places (Alcoholic Beverages)
' Full-Service Restaurants
Limited-Service Restaurants
Cafeterias, Grill Buffets, and Buffets
Snack and Nonalcoholic Beverage Bars
Support Activities for Printing .
Electronic Computer Manufacturing
Computer Storage Device Manufacturing
Computer Terminal and Other Computer Peripheral
Equipment Manufacturing
Telephone Apparatus Manufacturing
Radio and Television Broadcasting and Wireless
Communications Equipment Manufacturing
Other Communications Equipment Manufacturing
Audio and Video Equipment Manufacturing
Bare Printed Circuit Board Manufacturing
Semiconductor and Related Device Manufacturing (75%)
Electronic Connector Manufacturing
45 July 9, 2019 Item #13 Page 51 of 66
Life Sciences
[bw] RESEARCH
PARTNERSHIP
334418
334510
334515
334516
334517
334519
334614
335311
335999
511210
512110
512191
517311
517312
517410
517911
517919
541330
541380
541511
541515
423430
443142
541512
541513
112000
325120
325411
325412
City of Carlsbad Business Report
April 2019
Printed Circuit Assembly (Electronic Assembly)
Manufacturing
Electromedical and Electrotherapeutic Apparatus
Manufacturing
Instrument Manufacturing for Measuring and Testing
Electricity and Electrical Signals
Analytical Laboratory Instrument Manufacturing
Irradiation Apparatus Manufacturing
Other Measuring and Controlling Device Manufacturing
Software and Other Prerecorded Compact Disc, Tape,
and Record Reproducing
Power, Distribution, and Specialty Transformer
Manufacturing
All Other Miscellaneous Electrical Equipment and
Component Manufacturing
Software Publishers
Motion Picture and Video Production
Teleproduction and Other Postproduction Services
Wired Telecommunications Carriers
Wireless Telecommunications Carriers (except Satellite)
Satellite Telecommunications
Telecommunications Resellers
All Other Telecommunications
Engineering Services
Testing Laboratories (35%)
Custom Computer Programming Services
Research and Development in Physical, Engineering,
and Life Sciences (except Nanotechnology and
Biotechnology) (20%)
Computer and Computer Peripheral Equipment and
Software Merchant Wholesalers
Electronics Stores
Computer Systems Design Services
Computer Facilities Management Services
Animal Production
Industrial Gas Mfg.
Medicinal and Botanical Mfg
Pharmaceutical Preparation Mfg
46 July 9, 2019 Item #13 Page 52 of 66
[bw] RESEARCH
PARTNERSHIP
325413
325414
333314
339112
339113
339114
339115
339116
423450
541380
541714
541715
621511
339999
811219
City of Carlsbad Business Report
April 2019
In-Vitro Diagnostic Substance Mfg.
Biological Product (except Diagnostic) Mfg.
Optical Instrument and Lens Mfg.
Surgical and Medical Instrument Mfg.
Surgical Appliance and Supplies Mfg.
Dental Equipment and Supplies Mfg.
Ophthalmic Goods Mfg.
Dental Laboratories
Medical, Dental, and Hospital Equipment Supplies
Merchant Wholesalers Laboratories
Testing Laboratories (20%)
Research and Development in Biotechnology (except
Nanotechnology)
Research and Development in the Physical, Engineering,
and Life Sciences (except Biotech and Nanotechnology)
(35%)
Medical Laboratories
All Other Miscellaneous Manufacturing (30%)
Other Electronic and Precision Equipment Repair and
Maintenance
47 July 9, 2019 Item #13 Page 53 of 66
PR IMARY RESEARCH
City of Carlsbad Business Report
April 2019
A telephone and web survey of 444 Carlsbad business stakeholders was conducted as part of this
study. Of the 444 surveyed, 394 respondents completed the entire survey.
Survey Design
Through an iterative process, BW Research worked closely with the City of Carlsbad's Economic
Development Division to develop a survey instrument that met all the research objectives of the
study. In developing the survey instrument, BW Research utilized techniques to overcome known
biases in survey research and minimize potential sources of measurement error within the
survey.
Sampling Method
A database of 4,758 Carlsbad firms was developed from.SalesGenie (lnfoUSA} and a previous
database of Carlsbad businesses. That database was then supplemented with firms and contact
information provided by the City of Carlsbad and finally reviewed and refined to ensure it
incorporated Carlsbad employers, stratified by size and industry. The sampling plan was based on
a stratified universe of businesses based on size and industry within the city.
Data Collection
Prior to beginning data collection, BW Research conducted interviewer training and pre-tested
the survey instrument to ensure that all words and questions were easily understood by the
respondents. Telephone interviews were generally conducted from 9:00am to 4:30pm Monday
through Friday. The data collection period was March 5 to March 29, 2019.
A web version of the survey was also developed and businesses with an email address within the
city were sent an on line invitation. Carlsbad businesses that were called over the telephone and
indicated a preference to complete the survey online, were also sent an on line invitation to the
survey. Approximately 1,000 Carlsbad employers were also mailed a letter, making them aware of
the survey and providing an URL to complete the survey on the web, before being called.
A Note about Margin of Error and Analysis of Sub-Groups
The overall margin of error for the survey, at the 95 % level of confidence, is+/-4.73 % for
questions answered by all 394 respondents. It is important to note that questions asked of
smaller groups of respondents (such as questions that were only asked to firms based of their
previous responses) as well as results presented separately for industry clusters will have a
margin of error greater than+/-4.73 %, with the exact margin of error dependent on the number
of respondents in each sub-group.
[bw] RESEARCH
PARTNERSHIP 48 July 9, 2019 Item #13 Page 54 of 66
City of Carlsbad Business Report
April 2019
3. What were the main reasons your company located in Carlsbad? [CHECK ALL THAT APPLY -DO NOT
READ OPTIONS]
42.9% ! Founders lived here
-------·-·--· ·--------1
I _I
34.8% : Proximity to customers, collaborators, and vendors
33 .3% j Quality of life in Carlsbad i---t·-----·--
10.3% 1 Spun-off another company that was already here 1
i 8.9% ] Proximity to skills workers/workforce ' , __ · •.. -------------
5.0% 1 General location (proximity to SD, ocean, 1-5)
3.8% i Office space availability/pricing ··--··----··-----, ·····-·---·-----···-·-··--····-· -----
1.7% Connection or proximity to university or related
i i institutions
[.--12 ___ 5_%_! Other (ple~;~~pe-c-if_y_) __ ------·····-·--·--------
4. What industry or industries best describes the work that your firm is involved in and
connected to? [DO NOT READ -ALLOW MORE THAN ONE RESPONSE]
i I
;
1
. ~!:~: ! :~~:~Is:i::~il~:ai~~!~!~rvices ________ _ ·i
, 13.0% I Healthcare ~ ---------···----··-i 12.6% Finance, Insu rance, Real Estate, or Property
' I Management ,------+ i 1 11.4% Hospitality -· -··-----·
10.9% Technologies or ICT !
9.1% Manufacturing =-~! : !: -,-~;~;i;:~;i:nd ~e;:;'l~~n::nntd DesigO :~--_ --
I 4.2% Life Sciences f------t--~~--------··--·-
l!-3_._3_%_-+-T_o_u_r_is_m____________ _ _______ J
i 1.9% Cleantech 1
i 1.9% Public Sector or Education =------=1
:------------------------·-----
1.4!o j Action Sports Manufacturing _ ___ ___ _ __
0.5% I Energy or Utilities , -· :-------------·•--·••··-----•-·••--·------;
14.7% l Other (.el_e~se ~p~_~ft) _____ .__ _ _____ _j
[IF Q4 = 7 -10, SKIP Q5]
5. Is your firm involved in work related to Life Sciences, Cleantech or Clean Technologies, Information and
Communication Technologies (ICT) or Action Sports? (ADD DEFINITIONS IF NEEDED) [ALLOW MORE
THAN ONE RESPONSE]
i 13.0% i Yes, lnf~~~~ti~~-and Communicati~-;:;-+~~h nologies --7
[bw] RESEARCH 51
PARTNERSHIP July 9, 2019 Item #13 Page 57 of 66
City of Carlsbad Business Report
April 2019
Next, I would like to ask specifically about local government and the City of Carlsbad.
15. Overall, how confident are you in the Carlsbad city government to make decisions that positively affect
the local business climate?
15.5% I Very confident
49.8% Somewhat confident 1------~---I 12.4% S~-~~yv~at unconfident
l 6.1% _ Very unc~~~dent _______
1 i 16.3% I Don't know/ Refused ---~----_____ J
18.6% I Very confident
59.4% Somewhat confident
14.8% Somewhat unconfident
7.2% , Very unconfident
16. Please tell me how satisfied your company is with the following issues and attributes regarding
Carlsbad's business climate.
Is your company satisfied, dissatisfied, or neither satisfied nor dissatisfied with Carlsbad's?
(GET ANSWER AND THEN ASK:) Would that be very (satisfied/dissatisfied) or somewhat
(satisfied/dissatisfied)?
I Access to capital
i Very Somewhat Neither ! satisfied satisfied satisfied nor
I ______ dissatisfied
""""'•-·-
15.9% 21.4% 27.5%
Quality of local streets and i 35.0% 39 .3% 10.3%
i
----
I Somewhat
dissatisfied
i
4.0%
7.3%
Very
I dissatisfi
2.0%
! 4.3%
i
Don't
ed know/
Refused
29.2%
3.8%
I roads ' I -------------------- J
Ability to get employees to I 24.7%
, and from work •-------·----
I ! Ability to get product to and 36.8%
from your Carlsbad business I
location I
---·-······----·-------
Reliability of dc;1ta services I 15.9% I
Access to clients and j 35 .0%
customers ; ·------------·--·---·------···-·---·--··----·-·---··-·· ------
I Ability to recruit high skill 18.1 %
I talent
I Ability to find qualified entry · 15.9%
L!.c:?._mid-level employees
[bw] RESEARCH
PARTNERSHIP
32.2%
25.9%
26.4%
36.3%
-·-··----·-·-·
: 29.2%
; : 32.5%
19.9% r 6% 2.8%
··--I 16.1% 1.8% 1.5%
-·-··---·----····-··-·--·-·-····· . ·---------·--
111.8% I ! l
~~-r::
23.7% 4.3% 2.3% 27.s% I . -· ...................... --------··• .. ·····-·····•-·•·-
15.6% 3.5% 1.0% 8.6% I
i I ~-----··-·--·-
25.9% ! 5.8% 2.0% 18.9%
! 22.9%
!
~------,--------
1 9.6% 3.3% 15.9%
55 July 9, 2019 Item #13 Page 61 of 66
City of Carlsbad Business Report
April 2019
, Access to relevant vendors 28.5% I 37.8% 18.9% l 1.5% 0.5% i 12.8%
i
.~:~u:u~:~i:;: se~lcjs _____________ I 14.~% l 26.4% ____ ;-2-7-.5-o/c_o_ ~! 3-_-3-%---,-i {~%--~_l 2_?-0~-~
Regulatory climate, including 14.6% 24.9% 19.9% 15.9% 7.8% i 16.9%
zoning, permitting, local
, regulations, and related issues
, Very Somewhat · 1-Neither ! Somewhat l Very
I dissatisfied I
i satisfied : satisfied satisfied nor i; dissatisfied -diss .. atisfied
_L -J
, Access to capital 22.4% 30.2% 38.8% 5.7% 2.8% I
! ~~~~ty of local streets and ~1-3-6-.4-o/c-o~~,:-~4-0-.8-o/c_o_~i-1_0 ___ 7_o/c_o ---;-7-.6-o/c--o--i-14 ___ 5 __ % ___ 1
Ability to get employees to 28.0% 36.6% 22.6% 9.7% 3.1%
and from work ------------·-----
Ability to get product to J 44.8% , 31.6% 19.6% 2 lo/c l 1 8o/c
and from your Carlsbad I_ .
0
.
0
b~~n~ss location ____ ,_ __ _ __ _
I Reliability of data __ services _______ ,_2_1_._9_% __ .,....3_6_._5_% _____ 3_2_.6_o/c_o _______ .?.:~~--------1-~l_o/c_o. __ _
i Access to clients and 38.3% '. 39.7% 117.1%
: customers ! 1
I ---- -----------I_ ------
, 3.9% 1 1.1%
I Ability to recruit high skill 22.4% 36.0% 32.0% 7.1% 2.5%
1 talent r--~~~ ------
Ability to find qualified
entry to mid-level
employees
I Ac;cesst o relevant vendors I 32.7%
[ 18.9% : 38.6%
43.4%
[272%
: 21.7%
i 114% _ I 3 :% -
1.7% : 0.6%
i and suppliers ;
Value of data services
Regulatory climate,
l 19.3% J --I 36.2% i 37.6%
I --~·-•----
;-4-.5-o/c_o ___ i 2-_-4_% _____ 1
19.1% -9.4_% ___ !
i including zoning,
l permitting, local I i regulations, and related
i issues ~-----------·--·-
[bw] RESEARCH
PARTNERSHIP
17.6% 30.0% 23.9%
--···-·-------·--------· ·-·-··--·~-~
_j
56 July 9, 2019 Item #13 Page 62 of 66
City of Carlsbad Business Report
April 2019
To wrap things up, please answer the following questions.
A. In what year were you born? 19 __ (What age are you)
I 2.7% I 75+ years or older
I 10.1% 65-74 years old
, 30.0% 55-64 years old
i I 27.0% 45-54 years old
1 19.0% 1 35-44 years old
10.4% 25-34 years old
i_o_.9_o/c_o_ I 2~-y~ars_old o~_y_o_u_n_g_e_r __ -_-_-___ -_--------------,
B. What City do you res ide in?
r·---,-
1 41.3% l Carlsb_ad ________ ,
1 11.5% Oceanside ------~
· 8.2% ; San Diego
! 7.9% Vista
! 6.1% I Encinitas
i 5.6% i San Marcos
! 3.8% I Escondido
I
·--~
I
! 2.0% Solana Beach
~-0-.5-%--i Fallbroo_k _
·------------------l i 9.9% Other (specify) I 3 .1 % l o~n 't kn o~w-/~R~e-fu_s_e_d-----J
C. Would you be willing to participate in follow-up research, focused on better understanding the needs
of Carlsbad's business community?
39.8% I Yes ,------------<
50.0% No --·-------------------· -i 10.~ i Don't know/ Refused
1-~~-~~--__I '!_~s ________________________ , l 55.7% No ------------~----"
D. Lastly, do we have your permission to provide your contact information to the City of Carlsbad, so
that they may follow up on any issues or requests brought up during this survey?
i 48.2% I· ---! 48.5%
, Yes
No
[bw] RESEARCH
PARTNERSHIP 59 July 9, 2019 Item #13 Page 65 of 66
----~--•"···•··-
13.3% Don't know/ Refused
I would like to verify your contact information.
E. Name of Respondent ___________ _
F. Relevant Contact Information
Phone ________________ _
Email -----------------
G. Position ----------------
Those are all of the questions I have for you.
Thank you very much for participating!
H. Company Name
I. Company location
J. Date and time of Interview
K. Name of Interviewer
L. Industry cluster
M. Gender {VOICE)
51.4% I Male ! ------------------------~----------
Female ! 43.7% ;------,----~-~---·------; i 4.9% 1 Don't know/ Refused 1
[bw] RESEARCH
PARTNERSHIP
City of Carlsbad Business Report
April 2019
60 July 9, 2019 Item #13 Page 66 of 66
Report on the 2019 Carlsbad Biennial
Business Survey
Joseph Stewart, Management Analyst
Josh Williams, President, BW Research Partnership
July 9, 2019
Background
•City staff partnered with BW Research to conduct the 2019 Carlsbad Biennial Business Survey
•Survey measures city’s business climate, determines barriers to growth, and provides up-to-date information on what Carlsbad businesses need to thrive
•Survey also captures the size and growth of Carlsbad’s five major industry clusters: Information & Communication Technologies, Life Sciences, Action Sports Manufacturing, Clean Technology and Hospitality & Tourism
The City of CarlsbadBusiness
Climate Survey
[bw] RESEARCH
PARTNERSHIP
Introduction and Research
Objectives
Indicators for the Business
Community
Key Industry Clusters
Key Findings
1
Agenda 2
3
4
Introduction and
Research Objectives1
Introduction and Research QuestionsKey Research Questions
The purpose of this of the research was to evaluate Carlsbad’s
1.Business climate, including perceptions, and plans for doing
business in Carlsbad
2.Satisfaction with the city’s efforts to provide a variety of
business-related services and programs
3.Industry clusters and their impact on employment in Carlsbad
Survey Methodology
Method Mailed letter followed by a Telephone and Online Survey of Carlsbad Businesses
Number of Survey
Participants 394 Firms in Carlsbad Completed a Web or Telephone Survey
Survey Field Dates March 5 to 29, 2019
Survey Universe 4,758 Firms in the City of Carlsbad (with at least 1 employee)
Survey Margin of
Error
The margin of error for questions answered by all 394 respondents was +/-4.73% at the
95% level of confidence.
Key Indicators for the
Business Community2
Indicators for the Business CommunityCarlsbad as a Place to do Business
2.7%
0.9%
1.8%
8.1%
47.5%
39.0%
2.9%
1.1%
2.1%
9.5%
39.9%
44.5%
3.4%
1.6%
3.4%
12.7%
47.2%
31.6%
1.9%
1.0%
2.9%
13.0%
47.1%
34.1%
0.0%20.0%40.0%60.0%
DK/NA
Very poor
Poor
Fair
Good
Excellent
2019 2017 2014 2012
-
■
■ ■ ■ ■
Indicators for the Business CommunityChange in Carlsbad’s Business Climate by
Length of Time in Carlsbad
40.8%
36.4%
28.9%
4.1%
7.9%
14.5%
55.1%55.6%56.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Fewer than 3 Years 3-10 Years More than 10 Years
Getting better Getting worse Staying about the same
-
■ ■ ■
Indicators for the Business CommunityConfidence in the City of Carlsbad to Positively
Affect Local Business Climate
14.8%
2.2%
8.1%
50.2%
24.7%
15.2%
4.2%
8.0%
47.6%
24.9%
13.3%
9.3%
13.3%
47.9%
16.2%
16.3%
6.1%
12.4%
49.8%
15.5%
0.0%10.0%20.0%30.0%40.0%50.0%60.0%
Not sure or DK/NA
Very unconfident
Somewhat unconfident
Somewhat confident
Very confident
2019 2017 2014 2012
I
I
I
I
-I
I
·-
I
I
l
LJ -I
I
I
■ ■ ■ ■
Indicators for the Business CommunitySatisfaction with Attributes of the Business Climate
•Access to clients (78.0% very or somewhat satisfied vs. 5.0% very or somewhat
unsatisfied)
•Quality of streets and roads (77.2% vs. 12.0%)
•Ability to get product to and from your Carlsbad location (76.4% vs. 4.0%)
•Ability to get employees to and from work (55.5% vs. 12.9%)
•Ability to find qualified entry to mid-level employees (52.6% vs. 15.3%)
•Regulatory climate (47.6% vs. 28.5%)
Indicators for the Business CommunityExpected Number of Employees in 12 Months
More, 27.7%
Fewer, 3.6%Same number
of employees,
58.2%
DK/ Refused,
10.5%
More
21.8%
Same number of
employees
67.4%
Fewer
1.9%
DK/NA
8.9%
2019 2017
Key Industry Clusters3
Key Industry ClustersRecent Changes in Carlsbad’s Industry Clusters
Action Sports
Manufacturing
Life Sciences
Cleantech
Hospitality and Tourism
ICT
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
(10%) (8%) (6%) (4%) (2%)0%2%4%6%8%10%Avg. Annual Earnings (2018)Employment Growth 2016-2018
-
Key Industry ClustersAction Sports Manufacturing
-19.5%
-16.4%
-13.3%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Carlsbad San Diego County California
2018
Employment:1,888
Current
Establishments:16
Change over
the Last 2
Years:
A 7.5% employment
decline from 2016
through 2018
Average Annual
Earnings: $107,481
Industry
Concentration:
Employment in Carlsbad
is 37.44 times the
national average
Key Industry ClustersLife Sciences
29.5%
44.5%
16.6%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Carlsbad San Diego County California
2018
Employment:
6,366
Current
Establishments:
111
Change over
the Last 2
Years:
A 2.4% increase in
employment from 2016
to 2018
Average Annual
Earnings:
$130,258
Industry
Concentration:
Employment in Carlsbad
is 13.6 times the
national average
Key Industry ClustersClean Technology
-16.1%
-9.3%-7.3%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Carlsbad San Diego County California
2018
Employment:659
Current
Establishments:20
Change over the
Last 2 Years:
A 0.6% increase in
employment from 2016
to 2018
Average Annual
Earnings: $118,827
Industry
Concentration:
Employment in Carlsbad
is 3.57 times the national
average
Key Industry ClustersInformation and Communications Technology
8.2%
-4.7%
5.1%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Carlsbad San Diego County California
2018
Employment:8,862
Current
Establishments:258
Change over the
Last 2 Years:
8.5% increase in
employment from 2016
to 2018
Average Annual
Earnings: $132,250
Industry
Concentration:
Employment in Carlsbad
is 9.18 times the national
average
/ ------...7 -
Key Industry ClustersHospitality and Tourism
14.3%
20.5%
25.4%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Carlsbad San Diego County California
2018
Employment:13,840
Current
Establishments:378
Change over the
Last 2 Years:
0.0% increase in
employment from 2016
to 2018
Average Annual
Earnings: $32,391
Industry
Concentration:
Employment in Carlsbad
is 1.95 times the national
average
Key Findings4
Key Finding #1Four out of five respondents indicated Carlsbad was
an “Excellent” or “Good” Place to do Business
34.1%
47.1%
13.0%
2.9%1.0%1.9%
Excellent
Good
Fair
Poor
Very Poor
Don't know/ Refused
■
■
■
■
■
Key Finding #2Talent is both a competitive advantage and a
challenge for Carlsbad Businesses
1.“Ability to find qualified entry to mid-level employees” received
the second highest level of dissatisfaction of (behind regulatory
climate) the 11 business climate components tested
2.Proximity to skilled workers/workforce increased by 33% as a
primary reason businesses location in Carlsbad
3.Industry clusters, like Life Sciences and ICT, with specific and
demanding talent requirements continue to grow in Carlsbad
Key Finding #3Entrepreneurial Activity in Carlsbad
25.0%
18.4%16.7%
61.4%61.8%58.0%
9.1%
14.7%15.4%
4.5%5.1%
9.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Fewer than 3 Years 3-10 Years More than 10 Years
Very confident Somewhat confident Somewhat unconfident Very unconfident■ ■ ■ ■
Key Finding #4The Diversity of Carlsbad’s Business Ecosystem
27.5%
41.5%
28.8%
2.3%
Primary other
businesses
Primary
consumers
directly
A combination
of both
businesses and
consumersDon't know/
Refused
52.7%
26.5%
15.5%
34.9%
18.6%
1.0%
33.7%
30.4%
16.3%
42.3%
14.0%
6.9%
0.0%20.0%40.0%60.0%
Local -- Carlsbad & North County
Regional -- Within Southern California
Statewide -- Within California
National -- Within the United States
International -- Outside the United
States
Don't know/ Refused
Customers Suppliers & Vendors
■
■
■
■ -
■ ■
Key Finding #5Quality of Life Remains a Foundational Advantage
for Carlsbad’s Business Community
41.0%
33.2%
31.8%
9.8%
8.5%
0.0%10.0%20.0%30.0%40.0%50.0%
Founders lived here
Proximity to customers, collaborators, and vendors
Quality of life in Carlsbad
Spun-off another company that was already here
Proximity to skills workers/workforce
Questions
[bw] RESEARCH
PARTNERSHIP
Thank you!
[bw] RESEARCH
PARTNERSHIP
The City of CarlsbadBusiness
Climate Survey
[bw] RESEARCH
PARTNERSHIP