HomeMy WebLinkAbout2023-09-28; Economic Development Strategic Plan Update and Quarterly Economic Scan (Districts - All); Rocha, LauraTo the,membets ofthe:
CITY COUNCIL
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September 28, 2023
Council Memorandum
{city of
Carlsbad
Memo ID# 2023098
To:
From:
Via:
Honorable Mayor Blackburn and Members of the City Council
Laura Rocha, Deputy City Manager, Administrative Services
David Graham, Chief Innovation Office~
Geoff Patnoe, Assistant City Manager (.9.'
Re: Economic Development Strategic Plan Update and Quarterly Economic
Scan (Districts -All)
This memorandum provides an update on the implementation of the Economic
Development Strategic Plan, Economic Development Department activities, and programs.
Background
Economic vitality is one of the goals set forth in the Carlsbad Strategic Plan 2023-2027, which
was adopted on October 11, 2022, and is of significant interest to the community. On
January 10, 2023, the City Council adopted the Economic Development Strategic Plan (EDSP).
The EDSP was developed to meet the city's strategic objective from its general five-year
Strategic Plan to support the goal of economic vitality.
Discussion
The implementation of the EDSP is guided by a set of strategic actions that were presented to
the City Council with input from the Economic Development Subcommittee. Funding for several
programs was included in the fiscal year'2023-24 budget.
The EDSP contains two elements. The first is an overarching strategy that will guide Economic
Development Department work in Carlsbad for the near and long-term future. It includes four
strategic goal areas:
1. Support Small Businesses, Startups & Entrepreneurs
2. Develop Workforce and Attract Talent
3. Grow and Support Key Industries
4. Encourage Placemaking and Engagement
The second element is a strategic action plan. The action plan contains numerous tactics that
can be pursued by the city to achieve the four goals established in the overarching strategy. It
will be revisited annually during the budget process and updated to correspond with changing
market conditions, economic needs, and future challenges. As conditions change, certain
Administrative Services Branch
Innovation & Economic Development Department
1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2923 t
Council Memo -Economic Development Strategic Plan Update (Districts -All)
September 28, 2023
Page 2
actions may be elevated in priority, timelines may be updated, or Key Performance Indicators
may be adjusted to respond to future needs.
On August 21, 2023, the Economic Development Subcommittee heard updates on the
execution of programs related to the EDSP. Those updates are included in this memorandum.
The Subcommittee also previewed a tracking dashboard that staff built to track progress,
outcomes, and impact. The dashboard will help ensure that the goals and deliverables
contained in the EDSP are met in a timely and transparent manner.
Supporting Small Businesses, Startups & Entrepreneurs
Carlsbad Cybersecurity Awareness Pilot Program
In conjunction with the Carlsbad Chamber of Commerce, staff are continuing its work with the
San Diego Cyber Center of Excellence to promote basic cybersecurity awareness and provide
resources to small businesses located in Carlsbad, or that are suppliers to Carlsbad businesses.
With cyber breaches up more than 300% since 2020, more and more companies are falling
victim to attacks that could disrupt or even shut down operations. By helping businesses be
more resilient online, it helps ensure Carlsbad's economy is also more resilient.
Beginning in October, the city and the Carlsbad Chamber of Commerce will host a free,
quarterly workshop for small businesses to learn about basic cybersecurity practices.
Participants will also be able to access a free suite of tools to help make their on line operations
more resilient.
San Diego Startup Week
On October 23, 2023, from 3 to 8 p.m., Carlsbad will host the opening night ofthe tenth annual
San Diego Startup Week, in the Village. The event will attract several hundred entrepreneurs,
startups, funders, and resource providers to network and participate in industry-relevant panels
and presentations. The event will be anchored at New Village Arts, Carlsbad Village Theater,
Pure Brewing, and on Christensen Street.
Startups are a key demographic called out in the EDSP for support due to their ability to attract
investment and growth potential in Carlsbad. In the past year, 10 Carlsbad startups raised more
than $17.4 million. Innovative startup companies have the potential to one day become the
city's largest employers. Hosting events and activities for the startup community demonstrates
Carlsbad's commitment to supporting the growth of innovative ideas and firms.
Council Memo -Economic Development Strategic Plan Update (Districts -All)
September 28, 2023
Page 3
Business Workshops
Economic Development staff continue to support the libraries as resource providers for small
businesses. Upcoming workshops, which feature speakers from the Small Business
Development Center, are promoted in the Economic Development Newsletter.
Developing Workforce and Attracting Talent
Life in Action Recruiter
In August 2021, the Life in Action {LIA) Recruiter Pilot Program was launched on the Life in
Action website. This was a transformative step in Carlsbad's talent attraction efforts, moving
beyond marketing, promotion and building an actual pipeline of talent, and connecting them
with Carlsbad's innovative companies.
In the pilot phase, the LIA Recruiter platform attracted more than 400 candidates who
expressed an interest in a job in Carlsbad and shared their information in hopes of obtaining a
Carlsbad job.
Primarily oriented toward careers in Carlsbad's innovation economy, the LIA Recruiter captures
interest from candidates down the street and across the country. By engaging on the platform,
candidates are seen by a number of Carlsbad employers -35 signed up to use the platform
during the LIA Recruiter Pilot Program.
The City Council approved funding to expand this program, which will allow for the buildout of
a talent "marketplace" where job seekers will have a profile and employers will have more
filtering options to find the right candidate. Development of the expanded platform began the
last week of August and is expected to be completed in late fall. The platform will be available
to companies and job seekers by the end of December.
Job-Readiness Room (JRR)
In late 2022/early 2023, Economic Development staff worked with Carlsbad Library staff, the
Carlsbad Chamber of Commerce, Lightcast, and Bendable Labs - a startup out of the Drucker
Institute -on a Workforce Development Pilot Program that provided access to training and a
guaranteed job interview for low and middle-skill job seekers in Carlsbad and throughout North
County. The pilot program utilized the library system as a conduit for residents and workers to
see in -demand career opportunities and use the JRR platform to access entry-level career skills
and a micro-credential certification, and then connect with employers hiring in those fields
through the Carlsbad Chamber of Commerce and city staff. JRR programs prepared candidates
for jobs in manufacturing, hospitality & food service, healthcare, and office administration.
These industries showed to have availability in entry-level jobs.
Council Memo -Economic Development Strategic Plan Update (Districts -All)
September 28, 2023
Page 4
During the pilot program, 100 candidates enrolled in the program with 30 individuals
completing their micro-credential. Those who completed the program were then referred to
employers who have signed up. Fifteen Carlsbad employers engaged with the program, and five
candidates were placed in jobs.
Once the pilot program was completed, Lightcast and Bendable adjusted the program to
support employers after the point of hire, to assist in more rapid onboarding for new, entry-
level employees to upskill quickly, thereby making it more likely that the employee is successful
in their role. In its current form, the program is meant to support small and medium-sized
employers that are continuously hiring and have noted difficulty in sourcing entry-level
employees. While the program develops further, 25 Carlsbad employers will be able to
participate at no cost. Staff are partnering with the Carlsbad Chamber of Commerce to help
promote the program and monitor adoption and success.
North County Recruiter Network
In conjunction with the San Diego North Economic Development Council, staff are working to
develop a network of human resources and recruiting leaders in Carlsbad and North County to
ensure programming is aligned with current employer demands. This network will be leveraged
by economic developers across North County to adapt talent and workforce programming and
better position the region for developing and recruiting workers.
Supporting Key Industries
Biennial Business Survey
The biennial survey of Carlsbad businesses is being developed and is scheduled to go out to
businesses by the end of October. The survey is used to measure business sentiment, identify
challenges, discover opportunities, and track trends. It will help inform and adapt Economic
Development Department programs and services that align with the EDSP. The survey goes to
all businesses in the city with extra outreach to ensure diverse representation by business size,
geography within the city, and industry. When the analysis and findings are completed, the
report will be distributed to the City Council via Council Memorandum.
Business Insight Tours
While staff have historically engaged with major employers in Carlsbad to understand their
operations and impact, staff recognized the need for a more st ructured and systematic
approach. To this end, staff have formalized the program to ensure consistent outreach,
organized data collection, and a comprehensive understanding of each business's contribution
t o Carlsbad's economy. The program underscores the city's commitment to fostering a robust
economic environment and ensures the city is equipped with actionable insights to inform
future strategies.
Council Memo -Economic Development Strategic Plan Update (Districts -All)
September 28, 2023
Page 5
City staff and senior leaders have re-started these tours now that businesses are allowing for
in-person meetings. The most recent tour was a visit to Viasat to better understand the
company's growth trajectory, challenges in sourcing talent, and how the continuation of
remote and hybrid work may affect space utilization at their Carlsbad Campus. Other tours will
be scheduled based on availability, industry cluster, and need.
Industry Roundtables
On August 30, 2023, Economic Development staff hosted a roundtable of Carlsbad Sports and
Active Lifestyle (SAL) companies. The gathering, done in conjunction with San Diego Sport
Innovators -the trade organization for SAL companies, brought together key industry
representatives to talk about opportunities in the city.
The roundtable series will eventually include regular discussions with all of Carlsbad's key
industry clusters and will give the city direct intelligence on what industries and businesses are
facing in terms of anticipated challenges, potential growth, and other opportunities.
Economic Intelligence & Insights
Staff continue to monitor and analyze economic data to be able to identify trends that will
affect businesses, key industries, and the city as a whole. Each quarter, staff publishes a
quarterly economic scan with those findings and insights. The fiscal year 2023-24 Q4 scan is
attached to this memorandum.
Carlsbad Tourism Business Improvement District (CTBID)
On April 18, 2023, the City Council adopted a resolution to re-establish the CTBID under the
Property and Business Improvement District Law of 1994, which provides a more modern
authorization and operations structure. With that action, the new CTBID was established, and
the assessment began on July 1, 2023, as was planned. The new structure also allows for the
Carlsbad Golf Lodging Business Improvement District (CGLBID) activities to fold into the CTBID.
The transition of operations and administration to Visit Carlsbad as the appointed Owners
Association for the CTBID has been smooth.
Before winding down the previous CTBID and CGLBID, all the remaining funds need to be
expended. For the CGLBID, that is anticipated to happen in October 2023. For the previous
CTBID, that is anticipated to be in January or February 2024. Until the existing funds have been
expended and services rendered, the respective Advisory Boards will remain in place to provide
oversight of expenditures. New Advisory Board members may be appointed until their duties
have been completed. Once the funds have been expended for each individual BID, the
respective Advisory Board will make a recommendation to the City Council to disestablish the
previous district.
Council Memo -Economic Development Strategic Plan Update (Dist ricts -All)
September 28, 2023
Page 6
Encouraging Placemaking and Engagement
Carlsbad Village Property and Business Improvement District (PBID)
As part of the fiscal year 2023-24 budget process, the City Council allocated $20,000 in funding
toward a PBID Feasibility Study for Carlsbad Village to better understand the sentiment of
Village business owners in potentially pursuing the establishment of a PBID. This also includes
working with a consultant to determine a map of potential properties to be assessed, the
enhanced services that would be provided, and the budget necessary.to fund services. The
effort, led by the Carlsbad Village Association (CVA) will help determine if and what additional
services businesses and property owners would like to see in the Village area that would help
improve the business climate and overall environment.
The CVA has begun to survey 163 commercial property owners that could be assessed. This is a
necessary step to complete the PBID Feasibility Study. While the survey is open the CVA will
continue to work with its consultant on the other elements of the Feasibility Study. The
information necessary to complete the feasibility is expected by the end of the year. Achieving
a sufficient number of survey responses to provide valuable information about the sentiment of
potential assesses is critical to completing the Feasibility Study. An update regarding progress
on the Feasibility Study will be discussed at the next Economic Development Subcommittee
meeting in October 2023.
Carlsbad Banner Program
Since transitioning management of the Streetlight Banner Program
to the CVA, the banner program has thrived, receiving compliments
from residents and visitors alike. Now at 195 banner locations
throughout the city, the banner district is the second largest in San
Diego County behind Comic Con.
Overnight on September 5-6, 2023, the fall banner campaign was
installed, converting roughly 50% of all banners to fall imagery. The
holiday banners will be mounted citywide beginning on
November 6, 2023.
Business Expansion, Attraction, and Retention (BEAR) Update
Economic Development staff have been tracking or are engaged in a number of BEAR projects
that will yield gains in employment and new investment in the city. At any given time, staff are
working with approximately 25-35 companies looking to locate or grow in Carlsbad. Some
notable examples include:
• Vuori: The athleisure brand is currently developing its new headquarters campus on
Avenida Encinas. They expect initial operations on site in September 2023 as the rest of
Council Memo -Economic Development Strategic Plan Update (Districts -All)
September 28, 2023
Page 7
the renovation is still being completed. The company expects up to 1,000 employees to
call the Carlsbad site home.
• lonis Pharmaceuticals: The life sciences company is expanding its campus on Whiptail
Loop, as it plans to expand in the pharmaceutical industry. The company has also
expanded into the City of Oceanside where they plan to do more manufacturing.
• BMW: The auto company has completed the buildout of a new dealership in Car
Country Carlsbad. The site, which opened at the end of August 2023, represents the
consolidation of BMW of Encinitas and BMW of Vista. It is expected to become a
significant revenue generator for the city.
• Tyra Biosciences: The cancer research company is pursuing the development of the
space adjacent to their State Street offices. When completed, the new development will
allow the company to be more than double its current presence. The expansion takes
over the former Beach City Auto site and is a significant redevelopment in the Village.
• UPS: The logistics giant is in the midst of developing a 225,000 square foot facility on
Lionshead Avenue.
• Carlsbad Village Station: A development team of Fabric Investments (State Street
Commons, Tyra Biosciences, etc.) and Sea Breeze Properties (North City Development in
San Marcos) are in due diligence with North County Transit District for the
redevelopment of the Carlsbad Village Station. The site represents 17 acres at the core
of the Village that could be developed into a space that is more productive than the
current use and better aligned with the Village and Barrio Master Plan.
Staff also continue to work on several attraction projects as prospective businesses seek to find
space in Carlsbad. As those are realized, they will be included in future Economic Development
Department updates.
Next Steps
Staff will continue to support individual Carlsbad companies and execute programs and services
that work toward the goals set forth in the EDSP. Implementation of the EDSP will continue
with guidance and any necessary actions requested through the Economic Development
Subcommittee and the City Council.
Attachment: A. Carlsbad Economic Scan Fourth Quarter Fiscal Year 2022-2023 Q4
cc: Scott Chadwick, City Manager
Cindie McMahon, City Attorney
Jennifer True, Deputy City Attorney
Kristina Ray, Communication & Engagement Director
Matt Sanford, Economic Development Manager
Economic Scan
Innovation+ Economic Development Department
Fourth Quarter, Fisca l Year 2022-2023
Attachment A
{cityof
Carlsbad
The following scan provides an overview of key economic indicators for April, May and June 2023 for the
City of Carlsbad. This economic scan is updated quarterly to provide information that is relevant to the
health of Carlsbad's economy. For regularly updated information regarding the Carlsbad economy and
economic development visit carlsbadca .gov/doingbusiness.
GROSS REGIONAL PRODUCT
Carlsbad GRP {Source: Lightcast, 2022. Data revised Q2, 2023)
$16.6B
JOBS
In 2022, Carlsbad had the second largest gross regional product
in San Diego County at nearly $16.6B, only trailing the City of San
Diego. In 2019, Carlsbad's economy grew by $800 million to nearly
$13.6 billion. In 2020, as a result of the pandemic, the city's GRP
remained flat. In 2021, Carlsbad's economy grew to $15.1 billion.
From 2021 to 2022, Carlsbad's GRP grew by $1.5B. This growth
was seen across almost all industry categories, and was led by
manufacturing, wholesale trade, hospitality, and professional,
scientific, & technical services.
Unemployment Rate {Source: California Employment Development Department, June 2023 Report)
Carlsbad has continued to have a tight labor market, with unemployment remaining between 2.7% and 3.7% for the past 18
months. In June, the Carlsbad unemployment rate crept back up to 4%, demonstrating a slight loosening in the local labor
market. This loosening has been seen in the tech and life sciences industries, which had largely preserved workers through the
pandemic. Nationally, tech employers have been reducing their workforce. The unemployment rate in June was 4.9% at the state
level and 4% at the county level.
Unemployment Rate Comparison 2023
4
~ ----4>
I o
Jan Feb Mar Apr May Jun Jut Aug Sep Oct Nov Dec
-earls bad -San Diego County
-North County Avg w/o Carlsbad-California
' 6
o
1
Carlsbad Unemployment Rate 20 22 vs 2023
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-2022 -2023
Job Postings (Source: Lightcast, April -June 2023)
There were 13,261 unique job postings in Carlsbad between April
and June, an increase of about 1,000 jobs from the previous quarter,
reversing a three quarter slide. The median advertised salary for
these postings was $52,600, which is on average $1,500 more than
jobs posted in the previous quarter, an indicator of wage inflation.
Of jobs posted, 69% indicated an education requirement of High
School/GED or no requirement listed. 48% of postings indicated no
experience was required, a significant drop from previous hiring
trends, indicating employers may be becoming more selective with
their hiring.
TALENT+ WORKFORCE
0
~~13,2
Education (Source: 2021 ACS 5-Year Estimates, the latest year available)
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Educationa l Attainment Compar ison Perce nt of
Popu lation Over 25 Years Old
11 ,r I l l II II
1
Carlsbad has established itself as having
the right workforce to fuel innovation
in tech and life sciences fields. Carlsbad
businesses can access talent from San
Diego County, Orange County, and even
southwest Riverside County. More than
60% of working-age residents hold a
bachelor's degree, with nearly 25%
attaining an advanced degree. Outside of
some communities in central San Diego,
Carlsbad has the heaviest concentration
of households with degrees in
science, technology, engineering, and
mathematics (STEM degrees). This local
talent mix is among the leading reasons
that firms choose Carlsbad.
Less Than
High School
High School Some College, Associate's Bachelor's Graduate or
Talent Pipeline
Nearby public and private universities
offer top-notch programs . Within a 30-
mile radius, more than a half-dozen
universities and colleges confer more
than 35,000 degrees annually. The
Carlsbad business community works
closely with higher education partners
to align various education tracks
with local workforce needs.
Dipl oma no Degree Degree
■ National ■ California II San Diego County
Mira Costa
s,i College
3,554
2
Degrees Conferred by University,
Di spl ayed as Distance from Carlsbad
CalState
San Marcos
3,578
l
UC San
Diego
10,266
~i) ~
National
Unl,,.erslty
5,322
Proximit in Miles from Carlsbad
Degree Professional
Carlsbad
San Diego State
University
9,671
University of
San Diego
2,780
Degree
'
CAPITAL
Interest Rates (Source: U.S. Department of the Treasury, June 2023)
National interest rates continue to rise as the Federal Reserve raises rates to combat inflation. One-year rates are currently
at 5.4%. Ten-year rates are currently at 3.81%. 30-year rates are currently at 3.85%. Combined with the continued rise in
interest rates, capital is becoming harder to access for some developing companies. This could stunt growth projections
across a number of industries. Some economists are predicting the United States is at or near the peak of inflation, although
many predict interest rates are likely to remain elevated. Inflation figures have improved over the past several months and
the economy remains strong. There is growing optimism that a recession may have been averted, or be mild if it occurs.
June 2022
One-year interest rate
10-year interest rate
30-year interest rate
2.8%
2.98%
3.14%
June 2023
One-year interest rate
10-year interest rate
30-year interest rate
5.4%
3.81%
3.85%
COMMERCIAL REAL ESTATE
Market Vacancy Rates and Rent per Square Foot (source: costar, June 2023)
6.4% ' '
Industrial vacancy rate
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Carlsbad Commercial Vacancy Rates
2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023
Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2
-Carlsbad Retail -Carlsbad Office -Carlsbad Industrial
Commercial vacancy rates went down in office and retail
categories this quarter. Industrial vacancy jumped up to 6.4%,
large ly attributed to a select few parcels that were vacated. The
industrial vacancy rate ended the quarter at 6.4%. The office
vacancy rate in June was 12.3%. Retail vacancy in June was 5.7%.
Rental rates were relatively steady across all categories. Average
market rents per square foot, per year for office rates in June
were $38.52. Industrial rates in June were $22.19. Retail rates in
June were $45.28.
Commercial developers are largely holding off on new
developments and office space elsewhere in the region and the
county is seeing a rise in vacancy and a drop in value, an indicator
of instability. This trend is predicted to continue.
Vacancy Rate Comparison
16.00%
14.00%
12.00%
10.00%
~I I ~I 1111d
8.00% I I Ill ~ ulll Ill •1 6.00%
4.00%
2.00%
0.00%
Retail Office Industrial Retail Office Industrial
Carlsbad North County w/o Carlsbad
■ 2021 Ql ■ 2021 Q2 ■ 2021 Q3 ■ 2021 Q4 ■ 2022 Ql
■ 2022 Q2 ■ 2022 Q3 ■ 2022 Q4 ■ 2023 Ql ■ 2023 Q2
3
100
80
60
TOURISM
42
With 42 hotels in Carlsbad, tourism is a major industry in terms of
employment and economic impact. It is also a major contributor
to city revenue, through TOT and sales tax generation. Below
are several indicators reflecting the health of the city's tourism
economy.
Hotel Occupancy {Source: Smith Travel Research, June 2023 Report)
Occupancy averaged 74.2% in the fourth quarter, which lags the same quarter for 2022 (77.2%). The surge in travel in 2022,
known in the industry as "revenge travel" seems to have cooled going into 2023. This quarters occupancy more closely aligns
with the same quarter from 2019.
HotelOccupancy2022 Hotel Occupancy 2023
100
80
60
40 ,-
20
450
400
350
300
250
200
150
100
50
40
20
-City of Carlsbad -San Diego County, CA -city of Oceanside, CA
-City of Newport Beach, CA-City of Carlsbad, 2019 -City of Carl£bad -San Diego County, CA -City of Oceanside, CA -City of Newport Beach, CA
Hotel Average Daily Room Rate {Source: Smith Travel Research, June 2023 Report)
Carlsbad's average daily room rate (ADR) remains higher than historic norms, but is lower than the same quarter of 2022. ADR
averaged $226.02 in the fourth quarter, compared to $236.61 for the same quarter in 2022. Despite occupancy falling slightly
this quarter, on average with higher occupancy and ADR over the year, the tourism industry finished the fiscal year ahead of
projections.
Avge rage Daily Rate 2022
-city of Carlsbad -San Diego County, CA -City of Oceanside, CA
-City of Newport Beach, CA -City of Carlsbad. 2019
4
Avge rage Daily Rate 2023
450 -~ ~-
400
350
300
250
200
150
100
50 ~
~ hl -~ -~ W --M -~
-City of Carlsbad -San Diego County, CA -City of Oceanside, CA -City of Newport Beach, CA
INCOME+ HOUSING
Median Household Income (Source: 2021 ACS 5-Year Estimates, the latest year available)
Median household income in Carlsbad continues to exceed county income levels. The median income for a household
in Carlsbad in 2021 was $124,669, (adjusted for inflation), which was $33,666 higher than the county median income.
Carlsbad has generally outpaced the region in terms of household income growth.
2016 2017 2018 2019 2020 2021
City of Carlsbad
Median Household Income $113,217 $102,722 $107,172 $123,409 $112,933 $124,669
County of San Diego
Median Household Income $70,824 $70,588 $74,855 $79,324 $82,426 $91,003
City of Carlsbad
per Capita Income $49,349 $52,560 $55,518 $63,079 $57,607 $65,430
County of San Diego
per Capita Income $32,482 $34,350 $36,156 $40,389 $39)37 $44,377
Median Home Price (Source: Zillow Home Value Index-June 2023)
Home prices stabilized this quarter after falling approximately 7% from their peak. The continued rise in interest rates
impacted property values in Carlsbad but high consumer demand is keeping prices elevated. Median home prices rose
consistently in Carlsbad between March 2019 and July 2022 before dipping lower. The current median home price is
$1.42 million, an increase of about $40,000 over the last quarter.
$1,600,000.00
$1,400,000.00
$1,200,000.00
$1,000,000.00
$800,000.00
$600,000.00
$400,000.00
$200,000.00
$-
2019
Carlsbad Median Home Price
2020 2021 2022 2023
5
$1,500,000.00
$1,400,000.00
$1,300,000.00
$1,200,000.00
i $1,100,000.00
$1,000,000.00
$900,000.00
$800,000.00
$700,000.00
$600,000.00
Median Home Price Comparison -2023
Jal\ Feb Mar Apr Jun
-Carlsbad -Escondidio -oceanside SanMarcos -Vista
BUSINESS ACTIVITY
Business Licenses (Source: City of Carlsbad, June 2023}
There were a total of 2,599 business licenses issued last quarter, including 1,101 non-residential, 760 residential, and 738 outside-
the-city licenses. This is an increase of 147 total businesses over the same quarter of 2022.
The number of licenses issued does not reflect the number of businesses in Carlsbad as a business may carry multiple
licenses, short-term vacation rentals are required to get a license, and businesses outside of Carlsbad that do business
in the city or with the city are required to get a license. It is estimated that there are approximately 6,923 businesses
in Carlsbad.
I 3500
3000
2500
2000
1500
1000
500
0
Business Lice nses Issued by Qua rter
Ql 2021Q2 2021Q3 2021Q4 2021Ql 2022Q2 2022Q3 2022Q4 2022 Ql 2023Q2 2023
-Non-Residential -Residential Outside City -Total
Building Permits (Source: City of Carlsbad, June 2023}
Between April and June, permit activity increased for residential building permits (1,349), continuing a strong upward
trend. The number of residential building permits issued has been generally increasing over the past several years.
Commercial permits issued (115), represents a rebound in commercial building permits, which were declining over the
past year. It is too early to tell whether the trend will continue.
1600
1400
1200
1000
800
600
400
200
0
2020
Building Permits Issued
2021
,. ·e .,
E E 8
2022
■Ql ■Q2 ■Q3 Q4
6
2023
INDUSTRY CLUSTERS
Life Sciences {Source: 2022 Business Report and Industry Cluster Update)
The Life Sciences industry cluster employs 6,657 workers across 134 firms and experienced a 2.6% increase in employment
between 2018 and 2020. The cluster is 5.51 times more concentrated in Carlsbad than the national average and annual
wages per worker average $123,702.
San Diego County and California have experienced parallel employment growth in the Life Sciences cluster between
2010 and 2020. In the same ten-year period, employment in Carlsbad grew by 75%. Between 2016 and 2018, Carlsbad
experienced over 40% growth. Over the past two years (2018-2020), however, employment growth tapered off compared
to years prior.
Technology {Source: 2022 Business Report and Industry Cluster Update)
The Information and Communications Technologies (ICT) cluster employs 9,008 workers across 343 firms in Carlsbad and is
2.75 times more concentrated in Carlsbad than the national average. Annual wages per worker average $136,254, and the
ICT industry cluster experienced a 3.3% increase in the number of jobs between 2018 and 2020.
San Diego County and California experienced steady parallel growth in the ICT cluster between 2010 and 2020. In the same
ten-year period, Carlsbad experienced an initial decline in employment between 2012 and 2015; between 2015 and 2020,
employment in the ICT cluster has steadily trended upwards.
Clea ntech {Source: 2022 Business Report and Industry Cluster Update)
Between 2018 and 2020, the number of workers employed at Cleantech firms ,increased by 22.2%. By 2019, the 48
Cleantech firms in Carlsbad employed more than 872 people. The average annual wage per worker is $109,779, and the
Cleantech industry cluster in Carlsbad is 4.66 times more concentrated than the national average.
Between 2010 and 2012, Carlsbad experienced an initial employment drop for the Cleantech industry followed by steady
growth between 2012 and 2020. Employment growth in California peaked in 2013 and has been on a steady decline since.
Growth in San Diego County also peaked in 2013, dropping by over 25% between 2013 and 2017. Since 2017, employment
in the Cleantech cluster for San Diego County has been on a steady increase.
Sports Innovation & Design (Source: 2022 Business Report and Industry Cluster Update)
The Sports Innovation & Design industry cluster employs 1,804 workers across 116 firms and experienced a 16.3% decrease
in employment between 2018 and 2020. The cluster is 5.06 times more concentrated in Carlsbad than the national average
and annual wages per worker average $75,652.
Employment in the Sports Innovation & Design cluster has steadily declined since 2013 in Carlsbad. Both San Diego County
and California have declined steadily since 2015 and experienced sharp declines between 2019 and 2020, likely due to the
COVID-19 pandemic.
Hospitality & Tourism {Source: 2022 Business Report and Industry Cluster Update)
Carlsbad's Hospitality & Tourism cluster is about 1.35 times more concentrated in Carlsbad than the national average and
employs 9,179 people across 467 businesses. Hospitality & Tourism experienced a sharp 34% decrease in employment
between 2018 and 2020, driven by the effects of the COVID-19 pandemic between 2019 and 2020. Average annual wages
per worker remain low relative to other key industry clusters, with workers earning $31,315 on average.
Carlsbad, San Diego County, and California experienced sharp declines between 2019 and 2020, during which sub-clusters
like Theater Companies and Dinner Theaters, Amusement and Theme Parks, and Amusement Arcades were shut down to
mitigate the effects of the COVID-19 pandemic.
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INDUSTRY IMPACT
Largest Industries (Source: Lightcast; June 2023)
Carlsbad's economy significantly exceeds the national average in manufacturing, accommodation and food services,
and professional, scientific and technical services jobs. These sectors,-which would include tech, life sciences, and other
innovation industries are generally more resilient to recessions, also represent significant job growth in the economy.
GRP by Industry
• Gross Regional Product
Manufacturing
Professional. Sciemific. and Technical Services
Wl1oles.ate Trcide
Finance and Insurance
Retail Trade
Government
tnformation
A.ccom1nodation and Food Services
Health Care ancl Soc/c1l Assistance
Real Estate and Rental .3nd Leasing
Administrative and Support and Waste Management and
Remediation Services
Management of Companies and Enterprises
Arts, Entertainment, and Recreation
Construction
Utilities ~
Other Services {e:xc.ept Public Administ ration) -
Tr.:insportarion and Warehousing ..
Educational Services 111111
Agriculture, Forestry, Fishing and Hunting
$0.000 $500.0M
Industry size by employment
• Industry Jo bs
Professional, Sci<entific. and Techn[cal Services
t-t1anufacturing
Accommodatfon and Food Services
Ret.311 Trade
Governml::"nt
Health Care .:md Social Assistance
Wholesale Tr3de
Arts, Entenainmem, ~~nd Recreation
Administrative and Su pport and Waste Managetnent and
Remediation Services
Other Services. (except Public Administration)
Construction
Finance and Insurance
Real Estate and Rental and Leasing
Educational Services
Management of Companies and Enterprises
Tr·ansportation ;;1nd W.c;i-e-housing
Utilities
Agriculture, Forestry, Fishing and Hunting
-I --1
0 2,000
I
Sl.000B $1.500B
National Average
4,000 6.000
8
$2.000B $2.500B
■
8,000 10,000 12,000
INNOVATION
Patents (Source: 2020 Carlsbad Industry Cluster Patent Update)
Four of the key industry clusters mentioned above drive innovation activity in Carlsbad. The figure below shows that while
the Life Sciences cluster has been a long-term driver of the city's Innovation Economy, Information & Communications
Technology patents have seen dramatic growth over the past ten years and was responsible for virtually the same number
of new patents as life sciences in 2019. It is also worth noting that Clean Technoloty, which is the industry cluster with the
lowest number of patents, has grown by more than 800% since 2009. All told, these four industry clusters accounted for
96% of all patents awarded to Carlsbad firms in 2019.
Growth in Patents He ld by Carlsbad Businesses
350
300
+-' § 250
0 u
'c 200 i ro
c.. 150
ro :::,
C ~ 100
50
0
2009 2010
-clean Technology
-Life Sciences
Patents per Capita
2011 2012
Carlsbad has a notably higher proportion
of patents per 1,000 workers-over 60%
more than the next-closest competitor
city. This figure shows that Carlsbad has
a greater concentration of patent activity
than even the technology hubs of San
Jose, Seattle, San Francisco, and Boston. In
2019, Carlsbad had 1.6 patents for every
1 patent per 1,000 workers in San Jose.
That ratio was 2.5 and 2.8 for Seattle and
San Francisco.
209%
478%
39%
840%
2013 2014 2015 2016 2017 2018 2019
-Information and Communications Technology
Sports Innovation and Design
Portland -
Denver -
Baltimore -
Pittsburgh
Austin
Boston
San Francisco
Seattle
San Jose
Carlsbad
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0
2019 Patents per 1,000 Workers in the Labor Force
Released August 9, 2023
The quarterly economic scan is developed by the City of Carlsbad Innovation & Economic Development Department.
For more information, visit carlsbadca.gov/doingbusiness, or contact the team at business@carlsbadca.gov.
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