A Crisis Brewing in San Diego? Companies are leaving the state in droves, bankruptcies are rampant, and job layoffs are occurring across the region…or are they? What is the true situation for San Diego? FOR IMMEDIATE RELEASE Thursday, November 5, 2003 SAN DIEGO, CA - Today the San Diego Regional Chamber of Commerce (SDRCC) and the National Center for Business & Economic Research (NCBER), a division of San Diego-based ERISS Corporation, announced plans to commence the second phase of a study aimed at determining the true state of business in San Diego. This joint economic development initiative is designed to deliver "streams of ultra-current, ultra-local information aggregations," as well as real-time early warning relocation alerts to local Economic Development and Chamber organizations in San Diego. "We are very pleased to join with the NCBER on this extraordinary initiative," Jessie Knight, President and CEO of the SDRCC stated. "It provides an outstanding opportunity for chambers and economic development organizations to join forces to improve our local area competitive strengths, as well as increase services and relevance to the local business community." The initiative was specifically designed to provide a combination of real-time retention information as well as critical industry intelligence for policy formulation and business advocacy relating to land, capital and labor. The County of San Diego Office of Trade and Business Development has already successfully utilized the business intelligence gathered from the NCBER research to retain businesses in danger of relocating from the San Diego region. Working in conjunction with respective city economic development organizations, such as the San Diego Regional Economic Development Corporation's Early Warning Program, companies indicating plans to relocate were contacted by local government and offered assistance. There are two documented cases in which companies were successfully retained and remain in the community. San Diego was the first to participate in the now nation-wide economic development initiative that includes Los Angeles, Ventura and Santa Barbara Counties, Central Ohio and the States of North Carolina and Utah. The American Chamber of Commerce Executives (ACCE) and the International Development Council (IEDC) are also active participants. The massive business census projects are provided free of charge to local economic development and chamber organizations. Jeff Finkle, President and CEO of IEDC states, "This initiative is truly unique. It allows our economic development community access to the kind of world-class information we need in these rapidly changing times. No previous government or private effort has unearthed the wealth and depth of data that this initiative provides." The original study commenced in September 2002 was completed by April 2003. The study consisted of telephone surveys of 950 executives in San Diego. The San Diego business executives provided answers to more than 50 questions on a variety of economic and business issues, covering size and profitability, expansion and relocation plans, business climate issues and expansion barriers, membership in chambers and other business advocacy groups. The survey shows that 26.3 percent of San Diego County businesses plan to expand operations within the next year, while only 4.7 percent intend to relocate. Of those, the vast majority said it would be a local move, while only a few would move out of state or internationally. Not everything around here is ideal, however, with considerable discontent over rising workers' compensation costs, along with concerns about regulations, job growth, quality of live, and now, mandating companies to provide health care coverage. And yet, most businesses are making money and staying put, which is far from the negative messages that get amplified on local radio, TV and major newspapers and magazines. The second round of the study is set to begin October 20, 2003. The study will include refinements to the data gathering process with more than 1500 responses projected, an increase that will significantly contribute to the precision and accuracy of the information produced by the survey. In an effort to obtain a more accurate representation of local business, the survey will target San Diego-based companies rather than branches of national or multinational organizations. The questions have also been formulated to probe deeper and provide a greater understanding of the San Diego business environment in detail. The San Diego Census is made possible by Co-Sponsorship funding provided by local area organizations such as Barney & Barney, and several smaller Co-sponsor groups lead by NextLevel Internet and Burnham Real Estate. The Co-sponsors are recognized industry leaders who have identified economic development and business development in San Diego as fundamental requirements for their operations. "For more than 94 years, Barney & Barney's culture has included a strong commitment to supporting San Diego businesses, charities and the arts," said Larry Shea, managing principal of Barney & Barney. "Our decision to sponsor the Chamber's program is simply an extension of our enduring commitment to insuring the continued economic growth and business vitality in the region," continued Shea. Jerry Morris, general manager of NextLevel Communications elaborated on the idea of community leadership. "We are leading a collaboration of best of breed companies from San Diego, for the specific purpose of serving business and the broader economic development of the area. It is exciting to be involved in an opportunity where everybody in the community wins," said Morris. Initial findings from the second phase of the SDRCC/NCBER business census will be released mid-December. For additional information about the economic development initiative, visit www.ncber.com or write to info@ncber.com.
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