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SANDAG tracks region on livability trends

Propositions bring needed funding for regional improvements

Violent crime up slightly; property crime declines
Traded clusters may hold
key to successful future

Independent Taxpayer Oversight Committee
highlights accomplishments
San Diego comes together
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Traded clusters may hold key to successful future

The I-15 Interregional Partnership (IRP) was created in 2004 by SANDAG and officials from southwestern Riverside to collaborate on strategies to offer residents more choices in where they live and work; and to tackle critical issues affecting the neighboring counties such as urban sprawl, traffic congestion, job growth, and housing.

As part of its ongoing collaboration, the I-15 IRP has released a report, Cluster Analysis and Opportunities for Cooperative Economic Development, to shed light on how to San Diego and Riverside Counties can work together to create a more viable and sustainable interregional economy — one that benefits both counties.

Traded employment clusters are interrelated industries that help to sustain a region’s diverse economy. Companies within these clusters tend to be among the region’s leaders in research and development funding, patent awards, and other key indicators of innovation. All clusters are economic drivers for the region because they are export-oriented.

San Diego County has 16 traded clusters with a total of 320,067 local jobs. These cluster jobs represent one-quarter of the total employment. These cluster jobs pay higher wages ($51,018) than the San Diego average ($43,801). In contrast, 17 traded clusters have been identified for Riverside County with a total of 136,800 jobs. Unlike San Diego, these cluster jobs pay lower wages ($33,600) than the Riverside average ($34,000).

Together, the two-county region shares 16 traded clusters which employ 338,000 people, representing 18 percent of the 1.8 million jobs in the two counties. Looking at ways to create and enhance these shared clusters may hold the key to a more successful interregional future.

The average annual salary for these shared clusters is $48,400 — nearly 20 percent above the average salary for total employment. The substantial overlap in these key traded employment cluster areas offers an opportunity for the two-county region to work collaboratively on strategic initiatives to retain and expand operations and job opportunities in these industries.

The 16 traded employment clusters of the Riverside-San Diego region include:

• Alternative power and natural gas;
• Animal and food production;
• Biotechnology and pharmaceuticals;
• Consulting services;
• Defense;
• Electronic and communication equipment;
• Entertainment and recreation;
• Fruits and vegetable production;
• Manufactured, mobile, and motor homes;
• Musical instrument manufacturing;
• Nursery and floriculture production;
• Residential construction;
• Sporting and athletic goods manufacturing;
• Surgical and medical instruments and supplies;
• Telecommunications; and
• Travel and hospitality

A key concern stemming from the I-15 IRP research is that the largest and fastest growing shared employment clusters offer wages below the region’s average wage rate. Fifty-one percent of job growth has been in lower wage, higher growth clusters, compared to 14 percent in higher wage, higher growth clusters. A continuation of this trend of adding a substantial number of jobs that pay wages below the region’s average will make it difficult for the standard of living to rise. More middle income job opportunities are needed to provide balanced job growth and a steadily rising standard of living.

By working together, the two counties can shape and create shared clusters for optimum economic benefit. For example, the Logistics and Wineries clusters, primarily located in Riverside today, may present opportunities for the two counties to work collaboratively to expand and enhance their contribution to the joint economy.

Based on the information obtained from the traded cluster analysis, the I-15 IRP recommends that cooperative initiatives be undertaken to:

• Provide employment opportunities to ensure a rising standard of living;
• Identify ways to develop, shape, and expand traded clusters;
• Develop and support shared infrastructure investments; and
• Develop workforce training and education programs targeting the labor force requirements of selected traded clusters (i.e., higher growth, higher wage).

Project Manager:
Marney Cox, Chief Economist
mco@sandag.org, (619) 699-1930