San Diego businesses face relocation challenges amid workforce and economic uncertainties

Nearly 40% of local businesses in San Diego are contemplating relocation, with Asian-owned businesses leading the trend at 51%. This alarming statistic was highlighted during a recent meeting of the California State Assembly's Committee on Economic Development, Growth, and Household Impact. The meeting underscored a significant decline in business confidence, with only 13% of businesses feeling secure about their viability, a stark drop from the previous year.

The discussion revealed that businesses with household incomes of $75,000 or less are particularly struggling, facing challenges tied to rising wage mandates and trade uncertainties. Hiring remains a critical issue, with 58% of businesses unable to find qualified employees and 55% citing talent development as a major hurdle. High-growth sectors like logistics, healthcare, and services are under intense pressure, exacerbated by permitting delays and inconsistent program delivery.

The committee emphasized the urgent need for effective public training programs to meet the demands of the economy. However, many businesses are aware of these programs but are not engaging due to complexity and unclear outcomes. The meeting also highlighted significant language service gaps, stressing the importance of culturally competent programs tailored to diverse communities.

To combat these challenges, the committee proposed several solutions, including streamlining technical assistance and increasing outreach for small business support programs. Local partnerships, such as the procurement accelerator, have shown promise in increasing the number of certified Asian and Latino-owned businesses for government contracts, but these initiatives remain limited in scale and funding.

As the committee moves forward, the focus will be on retaining talent and ensuring that the local workforce remains in the region, particularly in light of rising costs of living and housing. The call to action is clear: retention is the new growth, and immediate steps are needed to stabilize and support San Diego's business landscape.