Daily Business Report-July 19, 2013
Sequestration Harming Job Growth in San Diego
Job growth in San Diego is being hurt by equestration, according to a report released yesterday by the National University System Institute for Policy Research. Since the start of 2011, the study says, employment in the five defense-dependent industries in San Diego has been flat while the rest of the economy has seen an increase in employment of more than 7 percent. Those five industries — shipbuilding, aerospace, research and development, electronic instruments manufacturing and facilities support services — represent 87,000 payroll jobs or 8.2 percent of private sector employment in San Dego.
“During periods of most uncertainty over federal government spending cutbacks, employment among the defense industries shows marked and significant downward trends,” the report said.
The institute report forecasts that retail sales and other consumer expenditures will be “negatively impacted” over the coming months because of mandatory furloughs of federal civilian workers. “As of the latest count, the majority of 46,000 federal employees (not including active-duty military) working in San Diego are impacted by the unpaid-furlough order,” the report said.
San Diego County’s Unemployment
Rate Jumps to 7.3 Percent
Nonfarm employment up by 7,500 jobs over the month; up by 19,300 jobs over the year
San Diego County’s unemployment rate jumped to 7.3 percent in June, up from a revised 6.8 percent in May, and below the year-ago estimate of 9.3 percent. The increase was attributed in part to college graduates and high school students beginning a search for jobs, U-T San Diego reported.
California’s jobless rate for June was 8.8 percent. The national unemployment rate was 7.8 percent
Between May and June:
Total nonfarm employment increased from 1,281,900 to 1,289,400, a gain of 7,500 jobs. Agricultural employment declined by 200 jobs, or 1.9 percent.
Trade, transportation, and utilities reported the greatest month-over gain, adding 2,200 jobs. Wholesale trade (up 1,100) accounted for half of the job growth in this sector, followed by a gain of 900 jobs in retail trade. Transportation, warehousing, and utilities added 200 jobs.
Seven other sectors also posted job gains over the month. The most significant job gains came from leisure and hospitality (up 1,900); construction (up 1,600); and government (up 1,300).
Educational and health services (down 900) recorded the greatest month-over decline. Educational services declined by 1,100 jobs. Slight job growth in health care and social assistance (up 200) offset the overall job losses in this sector.
Between June 2012 and June 2013:
total nonfarm employment increased by 19,300 jobs, or 1.5 percent. Agricultural employment declined by 300 jobs, or 2.9 percent.
Educational and health services reported the greatest year-over gain, adding 4,400 jobs. Health care and social assistance (up 2,600) accounted for more than half of the job growth in this sector, primarily from ambulatory health care services (up 2,400). Educational services added 1,800 jobs, mainly from colleges, universities, and professional schools (up 1,600).
Seven other sectors also posted positive job growth over the year. The most notable job gains came from professional and business services (up 4,300); trade, transportation, and utilities (up 3,400); and leisure and hospitality (up 3,000).
One nonfarm industry recorded year-over job losses: manufacturing (down 100). Employment in construction and mining and logging remained unchanged over the year.
Filner Supporters Call for ‘Due Process’
Supporters of embattled San Diego Mayor Bob Filner Thursday called for him to be provided his due process rights in the wake of sexual harassment allegations and resulting demands that he resign, City News Service reports. The news conference, attended by about 30 of Filner’s backers, came just minutes after the mayor’s office sent an email to reporters highlighting his continued governance of the city. Longtime immigrant rights activist Enrique Morones read a long list of Filner’s accomplishments over the years, including his participation in the civil rights struggles in the South in the 1960s, support for close ties with Mexico and legislation that directed benefits to Filipino veterans of World War II. “Bob Filner, you deserve due process,” Morones said. “It is not only your right, but you have earned it more than most. We will not endorse a public execution.” Josie Calderon, president of the Mexican-American Business and Professional Organization, said Filner is being attacked “almost as a public lynching.”
Council Connections in Partnership for Group Purchasing Services
Council Connections, a group purchasing organization, and Norton Healthcare of Louisville, Ky., have entered into a partnership for group purchasing services. Norton Healthcare is an owner of Premier Inc. and parent company of Alliant Purchasing. Under the new agreement, Council Connections, Norton Healthcare and Alliant Purchasing will combine their volumes for greater contract aggregation and improved negotiating power, as well as provide value-added services for their members. Currently, Council Connections serves over 3,200 members.
Trigild Lenders Conference Set for Oct. 16-18 in Downtown San Diego
Robert Guest U.S. editor of The Economist, and Sam Chandan, president and chief economist for Chandan Economics, will headline the annual Trigild Lender Conference set for Oct. 16-18 at the Westin Gaslamp in Downtown San Diego. According to conference founder and Trigild chief operating officer Judy Hoffman, hundreds of participants will convene to hear Chandan and Guest, as well as leading commercial real estate and finance industry leaders, address topics related to the economy, finance, commercial real estate and the lending industries.
Miramar Wholesale Nurseries Sold to Orange, Calif., Grower
Village Nurseries Wholesale LLC or Orange, Calif., a specialty grower for landscape professionals, has purchased Miramar Wholesale Nurseries Inc. in San Diego for an undisclosed amount. The deal represents one of the largest nursery acquisitions in California in years and is expected to add $11 million to $12 million to Village Nurseries’ sales in 2014. Miramar Wholesale Nurseries was established in 1993 and provides landscape plant materials for commercial property managers and landscape contractors in San Diego, Los Angeles, Orange, Imperial and Riverside counties. Its 200-acre site houses a 170-acre wholesale operation, a commercial landscape center and a team of horticulturists.
Yapert Secures $1.2 Million in Seed Money
Yapert, an interactive mobile magazine, has secured $1.2 million in seed money led by Tech Coast Angels, the largest angel investor group in the United States. Additional investments were from Desert Angels, Pasadena Angels and other independent angel investors. Yapert, which raised $500,000 earlier, will use the investment for continued platform expansion and sales and marketing efforts. The idea behind the company comes from CEO and founder Phil Kelly, former Motorola vice president and president of the Dell Computer Corporation Asia-Pacific. Kelly’s co-founders include Rick Cooper and Michael Young, both tech veterans and entrepreneurs.
Manchester Grand Hyatt San Diego Completes Room Renovations
The Manchester Grand Hyatt San Diego has completed the renovation of its 1,628 guest rooms and opened a new Executive Club Lounge on the 33rd floor Grand Club Level. The next phase of the renovation will include the revamping of meeting facilities, lounges, restaurant and public spaces with completion set for 2015.
Holocaust Survivors Rose and Max Schindler to Speak at Grossmont College
Holocaust survivors Rose and Max Schindler will address students, staff and faculty Monday at Grossmont College, where students have been studying the Holocaust and making plans to take a class trip to visit the Museum of Tolerance in Los Angeles. The Schindlers are making the appearance as part of the Summer Institute Program for incoming freshmen from immigrant and economically disadvantage families getting a head start on college. Both Rose and Max Schindler were imprisoned as teenagers by the Nazis and survived the ghettos and concentration camps. Max was sent to the ghetto of Theresienstadt, and Rose is a survivor of the infamous Auschwitz concentration camp. The couple met in England after the war, when they were both 16, and were married several years later, eventually immigrating to the United States.
