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Why San Diego's industrial space is in short supply


Tuesday, May 19, 2015

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Well, it's certainly not because of any spike in manufacturing. While manufacturing employment has been increasing since the recession in 2009, it hasn't been doing so at a rapid pace, said Kelly Cunningham, an economist with the National University System Institute for Public Policy.
“I would not say it has been all that much and still far from recovery to pre-recession levels,” he said.
Our high in manufacturing jobs was in 1989, before the collapse of the aerospace industry. Then, San Diego had 130,000 manufacturing jobs. It peaked again in the late 1990s with electronics and computer manufacturing. Then the dotcom bubble hit, Cunningham said. Today, we remain below 100,000 manufacturing jobs.
The demand for industrial space is likely because we have not been creating all that much additional industrial sites, Cunningham said.
“Even with small job growth and business expansion, there is little space or property available to accommodate it,” he said.