We know many of you are already settling into a few days off, but hopefully be able to take a few moments to read some of the Key Takeaways and Words of Wisdom from our December 14th panelists.
As we all know, the economy is one of many hot topics, and we hope some of this information will put you in a mindset as the new year approaches to plan more strategically and/or solve problems more creatively.
- Housing poses a big issue in San Diego. Only 1 in 5 people in San Diego can afford the house they live in.
- San Diego loses 14,000 people annually due to wages not keeping up with the cost of living/housing prices.
- San Diego is losing talent to other cities (Seattle, Austin and Northern California) and having a hard time filling open positions, because salaries in other cities are higher. This is particularly challenging for biotech and high-tech industries.
- When companies move their headquarters out of San Diego, whether it’s due to a merger, acquisition or more beneficial regulatory structure, there are significant risk implications to San Diego.
- If corporate taxes are reduced, this could help to bring company operations back to the U.S. and make companies more competitive globally. It may also lead to a lot of buy-backs, takeovers, and investments.
- A recession does not appear to be on the short term horizon.
- Deficits need to be dealt with. This can be done with a political or market solution.
- Climate change is increasing overall insurance costs in coastal areas. Fire insurance, specifically, is on the rise.
Words of Wisdom
Norm Miller: Be an advocate for more density of housing. Think about your grandchildren when you are increasing their debt / supporting policies that will increase their debt.
Lynn Reaser: In 2018, with interest rates low, invest in your business (capital investments). This will be critical to remaining competitive and increasing productivity.
Ray Major: Look at your workforce as an asset, not a liability. Keep your employees happy to retain them.
May you all have a blessed holiday season, and may 2018 bring wonderful things!
