14 Dec Key Takeaways: Economic Outlook 2018: What’s in Store for San Diegans?
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.
- 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!