San Diego is a community that holds the talent, resources and progressive mindset that provides businesses the opportunity to flourish.
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1 San Diego is a community that holds the talent, resources and progressive mindset that provides businesses the opportunity to flourish. George Stelling, President and COO, Altec Lansing
2 The perfect place.
3 The perfect environment. Diverse, educated, connected population Entertainment & tourism hub 70 MILES of coastline ACTIVE OUTDOOR LIFESTYLE 30,000 ACRES of OPEN SPACE OLYMPIC ATHLETES. ARCHITECTS. DEVELOPERS. MANUFACTURERS. SCIENTISTS. Internationally competitive 25 MUSEUMS and a top symphony Public + private sector think tank 70º AVG. TEMP. Culture of collaboration
4 Military Tourism Local Economy Innovation
5 The timing is perfect. > During the last economic cycle San Diego experienced tremendous growth seen in mixed-use business hubs like Carlsbad, UTC, and downtown > The region lacks opportunities for approved large scale development > We re on the cusp of this with South San Diego leading the way
6 Mega Region 27,000 square miles 5 million residents Annual economy of $205 billion san diego imperial county p a c i f i c o c e a n tijuana
7 + 3 million people in San Diego 2 million neighbors to the south 5 million strong binational and multicultural mega region
8 How Mexico Creates US Jobs US-Mexico trade is fundamentally different than trade with any other major country. While imports from China are produced almost entirely (96%) with non-american parts, Mexican imports are, on average, 40% US made. This is because Mexico and the US do not simply trade goods; they work together to manufacture them. How Mexico Got Back in the Game In India, people ask you about China, and, in China, people ask you about India: Which country will become the more dominant economic power in the 21st century? I now have the answer: Mexico. It is no surprise that Mexico now is taking manufacturing market share back from Asia and attracting more global investment than ever in autos, aerospace and household goods. The Financial Times reports that today, Mexico exports more manufactured products than the rest of Latin America put together. Made in Mexico Taking on China: Location provides competitive edge One of Mexico s big advantages over China is proximity to the US market. It takes between 20 days and 2 months to ship goods from China to the US. In the case of Mexico, it takes 2-7 days. The quicker times have gained relevance as US companies that depend on inputs from third parties embrace just-in-time manufacturing, which has become more popular since the 2008 recession because it allows companies to reduce costs by holding smaller inventories. San Diego Mayor Building Economic Bridges to Tijuana Many business leaders here say that marketing San Diego and Tijuana as one large region can help attract jobs and have encouraged manufacturers to move operations from China to Mexico. They mention the success of DJO, an orthopedic company based in Vista, just north of San Diego, with a factory in Tijuana. Over the last several years, the company has added hundreds of jobs on both sides of the border, and several executives work in Tijuana but live in San Diego.
9 Mexico vs. China Cost Ease Control Quality Labor costs Proximity Shipping costs transportation / oil prices From Chinese wages averaged a 19% annual growth Logistics / time zones Language barrier Time to market Quick-shoring Intellectual property control issues Small production volume possible Variability Supply chain diversification More engineering grads in Mexico than any other country on the continent 30% of Mexico s university population enrolled in engineering & tech courses >100K engineering graduates in Mexico per year, 3x US per capita Educated, highly skilled workforce Six Sigma Near-shoring = Quick-shoring The future of smart growth
10 mexico china brazil Mexico has 44 free trade agreements more than any country on earth.
11 Who is near-shoring today?
12 Everyone s doing it. > Currently 570 manufacturing plants in Tijuana > 800 in Baja California > 70% of all companies in Tijuana are US-related or US firms
13 Access Major interstate corridors l International airports Major seaports l Railway l Land ports of entry p a c i f i c o c e a n san diego tijuana tecate 3
14 And what is at the center of this convergence?
15 Millenia is located at the intersection of San Diego and Mexico in the heart of the mega region.
16 The new, stylish, urban hub of South San Diego county. Where big business, hospitality, housing, shopping, entertainment and recreation all mix it up.
17
18 Districts > Class A office > Civic uses > Mixed-use main street > Multiple urban parks > Urban-style residential units
19
20 Employment / corporate trends The new professional workforce > Is educated / discerning > Is in demand > Excels at multitasking > Wants a short commute > Values quality of life > Seeks stimulating environments > Wants opportunities for exercise and relaxation during the workday > Appreciates nearby affordable housing
21 A true mixed-use experience > A permanent shift in how people want to live and work > Community, walkability, sustainability, and connectivity > New efficiencies, new conveniences > More and more workers want to live and work in mixed-use environments > Study finds mixed-use areas safer than commercial-only > An evolved solution for real community
22 South San Diego is thriving. > Millenia will be the new city center > Average household income above $100,000 within a 5-mile radius > Less than 30-minute drive times > Surrounded by established beautiful neighborhoods of Otay Ranch > Anchored by Otay Ranch Town Center with REI, Anthropologie, Apple > Strong amenities, good schools already in place > Affordable real estate
23 Award-winning Otay Ranch Master Plan SR125 To Olympic Training Center Olympic Parkway East Lake Parkway Otay Ranch Town Center Birch Road Mater Dei High School McMillin Lomas Verdes Wolf Canyon Elementary Olympian High School
24 > Space for large-scale development > Abundance of parking > A well-planned community, delivering the new urban experience Why Millenia means business. > A young, educated workforce > Planned future investment & expansion of infrastructure at border > Local development company with strong track record
25 Overall Site plan North Gateway mixed use commercial Business Mixed use civic / office core Main street Residential
26 Phase 1 site plan North
27 Phase 1 North
28
29 Today, what Shenzhen is to Hong Kong, Tijuana is becoming to San Diego. Chris Anderson, former editor of Wired and current CEO of 3D Robotics
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