Daily Business Report-Aug. 31, 2017
Home under construction. A surge in building permits accounted for a rise in the economic index for July.
San Diego Economy Bolstered in July
by Large Increase in Building Permits
The USD Burnham-Moores Center for Real Estate’s Index of Leading Economic Indicators for San Diego County rose 0.5 percent in July, led by a huge increase in building permits and supported by smaller gains in consumer confidence and the outlook for the national economy.
Local stock prices were also higher, but just barely so. These gains outweighed losses in in initial claims for unemployment insurance and in help wanted advertising to push the USD Index to its eighth increase in nine months.
With July’s increase, the outlook for the local economy remains for solid growth for the rest of 2017 and through at least the first half of 2018. One potential problem for the local economy is the soaring price of housing, both in terms of purchasing and renting. While this is good for people who own property, the local economy is hurt because companies either have trouble attracting workers or have to pay their workers more, thus increasing labor costs.
The reason for the surge in housing prices is simple supply and demand, with demand strong and supply tight. Since the bottom in 2010, almost 145,000 jobs have been added to the local economy. To accommodate those workers and their families, about 115,000 residential units should have been built. Instead, only about 47,000 units have been authorized by building permits, leaving a shortage of 68,000 units. Some would argue that this shortage is overstated as 2010 prices and rents were artificially low. But it could also be understated as it doesn’t factor in units taken off the market, either through demolition or through the relatively new phenomenon of short-term vacation rentals, which have affected an estimated 10,000 units.
To Buy a Typical Home in San Diego,
You Would Need to Earn $116,875 a Year
Mortgage research firm HSH says home buyers would have to earn a salary of $116,875 a year in order to afford the principal, interest, tax and insurance payments on a median-priced home in San Diego. That’s with a monthly payment of $2,727, a medium home price here of $605,000 and a mortgage rate of 4.21 percent.
Lawrence Yun, National Association of Realtors chief economist, says home prices in most metro areas continued their fast ascent in the second quarter because supply remained at pitiful levels. “Listings typically flew off the market in under a month (28 days) — and even quicker in the affordable price range — in several parts of the country. With new supply not even coming close to keeping pace, price appreciation remained swift in most markets,” said Yun.
Added Yun, “The glaring need for more new home construction is creating an affordability crisis that needs to be addressed by policy officials and local governments. An increasing share of would-be buyers are being priced out of the market and are unable to experience the wealth building benefits of homeownership.”
Protect Herbivores, Preserve Coral Reefs
Scientists from Scripps Institution of Oceanography at the University of California San Diego predict that protection of seaweed-eating fish and invertebrates will help maintain the health of a Hawaiian coral reef by leveling the competition between fast-growing seaweed and slow-growing coral.
In a paper published in the journal Ecosphere, the Scripps team used data from Hawaii’s Kahekili Herbivore Fisheries Management Area, the world’s first herbivore reserve, to evaluate the benefit of a new management policy that specifically protects parrotfish (Uhu, in Hawaiian), surgeonfish (Api), and other herbivores. Such marine organisms keep in check the spread of seaweed that would otherwise overtake and damage or destroy coral reefs.
According to the study’s lead author Emily Kelly, a marine ecologist at Scripps and former Scripps graduate student, their results are very promising.
Scripps to Shutter its Hospice Service
Less than five years after it started offering hospice care, Scripps Health is poised to shutter the service, notifying patients that they will need to find new providers by mid-September. — San Diego Union-Tribune
$10.5 Million Amgen Foundation Grant
to Expand Biotech Teacher Education Program
Amgen Foundation has renewed its partnership with the San Diego Workforce Partnership to bring the Amgen Biotech Experience (ABE) to local classrooms as part of a $10.5 million investment in the longstanding science education program. The San Diego Amgen Biotech Experience will receive $75,000 annually for three years.
The San Diego ABE program provides professional development for science teachers, exposing them to a new biotechnology lab curriculum. Designed by Amgen scientists and educators, the program offers a solution to prepare more students with the STEM competencies necessary for careers in the modern workforce.
At the end of the course, teachers are provided access to equipment and supplies necessary to implement the new curriculum in their classroom. The program is offered in partnership with Southern California Biotechnology Center at Miramar College. More than 230 teachers have participated in the program since its adoption by SDWP in 2008 and an estimated 73,000 students have been impacted.
Cubic to Present Combat Training Systems
at International Defense Exhibition
Cubic Corp. will showcase a range of combat training systems and service offerings at the 25th International Defense Industry Exhibition MSPO that will take place in Kielce, Poland from Sept. 5 to 8.
The company it will exhibit live training; performance-based training; live, virtual, constructive and gaming training; and augmented reality and geometric pairing platforms during MSPO.
“Military operations for the foreseeable future will take place in increasingly complex operating environments,” said David Buss, president of Cubic’s global defense segment.
Buss, an inductee into Executive Mosaic‘s Wash100 for 2017, added the company aims to demonstrate how it can help military customers manage training activities and operational readiness. Cubic also plans to conduct three presentations on military training at the event.
MSPO is an annual exhibit of military equipment and armaments as well as logistics, security and rescue technologies.
ViaSat to Provide Mobile Device
Security Software to U.S. Military
ViaSat has received a contract of undisclosed value to supply a cybersecurity platform for U.S. military users to protect wearable computing devices against threats. The ViaSat Mobile Dynamic Defense software will work to secure iGov’s Tactical Local Area Network Field Computing Device — wearable platforms that are designed to provide dismounted soldiers with a suite of situational awareness and digitally-aided close air support applications, ViaSat said.
The two companies are collaborating under the contract and working with the U.S. government to further develop the device. In May, iGov conducted a week-long test of FCD-W at a Defense Department test range in Nevada to demonstrate how the device transmits digital information. ViaSat’s MDD software works to monitor and protect sensitive information hosted on end user devices and help such devices gain authority to operate on a U.S. government network.
Association of Fundraising Professionals
to Present National Philanthropy Day Awards
The Association of Fundraising Professionals San Diego Chapter honorees will be recognized at the annual National Philanthropy Day event on Nov. 14 at the Del Mar Fairgrounds from 11 a.m. to 1:30 p.m.
The annual celebration honors the dedication, leadership and community contributions of San Diego County’s philanthropists, volunteers, professionals and organizations. The individuals and groups are part of the reason why San Diego was named the No. 1 most philanthropic city in the nation (Charity Navigator Survey, June 2017).
The 2017 National Philanthropy Day honorees are:
- Outstanding Philanthropists: Gary and Mary West
- Outstanding Philanthropic Business: San Diego County Credit Union
- Outstanding Grantmaking Organization: San Diego Downtown Lions Club
- Outstanding Development Professional: Jeanne E. Schmelzer, CFRE
- Outstanding Fundraising Volunteer: Sister Ann Durst
- Outstanding Organizational Volunteers: Connie Matsui and Debra Farrar
- Outstanding Youth/Student Volunteers: Azareel Canizales and Charlotte Schmidt
Scientists Develop Novel ‘Dot’ System
to Improve Cancer Detection
Researchers at Sanford Burnham Prebys Medical Discovery Institute have developed a proof-of-concept nanosystem that dramatically improves the visualization of tumors. Published in Nature Communications, the platform achieves a five-fold increase over existing tumor-specific optical imaging methods. The novel approach generates bright tumor signals by delivering “quantum dots” to cancer cells without any toxic effects.
FDA Approves Latest Insulin Pump
Made by Tandem Diabetes Care Inc.
Tandem Diabetes Care Inc., a medical device company and manufacturer of touchscreen insulin pumps, announced U.S. Food and Drug Administration approval and commercial launch of the t:slim X2 Insulin Pump with Dexcom G5 Mobile continuous glucose monitoring (CGM) integration, the first sensor-augmented insulin pump approved to let users make treatment decisions without pricking their finger. The software featured on this pump will also be available to current t:slim X2 Pump users at no cost via remote software update, allowing them to add CGM integration to their existing pumps from home using a personal computer.
Assemblyman Rocky Chavez Appointed
Chair of Governor’s Military Council
Gov. Jerry Brown has appointed Assemblyman Rocky Chavez, 66, of Oceanside as chair of the Governor’s Military Council, replacing Ellen Tauscher, who had been chair since 2013. Brown also announced the reappointment of Edward Hanlon Jr., 72, of Carlsbad as vice chair of the Governor’s Military Council and chair of the council’s Strategic Planning Committee.
Chavez has served as a member of the council since 2013. An Assemblyman since 2012, he served as undersecretary at the California Department of Veterans Affairs from 2009 to 2010 and as a member of the Oceanside City Council from 2002 to 2009. The position does not require Senate confirmation and there is no compensation. Chavez is a Republican.
Hanlon has served as vice chair since 2016 and as a member since 2013. He has been president at Transatlantic Insights LLC since 2012. He was vice president at Raytheon and president at Raytheon International Europe from 2007 to 2012 and served as U.S. military representative to the North Atlantic Treaty Organization Military Committee from 2004 to 2006. He served as commanding general of the U.S. Marine Corps Combat Development Command from 2001 to 2004 and of the U.S. Marine Corps Base Camp Pendleton from 1998 to 2001. The position does not require Senate confirmation and there is no compensation. Hanlon is a Republican.
Jacqueline Jackson Reappointed to
State Independent Living Council
Jacqueline M. Jackson, 61, of San Diego, has been reappointed to the California State Independent Living Council by Gov. Jerry Brown. Jackson has served on the council since 2013.
Jackson has been a guest lecturer at San Diego State University since 2002 and an independent nonprofit management consultant since 1994. She was development director and a consultant at the San Diego Center for the Blind from 2002 to 2004 and director for charter school development at Norman and Norman Inc. from 1996 to 2005.
Jackson was an education consultant at the School Futures Research Foundation from 1994 to 1996 and director of education, health and family support services at the Urban League San Diego from 1988 to 1994.
She is a member of the San Diego County Committee for Persons with Disabilities, San Diego County Disability Issues Committee, American Council of the Blind, San Diego County Voter Accessibility Committee, Deaf and Disabled Telecommunications Program’s Equipment Program Advisory Committee, the San Diego Braille Club, among others.
Jackson earned a Master of Arts degree in nonprofit leadership and management from the University of San Diego. The position does not require Senate confirmation and there is no compensation. Jackson is a Democrat.
Christopher Hawkins Appointed VP
of California Bankruptcy Forum
Sullivan Hill shareholder Christopher V. Hawkins has been appointed vice president of the California Bankruptcy Forum for the 2017-2018 term.
As vice president, Hawkins will manage the Pro Bono Project and oversee all pro bono efforts of CBF. CBF is committed to supporting pro bono efforts of the various local Bankruptcy Forums and County Bar Associations throughout the state.
Managing partner of the firm and member of the executive committee, Hawkins practices in the insolvency and commercial bankruptcy, business transactions, and commercial and business litigation practice groups. He represents a variety of corporate debtors, bankruptcy trustees, receivers, banks, trade creditors, asset purchasers and other parties in interest in all aspects of commercial insolvency, including bankruptcies, receiverships, and assignments for the benefit of creditors. He also represents clients with non-insolvency financial matters in both the transaction and litigation contexts.
The California Bankruptcy Forum is an organization comprised of various professional disciplines that are involved in the bankruptcy system and process in the State of California.
Dawn Laundrup Named Director of Surgical
Services at Palomar Medical Center Poway
Dawn Laundrup, RN, has been appointed the new director of surgical services at Palomar Medical Center Poway. Laundrup comes to Palomar Health with 20 years of nursing and leadership experience, most recently managing 11 operating rooms at the Level 1 Trauma Facility UC San Diego Medical Center, Hillcrest.
Laundrup is a decorated military veteran, having served seven years as an Air Force nurse corps officer. She was awarded the prestigious Air Force Commendation Medal for leading the implementation of a highly successful surgical safety program.
Laundrup received her Bachelor of Science in nursing from the University of Arizona and holds a dual Master of Business Administration and Master of Health Administration from the University of Maryland.