‘Innovation industries’ have a nearly $8 billion impact on local economy
Reports highlight projections for 6,250 new jobs by 2027
– New reports from REACH Central Coast were released this week which detail the economic impact of several Central Coast industries. The reports highlight projections for 6,250 new jobs by 2027.
The aerospace, precision manufacturing, technology and clean tech industries provide 32,000 jobs in San Luis Obispo and Santa Barbara Counties, contribute nearly $8 billion in economic impact, and are poised to spur an additional 6,250 jobs across the regional economy by 2027.
Agriculture and agriculture technology, meanwhile, encompass 35,000 jobs and are projected to grow 10% by 2027, far outpacing state and national projections of 1% and 5%.
Those are some of the findings in a new set of in-depth reports on four Central Coast industries targeted for growth potential. The reports draw on extensive data collection and analysis to paint a picture of each industry’s landscape, talent pipeline, economic impact and growth projection.
Among facets and factors unique to each industry, the reports also note the common challenge of a regional outmigration of workers that will require targeted talent development and attraction efforts to offset.
“These forward-looking industries are a growing part of the regional economy and primed for further expansion,” REACH President/CEO Melissa James said. “These four reports provide analysis and insights to help the region’s companies, education and workforce providers, and policy makers work collectively to reach the brass ring of thousands of new good jobs on the Central Coast.”
REACH commissioned the reports to support the region’s growth of these key industries. They were funded by the U.S. Economic Development Administration grant that also funded development of the Resilience Roadmap, the two-county region’s first-ever comprehensive economic development strategy, with local matching from the Counties of San Luis Obispo and Santa Barbara and Bank of America. TIP Strategies, also the facilitating consultant on the Resilience Roadmap, developed the reports, with data and analysis by Lightcast and guidance from four regional industry councils.
Report highlights / key industry snapshots
Aerospace and precision manufacturing
- A pioneer in space launch, infrared, and sensing technologies, the region is well positioned to capture investment in these
fast-growing global industries. - The region’s strengths in manufacturing navigational, measuring, electromedical, and control instruments represents a unique advantage.
- The majority of space and aerospace jobs are based in Santa Barbara County, though SLO County has seen dramatic growth that is projected to continue.
- Precision manufacturing jobs are among the highest paying in the region, averaging annual wages of $146,490.
Agriculture and agtech
- The industry plays an essential role in the regional economy, accounting for nearly 1 out of every 10 jobs.
- Employment growth has outpaced the state and nation for two decades, a trend expected to continue. Considering ripple effects, projected growth would spur more than 12,500 jobs across the economy by 2027.
- Talent development is vital, considering the skills and technology demands of the industry’s continued modernization, as is addressing sustainability challenges.
Clean tech and renewable energy
- As a long-standing energy hub for the state, the Central Coast’s power generation and transmission capabilities serve as a vital economic driver for the region.
- The regional industry has added 3,700 jobs over the last two decades, with growth rates outpacing the state and U.S.
- Annual wages average $113,132, and many of the most in-demand jobs have low barriers to entry.
- Regional strengths and opportunities extend beyond energy production to water conservation, sustainable building practices, and environmental consulting.
Technology
- The region is a growing tech hub with a mix of globally recognized companies and locally grown innovators and the entrepreneurial assets to support further expansion.
- The industry has added 5,000 jobs over the last two decades. Though the majority of the growth has been in Santa Barbara County, the number of tech jobs in SLO County has doubled in that time.
- The region’s strengths extend beyond traditional technology to include engineering, testing, and research and development.
- There’s a robust regional talent pipeline, and annual wages average $151,861.
REACH is a regional economic action coalition serving San Luis Obispo and Santa Barbara Counties. Find more at reachcentralcoast.org.
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