The majority of exports was in computers and electronics,
transportation, machinery, plastics and rubber, metal, and processed food. In
these sectors greater sales often lead to greater profits and expansion of
buyer networks that often leads to production expansion for companies.
Corporations expand production to sell more items while
seeking to increase their returns from economies of scale. Expanded production
sometimes leads to more efficient operations which in turn impacts profit
margins. Profit margins stoke the fire of expansion as firms have healthy
returns and seek to maximize those returns through additional investments.
It is those investments in capacity that eventually leads to
increasing employment. Highly skilled
and educated employees are likely to find higher wages than employees that have
not learned market relevant skills.
The economic system relies on exports and sales. Only
through pro-growth strategies that encourage alignment of the local hubs to
international needs can long-term employment stability be found. When market
adjustment doesn’t happen, or employment is artificially inflated through
excessive legislation, there will be long-term economic consequences.
San Diego should expect increasing employment opportunities
in those sectors that have long-term relationships/contracts with international
companies and fit within current growing market trends. A boom in growth in
2014 often results in increased hiring in 2015. There are many other factors
that can impact this but if the invisible free market hand takes precedence we
should see new hiring.
