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Getting More Defensive

LABOR: Defense Industry Provides Bright Spot in Region’s Dark Employment Picture

San Diego Business Journal Staff

Executive Chris Ames says General Atomics Aeronautical Systems in North County has enjoyed steady growth in the past year. | Stephen Whalen
Executive Chris Ames says General Atomics Aeronautical Systems in North County has enjoyed steady growth in the past year. | Stephen Whalen
San Diego County’s jobs picture looks bleak these days with an unemployment rate in double digits — unseen since the early 1980s — but the defense sector is bucking the trend.

General Atomics, which makes the unmanned drones used extensively in the Middle East wars, has added 800 jobs in the past year, nearly all of those coming at General Atomics Aeronautical Systems, an affiliate of GA.

“We’re growing at about 60 persons a month,” said Chris Ames, director of business development for the private company, which is based in Poway and Sabre Springs and does not disclose revenues. “It’s been a steady growth rate.”

GA-ASI, which now has 4,100 employees, could be growing even faster, given its current list of 307 job openings found on its Web site. There are openings for engineering, manufacturing and administrative support jobs.

Overall employment at GA this month was 5,800, up 865 from a year ago, says spokesman Doug Fouquet.

John Nersesian, president of the San Diego Military Advisory Council, a nonprofit representing the military and defense contracting community, says if not for the military’s continued presence locally and its related defense industry, the region would be in a world of hurt.

Smooth Sailing

“We have been a net gainer of jobs here with new commands and the ships that have been added to the San Diego footprint,” Nersesian said.

The Navy plans to commission a new amphibious assault ship, the USS Makin Island, this week, and next year the USS Carl Vinson becomes the third aircraft carrier to be home-ported locally.

The latter relocation from Newport News, Va., translates to 6,400 new jobs and an estimated economic impact of $417 million, according to a study done for the Military Advisory Council last year.

Nersesian says a fully complemented aircraft carrier generates $1 million a week for the local economy, including salaries, supplies and spending by the stationed crew of 3,500 sailors.

According to a 2008 study done for the Military Advisory Council, the Defense Department spent $15.5 billion last year in the San Diego area, up from $12.7 billion in 2005, making the county the largest recipient of federal defense spending in the nation.

The same study noted that planned construction by the Defense Department, including massive projects at Camp Pendleton and Miramar, from 2008 to 2010 is estimated at $2.65 billion and would generate 43,000 jobs.

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  February 8-14, 2010
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