Meeting Date: Feb. 5, 2026
To: Economic Development Subcommittee
From: Matt Sanford, Economic Development Director
Staff Contact: Matt Sanford, Economic Development Director [email protected], 442-339-5987
Subject: Economic Development Strategic Actions Update
Recommended Action
Receive an informational report on the implementation of current economic development strategic actions, discuss and provide recommendations.
Executive Summary
The Economic Development Strategic Plan is a roadmap that guides the city’s economic development activities over a five-year period, which began in 2023. The Economic Development Strategic Actions Plan is the annual implementation of the tactical steps to achieve the goals and objectives of the Economic Development Strategic Plan and outlines the tactical actions that are taken to achieve its goals and objectives. This report provides an update on economic development activities and the implementation of the approved strategic actions.
Explanation and Analysis
Current Trends
Ongoing shifts in national and global economic conditions continue to create uncertainty as Carlsbad businesses adapt to changing market dynamics. Inflation remains above the Federal Reserve’s long- run target, and prices for many goods and services continue to be elevated, sustaining pressure on operating costs and consumer demand, even as inflation has moderated from recent peaks. The Federal Reserve has held interest rates steady, signaling cautious monitoring of inflation and labor market conditions, and many economists anticipate further rate adjustments later in 2026.
High borrowing costs continue to constrain access to credit for small and mid-sized firms seeking to finance growth or manage cash flow, leading many businesses to take a measured approach to investment and hiring. Recent data show slower net job creation nationally, with layoffs in some large sectors—particularly technology and logistics—adding to uneven labor market conditions.
National economic growth has remained positive but below long-term averages, and consumer confidence recently fell to multi-year lows, reflecting heightened uncertainty despite solid consumer spending and GDP growth in late 2025. This mixed picture is consistent with broader forecasts of a
ECONOMIC DEVELOPMENT SUBCOMMITTEE
Feb. 5, 2026
Item #3 Page 1 of 6
“two-speed” or “K-shaped” economy in 2026, with persistent price pressures and slower growth.
Trade policy, tariff uncertainty, and global supply chain disruptions continue to affect manufacturers and imported inputs, contributing to cost volatility for local companies that rely on cross-border supply chains. In a recent discussion of Sports and Active Lifestyle Companies in San Diego, representatives noted they held onto lower prices through the holidays to ensure a positive fourth quarter in 2025, but don’t see any way to maintain prices moving forward, with many moving forward with price increases now and in the future.
W
orkforce conditions remain a defining challenge for the region. Although the unemployment rate has remained relatively low, job growth has cooled, with fewer new job postings. Rising wage expectations combined with high regional housing costs and workforce availability constraints continue to complicate recruitment and retention, especially for entry- and mid-level roles.
I
n California more broadly, economic forecasts describe a bifurcated recovery with strong performance in high-productivity sectors such as technology and advanced manufacturing, while construction, hospitality, and other labor-intensive industries experience slower growth and employment challenges.
A
gainst this backdrop, Carlsbad businesses are adjusting to a slower growth environment shaped by elevated operating costs, tighter financial conditions, labor market imbalances, and ongoing geopolitical and policy uncertainty, while continuing to innovate and compete within key regional industry clusters. Staff will continue to monitor these changes and provide recommendations for program adjustments as necessary.
P
rogress on Current Actions
The following are recent highlights from the implementation of the Economic Development Strategic Plan and reflect progress toward the approved actions.
Sma
ll Business Liaison Program Development
The Small Business Liaison Program continues to expand its efforts to support Carlsbad’s small business community by providing direct assistance and streamlining connections to city resources.
As the program evolves, the city remains committed to providing access to resources and ensuring small businesses have the tools and resources needed to succeed.
D
irect Business Support
Since the establishment of the Small Business Liaison program, the city has provided direct, one-on- one support to 147 businesses representing 279 total support actions, helping them navigate both city-related processes and external business challenges. The most common city-related assistance areas include permitting, business licensing, site selection, and talent and workforce connections. In addition to city services, businesses most frequently seek support related to marketing, financial assistance and funding resources, and general business planning. For these requests, staff leverages partnerships with the Small Business Development Center and other external business organizations to provide technical assistance.
T
his direct support model is designed to reduce barriers, streamline interactions with city departments, and connect businesses to the appropriate resources needed to start, operate, and Feb. 5, 2026
Item #3 Page 2 of 6
grow in Carlsbad. By serving as a single point of contact, the Small Business Liaison helps businesses identify next steps more efficiently, improves customer service, and strengthens overall business retention and resilience.
Digital Resource Hub
Carlsbad businesses can leverage the city’s Digital Resource Hub, which is a free, data-driven business intelligence platform designed to help small businesses and entrepreneurs make informed decisions and increase competitiveness. The Hub provides industry insights, market data, and high- value analytics to help businesses identify opportunities, refine strategies, and better understand local market conditions. Whether researching a new location, analyzing customer demographics, or exploring growth trends, the Digital Resource Hub offers practical, actionable information to support smarter planning and long-term success at no cost to Carlsbad businesses. The platform is available at carlsbadca.gov/business/digital-hub.
Since the launch, Carlsbad businesses have used the city’s Digital Resource Hub to access business intelligence across 84 topic areas, with over 20,000 individual reports and data sets provided. The most frequently explored topics include demographics and consumer spending, industry and market trends, and economic performance indicators.
Office Hours
To improve access to economic development staff and provide personalized guidance to small businesses, the city’s Economic Development team offers Small Business Liaison Office Hours, which provide 30-minute, one-on-one appointments, with both scheduled meetings and drop-in availability. To expand the reach of this program, staff is scaling office hours in partnership with the Carlsbad Village Association by offering regular, in-person sessions at CVA’s office on the first Wednesday of each month from 9:00 to 11:00 a.m., beginning February 4, 2025.
Sessions are designed to help businesses better understand city processes, identify next steps, and connect with relevant internal departments and external resource providers. Appointments are available at multiple times and locations and can be scheduled online at carlsbadca.gov/business/digital-resource-hub/business-office-hours.
Site Selector Tool
To better position Carlsbad as an option for businesses looking to expand or relocate, staff is developing a Site Selector Tool that will sit on top of the city’s existing GIS mapping platform. The tool will allow businesses to view available sites and vacant commercial buildings and apply filters such as zoning, access to utilities, proximity to freeways, the airport, and other relevant location features.
Staff are working with UC San Diego’s I4x Innovation Sprint program to develop the tool in a way that is more easily understandable to business owners who may not be knowledgeable of land use and zoning terms. The platform is being informed by input from city representatives, real estate professionals, and small businesses that have recently navigated the site selection process and is designed to address common challenges businesses face when locating or expanding within the city.
Feb. 5, 2026
Item #3 Page 3 of 6
Once implemented, the online platform will provide a user-friendly, map-based interface with natural-language search functionality, enabling users to better understand applicable zoning and permitting considerations and evaluate location opportunities more efficiently.
As part of the city’s business attraction and retention strategy, the Site Selector Tool will improve access to property and zoning information, help reduce costly delays for businesses, and provide the staff with better insight into market demand. Development of the tool is anticipated to be completed by the end of the calendar year.
Small Business Workshop Series
In partnership with the Carlsbad Chamber of Commerce, staff launched a Small Business Workshop Series to provide timely, practical resources and expert-led guidance to support local businesses.
Offered monthly and free of charge, the in-person workshops address common operational challenges and opportunities for growth while creating meaningful networking opportunities with industry experts and peers. Since launching on September 29, attendance has ranged from 20 to 30 participants per session, reflecting strong and consistent engagement from the local business community. Workshops address current business challenges, such as new marketing strategies, use of AI in business, financial planning, e-commerce, accounting tips, etc. Staff also plan to bring other city departments into the workshop lineup to address areas like FireSafe Carlsbad, new regulations and other pertinent topics.
This ongoing series supports the city’s broader economic development efforts by equipping small businesses with actionable tools to improve resilience, plan for continuity, and foster sustainable growth, while strengthening connections between businesses, city departments, and local business organizations.
Carlsbad Business Open House
In partnership with the Carlsbad Chamber of Commerce and other local business organizations, as well as local schools and higher education institutions, staff have set April 24, 2026, as the date for the inaugural Carlsbad Business Open House. The event is designed to showcase local businesses while connecting them with potential employees and the broader community.
This initiative supports small businesses, startups, and key industry employers by creating direct connections with high school and college students and increasing awareness of the diverse industries operating in Carlsbad. By providing students with firsthand exposure to local companies, products, and work environments, the Open House will help students better understand potential career pathways and identify industries they may be interested in pursuing. Participating businesses will open their doors to highlight the products and services they create, strengthening connections between employers, students, and the local workforce.
Business Webpage Overhaul
Staff is undertaking a comprehensive update to the city’s business webpage, which serves as one of the primary digital entry points for individuals seeking to engage with the city’s economic development services. The update focuses on improving accessibility and user experience by ensuring key business information can be found within one to two clicks, reducing user confusion and minimizing the need for staff follow-up.
Feb. 5, 2026
Item #3 Page 4 of 6
The redesigned webpage will organize information through clear navigation pathways that guide users—such as startups, expanding businesses, or established employers—through applicable resources without requiring them to independently search for information. The updated webpage will provide clear, actionable guidance to support business success, including information on starting, operating, and growing a business in Carlsbad. It will also highlight relevant tools and resources such as industry-specific information, city contracting opportunities, real estate and site selection tools, workforce and talent pipelines, economic data, and other business support services.
Content will be streamlined to remain business-focused and current, avoiding outdated or extraneous information.
The redesigned webpage is intended to serve multiple audiences, including prospective entrepreneurs, job seekers interested in Carlsbad-based companies, existing businesses seeking to expand or relocate, and small business owners navigating operational challenges. To inform best practices, staff reviewed business webpages from more than 20 cities nationwide to ensure Carlsbad’s approach reflects a competitive, user-centered model.
Regional Partnerships
Carlsbad continues to actively participate in regional economic development partnerships to strengthen connections with key industries and employers. Consistent with the Economic Development Strategic Plan, this regional engagement helps position the city as a welcoming and competitive location for business growth and investment.
Through coordination with the Governor’s Office of Business and Economic Development (GO-Biz) and the regional Economic Development Corporation, Carlsbad collaborates on business attraction efforts, responds to requests for information, and shares market intelligence to promote the region’s collective strengths. In addition, through the Innovate78 initiative, the city partners with Escondido, San Marcos, Vista, and Oceanside to reinforce a unified North County approach to economic development. These efforts are further supported by strong relationships with regional educational institutions, including California State University San Marcos and MiraCosta College, which advance workforce development objectives and enhance overall regional competitiveness.
Industry Gatherings
Since the inception of the Life in Action Industry Gathering series, staff have expanded and strengthened engagement through monthly industry-focused meetings. What began as small discussions of four to eight industry leaders centered on operating in the city has grown into well- attended events drawing approximately 40 to 80 participants per gathering. In 2026, the series will continue to convene leaders from Carlsbad’s key industries and will incorporate more structured, industry-specific programming, such as guest speakers and panel discussions.
The January event, held at Docent Brewing in the Village, attracted 75 attendees, many of whom continued networking after the formal conclusion of the program. Participant feedback indicates these interactions are particularly valuable for entrepreneurs and small businesses that may not otherwise have opportunities to engage with industry peers. Hosting these gatherings in Carlsbad reinforces the city’s commitment to being business-friendly and helps position the city as a place where businesses want to establish, grow, and remain.
Feb. 5, 2026
Item #3 Page 5 of 6
Fiscal Analysis
This action has no financial impact.
Next Steps
Staff will continue to implement the Economic Development Strategic Plan actions for fiscal year 2026-27 and will keep the subcommittee informed of progress.
Exhibit
None
Feb. 5, 2026
Item #3 Page 6 of 6
ECONOMIC DEVELOPMENT STRATEGIC ACTIONS
UPDATE
Recommendation: Receive an informational report on the
implementation of current economic development strategic actions, discuss and provide recommendations.
Item 3
ECONOMIC DEVELOPMENT
ECONOMIC DEVELOPMENT
STRATEGIC PLAN
• Supports Strategic Plan Goal - Economic Vitality
• Four Key Goals:
o Support Small Businesses, Startups &
Entrepreneurs
o Develop Workforce and Attract Talent
o Grow and Support Key Industries
o Encourage Placemaking and Engagement
• 55 Actions implemented for fiscal year 2025-26
ECONOMIC DEVELOPMENT
ECONOMIC DEVELOPMENT
Current Economic Trends
• Inflation has moderated but remains roughly 2%
above the Fed’s long-run target, keeping operating
costs elevated
• Interest rates remain high, limiting access to credit and slowing investment
• Consumer confidence has fallen to multi-year lows
despite continued GDP growth
• Many forecasts point to a slower, “two-speed”
economy in 2026
ECONOMIC DEVELOPMENT
Current Economic Trends
• High borrowing costs are constraining growth
and hiring, especially for small and mid-sized
firms
• Job growth has slowed nationally, with
layoffs in sectors such as technology and
logistics escalating
• Workforce challenges persist: rising wages,
housing costs, and recruitment difficulties
• Labor-intensive sectors (construction,
hospitality) are growing more slowly than
high-productivity industries
• Designates a dedicated staff representative to serve as the Small Business Liaison
• Provide direct business support and facilitates connections with appropriate internal and external partners
• Provide a digital resources hub for businesses to access helpful knowledge, information and resource connectivity
Small Business Liaison Program
ECONOMIC DEVELOPMENT
ECONOMIC DEVELOPMENT
Small Business Liaison - Direct Business Support
Services provided may include:
• Navigating city processes
• Questions about business licenses
• Understanding permitting requirements
• Guidance on home-based vs. commercial operations
• Assistance with understanding city codes and regulations • Connection with other city departments
• Access to incentives, grants, or other financial resources • Connection to external agencies and organizations
• General navigation of city departments or contacts
Objective: Provide direct one-on-one support & be the first call for small businesses
ECONOMIC DEVELOPMENT
Direct Business Support – Summary
151 Businesses
Supported
297 Total Projects 37 New Businesses
1,130+ Employees
Supported
7.2 Years Average
Operations
ECONOMIC DEVELOPMENT
Direct Business Support – Industry Analysis
ECONOMIC DEVELOPMENT
Direct Business Support – Services Provided
ECONOMIC DEVELOPMENT
Direct Business Support – New & Existing Businesses
ECONOMIC DEVELOPMENT
Direct Business Support – Total Employees
ECONOMIC DEVELOPMENT
Direct Business Support – Years of Operation
ECONOMIC DEVELOPMENT
Direct Business Support – Business License Status
Scaling business support office hours with new location and dates Office Hours are available at multiple locations:
Carlsbad City Library - 1775 Dove Ln, Carlsbad, CA 92011 When: Every Tuesday
Carlsbad Village Association (CVA) - 2695 State Street, Carlsbad, CA 92008 When: First Wednesday of each month
Time: 9:00 – 11:00 a.m.
Format: In-person, 30-minute appointments
Both locations offer the same services and appointment structure.
Location: Booking Access Points:
• Carlsbad Library Website: library.carlsbadca.gov/programs/events-calendar • City of Carlsbad’s Digital Resource Hub: carlsbadca.gov/business/digital-resource-hub/business-office-hours
ECONOMIC DEVELOPMENT
Small Business Liaison Office Hours
ECONOMIC DEVELOPMENT
Small Business Workshops
Business education series that provides small businesses with knowledge and tools to address key challenges and
pursue growth
Goals:
• Support business resilience and growth
• Provide actionable insights
• Address timely and relevant challenges
Direct Business Support – Ongoing Initiatives
Upcoming Workshop Topics:
• Carlsbad Fire Department – FireSafe Knowledge for Restaurants • SBDC / County of San Diego / City of Carlsbad – Doing Business with the Government – Contracting Opportunities
ECONOMIC DEVELOPMENT
Small Business Workshops – Upcoming Calendar
2026 Dates
• January 26, 2026
• February 23, 2026
• March 23, 2026
• April 27, 2026
• May 18, 2026
• June 22, 2026
Time: 2:00 to 3:00 PM
*Dates/Times subject to change based on availability
Location: Carlsbad
Chamber of Commerce
5934 Priestly Dr,
Carlsbad, CA 92008
Register: Chamber Events Page
https://web.carlsbad.org/atlas/calendar
ECONOMIC DEVELOPMENT
Digital Resource Hub – Businesses & Residents
ECONOMIC DEVELOPMENT
Digital Resource Hub – Website Usage & Analytics
4108
2496
465
439
419
289
2705
1720
275
236
236
238
0 500 1000 1500 2000 2500 3000 3500 4000 4500
To t a l
/business/digital-hub
/business/digital-hub/small-business-insights
/business/digital-hub/shop-local
/business/digital-hub/small-business-advisor
/business/digital-hub/pulse
Digital R esource Hub - W ebsite A nalytics Feb 2025 to Jan 2026 A ctiv e users Vi e w s
ECONOMIC DEVELOPMENT
Digital Resource Hub – Website Usage & Analytics
1705
3403
6365
1094
653
1673
1959
1174 1070
427 453 659
0 1000
2000
3000
4000
5000
6000
7000
Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Total Reports Accessed
Month
Small Business Insights – Total Reports Accessed
ECONOMIC DEVELOPMENT
Digital Resource Hub – Data Driven Decisions
27%
13%
13%
8%
8%
7%
6%
5%
5%
4% 4%
Top Topics Researched by Businesses
Market Research Business Plan
Website Traffic Finding Customers
Insurance Funding the Business
Financing Growth Business Structure
Register Business Startup Cost
Type of Workspace
ECONOMIC DEVELOPMENT
Digital Resource Hub – Data Driven Decisions
121
97 88
62 56
48 34
28 19
15 12
8 4
3 3
0 20 40 60 80 100 120 140
Restaurants & Food Establishments
Construction & Home Services
H ealth & Personal Care
Creativ e & E ntertainment Serv ices
Consulting & B usiness Services
M anufacturing & Industrial
R etail Stores
R eal E state & R ental Serv ices
Legal & Financial Services
Software & T ech Services
T ourism, R ecreation & Hospitality
T ransportation Serv ices
E ducation & Child Services
Energy & Environment
Non-Profit & A rts Organizations
T otal Count
Industry
T op Industry Clusters
Feb 2025 to Jan 2026
Summary:
Exploratory analysis with UCSD’s I4x Innovation Sprint program to research & develop a site selector tool to improve how small businesses identify potential properties that align with city zoning requirements
ECONOMIC DEVELOPMENT
Site Selection Tool
Project Goals: Research and develop an initial prototype for small businesses • Explore how businesses’ uses fit into Carlsbad zoning • Highlight existing or vacant properties for businesses • Align with the city's goals for economic and community development Project Scope:
• Comprehensive Research – outlining business use types and mapping to zoning categories
• User Interface Prototype – the Site Selector Tool
• Exploration of an AI-driven component to support conversational search and natural-language queries, such as, “I want to locate my new ice cream business in the city, where can I go?
ECONOMIC DEVELOPMENT
i4x - Project Timeline
February 24
Comprehensive Site
Selection & Zoning
Research
January 13
Program Kick-off
March 30
Final Zoning Matrix & Key
Considerations Report
April 14
Initial Product Design
April 28
Product Refinement
May 21
Final Presentation &
Demo Day to Partner
Organization
2025
ECONOMIC DEVELOPMENT
Business Open House
DATE: Friday April 24
Local and Regional Partners
ECONOMIC DEVELOPMENT
ECONOMIC DEVELOPMENT
Industry Gatherings
• Monthly gatherings attract 50+ regular attendees from key industries
• Evolved from small discussions to larger forums for trend analysis, business insights, and industry connections
• Serves as an introduction to Carlsbad for some businesses interested in local sites
• Facilitates partnerships and connections among local
businesses and stakeholders
• Informs future programming and resource allocation to support industry competitiveness
ECONOMIC DEVELOPMENT
Business Page Re-design
Primary audiences for assistance:
Individuals who are interested in starting a business in Carlsbad Individuals who are seeking employment opportunities with Carlsbad Companies
Current businesses looking to grow or relocate in Carlsbad Business owners and operators facing challenges or seeking guidance Who is the website redesign for?
ECONOMIC DEVELOPMENT
• Increase Accessibility & User Experience - Make business information easy to find within 1–2 clicks, reduce user confusion and staff follow-up. • Support Business Success - Provide clear, actionable guidance on starting, operating, and growing a business in the city.
• Deliver Relevant Resources - Highlight useful tools such as industry resources and City contracting opportunities.
• Keep Content Focused & Current Ensure pages are not dumping grounds—only business-relevant, up-to-date information.
Goals - Business Page Redesign
ECONOMIC DEVELOPMENT
Goals of the Business Page Redesign?
Main Business Page – Current
Goals of the Business Page Redesign?
THANK YOU!
ECONOMIC DEVELOPMENT