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Military

San Diego's military industry responds to increased competition for defense drone dollars

Nikia Clarke, the chief strategy officer of the San Diego Regional Economic Development Corporation, talks from a stage to a group of seated local defense industry representatives during the rollout of the EDC's new defense innovation roadmap and report on Tuesday, Oct. 27, 2026.
Nikia Clarke, the chief strategy officer of the San Diego Regional Economic Development Corporation, talks to local defense industry representatives during the rollout of the EDC's new defense innovation roadmap and report, Oct. 27, 2026.

San Diego's defense contractors are working to ensure the Pentagon's renewed enthusiasm for spending on emerging weapons technology continues to benefit local companies, and now they have a plan make it happen.

The San Diego Regional Economic Development Corporation (EDC) announced the effort at a news conference Tuesday.

The EDC released a report on San Diego's defense industry that includes recommendations — a "road map" — for initiatives to maximize the region's potential capacity.

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"As companies and as technologies mature, the speed with which they need to grow jobs and build factories is a moment that we're trying to meet as a region," said Nikia Clarke, the chief strategy officer of the EDC.

The issue, according to the EDC, is that even though San Diego has significant legacy military assets, other regions are starting to organize and coordinate their own marketing to attract defense manufacturers and contracts.

The moment is one in which the Pentagon has made it clear to contractors it wants to spend money and bring new systems into service quickly.

At the annual San Diego WEST defense conference in February, U.S. Department of Defense leaders told industry representatives the Pentagon had a fresh appetite for risk as far as investments in Artificial Intelligence technology.

Last week the department asked contractors for unmanned surface vessels capable of launching missiles — and it wants them fast.

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The Pentagon is asking for "mature, production-ready" systems capable of being deployed to conflict areas within 120 days.

The EDC's report said San Diego ranks 10th in the U.S. in overall defense contract spending — but it's No. 1 when it comes to autonomous systems.

According to the report, the Pentagon spends about $1.5 billion on autonomous and unmanned systems contracts in San Diego — the Washington, D.C. metro area — at the No. 2 spot — receives about $700 million.

Democrats Scott Peters and Sara Jacobs attended Tuesday's announcement in San Diego.

Jacobs said it's important for local industry to be ready to meet the demands of the modern military.

"We can’t get complacent and we can’t think that these contracts and companies will always keep knocking on our door — especially when other regions are starting to compete," Jacobs said.

The defense industry represents about 20% of San Diego's economy, the report said. It also said there's significant room to grow.

The EDC and San Diego Military Advisory Council — a nonprofit that promotes military and defense interests in the region — are partnering to advance the report's recommendations.

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