San Diego is now one of the nation's largest hubs for biotech and wireless communications industries. Called the "Wireless City," the number of wireless firms located between Carlsbad, Chula Vista and Escondido, Calif., has quadrupled from 1990 to 1998. The trend shows no sign of stopping, putting tremendous pressure on local employment.

"The critical demand for skilled workers in the San Diego area far outweighs the supply," says Larry Fitch, president and CEO of the San Diego Workforce Partnership. The city has posted an annual 4.5 percent employment growth rate over the last three years.

American Microsystems moved its worldwide headquarters to San Diego in January of last year from Pocatello, Idaho. The company plans to add 50 employees within the next two years. AMI executives cited several reasons for the move: The San Diego region is a well-recognized technology center, the city offers unparalleled quality of life, and it has convenient access to the Pacific Rim.

San Diego city government has also enacted several measures to attract business to the area. The city is encouraging in-fill growth in conjunction with San Diego's Smart Growth Coalition (SGC). SGC is recommending re-zoning in-town retail areas to provide more housing to fill the city's growing need.