By Jon Chown
SEASIDE — Change is coming to America’s transportation system and it’s being innovated in our backyard, according to regional government and business leaders who gathered at CSU Monterey Bay on Oct. 17 for the 2025 Annual State of the Region conference. The event discussed key issues and trends shaping the local economy.
Presented by the Monterey Bay Economic Partnership, the conference featured legislative updates from State Assembly and Senate members, panel discussions with local industry leaders, and short expert takes on local trends.
One recurring topic was the region’s rise and leadership in what was termed advanced air mobility technology.
“This industry is maturing and it’s here now,” said Sarasina Tuchen, retired emeritus Senior Scientist at the U.S. Department of Transportation, while leading an industry panel on the subject. Tuchen said AAM consists of at least two new aircraft types, as well as companies creating automation systems for existing aircraft. There is new infrastructure development and more. “It’s a rapidly new sector. It’s not a single technology; it’s a collection of technologies.”
Tuchen explained that the nation’s transportation system hasn’t changed much since President Eisenhower created the national highway system in the 1950s, but major change is coming soon. “This is a thunderbolt to the system,” she said. “This is a generational shift. For the past 60 years we were developing the Jet Age. This is the Jetson Age.”
Tuchen said she brought representatives from 23 federal agencies to the region in June of 2023 to look at what was happening locally and since that time activity has increased. She said legislation will be released after the current shutdown ends regarding AAM, including the national definition of what the industry is.
“The way the act is written will keep America as a leader in innovation. We are going to build smarter and better infrastructure and connect suburban and rural communities across the country,” she said.
And it will all start here. The two national companies leading the way are both located in the region: Joby Aviation and Archer Aviation. Archer is headquartered in San Jose and tests its aircraft at Salinas Municipal Airport. Eric Lentell, Archer’s chief legal officer, said the company started with 75 employees in 2018 and now has about 1,500.
Joby is headquartered in Santa Cruz, where it employs about 1,000 people. Bonny Simi, president of operations, said the company employs another 650 people at its manufacturing and testing facility at the Marina Municipal Airport in Marina, and has more than 2,500 local employees in total. Most of them have come through the company’s training program, with no background in aviation.
“This is truly the center of AAM, and we are employing lots of people in the community,” Simi said. “We went out into the community and found people that were auto mechanics, butchers, seamstresses, and we created training programs.”
According to Simi, the success rate of the trainees was higher than the people with previous aviation experience who were hired from outside the community.
“Be proud. This is an amazing region. We are changing the world right here,” she said.
Archer will be the air taxi provider for the 2028 Olympics in Los Angeles, and Lentell said the company is also working with local agricultural firms on possible uses for the technology. He said the plan for air taxis has met resistance from communities concerned about safety and noise, comparing it to the public’s hesitance toward self-driving taxis.
“We have to emphasize these are safe and have low noise. … This technology can bring great change and opportunity,” he said.
Simi echoed those sentiments. “Imagine if you could get to the Bay Area from here in 15 to 20 minutes? And what if you could get it underneath the cost of an Uber, about $125?”
Simi said Joby operates aircraft nearly every day at the Marina Municipal Airport and the public should come see what is happening.
“The aircraft are unbelievably quiet,” she said. “This allows us to get into communities.”
Lavera Alexander, chief growth officer for the Monterey Bay Economic Partnership, said Santa Cruz and Monterey County is the only region in the state that has received state funding for AAM development. Regional airports are going to be equipped to handle AAM, including charging stations being built.
“The promise of what this program can do for this region, it’s mighty,” she said. “We will be a model for others to emulate.”
Companies outside the region are taking notice. Axel Radermacher, co-founder of ODYS Aviation, also spoke on the panel. His company focuses on unmanned aerial vehicles, or UAVs, which are used for cargo and defense missions. Currently, it has a UAV that can carry 150 pounds up to 450 miles.
“We are headquartered in Long Beach, but we are looking at relocating to the region,” he told the audience.
Regional Health Care
Most every issue affecting a local resident’s pocketbook was discussed at the conference, including health care. Dr. Allen Radner of Salinas Valley Health gave a perspective on what challenges regional health care providers are facing and what’s coming next. Neither were very positive.
Radner said the United States spends more on health care than other nations, but has worse outcomes. “It shocks people to hear that the median life expectancy right now in Bangladesh is better than in Mississippi.”
He said the recent passage of the Big Beautiful Bill by Congress will make things worse because it will further reduce hospital reimbursements for care. Regionally, patients at hospitals are insured about 25% of the time, compared with a state average of 40%. Medi-Cal reimburses about 50% of the cost of care, while Medicare pays about 75% to 80%, according to Radner. The shortfall is covered by patients with private insurance, causing rates to climb.
According to Radner, getting reimbursed, billing insurance agencies, has become such a chore that about 20% of care providers’ time and costs are put towards it. He said it also costs about $100 million for a medium-sized hospital to install a current medical records system. This, in turn, has made private practices obsolete. In the 1980s, 76% of medical practices were independent, and now 78% are contracted models. The result is fewer providers, less competition and higher prices.
Radner said even the survivability of local systems was in question, noting Watsonville Community Hospital is especially struggling financially.
“Watsonville is looking for a partner. It’s not working there,” he said.
In addition to rising costs, Radner said the Centers for Disease Control and Prevention was being undermined and the National Institutes of Health’s actions were “problematic.” Local hospitals, he added, are no longer protected from immigration raids.
“This is a huge issue in our region,” he said.