First , t here is not enough land available to satisfy the growth needs of high tech suppliers that are restricted to heavy and light industrial land use designations over the next ten-year time horizon. Second, several of San Jose s key high tech companies believe that proximity to supplier companies is important to their future success. Third , the continued loss of heavy and light industrial land will result in a critical reduction of low and medium skilled job opportunities in the City. Fourth , the encroachment of non-industrial users has a negative impact on the operations of heavy and light industrial uses. Encroachment impacts generally occur when newer non-industrial users begin to complain about neighboring industrial uses.
Encroachment can have significant negative impacts on operating capacity for the industrial users.
A supplier linkage analysis identified the industries that support high tech businesses in San Jose. The analysis focused on the types of suppliers that must locate in light or heavy industrial land. An occupational analysis was done that described the occupational characteristics in terms of the type and number of jobs currently supported by San Jose s heavy and light industrial users . A survey of both high tech industries and supplier industries in San Jose was performed to identify supplier industries that were most important to the high tech base that need to be located in close proximity. The study identified supplier industries that are critical to San Jose s high tech cluster such as sheet metal work, rapid prototyping, and electrical equipment and supplies, and special tools .