California Manufacturers & Technology Association - 2019 Guide - 14
by Gino DiCaro
anufacturing's vital contribution to the California economy is revealed by high-wage job and
growth rates. For example, Los Angeles' manufacturing
base has actually declined 7 percent since the recession.
We can and must do better.
California's manufacturing sector boasts $87k average
wages (2017), more than $288 billion in output (2017), a
higher share of workers without a college degree than
the economy overall, and tremendous economic ripple
effects from long supply chains and economic activity.
Costs and predicability are often the largest challenges
for manufacturers to make long-term investment decisions in California. Electricity rates alone are 86 percent
higher for the industrial class and 49 percent higher for
the commercial class. Workers' compensation premiums
are the highest in the nation. California-specific laws that
pop up every year often make it difficult to understand if a
manufacturer can compete long-term in the state. These
challenges and more have created an environment that
makes it difficult for California companies to scale up
actual manufacturing facilities within the state's borders.
California is still the largest manufacturing state in the
country with more than 1.3 million workers, but given the
state's size, that doesn't tell the whole story.
The state simply is not keeping pace with the national
manufacturing resurgence. This is evident in California manufacturing job growth, investment growth and
reshores as a percentage of the rest of the country.
Further some of the regions that need manufacturing
opportunities the most are seeing dismal manufacturing
CMTA continues to present these facts to the Legislature
and the media and we hope you can join us in sharing the
facts about manufacturing benefits and opportunities, as
well as the challenges of competing in California.
CA manufacturing investments not keeping pace U.S.
Manufacturing investments per 1 million people by state 2017
2017: California attracted
per 1 million people
(106 of 2,346)
Rest of US: 7.8 MFG investments
per 1 million people
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