About Research Events Centers Newsroom Currency of Ideas
 
Milken Institute | Newsroom: Press Release | California losing manufacturing jobs, including high-tech, faster than nation as a whole, according to Milken Institute
California losing manufacturing jobs, including high-tech, faster than nation as a whole, according to Milken Institute

For Immediate Release
June 23, 2009

LOS ANGELES California is losing a battle with other states to retain and attract manufacturing jobs, and the cost of doing business is largely to blame, according to a report released today by the Milken Institute.

Manufacturing 2.0: A More Prosperous California found that California had 21 percent fewer manufacturing jobs in 2007 than in 2000, compared with a decline of 20 percent nationally and 13 percent among seven states that are competing for the same types of manufacturing jobs.

The report compares California′s performance and policies to those of seven "peer" states Arizona, Indiana, Kansas, Minnesota, Oregon, Texas and Washington chosen for their increasing share of U.S. manufacturing jobs and production, especially in high-tech manufacturing. The report looks at the time period of 2000 — 2007, the latest data available at the time of the research.

The state is hemorrhaging high-tech manufacturing jobs at an even higher rate than in traditional manufacturing industries. California′s employment in this high-wage, high-skill segment is down 23 percent from 2000 levels, as opposed to declines nationally of 19 percent and the peer states′ average of 16 percent. In fact, from 2003 to 2007, encompassing the recovery of the high-tech sector, the peer states gained 24,000 high-tech manufacturing jobs while California lost almost 16,000.

"Widespread misconceptions about the manufacturing sector in California are part of the problem," said Perry Wong, senior economist and one of the authors of the report. "People don′t understand that manufacturing is an integral part of the high-tech and clean-tech economy. If Californians want to build the future economic recovery on high-tech and retain highly skilled workers, they have to address the underlying issues of this sector now."

Driving the decline, the report says, are a reputation for an unfriendly business climate, comparatively high tax rates, a restrictive regulatory climate and unsustainable government spending.

Recommendations in the report include:


  • Streamlining the regulatory procedure for manufacturers, without relaxing or changing regulatory standards, to increase transparency and accountability in the regulatory process.
  • Enhancing public incentives through better planning, coordination across government agencies, and partnering with the private sector.
  • Launching an industry-led campaign to encourage Californians to pursue careers in the highly technical and highly paid manufacturing field.
  • Creating a network of education, training, research, and business incubation centers around the state.
  • Developing a public-private initiative to conduct research and develop new manufacturing processes that are cleaner, more energy efficient, and generate less waste.

The authors examine the consequences lost wages, jobs, tax revenue and economic ripple effects of the state′s inaction to curb the decline and describe what the seven selected states have done to retain more employment and even grow their manufacturing sectors. As the report notes, these states are increasing their competitiveness through work force development, enhancing their business climates, increasing access to capital and investing in innovation.

The report follows up on a previous analysis of California′s manufacturing economy, Manufacturing Matters, released in 2002, that chronicled the state′s dependence on and decline in manufacturing and made recommendations to staunch the flow of jobs to other countries and other states.

The report was sponsored, in part, by the California Manufacturers & Technology Association. The full report and an executive summary are available at www.milkeninstitute.org. An interactive data set for the report and for each of the eight states is available at www.milkeninstitute.org/manufacturing.

Contact
Jeff Monford, Interim Director of Communications
(310) 570-4623
E-mail: jmonford@milkeninstitute.org

About the Milken Institute
A nonprofit, nonpartisan think tank, the Milken Institute believes in the power of capital markets to solve urgent social and economic challenges. Its mission is to improve lives around the world by advancing innovative economic and policy solutions that create jobs, widen access to capital and enhance health. (www.milkeninstitute.org)


Members of the press may direct inquiries to:

Conrad Kiechel
Director of Communications
Phone: (310) 570-4668
ckiechel@milkeninstitute.org


Jeff Monford
Communications Consultant
Phone (310) 570.4623
jmonford@milkeninstitute.org

About MI
About Us
  Careers
  Contact
  Download Annual Report
  FAQs
  Locations
  Our Team

Blog


Topics

Events
  Associates
  Conferences
  Global Conference
  State of the State
  Summits
  Atlanta / California / London
  Forums
  Labs
  Young Leaders

Experts
Newsroom
  Latest News
  News Videos
  Press Releases

Research
  Centers
    Asia
    California
    FasterCures
    Financial Markets
    Israel Center
    Public Health

Initiatives

Publications
  Books
  Financial Innovations Labs
  Milken Institute Review
   Amazon Apps
   App Store
  Research Reports
  Viewpoints
  Search All Publications
Support MI
  Associates
  Donate
  Sponsorships
  Strategic Partners

Follow Us
  @Twitter
  Facebook
  YouTube
  Google+
  LinkedIn
  iTunes U

Related Sites
  Partnering For Cures 2013
  Celebration of Science
  Chairman's Corner
  Melanoma Research Alliance
  FasterCures

©2014 Milken Institute