As California moves to a knowledge-based economy -- one in which intangible assets are often more valuable than tangible assets -- there is a common misperception that manufacturing has diminished in importance.
Many see the high-skilled, highly paid service sectors such as software, web design and wireless communication technologies as the backbone of California's economy. While these service sectors are essential drivers of the state's economic prosperity, it is erroneous to view manufacturing as obsolete. It too is an important driver for growth in our diverse economy.
This study looks at the importance of manufacturing to California's economy. Not only does manufacturing employ 1.9 million people in California, but it also creates millions of more jobs in other industries thanks to its high "ripple effect" on the economy, the study says.