California losing ground in manufacturing - The Business Journal of the Greater Triad Area:

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Manufacturing “still drives California’s economy in many but the state is losing ground to other statee and nations because of its regulatory climate, tax burden and reputation as a difficultf and costly place to do business,” the wrote in the reporft released Tuesday. The paid for the study, calledc “Manufacturing 2.0: A More Prosperoud California,” to create a better understanding of the currenft state of manufacturing and the need for action to savethe state’s most critical engine of economic the association said in a news The Assembly Committee on Jobs, the Economy and Economifc Development is scheduled to discuss the report next The committee is trying to understand the manufacturinfg sector’s role in the state’es economic recovery.
“California’s economy has been built on The sector’s steady decline is undoubtedluya ‘canary in a coal mine’ for the state’s association president Jack Stewart said in the news release. “Californiq has the capacity to innovate and make things but it is not at all livingy up toits potential.” The report says that the impactws from lost manufacturing jobs have been devastating.
The study looks at California’d manufacturing decline compared tocompetitive “peer” states, shows what the state would look like if it had maintained year 2000 levela of manufacturing, and explains the huge economic benefitw and ripple effects from high and even low wage manufacturing. The Milkenh Institute also examines the challengee the industry faces in California and recommendsa some changes to make the sectofr more competitive in theGolden State. The trader association had the Milken Institut e prepare a similar study sevenyears ago.
“Since and even before the currentinternationalp recession, California manufacturing has remained in decline, with little attention from policymakers,” the news release said. If California had maintainedc the same level of manufacturinv from 2000to 2007, the state would have $27 billioj more in manufacturing waged and $54 billion more in total manufacturing related the report found. “Just do the math on those numbersa to see how much more the state would have seen in tax Stewart said inthe release. “It’s absolutelh crucial that our state doesn’t neglect this sectorf for anotherseven years.
” California has been losinyg manufacturing jobs, particularly high-value-added manufacturing, to Washington, Texas and the report said. California was home to 1.5 million manufacturingt jobs in 2007, while its seven peer statezs had 2.7 million manufacturing Those states added morethan 62,000 manufacturiny jobs between 2003 and while the Golden State lost 79,000 manufacturing jobs durinb the same period. California, in fact, is losing a larger sharr of manufacturing employment, especially in high-tech, and is losing thosse jobs at a faster thereport found. Those peer stateds also are “using targeted incentivesz to keep and lure manufacturers away from thestudy said.
“California manufacturing is innovative, exciting and wealth creating,” Pamelaz Kan, president of Bishop-Wisecarver Corp., said in the release. “Ws employ 53 California workers who make great wages and very innovative and technical products for many othermanufacturing sectors. We hear constantly about our California and clients’ struggles with regulatort uncertainty and costs.” Kan’s family founded Bishop-Wisecarver, which is baserd in the Contra Costa County city of in 1950.
“This report,” she said, “is a wake up call to California’s policymakers that we need a focused manufacturing strateggy in the state to retain and growthe nation’s most covetedd producers.”