Press Release(s)

U.S. manufacturing resurgence landing mostly outside of California

 May 30, 2018 Sacramento CA -- US manufacturing investment data for 2017 is in. While many states are enjoying robust growth, California is lagging when considering the size of the economy. By earning only 4.5 percent of the total US investments, the state falls short of the 12 percent needed to match California's share of the US population or 10 percent of US manufacturing.

"Manufacturing pays some of the highest wages among all occupations and the sector has a tremendous ripple effect throughout the economy, with long supply chains in the state," said CMTA president Dorothy Rothrock. "Other states know how urgent it is for them to capture new investments when US manufacturers are making major decisions for growth in the current cycle."

California's numbers improved somewhat from 2016 when 3.2 percent of total investments came to California. While the year 2017 marks California's highest attraction rate since 2000, the data shows that California is doing worse in the specific category of expansion-only investment, attracting only one percent of US expansions."

As the largest manufacturing state in the country and a hub of manufacturing innovation, our low rate or manufacturing expansions should set off alarm bells," said Rothrock. It's critical, and even urgent, for our lawmakers and regulators to work toward policies that keep and grow the manufacturers in the state. A decision to expand a company already here would be a no-brainer if the business climate were more welcoming."

"The longer history shows that California enjoyed better success in the 80's and 90's, attracting six percent of the country's investment. Since 2001 California averaged only two percent of the country's annual manufacturing investments."

The total cost of ownership for production is getting lower in the U.S. and it is driving the reshoring of manufacturing from other countries. We must take advantage now!" concluded Rothrock.




California policies and regulations play a large role in the investment decisions and site locations of manufacturers. CMTA's MFG Makers and Breakers bill Press release archive