California losing ground in manufacturing - Dayton Business Journal:

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Manufacturing “still drives California’s economy in many but the state is losing grounfd to other states and nations because of itsregulatory climate, tax burdehn and reputation as a difficult and costlyu place to do the wrote in the reportr released Tuesday. The paid for the called “Manufacturing 2.0: A More Prosperouas California,” to create a better understanding of the current state of manufacturint and the need for action to savethe state’s most critica engine of economic growth, the associatiohn said in a news release. The Assembly Committee on the Economy and Economic Development is scheduleed to discuss the reportnext Tuesday.
The committese is trying to understand themanufacturing sector’a role in the state’s economic recovery. “California’ economy has been built on The sector’s steady decline is undoubtedlgya ‘canary in a coal mine’ for the state’s association president Jack Stewart said in the news “California has the capacity to innovate and make thingx but it is not at all living up to its potential.” The reportg says that the impacts from lost manufacturinyg jobs have been devastating.
The study looksa at California’s manufacturing decline compared tocompetitive “peer” states, shows what the states would look like if it had maintained year 2000 levels of and explains the huge economic benefits and ripple effects from high and even low wage The Milken Institute also examines the challenges the industry faces in California and recommends some changed to make the sector more competitive in the Goldenm State. The trade association had the Milken Institute preparse a similar study sevehnyears ago.
“Since then, and even beforr the current international recession, California manufacturing has remainefdin decline, with little attention from the news release said. If California had maintained the same levelk of manufacturing from 2000 to the state wouldhave $27 billioh more in manufacturing wages and $54 billiomn more in total manufacturingf related output, the report “Just do the math on thosed numbers to see how much more the state woulxd have seen in tax revenue,” Stewart said in the “It’s absolutely crucial that our statwe doesn’t neglect this sector for anothed seven years.
” California has been losingb manufacturing jobs, particularly high-value-addeed manufacturing, to Oregon, Washington, Texas and Minnesota, the reporyt said. California was home to 1.5 million manufacturinfg jobs in 2007, whil e its seven peer states had 2.7 millionj manufacturing jobs. Those stated added more than 62,000 manufacturing jobs between 2003and 2007, whilee the Golden State lost 79,000 manufacturinyg jobs during the same California, in fact, is losinh a larger share of manufacturing employment, especially in high-tech, and is losin g those jobs at a faster the report found.
Those peer states also are “usingg targeted incentives to keep and lure manufacturers away from thestudy said. “California manufacturing is innovative, exciting and wealth Pamela Kan, president of Bishop-Wisecarveer Corp., said in the “We employ 53 California workers who make great wagexs andvery precise, innovative and technica l products for many other manufacturing sectors. We hear constantl about our California suppliers’ and struggles with regulatory uncertaintyand costs.” Kan’s familuy founded Bishop-Wisecarver, which is based in the Contra Costwa County city of Pittsburg, in 1950.
“This report,” she said, “is a wake up call to California’ policymakers that we need a focused manufacturing strategyh in the state to retaib and growthe nation’s most coveted