Prioritizing Productivity:
Manufacturing’s Quiet Power In California
Exploring the sector’s evolving response to economic and technological change
Manufacturing Remains A Vital Industry in California
Although manufacturing now accounts for a smaller share of jobs in California, it continues to play an outsized role in the state’s economy and in national policy discussions. The industry is especially important for workers without college degrees, who can take advantage of better pay, hours, and benefits than are available in many other sectors. This Beacon Economics report explores how California’s manufacturing industry continues to matter despite decades of job declines, and how the sector is evolving in response to economic, technological, and policy shifts.
Despite employment losses, the report highlights the industry’s steady output levels, a result of high productivity and a shift toward capital- and tech-intensive production, particularly in durable goods such as electronic computer manufacturing. While public support for “bringing back manufacturing” often reflects sentiment more than job interest, the sector continues to provide critical economic benefits, including full-time employment for non-college workers, support for related industries, and export growth.
Key Highlights
Middle-Class Job Creation
Manufacturing remains a vital source of stable, well-paying jobs for non-college-educated workers in California.
Healthy Output
Rising productivity, automation, and a shift toward capital- and tech-intensive industries has kept the state’s manufacturing output steady despite job losses.
Public Support
Revitalizing U.S. manufacturing is popular with the American public, reflecting the sector’s economic and symbolic value.
Expert Insights
Niree Kodaverdian
“If California continues leading in tech adoption, it’s manufacturing industry could stay ahead of the curve. But the future won’t be about going back to traditional factory jobs, it’ll be about it’ll be about embracing innovation and the new kinds of work it creates.”
~ Niree Kodaverdian PhD, Research Manager, Beacon Economics
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