June 29, 2018
According to the Industry Week and the National Association of Manufacturers, manufacturing is on fire! Manufacturers optimism registered 95.1% – the highest level EVER recorded! Manufacturers are projecting historic growth in investments (4.1%), hiring (3.1%) and wages (2.7%). Projected wage growth is the fastest in 17 years. The bottom line – manufacturing is on fire!
Now to turn general perceptions on its head, Industry Week did a study of the top states for manufacturing jobs, and California was #1 – and, clearly, this was accomplished in a state that doesn’t favor manufacturing jobs even though they pay well. Manufacturing accounts for 11% of the total output of the state, and the state is larger than all but 5 countries if it was a country. Why aren’t we singing this from the rooftops?!? Are you thinking of ways to leverage this advantage?
What Should We Consider and/or What Impacts Could Arise?
It is our passion that not only is Southern CA #1 in terms of manufacturing but it is “THE place to be”! You probably wonder if I had too many Mai Tai’s in Hawaii but there is a compelling story behind this passion:
- Customers and consumers: Southern California is the epicenter of manufacturing and can supply consumers and customers of what would be the 5th largest country in the world same-day
- Mass customization – the ability to meet changing customer expectations rapidly and customized on the fly
- More than 40% of imports come in through the Los Angeles ports – many of these are raw materials and components to supply manufacturers
- Access to a significant talent pool in Southern California
- Access to high tech, automation, robotics and more
- Access to logistics networks
- Additive manufacturing changes the game
- Innovation is prevalent – just to overcome the environmental standards, we have to be better! Imagine if we can get some help with our laws….
- With wages increasing in Asia, freight costs going up and customers demanding immediate deliveries and frequent changes, manufacturers are seriously considering bringing non-commodity manufacturing back to the U.S. Why not Southern CA?
Think about how to leverage this massive opportunity and blaze a trail. If you’d like to strategize with us about how to achieve scalable, profitable growth and maximize your manufacturing power, contact us.