MANUFACTURING IN CALIFORNIA
The Milken Institute is a famous California "think-tank." A think tank is a non-profit professional research organization. The Milken Institute describes itself as a "think tank where scholars of diverse backgrounds work together to find solutions to current economic and social problems.
This Institute just completed a study about the manufacturing industry in California. The study came up with some interesting information Here are some of the findings.
1. California is the major manufacturing center in America. There are more manufacturers in California than any other state.
2. Almost 13 percent of California workers are employed with manufacturers. Almost 14 percent of California's economy is from these manufacturers.
3. 40 percent of the manufacturing in California is high-technology manufacturing, such as computers, electronic equipment and communications equipment.
4. The current recession in California has caused a loss of jobs in manufacturing. 129,300 jobs were lost during the last 13 months. 1,822,300 workers are employed in manufacturing.
5. California is an expensive place to manufacture. The cost of doing business in California is 32 percent higher than the average cost of other states. On average, it is even more expensive than New York state.
The last point is very important. Because of the high cost of doing business in California, many companies are choosing to locate their companies in other states. The current state government in California has increased taxes and business expenses on manufacturers.
If the government continues to overburden manufacturers, more jobs will be lost in California. It will be interesting to see if the government takes steps to reduce this burden.
