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Sacramento region report paints local “advanced manufacturing” picture

Posted by Gino DiCaro, VP, Communications on March 4, 2016

All manufacturing in California is in fact “advanced” because of the tremendous pressure to be efficient to remain competitive. But many regions are analyzing their “advanced manufacturing” sectors so they can make policies to grow high wage manufacturing jobs and ensure that there is a proper pipeline of workers with the skills that manufacturers need to fill technical positions.

Here in Sacramento, Valley Vision, a regional civic group, released an intriguing report --  Advanced Manufacturing Cluster: Workforce needs assessment -- that will inform a local workforce plan in May of 2016.

According to Valley Vision’s study, conducted with JP Morgan Chase, Los Rios Center of Excellence and the Burris Service Group, the six-county Sacramento Capital region employs more than 42,000 people in the “advanced manufacturing” sector directly and indirectly, contributing more than $12.4 billion in economic output.

The report defines its “advanced manufacturing” cluster this way:

“Advanced manufacturing is a process that integrates the coordinated use of information, automation, software, sensing and networking to improve the efficiency and reduce costs of manufacturing.  Although advanced manufacturing methods may be utilized by any manufacturing industry, high use of these methods tends to cluster in the following six manufacturing subsectors: Aerospace, Chemical, Computers/Electronics, Machinery, Plastic, Transportation.”

 

The findings show the “advanced manufacturing” cluster had more than 16,000 direct jobs in 2014, representing 42 percent of all manufacturing in the region. With several subsectors, the cluster’s competitive advantage lies within the transportation and machinery subsectors. The region shed nearly 1,800 jobs during the peak of the recession, but started rebounding in 2010. By 2019, the cluster is projected to add as many as 755 new jobs overall, but an examination of total job openings (new and replacement jobs including due to retirements) shows advanced manufacturing is projected to add more than 2,500 jobs across 15 high-demand occupations.

We look forward to seeing more reports like these in all regions in California. They show manufacturing’s tremendous direct and indirect economic benefits for any region, and they highlight the technical skills that drive the industry's success. Most importantly they show us that we need to ensure a proper pipeline of technical workers, and instructors, so manufacturing companies will see California as a safe place to make long-term investments and grow in the Golden State.





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