Though people might find it surprising, manufacturing is a key part of the economy even in such unlikely places as Los Angeles.  And, thanks to manufacturing’s long arms, many local businesses depend on it.

While many Californians might be surprised to learn about manufacturing’s important role in the California economy, we know of one L.A. area resident who definitely “gets” this issue.  That would be Mr. John Ratzenberger, the host of AAM’s “Keep it Made in America” Town Hall meetings.

A story in today’s Los Angeles Times notes that southern California is home to many thriving manufacturing concerns and, in fact, the 808,000 factory workers it employs comprise 11% of the region’s workforce. 

The story focused on a manufacturer of spas and hot tubs that employs 600 people—which happens to qualify the company as a “large manufacturer.”  So, while people may think of Hollywood when they picture L.A., the sprawling metropolitan area moonlights as a thriving industrial region.

It’s important to remember that manufacturing has been, and continues to be, a key employer throughout the United States.  Manufacturing jobs consistently pay well, offering higher wages than service industry work.  A recent study in Oregon noted that the average manufacturing job pays roughly $50,000—$10,000 more than the overall average for all industries.

Manufacturing consistently boosts local economies, too, with what is called a multiplier effect—the spillover of wages and taxes paid into surrounding businesses.  It’s estimated that every 100 manufacturing jobs create between 400 and 500 jobs in the rest of the economy.

And so, the aforementioned 600-employee hot tub factory outside of Los Angeles is helping to employ somewhere between 2,400 and 3,000 other Los Angeles residents.

No other sector of the economy has proven to be such a remarkable driver of employment growth—all the more reason why the U.S. needs to retain a strong manufacturing base in the 21st Century.

PS: the word on our upcoming Town Hall meeting in Columbus, OH is already spreading throughout the state.

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This entry was posted on Thursday, October 25th, 2007 at 9:30 pm and is filed under Manufacturing in the U.S.. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.