Today’s LA Times has a story on study being released today that places blame for the loss of almost 80,000 California-based manufacturing jobs on our regulatory and tax structure. Recently, a group of us joined Assemblyman Dan Logue on a fact-finding trip to Nevada. We had a hearing with companies that have left California and heard stories firsthand just like the ones you can read about in this column. With rising unemployment, the state should be taking action to help create jobs…
Losses of factory jobs in California blamed on regulation
By Alana Semuels
June 23, 2009
The El Monte factory stopped operating just a few weeks ago, but already it feels abandoned, an appropriate setting for a "Terminator" movie.
The dusty clock on the wall is frozen at 7:00. Below it, the deep pits that once held molten steel are now empty, and the parts created there wait in hundreds of boxes to be shipped off across the country or turned into scrap.
Two months ago, more than 300 people were employed at the site making engine parts for trucks and heavy machinery for Gregg Industries, which is owned by Neenah Enterprises Inc. in Wisconsin.
But a settlement with the South Coast Air Quality Management District required Gregg to spend $5 million on factory improvements, so the company decided instead to leave the state. Company spokesman Adan Ortega Jr. said Gregg didn’t want to make the payment in the difficult economic climate.
Gregg is part of the parade of companies marching out of California. The state lost 79,000 manufacturing jobs between 2003 and 2007, while seven other states with a meaningful percentage of U.S. manufacturing gained 62,000, according to a report scheduled to be released today by the Milken Institute.
The report blames the state’s onerous regulations and high taxes in particular for pushing businesses elsewhere.
"The picture is not pretty," said Perry Wong, senior managing economist at the Milken Institute, which received funding from the California Manufacturing and Technology Assn. for the study.
The state is shedding manufacturing jobs at a faster pace than the nation as a whole, the report said. Though many jobs left the country in the 2002 recession, states such as Arizona, Nevada and Oregon saw an increase in manufacturing employment in 2003.
Part of the problem, Wong said, is that regulations change so often in California that it’s difficult for companies to plan. The state enacted an average of 15 changes in labor law each year from 1992 to 2002, four times more than state legislatures averaged nationwide.
June 23rd, 2009 at 12:00 am
Flash Report needs articles like this on a regular basis…most Californians have no idea milk comes from a cow not Safeway…the same about manufacturing job creation.
Until liberals are labeled in the minds of citizens as the destroyer of jobs you will see chubby teachers selling this EARTH DAY pap to kids and young adults holding their grades as hostage to the moon gods and earth fairies.
Not to dwell on ancient history, but my recollection of the 1960’s…all was possible for there were tons more producers working manufacturing jobs….today….get out your ball cap and apron and waddle down to Taco Bell,Staples or the Oakland Stadium to your CAREER JOB!!!!