Quality Magazine

California Manufacturers Report $365M in Sales, 2,492 Jobs Retained

April 26, 2010

TORRANCE, CA-Southern California manufacturers receiving consulting services from California Manufacturing Technology Consulting (CMTC), a nonprofit corporation, reported an overall $72M in increased sales and $293M in retained sales. The results, released by an independent third party, were obtained from 612 small to medium sized manufacturers who reported impacts to their business in 2009.

The 2009 report also showed that increased sales supported job growth and retention. Of the 612 manufacturers surveyed, 183 showed sales increases with 112 of those manufacturers able to retain employee jobs. Overall, the manufacturers surveyed reported retaining 2,492 jobs and adding an additional 529 jobs for a total exceeding 3,000. Taking the manufacturing job multiplier effect into account (each manufacturing job creates approximately five additional jobs), a total of approximately 15,100 jobs were saved.

For example, one company in Poway, Cohu Inc., an organization supplying semiconductor equipment, microwave communications and television cameras, was able to “reduce costs, increase productivity and add three new employees,” according to Karin Riggs, senior business partner and training manager. This is just one example of a California company taking advantage of improvements and increasing sales and jobs.

“These results demonstrate that even during difficult economic times, Southern California manufacturers benefit by embracing new production and management strategies to improve their bottom line,” says David Braunstein, president and CEO of CMTC. “These manufacturers have made a commitment to become more competitive, remain in California and provide high-paying manufacturing jobs,” adds Braunstein.

The impact data was compiled by Turner Marketing for the National Institute of Standards and Technology’s (NIST) Hollings Manufacturing Extension Partnership (MEP).