From the Advocate

By Tara Lynn Gray 

October 2024

The Golden State of Manufacturing and Innovation

As the Director of the California Office of the Small Business Advocate (CalOSBA), I am thrilled to celebrate October as Manufacturing Month and shine a spotlight on the incredible and enterprising spirit that has made California a global leader in manufacturing and the number one state in the country for manufacturing. (I hope you can hear me chanting “We’re Number 1, We’re Number 1” in the direction of Texas!) California is a state synonymous with creativity and innovation and where manufacturers are committed to environmental sustainability, embracing cutting-edge technology, and proud of the quality craftsmanship that resonates in every product they make here.

California’s manufacturers are visionaries – literally changing the world and the way we live our daily lives. Just look at the phone in your hand as proof of this very fact! There are an estimated 35,000 manufacturers employing an incredible 1.25 million Californians. Think about it, if every manufacturer hired just 3 employees, we could add over 100,000 jobs across the state. As the world’s fifth largest economy, larger than 21 states combined and the countries of India and Great Britain, California’s economy stands as one of the largest and most dynamic in the world. Our manufacturers – from high-tech electronics and aerospace to sustainable food production and fashion are among the most diverse and adaptable on the planet. They are also key drivers of job creation, economic input and community development, creating 12% of the state’s economic output.

Supporting Our Innovators – to Achieve a California for All
Governor Newsom has made it a priority to bolster the manufacturing sector through strategic investments and policies designed to enhance competitiveness. His vision of A California for All, strives for a prosperous and inclusive economy – one that empowers manufacturers including small, diverse and women-owned. In recent months, Governor Gavin Newsom awarded $120 million in tax credits to eight innovative companies projected to generate more than 2,100 full-time jobs with an average annual salary of over $100,000 and estimated to bring in $15.5 billion in private investment over the next five years. At that time, Governor Newsom affirmed his steadfast commitment to California manufacturing by stating, “This funding will help businesses create good-paying jobs — from steel manufacturing in Kern County to sustainable lithium production in Imperial Valley — and support the state’s economic dominance for years to come.”

Supporting Our Innovators & Entrepreneurs – Through Funding and Business Advice
My office, the California Office of the Small Business Advocate or CalOSBA, echoes this commitment to our manufacturers and amplifies their voices in policy discussions. Our programs focus on: democratizing access to capital; diversifying the innovation economy; driving economic mobility through entrepreneurship; promoting workforce development programs, and providing an environment where manufacturers can thrive, innovate, and scale. Our statewide network of small business development centers offer free or low-cost business advice to small manufacturers and ensure they have the tools they need to overcome the challenges they face. We like to say our centers are a “one-stop shop” for navigating regulatory requirements, upskilling financial and marketing know-how, and gaining a better understanding of how to access capital.

Readying the Launch for the Made in California Labeling and Marketing Program
I am especially excited that October as Manufacturing Month coincides with our very soon-to-be launched Made in California Labeling and Marketing Program. A collaborative effort between the Governor’s Office of Business and Economic Development (Go-Biz), CalOSBA and California Manufacturing Technology Consulting (CMTC), the Made in California program will increase and promote the awareness and visibility of California’s manufacturing businesses of all sizes. The program will also house a database of its member manufacturers making it easy for other manufacturers and consumers to source and purchase products made in state. To stay updated and receive more information about the Made in California Labeling and Marketing Program, please subscribe here.

Let’s Keep California Number 1!
Please join me in recognizing our state’s manufacturers by purchasing and promoting California-made products not only this month but as part of your regular procurement and buying. Together we can champion individual achievements but also their collective contributions to our economy, workforce and let’s face it – the envy of the rest of the country and across the globe – for the innovative spirit that has long-defined California manufacturers.