California may be most linked with the original Gold Rush. But it also experienced a “Second Gold Rush” nearly a century later, when the population and economy grew exponentially to fill the factories and farms that prepared the nation to prevail in World War II.
The state is on the cusp of another manufacturing boom – this one harnessing new technologies and production processes to build a stronger economic future that also ensures we don’t fall dangerously behind our potential adversaries.
But it won’t fully materialize without greater collective effort by private industry, government agencies, educational institutions and non-profits across the region. That means putting collaboration over competition.
Earlier this month, hundreds of companies and universities from aerospace, defense, automotive, medical and other industries convened in Anaheim at Manufacturing Technology Series West, organized by SME, a national nonprofit dedicated to accelerating the adoption of new manufacturing technologies and building the talent pipeline.
The event showcased the latest manufacturing tools, from new welding technologies and robots to automated production processes like 3D printers and artificial intelligence-driven design software. And attendees discussed the most innovative ways that can be leveraged to fill shortfalls in critical skills.
Big support for domestic manufacturing
We gathered against the backdrop of overwhelming bipartisan support at the federal and state level to reinvest in domestic manufacturing. The White House and majorities in both parties in Congress are supporting billions in new investments to rebuild our defense industrial base and shore up supply chains for the minerals and materials that underpin numerous industrial sectors.
In Washington, the Labor, Education and Commerce Departments are reviewing workforce programs with the goal of revolutionizing apprenticeship programs. That includes engaging with states to streamline and better integrate their own plans. And California is certainly among the most important states for the defense sector.
California is home to the largest manufacturing workforce in the nation with 1.3 million workers, according to state data. And manufacturing is at the heart of the state’s economic strategy.
The California State Economic Blueprint issued earlier this year calls for strengthening and accelerating strategic sectors where California has an established competitive position, significant employment, or high growth potential, such as aerospace and defense, AI and quantum computing. One key pillar of the plan is economic incentives like industrial development bonds to provide tax exempt funds to acquire, build or rehab manufacturing facilities and equipment.
At the same time, California’s Master Plan for Career Education aims to “reimagine the way our education and workforce systems work together to ensure learners can attain skills and qualifications for high-opportunity careers.”
We are stepping up our work in Southern California because we are confident it has the ingredients, if combined and coordinated properly, to play a major role in fueling the industrial renaissance the nation needs.
Aerospace, defense top sector
The economic blueprint identifies aerospace and defense as one of the state’s top “strategic sectors,” noting that “by leveraging its experienced workforce, existing infrastructure and public-private funding, California is poised to launch into the future of aircraft, space and satellite development and manufacturing.” Los Angeles County alone has 200,000 aerospace manufacturing jobs, while Orange County has 50,000 more in specialties such as electronics.
“Southern California aerospace engineering might be coming back to life,” Michael Gibson, cofounder of the tech startup venture fund 1517 Fund, recently wrote in “The Next Arsenal of Democracy” published by the Manhattan Institute.
He singled out the corridor south of LAX and centered around El Segundo. “Startup founders, top-tier investors and prospective employees have heard the call to pay homage to the glorious past, flocking to the Gundo, as they call it, in a new migration of hardware freaks,” he added. “The beacon signal is sweeping the horizon.”
A focus on building talent pool
For all these reasons, SME is seeking to plant more roots in the region, beginning with SME PRIME (Partnership Response in Manufacturing Education), our flagship initiative that works with private industry to create customized manufacturing and engineering programs in high schools. The program provides essential resources such as equipment, curriculum, teacher training, student scholarships and more.
SME PRIME operates in 118 schools across 25 states, benefiting 12,000 students, with 91% of seniors pursuing manufacturing careers after graduation. We have also expanded the pipeline to connect high schools and post-secondary education through community colleges and universities. And we want to partner with additional schools and other educational institutions in the region.
Southern California’s manufacturing sector has a planned path forward — accelerating the adoption of advanced technologies that modernize factories, improve productivity and sharpen global competitiveness. Manufacturers, suppliers, technology partners, educators, and trainers must also work together to pilot these tools, scale solutions that work, and ensure every factory has access to a growing pool of expertise.
During World War II, when America needed California’s brains and brawn to confront the threat from other great powers, schools, companies and national laboratories played an outsized role in sharpening America’s edge. Indeed, the legendary pioneers of American aviation – Lockheed, Northrop, Douglas – were born along the “Imperial Highway” that connected Los Angeles, Orange, San Diego, Riverside and Imperial Counties, and in one form or another are still alive and well today.
It’s time for the third California Gold Rush, not just in manufacturing output, but in the innovation necessary to benefit Californians and Americans for generations to come.
