Manufacturing Summit Highlights Industry’s Critical Role

Organized and led by the East Bay Economic Development Alliance (East Bay EDA), the first East Bay Manufacturing Summit will be held on Tuesday, October 29 in Fremont. The event brings together East Bay manufacturers, community and education leaders, and industry partners to support a more dynamic, resilient, and inclusive manufacturing ecosystem and regional economy, according to officials. The summit will spotlight key issues that affect companies in the sector, and allow attendees to explore how regional stakeholders can enhance and contribute to the resiliency of the region’s manufacturing ecosystem, according to Executive Director Stephen Baiter.

Carline Au, Head of Planning and Strategy for the organization, notes that the diverse audience for the summit will help build important connections among those involved in or affected by manufacturing. They include educators, manufacturers, civic leaders, and economic development professionals. “We have a broad range of stakeholders that have already signed up for the event,” she says. “We want to unite these different stakeholders for important conversations around the future of talent, how our region can strengthen and support the manufacturing and manufacturing ecosystem, and how we can support local reshoring efforts and our supply chains domestically.”

Manufacturing Crucial to Economy

California is the top state for manufacturing. Manufacturing output in California has grown faster than in Texas, the second-ranked state, over the last 20 years. Figures from the National Association of Manufacturers show that “California accounted for 12.3 percent of the total output and 7.5 percent of the workforce in the state’s manufacturing sector in 2021, with an output of nearly $395 billion,” according to the IndustrySelect Industrial Database. “California also leads the nation in exporting manufactured goods, with $134 billion worth of exports in 2020.”

Manufacturing is important for at least three reasons, according to Au. First, it plays a critical role in the East Bay economy. “The industry is a catalyst for job creation and economic diversity in the region,” she says. “Local manufacturing boosts employment, drives innovation, and creates a dynamic economy. With many roles not needing advanced degrees, it cuts unemployment and attrition. These jobs also provide higher wages and benefits, strengthening the middle class and stabilizing the economy. Many manufacturing employers and community colleges provide paid apprenticeships, on-the-job training, and vocational programs. The industry also offers career-ladder growth and occupational opportunities within companies or the sector.”

Mark Martin, who will be moderating a workforce panel at the summit, agrees. “Manufacturing is an important part of the East Bay and Bay Area economy, both in terms of gross domestic product and employment,” says Martin, the Regional Director for Advanced Manufacturing for Bay Area Community Colleges and Founder of Design4X, which focuses on manufacturing and engineering education and training. “There are lots of people out there who enjoy the type of work manufacturing offers, from engineers to skilled trades employees to entry level workers. It’s a different type of work than coding, health care, and teaching, for example. It is a good fit for people who like to work with their hands, troubleshoot, and develop innovative approaches to problems. We want to ensure that such work is a viable option for those who live here and want to pursue these types of careers.”

Second, manufacturing “is critical to advancing the innovation ecosystem here in the East Bay,” Au says. “Manufacturing drives innovation and enables new technology by supporting research and development in other sectors. Local manufacturing helps companies test and refine technologies before full scale implementation or commercialization. Because they have more control over the manufacturing process, it is easier for them to produce products that meet high standards and compliance requirements, as well as to compete internationally.”

While East Bay manufacturing is not concentrated in a single area, “we are seeing a large number of startups in the Bay Area working on clean technology,” notes Martin. “These companies are developing the technology and the manufacturing processes for clean tech and have needs for skilled trades employees.” Au says the third reason that the industry is important to the East Bay is that it supports supply chain resiliency. “With production facilities and suppliers closer to R and D, companies can test and implement new technologies more swiftly and decrease their dependence on international suppliers and mitigate risks associated with global disruptions. This means quicker response times and a more stable supply of critical goods. Federal and state governments are pushing hard to implement this approach across regions, especially in response to the Covid pandemic’s exposure of supply chain vulnerabilities.”

Growth Expected to Continue

There is a reason for the growth of manufacturing in California. “That growth is about the productivity and the high value of the manufacturing that happens here,” according to Baiter. Manufacturing is also growing in the East Bay. As Baiter notes, “the Bay Area is obviously not competing on low cost. It is competing on talent, productivity, and output. That is why it is important to shore up support for the sector, which represents about 30 percent of the region's gross regional product. It is a critical segment of the East Bay economy and that of the Bay Area as a whole.”

The upcoming East Bay Manufacturing Summit will provide a variety of ways to learn more about and help influence the direction of manufacturing trends in the region. Keynote speaker Andrew Switky from Stanford University's School of Engineering will address the evolving landscape of the new age of manufacturing. The event will also feature panel discussions highlighting microclimates of innovation, cutting-edge workforce models, and international trade and investment opportunities.

Resources for those in manufacturing and for manufacturing customers can be found at East Bay EDA’s Resilient East Bay website. Another expert source of information is the Association of Manufacturers Bay Area (AMBayArea), which supports manufacturers through events, thought leadership, and partnerships. “AMBayArea is led by a board of directors that includes executives from a variety of manufacturing industries, sub-regions, and support organizations who are dedicated to ensuring that the Bay Area remains a leader in the industry,” officials note.

The fourth annual AMBayArea Golf Benefit will be held on Friday, October 18, at Lake Chabot Golf Course in Oakland. Presented in partnership by the Association by AMBayArea and Bay Area Community Colleges, the event offers participants an afternoon of golf and networking while raising funds for students studying the skilled trades. Net proceeds from the event go toward the AMBayArea Skilled Trades Student Scholarship Fund, which supports students in the manufacturing skilled trades, including machining, electronics, welding, CAD, industrial maintenance, and more.

“The benefit is a great chance to get out to meet other manufacturers while having fun and raising money for skilled trade students,” says Martin.

The East Bay manufacturing sector saw nearly 10 percent growth, an increase of about 10,700 jobs, over the five-year period between 2019 and 2023, according to data from Lightcast. That growth is driven primarily by the automotive technology, biomedical, and semiconductor manufacturing subsectors, Au notes. “We saw a lot of growth in these subsectors in the last five years. At the federal level, there has been an enormous amount of funding to boost advanced manufacturing and supply chains. I am optimistic about its continued growth.”

For more information about the East Bay Economic Development Alliance, please visit www.eastbayeda.org.

For more information about the East Bay Manufacturing Summit, please visit www.eastbayeda.org/event/east-bay-manufacturing-summit.

For more information about Advanced Manufacturing for Bay Area Community Colleges, please visit www.bayareamanufacturingcareers.com/index.html.

For more information about Resilient East Bay, please visit www.resilienteastbay.org.

For more information about the Association of Manufacturers Bay Area, please visit www.ambayarea.org/home.

For more information about sponsoring or attending the fourth annual AMBayArea Golf Benefit, please visit www.ambayarea.org/event/ambayarea-golf-benefit-2024.

For more information about East Bay economic activity, including manufacturing, please visit www.eastbayeda.org/data-dashboard.

Photo by Eric Simundza

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