California Manufacturing Jobs Down Despite Slow Growth in Other Sectors; CMTC Urges Sacramento to Pursue Pro Manufacturing Legislation.

GARDENA, Calif. -- The California Employment Development Department (EDD) released its most recent unemployment data yesterday with mixed reviews from the California Manufacturing Technology Consulting (CMTC) President and CEO, David Braunstein. The numbers indicate a modest decline in the unemployment rolls in California with an increase of 3,100 jobs in August, dropping the unemployment rate to 5.8%.

However, manufacturing was one of five industry categories that reported job declines in August, with 3,400 jobs lost. Although it was the first job loss manufacturing had reported since March, 2004, the loss reflects the alarming trend of California manufacturing - 348,400 jobs lost since December, 2000.

"The EDD's latest report on unemployment in the state is a mixed bag. The economy continues to recover, albeit slowly, which is good news for all of us," said Braunstein. "Yet, despite the optimism that the report produced in some sectors, the picture was not as pretty for the manufacturers of our state. The cost of doing business in California continues to be too high, especially for smaller manufacturers. It is something that Sacramento must continue to address, if California is to retain a segment that produces 14% of the state's gross product and employs 13% of the state's private sector employees."

Braunstein continued, "I applaud the work that the Governor and the Legislature have accomplished thus far to make California more business friendly. Reforming Workers Compensation, for example, will greatly reduce costs and eventually save jobs. But, more can be done. California could be leading in manufacturing with a continued focus on and ambition for a business friendly agenda in Sacramento. Increasing the funding of the Manufacturing Technology Partnership would be another strong step to improve the fortunes of small manufacturers in California."

CMTC operates in part with funding from the California Manufacturing Technology Partnership (MTP). Through MTP, CMTC provides small and medium-sized manufacturers with access to a wide range of high-quality business assistance including technical consultative services, work force training, and professional development - making these companies more competitive in a global marketplace. With these funds, CMTC was able to help create 3,324 manufacturing jobs and 8,300 support jobs in 2004.

ABOUT CALIFORNIA MANUFACTURING TECHNOLOGY CONSULTING

A private, nonprofit corporation, CMTC was established in 1992 to provide high value consulting services to California's high tech and traditional small and medium-size manufacturers to increase their competitive advantage through improved methods of management and manufacturing. Today, through its seven regional teams, CMTC provides consulting services in the practice areas of Strategic Business, Lean Enterprise, Information Technology, Energy Services, Quality and Supply Chain Management. CMTC's regional teams cover Los Angeles, the Inland Empire, Orange County, Ventura/Santa Barbara County, the San Fernando/San Gabriel Valley, the San Joaquin Valley and San Diego/Imperial County. For more information, visit www.cmtc.com.