REPORT: L.A. STILL HAS THE GOODS CITY TOPS NATION IN MANUFACTURING.

Byline: GREGORY J. WILCOX

Staff Writer

Southern California lost more manufacturing jobs last year, but the Los Angeles metro area remained the nation's top manufacturing center, according to a report that will be released today.

The Los Angeles County Economic Development Corp. report also found that the six Southern California counties ranked third in terms of overall industrial employment.

Between 2001 and early 2006, the San Fernando Valley lost 21,119 manufacturing jobs, employment in the South Bay held steady at 86,107, the San Gabriel Valley lost 23,219 positions and Long Beach lost 600 jobs.

Modest gains did come in north Los Angeles County with the Antelope Valley adding 198 manufacturing jobs and the Santa Clarita Valley getting an additional 169.

For all of Los Angeles County last year, manufacturing slipped 0.7 percent, or 9,400 factory jobs. Manufacturing averaged 911,000 jobs last year and remained the biggest employment sector in the county.

Manufacturing employment has been declining since 1990, with two modest blips up in 1997 and 1998, said Jack Kyser, the LAEDC's vice president and chief economist. The sector is expected to have a mixed outlook through 2009, the report said.

"It's not a growth sector," Kyser said of manufacturing. "But there are certain sectors in it that are growing."

Biomedicine is making gains in Ventura County and a variety of industries are going to the Inland Empire because of low lease rates and space.

Space in the rest of the county is tight.

"While the manufacturing employment news for Southern California has been generally downbeat, the industrial vacancy rates for the region have been stunningly good," said Kyser.

Los Angeles County had the nation's lowest vacancy rate, 1.5 percent, at the end of last year. The vacancy rate in the San Fernando Valley ended last year at 1.8 percent, it was 1.9 percent in the South Bay, 1.2 percent in the San Gabriel Valley and 0.9 percent in Central Los Angeles.

"What you are seeing is that firms are investing in plants and equipment. Output is increasing but the employment numbers are decreasing," he said.

The report also found that:

Manufacturing in Southern California tends to be small to medium-size firms often in high-tech type of activities.

The sector has a higher job "multiplier," meaning that more indirect jobs in other industries are supported by every direct position in manufacturing.

Local manufacturing firms are under heavy competitive pressure, often from off-shore production. Many are being wooed by other states, which point out the high cost of doing business in California.

greg.wilcox(at)dailynews.com

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