Against the Tide of Departures,
Some Companies Arrive

While net job creation was a negative number between 1999 and 2003 (with 363 manufacturers leaving the state), 261 manufacturers came into the state during that time. Oddly enough, the county hit the hardest by job loss between 1999 and 2002 – Los Angeles Co., with 156,024 jobs lost – is the county leading the state in creation of new manufacturing establishments during that same period, with a net positive change of well over 2,000 businesses. In a March 2004 release, the Los Angeles County Economic Development Corporation (LAEDC) said business creation and job creation were indeed holding their own.
        "Despite caution on the part of business in investing in facilities, and further uncertainty caused by California's rather hostile business environment, the expansion news for 2003 for Southern California was not bad," read the report.
        "There were 315 major expansions during the year, down by only 4.3 percent or by 14 projects from 2002," said Vice President and Chief Economist Jack Kyser. "On a positive note, the square footage of these projects increased by 31.3 percent over the year to 40.2 million square feet [3.7 million sq. m.]."
        By industry sector, the largest number of expansions in 2003 was recorded by logistics/warehousing, with 30, the same number as in 2002. Second ranked during 2003 were professional business services, with 25 major expansions. Third in 2003 was finance with 23, up from 17 major expansions in 2002. And Kyser noted with optimism the evidence of a video game publishing cluster in the region.
        Reason for optimism also was evident in the March 2004 forecasts from economists at the UCLA Anderson School of Management. In a report titled, "The Los Angeles Report: Doctor, We Have a Pulse," Senior Economist Christopher Thornberg forecast 1.2-percent payroll job growth in Los Angeles Co. in 2004, with Orange County slightly higher, while San Bernardino and Riverside Counties remain the primary areas of growth in Southern California.
        One recent internal move came from City of Industry-based Amptron International, a designer and maker of computer motherboards, monitors, notebooks and computer systems founded there in 1986. The firm just relocated into a 110,000-sq.-ft. (10,219-sq.-m.) complex that will help it better manage its diversifying product base. Leon Hsiao, company president, says the company never considered relocating outside of the city, because of what he called "one of the most pro-business environments in California."
        Anderson School senior economist Joseph Hurd said some evidence of a statewide comeback is evident, but it must still overcome its budget problems, and the looming cut of some 25,000 public sector jobs over the next 15 months. Biotech, education, health services and finance are still growing, but IT remains weak, and manufacturing growth is not expected to return for at least another year.