DATE: July 8, 2003
TO: Board of Supervisors
SUBJECT: Preserving San Diego’s Manufacturing Industry

Summary:
This item would direct the Chief Administrative Officer to review the recommendations provided by the community at the May 14, 2003 County of San Diego Manufacturing Summit. The action would identify and forward those items pertaining to the State of California to San Diego’s State legislative delegation and to the County’s Sacramento advocates. In addition, the action would also direct the Chief Administrative Officer to review the suggestions pertaining to improving services at the County and return to the Board of Supervisors with recommendations in an effort to preserve San Diego’s manufacturing industry.

Recommendation:
VICE CHAIRWOMAN JACOB

1. Direct the Chief Administrative Officer to review the recommendations provided at the May 14, 2003 County of San Diego Manufacturing Summit within 30 days.
2. Direct the Chief Administrative Officer to identify and forward those items pertaining to the State of California to San Diego’s State legislative delegation and to the County’s Sacramento advocates.
3. Direct the Chief Administrative Officer to review the suggestions pertaining to improving services at the County and return to the Board of Supervisors with recommendations within 60 days.

Background:
Over the last two years, manufacturing in San Diego and throughout the State of California has been on the decline. More than 11,000 manufacturing jobs have been lost in San Diego over the last two years.

Approximately 280,000 manufacturing jobs have been lost statewide over this same period. Manufacturing businesses face daunting workers compensation costs, multiple layers of environmental regulation, including the new storm water regulations, increasingly unstable energy costs and rising taxes. If left to continue, we are at risk of becoming a “barbell economy” in which there are an abundance of low-wage jobs and high-paying jobs, but few opportunities for the backbone of our economy, the middle class.

To stop this trend, the County Board of Supervisors, at my request, approved hosting a Manufacturing Summit to provide manufacturers with a forum to tell their stories and to make recommendations for improving the business climate. Representatives from the technology and bio-pharmaceuticals sectors, aviation, mechanical, and heavy and light industrial as well as many individual speakers each addressed a growing list of issues that plague our economy.

Approval of this item would direct the Chief Administrative Officer to review the recommendations provided by the community at the May 14, 2003 County of San Diego Manufacturing Summit. The action would identify and forward those items pertaining to the State of California to San Diego’s State legislative delegation and to the County’s Sacramento advocates. In addition, the action would also direct the Chief Administrative Officer to review the suggestions pertaining to improving services at the County and return to the Board of Supervisors with recommendations in an effort to preserve San Diego’s manufacturing industry.

By reviewing these suggestions and forwarding the recommendations, the County can play an active role in improving the business climate allowing manufacturers to maintain and expand their operations. I, therefore, urge you to approve this item to help preserve San Diego’s vital manufacturing industry.

Sincerely,

DIANNE JACOB
Supervisor, Second District