California ranked #1 in United States for manufacturing output

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California’s prominence as a global hub for manufacturing is often underestimated. Yet, with seven well-defined geographic clusters specializing in all areas of manufacturing output, keeping a watchful eye on the golden state may offer some insight as to where the industry is headed next. What you find in this report may surprise you.


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In San Diego, Military, Defense, and Biotechnology are the major sectors of manufacturing in San Diego. Supplies for defense contractors and local naval bases have historically been most important, though the biotechnology and medical device manufacturing is growing in importance.

San Diego’s economy continued its steady recovery, which has contributed to the growth in the industrial market. This demand was driven mostly by warehouse and distribution space, which accounted for over 60 percent of the absorption this year. Industrial rents have begun to see more substantial increases. Moving in to the New Year, the supply-constrained conditions and continued demand for space will contribute to additional rent growth with rents starting to approach pre-recession highs. Biotechnology and life sciences firms will continue to expand and drive demand for space. The on-going growth in manufacturing and construction will also contribute to demand.

Post this: With the emergence of pro-manufacturing legislation, California is positioned again for vast economic opportunities. Read JLL’s latest industrial white paper on the future of manufacturing. Share on LinkedIn

Click to Tweet: #California is a hub of #manufacturing excellence. Read #JLL’s latest industrial white paper white paper on its future.


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