In a recent study conducted by equipment supplier ABM, San Jose has emerged as a leader in the U.S. manufacturing sector, boasting the highest concentration of manufacturing jobs in its workforce. The study evaluated cities based on various metrics, including total manufacturing employment, annual wages, the percentage of manufacturing jobs within the overall workforce, and employment growth rates, employing data from the U.S. Census Bureau and the U.S. Bureau of Labor Statistics. San Jose achieved a perfect score of 100 on the study's 100-point scoring system, outpacing notable cities such as Tulsa, Oklahoma (93.61), Los Angeles (93.19), Houston, Texas (91.7), and Indianapolis, Indiana (89.1).
According to local sources, San Jose is home to approximately 77,000 manufacturing jobs, which constitutes 18% of the city's total workforce. Employees within the sector earn an average annual wage of $79,300. The manufacturing landscape in Silicon Valley is primarily characterised by sectors including electronics, renewable energy, machining, and advanced high-tech manufacturing.
“San Jose is a leader in prototyping and advanced manufacturing, from aviation to semiconductors, thanks to our talented residents, one-fifth of whom have a STEM degree,” said San Jose Mayor Matt Mahan in a statement to San José Spotlight. He emphasised the significance of San Jose in the modern manufacturing context, noting that its role will likely expand as global competition and security considerations drive increased re-shoring and domestic investment.
Matthew Kenny, programme manager for Manufacture: San Jose, highlighted the critical role local manufacturing plays in the economy. “Their ability to rapidly prototype locally is critical, and the industry is very much interconnected from advanced manufacturing down to mom and pop machine shops,” Kenny stated. He elaborated on the benefits of manufacturing jobs, emphasising their role in fostering a healthy middle class and providing career opportunities for local youth, particularly those facing barriers to higher education.
Despite the positive outlook for job creation, concerns about fair treatment for workers persist. Ruth Silver Taube, supervising attorney of the Workers’ Rights Clinic and a columnist for San José Spotlight, voiced apprehension over wage fairness and working conditions. Recent legal actions have highlighted issues, such as a class action lawsuit filed by two former Tesla employees alleging the company failed to provide owed overtime and meal breaks. “It’s good that there are jobs. We want to see jobs come here, but we want the jobs to be high road jobs where they pay the workers properly,” Silver Taube remarked.
Interestingly, Russell Hancock, president and CEO of Joint Venture Silicon Valley, expressed surprise regarding the high concentration of manufacturing jobs in San Jose, noting that the prevailing trend in Silicon Valley has historically been to relocate manufacturing operations to lower-cost regions. “We’ve always prided ourselves on being a place where we do the thinking, the research, the design, but not necessarily the manufacturing,” Hancock explained.
At the federal level, there is a push to reinvigorate the national manufacturing sector. San Jose’s Congressman, Ro Khanna, co-authored the 2022 CHIPS Act, a significant piece of legislation allocating $52 billion to strengthen semiconductor manufacturing across the country.
To support the dissemination of manufacturing as a viable career pathway, San Jose regularly hosts Manufacturing Week, inviting youth to experience local manufacturing facilities firsthand. Hancock remarked on the necessity of maintaining domestic manufacturing capabilities in light of global uncertainties, stating, “In a world that is now highly unpredictable with political tensions and market tensions, you become vulnerable to tariffs, to trade wars, to boycotts. So that’s why it probably makes sense to make sure that there’s capabilities at home. Your portfolio needs to be diverse.”
Source: Noah Wire Services