When Governor Gavin Newsom proclaimed on social media platform X last Monday that “California is the manufacturing capital of America, period,” it was a bold statement designed to catch attention. However, it seems more like a crafted soundbite meant to fill a slow news day, full of bravado but lacking in substance.

The issue for Newsom and his fellow California Democrats who echo these sentiments is the gap between their rhetoric and the actual situation. They frequently lean on buzzwords like “innovation” and “jobs” to bolster their claims. Yet, in reality, the state’s industrial sector is showing signs of decay.

For years, policies have made it increasingly challenging to build, hire, or expand businesses in California. Now, there seems to be a call for recognition and praise for an economy that has been weakened by those very policies. In truth, California is not leading in manufacturing; instead, it excels in regulatory hurdles, bureaucratic complexity, and self-promotion.

California’s Manufacturing Reality Falls Short

Indeed, California is a large state with substantial numbers. Its manufacturing sector generated nearly $400 billion in annual output and supported approximately 1.2 million jobs by 2024. While these figures might appear impressive at first glance, mere size does not equate to leadership or dominance in the sector.

We create more jobs, produce more goods, and drive more innovation than anywhere else in the country — because what gets built in California shapes the future and powers the U.S. economy.

— Governor Gavin Newsom (@CAgovernor) October 6, 2025

California’s Numbers Don’t Back the Brag

Yes, California is big. The state’s manufacturing sector generated nearly $400 billion in annual output and supported around 1.2 million jobs in 2024. Those raw numbers look impressive on a press release, but size alone does not equal leadership.

If the standard is who produces the most per capita, who’s growing fastest, and who’s attracting new factory investment, California doesn’t even crack the top ten.

According to a recent U.S. Census Bureau report, states like Louisiana, Indiana, Iowa, and Nebraska rank among the strongest in manufacturing shipments per capita. These smaller, more efficient states are producing more manufacturing value per person, meaning they’re actually building more, faster, and more efficiently than California.

That’s what competitiveness looks like. And it’s something Newsom and his party refuse to discuss because it exposes the decades-long myth: California can strangle its industrial base and still claim national leadership.

This week, we’re highlighting #manufacturing data ahead of #MFGDay on Oct. 3.

Check out our new #DataViz for a novel spin on states’ value of manufacturing shipments that analyzes data per capita.

Get started on #AmericaCounts.https://t.co/aTwGE9r7CR#MFGDay25 pic.twitter.com/t9kRQfVWZU

— U.S. Census Bureau (@uscensusbureau) September 29, 2025

California’s Manufacturing Boom Is History

California’s manufacturing strength today is a product of yesterday’s investments. The state’s industrial giants – aerospace, defense, and hi-tech – were built in the postwar decades when the business climate still encouraged risk and expansion.

But that era is long gone.

The Bay Area Council Economic Institute’s 2016 report Reinventing Manufacturing put it bluntly: