Orange County manufacturers look to 2012 anticipating opportunity and challenges.
Companies here make a variety of products, including medical devices, aerospace products and computer parts. Total employment in manufacturing is expected to inch up about 1% next year to 151,539 jobs, according to a recent forecast from Chapman University in Orange.
The job gains are expected to be spread across three manufacturing segments: durable goods, non-durable goods and high technology. But business prospects for high-tech manufacturers appear the rosiest.
“Demand from different applications range from telecommunications, cloud computing, cable and video-in-demand,” said Sanjeev Jaiswal, chief executive of Irvine-based iFiber Optix Inc. “Even consumer products like smartphones and tablets are going to be a big driving demand for streaming and high-definition television.”
IFiber makes fiber-optic cable assemblies, panels and adapters, and other multi-fiber products.
“Energy has also been a big driver,” Jaiswal said. “All the energy companies like Southern California Edison and Pacific Gas and Electric—they’re doing a lot of digital meters. Ten million subscribers need to be switched to digital meters. That’ll continue the demand for fiber optics.”
Al Lambert, owner of Costa Mesa-based Precision Optical, said he expects the commercial side of manufacturing to improve.
“Technology will be experiencing more growth than durable goods, because you have all the little gadgets, like iPhones and iPads,” Lambert said. “The problem is that anything related to the defense side will be flat at best. The commercial arena is going to start to turn around, and it’ll not only help optics, but other areas, too.”
Demand doesn’t appear to be quite as big for other manufacturers.
The clogged housing market remains a primary challenge for Fluidmaster Inc., which makes toilet parts, water supply connectors and panel products.
Fluidmaster products also are used by toilet manufacturers and plumbing professionals.
“Aftermarket demand for our products should remain fairly strong,” said Todd Talbot, president of the San Juan Capistrano-based company.
PERSON TO WATCH: RON SIMON
Ron Simon sees a big opportunity for custom home infill development in and around Orange County.
Simon, who has made a fortune building cabinets through his Newport Beach-based RSI Holding Corp., has branched out into homebuilding, putting up affordably priced homes in the Inland Empire and a few local locations.
The New House by RSI has built about 130 homes since starting in 2009, and had one of the better-selling developments in the Inland Empire in the past year. It builds homes at a fast clip, using manufacturing techniques honed by Simon at RSI Holding.
Simon’s goal for 2012: convince home owners with older, outdated homes to knock down their existing properties and have his company put up higher-end, energy-efficient houses in their place—at a fraction of the cost of a typical new home construction.
He estimates there’s some 500,000 homes 40 years old or older from Costa Mesa to Long Beach and Lakewood. A chunk of those homeowners aren’t carrying mortgages and can afford property upgrades. The company has the ability to ramp up to build several thousand homes annually, and has kicked off its infill program in East Costa Mesa, where it has bought a few lots and is looking to buy more.
—Jane Yu
COMPANY TO WATCH: SUREFIRE LLC
The SureFire brand began as a supplier of shotgun laser sights to the Los Angeles Police Department about three decades ago. It is now a major supplier of flashlights to the U.S. military, as well as to law enforcement agencies at local, state and federal levels.
SureFire LLC is among the top employers of the city of Fountain Valley with more than 500 employees. Its primary products are flashlights, headlamps, weapon lights and helmet lights. It has four offices in Fountain Valley and two in Santa Ana.
SureFire’s largest customer is the U.S. government.
“Next year, we see ourselves making a bigger push into the first-responder market,” spokesperson Ron Canfield said.
The company is slated to launch 60 new products in 2012.
“They will all be based upon parts manufactured by us in OC,” Canfield said. “Some significant products will be rechargeable flashlights.”
—Jane Yu
