Rising demand from markets in Asia coupled with a weak dollar should buoy Orange County manufacturers in 2011.
Employment in manufacturing is expected to reach 152,726, up about 1% from 2010, according to a forecast from Chapman University.
The projected gain, while modest, would reverse a 2.3% loss in manufacturing jobs expected this year.
The recent job losses have come as some companies met production demand with fewer workers.
That model isn’t sustainable in a better year, said Esmael Adibi, director of the Anderson Center for Economic Research at Chapman University.
“Ultimately we believe they will have to hire some,” Adibi said.
The county’s manufacturers produce computer products, medical devices, industrial goods, clothes and other items.
A downturn in consumer and corporate spending during the recession hit the sec- tor hard, furthering a long-term trend of job losses at companies opting for cheaper production overseas.
The slight gain in employment for 2011 could keep manufacturing at about 11% of the 1.6 million workers in the county as other sectors begin to add jobs.
Manufacturing’s three sectors—durable goods, non-durables and technology—are expected to add similar totals of jobs next year.
Durable goods, which include long lasting products and industrial gear, are projected to see 534 jobs added for a total of 63,217.
Non-durables, including clothing and shorter-lived products, is expected to add 540 jobs for a total of 46,592 people.
Technology is forecast to add 428 for a total of 42,917 workers.
According to Chapman’s quarterly survey of purchasing managers in California, the tech sector has shown the most improvement since early 2009.
“High-tech should do fine,” Adibi said.
The lower value of the dollar, which has shed about 10% against major currencies in the past six months, will create some challenges for manufactures.
A weaker dollar makes U.S. exports and services more attractive but also increases the cost of oil, other commodities and materials used in manufacturing.
That could hold back more significant manufacturing growth, according to economists.
Meanwhile, manufacturers in the defense industry could see demand fall if lawmakers slash the federal budget next year.
Companies in clean technology have big plans for 2011, including Irvine’s Fisker Automotive Inc., which plans to debut its hybrid luxury sedan early next year.
Enovate Corp. in Irvine is set to begin production on rechargeable batteries.
Quantum Fuel Systems Technologies Worldwide Inc. is converting its Irvine headquarters into a plant for producing solar panels.
PERSON TO WATCH
HENRIK FISKER
Henrik Fisker is working on a big year with the expected debut of Fisker Auto-motives Inc.’s hybrid luxury sedan.
Full production of the Karma is expected in early 2011, with deliveries to 3,000 buyers who pre-ord-ered the cars. Ship-ments to dealers are slated to follow.
Since 2007, Fisker has raised more than $320 million in funding, making it the county’s clean tech darling.
The automaker is hiring engineers, designers, sales, marketing and administrative personnel at its Irvine headquarters. It relocated an engineering center and two dozen jobs from Michigan to its headquarters earlier in the year.
The shift and recent hiring has more than doubled the payroll, and there’s more to come, Fisker told the Business Journal in an earlier interview.
The company expects to hire up to 100 more engineers through the first half of 2011 as it prepares for the Karma launch and develops new models.
—Chris Casacchia
COMPANY TO WATCH
TRI ALPHA ENERGY
Tri Alpha Energy Inc. is crafting a nuclear fusion technology in the foothills of South County, where getting inside its headquarters is mission impossible.
The Foothill Ranch-based company is one of the most secretive here—no signs, website or public appearances.
Tri Alpha is cloaked in mystery, but we do know it has raised some $100 million since it started in 1998.
Backers include billionaire Paul Allen’s Vulcan Capital in Seattle, Palo Alto-based Venrock Associates and Goldman Sachs Group Inc. in New York.
Executives haven’t publicized anything, although Chief Executive Dale Prouty vaguely hinted at a future announcement when we showed up at his doorstep unannounced a few months ago.
Based on scant reports and patent information, the University of California, Irvine, spinoff is trying to mix hydrogen and boron to produce helium.
The mixture’s reaction releases energy, which could be used to generate electricity and eliminate waste produced at nuclear power plants.
Tri Alpha has indicated its technology could produce enough energy for commercial use by 2015 or 2020.
—Chris Casacchia
