At this month’s Southern California Development Forum, manufacturing industry leaders came together for an in-depth conversation about the evolving landscape in the region. The message is clear: Southern California remains a national manufacturing powerhouse, but sustaining and strengthening that position will require adaptability, investment, and collaboration across sectors. 

Moderated by Annette Allen, Advanced Manufacturing Core Market Leader at DPR Construction, the session opened with a focus on what’s driving manufacturing demand today — construction considerations, workforce readiness, sustainability commitments, and the increasing influence of advanced technology. Panelists included Veronica Pugin, Vice President of Industry, International & Business Promotion at Los Angeles County Economic Development Corporation (LAEDC); Brian Stonerock, Construction Project Manager at Anduril Industries; Ryan Gayita, Director of CUMMING GROUP; and Brent Homan, Project Manager at CRB Group. The panelists examined not only what’s fueling this strength, but also what challenges must be addressed to keep the industry competitive. 

A Workforce That Sets LA Apart 

With more than 320,000 manufacturing employees and average salaries surpassing $100,000, Los Angeles County continues to hold the title of the largest manufacturing hub in the United States. Los Angeles has a diverse and highly skilled workforce. She emphasized that LA’s combination of legacy industrial expertise, advanced manufacturing capabilities, and access to dual-use technology has created a unique environment where innovation thrives. 

To sustain this advantage, Pugin underscored the importance of workforce development. LAEDC’s partnerships with community colleges and training institutions are helping to build specialized pipelines that meet the needs of today’s manufacturers. With state investments, such as $100 million in manufacturing tax credits and improvements to the capital permit access portal, California is acknowledging the need to support both employers and future workers. 

Designing for Flexibility and a Faster Future 

A recurring theme throughout the panel was the growing need for flexible, future-ready facilities. Stonerock, who has led major industrial and manufacturing construction efforts, including work with Tesla, spoke about the shift toward process optimization and throughout-focused design. 

Facilities today must accommodate rapid changes in technology, production processes, and market demands. This means incorporating adaptable layouts, modular equipment, and built-in capacity for expansion. As AI and automation transform workflows, designs must support continuous data collection, predictive maintenance, and system-level optimization. 

Gayita added that sustainability is now an essential part of facility design, not an afterthought. From energy use to materials selection to waste management, clients are prioritizing environmental responsibility even though doing so often increases project complexity and cost. International partners investing in LA must also adapt to California’s stringent sustainability standards. 

Navigating Security, Regulation, and Risk 

The panelists also addressed increasing government security requirements, which are becoming a significant factor in facility planning. Stonerock shared firsthand experiences with the challenges of meeting strict compliance mandates, securing specialized resources, and ensuring facilities are built to protect sensitive technologies. 

At the same time, shifting economic conditions have influenced project execution. Homan explained that clients are delaying key design decisions to preserve cash flow and gain more certainty before committing. This demands highly flexible project teams and partners capable of adjusting rapidly to evolving scopes. Panelists agreed that risk mitigation starts with building strong talent pipelines and assembling teams with deep expertise. Community engagement also plays a central role; transparent communication, early outreach, and demonstrating community benefits are essential to project success. 

The Power Puzzle 

Power and energy needs surfaced as another defining issue. With limited infrastructure and rising demand, manufacturers face challenges securing sufficient power for operations, especially when expanding or building new facilities. Homan emphasized the need for more efficient power usage and sustainable design practices that reduce consumption. 

“It’s not about how we find more power...It’s about how do we use our power differently and efficiently,” said Homan. 

Because of this, California’s energy constraints create both barriers and opportunities. He expects companies to explore innovative solutions, from microgrids to renewable integrations, to ensure reliability while maintaining environmental commitments. 

A Path Forward: Collaboration Is Key 

The session concluded with a clear call to action: collaboration is key. Gayita emphasized that California must attract more industry, not less, and doing so requires addressing workforce development, housing supply, and infrastructure limitations. Pugin agreed and also encouraged attendees to share resources and information to strengthen the broader manufacturing ecosystem. 

Southern California’s manufacturing industry sits at a critical juncture. With its unmatched workforce, global connectivity, and culture of innovation, the region is poised for continued leadership. But realizing that potential will require coordinated efforts from policymakers, educators, developers, and industry partners. 

The future of manufacturing in Southern California will be built not just by companies, but by communities working together to support economic growth, technological advancement, and long-term sustainability.