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California Manufacturers Outperform Most States

Photo by Fred Greaves

High voltage power lines cross through the California desert west of El Centro.

California's electricity prices are some of the highest in the country, but that hasn't crippled the state's manufacturing industry.

A new report finds California's manufacturers are among the most productive in the nation when measuring how much electricity they use.

That happens despite the fact that the state's electricity prices are among the nation's highest.

A study by the non-partisan Next10 group finds manufacturers are thriving in California. In fact, the state was the second most productive in the nation.

"For one dollar of electricity, California manufacturers can produce 59 dollars of manufactured goods. As compared with every dollar spent by manufacturers in the rest of the nation, which produced 38 dollars," said Noel Perry the founder of Next10.

California has some of the most aggressive carbon reduction policies in the nation, but the state is still a top location for manufacturing because there's an emphasis on efficiency.

That's being translated into lower costs.

"If you use less electricity, you pay less," Perry said. "So its like buying a fuel efficient vehicle. Even if gas costs more and the analogy is to electricity, you pay less at the pump because you don't have to fuel up as much."

California's energy productivity ranks second best in the country behind Connecticut. The state ranks well above the national average.

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