IRVINE, CA—Orange County has all the fundamentals and infrastructure in place to make it a competitive player in the global industrial marketplace, but will manufacturers here thrive overseas? That was the subject of the Orange County Business Council's recent 2015 Economic Development Forum here.

The event began with an address by Dr. Wallace Walrod, chief economic advisor for OCBC, entitled “Orange County Manufacturing by the Numbers.” Walrod said Orange County is a global leader in international trade for a myriad of significant reasons. Its proximity to the ports of Los Angeles and Long Beach, world-class airports—John Wayne, LAX, Long Beach and Ontario—and well-connected freeway and railway systems provides easy access to domestic and international markets. Additionally, Orange County is an ethnically diverse region with no one ethnicity as a majority and 30% of the population foreign-born.

Walrod went on to explain that the county is the third-highest exporter in the state and 15^th in the nation, producing $24 billion in export volume. The largest exporting sectors include computer and electronics and transportation equipment. The ports of Los Angeles and Long Beach represent the largest container port complex in the US, the largest in the Western Hemisphere, and the sixth largest in the world, combining to handle more than 40% of all inbound and outbound containers for the entire nation. For the second month in a row, the Port of Long Beach broke its own record for cargo volume in its 104-year history; overall cargo volume grew by 22.8% in August compared to the same month last year.

Manufacturing is a critical driver of the thriving international trade industry and the county economy on whole, Walrod said. While the rest of the nation has experienced major declines in manufacturing, shaping the new economy, Orange County is one of the few counties in that nation that experienced growth. As of 2014, NewGeography estimates that the county had approximately 150,020 manufacturing occupations, compared to 126,000 in 1967, representing an increase of 19.1%. Compare that to Los Angeles, which experienced the largest manufacturing employment loss of all the California counties.

Also, advanced manufacturing is a major jobs creator, accounting for more than 100,000 jobs in all skill levels, said Walrod. As technology continues to evolve, shifting both production and operational processes, advanced-manufacturing employment is expected to expand rapidly. Electrical equipment and appliance manufacturing saw the highest percentage growth over the past year with 9%, followed by aerospace product and parts manufacturing at 3.4%.

Next came the panel titled “How OC Manufacturers are Thriving in the Global Market.” Panelists included Jatan Shah, COO, QSC Audio Products; Tom Croslin, VP, Boeing Commercial Airplanes, Southern California Engineering Design Center, the Boeing Co.; and Dr. Noel Hacegaba, managing director of commercial operations and chief commercial officer, Port of Long Beach.

The panelists revealed that it's no surprise that California is ranked one of the toughest places to do business in the nation. From strict environmental regulations to onerous taxation to high costs of living, it can be very difficult for companies large and small to establish here successfully and grow. However, all the panelists agreed that one of the advantages Orange County has over many other competitor regions is intellectual capital. All three represented organizations that depend on a workforce that can fill jobs in advanced and specialized manufacturing, engineering, and supply-chain management. The Southern California region is home to many top-class universities, and Orange County in particular has a focus on developing these technical programs to produce a skilled workforce. A home-grown workforce is critical to the success of all businesses, especially manufacturing.

The final part of the forum was a keynote address by Morgan McGrath, head of international banking, commercial bank, for JPMorgan Chase. McGrath said a recent survey by Chase concluded that a quarter of middle-market businesses say 25% of their sales are outside of the US, and that number is expected to reach 50% by 2019. Companies are increasing going global for a multitude of reasons; among those, the top reasons are to pursue higher growth markets, diversify from their US base and locate closer to end markets. Emerging markets are making up much larger portions of consumer spending than ever before, since 95% of the world's consumers live outside the US, while more than 80% of consumption growth between now and 2020 will be outside North America and Europe. This is a huge potential for US businesses looking to export and tap into growing consumer markets, while those at home continue to see stagnate spending.