A visit by key Silicon Valley business and community leaders to another of North America’s great cities, this annual program helps regional leaders to learn to best practices and bring back ideas to make our home an even better place to live and work. In 2017, the Study Mission got a new look and feel as - Destination: Silicon Valley, on Nov. 1-3 in Monterey, Calif. The delegates had the opportunity to hear presentations from speakers/panelists on seven key regional topics: Housing Transportation Downtown San Jose International Competitiveness Emerging Technologies Advanced Manufacturing Regional Branding

1. The Future of Advanced
Manufacturing
November 2, 2017
City of San Jose

2. 2
Why are we talking about manufacturing?
Why is the City leading the conversation?
How does this impact us?

3. 3
JOBS BY SECTOR
0 20,000 40,000 60,000 80,000
Professional and Business…
Manufacturing
Wholesale and Retail Trade
Health Services
Leisure and Hospitality
Education and Health Services
Construction
Public Administration
Financial Activities
Transportation and Utilities
Information
Other Services
Unclassified
Natural Resources and Mining
1 in 7
San Jose Jobs
are in
Manufacturing

4. 4
Manufacturign Jobs in San Jose
40,000
45,000
50,000
55,000
60,000
All Manufacturing

5. 5
FOOD AND CONSUMER PRODUCTS

6. 6
SPECIALTY EQUIPMENT

7. 7
ADVANCED ELECTRONICS

8. 8
High-Mix, High Value, Low Volume

9. 9
WHO MANUFACTURES?
Type Description Example
OEM (Original
Equipment
Manufacturer)
The original manufacturer of a hardware component or
sub-component. A company that sells products (including
software) under its own label.
Brocade, Cisco, Apple,
Tesla, WD
ODM (Original
Design
Manufacturer)
Company which manufactures a product which ultimately
will be branded by another firm for sale.
QCT, Wistron, Inventec
CM (Contract
Manufacturing)
Firm that manufactures components or products for
another hiring firm.
Vander-Bend, SMTC,
Bestronics
EMS
(Electronic
Manufacturing
Services)
Companies that design, test, manufacture, distribute and
provide return/repair services for electronic
component and assembles for OEMs. EMS players focus
their production in a lower-cost geographies; stretching
from design and ODM through system assembly, test,
delivery and logistics, warranty and repair, network
services, software, design & customer service
Flextronics, Foxconn,
Jabil, Sanmina,
Celestica, Benchmark

10. 10

11. PRODUCT INNOVATION
11
CONCEPT
FINAL DESIGN
AND TEST
FEASABILITY
PILOT
PRODUCTION
CONSUMER OR
MASS
PRODUCTION
SMALL TO MID
VOLUME
PRODUCTION
SAN JOSE MANUFACTURING
ECOSYSTEM
LOW COST GLOBAL
GEOGRAPHIES

12. Manufacturing Drives Innovation
12
• AR Interface
• Communications
• Biometric sensing
• Battery
Technology
• Smart fabrics
• Autonomous
vehicle
• Synthesized food
• Aerospace
• Robotics

13. 13
Why are we talking about manufacturing?
Why is the City leading the conversation?
How does this impact us?

14. 14
INCOME INEQUALITY
Overall Tier 1 Tier 2 Tier 3
High-skilled Middle-
skilled
Low-skilled
Santa Clara
County
$78,499 $127,549 $57,720 $29,578
CA $54,704 $102,336 $49,982 $27,539
USA $48,506 $89,773 $45,240 $25,629

15. US GDP growth continuing
but mixed signals ahead
Source: Bureau of Economic Analysis (BEA)
2012 2013 2014 2015
0 2000 4000 6000 8000 10000
Electrical and Electronic Equipment…
Team Assemblers(512092)
Inspectors, Testers, Sorters, Samplers,…
First-Line Supervisors of Production and…
Machinists(514041)
Bakers(513011)
Assemblers and Fabricators, All…
Semiconductor Processors(519141)
Welders, Cutters, Solderers, and…
Helpers--Production Workers(519198)
Employment

16. 16
FULL RANGE OF JOBS
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
SoftwareDevelopers,SystemsSoftware
SoftwareDevelopers,Applications
ComputerHardwareEngineers
ArchitecturalandEngineeringManagers
ElectronicsEngineers,ExceptComputer
ElectricalEngineers
MarketingManagers
ComputerandInformationSystems…
IndustrialEngineers
MechanicalEngineers
GeneralandOperationsManagers
ElectricalandElectronicsEngineering…
First-LineSupervisorsofProduction&…
SemiconductorProcessors
Electro-MechanicalTechnicians
IndustrialEngineeringTechnicians
MechanicalEngineeringTechnicians
MechanicalDrafters
ElectricalandElectronicsDrafters
MechanicalDrafters
ElectricalandElectronicEquipment…
TeamAssemblers
Inspectors,Testers,Sorters,Samplers,…
BusinessOperationsSpecialists,AllOther
Machinists
PurchasingAgents,ExceptWholesale,…
Shipping,Receiving,andTrafficClerks
ElectromechanicalEquipmentAssemblers
CustomerServiceRepresentatives
ExecutiveSecretariesandExecutive…

17. 17
PRINTED CIRCUIT BOARDS: INDUSTRY PROFILE
0 1,000 2,000 3,000
19-24
25-34
35-44
45-54
55-64
65+
Workforce by Age
53 companies in San Jose
Typical occupations: assemblers, hardware engineers
Average annual earnings: $69,000

18. 18
MACHINE SHOPS: INDUSTRY PROFILE
123 companies in San Jose
Typical occupations: machinists, CNC operators
Average annual earnings: $71,100
0 500 1,000 1,500
19-24
25-34
35-44
45-54
55-64
65+
Workforce by Age

19. 19
Why are we talking about manufacturing?
Why is the City leading the conversation?
How does this impact us?

20. CHALLENGES/OPPORTUNITIES
20
01 Workforce
03 Real Estate
02 Business
Climate
04 Support

21. Workforce
Development

22. Local Manufacturing – Key Partners
• Work2Future
• SVO
• SF Made
• NextFlex
• SJ Mayor’s Office
• SVEDA
• MetroEd, Campbell Unified, SJ Unified, ESUHSD
• TechShop

23. Aligned with National
Manufacturing Day (Friday Oct.
6)
Two days of tours of
manufacturing companies in
San Jose ranging from
electronics to medical to
building materials
800+ students, 5 school
districts, 35 tours, 12
companies
SVO integral partner in
bringing event together
San Jose
Manufacturing Week

24. Strive San Jose/San Jose Works
024
• Partnership between CoSJ, W2F, and
SVO
• Brings employment opportunities to
youth, with over 1,200 students served
since 2015
• 120 hours of paid employment over the
summer
• Slowly expanding number of
manufacturing employers

25. San Jose Manufacturing Initiative - Permitting
Launched by Mayor Liccardo in 2015
Focused on reducing barriers to allowing local
manufacturing to thrive
Permitting Incentive – Expedited permitting incentives to reduce
time to opening as well as reimbursement of some fees
Companies include Space Systems Loral, Thinfilm,
Four-In-One, 10th Street Distillery, and Bentek

26. SJ Mfg. Initiative – Workforce Development
page
026
Work2future
• Through Work2Future, the City
has provided manufacturing
training and career placement
to over 350 residents in the
past two years:
• 180 trained in programs
including: project management
for manufacturing, CNC
machining, laser cutting, &
welding.
• 100 internship placements
• 50 on-the-job training
placements
Advanced Manufacturing
Sector Strategy
• Systematic approach to
assisting employers improve
talent pipeline
• Employer-led initiative which
includes executives from Jabil,
Bentek, Bestronics, Cobham,
Creative Manufacturing
Solutions, Rose Electronics,
Vander-Bend

27. NextFlex: FlexFactor
program
• FlexFactor: Advanced Manufacturing
High Schools Initiative
• Developed by NextFlex in partnership
with Evergreen Valley College
• Consists of manufacturing facility tours,
4-week business plan boot camp
• In 2016–17 school year (first full year)
214 students from six high schools (four
school districts) completed the program
• College credit from Evergreen Valley
College or San Jose City College
• Working towards nearly 1,000 students
from 20 schools next school year

28. CHALLENGES/OPPORTUNITIES
28
01 Workforce
03 Real Estate
02 Business
Climate
04 Support

29. CHALLENGES/OPPORTUNITIES
29
01 Workforce
03 Real Estate
02 Business
Climate
04 Support

30. Industrial Park: 9%
Light Industrial: 1.6%
Heavy Industrial: 2.1%

32. CHALLENGES/OPPORTUNITIES
32
01 Workforce
03 Real Estate
02 Business
Climate
04 Support

35. 35
SUPPORT NETWORK
Non Profit​ For Profit​ Membership​ Govt.​ Education​
Small
Business/Start-
Ups
•SVSBDC​ •TechShop​
•PRG​
•BriteLab​
•H&F​
•ProspectSV​
• •BOS​ •
Workforce
Development
•Work2Future
Foundation​
•NextFlex
•SME​
• •SVO​
•
•Work2Future​
•NOVA​
•Manex​
•San Jose
Evergreen
Community
College District​
•DeAnza
Community
College​
•San Jose City
College​
•Mission College​
•SJSU​
Business
Development
•Reshoring
Initiative​
•PRG​ •SVO​ •OED​ •
Branding • •SJMADE​ • •TSJ​ •
Advocacy •SPUR​
•Reshoring
Initiative​
•
• •SVLG​
•Bay Area Council​
•
• •
Innovation •NextFlex​ •Lab IX (Flex)​
•BlueSky (Jabil)​
•BriteLab​
•ProspectSV​
• • •

36. 36
SUPPORT NETWORK

37. Questions?
Chris Burton
Sr. Business Development Manager
Office of Economic Development
City of San Jose
Chris.burton@sanjoseca.gov