Business & Tech

Report Says 12 Industries Drive East Bay Economy

A study by the East Bay Economic Development Alliance identifies the fields that bring the most wealth and investment into the region. The findings can also help students and job seekers pick industries with futures.

Sure, the world is stuck in an economic rut.

But Alameda and Contra Costa counties remain centers of innovation, says a report being released by the East Bay Economic Development Alliance (East Bay EDA).

The 80-page document identifies a dozen industries that drive the economies of the two East Bay counties, said Supervisor Keith Carson, who chairs the East Bay EDA.

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"It is important for people to know that these are the industries where people should look to for jobs with a future," he said.

These sectors power the economy by bringing investment and wealth into the East Bay rather than merely re-circulating it, the study says.

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They are weighted toward high-tech and biotech but not exclusively so. (See complete list below.)

East Bay has a manufacturing future

Although the overall number of factory jobs continues to decline here as well as nationwide, the report says the East Bay can preserve its manufacturing base by producing high-tech goods, biotech drugs, medical devices and short-run specialty products.

Carson said the Port of Oakland can spur light manufacturing — the final assembly of finished goods from components made overseas.

The report says the East Bay also wins jobs from Santa Clara and San Mateo counties when Silicon Valley firms expand without moving offshore.

But the East Bay must do a better job of marketing itself as a destination for industry.

"When people think of the Bay Area they think of Silicon Valley and San Francisco," Carson said. "We have to work to change that."

Jobs picture isn't pretty

Although the report takes an optimistic view of the future, the current jobs numbers are bleak.

The two East Bay counties currently have a workforce of 944,700 jobs.

In 2007, there were 1,048,500 people working in the two counties.

So, the East Bay has lost nearly one out of 10 jobs over the past four years.

The report does not offer job totals for the future.

But it does suggest that most of the opportunity will come from replacing retiring Baby Boomers rather than creating new jobs.

"Seven out of every 10 job openings in the East Bay over the next 10 years will be due to the need to replace an existing worker," the report says.

The growth drivers

The report highlights a dozen industries for their potential to serve as the engine of the East Bay economy. They are:

  • Computer Systems Design and Related Services;
  • Scientific Research and Development Services (including biotechnology and clean energy);
  • Architectural, Engineering and Related Services;
  • Management, Scientific and Technical Consulting Services;
  • Petroleum and Coal Products Manufacturing;
  • Semiconductor and Other Electronic Component Manufacturing;
  • Navigational, Measuring, Electromedical and Control Instruments Manufacturing;
  • Medical Equipment and Supplies Manufacturing;
  • Bakeries and Tortilla Manufacturing;
  • Pharmaceutical and Medicine Manufacturing;
  • Industrial Machinery Manufacturing; and
  • Computer and Peripheral Equipment Manufacturing.


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