In the midst of rising uncertainty about the health and long-term stability of our nation’s economy, a new study from the Brookings Institution on America’s Advanced Industries finds that a renewed and sustained investment in this sector is what’s going to save America’s economic future. The report calls on business leaders, government, and the civic sector to work together in new ways to boost their economic vitality.

Of course, the premise of this call to action strikes right at the heart of Fremont’s strategic and holistic approach in transforming the Warm Springs Innovation District into a world-class industrial innovation eco-system. Over the next several weeks, we’ll be taking a closer look at key findings in the report and comparing how our efforts here at home stack up against what is happening on a national level.

So, what qualifies as an industry as “advanced” anyway?

According to the report, advanced industries encompass 50 industries, ranging from automotive and aerospace, to energy industries such as oil and gas extraction, to high-tech services, such as computer and software and system design. These industries are characterized by their deep involvement with technology research and development (R&D) and STEM (science technology, engineering and math) careers.

Here’s a look at some of the report’s key findings:

  • In 2013, the advanced industries sector employed 9 percent (12.3 million) of the country’s workers, but produced 17 percent ($2.7 trillion) of the country’s GDP.
  • The sector employs 80 percent of the nation’s engineers, performs 90 percent of private-sector R&D, generates approximately 85 percent of all U.S. patents, and accounts for 60 percent of U.S. exports.
  • Every new advanced industries job creates an additional 2.2 “domestic” jobs — 0.8 locally and 1.4 outside of the region. So directly and indirectly, the sector supports almost 39 million jobs — nearly 25 percent of all U.S. employment!
  • In 2013, the average AI worker earned $90,000, nearly twice as much as the average worker in other industries.

The report findings resonate strongly in Fremont, perhaps more so than many places, given that advanced industries are the prime drivers of growth for our economy. Companies like Tesla, Boehringer Ingelheim, and Lam Research are delivering products and services in industries ranging from cleantech to lifesciences and contributing to the City’s B2B taxes, workforce, and gross regional product.

Take a look at the economic impact of the advanced industries in Fremont:

  • In Fremont, advanced manufacturing accounts for 23 percent of the City’s total workforce, but generates close to 30 percent its Gross Regional Product.1
  • In Alameda County, 41.5 percent of all manufacturing jobs are in Fremont and salaries are 23.7 percent higher.2
  • Fremont is home to 889 firms in 185 industries that employ 26,650 workers in manufacturing.3
  • In recent years, Fremont has seen $500 million worth of private investment in new and existing large-scale manufacturing facilities by companies like Tesla Motors, Seagate, Lam Research, Thermo Fisher Scientific, and Western Digital.4
  • In the period2012-2014, one-third of all patents issued to Fremont companies related to manufacturing.5

In our next installment, we’ll be examining the importance of investing in the future of STEM careers as a way to help bridge the economic divide and extend economic opportunities to the middle class. Stay tuned!