Nevada’s Manufacturing Sector is Growing
Nevada has experienced remarkable economic growth over the past several years.
When it comes to creating new jobs, few states can match Nevada’s trajectory. The state ended 2018 with an employment growth rate of 3.9 percent, according to Nevada’s Department of Employment, Training, and Rehabilitation (DETR). That’s more than double the national rate of job growth. The state’s two largest metropolitan statistical areas (MSAs) reported employment growing by 5.2 percent in Reno and 3.6 percent in Las Vegas in 2018.
Increasingly, Nevada’s manufacturing sector is playing an essential part in efforts to add jobs, increase economic output and diversify its industrial base.
One indicator showing Nevada’s increasing manufacturing strength can be found in DETRs March 2019 jobs report. Analysts determined the manufacturing industry was the largest contributor to the state’s gross domestic product in the third quarter of 2018, totaling 15.2 percent or $7.6 million.1
Another indicator, also from DETR in its December 2018 Economy in Brief report,2 showed the state’s manufacturing base grew at a faster rate than any other sector — showing a year to date increase of 14 percent.
The state as a whole is focused on bringing more manufacturers to Nevada. The Nevada Governor’s Office of Economic Development (GOED) has listed Manufacturing as one of the seven key industries that will help diversify the state’s economy and provide good-paying jobs to Nevadans in the future.
Groups such as the Las Vegas Global Economic Alliance (LVGEA) are also focused on bringing more attention to what Nevada can offer manufacturers. In its most recent Industry Report on Manufacturing,3 the LVGEA touted Nevada’s six consecutive years of manufacturing growth. In 2017, LVGEA was also responsible for bringing 17 new manufacturing companies to the state.
Whether people are coming for jobs or possibly to set up a new business, the move to Nevada is already underway, especially from California. The State of Nevada’s Department of Motor Vehicles found the majority of out-of-state driver’s license surrenders at Nevada DMV locations were from California, by an outstanding margin. In 2018, California license surrenders totaled 43,989 statewide. By comparison, the next highest surrender rate came from those relocating from Florida at 5,650.
Manufacturers Have a Bright Future in Nevada
Nevada offers many benefits to manufacturers. The state’s business-friendly tax climate is well-known. What potential businesses may not be considering is Nevada’s logistic benefit. As a neighbor to California, Nevada manufacturers can produce their product in a low tax state and be within one day’s transportation to California’s 60 million consumers, as well as a combined 21 million consumers in Arizona, Oregon, Washington, and Utah.
Manufacturing now employs 45,500 Nevadans, according to the National Association of Manufacturing (NAM).4 Those workers received annual compensation of $61,487 in 2016, the most recent numbers available.
Bank of Nevada and First Independent Bank, divisions of Western Alliance Bank in Nevada, are committed to supporting the needs of manufacturing companies by providing the industry-specific experience and sizable national resources to get the job done. Our relationship managers offer clients industry expertise and a wide array of banking and financing solutions that will help business owners be successful. Contact Bank of Nevada or First Independent Bank to learn how we can help your manufacturing business grow..
1. adjusted for inflation, measured in 2012 chained dollars
3. https://www.lvgea.org/wp-content/uploads/2018/09/LVGEA-MFG-sector-report.pdf, p.2