What California Can Learn from Germany's Manufacturing Experience
California remains the nation's largest manufacturing economy and a global center for innovation, engineering talent, and venture capital. Yet while the state generates a disproportionate share of manufacturing value, much of the next generation of production capacity is being built elsewhere. Germany's recent manufacturing experience offers a valuable perspective for understanding this challenge.
This study examines how two of the world's most advanced, high-cost manufacturing economies are responding to rising costs, shifting supply chains, workforce pressures, and global competition. Drawing on public data, industry research, and Porsche Consulting analysis, the report identifies warning signs, highlights growth opportunities, and outlines practical actions that policymakers and manufacturing leaders can take to strengthen California's industrial competitiveness and accelerate the path from innovation to scaled production.