Los Angeles is one of the largest cities in the country and is known as the entertainment hub of California. While technology companies and the entertainment industry receive a large amount of well deserved of credit for bolstering the economy of Los Angeles, it’s important to note that these industries aren’t the only ones employing Angelinos. In fact, the largest industry in Los Angeles by far is the manufacturing industry, followed closely by steel fabrication and shipping. There are a lot of factors that contribute toward the constant growth and development of the myriad industries of Los Angeles.

Major Industries and Economic Drivers in Los Angeles

According to Forbes, the creative industries in Los Angeles account for around 1/6 of all the employment in the city. Manufacturing is perhaps the largest industry in the city, with jobs in the manufacturing sector accounting for over 500,000 manufacturing jobs in Los Angeles. Among the most commonly manufactured goods in Los Angeles are sheet metal, consumer electronics and aerospace technologies. Large tracts of land are set aside throughout the city that are either currently being used by manufacturing companies or set aside for industrial use.

In addition to the manufacturing and creative industries, shipping is a large industry in Los Angeles. The Port of Los Angeles is the largest commercial port in the United States, with more shipping going through that port than anywhere on either the Pacific or Atlantic coasts. Its proximity to major shipping lanes connecting to Japan and China have been a huge part of this growth, though there have also been a large number of government incentives developed to protect and nurture this industry.

Government Programs and Incentives for Business in Los Angeles

Integral to growing a thriving and robust economy are developing incentives that both draw business to the city and nurture its growth. Every aspect of the business generation chain from development to operations and growth have some form of government support scheme to gather support from. This means that new businesses can find help in land use, land development, zoning assistance, seed funding and even legal assistance. Also, tax breaks and tax incentives are a popular way to push growth throughout the greater Los Angeles metro area.

One of the most widely cited examples of how tax incentives have helped to develop the Los Angeles metro area is the tax scheme set up for the entertainment industry. The California Film and Television Tax Credit Program has been a major factor in the development of the film and television industries in Los Angeles. It allows for substantial tax incentives for productions in a wide range of circumstances. These incentives may be based upon how much of the talent and labor is sourced locally, they may be based on pure geography or even just how large the budget is. These incentives don’t just encourage production companies to start in Los Angeles. They also serve as an incentive that allows these businesses to develop and flourish over time.

While the film tax incentive program is very well-known, the film industry isn’t the only one benefiting from these schemes. The Los Angeles County Economic Development Corporation has a number of incentive programs available for all different types of businesses at all different sizes. The organization notes that the largest of these incentives and grant programs are directed almost completely toward the manufacturing industry. As noted earlier, manufacturing accounts for more than half a million jobs throughout the city. As a result, the most likely candidates to receive this type of funding will be established businesses looking to set up a manufacturing presence within the city.

Constant Forward Motion

Los Angeles is a vibrant city that is considered by many to be a center of culture, business, art and tourism. To sustain such a large city, its economy needs to be as diverse as possible if it is to remain sustainable. Based on the number of grants, incentives and tax breaks available within Los Angeles, it’s safe to say that the city understands how vital these programs are for pushing local development. This attitude has allowed Los Angeles to develop into the economic powerhouse it has become today.

Sources:

http://www.film.ca.gov/incentives.htm

http://www.forbes.com/places/ca/los-angeles/

http://laedc.org/chooselacounty/business-incentives/

http://www.city-data.com/us-cities/The-West/Los-Angeles-Economy.html