California’s new manufacturing voice in Washington, D.C., may not be who many would expect but Kellie Johnson has a clear vision of what federal and state lawmakers must do to breathe life into the nation’s beleaguered manufacturing sector.
Johnson, 45, is president of Torrance-based Ace Clearwater Enterprises, a maker of defense and commercial aerospace parts that was started by her grandfather and has turned into a $25 million a year business under her 17-year tenure.
Though she has no formal business training, the UCLA international relations grad has become an influential figure in the California manufacturing industry and spends much of her spare time on lobbying efforts.
“It just boggles my mind how we’re losing plants left and right and how the cost of doing business is so high. The state is driving out the most important sector of the economy and I want to change that,” said Johnson, who believes the region’s mild weather and port complex should make it the premier location in the United States to open a manufacturing plant.
Johnson is already a member of the National Association of Manufacturer’s board, as well as chairwoman of the South Bay Economic Development Partnership. This week, she is scheduled to receive her biggest appointment yet: a seat on the Commerce Department’s National Manufacturing Board.
The federal board advises Department Secretary Carlos Gutierrez and legislators on how to make U.S. manufacturing more competitive in the global economy.
Johnson, who said she plans to add a “West Coast touch” to the board, is in heady company as its sole California representative. Other members include James Owens, chairman and chief executive of Caterpillar, Inc. and James Padilla, chief operating officer of Ford Motor Co.
Johnson’s No. 1 priority is to work toward lowering the overall cost of doing business, especially in California, declaring the country has a 22 percent “indirect cost disadvantage” compared to its major trading partners.
“These are costs that are basically out of our control like regulatory compliance, taxes, health care and legal fees. Here in California those costs are elevated. They need to be reduced for us to remain competitive,” said Johnson, who favors tax incentives to spur research and development.
Another Johnson favorite: a program similar to President Bush’s American Competitiveness Initiative, which aims to strengthen education by focusing on math and science.
