L.A. County’s embattled manufacturing industry lost 15,700 jobs last year, but the sector is ready for a modest rebound as spending in defense, transportation and other areas picks up, according to a report by the Los Angeles County Economic Development Corp.

Competition from low-cost Chinese imports and high industrial rents extended a long decline of the county’s industrial sector, which employed 484,200 last year, down 3.1 percent from 2003, according to the report.

“Despite these job losses, which in L.A. County have been pretty horrendous, too many people are saying that manufacturing in L.A. has gone away but it hasn’t,” said Jack Kyser, a senior economist who co-wrote the report.

The vitality of the industrial base has been a critical factor in the health of the region’s overall economy, especially as the region faces increasingly stiff competition from abroad.

A decade ago, huge aerospace losses brought the region to its knees, but the latest report shows that the sector is far healthier. Southern California also remains the largest manufacturing center in the country, employing 930,000 workers last year.

While there are key trouble spots, such as Chinese imports and high overhead costs, the report also maintains that the region can maintain its leading manufacturing role if state and regional lawmakers take steps to improve the business climate, such as by restoring the state’s manufacturing investment credit.

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The full version of this story

is available in the April 4 edition of the Los Angeles Business Journal.