Manufacturing Industry in Nevada

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Manufacturing Industry in Nevada

The two laws and regulations we found for manufacturers in Nevada involved gaming equipment manufacturing and autonomous vehicles. Current manufacturing trends in Nevada are manufacturing output growth and manufacturing job growth in the Reno-Sparks area. We were able to find four manufacturing industry associations in Nevada, which were the Nevada Manufacturers Association, the Association of Gaming Equipment Manufacturers, Nevada Industry Excellence, and the Association for Manufacturing Excellence (Western Region).

Manufacturing Laws & Regulations in Nevada

1. Minimum Age for Gaming Employees Lowered

A. Overview

  • On May 2, 2019, "[t]he Association of Gaming Equipment Manufacturers (AGEM) announced . . . the passage by the Nevada Legislature of Assembly Bill 221 that expands the state’s technology and manufacturing workforce by giving those 18 to 20 years legal status as a 'gaming employee' working for slot machine, systems, table game and component suppliers. "
  • That new law marked a change from Nevada's prior law that "prohibited any person under 21 from being employed as a 'gaming employee' except as a member of a casino count room staff. The passage of AB221 retains the count room exception for casino operations, and otherwise applies only to the technology supplier sector, which previously couldn’t even offer internships to those under 21."

B. Success Metric

  • Employment data reported at year-end 2019 showed that gaming industry employment in the Las Vegas-Paradise area increased by 3.9% year-over-year from December 2018 to December 2019.

2. Autonomous Vehicle Self-Certifications

A. Overview

  • Nevada has enacted regulations for autonomous vehicle self-certification.
  • Nevada's "Self-Certification for Autonomous Testing" regulation states that "[m]anufacturers and developers interested in testing their vehicles in Nevada must submit their completed 'Autonomous Vehicle Testing Registry Application' packet to the Department’s address . . . ."
  • Nevada's "Self-Certification for Operations (Public Use)" regulation states that "[p]rior to registering an autonomous vehicle in Nevada, the manufacturer or developer must self-certify with the Department that they are in compliance [with] the requirements of Chapter 482A of the Nevada Revised Statutes. The manufacturer or developer must submit their completed 'Autonomous Vehicle Certification Registry' packet to the Department address . . . . If the manufacturer or developer incorporates their autonomous technology into other makes and models, they will be required to submit an additional 'Autonomous Vehicle Certification Registry' packet to the Department for certification."

B. Success Metrics

  • As a result of Nevada's regulations that welcome autonomous vehicle testing, Zoox, which is an "autonomous vehicle startup" in which $800 million had been invested as of 2019, announced in 2019 that it was "expanding to Las Vegas." That same year, the Nevada Department of Motor Vehicles granted Zoox permission "to drive autonomously on state roads."
  • Zoox chose to expand to "Las Vegas because the region offers an opportunity to extend learning in a second dense urban environment and one that it says has diverse and unique use cases . . . [such as] reversible lanes, complex pick-up and drop-off zones, high temperatures and more night-time activity . . . ."
  • In May 2019, Lyft, another autonomous vehicle company, achieved a milestone, as it had "complete[d] 50,000 self-driving rides in Las Vegas."
  • In 2018, job growth for motor vehicle manufacturing increased by 15.8%.
  • In January 2019, it was announced that the Regional Transportation Commission of Southern Nevada had "become the first in the world to put roadway information into a digital format for consumption by autonomous vehicles."

Current Manufacturing Trends in Nevada

1. Manufacturing Output Growth

  • A current trend in Nevada's manufacturing industry is the growth in total manufacturing output, in terms of dollar amount, within the state.
  • This trend was noted by several sources, including the National Association of Manufacturers and Bank of Nevada.
  • In 2016, manufacturing output in Nevada totaled $6.13 billion.
  • In 2017, manufacturing output in Nevada increased to $6.69 billion.
  • In 2018, manufacturing output in Nevada spiked to $8.11 billion.
  • A May 2019 report from the Nevada Department of Employment, Training and Rehabilitation stated that "the largest contributor to GDP growth in Nevada was manufacturing totaling 19.1 percent, the highest in the nation."
  • Xtreme Manufacturing is a company in Nevada leaning into the trend, as it recently "announced plans to expand operations in Henderson, Nev[ada]."

2. Manufacturing Job Growth in Reno-Sparks

  • A current trend in Nevada's manufacturing industry is the manufacturing job growth in the Reno-Sparks area.
  • This trend was noted by multiple sources, including KTVN News and This Is Reno.
  • The number of manufacturing jobs "in the Reno-Sparks . . . area surpassed total manufacturing employment in Las Vegas for the first time" in October 2019. As of that month, there were over 27,400 manufacturing jobs in the Reno-Sparks area and the number of manufacturing jobs in the Las Vegas area totaled 26,100.
  • That milestone was especially significant considering that the Las Vegas area "is about four times larger than Reno-Sparks with more than 1,040,000 jobs compared to 263,000."
  • As of January 2019, the Reno-area counties of Storey and Washoe had 25,300 residents who held manufacturing jobs, which marked a year-over-year "increase of about 5,300 manufacturing jobs" (totaling 10% of jobs in that area).
  • Pictographics is a manufacturer in Nevada leaning into the trend, as the company is projected to add 50 new jobs.

Insights About the Outlook for Nevada's Manufacturing Industry

  • We identified five insights regarding the outlook for the manufacturing industry in Nevada. We chose these five insights because they show how manufacturing demand is projected to increase throughout the State of Nevada, as is illustrated through employment growth. We provided a screenshot of those data points in this Google Doc because the data was provided in a download-only Excel document.
  • Per an October 2018 article, "an estimated 10,000 manufacturing jobs [were expected] to come to northern Nevada over the next decade . . . ." David Schmidt, who is the "chief economist for [Nevada's] DETR’s [Department of Employment, Training and Rehabilitation] research and analysis bureau", views this insight as one to watch.
  • Nevada's DETR projected that between 2016 and 2026, there would be 19,649 new manufacturing jobs in Nevada. In 2016, there were 43,478 manufacturing jobs in the state and in 2026 that number was projected to increase to 63,127 (which would constitute 45.2% job growth). Jonas Peterson, the Las Vegas Global Economic Alliance's CEO, views this insight as one to watch.
  • Nevada's DETR projected that in the Carson City area between 2016 and 2026, there would be an increase of 308 manufacturing jobs. In 2016, there were 2,530 manufacturing jobs and in 2026 that number is projected to increase to 2,838 (which would constitute 12.2% job growth). Nevada's DETR regards this insight as one to watch, as it was the organization that provided the projection.
  • Nevada's DETR projected that in the Reno-Sparks area between 2016 and 2026, there would be an increase of 14,835 manufacturing jobs. In 2016, there were 13,978 manufacturing jobs and in 2026 that number is projected to rise to 28,813 (which would constitute 106.1% job growth). David Schmidt, who is the "chief economist for [Nevada's] DETR’s research and analysis bureau", views this insight as one to watch.
  • Nevada's DETR projected that in the Las Vegas area between 2016 and 2026, there would be an increase of 4,608 manufacturing jobs. In 2016, there were 22,006 manufacturing jobs and in 2026 that number is projected to increase to 26,614 (which would constitute 20.94% job growth). Nevada's DETR regards this insight as one to watch, as it was the organization that provided the projection.

Manufacturing Industry Associations in Nevada

  • We were able to find a total of four, existent manufacturing industry associations in Nevada.
  • While we found mention of a fifth (Western Manufacturing Alliance), we couldn't find any website or current information about it (other than the 2016 article that mentioned it), which is why we didn't include below. The following statement was provided in a June 2016 article about that association: "[T]he Northern Nevada Development Authority and the Economic Development Authority of Western Nevada announced the formation of the Western Manufacturing Alliance (WMA), an alliance of manufacturers, for manufacturers, and led by manufacturers to support next generation manufacturing."

1. Nevada Manufacturers Association

  • This link is to the Association's website.
  • The Association was founded in 1980.
  • The Association has 250 members.
  • The following is the mission of the Association: "Our mission is to promote and maintain a business climate that’s favorable to manufacturing in the state. NMA is dedicated to ensuring that Nevada’s manufacturing industry can remain economically competitive with other states and in the international marketplace. The association works on behalf of the state’s manufacturers to grow the sector, advocate for manufacturer-friendly business policies in the state, educate Nevadans and our government officials about the important role manufacturing plays in the economy, and contribute to the economic growth of the state."

2. Association of Gaming Equipment Manufacturers

  • This link is to the Association's website.
  • The following is the scope and mandate of the Association: "The Association of Gaming Equipment Manufacturers (AGEM) in Las Vegas is a non-profit international trade association representing manufacturers and suppliers of electronic gaming devices, lotteries, systems, table games, key components and support products and services for the gaming industry. AGEM works to further the interests of gaming equipment suppliers throughout the world."
  • The Association has "175 member companies based in 23 countries."
  • We couldn't find the year the Association was established, after checking the Association's website, looking for its Linkedin page because year founded is routinely provided there by companies (we didn't find any such Linkedin page), and by checking databases such as Crunchbase and Zoom Info, but that information wasn't provided there either.

3. Nevada Industry Excellence

  • This link is to the organization's website.
  • Nevada Industry Excellence "is a non-profit organization connected through a national network of manufacturers. As a NIST MEP approved Center, NVIE is the official representative of the MEP National Network in Nevada."
  • The organization's mission is "[t]o deliver comprehensive, proven solutions, fueling growth and advancing Nevada industry."
  • The organization was established in 1995.
  • The organization is not member-based, so the number of members was not provided.

4. Association for Manufacturing Excellence (Western Region)

  • Though the Association is national, Nevada is one of the states included in the Association's Western Region.
  • The Association's vision is to lead "[a] manufacturing renaissance driven by people-centric leadership coupled with enterprise excellence."
  • The Association's mission is "[t]o inspire a commitment to enterprise excellence through experiential learning by bringing people together to share, learn and grow."
  • The Association was established in 1985.
  • The Association has 4,000 members.

Research Strategy

We looked for five, existent manufacturing associations in Nevada by using three research approaches. First, we looked for any articles that might have provided that information, in sources such as Nevada Appeal. Second, we checked pre-compiled lists of associations within Nevada in sources such as the Reno-Sparks Chamber of Commerce. Third, we looked for such associations through Linkedin. Through those three approaches, we were able to find a total of four, existent associations, but not a fifth.
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