county of santa clara planning department - 1967 - a study of the economy of santa clara county,...

8/12/2019 County of Santa Clara Planning Department - 1967 - A Study of the Economy of Santa Clara County, California P

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A STUDY OF THE ECONOMY OFSANTA CLARA COUNTY CALIFORNIAPART

COUNTY OF SANTA CLARA PLANNING DEPARTMENT 0 WEST HEDDING STREET AN JOSE CALIFORNIA 95110


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A STUDY OF THE ECONOMY OFSANTA CLARA COUNTY CALIFORNIAPART

COUNTY OF SANTA CLARA PLANNING DEPARTMENT 0 WEST HEDDING STREET AN JOSE CALIFORNIA 95110


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TABLE OF CONTENTS

UCBII

PARTINTRODU TION

LOCATIONANDSETTING...........................Regional Location and SettingClimateSoils

III. HISTORIC CHANGES IN SANTA CLARA COUNTYA Economic Periods in Santa Clara County: Past .....

1 Hides and Tallow Era: Pre-18502 Hay and Grain Era: 1850-18703 Fruits and Vegetables Era: 1870-19404 Modern Era: Post 1940

B he Present Period 1 1950-19602 1960-Electronics in Santa Clara County 1 Origins2 Patterns of Growth in the Electronics Complex3 Aerospace Electrical Machinery/Ordnance Instruments

IV THE SANTA CLARA COUNTY ECONOMY: 1967A External actorsB Export ector

1 Agriculture2 Canning and Preserving3 Impact of Electronics and Research-Based Manufacturi4 Nondurables5 Research and Development6 Federal Government7 Education

C. Personal ncomeD Investment

1 Residential onstruction2 Nonresidential Construction3 Government Investment

E PopulationF Local erving ector

1 Transportation/Communication/Public Utilities2 Retail Trade3 Finance/Insurance/Real Estate4 Services5 Government6 Construction

G. Interindustry ector1 Durables2 Nondurables3 Wholesale Trade

PART 2I SUMMARY AND FINDINGSII EMPLOYMENT FORECASTSIII POPULATION FORECASTS


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LIST OF T BLESPage

II-A OUNTYWIDE LAND USE INVENTORY, SANTA CLARA COUNTY: 1965 ......................................Il-B OIL CLASSIFICATION: SANTA CLARA COUNTY.............................................................Ill-A TOTAL BEARING ACREAGES OF SELECTED FRUIT AND NUT CROPS: SANTA CLARA COUNTY: 1940 AND 1966Ill-B GRICULTURAL ACREAGE OF SANTA CLARA COUNTY FOR THE YEARS 1951, 1956, 1961, AND 1966.............. 7Ill-C GRICULTURAL INCOME FOR SANTA CLARA COUNTY FOR THE YEARS 1951, 1956, 1961, AND 1966 .............. 7III-D ANTA CLARA COUNTY POPULATION: 1860-1966...........................................................III-E ANTA CLARA COUNTY AVERAGE ANNUAL EMPLOYMENT: 1940-1967......................................... 10Ill-F ESTIMATED NUMBER OF WAGE AND SALARY WORKERS IN AEROSPACE INDUSTRIES, STATE OF CALIFORNIAAND SANTA CLARA COUNTY: 1949-1966................................................................... 1III-G OMPONENTS OF POPULATION INCREASE ANTA CLARA COUNTY: 1950-1967.............................. 11IV-A XPORT EMPLOYMENT-SANTA CLARA COUNTY: 1949, 1955, 1960, 1965 ..................................... 19IV-B FOOD AND KINDRED PRODUCTS AND CANNING AND PRESERVING EMPLOYMENT AND DISTRIBUTION OFEMPLOYMENT, SANTA CLARA COUNTY AND SAN FRANCISCO BAY AREA, 1949, 1958, 1966..................... 20IV-C EMPLOYMENT, PERCENT CHANGES IN FOOD PROCESSING EMPLOYMENT FOR SANTA CLARA COUNTY,

SELECTED CALIFORNIA SMSA S, CALIFORNIA, THE UNITED STATES: 1958-1964 ............................... 20IV-D AEROSPACE EMPLOYMENT IN SANTA CLARA COUNTY, SELECTED SMSAS, CALIFORNIA 1949,1957,1963,1965 ... 21IV-E NONDURABLE EMPLOYMENT IN SANTA CLARA COUNTY, SELECTED SMSAS, CALIFORNIA: 1950, 1955, 1960, 1964.. 21IV-F NONDURABLE EMPLOYMENT AS A PERCENT OF TOTAL INDIVIDUAL JURISDICTION EMPLOYMENT FOR SANTACLARA COUNTY, SELECTED CALIFORNIA SMSAS, CALIFORNIA: 1950, 1955, 1960, 1964......................... 22IV-G TOTAL PERSONAL INCOME FOR SANTA CLARA COUNTY, SELECTED CALIFORNIA COUNTIES, AND CALIFORNIA1950, 1955, 1960, 1964.................................................................................... 3IV-H TOTAL NUMBER OF INCOME RETURNS 10,000 TO 14,999, SANTA CLARA, ALAMEDA, AND SAN FRANCISCOCOUNTES 1954 AND1963 ............................................................................... 4IV 1 UMBER OF RETURNS 15,000 AND OVER FOR SANTA CLARA, ALAMEDA, AND SAN FRANCISCO COUNTIES,AND PERCENT OF BAY AREA FOR EACH: 1955-1964 ........................................................ 24IV-J PERCENTAGE OF HOUSEHOLDS HAVING NET CASH INCOMES 10,000 AND OVER FOR SANTA CLARA COUNTY

AND SELECTED CALIFORNIA SMSA S: 1961 AND 1966 ....................................................... 24IV-K PER CAPITA PERSONAL INCOME FOR SANTA CLARA COUNTY, SELECTED CALIFORNIA COUNTIES ANDCALIFORNIA: 1950, 1955, 1960, 1964 ....................................................................... 4IV-L OTAL AND PER CAPITA PERSONAL INCOME, SANTA CLARA COUNTY: 1950-1964.............................. 24IV-M COMPONENTS OF PERSONAL INCOME AND PERCENT DISTRIBUTION OF COMPONENTS OF PERSONAL INCOME,SANTA CLARA COUNTY: 1950, 1955, 1960, 1964 ............................................................. 5IV-N A COMPARISON BETWEEN MEDIAN FAMILY INCOME AND HOUSEHOLD INCOME, SANTA CLARA COUNTY,CITIES IN SANTA CLARA COUNTY, SAN FRANCISCO-OAKLAND SMSA, CALIFORNIA AND THE UNITED STATES:1959 AND1965 .......................................................................................... 5IV-0 TOTAL NEW DWELLING UNITS AUTHORIZED BY BUILDING PERMITS, BY TYPE OF STRUCTURE, SANTA CLARACOUNTY 1950-1966...................................................................................... 7IV-P TOTAL RESIDENTIAL BUILDING AUTHORIZED BY BUILDING PERMIT FOR SANTA CLARA COUNTY AND SELECTEDCALIFORNASMSAS 1950-1966.......................................................................... 7IV-0 NUMBER AND VALUE OF NONRESIDENTIAL, INDUSTRIAL, OFFICE, AND STORE BUILDING AUTHORIZED BYBUILDING PERMIT FOR SANTA CLARA COUNTY: 1955-1966................................................. 28IV-R NUMBER AND VALUE OF NONRESIDENTIAL INDUSTRIAL, OFFICE, AND STORE BUILDING AUTHORIZED BY

BUILDING PERMITS FOR NINE COUNTY SAN FRANCISCO BAY AREA: 1955-1966 ............ .................. 28IV-S TOTAL PUBLIC CONSTRUCTION AND MAINTENANCE EXPENDITURES FOR HIGHWAYS, ROADS, AND STREETSFOR SANTA CLARA COUNTY, SELECTED CALIFORNIA COUNTIES, AND CALIFORNIA: 1960-1964.................. 28IV-T COMPONENTS OF YEARLY POPULATION INCREASE SANTA CLARA COUNTY: 1950-1967........................ 30IV-U RACE POPULATION AND PERCENT DISTRIBUTION OF WHITE, NEGRO, AND OTHERS, SANTA CLARA COUNTY:1960 AND1966.......................................................................................... 0IV-V LABOR FORCE STATUS OF THE POPULATION, SANTA CLARA COUNTY: APRIL 1, 1966......................... 30lV-W AGE, SEX PYRAMID OF POPULATION AND PERCENT OF POPULATION OF SANTA CLARA COUNTY, APRIL 1, 1966.. 31lV-X NUMBER OF HOUSEHOLDS BY INCOME OF HOUSEHOLD AND PERCENT DISTRIBUTION OF TOTAL REPORTINGHOUSEHOLDS, SANTA CLARA COUNTY: APRIL 1, 1966...................................................... 32IV-Y SELECTED EDUCATIONAL STATISTICS, SANTA CLARA COUNTY, SELECTED CALIFORNIA COUNTIES, CALIFORNIAANDTHEUNTEDSTATES 1960.......................................................................... 2IV-Z POPULATION OF SANTA CLARA COUNTY, SELECTED CALIFORNIA COUNTIES, AND CALIFORNIA: 1950, 1955,1960, 1965 .............................................................................................. 32IV-AA LOCAL SERVING EMPLOYMENT IN SANTA CLARA COUNTY, BY TYPE INDUSTRY, 1949, 1955, 1960, 1965 ......... 33IV-BB TRANSPORTATION, COMMUNICATION, AND PUBLIC UTILITIES EMPLOYMENT FOR SANTA CLARA COUNTY,

SELECTED CALIFORNIA SMSA S, AND CALIFORNIA: 1950, 1955, 1960, 1965 ..................................... 34IV-CC NUMBER OF RETAIL EMPLOYEES SANTA CLARA COUNTY, MAJOR CALIFORNIA SMSAS, AND CALIFORNIA:1958AND1963.......................................................................................... 5IV-DD NUMBER OF RETAIL ESTABLISHMENTS, SANTA CLARA COUNTY, SELECTED CALIFORNIA SMSAS, ANDCALIFORNA 1958AND1963.............................................................................. 35IV-EE RETAIL SALES: SANTA CLARA COUNTY, SELECTED CALIFORNIA SMSAS, AND CALIFORNIA: 1958 AND 1963 ...... 35IV-FF FINANCE, INSURANCE, REAL ESTATE EMPLOYMENT SANTA CLARA COUNTY, SELECTED CALIFORNIA SMSAS,AND CALIFORNIA: 1950, 1955, 1960, 1965 ................................................................... 5IV-GG SERVICES EMPLOYMENT FOR SANTA CLARA COUNTY, SELECTED CALIFORNIA SMSAS, AND CALIFORNIA:1950, 1955, 1960, 1965 .................................................................................... 5IV-HH GOVERNMENT EMPLOYMENT SANTA CLARA COUNTY, SELECTED CALIFORNIA SMSAS, AND CALIFORNIA:1950, 1955, 1960, 1965 .................................................................................... 5IV-11 CONSTRUCTION EMPLOYMENT FOR SANTA CLARA COUNTY, SELECTED CALIFORNIA SMSAS, AND CALIFORNIA:1950 955 960 965 ................................................................................... 5IV-JJ INTERINDUSTRY EMPLOYMENT FOR SANTA CLARA COUNTY: 1949, 1955, 1960, 1965.......................... 36IV-KI( PERCENT DISTRIBUTION OF SALES BY INDUSTRY, TO LOCAL FIRMS, SANTA CLARA COUNTY: 1954, 1958, 1960, 1961 36IV-LL SUMMARY TABLE: EXPORT, LOCAL SERVING, INTERINDUSTRY, AND TOTAL EMPLOYMENT, SANTA CLARACOUNTY 1949, 1955, 1960, 1965.......................................................................... 6

II .


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CH PTER

INTRODU TION

The first step toward meeting the public problems of anarea is a detailed knowledge of its economic base. Knowl-edge about the economic base is essential to sound publicdecisions in the form of master plans zoning ordinancestransportation plans renewal programs and other publicimprovement plans. Public policy towards taxation distri-bution of municipal costs and municipal borrowing shouldtake such information into account. Private investmentplans call for knowledge of the market prospects in theregion.

Committee For Economic DevelopmentGuiding Metropolitan Growth

Study of the Economy of Santa Clara County will describeand explain the nature of the county economy. It will identifythe basic sources of employment and income and will pro-vide an understanding of the source and level of employmentand income in the community. The primary objective of thisstudy is to develop information and an understanding of thenature of the economy which will help the local communityto solve local problems, make better decisions about mattersthat will enlarge economic opportunities for its citizens,improve their welfare and make it possible for them toincrease their contributions to national growth.The proper starting point is the realization that a communityis a place for earning a living. Population settles or expandsprimarily because of job opportunities. Private investmentoccurs because of income-earning opportunities. The dailymovement of people is largely a result of job requirements.The development of public capital improvements and servicesoccurs to a considerable extent to assist the economicactivities of the area. Hence, the destiny of an urban centeris controlled by the extent and character of its productive orincome-producing activity and by its general vitality. Studiesof the economic basis for this activity hold the key to under-standing how the region has developed, where it is today andwhat its future prospects are. Stated another way, most metro-politan areas flourish because they serve as centers for theproduction and distribution of goods and services. Productionand distribution functions create jobs, and employment oppor-tunities attract people. Viewed in these terms, the urbaneconomy thus conditions the amount of land developmentthat occurs. For example, an expanding economy with theimplications it holds for new businesses and industries andpopulation growth means more land going into use. Similarly,economic forces that are responsible for leveling off or

declining trends in economic activity also exert influences onthe pattern of urban land uses in the city.Finally, the general vitality of the economy is customarilydescribed in terms of such factors as stability, balance,worker productivity, and quality of economic leadership.Stability refers to capacity of the economy both to weatherthe business cycle over the years and to absorb the seasonalbusiness changes in any single year. Balance is usuallyexpressed in terms of diversification in productive activity,and productivity refers to output per worker at prevailingwage levels for the prevailing standard work week.

Study of the Economy of Santa Clara County will not pro-vide any answers. It will merely provide the background andunderstanding necessary to begin considering these questions.The study is in two parts. Part I, the present report, coversthe basic background of the county s economy. It includesthe location and setting of the economy, the historic changesin the economy and the present structure of the localeconomy.Part 2, which will be published next spring, will cover thefuture of the county s economy. It will include employmentand population forecasts as well as analyses of these fore-casts.Santa Clara County and San Jose SMSA (Standard Metro-politan Statistical Area) are one and the same. The descrip-tion and analysis of Santa Clara County, therefore, will beusing both SMSA and county data. When the county is com-pared with other areas, this may be SMSA or county com-parisons. The map on page 2 lists the major CaliforniaSMSA s and the counties making up these SMSA s.


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ST TE OF C LIFORNI

SACRAMENTO

SAN FRANCISCOOAKLAND

SAN JOSE

SAN BERNARRIVERSIDE/ONTARI

BAKERSFIELD

SANTA BARBARA

LOS ANGELES LONG BEACH

ANAHEIM SANTA ANA GARDEN GROVE4.

SAN DIEGO

MCXSTANDARD METROPOLITAN STATISTICAL AREAS AS OF OCTOBER 1967


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CHAPTER IILOCATION AND SETTING

m il es .

he Diablo

to Coyote Narrows where the

277,482zed. The following is a listing of the acreage by major land

1965 Land Use Inventory.TABLE II A

COUNTYWIDE LAND USE INVENTORYSANTA CLARA COUNTY: 1965

LAND USES ACREAGETotal County 846 426

Urban Developed 97 957Residential 46,012

Industrial Nonmanufactu ring 2,143Industrial Manufacturing 3,731

Transportation, Communication,Utilities i.e., treets) 30,737Commercial (retail, personal,and business services) 4,014

Public and quasi-public buildings and uses 11,320Clara County Planning Department

According to the measurements made for the Land Use Inventory,of the County is 1,327 square miles. The figure used by theU.S. Bureau of the Census is 1,312 square miles while other measure-e by the County Planning Department have put the County st 1,308 to 1,310 square miles. As no controlled maps are avail-he County, the discrepancy between the Land Use Inventoryal (which was derived from measurements made from assessor sbook maps) and other sources is easily understood. Since the dis-ess than two percent of the total area of the county, theand Use Inventory total is acceptable for the purpose of the inven-tory. Much of the discrepancy can be accounted for by parcels inuntainous area of the county for which property description t is conflicting ndbound ries m ybe overl ppingor not

REGIONAL LOCATION AND SETTINGNeighboring Counties include San Mateo on the northwest,Santa Cruz on the west, San Benito on the south, Merced andStanislaus on the east, and Alameda on the northwest. (SeeFigure lI-i.) The regional relationship of the county with somef the major urban areas can also be seen in Figure lI-i. Sanose is 50 miles south of San Francisco and 42 miles southf Oakland, the major cities of the nine county San Francisco

Bay Area.

CLIM TEThe latitude, surrounding mountains, and proximity to thePacific Ocean give to the area mild and equable weather.The eastern Diablo Range protects the valley in summer fromthe hot, dry air of the Central Valley while the western SantaCruz Mountains shield the valley from the wind and fog ofthe Pacific Ocean,Air movement is markedly influenced by the orientation of thevalley. Wind flow is from the northwest about 35 percent ofthe time. Wind speeds are generally light, with the averagevelocity ranging from a low value of 5.4 miles per hour inNovember to 7.4 miles per hour in June. Damaging highwinds are rare.Temperatures remain mild throughout the year. During July,the warmest month, mean daily maximum is only 81 degrees.There are but 16 days per year, on the average, with maximumreading of 90 degrees or higher. On the other hand, January,the coldest month, has minimum readings averaging warmerthan 40 degrees. In an average year, there are only five dayswith minimums of 32 degrees or colder.Contributing to the mildness of the climate is the moderaterelative humidity. Readings at 5 p.m. range from the upper60s in December and January to the lower 50s from Maythrough September. Customarily, the warmest days of summerare accompanied by unusually low humidity.The valley distribution of rainfall is like the rest of Californiawet winters and dry summers. About 91 percent of the yearsrainfall occurs from November through April.The favorable climate has fostered the rich fruit and vegetableindustry centered in the San Jose area. This climate, how-ever, is also attractive for human settlement and more recentlyfor industry as well. These geographical factors also bringabout atmospheric pollution from industrial and automotivesources.SOILSOf a total of 491,446 acres surveyed , 4 over 130,000 were clas-sified as Grades I and II soils. Grade I are those soils with arating between 80 and 100 percent and suitable for a widerange of crops, such as alfalfa, orchard, truck and field Crops.Grade II are those soils with a rating between 60 and 79 per-cent. The rating is based on the relative ability of the soil toproduce cropshe more nearly it can produce a variety ofcrops, the more nearly it will rate 100 percent.

TABLE Il BSOIL CLASSIFICATION SANTA CLARA COUNTY

SOIL CLASSIFICATION ACREAGEGrade I: Excellent (80-100 ) 7,590

Grade II: Good (60-79 ) 6,849Grade Ill: Fair (40-59 ) 6,401

Grade IV: Poor (20-39 ) 1,087Grade V: Very Poor (10-19 ) 36,040

Grade VI: Nonagricultural (below 10 ) 3,479Total Acreage Surveyed 91,446

Source: Soils of Santa Clara County, California, Walter W Weir andR. Earl Stone, University of California. (Feb. 1947)These acreages, compiled under the Stone Method, closely approxi-mate the acreages recently compiled by the U.S. Department of Agri-culture, Soil Conservation Service which used the Land CapabilityMethod. The new soil classification report will be available in mid 1968.

U.S. Department of Commerce, Bureau of the Census. Area Measurement Reports, Areas of California: 1960, (GE-20, No. 6), Washington, D.C. 20402,March 1965,) p.11his is an increase of over 15 percent from the 84,555 acres reported urbanized in the 1962 Land Use Inventory. It is estimated that approximately5.000 acres are urbanized annually.The nine counties are: Alameda, Contra costa, Mann, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma. The Bay Area SMSA sare: San Francisco-Oakland (Alameda, Contra Costa, Mann, San Francisco and San Mateo Counties); San Jose (Santa Clara County); Santa Rosa(Sonoma county); and Vallejo-Napa (Solano and Napa Counties).Weir, Walter W and Stone. R. Earl, Soils of Santa Clara County, California (University of California, College of Agriculture. Berkeley, California.February 1947), p.3 . The portion of the county omitted from the survey is about 41 percent of the total area. This consists almost, if not entirely, ofmountainous land ranging from 2,000 to 4,000 or more feet in elevation and comprising of brush and grass covered range and pasture.


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COUNTY OF S NT CL R

Santa Clara County contains an area of 839 680 acresone third of which is relatively flat with few topographicbarriers. The remainder is rough terrain - the DiabloRange on the right and the Santa Cruz Mountains onthe left.


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CH PTER IIIHISTORIC CHANGES IN THE ECONOMY OF SANTA CLARA COUNTY

A Economic Eras in Santa Clara County: Past

rancisco Bay by the Spaniard, Portola, in 1769, and the

the establishment of the first settlement in theaborated in a grand scheme for the establishment of presidiosmilitary garrisons) and missions to reach from San Diego to

Mission

risons. Hence, El Pueblo de San Jose de Guadalupehewas founded on

ovember 29, 1777, not far from the mission of Santa Clara.in California. This pueblo was to satisfy the needs of theresidios and missions in the valley, in San Francicso and in

Monterey. Each of the original 14 families in the San Josepueblo was given certain supplies and land by the Spanishovernment.

lands for grazing were conceded, inaugurating the system ofprivate land grants known as ranchos .

conomic development of the Santa Clara Valley. Prior to theoming of the Spaniards, most of the valley was occupied by

Costanoan Indians who comparatively were in the stone agetage of cultural development. They lived in grass hut villages

containing 100 to 500 inhabitants. These villages usuallybordered stream courses. The Indians subsisted on wild grassseeds, acorns, shellfish, fish, and small game.he Spaniards brought agriculture into the valley and provided

the beginnings of the very important agricultural and cattleand later agribusiness sectors of the valleys economy. Thefruits and garden crops introduced by the Spaniards in themissions and pueblos and raised under irrigation adaptedeasily for they were the kind that had grown for centuriesunder similar climatic conditions in the Iberian Peninsula.he system of ranchos which usually contained a combin-

ation of upland and valley pastures capable of supplyingater and of supporting grazing throughout the year pro-ided the origins of the cattle and later the dairy industries.he cattle supplied hides and tallow for an active trade

partially carried on by New England sea captains - a tradewhich played a role in the establishment of Boston as agreat shoe manufacturing center.However, from the founding of the local mission and puebloby the Spaniards in the 1770s to the 1820s when Mexicoestablished independence from Spain and Santa Clara Valleycame under the rule of the Mexican Republic, the Valleygrew slowly and production was low. Despite the grand planfor viable regions and regional self-sufficiency, the missionand pueblo settlement produced little more than enough fortheir own use. Under the Spanish monopolistic rule, thesettlers could trade only with government agents who set lowprices for the produce they wished to buy and high for thatthey wished to sell to the settlers.Under Mexican rule, the valley showed a marked increase inproduction. Restrictions on trade with foreign ships were re-laxed and even when retained were enforced so loosely thattrade grew rapidly. Hides and tallow were easiest to ship andsince an abundance of natural range land which made thegrazing of cattle easy was available and since the system ofthe rancho had been instituted by the Spaniards and greatlyexpanded by the Mexican government, the economic life ofthe valley began to center around the cattle industry. Thecattle from these ranchos and from the pueblo and from themission were allowed to roam and forage freely throughoutthe vast acreages. After periodic slaughterings, the hides andtallow were taken to a port or embarcadero on the Bay,and exchanged for manufactured goods from other sectionsof the country. This port - Embarcadero de Santa Clara andlater Alviso - in time became a major port.Steam navigation had begun in 1849 with the old convertedvessel, the Sacramento plying between Alviso, the embarca-dero on the Guadalupe River, and San Francisco. In thespring of 1853, the Santa Clara County Board of Supervisorshad designated several roads in the county as public high-ways and provided public funds for the construction andmaintenance. Several of these led to Alviso to provide accessto the port.In 1860, work was begun on the new railroad line betweenSan Francisco and San Jose. It was completed January 16,1864. This ended the passenger business of ship lines fromAlviso to San Francisco.During this period, the Santa Clara Valley became a self-sufficient economic region with agriculture supplying the localneeds of the scattered ranchers and military establishmentsand with a surplus of hides and tallow the export.The Spanish-Mexican period came to a close with the MexicanWar of 1846-7 and the cession of California to the UnitedStates. A rich legacy was passed on by the Spaniards -nomenclature, architecture, the hacienda or rancho systemof land ownership, the agricultural heritage, and the cattleeconomy.

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2. HAY AND GRAIN ERA: 1850 1870The cession of California to the United States in 1848 andthe discovery of gold in 1848 opened a new era in SantaClara Valley. Due to both a more lenient Mexican govern-ment (as contrasted with the Spanish prohibition of foreign-ers) and an extensive national campaign in the United Statesto encourage migration to California, Americans were be-ginning to come into the valley in great numbers and werebeginning to take a more dominant role in the developmentof the valley. With the discovery of gold, the occasionaltrading ships of the Mexican period wanting hides and tallowwere now filled with thousands of gold seekers demandingfood and other supplies.When food supplies for the gold seekers were sought in thevalley, only beef could be furnished in large quantities. Inspite of the emphasis which had been placed upon the cattleindustry, the supply was inadequate and large numbers ofcattle still had to be imported from other areas. The Cali-fornia stock was of poor quality; wild, lean, and yielding littlemilk. Nevertheless, the vast stock ranchos found an easymarket for beef for several years.Cattle raising soon gave way to wheat farming. As a resultof severe droughts in the state in the 1860s and the increaseddemand for food outside of the region, wheat farmingbonanza farmingbecame the dominant economic activity.

One of the most wonderful features of the grain trade isits growth and development on the Western Pacific Coast.California which but a few years ago since was entirelydependent upon western South America ports for a supplyof bread stuffs appears now on the records as a grainexporting state and almost every mail from the Pacificconveys intelligence of one or more ships loaded withwheat having sailed from San Francisco for Liverpool orLondon.

Much of this grain was grown in Santa Clara County. Farmersgrew wheat year after year because it was a stable com-modity in international trade, because it could be transportedlong distances without deterioration, and because it couldbenefit from low cost water transportation.By 1870, California was the second most important wheat-producing state in the United States and the Santa ClaraValley was one of the states leading wheat growing areas.Wheat was king for only a short time, however. By 1874, thepeak was reached with 1,701,000 bushels. The decline there-after was rapid although the production of barley continuedto increase until the turn of the century.While several factors were responsible for the decline, themost important was that farmers had learned it was moreprofitable to grow fruits and vegetables.Cattle raising during this period had been pushed into thehills and the industry was forced to change its methodsentirely. Since the open range was no longer general practice,forage crops were planted for cattle feed and feeding shedswere built. These methods have remained to the present.The cattle industry today is still in the eastern mountain areasfrom Mount Hamilton in the north, to Gilroy in the south. TheSanta Clara County Agricultural Commissioner reported 1966production of cattle and calves to amount to approximately27,300 head or 2,622,000. This production level has remainedfairly constant over the years and will probably remain soinasmuch as there is no immediate prospect for the urbani-zation of these mountain areas.D IRY INDUSTRYAs the Americans began to pay attention to bettering thebreed of their cattle, they also began to develop improvedmilk cows. The market for milk products in the middle 1800s

was expanding. By 1870, Gilroy had become the dairy ceof the county. By 1940, the county ranked 11th in the sfor the amount of milk produced.As of 1960, there were more than 176 dairies located invalley, with nine distributors and five producer-distribudoing an 8 million a year business. By 1966, there weredairies, 24 distributors and three producer-distributors wan approximate 5.1 million a year business. As of 1966,county still ranked 11th in the state for milk production.POULTRYAgain, because of a climate lacking in extremes of heat acold and because of the type of soil suitable for greens abecause of the nearby markets for poultry and poultry pducts, poultry raising was undertaken like the other agriture activities beginning in the middle 1800s. The UnStates Census first reported the number of poultry incounty in 1880. Since that time, poultry has become onethe leading products of the county with a return to the farmin 1945 of 4.2 million. In 1960, there were approxima1,000 ranchers engaged in the raising of poultry represena yearly income of more than 6 million. Gross valupoultry and poultry products produced in 1966 was apprmately 5.1 million.MINER L WE LTHThe mineral wealth of Santa Clara County except for quisilver has never been one of the dominating factors ineconomic development of the area. There are deposlimestone, stone, clay and quicksilver. Magnesite and peeum exist, but are of lesser value. Manganese, chromcopper, gold, and mineral waters also exist, but have beproduced in comparatively small quantities.Quicksilver came into prominence in the Gold Rush 185when it was discovered that it was useful in the procesamalgamating fine gold. The ore mine at New Almaden, proximately 10 miles south of San Jose was first discovein 1824 and has been in continuous production up to the of its re-exploration in 1952. The New Almaden payroll attime was the largest in the county. It has been the larproducer of quicksilver in North America and fourth largproducer in the world. The largest producer in the worthe Almaden Mine in Spain.The recorded mineral production of Santa Clara County 11950 inclusive is valued at 176.8 million. Quicksilver duction from mines in the vicinity of New Almaden accounfor approximately 31 percent of this estimate.

CEMENT PRODUCTIONCement production has been an important item since1930s and a large share of the remaining value of thecorded mineral production mentioned above can be attribto this commodity. Portland cement was first produced atPermanente plant near Monta Vista, largely for the ShaDam project in northern Sacramento Valley.Santa Clara County ranked 10th among the 58 countiethe State in value of mineral production during 1950. Mincommodities produced in that year amounted to 13.8 miFor that year, cement, limestone (shells), magnesite petroleum accounted for approximately 94 percent oftotal value.The 1965 Santa Clara County mineral production was appimately 34 millionabout 2 percent of the total state production. The valleys mineral industry consisted of: Clmercury, sand and gravel, stone, and cement. It is estimathat cement production accounted for 75 percent of county mineral output for 1965.


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s from San Jose to Niles where it connected with its

TABLE Ill-ATOTAL BEARING ACREAGES OF SELECTEDFRUIT AND NUT CROPS: SANTA CLARACOUNTY: 1940 AND 1966

1940Apricots 18,584Cherries 2,628Grapes 7,177

Pears 7 511Prunes 59,494

Walnuts 6,372lara county Agricultural commissioner

igation was introduced in 1875

lt became one of the

rune, which was to become synonymous with Santa Clara

eep alluvial soils, water, and a growing local market. Buts crop volume soared so did the cost of production. The

need for closer management resulted in the reduction in theize of land holdings. As a result, cetrain crops gained favor

among the farmers: prunes, pears, apricots, walnuts, andgrapes along with the growing of vegetables and seeds.

TABLE Ill-BAGRICULTURAL ACREAGE OF SANTA CLARACOUNTY FOR THE YEARS 1951 1956 1961AND 1966

BEARING ACRES 951 956 961 966Fruits/Nuts/Berries 5,062 5,984 64,100 0,728

Vegetables 7,195 5,746 15,050 5,632Source: Santa Clara county Agricultural commissioner

By 1930, 65 percent of the crop land was in orchards and thevalley had become world famous. Apricots and prunes weregaining dominance. Together they accounted for 48 percentof the crop land of the valley. Apricots accounted for 11 per-cent of the land in crops or 18,250 bearing acres. The bulkof the crop was canned and the remainder sold fresh or dried.There were 66,000 bearing acres of prunes. During this sameyear, 83 percent of the 4,791 farms in Santa Clara Valley wereraising prunes and the valley accounted for 42 percent of thestates total prune acreage. It was producing 55 percent ofthe worlds dried prunes. Pears, too, were important. Thiscrop was placed in the lower part of the valley, particularly inthe Agnew and Alviso areas because it was more resistantto frost.

CHERRIESSanta Clara County ranked second in 1958 to San JoaquinCounty in the State and ninth in the United States in acreageof cherry trees. The greatest cherry acreage in the countywas reached at about the turn of the century, after which thebearing acreage declined until about 1930. Santa ClaraCountys bearing cherry acreage in 1966 still ranked secondto San Joaquin Countys 6,990 acres. Cherry production in1966 in Santa Clara County amounted to approximately $3.2million.GRAPESThe county ranked eighth in 1958 in the State in acreage ofwine grapes. The county is one of the foremost in the Statein acreage of varieties used in the making of table wines (dryand natural sweet wines). Most of the acreage is in or nearthe hills in the southeastern, southern, and southwestern partsof the county. The county grape production acreage in 1966of 3,369 acres is below leading Fresno Countys 172,130 acres.For 1966, processed grapes production is estimated at $1.3million.

19667,245 PRICOTS1,965 n 1958, the U.S. Department of Agriculture reported that3,145 anta Clara County ranked first in the United States in apricot5,120 creage. As the above Table Ill-A indicates, the bearing acre-age of apricots had declined by over 60 percent between 194023,356 nd 1966. Apricot production in Santa Clara County in 19666,849 f approximately $4.8 million was still ranked first in the

State It accounted for 20 percent of total State apricotacreage.

TABLE Ill-CAGRICULTURAL INCOME FOR SANTA CLARA COUNTY FOR THE YEARS

1951 1956 1961 AND 1966CROPS 1951 1956 1961 1966

Fruits/Nuts/Berries $40,005,000 $37,468,000 $51,622,000 $28,599,000Vegetables 10,162,000 9,628,000 12,253,000 13,224,000

Livestock/ Poultry 28,650,000 15,667,000 23,475,000 14,493,000Field Crops/U.S. Pymnts/Apiary 1,213,000 2,616,000 2,270,000 1,596,000

Nursery Stock/Cut Flowers 3,448,000 11,629,000 8,648,000 13,832,000Total $83,478,000 $77,008,000 $98,268,000 $71,744,000

Source: Santa Clara county Agricultural Commissioner

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PE RSIn 1950, the county ranked second in the United States toYakima County, Washington, in number of bearing and non-bearing pear trees. The acreage of pears, especially of ship-ping varieties, in the county has been gradually increasingbecause of good markets. In 1966, Santa Clara County rankedthird in the state in the production of Bartlett pears and firstin the production of other types of pears. County productionfor both types of pears is estimated at approximately 3.5million for 1966.PRUNESFor many years, prunes had been the principal crop of thcounty. Nine-tenths of these prunes are of the French variety.Climate and soils are well suited to production of prunes,but because of unfavorable markets, the acreage has beendecreasing since 1930. Between 1940 and 1966, prune acreagedecreased by over 60 percent. 1966 Santa Clara Countyprune production estimated at 10.2 million still ranks thecounty first in the State.

1951 1 966The following Table Ill-B shows the decreasing acreagedevoted to fruits, nuts, and berries and to vegetables over amore recent period-1951-1966 for the Santa Clara Valley.There is the same decline in terms of income for the sametime period for fruits, nuts and berries. (See Table Ill-C). Forvegetables, however, there is a slight increaserom 10million in 1951 to 13 million in 1966. Income from livestockand poultry production declined by over 14 million between1951-1966, but increased by close to 10.5 million for nurserystock and cut flowers. Both nursery stock and cut flowersand vegetable crops require less acreage for higher yieldsand income. This is the current status and trend. As landvalues rise, those crops with greater yields and return willtend to supplant others with declining markets and others thatrequire more acreage for cultivation.

MANUFACTURINGThe first manufacturing in Santa Clara Valley was done inthe missions by the Indian neophytes who were taught by theFathers such skills as making shoes, fashioning agriculturalimplements, and working up the wool into blankets and coarsefabrics. The civilian settlers who could not make the articlesthey needed for their own use bought them from the mission,whose ample source of cheap labor gave them a virtualmonopoly over manufacturing.The tremendous and steady increase in population whichfollowed the gold rush resulted in demand for manufacturedproducts as well as for food, and many industries sprang upin the valley to satisfy this demand. By 1860 there were 47such establishments in the county. By 1870 this number hadalmost quadrupled, and by 1880 it had almost doubled again.

M NUF CTURING S N OUTGROWTH OF GRICULTUREThe industries in the county during the middle decades of thenineteenth century satisfied either a local need or were anoutgrowth of agriculture. Manufacturing of basic products forexport was handicapped by the lack of coal in California andthe high cost of importing such materials essential to manu-facturing. Basically because of this, the West never developedthe kind of manufacturing complex prevalent in the Eastand Midwest.

Manufacturing in the county expanded principally in the areaof canning and food proecssing and allied industries, i.those companies making machinery, cans, boxes, chemicafor use in handling food.The most important agricultural industries are the cannand packing of fruits and vegetables. Overproduction and thdifficulty of shipping fresh fruitparticularly prunes intduced in 1856stimulated drying in the early 1870s. Thecanning industry was initiated in 1871 with the canningsurplus peaches and pears.Many of those canneries established before 1900 in the SanClara Valley came to dominate both the California and tnational industry by the 1930s. Since then, the businewhich got its start in the valley, has been gradually locatiin other parts of the State.In 1875, the Golden Gate Packing Company was establishemainly to process peaches. Among early employees were twyoung men - Elmer C. Chase and Robert I. Bentley, destineto later become, respectively, president of Richmond-ChaCompany and head of California Packing Corporation.By 1920, there were 35 canneries operating in the Santa ClarValley. Between 1890-1920, numerous mergers were also creing larger, more diversified operations, capable of expandintheir production to meet the increased outputs of the orchardIncreased mechanization and improved techniques were alsintroduced. Government demands for canned goods duriWorld War I greatly increased the production of Santa ClaValley canneries and orchards. At the same time, many ports were cut off, such as tomato paste from Italy, causithe production of new canned products by the larger cannerieor the founding of new food processing firms. The valleduring this period became one of the most important cannincenters in the United States for fruits and vegetables.

LLIED GRICULTUR L INDUSTRIESAn important industry connected with agriculture is the manufacturnig of equipment for canneries and orchardsmachinery, cans, boxes, chemicals for use in the handliof food. For example, in 1883, John Bean invented a sprpump to save his 10-acre Los Gatos orchard from the scaIt was so successful that he soon set up a small factory its manufacture. The firm grew and formed in time the FoMachinery and Chemical Corporation (FMC).

4 MODERN ERA: POST 1940The California and the Santa Clara Valley economy habecome wholly integrated with the rest of the country b1925. From then on, Californias growth had to be supporteby other than the exploitation and processing of naturaresources which as a growth stimulus was largely exhausteby the 1920s. Growth subsequent to this period was accompanied by employment increases in other manufacturinindustries.But the growth was slow. California, reflecting the depresseeconomic conditions of the nation and the world, developslowly in the period 1930 to 1940. No single industry groudominated its manufacturing structure. Food processing antransportation equipment were the largest, but printing, lumbeand furniture, and the metals industry were also importaAs far as the State was concerned the decade of the thirticradled the development of the aircraft industry whose growthbeginning with the war effort in 1941 has been the singmost important stimulus in the States development.


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brupt end for the State and the county by World War II.he valley almost doubled between 1940

nd 1950 as the war and postwar boom increased employ-ment in the canneries and in such home-grown industriesas Food Machinery and Chemical Corporation (FMC). Thepopulation increased 115,600rom 174,900 in 1940 tonly 29,800.

TABLE III-DANTA CLARA COUNTY POPULATION: 1860-1966APRIL 1 EACH YEAR)

1860 11 900 1950 290,0001900 60,200 1960 642,3001930 145,000 1966 919,7001940 174,900 1967 966,000

Source: U.S. Census of Population Santa Clara County 1966 Specialsus and Santa Clara County Planning Department.

The State was a center for military activities for all branchesof the armed services. California ports were the major funnelsthrough which men and materials flowed into the PacificTheater. The food and fiber produced on California farmswas in demand. The States capacities for aircraft and shipproduction were utilized to the fullest, and supporting manu-facturing activities grew comparably.Santa Clara Countys agricultural and agriculturally-orientedindustries expanded in proportion. Whereas, industry duringthe preceding decade was a reflection of the agriculturaleconomy (food processing, shipment and distribution on theone hand and the manufacture of equipment for farms andcanneries on the other), industry now was broadened.EMERGENCE OF URBANIZATIONWith the end of the War in 1945, a significant trend wasevident: agriculture was declining and manufacturing andsuburban living was increasing.

In 1940, 23 percent (13,500) of the workers in the Countyearned their living from agri-business while most of thebalance owed their employment to the servicing of agri-business. With less than 8 percent (4,500) of total employ-ment in the manufacture of products not related to agriculture,the economy of the county rose or fell with the success orfailure of each years crops.After 1950, the countys economic base changed from anagricultural to a manufacturing economy. By 1951, manufac-turing had become the largest industry division in terms ofemployment. (See Table III-E).Radical changes were taking place in manufacturing. Im-proved production techniques and new types of industriesthat have eliminated or have reduced industrial nuisanceswere now moving away from predominantly industrial sec-tions of cities. Multistory mill-type buildings were giving wayto single and two story plants that allowed for efficient hori-zontal line production methods but which demanded largersites. These factors, along with the tremendous growth inpopulation in the valley, and along with the dominant role ofthe automobile, further stimulated the urbanization of thevalley. Between 1943 and 1960, over 330 new industrieslocated in the valley.Great numbers of workers who had come to the valley foremployment during the war and of servicemen who hadstopped enroute to the Pacific Theater were returning towork and live in the area. By 1945, enterprising subdividerswere purchasing and developing large tracts of level orchardland. Between 1944 and 1950, 490 separate subdivision de-velopments were approved.The proportion of urban dwellers in the population jumpedfrom 61.4 percent to 74.3 percent in the decade 1940-1950another indication of urbanization and industrial growth. In1945, the county had about 615 manufacturing plants.The valley orchards were affected by this growth. Many werelost to the building program which was providing for theinflux of new residents. By 1950, about 60 percent of theapricots, 40 percent of the pears, 100 percent of the peaches,and 60 percent of the tomatoes canned in the Santa ClaraValley were transported into the area.

B The Present Period

1950 1960The decade 1950-1960 marks the valleys most spectacularperiod of growth; highly diversified industry was causing thefast-growing population to spread out into the present frag-mented urban-suburban pattern. Beginning in 1950, largemanufacturing enterprises began moving into the county.General Electric and Sylvania had built plants in the early1950s. Varian Associates and Hewlett-Packard Co. had al-ready been established in the county by 1950. Ford, IBM,and Lockheed came in the middle 1950s. Macys and theEmporium were also established in the middle 1950s andwere established even before Lockheed.During the period 1950-1960, manufacturing employment roseto first place, trade slid from first to third, and services rosefrom third to second place. Agriculture was the only divisionwith an absolute drop in employment between 1950 and 1960,a decline which brought it down from fourth to sixth place.In 1960 durable goods manufacturing employed over 70,000

workers, approximately 23 percent of all employees. In 1950,there were only 9,000 workers in durable goods manufactur-ing 8 percent of all employed. During this period nondurable goods manufacturing grew slowly (from 13,000 in1950 to approximately 19,000 in 1960) while agriculture andfood processing, once the economic backbone of the county,dropped from 27,000 (25 percent of total employed) to 24,000(10 percent of total employed).Part of the stimulant to the growth in the fifties was theKorean Conflict which began in 1950. The American conven-tional forces were far from prepared to deal with the situationand a major military buildup began. Nationally, defense ex-penditures rose from $13.6 billion in 1949 to a peak of $49.3billion in 1953, i.e., from about 5 percent to 14 percent ofGross National Product. Statewide, as was the case withWorld War II, the economy was greatly stimulated. During theperiod from July 1950 through June 1954, military prime con-tract awards to California firms totaled nearly $13 billion orabout 14 percent of all such awards nationwide.


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TABLE III ESANTA CLARA COUNTY AVERAGE ANNUAL EMPLOYMENT: 1940 1967

19671940 1950 1955 1960 1965 1966 Estimated

Agriculture 9,400 16,200 15 600 11,100 8,400 7 700 7,000Contract Construction 4,700 9 400 13 500 17 800 20,000 19 500 18,500

Manufacturing 8,600 22,100 34,000 70,300 89,800 104,400 117,500Durables 3,000 9,000 17 500 51 600 68,400 82,600

Nondurables 5 600 13,100 16 500 18 700 21,400 21,800Food 4,100 10 900 12,400 12 700 13 300 13,300

Non-food 1 500 2,200 4,100 6 000 8 100 8,500Transportation Communication and Utilities 3,600 6,100 7 800 9 600 12 700 14,100 14,700

Trade 12 600 22,600 28,300 40,700 57,200 61,900 66,200Finance/Insurance/Real Estate 2,100 3,200 4,700 7 900 12,400 12 800 13,200

Service 13 600 18,300 24,300 43,200 68,600 73 700 79,000Government 5,100 11 700 16 000 26,800 43,400 49,000 53,200

Total 59,900 109,900 144 600 228,000 313,400 344,100 369,300Source: State Department of EmploymentSanta Clara County Planning Department

Again, as with World War II, California manufacturing indus-tries led the expansion. Between 1950 and 1953, manufactur-ing employment rose by 301,000 or 40 percent, while totalnonagricultural employment increased by 21 percent. Of thetotal increase in manufacturing employment, 268,000 workerswere accounted for by durable goods industries, this groupexpanding its labor force by 63 percent.For Santa Clara County, between 1950 and 1953 total employ-ment increased by 16.5 percent from 109,900 to 128,000; totalmanufacturing employment by 30.8 percent from 22,100 to28,900; durables employment by 52.2 percent from 9,000 to13 700.While employment in Californias shipyards expanded im-pressively in percentage terms, the shipbuilding industry wasnot, as had been the case in both world wars, a major con-tributor to employment growth in absolute numbers. On theother hand, the aircraft industry grew vigorously. From a post-war low of 79,000 in 1949, average annual employment in theindustry rose to 209,000 in 1953, a gain of 130,000 or 165percent.The end of active warfare in Korea did not have the sameimpact as the termination of World War II. While defenseexpenditures in 1954 fell off by about $8 billion, they remainedat a much higher level than was the case in the late 1940s.Moreover, in California, defense expenditures continued torise. The States aircraft industry recorded increases in aver-age annual employment through 1957, during which yearnearly 273,000 were employed.The major reason that Californias defense-oriented industrieswere not reduced in size by the cease-fire in Korea was therapidly developing revolution in weapons technology. Duringthe early fifties, research and development efforts necessaryto the creation of the modern ICBM force got seriously under-way. Californias aircraft industry pioneered in these efforts,and the State became the national center for such activities.In 1957 the startling Russian Sputnik launching brought abouta greatly broadened American concern with rockets andmissile technology and led to a significant nonmilitary spaceprogram. Already heavily committed to the military missileeffort, California also came to receive the largest share ofthe space contracts.

1960The new thrust in aerospace , as it has come to be calledinduced the rapid expansion of industries other than aircraproduction. The four manufacturing industries regarded asjointly comprising the areospace complex are: (1) aircraft andparts; (2) electrical machinery; (3) instruments; and (4) ordnance. While these industries are certainly not totally depen-dent upon DOD (Department of Defense) or NASA (NationalAeronautics and Space Administration) programs, the bulof their activities do lie in this direction.Of the four industries in the aerospace complex, the aircrafand parts sector is the only one not found in Santa ClaraCounty. The dominating sector in the county up to 1964 interms of employment was ordnance. It accounted for as muchas 10 percent of total county employment (1962) and grewfrom 1,300 employees in 1955 to approximately 27,000 in 1963.The electronics sector is beginning to dominate the aerospacecomplex. As of 1966 electronics employment accounts for ap-proximately 9.9 percent of total County employment and hasincreased from 2,700 in 1949 to close to 34,000 in 1966.The State and county picture has shown approximately thsame pattern. Statewide, the apogee of aerospace employment was reached in 1963, when the annual average reached510,000. Countywide, it was also 1963 with total aerospaceemployment at 51,000. During 1964, statewide employment inall four of the aerospace industries declined, the year-to-yearoverall decline totaling 28,000 workers. In the county, exceptfor electrical machinery manufacturing which continued toexpand, the picture was the same.The countys economy experienced a slowdown in populationgrowth and employment gains. Much of the slowdown wasdue to cutbacks in defense-space industry contracts. Where-as new businesses and industries accounted for much of thelocal expansion prior to 1960, most of the growth since 1960was derived from expansion of industries already here.Although the population had tripled from 291,000 in 1950 to883,000 in 1965, an average increase of 40,000 each year, therate of increase has been declining. In 1963 a peak of 58,000was reached. By 1966 this had dropped to 37,000. In 1963the 58,000 population gain came from 43,000 moving intthe county and from a natural increase of 15,000. In 1966the 37,000 gain was from a natural increase of 14,000 and anin-migration of only 23,000.

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TABLE Ill-FESTIMATED NUMBER OF WAGE AND SALARY WORKERS IN AEROSPACE INDUSTRIES

STATE OF CALIFORNIA AND SANTA CLARA COUNTY - 1949-1966CALIFORNIA 1949 1955 1960 1962 1963 1964 1965 1966

Total Aerospace 116,500 347 400 460,800 509,400 510,100 481,600 482 300 544 600Ordnance 400 24,200 68,900 96,800 102 000 98 600 92,600 96,100

Elec/Mach 22,300 75,600 174,100 213,600 209,100 191 800 195 000 224,700Aircraft/Parts 78,800 228,800 194 000 172,200 171 200 164 300 166,100 192,400

Instruments 10 100 18 800 23 800 26 800 27,800 26 600 28 600 31,400SANTA CLARA COUNTY

Total Aerospace 2,700 6,800 35 400 48 500 51,300 49,000 48 600 59 800Ordnance 300 17 900 26 000 26 900 24 300 22 000 24,300

Elec/Mach 2 700 5 400 16 800 21 600 23,400 23 500 25 200 33,800Aircraft/Parts

Instruments 700 900 1 000 1 200 1 400 1,700Source: tate of California Department of Industrial Relations, Aerospace Employment: California and Metropolitan reas 1949-65 January 967),

and Estimated Number of Wage and Salary Workers in Nonagricultural Establishments by Industry California 1966 March, 1967)

As with population, average annual employment tripled be-tween 1950 and 1965, from 110,000 to over 313,000 jobs. From1960 to 1965, new jobs each year averaged 17,000. But as withpopulation gain, the yearly growth in employment had slowedsince 1962 when 23,000 new jobs were created. In 1964, therewas a net gain of only 14,000 new jobs, 40 percent less thanthe peak year. In 1965, the net gain was 13,000.In 1966, however, the local economy resumed its upwardtrend which many feel was brought about by the broadenedVietnam conflict. The net gain in employment on an annualaverage basis between 1965 and 1966 was 30,700. For 1966-67, it is estimated that the net gain will be approximately25,000. Net in-migration for 1967 is estimated at 32,000, upfrom the 23,000 in 1966. Aerospace employment in the countyreached a new high in 1966: 59,800 (versus the previous highin 1963 of 51,300). And since 1964, new companies have againbeen a major source of employment growth.Much of this growth in the 1960s is due to the electronicsand aerospace industries. The same reasons explaining thedramatic industrial growth and urbanization in the 1940s and1950s apply here as well except for one additional factor:the availability of specific skills required in the electronicsand aerospace industries.The valleys labor force is extremely skilled, consisting of avery high proportion of trained engineers and scientists. Forexample, in the City of Palo Alto, more than 34 percent of

the adult men have completed four or more years of collegeor university, compared with the national average of 7 percent, and 21 percent of the women have degrees comparedwith 5 percent nationally. The ratio of engineers and scientiststo production personnel in the firms in the valley is unusuallyhigh pproximately three to one. These research-orientedand space industries, therefore, depend considerably on

brainpower . There are some facilities that do no manufac-turing at all - specializing only in research and development.Mr. Frederick E. Terman, Stanford University Provost and inter-nationally famed electronics expert stated: Industries thatwant to grow are beginning to learn that for activities involv-ing creative work, location near a center of brains hat is,near a university with a good graduate program in engineer-ing and science - is more important than location near rawmaterials, transportation, factory labor, or even markets.Thus, about 100 companies and laboratories with emphasison research have located in the Santa Clara Valley, with thegreatest concentration in the Palo Alto-Stanford Universityarea. Many electronics executives state that their firms movedinto the area to be near Stanford University and other com-panies in their common field. The overwhelming importanceof the electronics and defense industries is emphasized bythe fact that in 1965 the firms in these industries accountedfor 60 percent of the full-time manufacturing positions in thevalley or 54,000 out of a total of 90,000.

TABLE III-GCOMPONENTS OF POPULATION INCREASE - SANTA CLARA COUNTY: 1950-1967

POPULATIONAPRIL 1

YEAR EACH YEAR1950 291,0001955 416,0001960 642,0001961 693,0001962 737,0001963 795,0001964 843,0001965 883,0001966 920,0001967 966,000

Source: Santa Clara County Planning Department

TOTAL INCREASE ESTIMATED ESTIMATED NETFROM PREVIOUS YEAR NATURAL INCREASE IN MIGRATION

33,000 7 000 26,00058,000 12 000 46,00051,000 13 000 38,00044,000 14 000 30,00058,000 15,000 43,00048,000 15 000 33,00040,000 14 000 26,00037,000 14 000 23,00046,000 14 000 32,000

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The major employer dominating the growth in manufacturingemployment has been Lockheed Missiles and Space Com-.pany, builder of the Polaris and the Discoverer satellite seriesand engaged in other space and defense contracts. In theelectronics complex, there has been spectacular growth bymajor firms such as Varian, Hewlett-Packard, Sylvania, andFairchild, all firms employing more than 1,000 workers. In

addition, there are other companies operating in the growtsectors of the economy such as the Atomic Power EquipmeDepartment of General Electric, Philcos Western Development Laboratories, United Technology with contracts fsolid fuel rocket research, and the National Aeronautics anSpace Administrations (NASA) Ames Research CenterMoffett Field engaged in aerospace research.

ELECTRONICS IN S NT CL R COUNTYORIGINSThe explosive growth of electronics, research and develop-ment, and research-based manufacturing in Santa ClaraCounty in the past decade, actually has a longer history.Its beginnings go back half a century.The Federal Telegraph Company, which was located in PaloAlto and whose origins go back to a Stanford Universitygraduate who had set up the first operating radio-telephonestation on the West Coast in 1908, is the prototype of theclose interrelationship between industry, the university andthe entrepreneur in developing the science-based electronicscomplex in Santa Clara County. This is the type of environ-ment that made possible the scientist-entrepreneur whoactually played the central role in the development of thiscomplex he scientist-entrepreneur who developed and thenmanufactured and produced the newly developed products.The vacuum tube was developed by Federal Telegraph em-ployees in 1912. This discovery by three men, Lee deForest,Herbert Van Etten and Charles V. Logwood, is considered tohave been the birth of electronics in the valley. In 1931,Federal Telegraph moved to New Jersey and Charles V. Litton,who had designed the vacuum tubes for manufacture, re-mained and founded the Litton Engineering Laboratories. Thiswas the beginning of the Litton Industries which today is oneof the largest electronics firms in the United States.Organized electronics research and instruction at Stanfordbegan around 1924 in an attic above the office of one of theprofessors. This was designated merely as the communi-cations laboratory , and this bit of square footage evolvedand became the center of electronics research known aroundthe world. Here it was that Bill Hewlett developed theresistance-tuned oscillator that became the basis of theHewlett-Packard Company. This became the hangout ofothers such as Dave Packard, now President of Hewlett-Packard Company; Noel Eldred, President of Palo Alto Engi-neering Co., Myrl Stearns, Vice President of Varian Associ-ates; John Kaar, Vice President of Kaar Engineering; andNathan Hall, now Vice President of Hughes Aircraft, whostarted ionosphere work at Stanford.A second important area at Stanford was the physicscorner , where another key figure, Dr. William W. Hansen,carried on theoretical experiments in physics and encouragedthe Varian brothers in joint research with him. It was thisresearch that eventually led to the development of the kly-stron tube which laid the basis for the microwave radar usedduring World War II. It spawned Varian Associates and otherlocal firms giving the area world leadership in the develop-ment of microwave equipment and instruments.A new line of research at Stanfords Radio Propagation Labor-atory was begun in 1946 in the area of eletcronic communi-cation utilizing the stratosphere and ionosphere. WilliamShockley, the son of Professor William H. Shockley who wason the Mining and Meteorology faculty at Stanford in theearly 20s, working with a nine man team at the Bell TelephoneLaboratories, New Jersey, created by 1948 the theoreticalbasis for the transistor. After developing the transistor at BellLabs, he returned to the Palo Alto area and became connectedagain with Stanford. He subsequently set up his own com-pany - Shockley Semiconductor in Palo Alto, which laid

the basis for the transistor industry in Santa Clara CounShockley Semiconductor was in time acquired by BeckmaInstruments, Inc.The electronics industry by 1966, in terms of employmenhad become the dominant industry in the manufacturing secin the county, exceeding the ordnance complex. The industhad moved from the manufacture of the vacuum tube to thtransistor to the integrated circuit.Currently with 11 firms specializing in this new integratecircuit technology, Santa Clara Valley is producing more thahalf of the nations total output of ICs. The U.S. output approximately 150 million individual ICs a year. The 11 firmare: Fairchild Semiconductor, Raytheon SemiconductoAmelco, National Semiconductor, Stewart-Warner CorpPhilco-Ford Microelectronics Division, Signetics CorporatioSiliconix, Union Carbide, American Microcircuits Inc., ITSemiconductor.

P TTERNS OF GROWTH IN THE ELECTRONICS COMPLEThe patterns of growth and change in Santa Clara Valley industry since 1954 gives one the impression of ... kaleidscopic confusion, of ceaseless change, as well as of rapgrowth uring this period, firms merged and acquireone another, split off and spun off, were founded, disappearechanged their names and their line of activity.Several types of growth processes predominate: (1) the firsrelates to the growth of existing firms (e.g., Hewlett-PackardVarian Associates). The principal factor in this process is thpresence already in the area of the key men who founded thcompanies. (2) The second kind of growth process is thlocation here of facilities of firms whose headquarters arelsewhere. Examples of this are: Sylvania, Lockheed, PhilcoWestern Development Laboratories, and Kaiser Aerospacand Electronics Company. Significantly, a contributing factoin this process has been the educational-cultural attraction the area. The educational-cultural features of the area arespecially attractive to professional and managerial personnean important factor in recruiting scientists and engineers froother parts of the county. (3) The third category of growtprocess types is the establishment of research and researcbased manufacturing facilities by firms which were alreadlocated in the area but were not part of the science complexExamples are: FMCs Central Engineering Laboratory and thAtomic Power Equipment Department of General Electri(4) The fourth type is the creation of new companies througspin-offs from existing firms. An example of spin-offs is Faichild Semiconductor (Division of Fairchild Camera and Instrment Corporation), one of the leading manufacturers of semconductors and microcircuits in the country. It was formed bengineers who left Shockley Semiconductor Laboratory. Fachild, in turn, spawned a number of other companies in thearea, among them Melco, Signetics and General MicroElectronics. Another example is the formation of LevanthaElectronics Company (now called Energy Systems), SpectrPhysics, Inc. and Ultek Corporation, all by employees whresigned from Varian Associates. (5) Mergers and acquisitionExamples of a firm acquired by another are: Jennings Radiby International Telephone and Telegraph Company, ShockleSemiconductor by Beckman Instruments, Vidya by Itek

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Microwave Electronics by Teledyne. There is still anotherprocess that is not as noticeable. This is the tendency of firmsto do the B & D work in the valley and to do their manu-facturing elsewhere.IMPACT OF ELECTRONICS AND RESEARCH-BASEDMANUFACTURINGOne of the ways to determine the possible impact on theeconomy of the research and development and research-basedmanufacturing complex is an analysis of the level and com-position of employment other than research and research-based manufacturing in the area. The science complex couldhave a direct impact through its purchases of goods andservices, thereby increasing employment among supplyingfirms and inducing the location or the founding of new localsuppliers. Its employees have similar impacts through spend-ing their payrolls locally, affecting the volume and composi-tion of local productive and distributive activities. If theeconomic structure of Santa Clara County were to be dividedinto three sectors, viz., (1) defense-space, (2) agricultural pro-cessing, and (3) the residual economic activity, an impactanalysis in terms of these three sectors could be meaningful.The defense-space complex would include R & D, electricalmachinery equipment and supplies, and ordnance (missiles);the agricultural processing industry would include food pro-cessing, preserving and canning, container manufacturing,label printing, manufacturers of canning plant equipment andmachinery, warehouses, trucking, manufacturers of pipe andother irrigation and water conduit equipment, pumps for agri-cultural use, specialized agricultural machinery and equip-ment; and the residual economic activity would include othermanufacturing, trade, services serving local needs, and con-struction.Two approaches using employment data were used in ana-lyzing the nature of the economic structure of Santa ClaraCounty, viz., the shift analysis and the minimum require-ments approach.Shift AnalysisThe growth of a region can be analyzed from three points ofview. First, the growth can be compared with the nation - isthe local region growing at a faster rate than the nation? Thedifference between the regions growth rate and the nationaleconomys growth rate is known as the differential effect.Secondly, growth can be analyzed in terms of whether or notthere are in the local region more faster growing industriesthan slower growing industries. The difference between na-tional and local growth rates attributable to the difference inindustrial composition between the local region and thenation is known as the compositional shift. Thirdly, it can beanalyzed as well in terms of whether or not the individualindustries in the region are growing at a faster or slower ratethan the same industry nationally. The difference betweenthe local and national growth rates for each industry isknown as the competitive shift.Between 1954 and 1963, the compositional effect in SantaClara County was positive, but quite small - approximately

2,314 jobs. The competitive shift was very large, accountingfor 87 percent of the increase in employment. In that sametime period, total employment in Santa Clara County increased118.5 percent. In the United States as a whole, the increasewas only 13 percent.The shift analysis of the above-mentioned three sectors ofthe economic structure suggests: (1) the industrial complexcentered around the canning and preserving industry hasremained static in employment, with canning and preservingregistering a small loss when compared as a local industryto national industry statistics; (2) the residual economic ac-tivity (i.e., local market-oriented activities) registered gainson a local industry to national level basis. In both instances,the change in employment levels is a good deal less than thearea economy as a whole, whose phenomenal growth wasspearheaded by (3) ordnance and electrical machinery.Minimum RequirementsThe minimum requirements approach compares the employ ment structure in Santa Clara County with the structure ofother metropolitan areas in the same size class as a meansof evaluating growth patterns. This approach measures thestructure of employment in cities in a given size-class witheach industry expressed as a percent of total local employ ment, i.e.,

No Persons Employed in a Given Industry in the CityTotal No Persons Employed in the City

and the resulting ratio is compared with determined mini-mum necessary to supply a citys own population with goodsand services of the type produced in every normal city.This second approach therefore evaluates a growth patternin terms of self-sufficiency.

The conclusion is, first, that in 1960 the San Jose SMSAhad employment totals in most major industries linked tolocal markets which were below the minimum require-ments for those industries in a city of its size. Second,between 1950 and 1960 the San Jose SMSA retrogressedin this respect, i.e., a larger number of local industriesfailed to meet local requirements as measured by theirshare of total local employment and failed by a widermargin in 1960 than in 1950. San Jose became less ratherthan more self-sufficient as it more than doubled in popu-lation and employment between censuses. This outcomeis in sharp contrast to expectations based on the minimumrequirements approach, since without exception the largercity has a minimum requirement as high or higher in eachindustry than the smaller city.

Both approaches - the shift analysis and the minimumrequirements approach - taken together indicate that over-all county growth as measured by employment trends hascentered around the defense-space sector and that there isnta concommitant parallel growth in the third sector, residualeconomic activity (i.e., the countys economy is becomingincreasingly unbalanced ).

California took the oath of allegiance to Mexico on April 11, 1822.More than 400,000 tons of cargo presently pass through Alviso each year. 400,000 tons is the minimum required by the Army corps of Engineers forlisting of a port as a deep water port.Gordon, Clarence, Meat Production , Tenth Census of the United States: Report on the Production of Agriculture 1880), p.clviii.

4Department of Agriculture, County of Santa Clara, 1966 County of Santa Clara Agricultural Crop Report (70 West St. James St., San Jose, March 15,1967 , p. 15.Salmon, David W, The Metropolitan Area of Santa Clara County, California, Stanford University, (September 1946), p. 44.6County Department of Agriculture, op. cit., p. 17.ibid., p. 18.BState of California. Department of Natural Resources, California Journal of Mines and Geology, Vol. 50, No. 2, San Francisco, (April 1954) p. 327.State of California. Department of Conservation, Division of Mines and Geology Mineral Information Service (Vol. 20, No. 3), (Ferry Building, SanFrancisco, March 1967).The following sections on crop production is based on Soil Survey: Santa Clara Area California prepared by the U.S. Department of AgricultureSoil Conservation Service in cooperation with the California Agricultural Experiment Station (issued June 1958) and from the update of this reportby the Soil Conservation Service and from the Santa Clara County Agricultural Commissioner.The analysis of Electronics in Santa Clara County is drawn from a report prepared by Professor George T. Stewart, Jr.: Santa Clara County, Cali-fornia, A Study of the Local Impacts of Research and Research-based Manufacturing, prepared under contract (c.394) with the National ScienceFoundation, (The George Washington University, January, 1966).

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Pictured above is a portion of the 265 acre Valico Park in thecity of Cupertino. It embodies the theory that an industrial parkshould be highly restricted with special emphasis and attentiongiven to aesthetics and community compatibility and that itshould be developed according to a comprehensive plan.Under construction are expansion facilities for Palo Alto-basedVarian Associates upper left) and Valico Village ShoppingCenter lower left). The complex to the upper right is that ofthe John Leonard Dried Fruit Plant which has been and whichis still processing the fruit from the surrounding orchards.Single family dwellings surround the development and theorchard. To the right is a portion of the Interstate 280theJunipero Serra Freeway hich parallels the Bayshore Free-way and which connects the area with San Francisco and therest of the San Francisco Peninsula.Photo Courtesy of Valico Park

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CHAPTER IVTHE SANTA CLARA COUNTY ECONOMY: 1967

The preceding chapter focused on the historical growth andchanges in the Santa Clara County economy. The presentchapter discusses the current composition and structure ofthe local economy, concentrating on the sources and natureof growth. Comparisons of local patterns with other areasprovide insights into the characteristics and functioning ofthe local economy.

HOW A REGION GROWSIn looking at a small-area economy it is useful to distinguishbetween two kinds of economic activity - those which aregenerated by forces outside the local area basic activities)and those which are generated by demands and conditionswithin the local area (nonbasic or local market servingactivities). The most important basic activity consists offirms which serve markets outside the local region therebygenerating income and employment for local residents. Othernonlocal sources of basic income may also be importantto the economic well-being of the region. Income to residentsin the form of dividends, interest, pensions, gifts, rents, andprofits from nonlocal sources can have a substantial impacton development. A third way in which outside funds may

enter the local income stream is through local investmentsby outside agencies and firms. Federal and State governments,for example, spend revenues generated outside the region inconstruction of local facilities and improvements such asroads and highways, creating income and employment forlocal residents.Funds also leave the local income stream. Since small areascannot produce all the myriad goods and services demandedby their residents, many of these must be imported fromother areas. Regions, therefore, tend to specialize in theproduction of goods and services which they can producemost efficiently, in a sense, trading these for the goods andservices produced in other areas. In addition to purchase ofconsumer goods and services produced elsewhere, otherways in which income may leave the local economy includetax payments to State and Federal governments, outside purchases by local businesses, rent, dividend, or interest payments to nonresidents, and private saving and investmentoutside the region.

Thus we have a system where income flows from one regionto another as goods and services are traded, and over thelong run, these interregional flows tend to balance.

DIAGRAM IV A15


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As will be seen, industries whose major market is the FederalGovernment, and primarily the Department of Defense, cur-.rently comprise the most important basic activity in SantaClara County. Agriculture and food processing which onceprovided the largest source of exports have declined both inrelative and absolute importance in the county.Nonbasic activities, those which serve local market demands,also generate local income and employment. These activities,however, adapt to, rather than shape local economic con-ditions. The number of jobs in retail trade, for example, canbe related to the size and income level of the residentpopulation.In addition to expansion of the basic activities, the regionmay also grow by producing goods and services which wereformerly imported. This is what the economist calls importsubstitution. As a region grows and the local market expands,new businesses find the location attractive. A new firm maylocate in the county to supply inputs to another manufacturerthus reducing imports to the region while generating newincome and employment.Suggested in the previous discussion is the close relation-ship of population growth to economic growth within a region.Looking at population change as composed of two elements,

natural increase (excess of births over deaths) and migratioit is apparent that most of the increase in the county, ovthe last decade and a half, has been due to migration. As nejobs were created in the county, workers and their familiewere attracted to the area. This expanded the demand flocally produced goods and services, and created demanfor new housing units. Increased output by the local markeserving industries and increased residential investmenttheir turn generate new jobs creating a further impetus fin-migration.

The Santa Clara County economy, for purposes of this discussion, was divided into the following six sectors: (1) expo(2) personal income, (3) investment, (4) population, (5) locaserving, and 6) interindustry. Diagram IV-A describes threlationships between these sectors.Each of these sectors will be isolated and discussed in termof its interrelationships with other sectors. The nature antrend of economic events in each sector also will be dicussed and compared with other geographical areas. Tindustries making up each sector will be identified, and thmajor firms making up each of the industries also will bidentified.

A. EXTERNAL FACTORS

Diagram IV B6


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External factors, as shown in the overview Diagram IV-A, areoutside the structure of the Santa Clara County economy.External factors are events over which the local economy hasno control in the short run. In essence, these factors causeincome to flow into or out of the local economy. Such externalfactors would include the level of the national economy anddefense expenditures, the demand for exports from the area,national trends that cause some industries to grow fasterthan others, the amount of nonlocal government spending inthe area, the level of investment in the area, corporate de-cisions to locate locally or to expand local existing facilities,tax rates, credit conditions, etc.In this sense, then, changes and growth in the level of totaleconomic activity in a local area is, in large part, initiatedby these external forces. The local economy, in most instan-ces, will have no control over these external factors. Thelocal economy, for example, has no control over the level ofthe national economy and the demand for exports from thearea, or national trends that cause some industries to growfaster than others. In the longer run, however, the local com-

munity may influence the amount of nonlocal governmentspending in the area, the level of investments in the area,and corporate decisions to locate locally or to expand localexisting facilities.The ability of a region to grow in the long run depends, then,upon its ability to utilize the existing resources natural,human, and capital) and to increase the stock of theseresources. By doing this, the local economy is made moreattractive. A firm will want to locate here rather than anotherarea because of the climate, because of a skilled labor force,because of the transportation system, because of the university or school system, because of the tax structure, etc.External forces have a direct impact on the local economyby influencing (1) the level of exports, (2) the amount of per-sonal income to local residents, (3) the amount of local invest-ment, and (4) size and characteristics of the population. (SeeDiagram IV-B). The nature and extent of the impact will bediscussed in the following sections covering these foursectors.

B EXPORT SECTOR

As described earlier, this sector is sensitive to nonlocalmarket conditions. An example is the production of integratedcircuits. These microscopic instruments are used by themillions in computers, missiles, space satellites, and otherelectronic systems. The production of these instruments repre-sents the fastest growing market in electronics, already oneof the fastest growing industries in the county. Santa ClaraCounty, with 11 firms specializing in this new technology, ispresently producing more than half of the nations total output(approximately 150 million individual ICs integrated circuitsyear). It has been estimated that the nation will need aboutbillion of these ICs a year by 1970. The demand for inte-grated circuits and the technological advances that broughtabout this demand (their use in computers, missiles, spacesatellites) are both external to the local economy, but thelocal impact is considerable. The greater the demand fromthese external markets, the greater the number of jobs cre-ated; the more sustained the demand, the most sustained thegrowth; the more short-lived the demand, the more short-livedthe growth.

As the demand for ICs increases, more employees are hired,existing facilities expanded, and new firms established in thelocal economy. As more people are employed, more incomeis generated and as income increases, demand for consumergoods and services increases. Local market serving industriessuch as retail trade expand their output to meet the increasedconsumer demand, creating further new income and employ-ment. Also, the overall expansion of existing facilities and theestablishment of new facilities will be reflected in more con-struction, again generating more employment and income.

As firms expand to meet increased external and local marketdemands, they, in turn, generate demands for supplies andservices from other industries.

The direct impact of an expansion of exports is portrayed inDiagram IV-C. An increase in total employment is effected,so also an increase in the interindustry sector which is com-prised of firms which produce products needed by other localindustries. There is also an increase in investment as existingfirms expand and as new facilities are established.

Each of these three sectors is related to other sectors in theeconomy and will have its respective impact as well. SeeDiagramIV-A). An increase in total employment, for example,brings about increases in income and population - both ofwhich generate increases in local investment (residential con-struction). These three sectors, in turn, will effect increasesin the local serving sector. This sector, in turn, effects in-creases in the interindustry sector. Interindustry along withlocal serving effects increases in total employment. The in-crease in total employment generates another round of expan-sion through population and income. The continuing expan-sion and growth continues upward as long as exports con-tinue to increase and expand. This depends on both theexternal factors and the ability of the local economy to utilizeand to expand its natural, human, and capital resources.

Another example of external factors affecting the exportsector can be found in the case of the computing machineindustry. In Santa Clara County, there are approximately tenfirms including IBM) in this industry with more than 6,500employees. This industry, according to the U.S. Department ofCommerce in a report published in 1966 U.S. Industrial Out-look, 1967, Industry by Industry) is growing by 12.3 percent peryear reflecting the national and international) demand forthese products. Again, the rate of growth and the demand forthis new technology is external, and again, this rate of growthand demand will be reflected in the growth of the localeconomy. Local areas that have become stagnant are fre-quently areas that lack export industries or that have indus-tries that are not expanding because their products are nolonger in demand.

Table IV-A provides a summary of employment in the majorexporting industries between 1949 and 1965. It shows employment generated through exports in these industries increasingdramatically - from approximately 36,000 in 1949 to 98,000in 1965. Electrical machinery, ordnance, and other durablesexperienced the highest rates of growth.

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Diagram IV CThe export sector in Santa Clara Valley is made up of thefollowing industries: (1) agriculture; (2) canning and preserv-ing; (3) electrical machinery; (4) ordnance; (5) portions ofother durablestone, clay, and glass; fabricated metals;nonelectrical machinery; professional, scientific and control-ling instruments; and transportation equipment; (6) other non-durables - paper, printing, and publishing, and other foods;(7) research and development; (8) federal government; and(9) education. Table IV-A shows employment generatedthrough exports in the first seven of these industries. Com-parable data were not available for the other two.IRMS

Some of the major canning and preserving firms in the valleyare: California Canners and Growers, Castle and Cooke, Inc.(Dole), U.S.P. Corp., Carnation Company, Duffy Mott Co., Inc.,California Packing Corp. (now Del Monte Corp.), Libby, McNeiland Libby, Sun Garden Packing, Sunsweet Growers, TnValley Growers, Beech Nut Life Savers, Inc., and Gentry Corp.Electrical machinery has been one of the two fastest growingindustries in the valley, increasing from 2,700 employees in1949 to 33,900 in 1966. Ordnance employment (the secondof the two fastest growing industries) in the early sixtiesexceeded electrical machinery employment, but it has sincebeen surpassed by electrical machinery. As of 1966 therewere approximately 125 firms in the electrical machinery com-plex, with employment ranging from one to over 5,000 em-ployees. The larger firms are Fairchild Camera and InstrumentCo., Hewlett-Packard Co., Varian Assoc

county of santa clara planning department - 1967 - a study of the economy of santa clara county,...

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