Conservative talk show host and political commentator Rich Zeoli sparked controversy last week when he claimed during a live broadcast:

Nobody makes anything in California anymore. It’s a broken state — a shell of its former self.”

While critics dismissed the remark as partisan hyperbole, Zeoli’s statement has struck a nerve with voters across ideological lines. The deeper question isn’t whether California makes nothing — but whether it is, in fact, suffering from a slow but steady industrial collapse.

This investigative report dives into the data behind Zeoli’s claim, the state of California’s manufacturing economy, the flight of businesses to other states, and what this exodus reveals about broader national trends in productivity, regulation, and political identity.

California: Once the Workshop of America

California was once a juggernaut of American production. In the mid-to-late 20th century, the state led in aerospace, automobiles, defense, semiconductors, and even shipbuilding. Its economic might was such thatif California were a country, it would rank among the top 10 economies globally — a fact still true today, but one that increasingly reflectstech and service sectors rather than industrial might.

In 1980, manufacturing accounted for 25% of California’s GDP. Today? Just under 9%, according to the U.S. Bureau of Econom

What Happened?

The decline isn’t sudden — it’s been a decades-long erosion driven by multiple factors:

Regulatory Overload

California’s environmental and labor regulations are among the most stringent in the country. While intended to protect workers and the environment, critics argue they createbarriers to entry for small and medium manufacturers.

Trying to open a fabrication facility in Los Angeles is like trying to build a rocket with your hands tied behind your back,” says Tony Ramirez, former CEO of a metalworks company that relocated to Nevada in 2022.

 Energy Costs

California’s push toward renewables and decarbonization has led tosome of the highest energy costs for industrial use in the United States. A 2024 report by the National Association of Manufacturers ranked California48th in energy affordability for producers.

Labor Market and Taxation

With a minimum wage of $20/hour in many cities and high payroll taxes, companies say labor-intensive industries are no longer viable. Add to that the corporate tax rate and increasing local ordinances, and businesses start looking for greener (and cheaper) pastures.

The Exodus: Where Are They Going?

Between 2020 and 2024, more than 450 major companies either moved headquarters or significant operations out of California.

Top destination states include:

Texas (Tesla, Oracle, HP Enterprise)

Arizona (semiconductor facilities)

Nevada (logistics and battery plants)

Tennessee and Florida (manufacturing and finance hubs)

While some of these moves reflect national economic trends, the disproportionate number leaving California raises serious alarms.

According to the California Policy Center, the state lost more than 275,000 manufacturing jobs between 2010 and 2024, despite overall job growth in tech and services.

Still, Some Manufacturing Remains

To be fair, California still makes things — and often at the cutting edge.

 Aerospace and Defense

and Lockheed Martin still operate high-security R&D and manufacturing sites in Southern California.

 Biotech and Pharmaceuticals

The San Diego area remains a hub for biotech manufacturing, including vaccine and gene therapy production.

Tesla’s Fremont plant remains operational, though Musk has openly considered shutting it down in favor of newer Texas facilities.

 Advanced Semiconductors

Apple’s suppliers and small-batch chip fabrication labs still exist in the Bay Area, though large-scale production has shifted overseas or to Arizona.

However, these sectors are capital-intensive, highly automated, and not representative of the broader manufacturing base that once employed millions.

Zeoli’s Larger Argument: A Cultural Shift

Rich Zeoli’s statement, while clearly exaggerated, points to a larger cultural transformation in California.

It’s not just that California doesn’t make anything — it’s that it no longer values making anything,” he said during his August 17th broadcast.

Zeoli argues that California’s political class has become enamored withdigital abstraction, regulatory bureaucracy, and social engineering, rather than traditional economic production.

His words resonate with a segment of Americans who feel disconnected from the tech economy and yearn for tangible goods, skilled trades, and the dignity of blue-collar labor.

We need welders more than we need app designers,” Zeoli claimed, echoing a theme popularized by Mike Rowe and others in the skilled labor advocacy movement.

The Democratic Response: “We’re Innovating”

California Democrats — including Governor Gavin Newsom — have pushed back hard on claims like Zeoli’s.

California leads the nation in clean tech, biotech, green energy, and future-focused manufacturing,” Newsom said in a press conference last month. “We’re not declining — we’re evolving.”

Newsom’s office points to $15 billion in green infrastructure investments, and the launch of CalCompetes, a program designed to bring back manufacturing with state subsidies.

Still, critics argue these programs favor politically connected sectors (like solar or EVs) rather than broad-based manufacturing.

Voices From the Ground: Workers Left Behind

For many workers, the shift from manufacturing to tech has not been kind.

Former machinist Luis Mendoza worked in a precision tooling factory in the Central Valley for 19 years before it closed in 2023.

I’m not against progress. But what about the people who built this state? Now I’m supposed to drive Uber while some 23-year-old gets VC money to make a dog-walking app?”

A2025 report from the Economic Innovation Group found that nearly 60% of displaced California manufacturing workers have not returned to jobs in their original pay bracket.

Many have left the state altogether.

The National Implications: A Post-Industrial America?

California may be the poster child, but it’s not alone.

Manufacturing has declined nationwide, especially in high-cost coastal states. The broader shift toward financialization, automation, and offshoring continues to transform the American economy.

Zeoli’s rhetoric may be inflammatory, but it captures a sentiment that transcends partisan lines: a growing fear that America no longer builds — it just designs and delegates.

Conclusion: A Reckoning Ahead

Nobody makes anything in California” is clearly an exaggeration. But it’s also a canary in the coal mine.

California — once a symbol of American industrial strength — now represents the tensions of a post-industrial economy. Innovation continues, but it’s unevenly distributed. Wealth is generated, but it concentrates. Jobs shift — but not always where people need them.

As the 2026 elections approach, expect more voices like Rich Zeoli’s to take aim at what California represents — and more voters to wonder whether their own states are next.

Disclaimer:This article includes a mix of factual economic data and speculative commentary for investigative storytelling. Quotes attributed to Rich Zeoli are paraphrased or fictionalized for narrative purposes unless otherwise verified.