The manufacturing sector is the second largest industry in California (after retail), employing over two million persons (including the self employed) and paying more than $86 billion in wages and salaries. There is concern, however, that California's manufacturing sector is on the decline and that companies are moving elsewhere. This report examines the changes occurring in California's manufacturing sector. In particular, it attempts to provide answers to the following questions: (1) Is the state's manufacturing sector on the decline? (2) If so, are certain types of manufacturing more affected? (3) Is the decline affecting some workers more than others? (4) For those workers at risk, could the state provide more training opportunities as a means to increase productivity? and (5) Which state training programs target the manufacturing sector? This report has three sections. The first explores the scope and size of declining manufacturing capacity in the state; the second presents data on the workers receiving formal training; and the third examines state training programs that offer formal training to workers in the manufacturing sector. (Contains 41 figures, 21 footnotes, and 7 endnotes.)