LOS ANGELES - California needs to make its business climate more attractive, even though only 2% of the state's manufacturing firms have left since 1980, a new study says.

The "California Industry Migration Study," which was commissioned by the state's five largest utilities, pokes holes in claims that businesses are fleeing California for neighboring states and Mexico. But the report finds that industry is "increasingly disenchanted with California as a manufacturing locale," which means officials need to take steps to keep manufacturing-jobs in the state.

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