Viewing blog posts written by Gino DiCaro


Reshoring group outlines how we can compete for MFG

Posted by Gino DiCaro, VP, Communications on May 6, 2018

Dr. Harry Moser of the Reshoring Initiative recently outlined in IndustryWeek how California, and other states, have an opportunity to take advantage of the substantial reshoring surge across the United States, but how our competitveness internationally and locally play a significant role. He outlined some of the same issues we've heard anecdotally and in recent studies on California's competitiveness. Here are a few select comments:

• It is now clear that U.S. manufacturing, including foreign-owned plants, can be started up or grown to support a substantial flow of work back to the U.S.

• U.S. and foreign companies increasingly recognize that it is in their interest to supply more of the U.S. market by local production and sourcing.

• Based on timing of announcements, much of the surge was due to the anticipation of lower taxes and regulations and higher tariffs. To bring back more than about 10% of the five million offshored jobs will require more U.S. competitiveness, more leveling of the playing field—including some combination of lower USD, stronger skilled workforce training, still lower corporate tax rates, and a VAT (Value Added Tax).

• Bringing so many jobs from offshore disproves the weak claim that only 4 to 13% of the decline in manufacturing jobs has been due to offshoring, with the rest to automation. If so few had been lost to offshoring, so many could not be recovered in one year.

In addition to federal policy, states and cities need to play a role:

• Some states are more attractive and effective as destinations. The Southeast and Texas have dominated. The Midwest is now moving up in the rankings. Government incentives are the most frequently mentioned motivating factor

• Education and skills training need to be improved in almost all regions. Skilled workforce is the third ranked driver of reshoring and FDI.

• Infrastructure is highly ranked.

Companies can profit from the data below—here are some things to keep in mind:

• Skills training is a corporate responsibility. Some companies have taken that responsibility; others have ignored it. Without a larger and better trained workforce, the flow will decline rapidly. Skilled workforce is the third highest ranked motivator of reshoring.

• Industry 4.0. Automation, productivity, innovation and lean collectively are the highest ranked enablers of reshoring. Have you optimized?

READ FULL ARTICLE HERE

In other but similar news, a study released in March by the Pacific Research Institute (PRI) revealed that we have a lot of work to do in some of the areas mentioned by Dr. Moser.  The PRI report said California business executives, including those in clean tech, R&D, manufacturing, and other highly desired industries say the high costs of housing and real estate, a lack of highly skilled workers, and expensive costs of doing business are among the primary reasons why they are not locating or expanding in the Golden State. 

The findings were based on 200 interviews with executives in R&D, IT, manufacturing, clean tech, and energy.  Participants were asked their attitudes on California's business climate and the factors that went into their decisions about locating in California. 

Key findings included:

88% said that "dealing with the high cost of housing and the high cost of commercial real estate would imapct our decision to locate in CA or not."

62.5% said that "improvements in the quality of education in California and the state's ability to provide employees with skills would affect our decision to locate in California"

71% said that "labor laws and regulations would play a factor in their location decisions."  When specifically asked what two or three things would make California more attractive, the most common responses were "reducing taxes and bureacracy" and "Improving housing affordability and transportation infrastructure."

Next week the Champions of MFG blog will highlight the country's 2017 manufacturing investment growth and we'll take a look at how California came out in the race to attract manufacturing jobs.





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California’s MFG competitiveness will be well served by cap and trade

Posted by Dorothy Rothrock, President on May 3, 2018

Last summer’s extension of the state’s cap-and-trade program provided the best available path to protect manufacturing jobs and control the costs of meeting the state’s mandated climate change goals. The alternative, an excessively harsh command and control program, would have forced businesses to make drastic changes in their operations and would have imposed strict regulations without any flexibility in implementation.

The result would have meant increased costs to consumers and the loss of more manufacturing jobs in the state. In fact, according to CARB’s own analysis, the alternative would have resulted in increased costs across all sectors of the economy and significant increases in fuel costs to consumers. Fuel costs for the overall economy would have been 6 times higher without the deal.

Bipartisan legislative support of AB 398 ensured an improved cap-and-trade program with tax cuts, cost containment measures, and significant bureaucracy reduction that will control costs for all Californians. These elements of the cap and trade deal, fought for by Assembly Republican Leader Chad Mayes and other legislative leaders, will ease the burden of businesses working to comply with the law by preserving a market-based approach and operational flexibility.

There were only two choices last summer: draconian command and control or market-based cap-and-trade. The leaders who fought for an improved cap-and-trade program should be lauded for their courage in helping to keep manufacturing as a key component of our state’s economy.





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CMTA President and Intel representative on housing panel

Posted by Gino DiCaro, VP, Communications on April 30, 2018

The California Association of Relators is hosting a panel of thought leaders this Tuesday at 3:30 p.m. at the Sacramento Convention Center (Room 202)  as they examine workforce housing solutions for an expanding workforce population in the Sacramento region. CMTA's Dorothy Rothrock and CMTA Board Member from Intel, Jonathan Williams, will sit on the panel.

California’s housing supply and affordability crisis threatens the state’s economy and its global leadership in manufacturing. High housing costs discourage in-migration of manufacturing workers and puts upward pressure on wages which hurts our competitiveness in California. Rothrock and Williams will discuss the importance of turning this around for our manufacturing and technology sector growth. 

The panel discussion and audience Q&A session – presented by C.A.R.’s Center for California Real Estate - will explore the relationship between housing availability and community viability, perspectives on Sacramento’s trajectory based upon the current housing supply crisis, the appropriate role and leadership necessary by local government, statewide and regional business leaders, and ways Sacramento can capitalize on opportunities in the technology space.

This event is free. For more information: melissah@car.org

Moderator: Joel Singer, CEO, California Association of Realtors

Panelists:

  • Jonathan Williams, Director of State and Local Government Affairs, Intel Corporation 
  • Dorothy Rothrock, President, California Manufacturers & Technology Association 
  • Angelique Ashby, Sacramento City Council Member
  • John Krueger, Executive Vice President, Greater Sacramento Economic Council 

 





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Calling small and mid market MFG -- Regional regulatory reform roundtables could help you grow

Posted by Gino DiCaro, VP, Communications on April 24, 2018

The Small Businees Administration (SBA) Office of Advocacy is an independent office that serves as a voice for small business within the federal government, the watchdog for the Regulatory Flexibility Act (RFA) and the source of small business statistics. Advocacy advances the views and concerns of small business before Congress, the White House, federal agencies, federal courts, and state policy makers.

Regulatory reform is a centerpiece of the current President's agenda, with two signed executive orders addressing the regulatory burden faced by the private sector.

Manufacturers can participate and meet SBA staff in person at SBA regional regulatory reform roundtables across the country. The next set of roundtables will be in California the week of April 30th, 2018. These roundtables are free and open to the public. The information gathered at these roundtables will be utilized to inform agencies, congress and the public on what specific regulations can be modified or removed to help small businesses.  Please see below for the upcoming schedule:

Modesto, CA – Monday, April 30

  • Time: 1:30 PM – 5:00 PM PDT
  • Location: DoubleTree Modesto, 1150 Ninth Street, Modesto, CA 95354
  • Link to register: https://www.eventbrite.com/e/sba-office-of-advocacy-regional-regulatory-roundtable-modesto-ca-tickets-45246053163

Sacramento, CA – Wednesday, May 2

  • Time: 8:00 AM – 11:30 AM PDT
  • Location: SAFE Credit Union - Corporate Headquarters , 2295 Iron Point Rd #100 Folsom, CA 95630
  • Link to register: https://www.eventbrite.com/e/sba-office-of-advocacy-regional-regulatory-roundtable-sacramento-ca-tickets-45209244066

Santa Clarita, CA – Thursday, May 3

  • Time: 8:30 AM – 12:30 PM PDT
  • Location: Small Business Development Center, College of the Canyons, 26455 Rockwell  Canyon Road, University Center, Santa Clarita, CA 91355
  • Link to register: https://www.eventbrite.com/e/sba-office-of-advocacy-regional-regulatory-roundtable-santa-clarita-ca-tickets-45243391201

You get more information here: https://www.sba.gov/advocacy/regulatory-reform.





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Changes to California’s Prop 65 abound – Watch May 3 webinar

Posted by Gino DiCaro, VP, Communications on April 24, 2018

On August 30, 2016, the California Office of Administrative Law approved California’s nearly three-year effort to overhaul Proposition 65’s longstanding warning regulations. The new regulations are a significant departure from the rules that companies have relied on for decades. Manufacturers must comply with new consumer product warnings by August 30, 2018, a change that could significantly impact your business. The National Association of Manufacturers, CMTA, and Crowell & Moring LLP are hosting an off-the-record webinar to discuss the impact that Prop 65's new regulatory requirements will have on California manufacturers.

This webinar will cover the important legal and practical issues specific to manufacturers, including:

  • Overview of Proposition 65
  • Consumer product warning regulatory deadlines
  • New consumer product warning content and methods
  • Technical and legal compliance best practices

 

 





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