Viewing blog posts written by Gino DiCaro


Support for Free trade and TPP more critical than ever

Posted by Gino DiCaro, Vice President, Communications on July 21, 2016

The National Association of Manufacturers' Linda Dempsey wrote a compelling blog after the first day of the Republican Convention on the RNC's omission of support for free trade in its platform. With this development it's even more important now for manufacturers to continue to support the Trans-Pacific Partnership and free trade agreements. Intro and link to Dempsey's blog below:

The Economic vs. Political Timetable and Agenda for Trade: What the Republican Platform Misses

There’s lots of news from the first day of the convention, but manufacturers are more concerned with a major omission by the Republican Party: a statement supporting the Trans-Pacific Partnership (TPP). That’s one line worth repeating.

Manufacturers in the United States were happy to post production increases in June, but according to the NAM’s Chief Economist, Chad Moutray, “manufacturing activity remains quite challenged.”  Weak export numbers have contributed to these challenges as global demand remains underwhelming and competition from overseas continues to increase. Indeed, U.S. manufacturing exports are down $31 million in the first quarter of 2016 compared to two years ago ... READ MORE

 

NAM CHART





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New manufacturing sustainability blog

Posted by Gino DiCaro, Vice President, Communications on July 1, 2016

The National Association of Manufacturers (NAM) launched a new blog series this week, titled “Manufacturing a Sustainable Future" in an effort to show how technical innovations in manufacturing are improving our sustainability dramatically. Manufacturing growth and sustainability must co-exist and everyone should be aware of the trailblazing and voluntary efforts being made within the industry. 

California manufacturers lead the way in innovation, efficiency, and sustainability so we could not be more pleased with the focus on these initiatives.

In their inaugural post, CMTA member General Motors' Global Waste Reduction Manager John Bradburn highlights GM’s 131 landfill-free facilities and goal to achieve zero waste at all global plants. Through innovation and a commitment to sustainability, GM has turned waste into a resource in its manufacturing process.

We encourage you to share your story with NAM and/or CMTA so we can make sure manufacturing is seen as a large part of our sustainablitiy solutions.





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CA industrial electricity now 79% more expensive than the U.S. average

Posted by Gino DiCaro, Vice President, Communications on June 14, 2016

California manufacturers depend on cost-competitive electricity rates to stay in business and grow their operations. Since 2010 California's energy policies have steadily driven up industry's premium to purchase electricity in the state.  The annual average in 2010 for the "industrial" rate was 44 percent higher than the national average, growing to a whopping 79 percent higher in 2015. The "commercial" rate that smaller manufacturers tend to pay has also steadily increased.  That rate was 49 percent higher than the national average in 2015.

Coupled with data that shows California has attracted no more than two percent of U.S. manufacturing investments since 2010, this information tells us that we must make sure our energy policies take into account their impacts on high-wage manufacturing growth.





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California export growth not catching up with country

Posted by Gino DiCaro, Vice President, Communications on June 10, 2016

Manufacturers know that exporting is one of the primary growth factors for any economy and that it is profitable for businesses of all sizes. According to a study published by the Institute for International Economics, U.S. companies that export not only grow faster, but are nearly 8.5 percent less likely to go out of business than non-exporting companies.

About a decade ago California, for the first time, got passed in total exports by Texas. The general slowdown in the Golden State started in 2000 but has continued over the last 15 years.  According to U.S. Department of Commerce data, we lag the country's export growth by a large margin. California was by far the export leader in the second half of the 20th century. Now 16 years into this Century we have less than 40 percent export growth compared to the rest of the country's 92 percent growth. For many reasons, other states are attracting more manufacturers who export goods. Our policymakers in California should use this as another reason to ensure we're doing all we can to attract our share of manufacturers.

 

Export growth image





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We should attract more manufacturing investments to California - 1.5% is not enough

Posted by Gino DiCaro, Vice President, Communications on May 20, 2016

In 2015, according to new data on U.S. manufacturing investments, the country’s south and midwest regions gained the most manufacturing investments.  California was dead last among the 50 states with 1.07 manufacturing investments for every one million people, equating to only 1.5 percent of total investments. 

Sadly, this is the continuation of a trend. Since the recession ended in 2010, each year California has failed to attract more than two percent of the country’s new manufacturing facilities. Manufacturing employment has also lagged the US, with a 3.3 percent growth in California compared to 7.3 percent nationally.   

If California kept pace with the national manufacturing job growth rate, we would have 50,000 more high paying manufacturing jobs today.

Kentucky has been the country’s manufacturing leader for the last two years. In 2015 they enjoyed:

  • 39 manufacturing investments per one million people
  • 7 percent of the total U.S. manufacturing investment pie with only 1.3 percent of the US population
  • 17 percent growth in manufacturing jobs since the recession

“These disappointing numbers should be a wake-up call to state leaders.  Manufacturing investments support modernization, new product development, job retention and job growth that we need,” said CMTA’s Dorothy Rothrock. “We should find ways to improve the manufacturing business climate and attract our fair share of investments.”

manufacturing investments by state 2015
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manufacturing jobs ca vs us 2010 to 2015
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