Viewing blog posts written by Gino DiCaro

8 reasons MFG is great for America

Posted by Gino DiCaro, Vice President, Communications on Aug. 12, 2015

Drew Greenblatt of Marlin Steel (@steelwire) articulated in Inc. magazine this month why manufacturing is so great for America. It was an excellent rebuke to David Ledbetter who previously posited "What's so great about manufacturing?" in The New Yorker magazine.  Greenblatt's eight reasons were as follows. 

  1. Manufacturing creates strong middle-class jobs.
  2. Manufacturing jobs create dignity.
  3. Manufacturing creates wealth for a nation.
  4. Manufacturing is critical during wars.
  5. Factories are safer than ever before.
  6. U.S. factories are the clean ones.
  7. Workers with good jobs are more likely to be healthy.
  8. Manufacturing research is a creativity machine.

Don't miss the entire article explaining each reason HERE. It's must-read material for every California lawmaker and regulator working on policy that affects our state's ability to attract new manufacturing investment.

Remember, here's where we stand vs. the rest of the country in manufacturing job growth:

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CA workers' comp premiums rise while U.S. drops

Posted by Gino DiCaro, Vice President, Communications on July 23, 2015

A key cost component to manufacturing is the premium paid for workers' compensation insurance.  California reformed its system in 2012 with SB 863 to try to increase benefits for permanently injured workers, as well as reign in high costs. At the time, we had the fifth highest premiums in the country. According to workers' comp experts the SB 863 reforms would create approximately $1.50 in cost savings for every $1 in benefit increases. 

This week we took a look at the trend in premium rates for California versus the country from 2010 to 2014 to see if costs were becoming more competitive. It looks like California premiums continue to rise while the national average continues to drop. 


Work comp premium trend CA vs. U.S. since 2010

click image for pdf

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CA manufacturing GDP growth not keeping pace

Posted by Gino DiCaro, Vice President, Communications on July 9, 2015

The U.S. Bureau of Economic Analysis recently released their first estimate of GDP by State for 2014 along with revised estimates for prior years.  Along with the U.S., real GDP growth remains steady in California but reflects the continued moderate levels of growth below rates previously experienced at this point in a recovery.  

Real GDP growth (adjusted for 2009 dollars) in California was 2.8 percent in 2014, compared to 2.2 percent for the U.S. as a whole.  In current dollars, California GDP growth was 4.5 percent, compared to 3.9 percent for the US.

A more granular look though shows a fairly significant lag in California's manufacturing GDP against national manufacturing GDP growth. With the new and revised data, we sit at 11.2 percent manufacturing GDP growth while the rest of the country grew by 22.6 percent in the same category.


GDP trend

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Turn CA venture capital advantage into seeds of growth for MFG

Posted by Gino DiCaro, Vice President, Communications on June 19, 2015

California still attracts a high volume of venture capital (VC) but that money is not reaching the middle class.  We compared California's percentage of national VC and manufacturing investments over the past five years and the data shows there is a large decline in investment in California once companies get to the manufacturing stage of their products. These could be high wage opportunities for our middle class.

California would have an easier task turning early VC dollars into manufacturing scale ups and jobs if we created a more predictable regulatory environment with less litigation and affordable energy.

(Click image for PDF)

Venture Capital and Investments since 2010

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Hard facts undermine an easy tweet

Posted by Dorothy Rothrock, President on June 16, 2015

CMTA is proud to provide accurate and useful information about the California manufacturing economy.  We use Bureau of Labor Statistics (BLS) to track California manufacturing employment over periods of years compared to national numbers.  Sadly, we’ve seen our manufacturing job growth consistently lag the nation since the recession ended in 2010.

So we were puzzled when an environmental activist said it was time for CMTA “to put away the tired, manufactured rhetoric” about the impact of higher costs on manufacturers because, according to a news release, “California manufacturers added over 31,000 jobs in the past twelve months, outpacing national gains.”

The news release said “According to data collected by MNI, California manufacturers added 31,525 jobs from March 2014 to March 2015, an increase of 2%, slightly ahead of the 1.5% national average increase reported by the Labor Department for the same time period.”

Turns out MNI was comparing apples to oranges.  MNI does a different count of CA manufacturing by using outdated Standard Industrial Codes (SIC) and including more types of companies in their analysis (mining, extraction, among others) than does BLS.  That’s fine if they want to redefine manufacturing, but they didn’t include those same additional companies in the national BLS number they were using for comparison. It’s not a surprise their California number was a bigger percentage increase than the national BLS increase.

What followed was an easy tweet by someone who liked the story of healthy manufacturing job growth but didn’t check on it’s validity. Ironically, she declared in the tweet – “I am familiar with the facts, are you?”  Due to erroneous reporting, she wasn’t.

Here’s how California manufacturing job growth stacks up to the country based on BLS data for both.

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