Viewing blog posts written by Gino DiCaro


Another uptick in MFG jobs: Update on CA vs the U.S.

Posted by Gino DiCaro, Vice President, Communications on Jan. 22, 2016

Some good news came out today. California reported an increase of 1,600 manufacturing jobs in December 2015. Here's an update on California vs the United states since 2010.





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New leadership at northern California's Tri Tool is good for California

Posted by Gino DiCaro, Vice President, Communications on Jan. 22, 2016

CMTA Champion manufacturer Tri Tool, out of Ranch Cordova, announced this week that Dr. George J. Wernette, President and Jerri Wernette, Executive Vice President, will be turning over the day-to-day operations of their company to their son George J. (Joe) Wernette III as Chief Executive Officer.

This is a great opportunity for CMTA to congratulate Joe and the entire Tri Tool operation. As seen previously in our Champion recognition video, this company embodies the best that manufacturing has to offer -- innovation, technology and tremendous opportunities for its workers. Joe's ascension gives us great hope that the company, and its supply chains, will continue to grow in the region. 

Joe has been with the company for 30 years and according to Jerri Wernette, "has had every job imagineable." Joe has established ground-breaking implementation of mass production of precision tool bits, taking a lead role in the development of next-generation orbital welding equipment, and most recently his work on corporate restructuring and his plan to usher in an unprecedented level of advanced product development.

With 120 workers and tremendous innovation, delivering exceptional machining and welding equipment for customers worldwide, Tri Tool, along with its new CEO Joe Wernette, is a gem for northern California and represents exactly why our policymakers must find ways to help these companies compete and grow in California.

 

 





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'Internet of Things' and MFG

Posted by Gino DiCaro, Vice President, Communications on Jan. 15, 2016

CMTA is proud of the technology and innovation that manufacturers are using to compete and grow in California, where every efficiency counts. The “Internet of Things” (IoT) is not new but it's impact on operational efficiencies for manufacturing is emerging. It’s long been understood how IoT can help with distrubtion and wharehouse related processes, but it’s also going to help improve the manufacturing process.

On manufacturing floors there is still a lot of running around, hard copy record keeping and hands-on troubleshooting, especially in small  and mid size operations. IoT can improve all of these manual processes and generate substantial productivity improvements.

By adding IoT sensors, cameras and gauges, as well as the software needed to view the data that’s collected, maintenance teams can keep tabs on equipment performance without ever stepping foot on plant floors. These solutions can alert employees to a component's change in pressure, temperature, vibration, or other critical occurence. Maintenance teams can then remediate the issue with minimal (or no) downtime.

Here’s a look at four main ways Iot will change the future of manufacturing (paraphrased from Manufacturing.net)

1. IoT For The Masses:

Like we saw with cloud infrastructure, IoT technology is bound to soon become ubiquitous and affordable.  Soon small-scale manufacturing operations will be afforded the same customized IoT opportunities as their multinational counterparts.

2. Environmental Compliance

Whether it’s reporting the least energy-efficient components on a line, identifying energy byproducts exceeding tolerable thresholds or delivering real-time information about material waste, IoT sensors and gauges will make compliance much easier for manufacturers everywhere.

3. Improving Output Quality

Connected sensors, cameras and telemetry don’t just report on abnormal machine operation — they also report on product variations and help boost the quality of finished products. With this information, machines further down the production line can be adjusted to resolve the issue and prevent the defective product from reaching consumers.

Better inline quality assurance will relieve stress from quality control departments, instill better confidence within the sales and distribution chain, and ultimately improve relations with end consumers as well.

4. Increased Business Intelligence

It’s one thing to get your machines connected and collecting data, but understanding that data is something else entirely. Executives who have invested in customized intelligence software are also learning how to make meaningful productivity decisions based on their data, finding faster and cheaper methods to produce superior products. You can expect to see rapid growth in software and mobile products aimed at delivering actionable data to upper management. By speaking the user’s language and making IoT relatable, these software advancements will only further accelerate adoption across the whole industry.

IoT technology is set to revolutionize how manufacturers operate to an extent that hasn’t been seen since the first mechanized assembly lines were introduced. 





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Recent good and bad on CA MFG

Posted by Gino DiCaro, Vice President, Communications on Dec. 11, 2015

A relentless challenge to California’s middle class is the lack of wage growth opportunities. Our state currently outpaces the country in overall job growth as it rebounds from the recession but we lag far behind in manufacturing growth, a sector that boasts the highest average middle class wages.  Particularly regions like the Valley and Los Angeles are struggling to produce a modicum of wage growth to support the middle class. To that end, there have been some recent public items that continue to paint a picture, most bad and some good that we thought were worth publicizing.  As always we will update you in early 2016 on the 2015 final manufacturing investment numbers to see how we did vs. the rest of the country.

 

SOME GOOD

A new aerospace manufacturing investment

Elite Aviation Products (EAP), an advanced design, engineering, and manufacturing company within the aerospace industry, announced that it acquired its second manufacturing facility in Tustin, California. 

EAP's Tustin facility will be a 34,000 square ft. addition to its existing local facility and will triple its manufacturing capacity. This is a good reminder that early manufacturing seeds often spawn more manufacturing jobs and growth close in proximity.

Article link

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SOME BAD

Lack of CA wage growth report

A report this week by the California Budget & Policy Center, California’s Sinking Center: How the Economic Recovery Is Leaving California’s Midwage Earners Behind, suggested that wage erosion continues for California’s middle classEven at a time when workers are better trained, more educated, and more productive than ever, California’s median wage continues to lose ground, and wage inequality continues to worsen.

Report Link

 

Opportunity loss of electric vehicle manufacturing facility and 4,500 jobs

Faraday Carmaker announced it will build its first 100 percent electric cars in a $1 billion manufacturing facility in Las Vegas, Nevada, eventually employing 4,500 workers and creating a tremendous boon to their economy. Not sure how much California was in the mix for the investment but it sure would have helped make up for losing the Tesla gigafactory.

Article link

 

CA investments and disinvestments

Relying solely on publicly available information, Joseph Vranich of Spectrum Location Solutions in Irvine, CA concluded in a report last month that 1,510 companies moved all or some of their operations out of California from 2008 through 2014, taking with them valuable jobs, investment dollars and tax revenue.

Certainly these disinvestments weren’t all manufacturing. Some are call centers, distribution etc., but it seems clear that it is difficult to locate a California facility when there are so many emerging less costly and predictable options.

Report link

 

 

 

 

 

 





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Costs and font size shut down a small CA manufacturer

Posted by Gino DiCaro, Vice President, Communications on Nov. 20, 2015

More than 50 percent of California's manufacturers are small, with 10 employees or less. Small manufacturers are the pride of their communities, deeply valued for their economic support, for their job and advancement opportunities, and often for their innovation in creating specific niche products.

This is a story of a small manufacturer in Chico with 15 employees that is closing its doors after 40 years. CMTA met Woof & Poof's owner, Roger Hart, this year at a North State "Grow Manufacturing" event. As usual with small manufacturers we first heard about their deep concern for their employees who had worked there so long. We then heard about the company's arduous efforts to stay open because of a totality of California costs and an ongoing struggle with the state regarding tag font size on their decorative pillows.

This example should serve as one of many prompts for our state leaders to do everything they can to provide a competitve operating environment for manufacturers large and small. 

Here is the intro in the Chico News & Review and a link to their full article:

So long to a Chico institution

Woof & Poof owner announces décor manufacturer will be shutting its doors.

First it was the increase in employee health insurance costs. Then came the bump in California's minimum wage. Add in a seemingly nonsensical citation from the state's Department of Consumer Affairs and it became clear that the challenges were just too overwhelming for Woof & Poof, a 40-year-old Chico institution, to continue.

CEO and owner Roger Hart, his wife, Sabrina, and sister Linda Gonzalez took over ownership of Woof & Poof, which currently employs 15, 2 1/2 years ago after the passing of founder Jacki Headley in 2012. Headley started the business in 1975, and since then, Woof & Poof's stuffed Santas, decorative pillows and household décor have developed a fan-following with nationwide distribution in 600 stores ... READ FULL CHICO NEWS & REVIEW ARTICLE HERE





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