Update on CA manufacturing job growth trend

Posted by Gino DiCaro, Vice President, Communications on Nov. 21, 2014

New California job data came out today. Unemployment remained about the same and the state grew it's nonfarm jobs by 41,500.  This is good news, however California manufacturing job growth continues to be outpaced by the country since the end of the recession.

U.S. manufacturing jobs are up 6.27 percent since January 2010, while California's are up only 0.78 percent. There is good news on the manufacturing investment front though. CMTA got a peek at the manufacturing investment data for 2014. So far, it's trending better than last year's 1.5 percent share of U.S. investments. We'll provide a look at the final 2014 manufacturing investment numbers at the end of the year. There is still no doubt we need all hands on deck in California to grow our wages with manufacturing growth and other high paying sectors.

 

U.S. vs CA MFG job grwoth - 2010 to Oct. 2014

 





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All hands on deck to make CA the capitol of manufacturing growth

Posted by Dorothy Rothrock, President on Nov. 13, 2014

 

No matter where you are located, you’ve got to have good ideas and work hard to succeed as a manufacturer.  That is doubly true if you’re in California.  Only the most efficient, innovative and productive manufacturers in the world can meet the regulatory and cost challenges here and stay competitive in world markets.  California is lucky to have such a fantastic group of companies creating wealth, paying taxes and putting people to work in this state!

Dorothy Rothrock photo

That’s why I am so excited to be the new President of the California Manufacturers & Technology Association.  The CMTA team of lobbyists urges legislators and regulators to improve the business climate so these great manufacturers will stay in California, make new investments and hire more workers. 

It’s an honor and privilege to represent California manufacturers.  They have been the engine of the California economy since before CMTA formed in 1918. Over the years oil and gas development, aerospace, automobile, food processing and technology companies spawned a local supply-chain of smaller manufacturers and service companies to create the most dynamic and diverse economy in the country.  

But lately we’ve seen a steady decline in manufacturing jobs and investments. Some believe that California can’t be a manufacturing powerhouse into the future, and we must move toward a new economy made up of high-end “knowledge” jobs, green jobs, and lower wage service jobs.  

I couldn’t disagree more! California is the innovation capital of the world in nearly every sector of the economy. Our ports, transportation system, natural resources and skilled workforce are second to none.  What does it say about us if our laws and regulations make it impossible to manufacture a fair share of the products our citizens buy?

The decline of manufacturing investments in California makes us weaker and will lead to further job losses.  This tells the world that California has failed to protect manufacturing while pursuing bold policies to improve the environment. This matters because no other state will follow our lead if it means out-sourcing manufacturing to other states and countries.    

That's why we need to take action to turn California manufacturing job losses into job gains.  The CMTA team knows what needs to be done, and I can’t wait to greet newly-elected legislators with a positive message about the future of California manufacturing. Encouraging all manufacturers to join CMTA is also important - We need all-hands-on-deck to force the changes necessary to revitalize manufacturing and show the rest of the world that our policies can provide both a clean environment and millions of middle-class jobs.

That will be true leadership worth following.   

 

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Growing CA industries pay $21k less than declining ones

Posted by Gino DiCaro, Vice President, Communications on Oct. 23, 2014

Last week the California Business Roundtable put out its monthly Employment Report. They showed the job sectors that have grown and declined since the recession started in 2007. They also showed the average wages for each of those collective sectors.

We decided to take it one step further and "weight" the salaries appropriately by jobs gained and lost to understand California's comeback.  We learned that since 2007, California's growing industries pay $21,000 less than its declining industries. Specifically the new jobs pay $52,929  and the lost ones pay an average $74,033. 

This means that California is rebounding but not nearly as strongly as it should, especially for our middle class working familes.  Manufacturing is one sector that can bring higher wage jobs to California.  Governor Jerry Brown and his Go-BIZ economic development team have worked hard to try to bring manufacturing back to California. The recent loss of Tesla's 6,500 employee gigafactory hurt but we appreciate the tremendous effort the Administration put forward to try to secure Tesla's investment here in California. Here's to re-doubling our efforts to bringing more large-scale, high-wage manufacturing to California.

 

New and lost jobs and wages chart

 

 

 

 

 

 

 





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Are you a manufacturing voter?

Posted by Gino DiCaro, Vice President, Communications on Oct. 17, 2014

On November 4 you have an opportunity to vote for candidates and issues likely to help grow our economy's most important sector. We invite you to watch and distribute this National Association of Manufacturers (NAM) video and vote manufacturing on election day! Below are also CMTA's ballot positions as well as a link to the NAM's Election Center.

Manufacturing Voter screenshot

 

 

CMTA has taken the following positions on initatives (here's why) and we invite you to look at NAM's election center for Congressional information. 

Proposition 1  Support  Water Bond: Funding for Water Supply, Treatment, and Storage Projects.
Proposition 2  Support  Rainy Day Fund: State Budget. Budget Stabilization Account.
Proposition 45  Oppose  Healthcare Insurance. Rate Change Approval.
Proposition 46  Oppose  Medical Malpractice Insurance. Drug and Alcohol Testing of Doctors. Medical Negligence Lawsuits
Proposition 47  No Position  Criminal Sentences. Misdemeanor Penalties.
Proposition 48  No Position  Indian Gaming Compacts.

 

NAM's Election Center

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Caterpillar's CEO is manufacturing's ultimate champion

Posted by Gino DiCaro, Vice President, Communications on Oct. 15, 2014

This month CMTA member Caterpillar CEO Doug Oberhelman delivered an inspiring speech at the National Manufacturers Association’s (NAM) annual meeting as he retired as NAM’s Chairman of the Board.

Oberhelman helped transform NAM’s effort into a national manufacturing revolution, taking manufacturing issue advocacy and turning it into a broader and louder voice about clean, efficient, high paying, incredibly innovative factories. His and other's efforts have put NAM on a mission to convince lawmakers to be champions of growth and job creation in the country’s most important economic sector. Oberhelman has been a tremendous messenger that our economy and hard working families will thrive with more manufacturing.

Specifically in California, there is a growing acknowledgement of the value of manufacturing within the lawmaking and regulatory communities but we must channel the efforts of NAM and Oberhelman to help manufacturers compete and grow. California boasts about innovating, but as Oberhelman says, “products [only] become real when a manufacturer makes them.”

While the country is starting to grow and re-shore manufacturing, California is lagging the “revolution” by attracting only 1.5 percent of the country’s manufacturing investments in 2013. Just like NAM's efforts across the country, California must be "powerful, loud and clear." Below is a snippet from Oberhelman and you can download the entire speech here.

“The manufacturing revolution continues into the 21st Century because the same principle holds true for today’s inventions. Whether it’s 3D printers, hybrid vehicles or dual-fuel engines – these products only become real when a manufacture makes them.

“Now, there’s even better news. In the 21st Century, the revolution has expanded to how we manufacture. Highly skilled women and men operate the sophisticated controls and robotics that are now permanent fixtures on factory floors. We’re not just 100 years; we’re light-years beyond the early 20th Century, when parts moving along a conveyor belt was a marvel.

“We are constantly innovating and improving, making factories safer while at the same time using less energy, less water and creating less waste.

“We’re now in the midst of a sustainable manufacturing revolution, and we’re going to see even more innovative and amazing changes ahead. I can’t wait.

“For that and dozens of other reasons, I’m pretty sure you agree that the United States needs to remain a nation that builds and changes – now, as much as ever. And that manufacturers can help this great economy realize its full potential if we stick together and speak together.

“So, please be engaged and stay engaged!

“We need a unified, powerful voice to make sure government policies support manufacturing. The NAM is that voice: Powerful, loud, and clear. 

 




You can also see Oberhelman's video message (not his speech) by clicking the image below.

Oberhelman image
 

Don't forget to sign up to be a CMTA Champion so we can include you in our efforts.

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