Industrial electricity rates reach a new high

Posted by Gino DiCaro, Vice President, Communications on Dec. 18, 2014

California has reached a new high in 2014. For the first time we are consistently paying 80 percent more than the national average in industrial electricity rates.

We looked at the most recent third quarter data for 2014 and compared it to each of the third quarters back to 2010. The trend is moving in the wrong direction. Up from 59 percent in 2010, we now pay 84 percent more than the national average. 

The chart below shows the trend, and a Californians for Affordable and Reliable Energy report -- written up this week by CMTA's Michael Shaw -- lays out an ever important path toward a comprehensive state energy plan and cost effective post-2020 climate change goals. 


Electric rates trend chart


... And here's a look at rates by state in September 2014


Industrial electric rates by state, September 2014

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When business votes, the economy wins

Posted by Gino DiCaro, Vice President, Communications on Dec. 11, 2014

This week CMTA attended the Annual BIPAC (Business Industry Political Action Committee) conference in San Diego, established to bring together all the state projects that are using BIPAC’s "Prosperity Project" (P2) program to get-out-the-vote with employer-to-employee communications.
Because of BIPAC, companies and trade associations across the country are getting comfortable engaging their employees to vote and interact with their elected leaders. Rolls Royce Vice President of Government relations Brian Elson even spoke at the event on their success and how much their employees appreciated the voting information they were now receiving.
P2's online tools delivered 238 million political, policy, and election messages to private sector employees in the 2013-2014 cycle. According to BIPAC, that is a national increase of 21 percent from the 2009-2010 midterm cycle when 197 million messages were delivered.
“The Prosperity Project reaches 22 million private sector employees across all 50 states," said BIPAC Senior Vice President of Field Operations Joe Savarise. "P2 does not tell people how to vote but we help the business community communicate with employees, associates, members, and consumers. Through the tried-and-true practice of employers educating and motivating their workforce about politics and issues, in a non-partisan way, the P2 network drives true grassroots advocacy participation at a local, state, and national level," said Savarise.
As a trade association CMTA partners with the California Chamber of Commerce on the site, and many of our members, such as International Paper and PPG Industries, already participate with their own P2 programs and websites. It’s really easy to set up! If you are interested, contact Cathy Mesch at 916-444-6670.

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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.   


Don't forget to sign-up to be a Manufacturing Champion for manufacturing alerts in 2015.

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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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