Viewing blog posts written by Gino DiCaro


CA work comp rates lower in 2016 but more expensive than the national average

Posted by Gino DiCaro, Vice President, Communications on Jan. 6, 2017

Unfortunately for California manufacturers, our state continues to be the most expensive state for workers’ compensation insurance rates at an average $3.24 per $100 in payroll.  While rates are trending downward according to the Oregon Workers' Compensation Premium Rate Ranking Summary, California's decline is not occurring quick enough or deep enough to level the playing field, despite the reforms in 2012.

Here's a look at the prmeimus by state with California's trend vs. the national average.

 

 

Link to Oregon Workers' Compensation Premium Rate Ranking Summary

 

 





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Go-Biz tax credit and other CA incentive programs for 2017

Posted by Rob Sanger, on Jan. 4, 2017

GO-Biz Now Accepting Applications for California Competes Tax Credits


The Governor’s Office of Business and Economic Development (GO-Biz) is now accepting applications for the California Competes Tax Credit (CCTC).  There are $100 million in tax credits available during this application period for businesses that are expanding and adding full-time jobs in the state.  The deadline to submit applications is Monday, January 23, 2017, at 11:59 p.m. (Pacific Time) and the online application website will automatically close once this deadline has passed. 

See if your competitor accessed these funds in 2016:  http://www.business.ca.gov/Portals/pdf

Contact Rob Sanger, 916-498-3334, for details about this and other California-focused incentive programs. Even if you are not hiring new employees, but you are investing in new equipment or other capital improvements, your company may still qualify.





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Best states for MFG growth since the recession

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

Since manufacturing is the engine of economic growth, especially for the middle class, we thought we would see which states are having the sector's best bouncebacks since the recession. Of the 32 states that average more than 100,000 manufacturing jobs overall, Michigan has attracted the largest percentage of growth with 32.49 percent since 2010. California was 24th of 32 states at 2.57 percent. 

 

 





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California not taking advantage of reshores

Posted by Gino DiCaro, Vice President, Communications on Nov. 17, 2016

Dr. Harry Moser and the Reshoring Initiative are working to bring good, well-paying manufacturing jobs back to the United States by assisting companies to more accurately assess their total cost of offshoring, and shift collective thinking from "offshoring is cheaper" to "local reduces the total cost of ownership".

Acccording to Moser, most companies make sourcing decisions based solely on price, oftentimes resulting in a 20 to 30 percent miscalculation of actual offshoring costs. HIs Total Cost of Ownership (TCO) Estimator helps companies account for all relevant factors — overhead, balance sheet, risks, corporate strategy and other external and internal business considerations. Using this information companies are coming back to the U.S. and reshoring their facilities, for which our country's middle class benefits tremendously.

Unfortunately a look at the Reshoring Initiative's regional reshoring data since the recession shows that California has been unable to keep pace with the country and attract an amount of jobs commensurate with the state's size and manufacturing prowess. Even with our proximity to markets we are losing out to other states that can provide lower costs and predicability.

With only one percent of the reshored jobs, California should work to take advantage of the reshoring phenomenon for our middle class and economy. 

 





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Middle class in L.A. not well served by manufacturing losses

Posted by Gino DiCaro, Vice President, Communications on Oct. 28, 2016

Los Angeles County has historically been the industrial powerhouse for the state of California.  Workers in transportation equipment, apparel, fabricated metal products, computers and electronics earn middle class or better salaries with upward mobility to achieve their career goals. So it is alarming that LA County manufacturing jobs are being lost while other California locations and the US as a whole is growing since the end of the recession in 2010.

Before and during the recession the losses were already accumulating in LA County with a 34 percent loss in manufacturing jobs from 2000 to 2009.  Now as the rest of the country rebounds with post-recession manufacturing growth, the county continues its slide with a 5.4 percent loss in manufacturing jobs since 2010.

It is possible that the shift away from manufacturing is making room for other service jobs in the area. But do those jobs have the same wages, benefits and opportunity for advancement?  Do they provide middle class status for workers without four year college degrees?

Local leaders should analyze and understand how the loss of manufacturing jobs will impact citizens and related businesses in the region.





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