Viewing blog posts written by Gino DiCaro


State leaders recognize the opportunity of California manufacturing

Posted by Gino DiCaro, VP, Communications on Feb. 15, 2017

We are pleased that State Assembly Speaker Anthony Rendon recently bragged in a tweet that led with the fact California has the most manufacturing jobs in the nation. 

We should be proud that manufacturing plays such a crucial role in the California and US economies. As advocates for manufacturing, we regularly remind elected officials that not only do manufacturers represent more than 1.2 million jobs in that sector, but they also support many more jobs in other sectors of the economy, with a multiplier of 2.5 jobs for every one manufacturing job.

The debates leading up to last November’s national election included urgent calls for bringing back high-wage, middle-class manufacturing jobs to the U.S. The average California manufacturing wage, not including healthcare and other benefits, is $83k per year.  California will compete with other states to attract its fair share of these highly valued jobs and the new investments that generate them as new industries develop and some jobs 'reshore' from overseas.

There are hopeful signs that we could make this happen. Just last week, the Governor’s chief economic development recruiter, Panorea Avdis, said and tweeted the following as she welcomed a new exciting 200-employee solar cell manufacturer that she helped recruit to Sacramento from China:

 

"California leads the nation in job creation, #manufacturing and is recruiting new companies everyday.”

And this:

“California is the #1 state for #manufacturing jobs. Source: National Institute for Standards & Technology”

 

This week Avdis and her Go-BIZ counterparts also highlighted California's manufacturing size in a legislative informational hearing on California's core economic topics.

Successfully recruiting and growing new manufacturers is a hopeful sign and we need the continued time and attention by state policymakers to keep it up. The hill to climb is shown in the 2015 manufacturing investment data, the last year available, when we attracted only 1.5% of the manufacturing investment in the US. We can improve our performance by funding skilled workforce development, enacting pro-growth tax policies and fixing regulations to lower costs of compliance and speed up permitting processes, while protecting public health and the environment. 

CMTA President Dorothy Rothrock also testified on the manufacturing agenda topics at this week's legislative hearing (click image to watch her 3 minute testimony):

 

We should be monitoring and addressing all the data points on manufacturing jobs and investments to inform our policy decisions:

Manufacturing jobs per capita in 2016

CA: 326 per 10,000 people

US: 381 

 

Percentage of US manufacturing investments in 2015

CA: 1.5% (no more than 2% since 2010)

 

Manufacturing job growth since 2010 

CA: 2.6% 

US: 7.0%

 

Percentage of U.S. reshored manufacturing jobs 2013 to 2015

CA: 1.1%

It’s exciting that our state is working hard to recruit manufacturing and that leaders are highlighting the state’s manufacturing economy. Let’s channel this momentum into a movement to catch-up to and even outpace the rest of the country with a California surge in new manufacturing jobs and investments. 

 





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Celebrate Earn and Learn program in East Bay

Posted by Gino DiCaro, VP, Communications on Feb. 13, 2017

CMTA member Bishop-Wisecarver (Pittsburg, CA) and its President Pamela Kan are helping to celebrate the success of the phenomenal Earn & Learn program in California's East Bay on Friday, March 3rd.  The project connects local employers with their future workforce through school and work-based learning opportunities.

Manufacturers in the region are invited to attend the March 3rd event from 7:30 a.m. to 9:00 a.m. at the Concord Hilton at 1970 Diamond Blvd. in Concord, California.

Employers will be honored for their contributions, youth will talk about these life-changing experiences, and the new Chancellor of the Contra Costa Community College District, Dr. Fred Wood, will speak about the importance of this regional effort. We will also provide opportunities for employers to learn more about how to connect with their future workforce.

Registration for this event is free.  You can enjoy breakfast and be inspired to join others in helping local youth.





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

Posted by Gino DiCaro, VP, 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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Best states for MFG growth since the recession

Posted by Gino DiCaro, VP, 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, VP, 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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