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Sacramento region report paints local “advanced manufacturing” picture

Posted by Gino DiCaro, VP, Communications on March 4, 2016

All manufacturing in California is in fact “advanced” because of the tremendous pressure to be efficient to remain competitive. But many regions are analyzing their “advanced manufacturing” sectors so they can make policies to grow high wage manufacturing jobs and ensure that there is a proper pipeline of workers with the skills that manufacturers need to fill technical positions.

Here in Sacramento, Valley Vision, a regional civic group, released an intriguing report --  Advanced Manufacturing Cluster: Workforce needs assessment -- that will inform a local workforce plan in May of 2016.

According to Valley Vision’s study, conducted with JP Morgan Chase, Los Rios Center of Excellence and the Burris Service Group, the six-county Sacramento Capital region employs more than 42,000 people in the “advanced manufacturing” sector directly and indirectly, contributing more than $12.4 billion in economic output.

The report defines its “advanced manufacturing” cluster this way:

“Advanced manufacturing is a process that integrates the coordinated use of information, automation, software, sensing and networking to improve the efficiency and reduce costs of manufacturing.  Although advanced manufacturing methods may be utilized by any manufacturing industry, high use of these methods tends to cluster in the following six manufacturing subsectors: Aerospace, Chemical, Computers/Electronics, Machinery, Plastic, Transportation.”

 

The findings show the “advanced manufacturing” cluster had more than 16,000 direct jobs in 2014, representing 42 percent of all manufacturing in the region. With several subsectors, the cluster’s competitive advantage lies within the transportation and machinery subsectors. The region shed nearly 1,800 jobs during the peak of the recession, but started rebounding in 2010. By 2019, the cluster is projected to add as many as 755 new jobs overall, but an examination of total job openings (new and replacement jobs including due to retirements) shows advanced manufacturing is projected to add more than 2,500 jobs across 15 high-demand occupations.

We look forward to seeing more reports like these in all regions in California. They show manufacturing’s tremendous direct and indirect economic benefits for any region, and they highlight the technical skills that drive the industry's success. Most importantly they show us that we need to ensure a proper pipeline of technical workers, and instructors, so manufacturing companies will see California as a safe place to make long-term investments and grow in the Golden State.





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Tesla provides California a teachable moment

Posted by Dorothy Rothrock, President on Feb. 28, 2014

This week California-based Tesla Motors announced it is considering four states -- Arizona, Nevada, Texas and New Mexico -- for it's new manufacturing facility that will eventually employ 6,500 workers. 

We are proud that California is home to the first models of Tesla automobiles and that they are expanding to meet growing consumer demand for their products. But we are disappointed that California will not host the Gigafactory for the development of the next generation "Gen III" mass market vehicle. According to company filings, Tesla plans to build its Gigafactory on anywhere from 500-1,000 acres of land in the aforementioned states. The company expects the factory to run at full capacity in about 2020, employing 6,500 people and producing around 500,000 cars. 

We wonder if California was on the list for consideration. If so, why did we fall short? Of course, we can't expect every manufacturer to pick California for the next investments, but we should expect our fair share. California offers abundant resources, skilled workers, access to markets and other benefits. We urge state leaders to determine if Tesla would have expanded here if not for a reason that we should fix. This is a teachable moment - let's make appropriate changes and increase the odds that the next big decision by a California manufacturer will be in our favor.





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Governor's 'advanced manufacturing' summit launches new California focus

Posted by Gino DiCaro, VP, Communications on March 29, 2013

Summit pics

 
California manufacturers are capable of meeting extraordinary challenges and can be the engine of job creation if they have the resources, skilled workforce, and long-term support of state and local communities.  This week, with a day-long Summit in Sacramento, the Governor's office took an important first step in launching a new focus on 'advanced manufacturing' growth in California.

The Summit's three panels made up of industry, workforce development professionals, research entities, and academic experts from universities and community colleges brought to the forefront a landslide of critical issues.

The Industry panel discussed the tremendous cost pressures and the fact that all manufacturing is in fact 'advanced' in California.  CMTA members Boeing and Bayer delivered essential input on those cost pressures.

The Academia and Research folks covered the difficulties of connecting the regions' needs to costly technical training and education programs, as well as the need for the technical training to start before college.

The Government Resource group shed light on the difficulties of training and attracting skilled workers to the small to mid-size and highly specialized manufacturers that make up a majority of California's industrial base.

You can watch the entire webcast here and read the key quotes below.

Following the discussions, the panelists and the audience broke into working groups to begin putting together potential action items for the state to grow our high wage 'advanced manufacturing' sector.  The lists were long but CMTA's Jack Stewart ensured the sales tax exemption on manufacturing equipment was listed and seen as a reform that could help the broadest number of manufacturers compete in the domestic and global market.
 
CMTA was pleased to be a part of a new commitment to grow high wage manufacturing jobs and fill them with skilled workers from our high schools, community colleges, and universities.  The Governor's Senior Advisor for Jobs and Business Development, Mike Rossi, and the Director of Governor Brown's Office of Business and Economic Development, Kish Rajan will enjoy our continued support and participation as they take the next steps to create a short and long term action plan for California.
 
 
Following are some key quotes we (@cmta) tweeted during the March 27 Summit (from last to first):
 
 
GoBiz’ Kish Rajan in closing: We need to get CA in the pole position for the race for advanced #manufacturing.  #govcams
 
 
Community College’s Jose Anaya: hardest manufacturing jobs to fill = technicians. #govcams
 

LAEDC’s Bill Allen: There are significant cost challenges to #manufacturing in CA. We need partnerships to address this. #govcams
 
 
WIB’s Tim Rainey:  If you are a manufacturer not using ETP funds to train your workers, you should be thinking about it. #govcams
 
 
Tim Rainey: Avg age is 55 in #manufacturing. We need to rise to this challenge and provide skills to our younger generations. #govcams
 
 
WIB’s Tim Rainey:  CA is now made up more of small to mid-size manufacturers.  We need to listen to their needs. #govcams
 
 
Jose Anaya: It’s become very expensive to train students in manufacturing. We need help.
 
 
LAEDC’s Bill Allen: LA County has twice as many #manufacturing jobs than we do in entertainment (360k vs180k) #govcams
 
 
UC Berkeley’s Dornfield: Must have tight link between the comm colleges and universities to provide manufacturing skills #govcams
 
 
UC Irvine’s Gregory Washington:  I would highly encourage kids to follow the manufacturing path.  #govcams
 
 
Prof Dornfeld, UC Berkeley - academia must better connect with industry and CA needs #govcams
 
 
UC Irvine at #govcams:  Relationships between industry & universities need 2 be strengthened 2 deliver the skills that industry needs.
 
 
Dean Washington, UCIrvine  Universities develop articulation agreements w/ comm colleges to pipe students to engineering schools. #govcams
 
 
Dr. Chris Beyer, CSU Long Beach.  Students must find their passion, not just fill classroom seats.
 
 
Boeing: Other states are chipping away at CA mnfg base.  We may still be the biggest but we have lost a huge amount of ground.  #govcams
 
 
Boeing: I don’t think we have explained to our kids and students how gratifying it is to have a #manufacturing job. #govcams
 
 
Paul Geery, Boeing is biggest US exporter. #govcams
 
 
Bayer: We work with disadvantaged youth 2 educate them on biotech process. We hired several people out of that program. #govcams
 
 
Gene Russell, MANEX, California's first step must to preserve existing manufacturing base. #govcams
 
 
MANEX: American Licorice company is ‘advanced manufacturing’ … it’s a Willy Wonka on steroids.  #govcams
 
 
MANEX: Academics need to focus on the needs of small and midsize manufacturers #govcams
 
 
Erin Gore, CFO, UC Berkeley manufacturing provides higher wage careers.
 
 
Morei Seiki’s Adam Hansel: Manufacturing is cool.  Best day of my life was putting our first products together to make our first machine.
 
 
Adam Hansel, Mori Seiki -- need more shop classes in high schools to prepare advanced manufacturing workforce . #govcams
 
 
Morei Seiki’s Adam Hansel: Anybody surviving in #manufacturing in CA is ‘advanced manufacturing’
#govcams
 
 
Adam Hansel, Mori Seiki -- difficult finding skilled workforce  #govcams
 
 
Boeing: affordability equation is a huge challenge for our industry and suppliers, especially in California. #govcams
 
 
Boeing on last mile #manufacturing: supply base in CA is $7 billion a year. 60% of money we spend is outside of the company.
 
 
Paul Geery, Boeing, $7 billion supply chain in CA. #govcams
 
 
MANEX: Community colleges will drive new skilled workers but it must start in high school.  #govcams  grow #careertech
 
 
Gene Russell, MANEX, huge shortage of machinists and welders in CA
 
 
Bayer’s Martin Grubbs at #govcams summit: getting the blue collar workforce better prepared at comm colleges is key .
 
 
Sandeep Duggal, EXTRON, final mile manufacturing -- $1 billion output with 100 CA workers. #govcams
 
 
Sandeep Duggal, EXTRON, huge misfit between US workforce skills and needs of high tech manufacturing. #economy #govcams
 
 
Morei Seki’s Adam Hansel at #govcams: We really need 2 think about how our decisions trickle down 2 smaller cos. that depend on bigger cos.
 
 
Adam Hansel, Mori Seiki -- manufacturing drives R & D. #govcams
 
 
Boeing at #govcams: National global realities are squeezing all of us. We need a sales tax exemption on #manufacturing equipment.
 
 
Paul Geery, Boeing, advocates sales tax exemption for manufacturers and hiring tax credit. #govcams
 
 
Boeing at #govcams advanced #manufacturing summit: in 2009 their CA payroll was $2.4 billion for more than 20,000 employees.
 
 
California Advanced Manufacturing Summit. Paving the way for California's manufacturing future. #govcams
 
 




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