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

Posted by Gino DiCaro, VP, 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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Illinois MFG leader steps up for MFG agenda (and #MFGDay16)

Posted by Gino DiCaro, VP, Communications on Sept. 22, 2016

Manufacturing job numbers are growing at a larger scale in the rest of the country and in other competitor states, as we stated last week in our own jobs report. Illinois however is one of the few other states facing the same daunting business and political climate as California and has seen only 2.6 percent manufacturing job growth since the recession. As manufacturers you will be interested in Illinois Manufacturers Association president Greg Baise's recent message to Illinois policy makers at the City Club of Chicago. Greg has embarked on an ongoing tour to attract attention to the need for legislators to embrace a Middle Class Manufacturing Agenda, much like the campaign CMTA has taken on here in California.

Please take a moment to watch Greg's remarks to encourage leaders in Illinois to create stability and focus on developing an environment more conducive for growth. 

The Illinois Manufacturers’ Association has sent a copy of the speech and a personal letter to all 177 lawmakers in Illinois challenging them each to call and visit three manufacturing companies in their district during Manufacturing Month in October. The message of manufacturing is catching on across the country, especially with the fourth annual Manufacturing Day upon us. California currently has 158 events scheduled for Manufacturing Day (#MFGday16) this October 7th. CMTA would also like to challenge our 120 legislators to visit manufacturing companies in their district on the 7th or sometime during the month.





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MFG lagging CA industries in post recession job growth

Posted by Gino DiCaro, VP, Communications on Aug. 5, 2016

California, like the rest of the country, is rebounding and we hear a lot about the state's overall job growth and success. Much is true but it's important to understand what's happening in manufacturing -- an industry with an average wage around $80k, tremendous innovation and technological benefits, and one of the largest value chain multipliers among all sectors. 

Since 2010 California manufacturing, with only 3.4 percent job growth, is only ahead of the mining and public government sectors by a small margin in terms of percentage job growth. 

With low manufacturing growth California's middle class loses out on higher paying job opportunities and new technological skills. Further, almost all of our other sectors miss out on increased upstream supply chain opportunities and downstream manufactured goods. Put simply, manufacturing is steroids for overall economic activity and we could be doing so much better!

 

 

 

 





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