Viewing blog posts written by Dorothy Rothrock


Send a signal to potential CA MFG investments now

Posted by Dorothy Rothrock, President on June 12, 2017

I penned the piece below this week for the LA Daily News on the urgency of extending the State's sales tax exemption on manufacturing equipment purchases. California must send a message soon that we want to attract the manufacturing jobs and investments we need to support a growing middle class in the State.

Guest Commentary: Manufacturers need help from California tax policy

Every day we hear about manufacturers embracing exciting new technologies to improve products, speed up production and be ever more efficient and environmentally responsible. Manufacturing workers are using robotics, sensors, 3D equipment and computerized supply-chain logistics to make their companies more competitive.

As the largest industrial state in the country, California must look for ways to capitalize on these trends by encouraging new manufacturing investments and jobs. Buying new manufacturing equipment is not cheap, but there is something our lawmakers can do to help.

Competitive tax policy for the purchase of manufacturing equipment is scheduled to expire in 2022. That sounds like a world away, but manufacturers are long-term planners who need more than five years of predictable tax policy to commit to major manufacturing investments. Unless we act soon, we will again become one of a few states that tax these purchases. … READ MORE ON LA DAILY NEWS





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Cal Tax says: "Let's encourage manufacturing in CA"

Posted by Gino DiCaro, VP, Communications on April 30, 2017

Last week, as the Legislature heard two bills to extend and improve a California sales tax exemption on manufacturing equipment purchases, the California Taxpayers Association (Cal Tax) president wrote a great piece for the OC Register on the importance of encouraging manufacturing investment in California. Most states either don't tax the purchases in the first place or provide some level of exemption. If the state's exemption was allowed to sunset, it would create a competitive disadvantage in California's ability to attract investment for the high wage sector.  Cal Tax analyzed the state's current temporary exemption and found that every $1 dollar of incentive claimed has created $23 in return investment.  Cal Tax's piece below. Share it around where you can.

Let's encourage manufacturing in California 

by Teresa Casazza -- President, Cal Tax
(ran in OC Register April 27, 2017)

While discussing California’s loss of manufacturing jobs, a colleague once quipped that at the rate we’re going, the only factory jobs left in this state will be at The Cheesecake Factory.

We haven’t gotten to that point yet, but it is true that the Golden State has been losing manufacturing jobs to other states and countries, in large part because of the high cost of doing business in California.

Even native California companies are moving operations to other states. The latest is Aerojet Rocketdyne, the pioneering aerospace company that is eliminating 1,100 jobs in Sacramento and creating 800 jobs in Alabama. You don’t have to be one of Aerojet’s rocket scientists to know that California needs to improve its jobs climate.

In 2013, the Legislature and governor approved an economic development plan to attract and retain high-paying manufacturing and research-and-development jobs. This legislation has been good for our economy, and has the potential to be great with a few adjustments — tweaks included in twin bills, Assembly Bill 600 and Senate Bill 600, by Assemblyman Jim Cooper and Sen. Cathleen Galgiani, respectively... READ MORE ON OC REGISTER





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Paying attention to manufacturing in California

Posted by Dorothy Rothrock, President on July 5, 2013

It’s about time manufacturing got a little love in the Golden State.  You would think that creating high-wage jobs, making multi-million dollar investments for innovative new products and providing huge multiplier effects in the broader economy would have justified a sales tax exemption on manufacturing equipment before now.  Nearly every other state has this.  For more than a decade CMTA has argued that manufacturing investment is the engine of the economy – and letting the manufacturing investment tax credit lapse in 2003 was a big mistake.  Yet a dozen bills introduced since 2003 failed to reinstate the credit.  California has suffered declining investments and manufacturing jobs as a result.   
 
This week, at long last, lawmakers passed a bill package including a sales tax exemption for manufacturing equipment.  Did they suddenly come to their senses on the importance of manufacturing and agree that this and perhaps other policies should be adopted to help manufacturers?  It is a nice thought, but we shouldn’t count on it. We must keep educating legislators and pushing for improvements to make California a better place for manufacturing.  There is much more work to be done. 
 
Let’s make this the first of many positive changes to turn California into a powerhouse for manufacturing investment and job growth.  Every manufacturer should start by thanking your local legislators for the vote last week.  Let them know that the exemption will help, but remind them about your many other challenges in the state.  Invite them to visit your facilities to meet your employees and tell them about your contributions to the community.  CMTA will continue to be a resource to you and champion for your interests in Sacramento. 





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A look at California's manufacturing scale ups by Senate District

Posted by Gino DiCaro, VP, Communications on June 14, 2013

Have a look at last year's California manufacturing facility investments by Senate District.  We received just under one percent of the country's investments but a few Senators can tout manufacturing scale ups in their districts.

 

Investment by Senate District map

 

(Data source: Conway Data, Site Selection Magazine)





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California awarded prize for economic development

Posted by Gino DiCaro, VP, Communications on May 30, 2013

 

Today, California won the "Silver Shovel" award from Area Development Magazine for remarkable success in growing high-wage jobs in recent years.  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 (Go Biz), Kish Rajan, deserve a lot of credit for beating the pavement and bringing lucrative investments to California.  

We know economic development doesn't just happen.  It takes a lot of work to make a region competitive so a company will invest large amounts of money to site a facility and hire employees.  California can be a good place to do business with the right combination of policies and recruitment savvy from local and state government experts.  

The projects that earned the "Silver Shovel" award were a $300 million Samsung research and development center planned in San Jose and an Amazon decision to build fulfillment centers in Patterson and San Bernardino.  Together they represent an investment of about $250 million and the creation of nearly 1,100 jobs.

These are substantial projects that will employ both middle class and professional workers which will expand government tax revenues. We hope manufacturing will be included in the next round of firms choosing California.  The state received only one percent of the country's manufacturing investments in 2012 -- 25 new or expanded facilities out of 3060 nationwide.   Manufacturers are sensitive to high operating costs and regulatory burdens, so Rossi and Rajan will need more tools to attract these valuable companies. A statewide sales tax exemption for the purchase of manufacturing equipment would be a good start. 

We congratulate Go Biz and hope that the state provides them more resources to bring home the critical manufacturing investments we need.  Next year, maybe the "Golden shovel"!





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