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CA continues to lag US in MFG growth, LA county even worse

Posted by Gino DiCaro, VP, Communications on Oct. 1, 2018

Manufacturing’s vital contributions to the California economy are far out of proportion to its shrinking share of employment. 

California’s manufacturing sector boasts $87k average wages (2017), more than $288 billion in output (2017), a higher share of workers without a college degree than economy overall, and tremendous economic ripple effects from long supply chains and economic activity.

California is still the largest manufacturing state in the country with more than 1.3 million workers but given the state’s size, that doesn’t tell the whole story.  

With all of the benefits California reaps from manufacturing, it remains that the state simply is not keeping pace with the national resurgence. This is evident in California manufacturing job growth, investment growth and reshores as a percentage of the the rest of the country.  Manufacturing job growth in particular shows a 5 percent increase since 2010 in California, while the country grew at more than 11 percent. Further some of the regions that need manufacturing opportunities the most are seeing dismal manufacturing growth rates (See L.A. in chart). We simply can and must do better.

Costs and predicability are often the largest challenges for manufacturers to make long-term investment decisions in California. Electricity rates alone are 86 percent higher for the industrial class and 49 percent higher for the commercial class. Workers' compensation premiums are the highest in the nation. California-specific laws that pop up every year often make it difficult to understand if a manufacturer can compete long-term in the state. These challenges and more have created an environment that makes it difficult for California’s robust innovation and R&D to scale up actual manufacturing facilities in the state.

CMTA continues to present these facts to the Legislature and the media and we hope you can join us in telling the tremendous story of manufacturing benefits and opportunities, as well as the challenges of competing in California.

Below is an updated chart of manufacturing growth, with the percentage for the state's largest manufacturing region -- LA -- included.

(click image for larger pdf)





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CMTA in the field to promote MFG at four big events

Posted by Gino DiCaro, VP, Communications on Sept. 1, 2018

This is the time of the year -- after the Legislature has closed down for the session and before the holiday months ensue -- that provides a perfect opportunity for CMTA to go out into the field to promote the benefits of California manufacturing and some solutions to the sector's challenges.  

Among many events, there are four particular gatherings, for which CMTA'ers are participating, that should be of interest to manufacturers in their respective regions:

 

1. The Industrial Association of Contra Costa County Forum - "New Regulatory Climate: An Industry Leadership Perspective"

CMTA's Dorothy Rothrock will join Western States Petroleum Assn. President Cathy Reheis Boyd to discuss the implementation of AB 617, which is a bill that resulted from the 2017 cap and trade negotiations to further reduce air pollution in local air districts. Lots of industry from the East Bay will be on hand to discuss how to ensure CARB's proper implementation of the policy.

The forum will take place at Zio Fraedos Restaurant at 611 Gregory Lane, Pleasant Hill, CA.

Tuesday, September 11, 11:30 am to 1:30 pm

DETAILS

 

2. CALMatters panel on climate change - "California is a Global Model for Climate Policy"

CMTA's Michael Shaw is a panelist joining former State Senator Fran Pavley and John White, Executive Director for the Center for Energy Efficiency & Renewable Technologies, (and other TBD's) to discuss what has worked and what hasn't in California's ambitious climate change policies. 

The event will take place at the Public Policy Institute of California 500 Washington St, Bechtel Conference Center (1st Floor) San Francisco, CA 94111

Wednesday September 12, noon to 1:30 pm

DETAILS

 

3. IEA / CMTA 34th Annual Environmental Training Symposium and Conference - "Strategies for Success on California's Environmental Frontier"

CMTA's Dawn Koepke is a featured speaker, presenting on some of California's specific environmental regulatory requirements facing manufacturers.  There are many panels to see at this great annual conference co-hosted by CMTA.

The two-day conference will take place at the San Diego Convention Center at 111 West Harbor Drive, San Diego, CA 92101

Thursday, Sept 27 to Friday, September 28

DETAILS

 

4. The Ventura County Economic Development Assn. Business Outlook Conference - "Accelerating Value Creation: The Future of Manufacturing, Technology and Innovation in Ventura Co."

CMTA's Gino DiCaro will join other speakers and present the State of California Manufacturing, as well as some of CMTA's efforts in the State Capitol to address the challlenges of new manufacturing investment in California.

More than 200 attendees will attend the conference at the Ronald Ronald Reagan Library in Simi Valley.

Friday, October 5 at 7:30 am 

DETAILS

** Coincidentally this event is happening on National Manufacturing Day (MFGday) and is a great way to further promote the tremendous benefits manufacturing brings to California's economy and working families





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