Viewing blog posts written by Rob Sanger


Go-Biz tax credit and other CA incentive programs for 2017

Posted by Rob Sanger, on Jan. 4, 2017

GO-Biz Now Accepting Applications for California Competes Tax Credits


The Governor’s Office of Business and Economic Development (GO-Biz) is now accepting applications for the California Competes Tax Credit (CCTC).  There are $100 million in tax credits available during this application period for businesses that are expanding and adding full-time jobs in the state.  The deadline to submit applications is Monday, January 23, 2017, at 11:59 p.m. (Pacific Time) and the online application website will automatically close once this deadline has passed. 

See if your competitor accessed these funds in 2016:  http://www.business.ca.gov/Portals/pdf

Contact Rob Sanger, 916-498-3334, for details about this and other California-focused incentive programs. Even if you are not hiring new employees, but you are investing in new equipment or other capital improvements, your company may still qualify.





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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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Continued manufacturing job growth lag in CA

Posted by Gino DiCaro, VP, Communications on Sept. 16, 2016

California's jobs report this week showed a loss of 3,400 jobs in August, indicating a continued industrial growth lag in California.  Since the recession the country's manufacturing job base grew by 7.2 percent while California grew by only 3.6 percent. Here's a look at some specific regional and industrial states: Indiana up 17.3 percent, Michigan up 33.3 percent, North Carolina up 6.7 percent, Arizona up 7.5 percent, Oregon up 13.2 percent, Nevada up 10.7 percent.

 





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Let’s get to the bottom of this 500,000 green jobs number

Posted by Gino DiCaro, VP, Communications on Aug. 27, 2016

Growing green jobs is a reason state leaders cite to support ambitious climate change policies.  The policies will spark technological innovations and entrepreneurship to create new industries and jobs but they often say nothing about the losses that may be suffered by consumers and other businesses. 

Senate Pro Tem Kevin deLeon said the following after SB 32 and AB 197 passed this week to set a new climate change target for 2030: 

"We have empirical evidence that's very clear that we have created 500,000 brand new jobs in the clean energy space ... This is not about reducing carbon in the abstract. This is about economic growth. That’s why we are the 6th largest economy in the world. There is rhyme and reason why we have this legislation – its because it leads to job growth."

The California Center for Jobs & The Economy has this to say about green job creation in California. Some highlights:   

  • The “500,000 new jobs” claim has been voiced since 2011, casting serious doubt on the validity of the number.
  • Next 10 identified only 180,0000 green jobs in their 2014 report and has since even reduced that number.
  • A report by Advanced Energy Economy Institute, a primary report used by many advocates, claims 142,000 advanced electricity generation jobs. But EDD data (the government’s gold standard for job tracking) says California has only 18,900 jobs total in the entire sector of "Electric Power Generation, Transportation & Distribution."

Most importantly, the “500,000 new clean energy jobs” claim does not account for jobs lost due to costs in other sectors such as manufacturing.  California’s 1.28 million high-wage manufacturing workers should be concerned that creating a phantom number of new green jobs at their expense is a measure of success for climate policies.





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Pay attention to manufacturing in the climate debate

Posted by Dorothy Rothrock, President on Aug. 26, 2016

In the wake of the Legislature passing new climate change bills this week, Governor Brown was asked about the impact on jobs. Part of his answer was “Manufacturing has been declining as a part of the American workforce for decades, and the decline in America generally is very similar to California.”  

Manufacturing is actually thriving in the United States.  Companies are increasingly choosing to relocate to the US due to wage growth in developing countries, logistical concerns, and poor intellectual property protection outside the US. It’s a good thing, too, because the direct jobs and ripple effect of manufacturing in the broader economy makes the US a powerhouse nation. A recent study by the MAPI institute showed that each manufacturing job supports a whopping 3.4 other non-manufacturing jobs.  

While the US as a whole is becoming more attractive to manufacturing than in prior decades, we have work to do in California. CMTA tracks manufacturing jobs and investment data in California compared to other states.  Since the recession ended in 2010 we have seen only slow job growth in California while other states are enjoying the boom.  In 2015, California had the lowest rate of all states for manufacturing investments for expansions or new sites. We haven’t received more than two percent of total US investments since the year 2000. That is far short of the 11 percent we need to attract each year to maintain our share of US manufacturing GDP.

It’s impossible to attribute any single state policy, even a big one like climate change, to any particular job growth or loss.  Many costs of doing business, litigation risks, and permitting challenges discourage investment and job creation in California.  But that shouldn’t give lawmakers a pass to not consider economic impacts when they adopt climate change policies. This is especially true when success depends on other states, who want to preserve their strong manufacturing economies, being willing to adopt similar policies and making meaningful reductions in global climate emissions.   

California voters support climate change laws but also want to protect manufacturing. In a recent poll by the California Business Roundtable, when asked if they support new climate change regulations the answer is a resounding “yes.” But when asked if they would support these policies if middle-class manufacturing jobs would be lost, 66 percent said they opposed.  

Reasonable regulations can be developed to achieve both environmental and economic goals for California.  Manufacturing jobs in California produce greener and cleaner products for the world.  It’s good policy and good politics to make sure manufacturing, in particular, is part of the climate change agenda. 





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