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Update: Most populous state in the U.S. attracts only 1.6% of reshored jobs

Posted by Gino DiCaro, VP, Communications on May 15, 2017

For the first time in decades, more manufacturing jobs are returning to the United States than are going offshore, but California, the most populous state in the Union, is struggling to compete for its share. Last week, the Reshoring Initiative, based out of Kildeer Illinois, updated their cumulative numbers of reported reshored jobs since 2010 to include the year 2016.

While the country continues to benefit from a substantial amount of companies finding fertile ground back in the U.S., California only gained 1.6 percent of the total share. Specifically we attracted 5,229 jobs of the total 325,996*.  On a positive note, our percentage is up a bit from 1.1 percent in last year's 2013-2015 report.

You’ll find the data in charts #8 and #9 at their report here.

 

*This is the reported number. The Initiative uses a formula for the larger total number in the narrative, which is 338,000. That would likely bring California’s percentage lower.

 

** This blog has been updated since it posted to reflect a mistake in the data time period. It was from 2013 to 2016, not 2010 to 2016.





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LAEDC issues report on LA manufacturing

Posted by Gino DiCaro, VP, Communications on Feb. 27, 2017

The Los Angeles County Economic Development Corp. released a report last week showing the loss of L.A. manufacturing jobs to lower paying jobs. Don't miss the LA Daily News article by Kevin Smith on the report: 

LA County’s manufacturing jobs have been replaced by lower paying work 

L.A. County’s manufacturing sector has suffered massive job losses over the last decade, but a new report points to worse news — those positions have been replaced by jobs that pay less than half as much.

That’s the sweep of a new report released Wednesday by the Los Angeles County Economic Development Corp.

The region has lost 89,000 manufacturing jobs since 2007. Those jobs paid an average annual wage of $52,000. During that same period the county added 92,000 new jobs in the food service industry, but the average yearly pay for those jobs is just $20,000 ... READ MORE ON LA DAILY NEWS





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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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More pieces of the California manufacturing jobs story

Posted by Gino DiCaro, VP, Communications on April 15, 2016

There were some independent items worth noting in the California manufacturing employment narrative this week.

First the California Labor Market Information Department, in its monthly report this week, announced the loss of 1,600 manufacturing jobs in March. This decline brings California’s manufacturing jobs growth to 3.4 percent since the recession, while the U.S. grew its manufacturing base by 7.4 percent.

In the same week came an announcement from a southern California manufacturer, General Magnaplate, who said they would be shutting down their manufacturing facility in Ventura because of a difficult business climate and an unwarranted stormwater lawsuit against them. Magnaplate is a small manufacturer with only around 25 workers in their Ventura facility, but that means nothing to their employees who are left looking for work. The good news is that families in Texas and New Jersey will likely gain employment because the company’s facilities in those locations will pick up production. Just one example of the drips of manufacturing loss accumulating over the years in California.

With some of this bad news came good news, at least you’d think. The Advanced Energy Economy (AEE) Institute released a report this week indicating that the “Advanced energy” sector generated jobs at six times the rate of the overall California economy last year. The good news stops there. The problem is that often those jobs are coming at the expense of reduced job growth and investment in other areas of the economy.  If we are spending too much for those jobs then we incur even greater losses in the rest of the economy. The report even admits it on page 6: “California’s advanced Fuel Sector was the only segment of Advanced Energy that did not create additional jobs in 2015.  Challenged by several factors including persistently low gasoline prices, Advanced Fuels saw employment decline more than 50 percent from 2014, resulting in a loss of about 8,300 jobs.

Basically the AEE report tells us that if you raise prices on something you can get more people working on ways to reduce consumption. That is of course not a surprise. But when it comes to the entire economy, our collective data is telling us that our state is still lagging the country in manufacturing jobs and investment growth.





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