Viewing blog posts written by Gino DiCaro

Nebraska and Texas win Governor's Cup awards for investment

Posted by Gino DiCaro, VP, Communications on March 19, 2017

Site Selection magazine released their Governor’s Cup edition this week.  It reflects yearly capital investment project totals and awards a state for most projects and most projects per capita. 

Nebraska Gov. Pete Ricketts joins the elite club of governors to claim a Site Selection Governor’s Cup, by virtue of his state winning the Cup for most capital investment projects per capita (101 such projects for 2016 = 53.7 per 1 million people). 

Texas Gov. Greg Abbott claims his third Governor’s Cup for total qualified projects (642), and the State’s fifth consecutive such Cup. Texas’ winning streak began in 2009. Rounding out the top five in this category are Illinois, North Carolina (289) and Georgia (271). 

California ranked in the top 10 of total projects at 250 but only attracted 6.4 projects per 1 million people. We at CMTA have purchased the underlying data so we can report at a later date on the number of specific manufacturing investments per capita vs. the rest of the country.

You can read Site Selection Magazine's report HERE.

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Update on California's manufacturing job trend

Posted by Gino DiCaro, VP, Communications on April 25, 2014

California's monthly jobs report last week showed that we lost another 1,700 manufacturing jobs even though the state added 11,000 non-farm jobs and our our overall unemployment rate stayed the same.  We continue to lag the nation's manufacturing growth by a substantial margin since we started to recover from the recession in 2010.  Manufacturing jobs in the U.S. are up 5.38 percent while the Golden State lags with only a .53 percent increase.  

The Labor Market Information Department also predicted in a February report that manufacturing is the only private industry in the state that is set to lose jobs over a two-year period between 2013 and 2015.

The growing and consistent acknowledgement from the Governor and his recruitment team Go-Biz that manufacturing is critcal to California's success -- given its tremendous salaries, innovation, workers and ripple effects in the economy -- gives us hope that their leadership will get all Californians and policymakers to do their part to help improve this trend.  


MFG jobs chart




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Updated California manufacturing investment

Posted by Gino DiCaro, VP, Communications on March 12, 2014

Last month we showed you how California shaped up for manufacturing investments in the first three quarters of 2013.  We just got the fourth quarter numbers and we have updated our chart below to indicate how it looks for the entire year.  Basically we got 1.5 percent of the nation's new or expanded facilities, accounting for 1.2 investments per one million people in California.

The numbers don't look good but believe it or not, it is a small improvement from last year.  Our economy will depend on big improvements in the coming years and we'll have to learn what will drive more manufacturing to our state.  In the wake of California-based Tesla's announcement to grow 6,500 manufacturing jobs outside of the Golden State, we've learned we can't take any manufacturing for granted -- even an electric vehicle producer.  

We know that California's economic development agency Go-BIZ did all they could to get Tesla to build their large facility here.  Go-BIZ constantly talks to us about what they can do to help manufacturers compete.  For reasons we'll likely never know, Tesla opted to go elsewhere.

This data and the Tesla announcement provide a teachable moment.  We can't win them all, we just need to win our fair share.  CMTA and Go-Biz can't do this alone.  We need a virtual tsunami of manufacturing champions at the state level to help Go-BIZ deliver competitive packages to manufacturers looking to make long term investments.  


Investment chart



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Is California comfortable with manufacturing investment levels?

Posted by Gino DiCaro, VP, Communications on Feb. 9, 2014

California's economy is improving.  Our unemployment rate is down two percentage points over the last year and our state revenue growth has, for the first time in a while, allowed the Governor to project a small surplus in 2013.  

Still California has far too many workers either unemployed or underemployed. The state currently has the second largest percentage of underemployed at 18.3 percent. A big reason is that we continues to lag the country in manufacturing employment growth and in the ever-important manufacturing investment trend. In the first three quarters of 2013, California was dead last among all states in per capita manufacturing investments at 1.17 new or expanded facilities per one million people.  Even worse, the state only reeled in 1.97 percent of the nation's expansions and new sites. 

It's not because California isn't trying. The state's rebuilt recruitment agency, GoBIZ, is doing everything they can to pitch our state's manufacturing benefits -- including a new manufacturing sales tax exemption -- and recruit new scale ups but the competition is tough.  One of the more telling trends is that we're lagging more in expansions than we are in new facilities.  That means the existing manufacturers -- the ones that know the most about operating in California -- are opting to scale up in other regions.

Manufacturing provides a gateway to the middle class for many workers, pays an average $76,000 wage in California and creates many other opportunities in the economy.  Job growth in manufacturing can even allow the state's most vulnerable to move out of poverty.  Our comfort level with an improving economy must not mask our declining facility investments.  Manufacturing champions like GoBIZ, CMTA and others need the state's regulators and policymakers to focus on turning this trend around.

Below is a look at how California stacks up to the country.

Manufacturing investments chart

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California needs more champions of manufacturing

Posted by Gino DiCaro, VP, Communications on Nov. 22, 2013

California's manufacturers are capable of meeting extraordinary challenges and will be the engine of job creation if they have the resources skilled workforce and the long term support of state and local communities.

California's unemployment rate fell from 8.9 percent to 8.7 percent in October but California unfortunately lost another 5,600 manufacturing jobs according to this week's Labor Market Information report.  

Even with a few previous growth spurts in the Golden State's manufacturing sector, the overall trend since 2010 shows a widening gap between the United States' 4.59 percent manufacturing job growth and California's 0.55 percent.  

While the recent loss and the overall trendline vs the country does not bode well for California's economy and middle class workers, there are positive developments that should be noted along with some of the previous job increases.

We have a commitment from the Governor's Office of Economic and Business Development (GoBiz) to grow this industry and a consistent acknowledgement from them that California's economy needs this innovative and high wage industry that pays an average $77,000 salary.  They are making strides in attracting and retaining manufacturing and making sure the industry knows it is their priority.  See some of their tweets from this week pasted below, showing recent expansions from China, conversions from printing faciliities to manufacturing plants, aerospace growth, etc.    

We appreciate all that GoBiz is doing to champion new policies to grow manufacturing and put boots on the ground to recruit and retain investments.  We can't turn this trend around without their unfettered and unending committment.  On the flip side, they also can't do it alone.  They need an army of local and state leaders with an intense dedication to the entire statewide effort.   Every new policy and inititative should at the very least not harm the plan to grow manufacturing and in many cases seek to grow the sector with real outcomes.  

It will take a consolidated effort from both the policymakers as well as the economic development soldiers tasked with growing the economies of their regions within the state's borders.   Everyone should be encouraging manufacturers to plant their economy-boosting roots here in California.  


manufacturing employment chart


Some tweets this week from GoBIZ:


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