Economic Development

California manufacturers have been at the forefront of global leadership and innovation. Our member companies look to continue partnering with policymakers to implement pro-growth strategies in California and support creating statewide plans that incentivize investments and employment. 

Press Releases

CMTA Government Relations Update: California’s Manufacturers May Lose a Major Training Program

This month’s Government Relations Update video highlights crucial legislative developments for California’s manufacturing sector. 
Both the Assembly and Senate have a huge deadline on Friday, May 24, 2024, to pass bills introduced in their house of origin. In the days leading up to this deadline, both houses are intensively reviewing and voting on various bills. This legislative activity is critical for manufacturers to monitor, as the outcomes will shape the regulatory and operational landscape for the sector. 

A significant point of concern for California’s manufacturing industry is Senate Bill 1321, spearheaded by Senator Aisha Wahab. This bill proposes an overhaul of the Employment Training Panel (ETP), which has been instrumental in providing workforce development funding. The ETP has allocated over $26.7 million, benefiting more than 37,000 employees in the manufacturing sector. However, the proposed changes threaten to dismantle this vital program, jeopardizing sustainable jobs and career pathways. The California Manufacturers & Technology Association (CMTA) identifies this bill as a Manufacturing Breaker Bill as it is a potential disruptor to the stability and growth of the industry. 

Another concerning bill for California’s manufacturers is Assembly Bill 2083, led by Assemblymember Marc Berman, which mandates the California Energy Commission to assess the feasibility of reducing greenhouse gas emissions from industrial heat applications by 85% below 1990 levels by 2045. While the bill aims for significant environmental advancements, its current form is flawed due to its narrow focus on zero-emission and electrified equipment, excluding more cost-effective and technologically viable alternatives like hydrogen fuel and carbon capture. AB 2083 is an attempt to force the California industry away from natural gas in a manner that is not cost-effective or technologically possible at this time. Cost is even more concerning given that the legislature is considering eliminating R&D tax credits and minimizing the Net operating losses for businesses as part of the budget due to California’s most recent updated budget announcement. CMTA identifies AB 2083 as a Manufacturing Breaker Bill. 

 

Do you want to get exclusive government relations insights from CMTA?  📲 Reach out to members@cmta.net.

Manufacturing Minute: Siemens Mobility Selected to Manufacture Trains for High-Speed Rail Project

This week’s Manufacturing Minute brings forth exciting developments shaping the future of the nation’s high-speed rail ambitions and industry growth in the Golden State.

Siemens High-Speed Rail Project  

Courtesy of Brightline West

Siemens Mobility, a train manufacturer with a hub in Sacramento, CA, has been selected as the “preferred bidder” for Brightline West’s high-speed rail project. This is a development that is set to revolutionize travel between Las Vegas and Southern California. 

With the introduction of the innovative American Pioneer 220 (AP 220) train sets, Siemens Mobility is promising cutting-edge technology and a passenger experience tailored for the U.S. market. The high-speed rail project promises to take passengers from Rancho Cucamonga to the Las Vegas Strip in two hours.  

This infrastructure milestone signifies California’s leap into high-speed rail technology and amplifies the nation’s manufacturing capabilities.  

California’s Bold Investment in Innovation  

Courtesy of Office of Governor Gavin Newsom

California’s Governor announced the state would invest $120 million in tax credits to eight pioneering companies. Gov. Gavin Newsom made the announcement this past April, explaining how this funding will help create good-paying jobs and support the economy.  

“California’s economy is the fifth largest in the world and we’re supporting workers and businesses as they reach success,” Newsom said. “This funding will help businesses create good-paying jobs — from steel manufacturing in Kern County to sustainable lithium production in Imperial Valley — and support the state’s economic dominance for years to come.” 

This huge investment in California is expected to generate more than 2,100 full-time jobs with an average annual salary of over $100,000 and bring in an estimated $15.5 billion in private investment over the next five years. 

The funding from the Governor’s Office of Business and Economic Development (GO-Biz) comes from the California Competes program that was created in 2013 to help businesses grow and stay in California.

Fremont Economic Development Department Partners with CMTA in First-of-its-Kind Collaboration

Fremont Economic Development Department Partners with CMTA in First-of-its-Kind Collaboration

This is the first city partnership in CMTA history.

Sacramento, Calif.In a first-of-its-kind collaboration, the California Manufacturers & Technology Association (CMTA) and the City of Fremont’s Economic Development Department are entering a private-public partnership to increase the visibility of the City’s brand and profile statewide – supporting Fremont’s manufacturing sector and economy.

Fremont is home to 900 manufacturers, supporting nearly 60,000 jobs. With more than one in every three jobs in the city in manufacturing, Fremont is rightfully nicknamed “The Hardware Side of the Bay.”

“This unique collaboration marks a significant milestone in our commitment to driving economic prosperity and fostering innovation with our manufacturers,” said Lance Hastings, CEO & President of CMTA. “Fremont’s vibrant manufacturing landscape is evident to anyone driving through on any given day. Manufacturing is the foundation of our economy. Together, we’re forging a path toward innovation, collaboration, and sustainable growth.”

Fremont has a diverse manufacturing ecosystem that reaches top sectors, including biomedical manufacturing, battery R&D and manufacturing, cleantech, robotics, autonomous vehicles R&D and manufacturing, and semiconductor equipment manufacturing.

“Fremont serves as the foundry for Silicon Valley, where companies making physical technologies come to scale,” said Donovan Lazaro, Economic Development Director for the City of Fremont. “With more manufacturing jobs than anywhere else in the State, it makes perfect sense to join many of our companies and our Chamber who are already CMTA members and become a member ourselves. We look forward to collaborating with CMTA to bring greater awareness and resources to this vital sector and advancing California manufacturing.”

While much of the Bay Area saw a rapid decline in office workers during the pandemic, Fremont experienced a venture capital boom in the life sciences sector and many of the city’s workers held essential roles in manufacturing.

“I am immensely proud to lead a city that not only spearheads advanced manufacturing but also holds a prominent position within Silicon Valley and our national economy,” said Fremont Mayor Lily Mei. “Fremont has become a thriving hub that champions innovation, propels job growth, and actively contributes to reshoring manufacturing companies. The City’s impact on the national level as a leader in made-in-America manufacturing is a testament to our city’s and my unwavering dedication and transformative potential to the industry.”

CMTA Board Member company Boehringer Ingelheim’s only U.S. biopharmaceutical manufacturing facility is in Fremont. With a workforce of over 500 individuals, it handles development and manufacturing from small-scale to commercial levels and continues to make major investments in its Fremont GMP manufacturing campus.

Tesla, a CMTA member and one of the largest manufacturing employers in California, employs 25,000 workers from across the region at its Fremont facility. The Tesla Model Y, manufactured in Fremont, was crowned the winner of CMTA’s inaugural Coolest Thing Made in California competition in 2023.

Fremont is a champion for manufacturers, celebrating National Manufacturing Day since its inception 13 years ago – coordinating local factory tours for an entire week and hosting the country’s biggest city-organized event.

The City also works tirelessly to create a sustainable workforce pipeline for graduating students to enter the industry. Through multiple workforce development programs, Fremont partners with local schools including Fremont Unified School District and Ohlone Community College’s Smart Manufacturing Technology (SMTech) Program, Tesla Manufacturing Development Program, and the Biotechnology Department to foster the next generation of manufacturers.

Through harnessing their combined knowledge and resources, Fremont and CMTA stand ready to enhance their influence and support manufacturers throughout the region.

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About CMTA

The California Manufacturers & Technology Association (CMTA) has advocated for pro-growth laws and regulations before the California legislature and administrative agencies since 1918. The total output from manufacturing in California is $300 billion per year, roughly 10 percent of the total economic output of the state. Manufacturers employ 1.3 million Californians paying wages more than $25,000 higher than other non-farm employers in the state. For more information, visit CMTA’s website.

About City of Fremont

Fremont is a hub for innovation – becoming home to various leading-edge industry clusters, including advanced manufacturing, clean tech, and life sciences. One of the most ethnically and culturally diverse cities in the Bay Area, Fremont prides itself in its diversified, globally-connected economy. As the fourth largest city in the Bay Area with over 234,000 residents, businesses here are known to succeed, and residents and visitors experience high-quality lives, services, and programs from nationally-recognized high-ranking schools, 1,224 acres of well-kept parks, and 50 million square feet of flex industrial and R&D space, as well as a wide range of affordable housing options. Centrally located in the heart of Silicon Valley, Fremont is conveniently served by two interstates, multiple rail transport lines including BART, and has easy access to three international airports, the Port of Oakland, and several major educational institutions, making it easy for the community to explore the abundant opportunities the Bay Area has to offer. For more information, visit the City of Fremont website.

‘This could really impact the manufacturing sector right here in California’: Study Says Manufacturing in U.S. Could Need Up to 3.8 Million Workers

Sacramento, Calif. – As many as 3.8 million manufacturing jobs will need to be filled in the next decade as the industry continues to advance post-pandemic, according to a new study by Deloitte and the Manufacturing Institute.

California Manufacturers and Technology Association’s (CMTA) CEO & President Lance Hastings joined KCRA 3 News on Thursday, May 2, 2024, to give insight into what this means for California’s manufacturing workforce and the solutions to fill the workforce gaps.

“This could really impact the manufacturing sector right here in California,” Hastings told KCRA 3 Anchor Brandi Cummings.

Watch the interview with KCRA 3 News Brandi Cummings in the video player above.

The new study found the “manufacturing industry has emerged from the pandemic on a solid growth trajectory, and continued growth is expected over the next 10 years as companies work to meet evolving customer demands, de-risk their supply chains, and leverage government incentives and policies.”

Hastings says the challenges to filling these jobs come from a convergence of variables. What Hastings calls the ‘Silver Tsunami’ with a wave of retirements is one reason for the need to backfill jobs while simultaneously seeing positions opening due to an increased growth in the sector. The manufacturing industry is thriving post-pandemic as significant investment drives it forward into more advanced manufacturing. These investments are being seen at the federal level with the Biden Administration’s CHIPS Act and at local state and municipal levels with tax credits and other investments across the country.

“The manufacturing jobs are highly skilled and technical, a lot of computers are involved. So, the skill gap that we have right now versus the previous manufacturing of heavy lifting, more active kind of jobs is different – it’s evolving, and we have to adapt,” Hastings said about moving forward with new types of manufacturing positions opening in the field.

CMTA aims to help aid in the industry’s growth by shaping and changing the narrative: “It’s not dirty, dark and dangerous like it used to be,” Hastings said. “Trying to attract people into this sector even with our great paying jobs, we’re finding to be difficult… In particular in California, we’re so innovative, and technologically focused. California’s jobs profile is a bit different than other states.”

The study finds that the demand for digital skills is accelerating as technological innovation continues.

“Deloitte and The Manufacturing Institute’s analysis show that, in the last five years, there has been a 75% increase in demand for simulation and simulation software skills, sought mostly for technology-enabled production or testing roles,” the study states. These roles include semiconductor processing technicians, machinists, first-line supervisors, welders, and electronics and electromechanical assemblers.

The solution? Start educating the next generation early, Hastings says.

“It starts in elementary school, it starts in high school when you start to tell everyone about what career opportunities are [out there], that may or may not require a college degree. That’s where we can really start to make a change,” he said.

CMTA is working directly with California’s top leaders, including Gov. Gavin Newsom, “on ways to infuse activity and capital into the manufacturing sector.”

Watch the interview with FOX40’s Sonseeahray Tonsall in the video player above.

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About CMTA

The California Manufacturers & Technology Association has advocated for pro-growth laws and regulations before the California legislature and administrative agencies since 1918. The total output from manufacturing in California is $300 billion per year, roughly 10 percent of the total economic output of the state. Manufacturers employ 1.3 million Californians paying wages more than $25,000 higher than other non-farm employers in the state. For more information, visit CMTA’s website.

Opportunity Stanislaus and California Manufacturers & Technology Association Announce Strategic Partnership

Opportunity Stanislaus and California Manufacturers & Technology Association Announce Strategic Partnership

Opportunity Stanislaus (OS) and the California Manufacturers & Technology Association (CMTA) forge a dynamic partnership to strengthen the manufacturing sector in the Northern San Joaquin Valley and across California.

Sacramento, Calif.Recognizing the pivotal role of manufacturers for California’s economy, CMTA is highlighting its presence in the Central Valley, aiming to enhance support for manufacturers in Stanislaus County and beyond. In a collaborative effort, CMTA and OS will reciprocate membership within their respective organizations, fostering a stronger network.

With manufacturing contributing significantly to California’s economic landscape, accounting for 10.36% of the state’s total output and employing 7.57% of its workforce, this partnership comes at a crucial juncture. Total output from manufacturing stood at $324.43 billion in 2019.

“I am thrilled to join forces with a venerable organization like CMTA,” Dave White, CEO of Opportunity Stanislaus, said while expressing his enthusiasm about the collaboration. “Their steadfast commitment to the welfare of California manufacturers and their proactive approach to addressing industry needs through various programs make them an ideal partner.”

The two organizations will actively promote each other’s programs to their membership base and engage in joint initiatives aimed at addressing critical policy issues affecting California manufacturers. Additionally, they will unite forces to organize programming that celebrates the manufacturing industry while providing essential technical training and support to manufacturers.

“This collaboration represents a significant step forward in our mission to champion the interests of California manufacturers,” said Lance Hastings, CEO & President of CMTA. “Together with Opportunity Stanislaus, we are poised to make meaningful strides in advancing the manufacturing sector and driving economic growth.”

By leveraging their collective expertise and resources, Opportunity Stanislaus and the California Manufacturers & Technology Association are poised to amplify their impact and empower manufacturers across the region.

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About CMTA

The California Manufacturers & Technology Association (CMTA) has advocated for pro-growth laws and regulations before the California legislature and administrative agencies since 1918. The total output from manufacturing in California is $300 billion per year, roughly 10 percent of the total economic output of the state. Manufacturers employ 1.3 million Californians paying wages more than $25,000 higher than other non-farm employers in the state. For more information, visit CMTA’s website.

About Opportunity Stanislaus

Opportunity Stanislaus is a non-profit economic development organization serving business needs in Stanislaus County and the Northern San Joaquin Valley. Opportunity Stanislaus provides many programs to the regional manufacturing community, including advanced manufacturing training through VOLT Institute. Many of the region’s manufacturers are investors in Opportunity Stanislaus due to the support they received through OS programs. Since 2016, OS has provided training and resources to more than 200 manufacturers. For more information, visit the Opportunity Stanislaus website.

 

Government Relations Update: Two Bills That Could Impact California Manufacturers

This month’s Government Relations Update video delves into crucial legislative developments impacting California’s manufacturing sector.  

California legislation’s fiscal deadline is April 26th. All bills with a fiscal impact are due for consideration by the Appropriations Committees, signaling a critical phase for proposed policies.
Assemblymember Luiz Rivas’s AB 2400 takes center stage, proposing an extension of the California Alternative Energy and Advanced Transportation Financing Authority Act (CAEATFA). This act, fostering partnerships to offer financing solutions, aims to slash greenhouse gas emissions and energize economic growth. Since the act’s establishment in 2010, the sales and use tax exclusion incentive program within CAEATFA for manufacturers of green technologies identifies a nexus between California’s economic and environmental goals. Since its inception, over 128,000 jobs have been created or retained, spurring investment that totals over $2.5 billion in fiscal benefits and $415 million in environmental benefits. AB 2400, a CMTA maker bill, stands to profoundly benefit California’s manufacturers.  

Assemblymember Diane Papan’s AB 2515 raises pivotal concerns for menstrual product manufacturers in California. The bill seeks to prohibit the sale of products containing any detectable PFAS, potentially exposing manufacturers to extensive liabilities and punitive penalties. While CMTA’s members are not intentionally adding PFAS chemicals to these products, the bill contains a private right of action and the ability to levy punitive financial penalties on manufacturers. Companies should not intentionally add these chemicals, but the legislation needs additional considerations before CMTA removes its opposition.   

Stay informed with the latest updates from the Government Relations Update video series, offering invaluable insights for manufacturers navigating California’s legislative environment. 

Do you want to get exclusive government relations insights from CMTA?

📲 Reach out to members@cmta.net.

Manufacturing Minute: Bloom Energy Awarded $75 Million for Fremont Facility Expansion

This week’s Manufacturing Minute brings insightful updates shaping the future of the U.S. manufacturing landscape.  

A joint study by Deloitte and the Manufacturing Institute gives the industry insight into the growth of manufacturers. The study estimates a demand for approximately 3.8 million skilled workers over the next decade. The study showcases the urgent need to cultivate a national talent pipeline, emphasizing roles such as statisticians, engineers, software developers, and industrial maintenance technicians. As manufacturing continues to thrive post-pandemic, investing in workforce development remains a priority for manufacturers to sustain the momentum.  

Bloom Energy secures $75 million in federal tax credits for its Fremont manufacturing plant. The Bay Area manufacturer was recognized for its dedication to expanding domestic manufacturing and fuel cell production capacity. The funding awarded to Bloom Energy is a part of the White House’s $4 billion initiative, which aims to accelerate clean energy manufacturing and reduce greenhouse gas emissions. With a focus on operational efficiency and stack capacity expansion, Bloom’s CEO, KR Sridhar, expresses optimism about the company’s growth. 

California Aerospace Day 2022

Mark your calendars for the celebration of California’s aerospace industry at California Aerospace Day, hosted by The Boeing Company and Lockheed Martin on June 5, 2024. The event promises a day filled with insightful panels on STEM/workforce development, Climate Change Technologies, and topics regarding innovation in the aerospace industry. Don’t miss this opportunity to engage with industry leaders and explore the exciting advancements shaping the future of aerospace in California.  

Register for FREE at CaliforniaAerospaceDay.eventbrite.com. 

Manufacturing Minute: The U.S. Department of Energy Awards Funding to California Manufacturers

Find out California’s manufacturing news in the latest Manufacturing Minute episode with CMTA’s Vice President of Communications, Ananda Rochita. Manufacturing Minute is powered by Tri Tool Technologies. 

This week’s Manufacturing Minute brings significant strides in decarbonization efforts across various energy-intensive industries in California. 
Several of CMTA’s board member companies, including Gallo Glass, International Paper, and ExxonMobil, are among the 33 recipients selected to deploy the first-in-the-nation emissions-reducing technologies. These projects are part of the U.S. Department of Energy’s previous announcement of up to $6 billion in funding through the Inflation Reduction Act and 2021’s infrastructure law. 

These projects not only aim to cut emissions but also potentially revolutionize the energy and transportation manufacturing sectors, reinforcing the future of U.S. manufacturers on a path toward sustainability. 

Photo Courtesy: Pacific Steel Group

Plans for the state’s first steel mill built in a half-century are in the works.  

The Kern County Board of Supervisors has officially approved the Pacific Steel Group’s plans for a scrap metal recycling and steel rebar mill. These plans mark a significant development in California’s manufacturing landscape, as this will be the state’s first mill constructed in over 50 years. The mill will span 174 acres and be powered predominantly by a 63-acre solar array to work towards sustainable manufacturing practices. With the creation of an estimated 400 full-time jobs post-construction, this project not only boosts local economies but also positions California as a hub for innovative steel production.  

Photo Courtesy: KTVU Fox 2 News

The U.S. Labor Secretary recently took a trip to one of the nation’s oldest bus manufacturers right here in California. 

The U.S. Secretary of Labor Julie Su’s recent visit to Gillig, a 134-year-old bus manufacturing company, highlights the connection between sustainable transportation and manufacturing. With a focus on investing in green technology and combating climate change, Su’s visit underscores the importance of infrastructure development and innovation in shaping the future of transportation.  

Gillig’s diverse propulsion systems helped showcase insights into electric vehicle performance and grid infrastructure. As research and development efforts intensify, the manufacturing sector remains committed to driving technological advancements that will redefine the landscape of sustainable mobility. 

Manufacturing Minute: Stratolaunch’s Hypersonic Test Vehicle Takes First Flight in California

This week’s Manufacturing Minute, powered by Tri Tool Technologies, highlights significant developments in the aerospace and technology sectors. 

Boeing, a board member of CMTA and member of the Aerospace and Defense Alliance of California (ADAC), secured a substantial $439.6 million contract to construct the 12th Wideband Global SATCOM (WGS) communications satellite for the U.S. Space Force. This contract will enhance crucial communication capabilities for military and allied operations.

Stratolaunch, LLC, another CMTA and ADAC member, celebrated a milestone with the successful inaugural flight of the Talon-A test vehicle. After multiple tests to fully power the Talon A, it took off from the Roc carrier plane and flew over the Pacific Ocean on the California coast at hypersonic speeds. Stratolaunch’s Roc plane is one of the largest in the world. The Talon A vehicle is pivotal in advancing privately funded hypersonic test capabilities. 

Finally, the Biden Administration’s $300 million in semiconductor packaging research and development funding is going out to companies. This funding is a commitment to bolstering technology innovation, particularly in the critical semiconductor sector, as part of the CHIPS for America program.  

These industry updates represent significant strides in aerospace technology and semiconductor research, showcasing the continued progress and innovation within California’s manufacturing industry. Watch your Manufacturing Minute powered by Tri Tool Technologies in the video player below.

Government Relations Update: New unemployment insurance bills you need to know about

The deadline for new bills is up! Learn what bills may affect your California Manufacturers in your Government Relations update from Ananda Rochita.

📝 CMTA is tracking over 200 bills
💰 Learn what bills may cost California’s manufacturers
🗓️ Almond Day is Official!

Do you want to get exclusive government relations insights from CMTA?

📲 Reach out to members@cmta.net.

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