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.
Tesla Prepares for Optimus Bot Production in California: Manufacturing Minute: Manufacturing Minute
This week's Manufacturing Minute highlights key advancements in robotics, aerospace, and AI-driven manufacturing. https://www.youtube.com/watch?v=SmJpn0xrMjQ Watch the latest Manufacturing Minute episode in the video player above. Tesla's Optimus Bot...
PG&E CEO Announced as Keynote Speaker at CMTA’s Annual Membership & Board of Directors Meeting: Manufacturing Minute
This week's Manufacturing Minute highlights key developments shaping the future of manufacturing and innovation. https://youtu.be/mbhCd5z_rIA Watch the latest Manufacturing Minute episode in the video player above. CEO of PG&E Announced as CMTA Annual...
Manufacturing Minute: Manufacturing Giant Bosch Awarded $225M to Expand Northern California Facility
In this week’s Manufacturing Minute, we highlight exciting economic developments and California’s leadership in growing the manufacturing industry. https://youtu.be/mqoklWrZSgA Watch the latest Manufacturing Minute episode in the video player above. Bosch’s...
Manufacturing Minute: California’s Getting a New Manufacturing Jobs Training Program
This week’s Manufacturing Minute highlights exciting advancements in workforce development, biomanufacturing, and defense technology. Manufacturing Minute is released bi-weekly by the California Manufacturers & Technology Association and is powered by Tri Tool...
Manufacturing Minute: California Selected as Headquarters for National Semiconductor Technology Center
This week’s Manufacturing Minute spotlights exciting advancements in California’s manufacturing landscape. Manufacturing Minute is released bi-weekly by the California Manufacturers & Technology Association and is powered by Tri Tool Technologies....
PG&E and Acena Consulting Join CMTA as Associate Members
Sacramento, Calif. – The California Manufacturers & Technology Association (CMTA) is proud to welcome two new associate members, Pacific Gas and Electric Company (PG&E) and Acena Consulting to the association. Both companies bring significant expertise that...
California Manufacturers & Technology Association (CMTA) Kicks Off Manufacturing Month
Sacramento, Calif. – The California Manufacturers & Technology Association (CMTA) kicked off the start of a month-long celebration to recognize California’s 30,000 manufacturers. October is known as Manufacturing Month, with the first Friday of October, October 4,...
Solano Economic Development Corporation and California Manufacturers & Technology Association Announce Strategic Partnership
Sacramento, Calif. – The Solano Economic Development Corporation and the California Manufacturers & Technology Association (CMTA) announced today it is entering a strategic partnership to bridge the gap of state and local resources for advanced manufacturing...
CMTA’S President & CEO Releases Statement on Passage of AB 98 (J. Carrillo)
Sacramento, Calif. – California Manufacturers & Technology Association (CMTA) President and CEO, Lance Hastings, released the following statement on the passage of Assembly Bill 98 (J. Carrillo), the statewide mandate on warehouse operations. “On Sunday evening,...
CMTA’s CEO & President Releases Statement on Gov. Gavin Newsom Vetoing Manufacturing Tax Credit, AB 52 (Grayson)
Sacramento, Calif. – Late Friday evening, California Governor Gavin Newsom returned AB 52 (Grayson) to the Legislature without his signature. This bill would have provided an investment tax credit for the purchase of manufacturing equipment. In his veto message,...
Press Releases
Tesla Prepares for Optimus Bot Production in California: Manufacturing Minute: Manufacturing Minute
This week’s Manufacturing Minute highlights key advancements in robotics, aerospace, and AI-driven manufacturing.
Tesla’s Optimus Bot Production at Fremont Facility
Photo Courtesy of Sundry Photography
Tesla, a CMTA member, is expanding its robotics division, hiring engineers at its Fremont factory to advance production of the Optimus humanoid robot. The company has listed at least 12 new positions, signaling momentum in its automation efforts. CEO Elon Musk recently stated that Tesla could build up to 10,000 robots this year, with deliveries beginning in 2026. As the company scales production, Musk estimates that once output reaches one million units annually, the Optimus bot could be priced as low as $20,000. This expansion marks Tesla’s strategic move to diversify beyond electric vehicles and tap into emerging automation markets.
Honeywell Splits into Three Focused Companies
Photo Courtesy of Robert
Honeywell International, a CMTA board member company, has announced plans to streamline its portfolio by spinning off its aerospace and automation divisions into independent public companies. Honeywell Automation will focus on industrial technologies and software to enhance productivity, while Honeywell Aerospace will continue supplying propulsion, cockpit, and navigation systems for commercial and defense aircraft. The split, set for completion in late 2026, follows Honeywell’s earlier decision to separate its advanced materials business, further refining its focus on automation, aviation technology, and clean energy. These strategic moves position the company for long-term growth in high-tech manufacturing sectors.
Stellantis Leverages AI for Automotive Innovation
Photo Courtesy of piter2121
In another major development, Stellantis, a CMTA board member and the world’s fourth-largest automaker, is expanding its strategic AI partnership with Mistral AI. This collaboration aims to revolutionize vehicle engineering, enhance in-car experiences, and optimize manufacturing operations through AI-driven innovation. Leveraging Mistral AI’s expertise in large language models and automation, Stellantis plans to strengthen data analysis, streamline product development, and improve customer interactions. A key initiative includes developing an advanced AI-powered in-car assistant to provide real-time, conversational support for drivers. As automakers increasingly integrate AI to refine manufacturing processes and accelerate innovation, this partnership reinforces Stellantis’s leadership in AI-driven automotive advancements.
Stay up to date with all manufacturing news by following CMTA on social media.
PG&E CEO Announced as Keynote Speaker at CMTA’s Annual Membership & Board of Directors Meeting: Manufacturing Minute
This week’s Manufacturing Minute highlights key developments shaping the future of manufacturing and innovation.
CEO of PG&E Announced as CMTA Annual Meeting Keynote Speaker
The California Manufacturers & Technology Association is proud to welcome Patti Poppe, CEO of Pacific Gas and Electric Company (PG&E), as the keynote speaker for the CMTA Annual Membership & Board of Directors Meeting. With extensive leadership experience at CMS Energy, DTE Energy, and General Motors, Patti brings invaluable insights into the evolving energy landscape. Beyond her role at PG&E, she serves on multiple industry boards, shaping the future of energy and infrastructure.
This two-day event, taking place March 26-27, 2025, at the Parker Palm Springs, will bring together CMTA members, legislators, and business leaders to discuss the state of manufacturing in California. Patti will share her expertise on energy transformation and its impact on the industry, alongside other distinguished speakers addressing key trends and innovations shaping the sector.
Stratolaunch’s $24.7M Hypersonic Flight Agreement
Photo Courtesy of Stratolaunch
In another major aerospace industry development, CMTA member Stratolaunch has been awarded a $24.7 million competitive agreement by the Missile Defense Agency (MDA) to support national defense through a cutting-edge hypersonic flight mission.
This funding will enable modifications to Stratolaunch’s Spirit of Mojave 747 launch platform, expanding the reach of its reusable Talon-A hypersonic vehicle to global locations. Set for the fourth quarter of 2025, the test mission will enhance the United States’ ability to develop and refine missile defense systems against emerging hypersonic threats. Stratolaunch’s advancements in hypersonic technology reinforce its position as a leader in national security innovation.
ZM Trucks Announces First U.S. Manufacturing Plant
Photo courtesy of ZM Trucks
Rounding out this week’s news, ZM Trucks, North America’s newest zero-emissions commercial truck brand, has announced the establishment of its first North American manufacturing plant in Fontana, California.
This milestone also marks the relocation of its regional headquarters to the 210,000-square-foot facility, further cementing its commitment to sustainable transportation solutions. The new plant will serve as the foundation for ZM Trucks’ U.S. operations, producing electric commercial trucks, terminal tractors, and airport ground service equipment. With production set to begin in the first half of 2025, ZM Trucks is poised to play a pivotal role in advancing clean energy transportation across the country.
Stay up to date with all manufacturing news by following CMTA on social media.
Manufacturing Minute: Manufacturing Giant Bosch Awarded $225M to Expand Northern California Facility
In this week’s Manufacturing Minute, we highlight exciting economic developments and California’s leadership in growing the manufacturing industry.
Bosch’s $225M California Facility Expansion
Photo Courtesy of Bosch
Bosch is investing $1.9 billion to expand its Roseville, California, facility, supported by up to $225 million in federal CHIPS and Science Act funding and a matching CalCompetes Tax Credit. This expansion will focus on producing silicon carbide (SiC) power semiconductors, essential for improving the efficiency and performance of electric vehicles (EVs). The project is expected to create up to 1,700 jobs, including roles in construction, manufacturing, and engineering, significantly boosting local employment and U.S. semiconductor manufacturing capabilities. This initiative positions California at the forefront of clean energy innovation and advanced manufacturing growth.
California’s Leading the Way in Manufacturing
California’s strength in manufacturing was recently recognized as San Jose, also known as the Capital of Silicon Valley, was named the top manufacturing hub in the United States in a study by ABM Equipment. The study looked at factors like jobs, wages, and local economic impact. With over 50,000 people working in manufacturing—about 12% of all jobs in the city (according to the City of San Jose)—San Jose has proven to be a leader in innovation and industrial growth. This recognition shows the importance of investing in workers and infrastructure to support future success. Los Angeles, California, also ranked among the top three hubs, highlighting the value of manufacturing to local economies nationwide.
California’s Leading the Way in Manufacturing
CMTA’s 2024 Back to Session Open House
As the 2025-2026 legislative session kicks off, CMTA is hosting its annual Back to Session Open House on Tuesday, January 21. This event is a chance for CMTA members, regional partners, and lawmakers to connect and talk about key issues in California’s manufacturing industry. With light refreshments, small bites, and a welcoming atmosphere, the event will bring a fun evening of networking, sharing ideas, and building relationships.
To attend, please RSVP to Catalina Lira at clira@cmta.net or visit our event page for more details.
Stay up to date with all manufacturing news by following CMTA on social media.
Manufacturing Minute: California’s Getting a New Manufacturing Jobs Training Program
This week’s Manufacturing Minute highlights exciting advancements in workforce development, biomanufacturing, and defense technology. Manufacturing Minute is released bi-weekly by the California Manufacturers & Technology Association and is powered by Tri Tool Technologies.
Central Valley’s Latest Game-Changing Workforce Development, FAME Program
Industry leaders gathered for the 9th Annual San Joaquin Valley Manufacturing Summit where the launch of FAME chapter was announced. Photo Courtesy of Frank Lopez
At the 9th Annual San Joaquin Valley Manufacturing Summit, industry leaders celebrated the launch of California’s first Central Valley Federation for Advanced Manufacturing Education (FAME) chapter. This employer-led program will provide hands-on training, technical education, and industry certifications to prepare the next generation of manufacturing professionals. Lance Hastings, president and CEO of CMTA, described the program as a game-changing solution to the skills gap.
“FAME is not just another training initiative, it’s a groundbreaking, employer-led program that closes the skills gap in manufacturing by training and equipping our next generation of professionals,” Hastings said.
FAME will collaborate with local manufacturers and educational institutions to create a robust pipeline of skilled workers, ensuring a bright future for the San Joaquin Valley’s manufacturing sector.
U.S. Department of Defense Investing in Biomanufacturing
The Department of Defense announced the final nine awardees in its Distributed Bioindustrial Manufacturing Program (DBIMP), bringing the total to 34 recipients and over $60 million in funding. Among the awardees are several California-based companies, including Amyris, Checkerspot, EVERY Company, and Perfect Day.
These firms will develop plans for domestic bioindustrial manufacturing facilities under the Defense Industrial Base Consortium agreement, with potential access to up to $100 million in additional funding. This initiative supports Executive Order 14081, which aims to strengthen America’s bioeconomy, advance biotechnology, and enhance national security through innovative biomanufacturing solutions. Learn more about it here.
Expansion of a California Defense Manufacturing and Design Engineering Center
Photo Courtesy of Pacific Defense
Pacific Defense, a leader in Modular Open Systems Approach (MOSA) products and mission solutions, is making waves in Silicon Valley. The company recently announced the expansion of its Manufacturing Operations and Design Engineering Center in Sunnyvale, California.
The state-of-the-art, ISO 9001-certified facility now spans over 20,000 square feet, offering advanced capabilities in hardware design, engineering testing, software integration, and production. By integrating design engineering with manufacturing operations, Pacific Defense enhances collaboration across teams, accelerating the transition from product design to production. This expansion positions the company to meet growing domestic and international demand for cutting-edge modular defense solutions, reinforcing its leadership in the industry.
Stay up to date with all manufacturing news by following CMTA on social media.
Manufacturing Minute: California Selected as Headquarters for National Semiconductor Technology Center
This week’s Manufacturing Minute spotlights exciting advancements in California’s manufacturing landscape. Manufacturing Minute is released bi-weekly by the California Manufacturers & Technology Association and is powered by Tri Tool Technologies.
California Selected as Headquarters for the National Semiconductor Technology Center
First, California has been chosen as the headquarters for the National Semiconductor Technology Center (NSTC), with the Design and Collaboration Facility (DCF) set to be located in Sunnyvale. Announced by the U.S. Department of Commerce and Natcast, the DCF will drive over $1 billion in research funding and create more than 200 jobs over the next decade. The facility will serve as a hub for advanced semiconductor research, including chip design, electronic design automation, and hardware security, fostering collaboration between industry leaders, academia, and government. This development solidifies California’s role as a vital component in the future of semiconductor innovation and workforce development.
Gallo Glass Awarded $5 Million for Hybrid Glass Furnace
Photo courtesy of Gallo Glass
In another significant development, CMTA member company Gallo Glass has secured $5 million in state funding for the construction of a hybrid glass furnace at its Modesto plant—the largest glass container production facility in the U.S. The new furnace, supported by both state and federal funding, will enable Gallo to significantly reduce greenhouse gas emissions by shifting from 90% reliance on natural gas to 80% electricity. This project is a significant step toward decarbonizing the U.S. glass industry, aligning with California’s aggressive goals for energy efficiency and sustainability. Gallo plans to have the hybrid furnace operational by 2028, marking a new chapter in environmentally friendly manufacturing.
Sparkz, A Lithium Battery Manufacturer, Opens in Sacramento
Photo courtesy of KCRA 3
Finally, Sparkz, a leader in lithium battery production, has opened a new state-of-the-art facility in Sacramento. This milestone was celebrated by federal and state leaders and represents a critical investment in California’s clean energy future. The Sparkz facility will focus on manufacturing lithium battery materials and cells essential for electric vehicles and renewable energy storage, generating hundreds of local jobs. By onshoring lithium battery production, Sparkz is not only driving innovation in the energy sector but also contributing to California’s leadership in the clean energy transition.
Stay up to date with all manufacturing news by following CMTA on social media.
PG&E and Acena Consulting Join CMTA as Associate Members
Sacramento, Calif. – The California Manufacturers & Technology Association (CMTA) is proud to welcome two new associate members, Pacific Gas and Electric Company (PG&E) and Acena Consulting to the association. Both companies bring significant expertise that will benefit CMTA’s mission of supporting and strengthening California’s manufacturing industry.
“We are thrilled to welcome these two companies as new associate members,” said Lance Hastings, CEO & President of CMTA. “Acena Consulting’s expertise in tax strategy and PG&E’s energy solutions will provide valuable resources for our members, helping them meet challenges and drive innovation in California’s manufacturing industry.”
PG&E provides natural gas and electric services across Northern and Central California, supporting the energy needs of more than 16 million people. The utility has over 105,000 circuit miles of electric distribution lines and 42,141 miles of natural gas distribution pipelines.
“We are incredibly excited to partner with CMTA as we look to engage with and support our manufacturing and technology customers,” said Aaron Johnson, Senior Vice President at PG&E. “These companies are the foundation of California’s economic engine, and we are honored to help them thrive.”
Acena Consulting is a premier tax consultancy that specializes in areas such as the R&D Tax Credit and Cost Segregation, helping businesses maximize financial opportunities. The company is committed to supporting the manufacturing industry and contributing to the economic vitality of California through their work.
“We are excited to join CMTA and contribute to their mission of supporting and growing California’s vibrant manufacturing sector,” said Nick Pyzow, Director at Acena Consulting. “We believe our expertise will be a valuable resource for CMTA members looking to optimize their financial performance.”
By bringing PG&E’s energy solutions and Acena’s tax consulting expertise into the fold, CMTA members will have access to critical resources that will help them streamline operations, stay competitive, and push the boundaries of innovation in California’s manufacturing sector.
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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.
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), is a combined natural gas and electric utility serving more than sixteen million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com and pge.com/news.
About Acena Consulting
Acena Consulting is a tax consultancy firm specializing in helping businesses maximize tax deductions and leverage financial opportunities. Their services include R&D Tax Credit Support and Cost Segregation. For more information, visit Acena’s website.
California Manufacturers & Technology Association (CMTA) Kicks Off Manufacturing Month
Sacramento, Calif. – The California Manufacturers & Technology Association (CMTA) kicked off the start of a month-long celebration to recognize California’s 30,000 manufacturers. October is known as Manufacturing Month, with the first Friday of October, October 4, 2024, named as MFG Day nationwide by The Manufacturing Institute.
Manufacturing is one of California’s largest industry sectors, accounting for 11.8% of the state’s GDP. The CMTA works to promote the reality of modern manufacturing in California, which employs 1.3 million people.
“Manufacturing is growing: The jobs available in the industry are highly skilled, and highly technical as the goods produced adapt to our new world, but we are facing a workforce crisis,” said Lance Hastings, CMTA’s CEO & President. “This month is a way to highlight the clean, high-paying jobs available in manufacturing and shine a spotlight on the opportunities for the next generation of makers.”
Manufacturing is not only good for the economy, but the California Assembly’s Committee on Jobs, Economic Development, and the Economy has labeled it a “gold standard” for jobs, “because of the higher wages paid to workers, the inclusion of small businesses within its extended supply chains, and the high multiplier effect on their local communities and across the state.” The average annual salary for a manufacturing worker in the state is $143,515. The Milken Institute estimates that for every job created in manufacturing, 2.5 jobs are created in other sectors.
It is imperative to highlight manufacturers of all sizes during the month of October. Our small and medium-sized makers account for a large portion of the industry, with 64% of the state’s manufacturers having 25 employees or fewer.
Throughout the month of October, manufacturers across California and the country celebrate the industry that is vital to our economy and communities. The CMTA will celebrate Manufacturing Month at its 2nd Annual MakingCA Conference & “Coolest Thing Made in California” Awards Ceremony on Friday, October 18, 2024.
To raise up the next generation of manufacturers, the CMTA hosts an Annual CMTA Foundation Golf Tournament that has helped raise tens of thousands for scholarships to benefit students to pursue a career in the manufacturing industry. This year will be the third year of the tournament.
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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.
Solano Economic Development Corporation and California Manufacturers & Technology Association Announce Strategic Partnership
Sacramento, Calif. – The Solano Economic Development Corporation and the California Manufacturers & Technology Association (CMTA) announced today it is entering a strategic partnership to bridge the gap of state and local resources for advanced manufacturing companies in the region.
Acknowledging Solano County’s decisive role in advancing manufacturers to the region, CMTA aims to support the businesses making California. Solano County employs over 12,000 manufacturing employees across 270 companies in the region, according to the most recent data. As Solano’s manufacturing scene continues to grow, CMTA will also play a pivotal role in supporting Solano County’s Advanced Manufacturing Plan to ensure strong benefits and seamless processes to bring new manufacturers to the region.
“Supporting our state’s local manufacturing ecosystems are imperative to keeping manufacturing jobs in California,” said Lance Hastings, CMTA’s CEO & President. “This collaborative partnership marks a major advancement in our commitment to support Solano and the state’s economic growth.”
Solano County is known as being the Bay Area’s trade corridor for goods and services, and this directly correlates to its strong manufacturing base of advanced materials, biotechnology and biomedical, and food and beverage. Many CMTA members are located in the region, including Anheuser-Busch, Jelly Belly Candy Company, and Valero Energy Corporation.
“We are thrilled to officially finalize our partnership with the CMTA as it marks a major step forward in strengthening Solano County’s manufacturing ecosystem,” said Chris Rico, Solano EDC’s President & CEO. “This collaboration aligns with our advanced manufacturing strategy, a key recommendation from our Moving Solano Forward 3 economic study, and supports our mission to create local jobs that reduce the need for long commutes for our residents. Together with CMTA, we are excited to empower our manufacturers with the resources they need to thrive and succeed.”
In a collaborative effort, all new CMTA members within the Solano region will automatically receive a Solano EDC membership, allowing their companies to gain CMTA membership benefits and Solano EDC support.
CMTA represents over 400 businesses across the state, with benefits including but are not limited to; access to our government relations team advocating manufacturing priorities in Sacramento, money-saving programs for employee training through the Employment Training Panel (ETP), and engagement with local industry leaders through events and networking opportunities.
Solano EDC benefits include but are not limited to; confidential site location assistance to new businesses looking to locate to the region, city and county, access and guidance for permitting and economic development needs, and participation in the Solano EDC Manufacturing Task Force.
By leveraging the organization’s resources, Solano EDC and CMTA are poised to empower manufacturers across the region. CMTA and Solano EDC will be working closely to keep manufacturers informed, provide state and local resources, and provide a unified network for businesses in the region. Learn more about the partnership here.
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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.
About Solano Economic Development Corporation
Solano EDC’s mission is to positively impact the economic growth of Solano County by maintaining and enhancing a competitive location for businesses to expand and locate, providing direct service to scale local traded sector industries, attracting new jobs and investment, and connecting businesses with resources to meet their needs. The EDC collaborates with the cities, county, workforce development, utilities, and education to deliver all resources. For more information, visit Solano Economic Development Corporation’s website.
CMTA’S President & CEO Releases Statement on Passage of AB 98 (J. Carrillo)
Sacramento, Calif. – California Manufacturers & Technology Association (CMTA) President and CEO, Lance Hastings, released the following statement on the passage of Assembly Bill 98 (J. Carrillo), the statewide mandate on warehouse operations.
“On Sunday evening, California Governor Gavin Newsom signed AB 98, a bill regulating logistics and warehouse facility development, passed by the Legislature without consulting manufacturers. The provisions of AB 98 were revealed in the last few days of the legislative session, receiving very little review prior to passage.
Despite its aim to address environmental concerns, AB 98 imposes strict and ambiguous restrictions on facility locations, posing significant challenges to California’s 30,000 manufacturers, who often operate as temporary warehouses by moving and storing products on-site. Most business organizations opposed the bill due to its broad and detrimental impact on an already costly regulatory landscape. The rigid mandates will adversely affect industries beyond warehousing and may lead to job losses, ultimately harming the economy.
In their joint statement, the California Chamber of Commerce, California Retailers Association, California Restaurant Association, and California Apartment Association praised the bill as a sensible compromise. However, this perspective overlooks the reality that AB 98 imposes severe constraints that could stifle economic growth and innovation. The claim that it avoids negative impacts is misguided; the bill will instead exacerbate the challenges faced by our manufacturers.
The Governor has now vetoed manufacturing’s top priority (AB 52) and signed manufacturing’s biggest threat (AB 98). The California Manufacturers & Technology Association advocates for a more strategic approach to achieving the state’s environmental goals while supporting economic growth. We will propose legislation next year to minimize the impact of AB 98 on manufacturers across the state. We need leaders who backs manufacturing with more than just words—too much is at stake for California’s economy.”
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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.
CMTA’s CEO & President Releases Statement on Gov. Gavin Newsom Vetoing Manufacturing Tax Credit, AB 52 (Grayson)
Sacramento, Calif. – Late Friday evening, California Governor Gavin Newsom returned AB 52 (Grayson) to the Legislature without his signature. This bill would have provided an investment tax credit for the purchase of manufacturing equipment.
In his veto message, Governor Newsom stated this bill would have a significant impact on the state general fund and should be considered in the annual budget process.
California Manufacturers & Technology Association CEO and President Lance Hastings released this statement in response to the veto:
“On behalf of the California Manufacturers & Technology Association, the 30,000 manufacturers and 1.3 million workers in the sector, we are extremely disappointed in Governor Newsom for not supporting this much-needed legislation after it was passed unanimously by both houses of the Legislature. This is the second time he has vetoed a manufacturer’s investment tax credit within the last two years and over that time we have sought to work with the Administration to highlight, promote, and expand manufacturing in California. His veto sends a strong and daunting signal to the rest of the country – and world – that manufacturing is not an economic priority in California.
By not aligning with 38 other states that already provide similar investment credits for manufacturers, California faces the real possibility of losing our top ranking in manufacturing, which would lead us slipping from the 5th largest economy in the world and falling behind in global competitiveness. We urge the Governor and Legislature to join us in a constructive dialogue about modernizing our tax framework to recognize that manufacturing and strong support of research and development, are essential to foster a robust manufacturing sector that drives job creation and economic growth. Let’s work together to cultivate an environment where California can thrive as a leader in manufacturing – starting immediately.”
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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.