Labor & Employment
Fair, reasonable, and competitive labor and employment laws are vital to ensuring California manufacturers remain competitive.
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...
CMTA Update: New 2025 Laws for California Manufacturers
Sacramento, Calif. – Hundreds of new California laws are about to go into effect starting January 1, 2025. As a Golden State manufacturer and employer, are you ready for the latest rules set on businesses? As a CMTA-member exclusive benefit, continue to read for new...
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....
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,...
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,...
Supply Chain Operating System Startup for Manufacturers Joins CMTA
Sacramento, Calif. – The California Manufacturers & Technology Association (CMTA) welcomed new member, Soff, to the organization today. Based in San Francisco, Soff is a supply chain operating system for manufacturing companies. The startup company works to unify...
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,...
How AB 52, Manufacturing Tax Credit, Will Expand California Jobs
California manufacturing generates more than $394 billion annually and employs more than 1.3 million people with over 30,000 firms. Our manufacturers are the most significant contributor to the United States manufacturing industry, making up 11% of the manufacturing...
CMTA Government Relations Update: California Assembly Bill Would Create Tax Credit for Manufacturers
This month’s Government Relations Update video highlights crucial legislative developments for California’s manufacturing sector. https://youtu.be/F8B9bRRI5s8 This proposed legislation, which aims to introduce a manufacturing tax credit for qualified manufacturing...
Press Releases
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.
CMTA Update: New 2025 Laws for California Manufacturers
Sacramento, Calif. – Hundreds of new California laws are about to go into effect starting January 1, 2025. As a Golden State manufacturer and employer, are you ready for the latest rules set on businesses?
As a CMTA-member exclusive benefit, continue to read for new laws, new trends and key legislative updates you need to be aware of as a California manufacturer.
New Laws Starting January 1, 2025
AB 2499 (Schiavo) Employment: Unlawful Discrimination and Paid Sick Days Victims of Violence
This bill, which goes into effect at the beginning of the year, requires California employers to start offering expanded protection for crime victims and their families. This new law amends several existing California statutes to provide greater protection for those impacted by crime and expands the scope of leave and accommodations provided to them.
This includes any employees who are victims or whose family members are victims of qualifying acts of violence. Employers are no longer allowed to require workers to use vacation time before they take paid family leave.
Employees are also entitled to take time off work to help a family member who has been a victim of violence. They are allowed to use sick time to help cover their absence.
Under a separate law passed in 2019 that is just now going into effect, the California Employment Development Department will be required to provide applications for family temporary disability insurance benefits in languages spoken by a “substantial number of non-English-speaking applicants.”
Employers should prepare to comply with these new requirements by updating employee handbooks with legal counsel and training HR and managers under the law.
SB 399 (Wahab) Employer Communications: Intimidation
The second piece of legislation to be aware of as a business and employee is SB 399. This new law prohibits California employers from holding captive audience meetings or employer-sponsored meetings in which an employer communicates its views about religious or political matters.
California is the tenth state to ban these types of meetings.
SB 399 exposes companies of all sizes to liability for hosting or supporting political events and prevents employers from firing, retaliating against, or taking any other adverse action because an employee declined to attend an employer-sponsored meeting. This includes conversations about union representation.
How will you be impacted? Employees will be able to file complaints with the California Division of Labor Standards Enforcement or seek punitive damages. As a business, act quickly and carefully to review current policies related to workplace communications with your legal counsel, specifically those involving political, religious or union-related topics.
AB 2123 (Papan) Disability Compensation: Paid Family Leave
Another law that is affecting employee time off is AB 2123. Under this law, it is no longer legal for employers to require employees to use up accrued vacation time before they can access their benefits under California’s Paid Family Leave Program, also known as PFL benefits.
Employees can use their state-provided PFL benefits to care for a seriously ill family member, bond with a new child (newborn or foster/adoption), or participate in a qualifying event related to active duty service.
Now is the time to review leave of absence and vacation policies in employee handbooks. This new law may also impact companies in San Francisco with the city’s Paid Parental Leave Ordinance (PPLO).
AB 2515 (Papan) Menstrual Products: Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS)
AB 2515 expands the scope of an existing law that goes into effect on January 1, 2025. That law bans the manufacturing, selling, or delivery of any cosmetic product that contains intentionally added PFAs. AB 2515 similarly bans PFAS but is specific to menstrual products.
Under the new law, the Department of Toxic Substances Control is forced to establish regulations by 2029 that will prohibit the presence of any PFAs above a certain limit.
The bill creates a rigid framework for California’s manufacturers who do not intentionally add the chemical in question to their products.
Starting on January 1, 2027, manufacturers will need to register with the department to certify these new standards of operations at their facilities. The department will also have to list accepted testing methods for regulated PFAs on its website. By July 1, 2029, manufacturers will need to be in compliance or face financial penalties.
Bills CMTA is Tracking Through the Legislature
CMTA plans to bring forth AB 52 (Grayson) in front of the legislature once again in 2025. Investing in a manufacturing tax credit is the only way to encourage manufacturing growth. AB 52 is a tax credit bringing California in line with 38 other states that cover the taxes on qualified manufacturing purchases.
CMTA’s Government Relations Team is preparing for additional legislation on PFAs in consumer products, legislation promoting circularity, and extended producer responsibility obligations, and various proposals associated to climate change, energy, and labor and employment.
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.
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.
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.
Supply Chain Operating System Startup for Manufacturers Joins CMTA
Sacramento, Calif. – The California Manufacturers & Technology Association (CMTA) welcomed new member, Soff, to the organization today.
Based in San Francisco, Soff is a supply chain operating system for manufacturing companies. The startup company works to unify supply chain data and automate core workflows, with the goal of helping companies bring products to market faster.
“Manufacturing is at a pivotal turning point as the industry adjusts to and explores the cutting-edge technology that is artificial intelligence (AI). Implementing AI into our manufacturing processes will expand the horizons for the industry,” said Lance Hastings, CEO & President of CMTA. “We are thrilled to have Soff join CMTA as new members and look forward to them joining us at our MakingCA Conference in October as panelists.”
Soff was started in 2024 by two German engineers, Berni Hausleitner and Raban von Spiegel. Hausleitner saw first-hand the supply chain inefficiencies from a manufacturers viewpoint while working as a full-stack engineer at Tesla on the autopilot team.
“Manufacturers are in crisis mode, battling supply chain disruptions,” said Hausleitner, Co-Founder of Soff. “All eyes are on supply chain managers, who must rise to the occasion. However, they are left with archaic tools, forcing them into painful and redundant workflows. This is why we’re building Soff.”
Von Spiegel and Hausleitner paired together to build Soff after Von Spiegel worked as a purchasing manager at one of Soff’s customers.
“We’re incredibly excited to join the CMTA. This opportunity allows us to further accelerate our mission to transform supply chain management in manufacturing, and we’re excited to collaborate with other forward-thinking companies in the CMTA network,” said Raban von Spiegel, Co-Founder of Soff.
Today, supply chain data lives across email inboxes, spreadsheets, ERPs and other point-solutions. This fragmentation, Soff says, leads to out-of-sync data and wild workarounds.
Soff unifies supply chain data into one platform, automating time-consuming tasks like data entry, RFQs, quote comparisons, and issuing POs. Soff saves customers dozens of hours each week while eliminating costly errors and delays. Soff enables manufacturers to deliver higher-quality products faster. Companies like SpaceX (Warpdrive), Rivian (Basecamp), and Apple (Incline) spend millions on building their in-house supply chain tools—Soff brings that level of efficiency to any manufacturer.
Von Spiegel will speak at CMTA’s MakingCA Conference on a panel diving into how to harness AI to revolutionize manufacturing in California. Hear him speak, and learn more about the conference 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 Soff
Soff provides supply chain software for manufacturing companies. Founded in 2024, Soff works with Californian manufacturers like Zipline to automate core supply chain workflows. Supply chain managers use Soff to streamline quote requests and automate ERP data entry. The company was started by engineers from Stanford and Tesla. For more information, visit Soff’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.
How AB 52, Manufacturing Tax Credit, Will Expand California Jobs
California manufacturing generates more than $394 billion annually and employs more than 1.3 million people with over 30,000 firms. Our manufacturers are the most significant contributor to the United States manufacturing industry, making up 11% of the manufacturing jobs in the nation and accounting for 14.5% of the national manufacturing GDP.
California can strengthen its leadership in innovation and manufacturing by investing in a manufacturing tax credit.
AB 52 (Grayson) transforms the current incentive landscape, making manufacturing investment in California far more competitive and bringing us in line with 38 other states that already cover the taxes on qualified manufacturing purchases.
Let’s end the trend of “Invent Here, Build There.”
Watch more about how AB 52 will benefit California’s manufacturing workforce here.
CMTA Government Relations Update: California Assembly Bill Would Create Tax Credit for Manufacturers
This month’s Government Relations Update video highlights crucial legislative developments for California’s manufacturing sector.
This proposed legislation, which aims to introduce a manufacturing tax credit for qualified manufacturing equipment and research and development (R&D) purchases, has recently cleared a critical hurdle, passing the Senate and Assembly Floors with unanimous support. It now moves to Governor Gavin Newsom’s desk for a final signature.
California is the nation’s leading state in manufacturing, boasting over 30,000 manufacturers who collectively employ more than 1.3 million people. However, the current economic conditions have not been favorable to the state’s manufacturers, particularly small to medium-sized ones. These businesses, which make up more than 70% of California’s manufacturing landscape, have faced increasing challenges due to the state’s high tax rates at the state and local levels.
AB 52 represents a potential game-changer for these manufacturers. If signed into law by Gov. Newsom, this bill will provide much-needed financial relief to manufacturers by offering tax credits for crucial investments in manufacturing equipment and R&D. This could significantly reduce operational costs, making it a more attractive option for businesses to remain and expand their operations within the Golden State.
AB 52 is projected to have a broader impact on California’s economy. The bill is expected to create approximately 163,000 new manufacturing jobs and generate up to $3.5 billion in new economic activity. The potential growth will benefit the manufacturing sector and contribute to the state’s overall economic vitality.
Moreover, AB 52 aligns with California’s environmental goals. By making it more affordable for manufacturers to invest in carbon-neutralizing products and equipment, the bill supports the state’s efforts to reduce its carbon footprint. AB 52 has the potential to help the state meet both its economic and environmental objectives, fostering a more sustainable industrial ecosystem.
One of the most promising aspects of AB 52 is its potential to reverse the trend of “Invent Here, Build There,” a situation where innovations developed in California are manufactured elsewhere due to cost concerns. By reducing these financial burdens, the bill encourages manufacturers to keep their operations within the state, allowing them to excel and contribute to California’s long-standing tradition of innovation.
Do you want to get exclusive government relations insights from CMTA? 📲 Reach out to members@cmta.net.