Labor & Employment

Fair, reasonable, and competitive labor and employment laws are vital to ensuring California manufacturers remain competitive. 

 

ISO Certifications Leading to $250k in Tax Credits

Did you know that improving manufacturing processes can qualify for the Research and Development Tax Credit? IMSM, leading ISO specialists, has partnered with Strike Tax Advisory, a firm that enables all businesses to take advantage of the R&D tax credit with no...

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.

‘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.

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. 

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.

Manufacturing Minute: Samsung Opening New Semiconductor Campus in Northern California

A tech industry giant just announced its brand-new semiconductor facility in the Sacramento region. Find out California’s latest manufacturing news in the newest Manufacturing Minute episode with CMTA’s Vice President of Communications, Ananda Rochita. Manufacturing Minute is powered by Tri Tool Technologies. 

⚙️ Find out why a California AI Robot Manufacturer partnered with BMW Manufacturing

⚙️ Learn more about the new semiconductor campus in the Sacramento region

⚙️ Tri Tool Technologies’ latest innovation

Government Relations Update: New Video Series on the Latest News in California’s Legislature

Ready to learn more about what is happening in California’s legislature? Check out our brand-new Government Relations Update video with CMTA’s Vice President of Communications, Ananda Rochita.

📝 Learn About California’s 2024 Intro Bills 

💰 Find out what is Going to Happen with California’s Projected Budget. 

⚙️ CMTA’s Sponsored Bills Are Coming Your Way Soon… 

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

📲 Reach out to members@cmta.net.

Manufacturing Minute: Governor Newsom’s Plans for a World-Leading Innovation Hub

Innovation in California is at an all-time high! Find out California’s latest manufacturing news in the newest Manufacturing Minute episode with CMTA’s Vice President of Communications, Ananda Rochita. Manufacturing Minute is powered by Tri Tool Technologies

⚙️ Siemens Mobility’s Sacramento facility is competing for a high-speed rail project between Merced and Bakersfield

⚙️ A former Southern California mall is transforming into a world-leading innovation hub. What Newsom says his plans are…

⚙️ Hear from the women transforming the manufacturing industry! Register for CMTA’s Women MakingCA Conference: https://WomenMakingCA.eventbrite.com

ISO Certifications Leading to $250k in Tax Credits

ISO Certifications Leading to $250k in Tax Credits

Did you know that improving manufacturing processes can qualify for the Research and Development Tax Credit?

IMSM, leading ISO specialists, has partnered with Strike Tax Advisory, a firm that enables all businesses to take advantage of the R&D tax credit with no out-of-pocket costs to ensure manufacturers realize both the obvious and not-so-obvious benefits of continuous improvement. A webinar detailing how manufacturers qualify, what expenses qualify, and walking through a case study of a manufacturing client will be hosted on January 24, 2024, at 11 am PST. Join the webinar here.

The manufacturing industry is one of the most qualified industries for the R&D tax credit. Manufacturing organizations that do process/product improvement or development are arguably the most qualified types of entities for this tax credit.  Examples of qualifying activities include: 

  • Designing and developing alternative processes
  • Processes to enhance throughput
  • Prototype development and testing
  • Evaluating new materials to impart improved functionality or performance
  • Creating novel equipment
  • Developing environmentally friendly products/processes
  • Developing new products
  • Implementing lean manufacturing processes
  • Computer-aided design (CAD) and 3D modeling

The R&D tax credit is a permanent U.S. federal and state tax credit used to encourage U.S. businesses to keep highly technical jobs within the U.S. and promote further innovation. The R&D tax credit provides dollar-for-dollar tax savings to businesses of any size, these credits are used to offset income tax liabilities OR quarterly payroll tax if not yet in a profitable position.

The average amount of total expenses that qualify in the manufacturing industry is 28%! Don’t believe this? Use this R&D calculator to get a rough idea of what your business can qualify for going back to 2020. The tax credit is eligible to all manufacturing organizations, ISO is not a requirement. However if your organization is ISO 17025 Lab Competency, ISO 170202 Conformity Assessment, ISO 13485 Medical Device, ISO 9001 Quality Management certified, you hold a high probability of qualifying.

So, why pay the IRS when the IRS can pay you?  Let an IRS-qualified tax credit expert explore the possibility of YOUR business tax credit by scheduling an appointment.  Call Tina Travierso at (858) 761-7738 or email for an appointment at tinatravierso@imsm.com.

International Management Systems Marketing (IMSM) is the leading ISO specialist with a goal to deliver world-class ISO consultations for organizations of all sizes, from all sectors, all over the world. IMSM is known as, a turnkey fail-safe consulting organization that supports a lean environment by drafting 75% of the operational manual and guaranteeing a pass on your International Standardized Operations (ISO) Certificate., Benefits of the various ISO include less returned merchandise, fewer defective products, lower workers and medical health insurance premiums, reduced OSHA fines, proof of corporate sustainability, and more RFP’s are won with ISO Certification as a result

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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 the CMTA website.

About IMSM:
IMSM (International Management Systems Marketing) are leading ISO specialists. We deliver high-quality ISO consultancy services and standards to organizations of all sizes, from all sectors, all over the world. As an organization, we work towards a common goal: to consistently deliver to our clients world-class ISO consultation, reinforced by adherence to our IMSM Mission, Vision, and Values. For more information, visit IMSM’s website.

Manufacturing Minute: Find Out How You Can Be More Involved with CMTA in 2024

It’s the first manufacturing minute of 2024! Find out what is happening this new year at CMTA in your Manufacturing Minute Powered By Tri Tool Technologies with CMTA’s Vice President of Communications, Ananda Rochita. 

⚙️ How a Fremont high-tech battery manufacturing facility met its demand
⚙️ California’s Legislators are back in session. Here’s what is next for CMTA’s Government Relations Team
⚙️ Here’s who is speaking at the 3rd Annual Women MakingCA Conference in March
 

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