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CA Economy and Environment The Role of Manufacturing Industrial Council of Contra Costa March 18, 2015 Dorothy Rothrock President, CMTA www.cmta.net CMTA Board Member Companies Alcoa Fastening Systems Allergan Altria Client Services, Inc. Anheuser-Busch Companies, LLC. AT&T California Baxter Healthcare Corporation Bayer HealthCare Berg McAfee Companies Bishop-Wisecarver Corp. BP America, Inc. California Steel Industries, Inc. CalPortland Company Chevron Chrysler LLC Eli Lilly & Company ExxonMobil Corporation General Dynamics - NASSCO General Motors LLC Intel Corporation International Paper Company Johnson & Johnson Koch Companies Public Sector, LLC MillerCoors, LLC Northrop Grumman Space & Technology Novartis Pharmaceuticals Corporation Occidental Petroleum Corp. Owens-Illinois, Inc. Paulson Manufacturing Corporation Pfizer Inc PPG Aerospace Praxair, Inc. RAI Services Company Shell Oil Company Solar Turbines, Inc. The Dardanelle Group, Inc. The Dow Chemical Company USS-POSCO Industries Valero Energy Corporation CA mfg supports environment & public health – Mfg jobs are higher wage and pay taxes – Mfg innovation creates new, better, products to improve health and environment – Mfg multiplier effect adds additional tax revenue to support safety net public health and education – Mfg’ers invest in energy efficiency and comply with strict environmental standards – lowering global GHG emissions. How is mfg faring in California? Challenges for CA Mfg • Cost of doing business – 16 to 33% > US average • Electricity Rates – 70% higher than US average (Dec 2014) • Cap and Trade – auction costs and benchmarks • Worker’s Comp – Highest in US per $100 of payroll • Skilled Workers – Hard to find! The good news: • Mfg Tax Programs: Sales tax exemption and CalCompetes job credits (until 2022) • Career Tech Education grant proposal – this year CMTA MFG AGENDA Policies and tools to accomplish state goals • • • • • Technologically feasible climate change goals Extend the mfg tax and job credit policies Workforce development funding and strategies Modernize the labor code to add flexibility Remove barriers to energy management and efficiency Dorothy Rothrock [email protected] 916.498.3319 www.cmta.net