California - Global Trade Magazine
  June 26th, 2015 | Written by

California

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  • California is No. 1 in #manufacturing, including advanced manufacturing
  • California keeps a #trade office in China to help companies penetrate the Chinese market

TOP SITE SELECTION ORGANIZATIONS
The Governor’s Office of Business and Economic Development’s CalBIS unit is in the business of helping companies locate site options for office, manufacturing, research and development, or distribution facilities. The office provides confidential services tailored to meet the needs of individual companies. The experts at CalBIS analyze factors affecting a company’s decision, including taxes, human resources, training and workforce development, incentives, financing, utilities, permits, and specific real estate opportunities. The Governor’s Office of Business and Economic Development also serves as a company’s liaison to California’s regulatory agencies and local governments throughout the state.

SITE AVAILABILITY
The website of the Governor’s Office of Business and Economic Development Governor’s includes an interactive map which supplies detailed information about Calfonia regions, counties and localtities.
Business inclubators are concentrated in Los Angeles, San Francisco and Silicon Valley, many of them focused on specific sectors such as high tech, biomedicine and media. One of the focuses of the LACleanTech Incubator in Los Angeles is to help international companies enter the U.S. market.
PortTechLA works with the Port of Los Angeles to evaluate and fund technologies that support the port’s environmental initiatives. In northern California, Matter and Upwest Labs provide funding along with other business services.

WORKFORCE TRAINING
California’s community colleges are the hub for the state’s workforce training programs, including state-funded programs such as Industry Driven Regional Collaboratives (IDRC), the Job Development Incentive Fund (JDIF), and the Responsive Training Fund (RTF). Community colleges offer customized programs in everything from basic skills to advanced manufacturing techniques.
The California Corporate College works in partnership with community colleges to bring corporate training and workforce preparation services to California employers. The Employment Training Panel (ETP) is a state agency that reimburses California companies for the costs of job skills training, primarily for businesses threatened by out-of-state and international competition.

TOP INCENTIVES
The California Competes Tax Credit is available to businesses that want to locate or grow in California. A partial sales and use tax exemption is available on manufacturing, biotechnology, and research and development equipment purchases. A full exclusion can be applied to advanced manufacturing, transportation and alternative energy. A New Employment Credit is available through 2020 for employers that hire full-time employees in economic development areas. The California Small Business Loan Guarantee Program (SBLGP) assists businesses with the creation and retention of jobs while encouraging investments in low- and moderate-income communities.


BRIAN PECKDeputy director for International Affairs and Business Development, California Governor’s Office

californiaWhat are the strengths of California’s workforce?
We have a highly educated, highly trained and mobile workforce, all of which makes California an attractive destination for foreign companies looking to invest in the U.S.

What is your elevator pitch for manufacturing or logistics companies considering locating their next facility in California?
California is No. 1 in manufacturing, including advanced manufacturing, in the country. We are No. 1 in manufacturing firms, output and jobs. California is home to 38,000 manufacturing firms, twice as many as the next closest state.
We have a robust economic development program in the state. We provide services such as site selection, licensing assistance and regulatory advocacy for companies becoming established and expanding in California. We also put together a catalog of projects looking for foreign direct investment.

How does California support and/or encourage exports?
We work closely with U.S. embassises and consulates overseas to provide assitance, especially to small and medium businesses and those exporting for the first time. We keep a trade office in China to help California companies who want to penetrate the Chinese market. We also offer webinars to companies on how to export.


STATE PROFILE
Corporate Tax Rate: 8.84 percent
2014 Gross State Product: $2,363.2 billion
2015 FY Real State Growth: 3.0 percent
2014 Export Total: $171.1 billion
Right to Work State: No

WORKFORCE
Population: 38.8 million
Labor Force Size: 19.8 million
Unemployment Rate: 6.5 percent
High School Diploma or Higher: 81.2 percent
Bachelors Degree or Higher: 30.7 percent

LOGISTICS INFRASTRUCTURE
Ports: Long Beach, Los Angeles, Oakland, San Francisco, San Diego
Int’l Airports: Los Angeles, Oakland, San Diego, San Francisco and more
Rail: BNSF, UP, plus short lines
Highways: Five Interstates, U.S. 101, U.S. 395
FTZs: 17

UNIVERSITIES
California State University System, Pepperdine University, University of California, University of Southern California, Stanford University

 

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