MCIE and HDMC Join Forces:

Members of the the Boards of Directors, from the MCIE and the HDMC, meet to sign MOU.

The High Desert Manufacturers Council (HDMC) signed a landmark Memorandum of Understanding (MOU) with the Manufacturers’ Council of the Inland Empire on July 20 at an event attended by over 24 manufacturers and supporters of manufacturing from across the Inland Empire region. This MOU will officially unite the HDMC’s efforts with the MCIE formalizing a long history of collaboration as voices for the region’s manufacturers.

We will be building upon the success of the HDMC, who have already chalked up a major success by establishing a High Desert Training Center, with the generosity of rocket-builder Exquadrum providing the building, and with Victor Valley College providing the training. It is another example of a public-private partnership that the MCIE found to be so successful in creating the Intech Training Center in Fontana.

At the same time, the High Desert Manufacturers Council has industries that will add nicely to our mix of industries and broaden the perspectives of both groups and make our offering even stronger. And, with a strong, unified voice from the manufacturing industry, we hope to reach even greater successes. We believe that we will find that “one plus one” will be more than two!

DOE Grant for Manufacturers

Up to $300k is Available for Small and Medium Manufacturers

The U.S. Department of Energy is offering up to $300,000 in cost-share grant funds to help small-medium sized manufacturers upgrade their plant or equipment.

Contact Debbie Smith for details on this program. We will connect you with one of the three regional, university Industrial Assessment Centers who can provide the assessment and get you started. Contact Debbie Smith, Community Relation Director, [email protected], 909.474.7120 extension 212

Regional Economic Update

· (July 7) – The US job market cooled back down in June, adding just 209,000 jobs, and fueling optimism that the economy is on course to nail that elusive soft landing of lowering inflation without triggering a recession. The June job gains, released Friday by the Bureau of Labor Statistics, were nearly 100,000 positions below May’s stronger-than-expected showing of 306,000 and also fell below economists’ expectations for a net gain of 225,000 jobs. (CNN)

· (July 24) – The S&P GlobalU.S. Manufacturing PMI recorded an increase from 46.3 in June to 49 in July, breaking the trend of two consecutive months of declines and surpassing expectations of 46.2. (Standard & Poors)

Policy Updates

· (July 5) – After a final vote in the California Senate, Gavin Newsom’s Infrastructure streamlining bill passed into law. The bill claims to accelerate infrastructure and transportation development by expediting permitting processes so California can maximize the amounts of federal dollars available for such investments. (Office of the Governor, CMTA)

· (July 12) – AB 628 relaunching the Made in California Program has secured funding in the recent State Budget awaiting approval, looking to “increase state partnerships” with manufacturers. (CMTA Manufacturing Minute)

· (June 28) – The Biden administration aims $2 billion in grants from last year’s Inflation Reduction Act at accelerating domestic manufacturing of electric vehicles and resuscitating plants that are struggling. The Domestic Manufacturing Conversion Grants for EVs program will channel grants and subsidies towards existing auto plants in order to do this. (Reuters)

· (June 27) – Folded into California’s $310 billion budget agreement is a relatively small line item: $3 million to resurrect an obscure old state commission, dormant since 2004, that once regulated industries from factories to farms to laundries — and even had the power to set the minimum wage. (CalMatters)

Manufacturers Say:

You’ve been heard, and we’re focusing our efforts! In a recent membership survey of area manufacturers, we found that these are the top 3 issues front of mind for manufacturers:

1. We need more technical workers, especially Engineering (General, Aerospace, Chemical), Chemical Processes, and Sewists.
2. Supply chain challenges, ensuring the availability of necessary inputs
3. Utilities and Costs, especially controlling energy costs

Thank You!

A special thank you to our Sponsors, RP&B CPAs of Riverside and CMTC and California Manufacturing Network for their outstanding support of MCIE and our mission as the voice of the manufacturers of the our region.

Logistics

· (June 28) – Sales of distribution facilities, supply chain centers and other warehouse properties have fallen swiftly in the past 12 months as the Fed raised interest rates and the e-commerce boom evened out. Approximately $16.3 billion of industrial investment sales were logged in the United States this year through the end of May, according to a new report from Commercial Edge. Last year, industrial investment sales totaled $31.2 billion after the same period. The national industrial vacancy rate in May increased 20 basis points from the previous month to 4.3 percent. That comes after record levels of new warehouses, logistics centers and other industrial buildings have been delivered in recent quarters at the same time that demand normalized relative to the heights seen during the pandemic. More than 200 million square feet of new space opened in the first five months of 2023 alone. “While much of that space has been absorbed, some markets may see an upturn in vacancy during the coming quarters,” Commercial Edge reported. (Commercial Observer)

· (June 29) – Kidder Mathews, the largest independent commercial real estate firm on the West Coast, examines key industrial trends and developments from Seattle to San Diego, including a labor dispute involving 22,000 longshore workers at 29 ports. Expect no more rent growth in the Greater Los Angeles metro for the rest of the year, assertsKidder Mathews EVP Luke Staubitz, SIOR in the firm’s El Segundo office. He says rents for new leases plateaued in the third quarter of 2022, with some regression in Class A and B inventory. “Occupiers are reducing inventory, the tentative ILWU/PMA agreement has just been reached, and buildings are sitting vacant that would have leased very quickly prior to the third quarter of 2022.While the port deal should stimulate more inbound cargo, it’s not as if a floodgate has been opened overnight. In fact, landlords are now pursuing tenants.” (Kidder Mathews)

Industrial News

· (July 10) – Gilead Sciences Inc. plans to build a new manufacturing center on 14 acres alongside its existing facility in the Ocean Ranch Corporate Center, according to a preliminary application submitted to the Oceanside Planning Division. (San Diego Union-Tribune)

· (July 5) – Avina Clean HydrogenInc., a leading developer of electrolytic hydrogen plants, is proud to announce a partnership agreement with Chart Industries, Inc. (“Chart”, NYSE: GTLS), a global leader in design and manufacture of equipment for the entire hydrogen supply chain. Under the terms of the agreement, Chart will supply their Howden compressors for Avina’s state-of-the-art green hydrogen facility in Southern California to decarbonize heavy-duty trucks, marking a significant milestone as the region’s first green hydrogen plant. Chart’s Howden diaphragm “D” series compressors will enable the safe and efficient transportation of compressed gaseous hydrogen, ensuring its availability as a clean fuel source for heavy-duty trucks throughout Southern California. (Globe Newswire)

Infrastructure

· (July 11) – Investment in passenger rolling stock across North America is expected to increase 4.7% per year between 2021 and 2026, according to a projection from McKinsey & Co. A significant boost to the rail industry comes from the Infrastructure Investment and Jobs Act (IIJA), which was passed in 2021 and designates $66 billion to improve the nation’s rail system. Brightline has already built out its passenger rail service in Florida, and its sister company, Brightline West, is working on a high-speed passenger rail line between Las Vegas and Southern California. (CNBC)