The past year, filled with uncertainty over President Donald Trump’s tariffs, was destabilizing for manufacturers across the state.California has more manufacturers than any other state in the nation. In an interview on California Politics 360, Lance Hastings, the president and CEO of the California Manufacturers and Technology Association, noted the industry is an important part of the global economy that relies on certainty in order to make decisions. “We can’t make financial decisions in a 60-day time frame; we need five-year, 10-year windows,” Hastings said. “It’s been a whipsaw because a lot of our supply chains are international, some are domestic.”When asked if the tariffs helped spur more production of products in California, Hastings replied by saying tariffs tend to interrupt the system, and there needs to be a bigger conversation about stabilizing trade.Hastings said aerospace and technology manufacturers have been hit the hardest. He said the uncertainty over tariffs is increasing costs in the state. The cost of energy in California is also driving up the cost of making products in the state, Hastings said. “it’s really hard to be competitive,” Hastings said, pointing to other nearby states with lower costs. “It’s a great state, the workforce is incredible, but we’re doing it at an added cost that I think is unnecessary.” For the last few years, Hastings has been pushing for a tax credit for manufacturers to help the industry develop and acquire newer equipment. State lawmakers approved it overwhelmingly, but Gov. Newsom has vetoed the proposal twice. California has been facing consecutive years of budget shortfalls.For example, the credit could help a manufacturer buy a million-dollar piece of equipment and then receive $100,000 back from the state. “Thirty-eight other states do that already, six states don’t even charge a sales tax at all, so California is an outlier here,” Hastings said. “We’re not making an ask for a handout, we’re just saying, treat us like other manufacturers in the country.” When asked what could happen if manufacturers don’t get help, Hastings said, “It’s kind of a slow drip.” Hastings said California is starting to lose smaller and medium-sized manufacturers, which he called “the lifeblood” of the economy. “The problem is, it’s a quiet quitting,” Hastings said. “They just leave, and maybe that enterprise of 50 to 100 employees closes their doors and you don’t really hear about that and then it gets to the point it’s too late.” “Those are the enterprises that need the tax credit, those are the ones having the hardest time competing with other states,” Hastings said. Watch the full interview with Lance Hastings here: KCRA 3 Political Director Ashley Zavala reports in-depth coverage of top California politics and policy issues. She is also the host of “California Politics 360.” Get informed each Sunday at 8:30 a.m. on KCRA 3.

The past year, filled with uncertainty over President Donald Trump’s tariffs, was destabilizing for manufacturers across the state.

California has more manufacturers than any other state in the nation. In an interview on California Politics 360, Lance Hastings, the president and CEO of the California Manufacturers and Technology Association, noted the industry is an important part of the global economy that relies on certainty in order to make decisions.

“We can’t make financial decisions in a 60-day time frame; we need five-year, 10-year windows,” Hastings said. “It’s been a whipsaw because a lot of our supply chains are international, some are domestic.”

When asked if the tariffs helped spur more production of products in California, Hastings replied by saying tariffs tend to interrupt the system, and there needs to be a bigger conversation about stabilizing trade.

Hastings said aerospace and technology manufacturers have been hit the hardest. He said the uncertainty over tariffs is increasing costs in the state.

The cost of energy in California is also driving up the cost of making products in the state, Hastings said.

“it’s really hard to be competitive,” Hastings said, pointing to other nearby states with lower costs. “It’s a great state, the workforce is incredible, but we’re doing it at an added cost that I think is unnecessary.”

For the last few years, Hastings has been pushing for a tax credit for manufacturers to help the industry develop and acquire newer equipment. State lawmakers approved it overwhelmingly, but Gov. Newsom has vetoed the proposal twice. California has been facing consecutive years of budget shortfalls.

For example, the credit could help a manufacturer buy a million-dollar piece of equipment and then receive $100,000 back from the state.

“Thirty-eight other states do that already, six states don’t even charge a sales tax at all, so California is an outlier here,” Hastings said. “We’re not making an ask for a handout, we’re just saying, treat us like other manufacturers in the country.”

When asked what could happen if manufacturers don’t get help, Hastings said, “It’s kind of a slow drip.”

Hastings said California is starting to lose smaller and medium-sized manufacturers, which he called “the lifeblood” of the economy.

“The problem is, it’s a quiet quitting,” Hastings said. “They just leave, and maybe that enterprise of 50 to 100 employees closes their doors and you don’t really hear about that and then it gets to the point it’s too late.”

“Those are the enterprises that need the tax credit, those are the ones having the hardest time competing with other states,” Hastings said.

Watch the full interview with Lance Hastings here:

KCRA 3 Political Director Ashley Zavala reports in-depth coverage of top California politics and policy issues. She is also the host of “California Politics 360.” Get informed each Sunday at 8:30 a.m. on KCRA 3.