Startups say permitting, zoning and lack of local CMOs push medtech manufacturing out of California
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Summary
A Y Combinator‑backed founder told the Assembly committee that permitting timelines, zoning and thin local contract manufacturing capacity make California less viable for scaling medtech manufacturing, and asked the committee to streamline permits and offer incentives.
Lucas Springer, CEO of Newman, told the Assembly Select Committee on Biotechnology and Medical Technology that early‑stage companies face specific and practical barriers to manufacturing in California that differ from the challenges of raising R&D capital.
"Permitting timelines can stretch for years. Zoning restrictions... make it difficult to find appropriate space," Springer said, describing clean‑room and advanced manufacturing needs. He said his company has searched for pilot manufacturing capacity in California and found prohibitive timelines, a shortage of competitive contract manufacturers (CMOs) and regulatory complexity that make other states attractive to founders.
Springer and other witnesses urged the committee to consider streamlining permitting, removing local red tape for advanced manufacturing, and creating incentives for companies that commit to manufacturing jobs in the state. Intuitive and other larger firms added that local supply chains — often within 100 miles of their manufacturing sites — are important and that tax credits and advanced manufacturing incentives have helped in other states.
Committee members asked witnesses for calculations on job multipliers and tax‑credit ROI to inform potential budget action. The committee did not take formal action but requested follow‑up analysis and stakeholder input prior to budget decisions.