Case Study

Creative Electron secures tax credit and expands workforce; develops Six Sigma expertise

ServiceEconomic Incentive Consulting

ServiceStrategic Partnerships

San Marcos-based Creative Electron was founded in 2008 by Dr. Bill Cardoso with one goal: Design and produce the best X-ray inspection systems in the world. Today, the company’s X-rays are built with special algorithms and innovative designs that cater to the needs of industries such as forensics, military, fashion, automotive, and aerospace.

Company

Challenge

In 2018, Creative Electron was looking for assistance in completing their California Competes Tax Credit (CCTC) application, an income tax program facilitated by the Governor’s Office of Business and Economic Development (Go-Biz) that serves to assist businesses looking to remain and grow in the state. With aggressive growth goals and a desire to keep business in California, applying for CCTC was critical. Creative Electron gives back to the community by becoming deeply involved with the local economy, providing jobs and opportunities for years to come. In October 2020, EDC was contacted by Creative Electron following EDC’s Manufacturing Day webinar on Supply Chain Resilience. Creative Electron was seeking information on how to receive an assessment to improve their supply chain resiliency.

EDC Solution

In addition to assisting Creative Electron with the tax credit application, EDC provided an introduction to key partner California Manufacturing Technology Consulting (CMTC), which provides manufacturing consulting services designed to help California’s manufacturers succeed now and in the future. The CMTC team specializes in a range of industry needs including lean consulting, quality management, and system implementation by helping companies find manufacturing solutions to improve efficiency and reduce overhead costs.

Results

Through EDC’s partnership with Innovate78 and close ties to City of San Marcos leadership, each of our organizations collaborated to ensure a strong CCTC application for Creative Electron. In April 2018, Creative Electron was awarded a $446,700 tax credit for its to commitment to hiring 22 employees by 2022 with aggregate wages totaling more than $5 million and an investment of more than $500,000.

Through EDC’s introduction, Creative Electron participated in CMTC’s Six Sigma Certification & Training, with 20 employees utilizing the program to learn how to improve cost savings and avoid unnecessary investments associated with over production. This training improved team communication by providing a common language and mindset. It expanded the responsibility of the employee from individual thinking to systems thinking, constantly challenging the way things are done and how to make things better. As a result, the estimated cost savings tactics identified by the CMTC program will save Creative Electron around $200,000 annually.

“Creative Electron is very pleased with the support received from CMTC and EDC. We are constantly thinking of our growth goals and how to get there. We believe our people and diversity make us great, and by providing them with the tools to expand their skill set, we are confident we will be able to exceed our ambitious goals.”
– Mariem Ortiz, VP of Operations, Creative Electron