Major news conference just concluded here at NAM Central, highlighting the release of our new cost study, The Escalating Cost Crisis, an update of a 2003 review of the structural costs imposed on manufacturers in the United States compared to our nine major global competitors.
The studies examine the costs of natural gas, civil litigation, environmental regulations, employee benefit mandates and corporate taxation. Bottom line: The burdens are rising. Dramatically rising. The 22.4 percent structural cost disadvantage has climbed 42 percent in just three years, reaching the 31.7 percent level in the new study.
The biggest villain? Corporate taxation. Save for Japan, the United States is burdened by the highest statutory corporate tax rates among our competitors. Countries like Japan and Mexico have cut their taxes, becoming more competitive, while the United States stood still. And by standing still, we’re falling behind.
Our thanks to Jerry Jasinowski of The Manufacturing Institute and the study’s author, Jeremy Leonard of the Manufacturers Alliance/MAPI for their critical role in today’s big announcement.[UPDATE: by Blogger’s Apprentice]: Here’s a link to a video to watch the press conference from today.