About two weeks ago, we released our latest report on manufacturing in America just prior to the NAM’s semiannual board meeting. The Escalating Cost Crisis is an update of our landmark 2003 report. (Just click on the report title and it will take you to the report itself and accompanying press release). The new report shows that external cost pressures on manufacturers have increased substantially and now account for a 31.7 percent cost disadvantage when compared with our nine largest trading partners. That’s a 42 percent jump since the first report.
External costs are those that manufacturers generally can’t control themselves, such as corporate tax rates, litigation, regulation, health care and pensions, natural gas. As NAM President John Engler said, we are losing ground by standing still, as other countries build up their manufacturing sector. Taxes and employee benefits such as health care and pensions, as well as pollution abatement, are the three top sources of these costs.
This week Ken Rayment with Better Process interviewed me about this new report and if you click right here, you can hear the short interview. Manufacturers—including those of us at NAM and the Institute–are always looking for new technology applications and we’re glad to bring you a podcast now and then in that spirit. Let me know what you think of the new report!
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