Rhode Island: Structural Costs Strike Hard

The NAM’s recent study, The Escalating Cost Crisis, is shaping the public debate on government policies. As it should. When government policies add 31.7 percent to the cost of manufacturing in the United States, something’s wrong.

The issue has emerged most recently in Rhode Island:

Many Rhode Island manufacturers have argued that operating in the United States puts them at a disadvantage when competing against foreign trade partners.

A recent National Association of Manufacturers study shows they are right. The study, published last month, suggests that structural, non-production costs add 31.7 percent to U.S. manufacturers’ total production costs, relative to the trade-weighted average costs of production for nine major U.S. trading partners.

This puts U.S. manufacturers at a disadvantage when competing in the global marketplace. “We have 32 percent more costs because we are in the U.S.,” said Al Lubrano, president of Technical Materials Inc. in Lincoln. “And that’s just in structural costs.”

Good story by Providence Business News’ Natalie Myers.

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  • Something is wrong when government policies have the direct affect on higher manufacturing costs in the U.S. If our nation has disadvantages in the global marketplace, it should be caused by something other than our own government policies.