U.S. Manufacturing Seen At 31.7% Cost Disadvantage

Sept. 28, 2006
Compared with their major foreign competitors, U.S. manufacturers operate at 31.7% structural cost disadvantage, up from a 22.4% disadvantage three years ago, according to a study released September 27 by the National Association of Manufacturers (NAM), ...

Compared with their major foreign competitors, U.S. manufacturers operate at 31.7% structural cost disadvantage, up from a 22.4% disadvantage three years ago, according to a study released September 27 by the National Association of Manufacturers (NAM), its Manufacturing Institute subsidiary, and the Manufacturers Alliance/MAPI.

The study takes five elements into account: corporate tax rates, employee benefits, tort costs, natural gas prices and pollution abatement.

The manufacturing cost study was done by Jeremy Leonard of the Manufacturers Alliance, the same economist did a similar study in 2003.

"In the short term, Congress can aid manufacturers by sending to the President as soon as possible legislation that extends and strengthens the research and development (R&D) tax credit," says John Engle, president of the NAM. The credit expired at the end of 2005, adding about 9% to the tax burden of U.S. manufacturers, figures Engler.

The latest study is entitled "The Escalating Cost Crisis." The previous study was called "How Structural Costs Imposed on U.S. Manufacturers Harm Workers and Threaten Competitiveness."

Popular Sponsored Recommendations

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

3D Printing a More Efficient Factory Floor

Nov. 16, 2023
Today’s additive manufacturing platforms make it simple to print a wide range of high-performing industrial parts as soon as possible and right where you need them — unlocking...

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

Lean Manufacturing in the Age of the Industrial Internet

Oct. 24, 2023
Read how advanced MES capabilities can help you improve your labor utilization, reduce WIP, and optimize your production. Download the white paper today.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!