Manufacturing facts: Among 9 largest trading partners, only France has higher structural costs than the U.S.

01/23/2013

This week's excerpt from The Facts About Modern Manufacturing: The excess structural cost burden facing the U.S. manufacturing sector more than offsets the competitive advantage it holds with regard to labor and capital costs. This "raw cost index" was just under $30 per hour in the United States, $3 less than the trade-weighted average of our nine largest trading partners. When the effects of higher structural costs are factored in, however, this cost advantage turns into a burden of $3 per hour. The excess corporate tax burden alone erases the U.S. manufacturing advantage, and the effects of employee benefits, torts and regulatory compliance simply add insult to injury. Manufacturing Facts

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