Current and Future Challenges for U.S. Manufacturing

43. The U.S. Ranks High But Is Not the Easiest Country To Do Business In

The World Bank performs a comprehensive analysis of structural costs to start and conduct business in virtually every country in the world. Not surprisingly, advanced economies receive high rankings; these economies are rich for a reason, and they have rules and institutions that make starting a new business relatively fast and cheap, in turn promoting innovation and job creation. In addition, they have comparatively flexible labor and capital markets that constantly reallocate resources based on consumer preferences and overall spending patterns.
The United States is high on the list of several hundred countries but it is not at the top. Currently, the U.S. ranks fourth in terms of the ease of doing business, and Singapore, Hong Kong, and New Zealand are ahead of us. A sign of the growing prowess of the Asian economies is that Hong Kong was ranked seventh back in 2005.

To Competitiveness

38

According to the UN, U.S. Manufacturing Slipped to #2

39

According to the World Bank, U.S and Chinese Manufacturing Are Comparable

40

Manufacturing's Share Within Countries Declines

41

Manufacturing Exports Alone Are Not Enough to Sustain U.S. Economic Growth

42

The U.S. Is the #1 Destination for Foreign Direct Investment

43

The U.S. Ranks High But Is Not the Easiest Country To Do Business In

44

Inflation-Adjusted Manufacturing Has Kept Up With the Overall Economy

45

Measuring the Quantity of Manufacturing GDP Is Distorted by High-Tech

46

Traditional Manufacturing Has Not Kept Up With Overall Economic Growth

47

The U.S. Has a Structural Cost Disadvantage

48

Among 9 Largest Trading Partners, Only France Has Higher Structural Costs Than the U.S

49

The U.S. Does Not Keep Pace With Falling Corporate Tax Rates

50

U.S. Healthcare Costs Are Skyrocketing

51

Commercial Tort Costs Climb Again

52

Despite Rhetoric, Regulations Are as Burdensome as Ever