Current and Future Challenges for U.S. Manufacturing

47. The U.S. Has a Structural Cost Disadvantage

Since 2003, MAPI and The Manufacturing Institute have tracked the excess burden of structural costs—corporate tax liability, employee benefits, tort litigation, regulatory compliance, and energy—of U.S. manufacturers relative to their counterparts in our nine largest trading partners. This competitive disadvantage persisted throughout the first decade of the century and started to increase again in 2011.
Taken together, structural costs were 20 percent higher than for our major competitors, up from 17.6 percent in 2008. Without this cost disadvantage, the United States would be a lower-cost platform for manufacturing than all of our major trading partners except China, Mexico, and Taiwan, thanks to a 50 percent increase in productivity since 2000.

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