Current and Future Challenges for U.S. Manufacturing

50. U.S. Healthcare Costs Are Skyrocketing

Healthcare costs are one of the most difficult challenges facing manufacturers. In the 10 years ending in 2012, employer costs for employee healthcare increased 66 percent—an increase in the U.S. structural cost disadvantage by an average of 5.2 percentage points per year. To put the cost burden in perspective, overall producer prices for finished goods excluding food and energy only rose 1.8 percent a year. Employer-provided healthcare costs are growing several times faster than sales prices.
Manufacturers want to maintain their proud commitment to providing health benefits through affordable coverage by using electronic records to improve cost-effectiveness and quality of healthcare, preventing and managing chronic care of workers through education, and encouraging consumer-directed healthcare options.

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