Home > Structural Costs 2011
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The Manufacturers Alliance for Productivity and Innovation (MAPI) and The Manufacturing Institute partnered to produce the 2011 Structural Costs Study. This report is the fourth in our ongoing series comparing the structural costs of manufacturing in the United States to those of our nine largest trading partners.
“This report tells an important story, one in which the White House and Congress should be very interested,” said Stephen Gold, President and CEO of the Manufacturers Alliance for Productivity and Innovation (MAPI). “While we recognize American manufacturers face a myriad of challenges from overseas, these data demonstrate that domestically imposed costs further undermine our ability to compete. We hear a great deal from policymakers these days about the need to bring manufacturing back to America, yet these challenges continue to undercut American manufacturing competitiveness.”
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| The key finding is that U.S. manufacturers face a 20.0% structural cost burden in the global market compared to manufacturers in those countries. This is up from 17.6% in 2008. |
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| The largest structural cost burdens were in relation to Taiwan, Mexico, and China. The greatest changes in cost burden from 2008 were with Canada and Germany and were substantially a result of the lowering of corporate tax rates in those countries since the last study. |
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| The two greatest factors contributing to the increase in the structural cost burden were corporate tax rates and employee benefit costs. The spread in tort costs continued to fall and energy and pollution abatement costs held steady. |
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