manufacturing industry

Arizona Receives C For Manufacturing Industry Health

While manufacturing nationally enjoyed a robust year as growth in many sectors accelerated from the already strong manufacturing recovery of 2010-11, Arizona received a C for its manufacturing industry health, according to the 2012 Manufacturing and Logistics Report Card, an in-depth analysis from Ball State’s Center for Business and Economic Research.

Arizona named received the following grades:

  • Manufacturing: C
  • Logistics: C
  • Human Capital: D+
  • Worker Benefit Costs: C
  • Tax Climate:  B
  • Expected Liability Gap: C
  • Global Reach: F
  • Sector Diversification: D+
  • Productivity and Innovation: C

CBER director Michael Hicks says the manufacturing industry roared back in many states in the last year, but he anticipates a slow down as worker productivity gains outstrip demand.

“In the short run, the trend will be exacerbated by the very high probability of a U.S. recession in 2012-13,” Hicks says. “The rapidly slowing European, Chinese, Indian and Brazilian economies will place heavy pressure on firms to maintain their exports. A marked decline in U.S. exports is already in progress, and alone will deepen a slowdown already being felt across much of the country. The uncertainty surrounding financial markets will be with us for many months, depressing investment and new hiring. “

At the top of the class with A’s were Ohio, Michigan, Indiana, Kansas and Iowa. At the bottom, with F’s were Alaska, Hawaii, New Mexico and Nevada.

For more information on the health of the manufacturing industry, visit Ball State University’s website at