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.
