#514. A Growth Agenda: Four Goals for a Manufacturing Resurgence in AmericaPosted on | The Agurban
The National Association of Manufacturers (NAM) recently released “A Growth Agenda: Four Goals for a Manufacturing Resurgence in America,” which they view as a strategy to keep America strong by keeping manufacturing strong. As we enter 2015, we at Agracel will continue our focus on the manufacturing arena, and we look forward to a robust manufacturing year! Below are the four goals outlined in the report, along with key facts about the manufacturing climate in the United States.
A GROWTH AGENDA: Four Goals for a Manufacturing Resurgence in America
GOAL#1: The United States will be the best place in the world to manufacture and attract foreign direct investment.
GOAL#2: Manufacturers in the United States will be the world’s leading innovators.
GOAL#3: The United States will expand access to global markets to enable manufacturers to reach the 95 percent of consumers who live outside our borders.
GOAL#4: Manufacturers in the United States will have access to the workforce that the 21st-century economy demands.
Because of our tax, tort, energy and regulatory policies, it is 20 percent more expensive to do business in the United States than it is in the countries that are our nine largest trading partners—and that excludes the cost of labor.
The United States has the highest corporate tax rate among major industrial countries.
Nearly two-thirds of manufacturers pay income taxes at individual rates. Therefore, any tax increase on individuals is a tax increase on manufacturers.
Direct tort costs total almost 2 percent of U.S. GDP—among the highest levels in the world.
Ninety-five percent of consumers live outside the United States, making it critical for manufacturers to have access to global markets through free trade agreements.
Of dozens of trade pacts being negotiated around the world at the beginning of 2013, the United States was party to just one agreement.
Through inaction on free trade agreements, we are ceding market share to our competitors.
Manufacturing supports an estimated 17.2 million jobs in the United States—about one in six private-sector jobs. Nearly 12 million Americans (or 9 percent of the workforce) are employed directly in manufacturing.
In 2011, the average manufacturing worker in the United States earned $77,060 annually, including pay and benefits. The average worker in all industries earned $60,168.
The R&D credit is a jobs credit. Seventy percent of credit dollars are used for salaries of high-skilled R&D workers. Some 162,000 new jobs would be created if the credit was strengthened—and even more if it was made permanent.
All of these factors and more are hurting American competitiveness. The 20 percent cost disadvantage is caused by policies created in Washington, not in some faraway capital.
Manufacturing in the United States produces $1.8 trillion of value each year, or 12.2 percent of U.S. GDP. For every $1.00 spent in manufacturing, another $1.48 is added to the economy, the highest multiplier effect of any economic sector.
Manufacturers in the United States are the most productive workers in the world, far surpassing the worker productivity of any other major manufacturing economy, leading to higher wages and living standards.
Taken alone, manufacturing in the United States would be the 10th largest economy in the world.
For the entire report, visit here.