The Alabama manufacturing industry is above average in 2015, according to a new study.
The health of the Alabama manufacturing industry—which makes up 8.7 percent of the state’s economy—was rated a B grade in the Manufacturing and Logistics National Report Card put together by the Center for Business and Economic Research at Ball State University. This annual report shows how each state ranks in several economic factors that are key to the success of manufacturing and logistics. For the past six years, Alabama’s manufacturing industry health has earned a steady B or B- grade.
In addition to the overall manufacturing industry, CBER evaluates states based on the following categories: logistics industry health, human capital, worker benefit costs, tax climate, expected liability gap, global reach, sector diversification, and productivity and innovation. Here’s how Alabama stacks up in 2015:
Manufacturing Industry Health: B
Logistics Industry Health: C
Human Capital: F
Worker Benefit Costs: B-
Tax Climate: C
Expected Liability Gap: B
Global Reach: B
Sector Diversification: B
Productivity and Innovation: C
While Alabama received lower grades (Cs) in logistics, tax climate and productivity and innovation, the most significant point of struggle was human capital, which earned an F.
Michael Hicks, director of CBER at Ball State, told the Birmingham Business Journal: “Alabama’s manufacturing and logistics industry remain hobbled by poor rankings in human capital. Across the board weakness in education will continue to prove a challenge for the state in expanding these sectors.”
To learn more and read Alabama’s 2015 report card, visit http://conexus.cberdata.org/state/al.
