A new report manufacturing and logistics health showed gains for the Tarheel State.
A manufacturing and logistics report showed that several industries in North
Carolina improved in 2015.
The report was done by the Center for Business and Economic
Research at Ball State University and Conexus Indiana. An annual grade is given
for several economic measures, including manufacturing, logistics, human
capital, worker benefit costs, tax climate, global reach, sector
diversification and productivity and innovation.
Each of these categories partly measures the health of
manufacturing and logistics, including some underlying categories that
contribute to manufacturing and logistics health. The report showed marks
dating back to 2009, ranging from A to F.
Here is North Carolina’s 2015 report card:
Manufacturing: B-
Logistics Industry: C
Human Capital: C
Worker Benefit Costs: B
Tax Climate: C+
Expected Liability Gap: A
Global Reach: B
Sector Diversification: B
Productivity and Innovation: B
One of the most notable improvements in the state was for the overall
tax climate, according to the report. CBER Data Center awarded the tax climate
a C+ grade for 2015, a significant improvement from the D grade given for the
previous three years.
In 2013, the state rebooted its tax system, implementing a flat
income tax instead of different brackets for income levels.
Manufacturing remained solid, unchanged from its 2014 grade.
The report, citing data from the Bureau of Economic Analysis, found that
manufacturing makes up 9.1 percent of the North Carolina economy, with earnings
totaling more than $31 billion.
Manufacturing health is measured on three variables: the share
of total income earned by manufacturing employees in each state; the wage
premium paid to manufacturing workers relative to the other states’ employees;
and the share of manufacturing employment per capita.
According to the North Carolina Department of Commerce,
manufacturing was the leading industry in 2014 for new jobs, accounting
for just under half of all announced jobs and announced investments.
