A national report revealed Virginia’s manufacturing and logistics industries aren’t doing so well.
Virginia could be doing a lot more to improve its manufacturing
and logistics industries, according to a new report.
Ball State University’s Center for Business and Economic
Research published a report
with Conexus Indiana, grading states on the health of manufacturing and
logistics industries as well as other economic measures.
Virginia’s manufacturing and logistics 2015 report card:
Manufacturing: D
Logistics: C
Human Capital: C
Worker Benefit Costs: C-
Tax Climate: C+
Expected Liability Gap: C
Global Reach: D
Sector Diversification: A
Productivity and Innovation: B
Manufacturing makes up just 4 percent of Virginia’s economy,
which may explain its dismal D grade. Earnings from manufacturing totaled
nearly $15 billion, the report revealed, citing data from the Bureau of
Economic Analysis. According to Virginia’s Commerce and Trade Department, the
state exported $15.2 billion in manufactured goods in 2013.
While the state’s grade was poor, manufacturing has improved
over the last few years, the report showed. In 2009, the state was given an F
for manufacturing and a D- in 2010 and 2011.
One bright spot on the report card was Virginia’s sector
diversification, likely a reflection of Virginia’s ability to bring in startup
businesses in many industries. One of Virginia’s core economic development
strategies is diversification and innovation, according to
its Commerce and Trade Department.
“Policies that seek to diversify the economy are typically
pursued in concert with efforts to strengthen the supply chain of existing
industries,” the report said of the sector diversification category.
Virginia’s tax climate was given an average score in the
report, which matches the Tax Foundation’s 2015 tax climate ranking that
put Virginia squarely in the middle of the country.
