Small business environment overall is strong, however.
Georgia’s Manufacturing Industry Rated D+
Since 2010, the Peach State’s manufacturing industry has been holding steady—unfortunately, however, not at a healthy level.
For the past six years, the health of Georgia’s manufacturing industry—which makes up 6.9 percent of the state’s economy—has received a “D+” grade from the annual Manufacturing and Logistics National Report Card put together by the Center for Business and Economic Research at Ball State University and sponsored by Conexus Indiana.
This annual report shows how each state ranks in several economic factors that are key to the success of manufacturing and logistics. In addition to overall manufacturing industry health, 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 Georgia stacks up in 2016:
Manufacturing Industry Health: D+
Logistics Industry Health: B
Human Capital: D
Worker Benefit Costs: B+
Tax Climate: D+
Expected Liability Gap: A
Global Reach: B
Sector Diversification: B+
Productivity and Innovation: C
The Marietta Daily Journal also reported that Georgia’s manufacturing saw two consecutive months in decline (May and June 2016), according to the Purchasing Managers Index. The decline is a result of low numbers of new orders, as well as a decrease in production and employment.
However, in better news, Georgia received an ‘A’ in Thumbtack’s annual Small Business Friendliness Survey, which rates each state on the policies that affect entrepreneurs’ ability to start, operate, and grow a business. In 2016, more than 12,000 U.S. small business owners participated in the study.
In addition to an ‘A’ grade for overall small business friendliness, Georgia earned solid grades across the board, with only one exception:
Ease of starting a business: A+
Ease of hiring: B+
Health and safety: A+
Employment, labor, and hiring: A+
Tax code: A+
Training and networking programs: C-