What have you always wondered about the economy? Tell Us

Gap narrows for manufacturing costs

Jeff Tyler Nov 13, 2008
HTML EMBED:
COPY

Gap narrows for manufacturing costs

Jeff Tyler Nov 13, 2008
HTML EMBED:
COPY

TEXT OF STORY

Scott Jagow: It still costs more to make things in the U.S. than overseas. But a study out today says the gap is narrowing. Marketplace’s Jeff Tyler has more.


Jeff Tyler: The National Association of Manufacturers studied the cost of doing business in the U.S. compared to nine other countries. It shows that the U.S. manufacturing sector has kept a lid on employee benefits and health care costs more successfully than foreign competitors.

Emily DeRocco is president of The Manufacturing Institute, one of the reports sponsors. She says other costs continue to put U.S. manufacturers at a disadvantage.

Emily DeRocco: We are paying the second-highest corporate tax rate in the world.

That would be about 39 percent.

DeRocco: This corporate tax rate drives U.S. costs up, and limits our ability to be competitive with our products across the global marketplace.

DeRocco says the corporate tax rate in U.K. is 30 percent. And in China, it’s 25 percent.

I’m Jeff Tyler for Marketplace.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.