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.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.