An analysis out today from Ball State University that grades each state’s performance in several areas affecting the health of the manufacturing industry gives Louisiana an overall grade of “C” for manufacturing. Louisiana didn’t get very high marks in any of the categories graded in the report. The “2012 Manufacturing and Report Card” also gives Louisiana the following grades in various categories:
• Logistics: “B”
• Global reach: “B-”
• Worker benefit costs: “C”
• Tax climate: “C”
• Expected liability gap: “C-”
• Sector diversification: “C-”
• Productivity and Innovation: “D+”
• Human capital: “F”
Ball State University Center for Business and Economic Research Director Michael Hicks says manufacturing roared back in many states over the year, but he anticipates a slowdown as worker productivity gains outstrip demand. “In the short run, the trend will be exacerbated by the very high probability of a U.S. recession in 2012-13,” Hicks says. “The rapidly slowing European, Chinese, Indian and Brazilian economies will place heavy pressure on firms to maintain their exports. A marked decline in U.S. exports is already in progress, and alone will deepen a slowdown already being felt across much of the country. The uncertainty surrounding financial markets will be with us for many months, depressing investment and new hiring.” You can access the complete analysis and state grades here.
