NH Gets a B+ in Manufacturing

Ball State University in Muncie, Indiana recently released its grades on all of the U.S.'s 50 states in several areas of the economy that underlie the success of manufacturing and logistics. Maine gets a C, New Hampshire B+, and Vermont B.

The 2011 Manufacturing and Logistics Report Card, prepared by Ball State's Center for Business and Economic Research cms.bsu.edu/Academics/CentersandInstitutes/BBR.aspx (CBER), reviews several areas, including manufacturing and logistics health, human capital, cost of benefits, global position and diversification of industries, state level productivity and innovation, tax climate and venture capital activities.

Listed below are the three Northern New England states including New Hampshire.

Maine grades:
Manufacturing: C
Logistics: D-
Human Capital:  B
Benefit Costs: F
Global Reach:  C
Productivity/Innovation: D
Tax Climate: D
Diversification:  C-
Venture Capital: D

New Hampshire grades:
Manufacturing: B+
Logistics: F
Human Capital:  A
Benefit Costs: F
Global Reach:  B
Productivity/Innovation: C-
Tax Climate: C
Diversification:  D
Venture Capital: C+

Vermont grades:
Manufacturing: B
Logistics: F
Human Capital:  B
Benefit Costs: C-
Global Reach:  C
Productivity/Innovation: D-
Tax Climate: C-
Diversification:  D
Venture Capital: B

CBER Director Michael Hicks says U.S. manufacturing is clearly rebounding from the recession, but the effects of the rebound are highly varied. Manufacturing production will almost certainly have a record year in 2011 and again 2012, but employment nationwide will be highly varied across states, according to Hicks.

"Some states, such as Indiana, have seen a real turnaround in manufacturing employment since the end of the recession (up 4.6 percent), while the nation as a whole has seen one in 50 manufacturing jobs lost," Hicks says.

"Prior to the recession, business location and expansion decisions were almost wholly driven by the availability of skilled workers," he says. "Today, that is far less a short term consideration, and tax rates, and concern about future tax increases due to high pension costs and other factors dominate business decisions to relocate. So, states emerge from this recession with a solid fiscal climate will tend to outperform those with uncertain balance sheets."

A state-by-state breakdown may be found at: cber.iweb.bsu.edu/research/conexus11/.

Report may be found at: cms.bsu.edu/Academics/CentersandInstitutes/BBR/CurrentStudiesandPublications.

Hicks may be reached at mhicks@bsu.edu or by cell phone at (765) 716-3625.