R.I. earns poor marks on manufacturing and logistics report

Rhode Island demonstrated minimal improvement, and garnered mostly failing grades, in an annual Manufacturing and Logistics National Report from Ball State University’s Center for Business and Economic Research. More

To continue reading this article, please do one of the following.



manufacturing

R.I. earns poor marks on manufacturing and logistics report

COURTESY BALL STATE UNIVERSITY CENTER FOR BUSINESS AND ECONOMIC RESEARCH
RHODE ISLAND earned a D grade for the health of its manufacturing industry and an F for "logistics," in the 2013 Manufacturing and Logistics National Report from Ball State University's Center for Business and Economic Research.
Posted 6/20/13

MUNCIE, Ind. - Rhode Island demonstrated minimal improvement, and garnered mostly failing grades, in an annual Manufacturing and Logistics National Report from Ball State University’s Center for Business and Economic Research.

Every year, the BSU center compiles the report and evaluates states in categories essential to manufacturing and logistics including industry health, state-level productivity and innovation, tax climate and human capital.

“Rhode Island remains one of the least hospitable places to manufacture goods in the United States,” Center Director and BSU Economics Professor Michael Hicks said in a statement. “It appears policymakers in Rhode Island have largely dismissed manufacturing growth as a viable component of the state’s economy.”

Rhode Island earned a D and F, respectively, in manufacturing industry health and logistics industry health in the 2013 report.

The manufacturing industry health was measured in terms of the fraction of total income shared by manufacturing employees in the state, the wage premium paid to manufacturing workers in comparison to other states, and the share of employment in manufacturing per capita.

“Logistics firms depend upon many of the same factors as manufacturing firms … but there is a more complex interplay between local conditions and the existing or planned transportation networks of roads, railroads, waterways, and airports,” said a release accompanying the report.

Rhode Island’s grades in these categories remained the same from the 2012 report.

The state earned its highest grade in sector diversification with a B+, and improvement from 2012’s grade of C+.

Though only earning a D, D, and D- in the categories productivity and innovation, global reach and expected liability gap, the grades indicated moderate improvement from the 2012 evaluation.

Rhode Island earned C-‘s in human capital and worker benefit costs, and an F in tax climate, to round out the evaluation of the Ocean State.

Hicks called Rhode Island's tax climate "dismal." He also pointed out that Rhode Island's inhospitable conditions hinder it when compared to other New England states.

“Within New England, the states of New Hampshire and Maine have become very attractive to manufacturing expansion, while Rhode Island and Vermont have created a policy environment which acts to disincentive manufacturing firms.”

New Hampshire received an A in human capital and a B and B- respectively in manufacturing industry health and productivity and innovation. Maine's highest grade was a B- in human capital.

Comparatively, several Midwestern states achieved impressive grades in several categories. Indiana garnered four A’s in manufacturing and logistics industry health, tax climate and global reach. Ohio also earned three A’s in the same categories excluding tax climate.

CBER prepared the report at the request of Conexus Indiana, the state’s advanced manufacturing initiative. To read the full report, visit: cms.bsu.edu.

1 comment on this story | Add your comment
Please log in or register to add your comment
JonPolis

WHY DON'T WE JUST SEND A DELEGATION TO INDIANA, SEE WHAT THEY DO TO EARN THE " A" MARKS THAT THIS BSU STUDY AWARDS THEM; AND COPY COPY COPY EVERYTHING THAT THEY DO....

Thursday, June 20, 2013 | Report this
Calendar
PBN Hosted
Events

Only a few seats remain for PBN's Manufacturing Awards Dinner and Ceremony, Thursday, April 24th, at the Bryant University Bello Center. Don't hesitate. Register today!
  • Business Women
    Accomplished. Confident. Wicked Smart. Nominate women you know who deserve speci ...
  • 40 Under Forty
    It's the 10th Anniversary of 40 Under Forty, and PBN is planning a special event ...
  • Healthiest Employers
    Enrollment now open for the 2014 Healthiest Employers Program. Please take a mom ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News