Princeton, NJ: A new 2017 report from BizCosts.com compares the cost of operating an advanced manufacturing plant in the 48 continental U.S. states. The website’s says it analyzed all major geographically-variable operating costs critical to the “corporate site selection decision,” including labor, taxes, construction, real estate, shipping, utilities and other factors. Cost comparisons in BizCosts.com draw from the data bank and 42-year caseload of The Boyd Company, Inc., location consultants of Princeton.
South Carolina, Louisiana, Mississippi are the lowest cost states; New Jersey, New York, Connecticut the Highest.
John Boyd, Jr., Principal at The Boyd Co., explains how companies are evaluating locations,
"With the current focus on re-shoring, comparative costs are the white-hot issue in corporate boardrooms. Today, costs are ruling the site selection process. For many corporations, improving the bottom line on the cost side of the ledger is far easier than on the revenue side in this weak, uncertain and globally-linked economy.”
The Federal Reserve’s March 2017 report indicates that manufacturing production expanded for the sixth consecutive month. The year-over-year number was also the fastest pace since April 2015. Similarly, manufacturing capacity utilization rose to a 16-month high.
Several factors are cited by Bizcosts for the manufacturing gains in the US, including: “cheap and abundant energy supplies in the U.S., productive U.S. workers, demands for higher wages in developing markets and branding consequences of outsourcing.”