Ohio ranks high for its manufacturing and logistics industries, but its tax climate and unfunded liabilities puts the state in the middle of the pack, according to a new report from Indiana’s Ball State University.
The 2014 Manufacturing and Logistics Report, prepared by Ball State’s Center for Business and Economic Research, compares all 50 states in several economic categories that contribute to the success of manufacturing and logistics operations.
“Ohio’s grade dropped slightly in the manufacturing industry category — from ‘A’ to ‘B+’ — but it maintained an ‘A’ grade in the logistics category,” said Michael Hicks, the research center’s director, in a statement. “A solid ‘C’ in tax climate and in unfunded liabilities places Ohio into the center of the pack in manufacturing.”
Ohio’s manufacturing sector is better than the Ball State report suggests, said Rick Little, president of Starwin Industries, a Kettering aerospace and defense contract manufacturer.
Little, who also serves as vice chairman of the Dayton Region Manufacturers Association’s board of trustees, said the state’s drop to a B+ grade in manufacturing was a “disappointment.”
Ohio is one of the top five states in the U.S. for exporting manufactured goods. In addition, companies such as Boeing and Airbus are looking to increase the amount of manufacturing that they do in Ohio, he said.
However, Little acknowledged that Ohio’s tax structure, environmental policy and unions have led some companies to move their manufacturing to other states. “There are regulations that make Ohio a little less friendly to manufacturing,” he said.
©2014 the Dayton Daily News (Dayton, Ohio)
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