NM fares feebly in report on manufacturing, logistics

New Mexico earned mostly terrible grades in a recent report on manufacturing and logistics by Ball State University’s Center for Business and Economic Research.

The report, prepared for Indiana’s advanced manufacturing initiative, grades states on a variety of metrics that it says “underlie the success of manufacturing and logistics.”

According to a news release from the university, New Mexico received an “F” in manufacturing, logistics, diversification, global position and human capital. It earned a B for benefits costs, a C for tax climate and “productivity and innovation” and a D+ for expected fiscal liability.

The categories were chosen based on the factors most likely to be considered by site selection experts and on prevailing research on economic growth, according to the report.

Despite concerns over the loss of manufacturing jobs to other countries, the report notes that output has continued to grow. U.S. manufacturing production is up 11 percent since the dot. com bust of 2000-2003, the study found.

“According to folklore, this has been a terrible generation for manufacturing and those who move goods,” CBER Director Michael Hicks stated in a news release on the report. “That isn’t really what the data says. Indeed, 2015 was a record manufacturing production year in inflation-adjusted dollars. While 2016 fell just short with some weakness in the first and second quarter, 2017 looks to be a new record year.”

The Associated Press reported Monday that U.S. factories expanded at a robust pace in June. The Institute for Supply Management said its manufacturing index rose to 57.8 last month from 54.9 in May. Anything above 50 signals that factory activity is increasing. The measure now stands at its highest level since August 2014.