Manufacturing competition influenced heavily by government policies
A recent report from 70 global executives interviewed at the World Economic Forum showed that government policies have a significant impact on competition within the manufacturing sector.
The report, Manufacturing for Growth, showed that executives in manufacturing desire government policies that simplify taxes and protect free and fair trade. In addition, the manufactures want stronger energy and infrastructure policies, focused education and workforce frameworks and science, technology and innovation policies to promote advanced manufacturing.
"Our report reflects the broad support – from business and government – that is necessary and exists today to create a progressive, innovative enabling environment for manufacturing," said Andrew Liveris, chairman and chief executive officer of The Dow Chemical Company and global chief executive champion of the World Economic Forum's Manufacturing for Growth project. "Manufacturing adds value – creating more jobs than any other sector; driving innovation throughout every segment of our society; and delivering consumer solutions – all of which are the keys to long-term, sustainable economic growth."
The report highlights the need in the United States to offer lower tax rates, as many businesses move their operations abroad to seek tax havens.
Auto service centers critical to U.S. economy
Reports like these are primarily important for motor vehicle parts businesses, as they are the largest employers of manufacturing jobs in the country and therefore have a significant impact on the economy, and in particular car service centers.
According to a recent report released by the Motor & Equipment Manufacturers Association in collaboration with the IHS, motor vehicle parts manufacturers directly employee more than 734,000 American workers and contribute nearly $355 billion to the GDP each year, accounting for nearly 2.3 percent of the total GDP.
"Motor vehicle parts manufacturers are the largest creators of manufacturing jobs in the nation," said Bob McKenna, president and CEO of MEMA. "With a presence in all 50 states, this industry is important to the health and success of American manufacturing, and to the future of this country."
The top state for motor vehicle parts manufacturing jobs was Michigan, directly employing 102,624 Americans. The state was followed by Ohio (89,423), Indiana (79,651), Tennessee (48,284), Kentucky (41,097), Illinois (37,087), Alabama (30,566), Texas (29,422), North Carolina (25,843), South Carolina (24,569), California (22,736), Pennsylvania (21,130), New York (19,005), Missouri (16,648) and Georgia (16,287).
As competition in the auto service industry relies heavily on government, business owners should be looking high and low for any policies that can increase their bottom line.