Annex 1
INDEX OF EFFECTIVE COSTS—THE US MANUFACTURING
INSTITUTE (2003)
The Manufacturing Institute.
Table 1
Effect of Key "Overhead Costs"
on Raw Cost Index of Nine Largest US Trading Partners, 2002 (US
dollars per hour)
|
| Raw cost Index | United
States
| Average
of nine
partners
| Canada | Mexico
| Japan | China
| Germany | United Kingdom
| South
Korea |
Taiwan | France
|
|
| 24.30 |
19.30 | 25.57
| 8.11 | 16.92
| 5.34 | 29.60
| 28.30 | 23.96
| 16.41 | 26.50
|
| Difference relative to US costs in per cent
|
| Corporate tax rate | —
| -5.06% | -3.4%
| -6.0% | 2.0%
| -15.0% | -0.4%
| -10.0% | -10.3%
| -15.0% | -5.7%
|
| Employee benefits | —
| -5.5% | -4.8%
| -9.4% | -9.4%
| -12.6% | 3.6%
| -5.1% | 9.0%
| -11.5% | 10.7%
|
| Tort costs | —
| -3.2% | -3.1%
| n/a | -3.3%
| n/a | -0.7%
| -3.4% | n/a
| n/a | n/a
|
| Natural gas costs | —
| -0.5% | -6.0%
| -2.3% | 12.5%
| -2.3% | 0.6%
| 2.1% | 4.1%
| 15.3% | -4.2%
|
| Pollution abatement | —
| -3.5% | -2.8%
| n/a | -2.3%
| n/a | -2.4%
| -3.0% | n/a
| n/a | -1.5%
|
| Manufacturing production costs relative to the United States accounting for differences in overhead costs (dollars per hour)
|
| Effective cost index | 24.30
| 16.02 | 22.46
| 6.19 | 16.64
| 3.50 | 29.77
| 23.14 | 22.67
| 12.85 | 25.77
|
|
Source: Author's calculations based on data in subsequent
tables and charts.[42]
Source: How Structural Costs Imposed on US Manufacturers
Harm Workers and Threaten Competitiveness by Jeremy A Leonard
of the Manufacturers Alliance/MAPI for The US Manufacturing Institute
(2003).
42
Not provided. Note: Data for tort costs and regulatory
compliance costs are limited to the industrialised partners. Conservative
assumptions have been made in estimating the missing values, as
described in later sections.42 Thus, the absence of these data
likely understates the overall cost advantage of US trading partners. Back
|
