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Washington among more affordable manufacturing states, says study

July 6, 2011 12:05 p.m. • 0 comments

When Boeing decided to move some aircraft production to South Carolina, many folks declared it as final proof that manufacturing in this region was on the decline and would not recover.

Despite that pessimism, it's possible to find the opposite view. A recent study found that eight of the top 10 states for cost-efficient manufacturing are in the West or Northeast.

The results, prepared by the American Institute for Economic Research, is called the AIER “Competitiveness and Business Costs” study.

The study suggests Oregon is the most affordable location for new manufacturing sites.

Washington was ranked 10th best, on the basis of a state-by-state comparison of the production cost per dollar output of manufactured goods – that is, how much it costs to produce one dollar value of goods in different states.

The study used 2007 Economic Census data and relied on Data Envelopment Analysis, which looks solely at production costs and outputs.

Behind Oregon, the most cost-efficient manufacturing states are Connecticut, Iowa, North Carolina, New York, Arizona, Massachusetts, Nevada, Colorado and Washington.

The least cost-effective states, according to the study, are: Mississippi, North Dakota, Kentucky, Vermont, Alabama, Louisiana, Alaska, Montana, South Carolina and Idaho.