CALIFORNIA BUSINESS MINUTE
Ranking California
07-28-11
Hi, I am Tim Johnson and welcome to the California Business Minute.
California excels in innovation and venture capital but apparently lacks a global reach,
diverse industries and human capital. According to the 2011 Manufacturing and Logistics
National Report by Ball State University's Center for Business and Economic Research,
California is not the lowest of the states but apparently is not in the top ranking either.
The report grades the nation's 50 states on economic factors that underlie the success of
manufacturing and logistics. These specific measures include: manufacturing and logistics
health, human capital, the cost of benefits, the global reach and diversification of the
industries, state-level productivity and innovation, the tax climate and venture capital
activities. These categories were chosen as the ones most likely to be considered by site
selection experts at manufacturing and logistics companies, according to the center.
CALIFORNIA’S 2011 GRADES:
•Manufacturing C+
•Logistics B
•Human Capital C
•Benefit Costs D
•Global Reach C
•Productivity and Innovation A
•Tax Climate D
•Diversification D
•Venture Capital A
California's grade point average for these nine areas would be a C-.
The states that rank highest for manufacturing health are Nebraska, Iowa, Indiana, Ohio
and Michigan. The states that rank highest for logistics health are Texas, Illinois,
Indiana, Ohio and Pennsylvania.
We think they have poorly evaluated the Golden State’s position for global reach given
that it is the largest state in the nation for imports and second largest for exports.
It also exports more agricultural products than any state in the nation. Also, given
that the space shuttle mission has concluded, the nation must turn to Hawthorne-based
Space X to get people into space otherwise a foreign country. Hopefully they will
review their findings for next year. In the meantime, you be the judge.
For more information on the report go to:
http://cber.iweb.bsu.edu/research/conexus11/NationalReport11.pdf
I am Tim Johnson and this has been the California Business Minute.
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