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Regional Grade Comparison: Indiana and Neighboring States

About Conexus Indiana

About Ball State’s CBERMethodologyThe categories in this report were chosen as those most likely to be considered by site selection experts for manufacturing and logistics firms, and by the prevailing economic research on growth. Each cat-egory included multiple variables that were aggre-gated and then ranked 1sT – 50Th, for each state—1sT being the most desirable. Within each category, the lowest aggregate score assigned provided the overall rank. Grades were assigned using a normal distribution of grades, A through F. Plus and minus scores were not assigned to A or F grades.

S e e t H e M a n U f a c t U r i n g a n d l o g i S t i c S n a t i o n a l r e p o r t f o r a d e t a i l e d e x p l a n a t i o n o f v a r i a B l e S a n d g r a d e S f o r a l l 5 0 S t a t e S .

Conexus Indiana is a private sector-led initiative focused on the advanced man-ufacturing and logistics sectors—two industries that combined employ more than one of every five hoosiers. We are focused on making Indiana a global manufacturing and logistics leader by strengthening the state’s human capital, building industry partnerships to capitalize on new opportunities and address key challenges, and promoting a better understanding of the importance of these industries to our economic future.

Conexus Indiana’s most urgent mission is building tomorrow’s manufacturing and logistics workforce, preparing hoosiers to take advantage of high-tech ca-reers in these exciting fields. We are also focused on developing a unified strat-egy to enhance our logistics capabilities, linking manufacturers with in-state suppliers to streamline supply chains and spur investment in Indiana, and un-dertaking other strategic projects that will help the manufacturing and logistics sectors thrive here at the Crossroads of America.

C o n e x u s I n d I a n a 111 Monument Circle, suite 1800 Indianapolis, IN 46204 317-638-2107 www.conexusindiana.com

The Center for Business and Economic Research (CBER) is an award-winning economic policy and forecasting research center housed within Ball state Uni-versity’s Miller College of Business. CBER research encompasses health care, public finance, regional economics, transportation, and energy sector studies. View CBER’s current studies and publications.

The center produces the CBER Data Center—a one-stop shop for economic data, policy analysis, and regional demographics—and the Indiana Business Bulletin—a weekly newsletter with commentary on current issues and regularly updated data on housing, wages, employment, and dozens of other economic indicators.

In addition to research and data delivery, the center serves as the business forecasting authority in the Muncie area—holding the annual Indiana Economic Outlook luncheon and quarterly meetings of the Ball state University Business Roundtable.

The 2011 Manufacturing and Logistics Indiana State Report shows how Indiana ranks among the U.S.’s 50 states in several areas of the economy 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.

C e n t e r f o r B u s I n e s s a n d e C o n o m I C r e s e a r C h Whitinger Business Building, Room 149 2000 W. University Ave. Muncie, IN 47306 765-285-5926 www.bsu.edu/cber

2011 MANUFACTUR ING + LOG IsT ICs

Indiana State Report

M i c H i g a n

o H i o

K e n t U c K y

i l l i n o i S

W i S c o n S i n

i n d i a n a

Glossary» a d u l t B a s I C e d u C a t I o n : Education in

basic reading and writing, offered through either community/technical colleges or state workforce development agencies.

» C o m m o d I t y f l o w s : The value of shipments through a region.

» e x p o r t s : Products or commodities sold to foreign individuals and firms.

» f o r e I g n d I r e C t I n v e s t m e n t: Expenditures by foreign owned firms on plant and equipment in a region.

» h u m a n C a p I t a l : A measure of educational and skills attainment, and in some settings health of residents and workers within a region.

» I m p o r t s : Products or commodities purchased from foreign firms.

» I n C o m e : All direct compensation to workers.

» I n f r a s t r u C t u r e : Road rail, bridge and other transportation related public goods.

» l o g I s t I C s : Transportation and warehousing industry groups.

» m a n u f a C t u r I n g : The production of consumer durable and non-durable goods.

» p r o d u C t I v I t y: The value of goods sold by a firm adjusted to a per worker basis.

» r & d : Research and development, both in primary and applied science, usually measured in dollars.

» u n e m p l o y m e n t I n s u r a n C e : A federal program dating to 1933 that requires firms to participate in state regulated insurance plans to compensate workers who are laid off or discharged from work.

» v a l u e - a d d e d : Firm or industry measure of the value of the product sold, minus all input costs.

» w o r k e r s ’ C o m p e n s a t I o n : A federal program dating to 1913 that requires firms to provide disability and death insurance through state-administered or regulated insurance plans.

» Indiana is only state in the Midwest to avoid a grade of D or F in 2011.

» Indiana’s manufacturing employment has risen by 4.6 percent since the end of the recession.

» United states manufacturing employment has declined by 2 percent since the end of the recession.

» Indiana exports manufactured goods to every continent except Antarctica.

» Manufacturing workers earn roughly 50 percent more than non-manufacturing work-ers with the same educational levels.

Quick Facts

MANUFACTUR ING INDUsTRy: AIndiana continues to have the largest share of income from manufacturing in the nation. The size and scope of Indiana’s manufac-turing sector warrants a strong A ranking in this reports.

LOG I sT ICs INDUsTRy: AIndiana’s logistics sector has growth in both strength and scope over the three years of this index, moving from a B- to a solid A grade.

hUMAN CAP I TAL : CIndiana’s human capital has improved mod-estly from 37th to 29th nationally, primarily due to improvements in educational attain-ment. however, the state’s human capital condition continues to slow manufacturing and logistics growth, and serves as an im-pediment to new capital formation in many regions. The state receives a C- grade in hu-man capital.

BENEF I T COsTs : C -health care premium costs have continued to keep our overall benefit costs near the na-tional average. The state receives a C grade in benefit costs.

G LOBAL REACh: AIndiana is a strong exporter, with diversity in type and location of exports, and has shown remarkable adaptability to changes in de-mand over the past decade. It receives a solid A.

PRODUCT IV I Ty AND INNOVAT ION : C+Indiana’s universities and private sector continue to increase their intellectual capi-tal and provides an improving environment for entrepreneurs and overall productivity growth. The state receives a C+ in produc-tivity and innovation.

TAx CL IMATE : AIndiana’s tax climate remains robust and improving. The A grade for this year does not capture the most recent changes en-acted by the legislature which improve the tax climate further. Importantly, the states expected tax changes reflect confidence in a fiscally solvent environment, which is conducive to new investment. This is an important and solid A for Indiana.

D I VERs I F I CAT ION : CIndiana’s manufacturing economy becomes more diversified each year. This dampens the effects of economic downturns, and in-creases the export adaptability of the state. however, the level of diversification remains at about the national average, giving the state a C in this category.

V ENTURE CAP I TAL PER CAP I TA : C -The recession slowed venture capital growth in all but a few large financial centers around the country. Indiana experienced a sharp, but apparently short relative decline in venture capital. While, there is strong evidence that the trend has reversed, 2010 was a relatively poor year for venture capital expenditures in the state, earning Indiana a C- ranking.

2011 MANUFACTUR ING + LOG IsT ICs IND IANA sTATE REPORT

Categories + Grades A methodology for grade calculation and a glossary of terms can be found on the back page, along with a regional scorecard comparison. see the Manufacturing and Logistics National Report for a detailed explanation of variables and grades for all 50 states: www.bsu.edu/cber » “Current studies and Publications”

Indiana’s Current and Past Scoress u B j e C t

2 0 1 1 2 0 1 0 2 0 0 9

g r a d e r a n k * g r a d e r a n k * g r a d e r a n k *

M a n U f a c t U r i n g i n d U S t r y H e a lt H A 1st A 1st A 1st

l o g i S t i c S i n d U S t r y H e a lt H A 5th B+ 6TH B- 15TH

H U M a n c a p i t a l C 29TH C- 31ST D+ 37TH

B e n e f i t c o S t S C- 32nD C 25TH C 28TH

g l o B a l r e a c H A 1st A 2ND A 3RD

p r o d U c t i v i t y a n d i n n o v a t i o n

C+ 18TH C 29TH C 24TH

t a x c l i M a t e A 2ND A 5th A 4th

d i v e r S i f i c a t i o n C 21ST C- 32nD – –

v e n t U r e c a p i t a l p e r C a p i t a

C- 31ST C 20TH – –

* Rank among the 50 United states. see methodology.

State Manufacturing Compensation ($ Billion)

Manufacturing Income Forecast for Indiana and Selected Cities

C I t y f o r e C a s t e d y e a r -t o - y e a r C h a n g e

a n d e r S o n +1.79%

B l o o M i n g t o n +0.70%

c H i c a g o , i l l i n o i S +0.98%

c o l U M B U S +1.09%

e l K H a r t +1.30%

e v a n S v i l l e +0.40%

f o r t W a y n e +1.40%

i n d i a n a p o l i S +1.21%

K o K o M o +2.75%

M U n c i e +2.26%

S o U t H B e n d +0.96%

A v e r A g e f o r I n d I A n A +1.03%

note: Growth in total manufacturing payroll.

The economic recovery that has finally gripped the nation has had a remarkable impact on manufacturing. From consumer durables such as automobiles, to the purchase of business equipment and rolling stock, the manufacturing industry has recovered, boosting employ-ment, incomes and production. This comes at an important time for Indiana, which has seen important improvements in its fiscal and business climate over the past decade. As the 2011 scorecard shows, Indiana is the only state to receive four A grades and nothing below a C- in the region.

This is important because so much new business investment is geo-graphically constrained to a broad region, such as the Midwest or the southeast. Indiana is poised to enjoy greater fruits of the recov-ery than it would if it were not performing well in a few areas, and not lagging dramatically in any area of manufacturing or logistics performance. however, there are cautionary notes. In particular, In-diana’s human capital development is inadequate to sustain high level income growth and to continue to attract new investment in manufacturing over the coming decade.

2011 – 2012 State ForecastIn 2010 we predicted very robust growth in Indiana through 2011, with double-digit increases for income growth in Ko-komo, Columbus, and Elkhart. These predictions reflected the rapid bounce manufacturing enjoyed in the 18 months follow-ing the recession.

The coming year will extend the full manufacturing recovery now underway in Indiana. Though high oil prices, uncertainty surrounding home prices, and the fear of inflation will slow the growth of demand for manufactured goods, it is clear that this will be a strong year for manufacturing in Indiana. The slower growth figures we predict reflect material growth as the industry returns to trend from the rapid expansion that occurred in the months following the recession.

This forecast predicts that 2011 will be a record year of man-ufacturing production in Indiana, accompanied by both job growth and income growth across the state. As the following table illustrates, we project incomes of manufacturing workers in Indiana to grow by 1.03 percent over the coming year. some of the cities hardest hit by the recession will see the largest recoveries, with Kokomo and Muncie seeing income growth of more than 2.00 percent. This will largely be driven by increased investment by Chrysler in Kokomo and the continued recovery of domestic automobile production, and by hiring from Progress Rail and Brevini in Muncie. Elsewhere, growth in manufacturing reflects the recovery in manufacturing in Indiana.

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A L A B A M A B C F B+ B C B B F

A L A S K A F D C- C- D D A F F

A R I Z O N A C C D+ C F C B C- C

A R K A N S A S C+ C D- A C- F D+ C D-

C A L I F O R N I A C+ B C D C A D D A

C O L O R A D O D+ C- C C+ D+ B B C A

C O N N E C T I C U T C+ D B C B B+ D- A B

D E L A W A R E C- F C- F B+ A B C C

F L O R I D A D C+ C- B- D- D+ B+ C+ C-

G E O R G I A D+ B+ D+ C C+ F C B+ C

H A W A I I F F C B F C- B C- C-

I D A H O C+ D C C D D C+ F D+

I L L I N O I S C A C D- B C+ D C B-

I N D I A N A A A C C- A C+ A C C-

I O W A A B B C D C F C- C

K A N S A S A C C+ A C D C D C

K E N T U C K Y B B D- C B+ C- C C+ D

L O U I S I A N A C B F C C+ B C C D

M A I N E C D- B F C D D C D-

M A R Y L A N D D D B B- D+ B D C- B+

M A S S A C H U S E T T S C- D B- C C B+ D D A

M I C H I G A N A C+ D D A C C- F C

M I N N E S O T A B- B A C C D+ F C C

M I S S I S S I P P I C+ C- F C C- C B A F

M I S S O U R I C B C B+ B D- A B C-

M O N T A N A D D+ C+ C+ F C- A C D

N E B R A S K A C- C+ A C F D C D- D+

N E V A D A F D D B D B C D+ C

N E W H A M P S H I R E B+ F A F B C- C D C+

N E W J E R S E Y C- B- C+ D+ C+ C F F B

N E W M E X I C O F D- F B F A C F C

N E W Y O R K D- C C- C C C F C+ A

N O R T H C A R O L I N A B- C C D C C C- B B

N O R T H D A K O T A D C A A C B- C+ D+ F

O H I O A A C D A C- D- B- C

O K L A H O M A C C D B D B B C D

O R E G O N B C C D C A C D- B-

P E N N S Y LV A N I A C A C D B- C D B+ C+

R H O D E I S L A N D D F C- C- D D F B B+

S O U T H C A R O L I N A B+ D+ D C- A F C A D

S O U T H D A K O T A D+ C- B A D F B+ C F

T E N N E S S E E B B+ D B- A C+ C- B C-

T E X A S C A D B B+ A C C C+

U T A H C C- B A C C A B B

V E R M O N T B F B C- C D- C- D B

V I R G I N I A D- C- C B C C+ B A B

W A S H I N G T O N C C A F C B C A A

W E S T V I R G I N I A C- C F F B C D+ C- D

W I S C O N S I N B+ B- B+ D- C D- C- B- C

W Y O M I N G D- C B+ C- C- B B D C

2011 National ScorecardGlossary

About Conexus Indiana

About Ball State’s CBER

» A D U L T B A S I C E D U C A T I O N : Education in basic reading and writing, offered through either community/technical colleges or state workforce development agencies.

» C O M M O D I T Y F L O W S : The value of shipments through a region.

» E X P O R T S : Products or commodities sold to foreign individuals and firms.

» F O R E I G N D I R E C T I N V E S T M E N T: Expenditures by foreign owned firms on plant and equipment in a region.

» H U M A N C A P I T A L : A measure of educational and skills attainment, and in some settings health of residents and workers within a region.

» I M P O R T S : Products or commodities purchased from foreign firms.

» I N C O M E : All direct compensation to workers.

» I N F R A S T R U C T U R E : Road rail, bridge and other transportation related public goods.

» L O G I S T I C S : Transportation and warehousing industry groups.

» M A N U F A C T U R I N G : The production of consumer durable and non-durable goods.

» P R O D U C T I V I T Y: The value of goods sold by a firm adjusted to a per worker basis.

» R & D : Research and development, both in primary and applied science, usually measured in dollars.

» U N E M P L O Y M E N T I N S U R A N C E : A federal program dating to 1933 that requires firms to participate in state regulated insurance plans to compensate workers who are laid off or discharged from work.

» V A L U E - A D D E D : Firm or industry measure of the value of the product sold, minus all input costs.

» W O R K E R S ’ C O M P E N S A T I O N : A federal program dating to 1913 that requires firms to provide disability and death insurance through state-administered or regulated insurance plans.

MethodologyThe categories in this report were chosen as those most likely to be considered by site selection experts for manufacturing and logistics firms, and by the prevailing economic research on growth. Each cat-egory included multiple variables that were aggre-gated and then ranked 1ST – 50TH, for each state—1ST being the most desirable. Within each category, the lowest aggregate score assigned provided the overall rank. Grades were assigned using a normal distribution of grades, A through F. Plus and minus scores were not assigned to A or F grades.

Conexus Indiana is a private sector-led initiative focused on the advanced man-ufacturing and logistics sectors—two industries that combined employ more than one of every five Hoosiers. We are focused on making Indiana a global manufacturing and logistics leader by strengthening the state’s human capital, building industry partnerships to capitalize on new opportunities and address key challenges, and promoting a better understanding of the importance of these industries to our economic future.

Conexus Indiana’s most urgent mission is building tomorrow’s manufacturing and logistics workforce, preparing Hoosiers to take advantage of high-tech ca-reers in these exciting fields. We are also focused on developing a unified strat-egy to enhance our logistics capabilities, linking manufacturers with in-state suppliers to streamline supply chains and spur investment in Indiana, and un-dertaking other strategic projects that will help the manufacturing and logistics sectors thrive here at the Crossroads of America.

C O N E X U S I N D I A N A 111 Monument Circle, Suite 1800 Indianapolis, IN 46204 317-638-2107 www.conexusindiana.com

The Center for Business and Economic Research (CBER) is an award-winning economic policy and forecasting research center housed within Ball State Uni-versity’s Miller College of Business. CBER research encompasses health care, public finance, regional economics, transportation, and energy sector studies. View CBER’s current studies and publications.

The center produces the CBER Data Center—a one-stop shop for economic data, policy analysis, and regional demographics—and the Indiana Business Bulletin—a weekly newsletter with commentary on current issues and regularly updated data on housing, wages, employment, and dozens of other economic indicators.

In addition to research and data delivery, the center serves as the business forecasting authority in the Muncie area—holding the annual Indiana Economic Outlook luncheon and quarterly meetings of the Ball State University Business Roundtable.

The 2011 Manufacturing and Logistics National Report grades the U.S.’s 50 states in several areas of the economy 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.

C E N T E R F O R B U S I N E S S A N D E C O N O M I C R E S E A R C H Whitinger Business Building, Room 149 2000 W. University Ave. Muncie, IN 47306 765-285-5926 www.bsu.edu/cber

2011 MANUFACTUR ING + LOG IST ICS

National Report

2011 MANUFACTUR ING + LOG IST ICS

Categories + Grades

Manufacturing Health Logistics HealthThe movement of goods is of central importance to the production of goods. Without a robust logistics industry, manufacturing and commodity production will not occur. Logistics comprises not merely the capacity to move goods, but to store inventory and manage the distribution and processing of manufactured goods. Logistics firms depend upon many of the same factors as manufacturing firms in their location decision, but there is a more complex interplay between local conditions and the existing or planned transportation networks of roads, rail, waterborne traffic and air.

To measure the logistics industry we include the share of total logistics industry income as a share of total state income, and the employment per capita. We also include commodity flows data by both rail and road. To this we measure infrastructure spending as the per capita expenditure on highway construction. These data are collected from the U.S. Department of the Census, the Bureau of Economic Analysis, Regional Economic Information System and the Center for Transportation Statistics, U.S. Department of Transportation.

The production of goods holds a particular place of interest in the U.S. economy. Manufacturing firms are not necessarily reliant on local demand for goods and are therefore footloose. Their location then depends more on local factors such as the quality and availability of the labor force, transportation infrastructure, non-wage labor costs, access to innovative technologies and the cost of do-ing business. Manufacturing is the production of both consumer durable goods such as automobiles, electronics and home appliances, and consumer non-durable goods such as clothing, processed foods, and other goods that are consumed after use.

To measure manufacturing we include three variables, the share of total income earned by manufacturing employees in each state, the wage premium paid to manufacturing workers relative to the other states’ employees and the share of manufacturing employment per capita. These data are collected from the U.S. Department of the Census, and the Bureau of Economic Analysis, Regional Economic Information System.

Global ReachThe level of international trade—both in exports and imports—is a robust mea-sure of the region’s compet-itiveness in the production, movement and distribution of consumer durable and non-durable goods. Both firms and regional govern-ments focus considerable effort at improving ties with foreign firms, but for differ-ent reasons. Governments

seek foreign investment in plant and equipment, while firms care about supplier relationships on both commodities and finished goods. Of course manufacturers want to make goods with a global market appeal. How well this is done is an important predictor of the health of manufacturing and logistics sectors into the future.

To measure global reach we include the export related measures of per capita exported manufacturing goods and the growth of manufacturing exports and the foreign direct in-vestment measures of the amount of manufacturing income received annually from for-eign owned firms in a state, the level of adaptability of the state’s exporters to changing demand, as well as the reach of foreign direct investment, which is simply the variance or spread of foreign direct investments from different regions of the world. These data are collected from the Department of Commerce’s International Trade Administration.

DiversificationThere are both risks and rewards to economic diver-sification. States that have a high proportion of manu-facturing activity in a single sector typically suffer high-er volatility in employment and incomes over a busi-ness cycle. Less diversified regions are also more likely to experience greater effects of structural changes to the economy which involve a

single sector. For these regions, state and local policy makers often focus on attracting and retaining more diverse economic activity within every group. One potential benefit of low levels of economic diversification is that specialization and the resulting agglom-eration economies often emerge in these highly specialized regions. As a consequence, policies which seek to diversify the economy are typically pursued in concert with efforts to strengthen the supply chain of existing industries.

In this section we measure the diversification of manufacturing activity in each state using the well known Herfindahl-Hirschman Index at the 2- digit level of the North American Industrial Classification System. In this approach we calculate the total share of income in each manufacturing sector, which ranges from 0 to 100 percent. We then sum the squared values of all 22 sub sectors of manufacturing. If all the manufacturing in a state exists within one sector, the value of the HHI is 1002 or 10,000. If each of the sectors has an equal share of the manufacturing market, each industry share would be roughly 4.54 percent of the total. Squaring this value for each sector, and summing this result would yield an HHI of roughly 454. To obtain interstate comparisons, we then rank each state from the least to the most diverse.

Venture Capital per CapitaAccess to venture capital is a key step for nascent business expansion ef-forts. This seed money is offered by a small segment of financial service provid-ers interested in high yield activities, typically involv-ing technology or high-end intellectual property. Ven-ture capital activities rely on deep industry research and analysis as well as a bridge of expertise in potential markets. This understanding of potential markets, the commercialization process and the core management assistance to new companies distinguishes venture capital (VC) from other investment tools. Both public activities like Indiana’s 21st Century Fund and private firms engage in venture capital efforts. The presence of available venture capital is widely felt to be a key indicator of the maturity of the regions commercialization networks and is a widely used indicator of the health of innovation and creativity.

We rank states by total per capita venture capital expenditures as reported by the State Science and Technology Institute, then assign a grade.

Productivity and InnovationThe value of manufactured goods per worker—pro-ductivity—as well as firm access to inventions and innovations is critical to the long term performance of a firm and the industry as a whole. Though innovations and inventions are aggres-sively sought from across the globe, the presence of local talent in these areas through access to univer-

sity laboratories and non-profit research activities plays an important role in location decisions by manufacturers.

To measure productivity and innovation we use manufacturing productivity growth, industry research and development expenditures on a per capita basis, the per capita number of patents issued annually. These data are collected from the Cen-sus of Manufacturers, the National Science Foundation, the Patent Office and a study by PricewaterhouseCoopers/National for the Venture Capital Association.

Human CapitalNo factor matters more to businesses than the qual-ity and availability of la-bor. Workers represent the largest single cost of doing business, but more impor-tantly they are the source of most innovation and process improvements that distinguish successful firms from those that are not suc-cessful. Because produced goods have a high degree of value dependent on each individual worker in a production line or transportation leg or hub, a uniformly high quality of workers is required. These workers must pos-sess the ability to understand increasingly complex production processes which are today mostly managed by computers with specialized software. The factories, rail yards, distribution facilities and machine shops of today are complex, highly techni-cal and are dependent on workers who can work successfully in this environment. Human capital is the most important factor in firm location decisions, which, in the United States, is almost entirely made up of the quality of educational background.

Our human capital measurements include rankings of educational attainment at the high school and collegiate level, the first-year retention rate of adults in community and technical colleges, the number of associates degrees awarded annually on a per capita basis and the share of adults enrolled in adult basic education. These data are from the National Center for Educational Statistics.

Benefit CostsNon-wage labor costs repre-sent an increasingly impor-tant part of total business costs. These are affected by local and state public policy as well as worker demo-graphics, health, and indus-try and firm performance. Benefits range from a vari-ety of health care issues, to liability and casualty insur-ance, workers compensa-tion and other costs such as retirement and other fringe benefits.

To measure benefits costs, we include data on health care premiums and long term health care costs, workers’ compensation costs per worker and fringe benefits of all kinds as a share of worker costs. These data are collected from the American Association of Retired Persons, Bureau of Economic Analysis, Regional Economic Information System and author’s calculations from data produced from the national input-output model.

Tax ClimateFew factors garner as much policy interest as do state and local taxes. For firms which may operate virtu-ally anywhere, tax rates—along with the quality of local public goods—matter a great deal in location de-cisions. Taxes on the busi-ness, individual income taxes (both on workers and small business), sales, un-employment, insurance and property taxes all play a role in assessing regions for a potential employer location.

To measure the tax climate we use data on corporate taxes, income and sales and use taxes, property and unemployment insurance tax data collected by the Tax Foundation.

V I E W T H E I N T E R A C T I V E V E R S I O N O F T H I S R E P O R T O N L I N E :www.bsu.edu/cber » “Current Studies and Publications”

FDCBAGRAD ING SCALE

A methodology for grade calculation and a glossary of terms can be found on the back page, along with the 2011 National Scorecard. View the interactive version of this report online: www.bsu.edu/cber » “Current Studies and Publications”