5 Worst States to Reduce Manufacturing Costs

We at ITI specialize in helping businesses reduce manufacturing costs by offering advanced product sourcing solutions with our overseas China manufacturing capabilities. This huge cost-saving benefit is due mainly to a combination of low labor costs, business-friendly regulations, and our experience in navigating foreign cultures. At no time is this more evident than when reports, such as “2014 Best & Worst States for Business” are published. Have a look at the top offenders below.


    1. California – For this year, California is the “golden state” in name alone. It carries a top, marginal tax rate of 33%, making it the third highest taxed land in the industrialized world, behind Denmark and France. The state also gets low marks for taxation and regulations, and the site even went on to comment that “California goes out of its way to be anti-business and particularly where one might put manufacturing and/or distribution operations.”


    1. New York – It is more difficult than ever for businesses and manufacturers to make it in New York, which has lost a whopping 104,470 in population in 2013. It also has a crippling state-local tax burden of 12.9%, compared to the national average of 2.9%. And if you’re wondering about those “Open for Business” ads the state is running, the fine print allows only a narrow niche of companies to take advantage of the new favorable laws.


    1. Illinois – In addition to the problems faced in California and New York, Illinois also has one of the highest pension burdens in the nation, with no plans to address or correct the issue. The result is 67,313 people leaving the state last year, and the state has been likened to “doing business in a third-world country.”
    2. New Jersey – All those who flee from New York are not ending up in its edgier neighborhood, which lost 45,035 of its own in 2013. Fans of Republican Governor Chris Christie may be surprised to learn that his resolute tough manner has not helped in some areas in which the legislature has moved without him. This comment seems to sum it all up: “New Jersey will continue to lose businesses unless they find a way to alleviate the punitive taxes on businesses.”


  1. Massachusetts – Compared to its Northeastern neighbors, Massachusetts doesn’t seem so bad, and by comparison, lost only a paltry 2,833 of its population in 2013. The state-local tax burden here is slightly less than New York at 10.4%, and the unemployment rate is only 0.3% higher than the national average.

You can read the rest of the report here.

And if you’re in need of advanced manufacturing services and want to expand without experiencing the burden these and other states can bring, contact us today to see how we can reduce your manufacturing costs.

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