The United States is the top-rated nation for aerospace “attractiveness,” according to an annual report issued by consulting company PricewaterhouseCoopers.
The US received the ranking “as a result of the aerospace industry’s significant scale” as well as its economy “and active defense posture,” PwC said.
The report weighed factors that included labor, infrastructure, cost, tax policy “and geopolitical risk,” according to the consulting firm.
The performance of the US aerospace industry “far exceeded that of other countries in the analysis,” PwC said. “The United States also placed high in the Labor, Geopolitical Risk , and Infrastructure categories, but fell short on Tax Policy.”
Business groups generally argue the US corporate tax rate is too high. The combined federal, state and local tax rate is almost 39%, while businesses often pay less than the maximum. The administration of President Donald Trump wants to reduce the rate.
Other countries that ranked high in the report included:
–Switzerland at No. 2, moving up five positions from last year. PwC said the country “ranked well in the Geopolitical, Economy and Labor categories.”
–United Kingdom at No. 3, falling one position. The consulting company cited uncertainty from the nation’s planned exit from the European Union. At the same time, PwC said the UK “still received the benefits of a powerful wave of prior investments.” Those included investments by Boeing Co. and Rolls-Royce PLC.
–Australia at No. 4, up 14 places. The nation “benefited from low strategic, political, and sovereign risk as well as a predictable climate.”
–Canada at No. 5, down two positions. PwC said the country is bolstered by aerospace activity from Bombardier, Textron’s Bell Helicopter and United Technologies Corp.
The PwC report also had aerospace rankings for US states. Georgia came in at No. 1, in part because of the state’s economy. Michigan was No. 2, up from No. 8 a year earlier. PwC cited the state’s “strong performance in the Economy, Infrastructure and Cost categories.”
Arizona finished at No. 3, down from the top spot last year. The state “continues to have an ideal climate for aircraft testing and space observation.” North Carolina climbed to No. 4, up 14 positions, in part because of low taxes and electricity rates. Virginia was No. 5, in part because of labor including Langley, VA, which has “one of the country’s largest populations of military personnel and its NASA research center.”
Washington state, where Boeing’s commercial aircraft business is based, fell out of the top 10, finishing No. 16. The state “does not perform well in the Cost, Infrastructure and Tax Policy categories,” PwC said.