Bloomington-based Cook Group announced in July that they had been planning to build 5 new facilities in small communities throughout the Midwest including Indiana. Why?
Some medical-device makers including Kalamazoo-based Stryker and Zimmer Holdings have announced large layoffs. Why?
Much smaller manufacturing companies including ConMed (employing in CO and FL), Symmetry Medical (employing in Mi and NH), and ultrasound pioneer Sinosite fear their small profit margins are in peril. Why?
Obamacare. Medical device sales are the target with the latest hit from Obamacare. There is a 2.3% tax on all medical device sales. Doesn't sound like much? This tax is not on profits but on gross receipts.
The smaller manufacturers fear this will consume their profit margin completely.
My prediction? Job losses, expansions lost, and high taxes will force manufacturing to migrate to other countries. Kill jobs, kill future expansions, move jobs to Ireland and similar friendly countries.
The culprits in this are Obamacare and corporate tax rates.
'til later
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