A study grading all 50 states based on their taxes on manufacturing businesses places Missouri among the top five nationwide, according to information released Monday.

The 2010 Manufacturing and Logistics Report Card, prepared by Ball State University's Center for Business and Economic Research, issues state grades in each of nine categories: manufacturing, logistics, human capital, cost of benefits, global reach, diversification of industries, productivity and innovation, tax climate, and venture capital.

The best tax climate for manufacturers is in Florida, followed by Indiana, Missouri, Montana and Utah, according to the study, while the worst is in Alaska, Arkansas, Mississippi, Nebraska and Wyoming.

In addition to its A in tax climate, Missouri received Bs or B-minuses in logistics, global reach and diversification - a key factor to reduce volatility, CBER Director Michael Hicks said in a news release.

Overall, the center thinks manufacturing will recover to prerecession levels in the next two years in states with low tax rates, a diverse collection of industries and a strong base of government services.

"There is a great deal of pent up angst to expand or update existing manufacturing facilities or to simply build new ones," Hicks said in the release. "Those states with low tax rates and policies favorable to business creation will be the first to see new facilities in the next 18 to 24 months."

The report was prepared by CBER at the request of Conexus Indiana, the state's advanced manufacturing initiative. A state-by-state breakdown is available at the university's Web site.