Business costs in South Dakota are cheapest in the United States
The cost of doing business in some American states is only 75 percent of the national average in terms of unit labour costs, taxes, and energy costs for businesses seeking to relocate. According to a new ranking of the states published by the economics research firm Economy.com Inc., the Northeast remains by far the most expensive area for business while some Midwest and Southern states are bargains. Avoid New Jersey the priciest state where costs are 114.3 percent of the national average.
Costs are almost as bad in Massachusetts, Hawaii, Connecticut, New York and Michigan.
But in South Dakota, Wyoming, Nebraska, Oklahoma and Iowa costs are 15 percent to 25 percent lower than the national average.
Fast growth in output per worker has offset wage gains in Utah, Arizona and New Mexico over the past decade. Yet urban areas in the Northeast and California are strong in human capital, with research centres and highly educated workforces which help to keep them competitive.
Source: Gene Koretz, Economic Trends: The Lure of Low Business Costs, Business Week, January 15, 2001.
For more on State Business Environment http://www.ncpa.org/pd/state/state2.html
Publish date: 26 January 2001
The views expressed in the article are the author’s and are not necessarily shared by the members of the Foundation.