Low labor costs and leasing prices help make Tampa the cheapest place to do business among large U.S. cities, a new study by audit firm KPMG LLP.
In a study released today, KPMG compared business costs in 22 U.S. communities with more than 2 million people. The firm measured the communities on 26 cost factors including labor, taxes, real estate and utilities over a 10-year period.
Companies can use the study to see which regions offer a cost-competitive business environment, KPMG said.
According to the study, Tampa had a cost index of 96, representing business costs 4 percent below the U.S. national baseline of 100. Tampa was followed closely by Atlanta at 96.3, Miami at 97 and Baltimore at 97.1.
Finishing last out of the 22 large communities was San Francisco, which was hurt by its high labor and sales tax costs, the survey found.
Bruce Register, who recruits businesses for the Hillsborough County Economic Development Department, was enthused and somewhat surprised by KPMG's survey. Real estate costs have fallen in the Tampa Bay area, and ordinarily that would be an advantage for Tampa, Register said.
However, in the current economy many other communities also can boast of discounted real estate, so that eliminates some of Tampa's advantage, he said. Still, he said KPMG's ranking might be useful in marketing the area to businesses.
"When we get ranked as low-cost, that's a great thing," he said.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement
Advertisement