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Friday, February 8, 2013

Cities With Most Expensive Business Costs

Have you ever wondered how much it would cost to run your business in another city?

We tend to have a general idea of which are the most expensive cities to live in the US, but when running a business, it’s important to know which are those cities in which its more economical to produce whether it´s because of tax benefits, lower prices, better conditions, geographical locations, leases, etc.

KPMG, a company known worldwide for providing audit, tax and advisory services just released a study ranking the cities with the higher business costs in the US and the world. The index gave the whole US an assigned baseline of 100, and it included an analysis of 19 industries in 110 cities from 14 countries.

Not surprisingly, New York City is the most expensive one with an index of 103.4, while Lexington, KY is one of the most economical cities to do business with 94.7.

Below is the graph with the ranking per city for the North East US and Canada area:

Source: KPMG

Although the difference seems small, the real cost for a company located in Lexington vs a company located in New York may be of 1 million.  

Below, the graph with a comparison of costs between cities:

Source: KPMG

Of course we´re not asking you to relocate your business, but instead take this opportunity to review the services, products and supplies you are buying for your company and do a cost evaluation in case it would be more cost effective to bring them from another city.

And regardless what city you choose to work from, give us a call at (866) 354-5478 or visit OfficeList and we will help you find the best office in town. 

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