The least cost business location

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Apr 152010

This table shows the cost of doing business in 10 countries, according to the latest (2010) KPMG guide “Competitive Alternatives” which compares business costs for more than 100 cities. The study uses a compound index of business costs, which includes 26 significant cost components, as well as a variety of non-cost factors such as labor availability and skills, economic conditions and markets, innovation, infrastructure and regulatory environment. It also incorporates personal cost of living and quality of life. The baseline for the scores is the USA which is given an arbitrary score of 100.0.

CountryCost of doing business
(USA = 100)

Mexico clearly offers the lowest cost for business of the 10 countries studied by KMPG with a business cost advantage over the USA of 18.2%.

In fact, in terms of the individual cities studied, Monterrey placed 1st as the most cost-efficient business location (18.5% less expensive than the average of the four largest USA cities—New York, Los Angeles, Chicago and Dallas-Fort Worth), while Mexico City placed 2nd (17.9% less expensive). 3rd place on the list was taken by the Canadian city of Montreal, 4th by Manchester (UK). Vancouver and Toronto occupied 5th and 6th, followed by the least expensive US location for business, Tampa.

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