A new KPMG study, released on April 30, 2010, cites low labor costs, leasing prices, real estate, and sales tax as favorable factors for making St. Petersburg’s MSA (metropolitan statistical area) the most cost effective place to do business, as compared to 22 U.S. regions with populations of two million or more.
The Competitive Alternatives study, by KPMG, measured 26 cost factors including labor, taxes, real estate, and utilities over a 10-year period. Companies can use the study to compare regions and determine which cities in the U.S. can offer a cost-competitive business environment.
According to the study, St. Petersburg’s MSA has a cost index of 96.0, representing business costs 4.0 percent below the U.S. national baseline of 100.0. St. Petersburg was followed by the MSA regions of Atlanta at 96.3, Miami at 97.0, Baltimore at 97.1 and Dallas-Fort Worth at 97.7, rounding out the report’s top five U.S. city rankings.
The site selection process of the best city for a business operation requires a balanced consideration of many factors, including business costs, business environment, personnel costs, and quality-of-life issues. St. Petersburg continues to perform in each of these areas, making it a very attractive location for business expansion and relocation.