From Team NEO on region’s advantages for doing business:
There are many factors that go into business location or expansion decisions. When meeting with clients, we promote the benefits of doing business in NEO, highlighting:
- Unsurpassed access – NEO provides easy access to North American and European markets. The region is within a day’s drive of 60% of all U.S. Fortune 500 headquarters.
- Business-friendly environment — Robust driver industries, growing middle market companies and an entrepreneurial network that fosters innovation all supported by a business-friendly State and its localities.
- Affordability – Cost of doing business from labor to energy, to taxes to sites and more.
The new issue of Team NEO’s Quarterly Economic Review (QER) focuses on affordability, taking a deep dive into the cost of operating a business in Northeast Ohio. Attached is a copy of that report. You may recall, we produce QERs every quarter to keep the local media and our stakeholders abreast of our region’s overall economic activity. We also highlight in each issue one of our competitive advantages.
Here are some of the key points made in this issue:
- Moody’s Analytics defines four components that make up the cost of doing business: labor costs, energy costs, state and local taxes, and office rents. By this definition, Moody’s reports that NEO is almost 10% lower when compared to the U.S. average.
- Median Annual Wage – With an annual median wage of $19.55, NEO offers employers a low-cost workforce, about 8% lower than the national average.
- Office Rents/Real Estate – NEO’s average cost for industrial property, $3.90 per square foot, is 33% lower than the national average of $5.83.
- Construction costs – The cost to build facilities is 2% lower than the national average.
- Cost of Living – NEO is 11.4% lower than the national average.