U.S. Cost Comparison for Greater ichmond, Va. U.S. model
Hello from the ichmond egion! With 50 states, hundreds of cities, and thousands of communities, choosing where in the United States to locate a new or expanding business can be a challenge. Access to raw materials and customers, transportation, telecommunications, labor, and real estate are all critical factors in what makes a location the right one for a business. The Greater ichmond region offers many advantages to businesses looking to expand or relocate. We are not always the lowest cost location in every category, but as the numbers show, our high-quality business environment offers an exceptional value when compared to the competition. This cost comparison provides a template for executives tasked with evaluating and comparing start-up and annual operating costs in ichmond as well as several other cities in the United States. The following models represent typical operating scenarios for three different business activities. The first comparison provides estimates for a typical office with 50 employees occupying 10,000 square feet of office space. The second comparison is tailored VCU Creative Services to a distribution facility that employs 25 workers and occupies 80,000 square feet of office and warehouse space. The third comparison represents a manufacturing facility with 50 employees occupying 35,000 square feet of space. Assistance Available from the Partnership The Greater ichmond Partnership, Inc. is the regional economic development group representing the City of ichmond and the Counties of Chesterfield, Hanover and Henrico. We offer site location assistance and other services to domestic and foreign companies planning new or expanded facilities. Partnership Services Our free and totally confidential services include: Custom research based on the company s parameters and data requirements (workforce, business costs, transportation, suppliers, taxes, incentives) Site location assistance and real estate tours Structured itinerary that includes a community overview Meetings with suppliers and professional service providers Introductions to government officials and community leaders Public relations services elocation services for company employees Start-up services such as employee recruitment Existing business support through the Business First Greater ichmond program Business Clusters Greater ichmond is home to more than 60,000 businesses, with everything from Fortune 1000 companies to two-person start-ups. Our strongest business clusters include: Supply Chain Management Advanced Manufacturing Professional & Creative Services Health & Life Sciences Finance & Insurance Food & Beverage Corporate Headquarters Data Centers
Hanover 1 95 Average commute time is only 25 minutes UPS & FedEx district hubs are located in the region Hanover Airport 301 64 295 288 76 73 ichmond 150 Chesterfield Airport Port of ichmond 895 295 ichmond International Airport Henrico 64 Home to 10 Fortune 1000 headquarters & 150+ international firms ichmond International Airport is second most efficient in N. America Chesterfield 288 95 1 301 James iver Norfolk Southern & CSX provide rail freight service The James iver connects Port of ichmond to the Atlantic Ocean 295 85 Four Interstates converge in the metro area, including 95, 85 & 64 Transportation & Infrastructure ichmond is strategically located at the mid-point of the East Coast, less than 100 miles from Washington, D.C. ichmond International Airport (IC) provides about 160 daily flights with connecting flights to destinations worldwide. Washington Dulles International Airport (IAD), one of the nation s largest international airports, is only 120 miles from ichmond, with nearly 50 nonstop international flights More than 55% of the nation s consumers are within 750 miles AMTAK provides passenger rail service with three stations in the metro area The ichmond egion s shippers are within 100 miles of the Port of Virginia at Hampton oads, the 3rd largest container port on the U.S. East Coast Tax ate Comparison Location Corporate Income Tax Sales Tax Personal Income Tax ight to Work State Notes: *The Illinois rate of 9.5% is the sum of a corporate income tax rate of 7% plus a replacement tax of 2.5% ** Percentage of federal gross income with modification Private Sector Union Membership ichmond, VA 6.0% 5.3% 2.0% to 5.75% Yes 3.1% Atlanta, GA 6.0% 8.0% 1.0% to 6.0% Yes 3.8% Boston, MA 8.0% 6.3% 5.3% No 6.8% Charlotte, NC 6.9% 7.3% 6.0% to 7.75% Yes 1.6% Chicago, IL 9.5%* 9.8% 5%** No 10.0% Los Angeles, CA 9.99% 6.34% 3.07% No 7.8% Newark, NJ 9.0% 7.0% 1.4% to 8.97% No 8.7% Philadelphia, PA 8.84% 9.0% 1.00% to 13.3% No 8.9%
Comparison: 50-person Office Operating costs for an office facility are extremely competitive in the ichmond egion. Greater ichmond boasts a unique blend of business-friendly regulations, an affordable, high-quality lifestyle for workers and first-class executive amenities, making it an ideal office location. Based on the eight compared communities and the tables in this document, ichmond offers the lowest cost for office rent, electricity, unemployment tax and the lowest corporate income tax; second-lowest workers compensation and housing costs. Virginia also ranks as the 4th best state in the country for business by Forbes.com. ichmond, VA Boston, Ma newark, nj charlotte, nc eal Estate ent, Average Annual Asking ($/SF) $18.42 $30.69 $25.91 $22.32 Annual Cost - 10,000 SF Office $184,200 $306,900 $259,100 $223,200 Commercial Electric ates (cents/kwh) 7.76 15.29 14.78 8.01 Management Occupations $116,660 $130,470 $138,640 $122,160 Business and Financial Operations Occupations $69,970 $83,790 $80,080 $72,590 Office and Administrative Support Occupations $34,970 $42,610 $38,900 $35,120 Average per Occupation Title Chief Executives $198,060 $208,870 $206,620 $214,880 General and Operations Managers $122,190 $140,030 $163,240 $132,500 Human esources Managers $116,650 $124,650 $145,950 $126,590 Human esources Assistants $38,000 $49,040 $41,130 $36,900 eceptionists $27,510 $31,420 $29,340 $28,150 Executive Secretaries $48,740 $57,600 $61,720 $50,520 Computer Support Specialists $51,740 $63,610 $53,580 $51,810 Database Administrators $83,110 $84,040 $92,310 $90,540 Financial Analysts $82,020 $104,200 $88,754 $82,190 Sales epresentatives $68,650 $80,230 $65,440 $67,300 Accountants and Auditors $69,900 $79,630 $87,530 $74,360 Claims Adjusters $60,710 $66,750 $73,540 $60,840 Purchasing Agents $65,280 $71,070 $72,660 $58,090 Comparison: 25-person Distribution Facility Greater ichmond is strategically located at the center of the East Coast economic corridor, with more than 55% of the U.S. population within 750 miles of the area. Based on the eight compared communities, ichmond offers the lowest real estate and electric rates, sales and unemployment tax and ranks the lowest in terms of traffic delays; second-lowest workers compensation and building costs. ichmond, VA Boston, Ma newark, nj charlotte, nc eal Estate ent, Average Annual Asking ($/SF) $3.24 $5.51 $6.32 $3.61 Annual Cost - 80,000 SF Distribution Facility $259,200 $440,800 $505,600 $288,800 Commercial Electric ates (cents/kwh) 7.76 15.29 14.78 8.01 Transportation and Material Moving Occupations $32,190 $35,730 $36,360 $34,690 Average per Occupation Title Transportation, Storage, and Distribution Managers $86,820 $93,490 $117,200 $94,330 First-Line Supervisors of Laborers $49,670 $47,020 $54,570 $46,250 First-Line Supervisors of Vehicle Operators $55,220 $60,370 $57,820 $54,370 Driver/Sales Workers $25,850 $32,440 $28,510 $30,910 Laborers $26,670 $31,810 $27,360 $27,590 Packers $26,700 $22,860 $21,200 $22,380 Conveyor Operators $35,485 $35,700 $32,760 $28,350 eceptionists $27,510 $31,420 $29,340 $28,150 Home to more than 60,000 businesses 58% of population with some college or higher Building costs are 13% below the national average
Comparison: 50-person Office Operating costs for an office facility are extremely competitive in the ichmond egion. Greater ichmond boasts a unique blend of business-friendly regulations, an affordable, high-quality lifestyle for workers and first-class executive amenities, making it an ideal office location. Based on the eight compared communities and the tables in this document, ichmond offers the lowest cost for office rent, electricity, unemployment tax and the lowest corporate income tax; second-lowest workers compensation and housing costs. Virginia also ranks as the 4th best state in the country for business by Forbes.com. eal Estate $20.45 $25.09 $28.60 $33.78 ent, Average Annual Asking ($/SF) $204,500 $250,900 $286,000 $337,800 Annual Cost - 10,000 SF Office 9.96 12.36 9.20 14.72 Commercial Electric ates (cents/kwh) $115,550 $133,880 $109,660 $123,790 Management Occupations $73,290 $75,500 $74,750 $76,330 Business and Financial Operations Occupations $35,140 $38,070 $37,040 $37,910 Office and Administrative Support Occupations $198,910 $210,940 $174,300 $206,430 Chief Executives Average per Occupation Title $119,310 $140,790 $109,000 $127,920 General and Operations Managers $115,160 $151,600 $103,050 $115,840 Human esources Managers $39,260 $38,830 $42,310 $42,400 Human esources Assistants $28,010 $28,290 $29,140 $29,050 eceptionists $51,590 $58,300 $51,910 $57,610 Executive Secretaries $51,420 $50,140 $52,520 $54,660 Computer Support Specialists $84,110 $76,520 $80,770 $90,470 Database Administrators $84,070 $81,330 $82,550 $105,830 Financial Analysts $61,250 $74,220 $65,080 $61,790 Sales epresentatives $76,040 $78,160 $74,460 $78,090 Accountants and Auditors $65,240 $64,240 $63,210 $64,670 Claims Adjusters $63,020 $70,620 $62,820 $67,220 Purchasing Agents Comparison: 25-person Distribution Facility Greater ichmond is strategically located at the center of the East Coast economic corridor, with more than 55% of the U.S. population within 750 miles of the area. Based on the eight compared communities, ichmond offers the lowest real estate and electric rates, sales and unemployment tax and ranks the lowest in terms of traffic delays; second-lowest workers compensation and building costs. eal Estate $3.26 $3.96 $4.32 $7.44 ent, Average Annual Asking ($/SF) $260,800 $316,800 $345,600 $595,200 Annual Cost - 80,000 SF Distribution Facility 9.96 12.36 9.20 14.72 Commercial Electric ates (cents/kwh) $37,430 $34,490 $35,460 $33,980 Transportation and Material Moving Occupations Average per Occupation Title $89,250 $105,440 $86,060 $90,780 Transportation, Storage, and Distribution Managers $48,910 $55,180 $51,800 $48,310 First-Line Supervisors of Laborers $56,020 $60,700 $61,260 $60,780 First-Line Supervisors of Vehicle Operators $27,750 $24,660 $31,520 $30,440 Driver/Sales Workers $26,440 $29,700 $26,460 $26,770 Laborers $21,770 $24,760 $22,890 $21,490 Packers $30,150 $38,850 $36,760 $34,580 Conveyor Operators $28,010 $28,290 $29,140 $29,050 eceptionists 3rd lowest workers compensation tax rate in the U.S. #1 state in the number of Tech workers, as a percent of private workers The area draws labor from more than 40 localities
Comparison: 50-person Manufacturing Facility Virginia is a right-to-work state that ranks among the top 10 states in labor productivity. Based on the eight compared communities, ichmond offers the lowest industrial electric rates, sales and unemployment tax; second-lowest workers compensation, private sector union membership rate and building costs. ichmond, VA Boston, Ma newark, nj charlotte, nc eal Estate ent, Average Annual Asking ($/SF) $3.50 $5.70 $6.00 $2.63 Annual Cost - 35,000 SF Manufacturing Facility $122,500 $199,500 $210,000 $92,050 Industrial Electric ates (cents/kwh) 6.05 14.44 13.4 6.21 Production Occupations $36,120 $40,350 $36,990 $34,070 Average per Occupation Title Managers $115,720 $114,280 $126,600 $120,980 First-Line Supervisors of Production Workers $62,980 $71,530 $63,070 $57,940 Production Workers $30,440 $28,400 $23,710 $22,650 Inspectors and Testers $38,760 $43,790 $39,090 $35,280 Machinists $45,000 $48,930 $47,730 $38,050 Electronic Equipment Assemblers $33,430 $37,770 $31,610 $28,850 Tool and Die Makers $43,720 $57,040 $53,090 $47,190 Welders $41,320 $50,320 $44,420 $38,830 Executive Secretaries $48,740 $57,600 $61,720 $50,520 Mechanical Engineers $77,830 $90,730 $84,920 $79,360 Industrial Engineers $92,130 $93,830 $91,320 $80,560 Overall Comparison: Business Climate Factors ichmond, VA Boston, Ma newark, nj charlotte, nc Workers' Compensation (per $100 of payroll) $0.77 $0.76 $1.36 $1.19 Average Unemployment Tax per Employee $209 $630 $866 $441 Taxable Wage Base for Unemployment Insurance $8,000 $14,000 $31,500 $21,400 Average Annual Cost Paid by Employers for Health Premiums for Family Coverage $11,028 $12,854 $12,910 $10,338 Building Cost Index Total 87.1 117.6 113 82.8 Materials 101.3 101.6 101.2 101.9 Installation 68.7 139.5 128.4 56.8 Forbes ranking "Best States for Business and Careers" (1 being the best) 4 13 41 3 Overall Comparison: Quality of Life Factors ichmond, VA Boston, Ma newark, nj charlotte, nc Cost of Living Index (100=U.S. average) 100.2 136.7 124.7 95.2 Median Price for a New Home $258,000 $479,750 $487,566 $255,569 Annual Traffic Delay per Traveler (hours) 29 53 59 40 Overall Fitness Index anking (1 being the best) 21 9 24 27 Assumptions/Sources Salary data is from the U.S. Department of Labor s Bureau of Labor Statistics, May 2013 Metropolitan and Nonmetropolitan Area Occupational Employment and Wage Estimates, http://www.bls.gov. Distribution rental rates represent the average annual asking rent per square foot, quoted on a net basis of facilities greater than 10,000 square feet in each metropolitan area. ates for all metro areas are from Jones Lang LaSalle, Industrial Statistics, Q3 2014 and based on Warehousing & Distribution except for Boston and Newark. Data for Boston and Newark is from the Industrial Snapshot Q3 2014. Data for Newark is based on Northern New Jersey. Office rental rates represent the average annual asking rent per square foot and include all classes of office property. ates for all metro areas are from Jones Lang LaSalle, Office Statistics, Q3 2014, www.joneslanglasalle.com. Data for Newark is based on the state of New Jersey. Manufacturing rental rates represent the average annual asking rent per square foot, quoted on a net basis of facilities greater than 10,000 square feet in each metropolitan area. ates for all metro areas are from Jones Lang LaSalle, Industrial Statistics, Q3 2014 and is based on Manufacturing except for Boston and Newark. Data for Boston and Newark is from the Industrial Snapshot Q3 2014. Data for Newark is based on Northern New Jersey. Commercial and industrial electric rates are from the Edison Electric Institute s Typical Bills and Average ates eport, Summer 2014. Los Angeles rates reflect the state average. Annual traffic delay per traveler data is from the Texas Transportation Institute s 2012 Annual Urban Mobility eport, http://mobility.tamu.edu. Cost of living data is from the ACCA Cost of Living Index, 2014 Quarter 2. The national average is 100. Building costs data is from SMeans Building Construction Cost Data, 2015, 73rd Annual Edition, and reflects City Cost Indexes where the national average is 100. Tax Comparison Chart sources by column: The Corporate Income Tax and Personal Income Tax data is from the Tax Foundation. Sales Tax figures are from www.sale-tax.com. ight to work data is from the National ight to Work Legal Defense Foundation. Union membership data is from www.unionstats.com. All
Comparison: 50-person Manufacturing Facility Virginia is a right-to-work state that ranks among the top 10 states in labor productivity. Based on the eight compared communities, ichmond offers the lowest industrial electric rates, sales and unemployment tax; second-lowest workers compensation, private sector union membership rate and building costs. eal Estate $2.63 $3.90 $4.06 $7.44 ent, Average Annual Asking ($/SF) $92,050 $136,500 $142,100 $260,400 Annual Cost - 35,000 SF Manufacturing Facility 6.29 10.86 7.34 10.61 Industrial Electric ates (cents/kwh) $32,110 $39,670 $34,630 $32,230 Production Occupations Average per Occupation Title $111,890 $117,010 $103,500 $130,160 Managers $57,160 $65,940 $58,300 $57,600 First-Line Supervisors of Production Workers $22,350 $27,920 $26,420 $23,500 Production Workers $34,540 $46,670 $36,030 $38,500 Inspectors and Testers $38,920 $45,220 $41,840 $38,040 Machinists $32,850 $36,810 $32,540 $30,790 Electronic Equipment Assemblers $53,480 $50,930 $51,140 $53,250 Tool and Die Makers $36,950 $43,180 $37,630 $38,690 Welders $51,590 $58,300 $51,910 $57,610 Executive Secretaries $84,290 $86,770 $80,150 $98,330 Mechanical Engineers $83,390 $88,450 $75,580 $98,450 Industrial Engineers Overall Comparison: Business Climate Factors $1.16 $1.51 $1.34 $1.85 Workers' Compensation (per $100 of payroll) $224 $543 $594 $361 Average Unemployment Tax per Employee $9,500 $8,750 $12,960 $7,000 Taxable Wage Base for Unemployment Insurance $10,327 $12,002 $12,450 $12,173 Average Annual Cost Paid by Employers for Health Premiums for Family Coverage 87.5 114.5 117.2 107.2 Building Cost Index Total 97.6 99.7 99.8 99.2 Materials 74.4 133.6 139.7 117.5 Installation 16 30 40 37 Forbes ranking "Best States for Business and Careers" (1 being the best) Overall Comparison: Quality of Life Factors 96.3 119.1 116.5 134 Cost of Living Index (100=U.S. average) $284,766 $412,433 $436,871 $574,540 Median Price for a New Home 51 48 51 61 Annual Traffic Delay per Traveler (hours) 16 20 15 19 Overall Fitness Index anking (1 being the best) taxes current as of January 2014. Median price for a new home is from the ACCA Cost of Living Index, 2014 Quarter 2. The price is for the 2,400 sq.ft. living area new house, 8,000 sq.ft. lot, 4 bedrooms, 2 baths. Overall fitness index rankings are from the American College of Sports Medicine, American Fitness Index, 2013. The study ranks the health and community fitness status of the 50 largest metropolitan areas in the United States. Union membership data is from the Union Membership and Coverage Database at www.unionstats.com. The data reflects the percentage of private sector workers who are union members within each metropolitan statistical area and was collected on Dec. 17, 2014. The database is maintained by Hirsch and Macpherson. ight-to-work State data is from the National ight to Work Defense Fund at www.nrtw.org and was collected on April 10, 2014. Workers compensation data is from the Virginia Economic Development Partnership s Compare Virginia tool, available online at http://virginiascan.yesvirginia.org/compare/compareva.aspx. Data is presented at the state level. Workers compensation data reflects the net insurance costs per $100 of payroll in 2012 by State. Health premiums data is from the Virginia Economic Development Partnership s Compare Virginia tool, available online at http://virginiascan.yesvirginia.org/compare/compareva.aspx. All data is presented at the state level. The average health premiums data reflects the average contribution made by employers for family health premiums for 2013. Average unemployment tax data is from the Virginia Economic Development Partnership s Compare Virginia tool, available online at http://virginiascan.yesvirginia.org/compare/compareva.aspx. All data is presented at the state level. All data is from 2013. Taxable Wage Base for Unemployment Insurance data is from the Virginia Economic Development Partnership s Compare Virginia tool. Available online at http://virginiascan.yesvirginia.org/compare/ compareva.aspx. All data is presented at the state level. All data is from 2013. Forbes ranking Best States for Business and Careers - Forbes Best States ranking measures six vital categories for businesses: costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life. It factors in 35 points of data to determine the ranks in the six main areas. Data is for 2014 and is available online at www.forbes.com.
Virginia: Best State for Business n Virginia is headquarters to 32 Fortune 1000 firms and over 70 firms with annual revenue over $1 billion n The state s 6% corporate income tax rate has not changed since 1972. It is the 6th lowest in the country n ight-to-work state with moderate wages, low levels of unionization, and Unemployment and Workers Compensation costs among the lowest in the U.S. n anks among the top 10 states in labor productivity n More than 500,000 students are enrolled in over 100 in-state Boston institutions of higher education ichmond greater ichmond: Center of Commerce ichmond is the capital of Virginia, the center of commerce, government and academic endeavors: n Home to 10 Fortune 1000 headquarters n Population of nearly 1.3 million n Diverse local economy n Located at the mid-point of the East Coast, less than 100 miles from Washington, D.C., with more than 50 percent of the nation s consumers within a 750-mile radius n Excellent transportation network with rail, air, and port service n Nearly 30 colleges and universities with almost 80,000 students and more than 14,000 degrees conferred annually Miami Looking for more data? Visit our website for more data and downloadable information: n GPVA.com s Custom eport Builder allows you to select items that you wish to include in a report downloadable in PDF. n The Partnership has gathered and prepared various data sets for the ichmond MSA, according to the standards set forth by the International Economic Development Council. This information is available as an Excel document. 901 East Byrd St Suite 801 ichmond, Virginia 23219 804 643 3227 grpva.com 1/15