New Orleans is the most economical mid-sized city for businesses in the United States
The KPMG international accounting firm has issued a report ranking New Orleans as the most cost-friendly city for businesses among 13 United States metropolitan areas with populations between one million and two million people. The report cited low costs for property taxes, transportation, office leases, natural gas and statutory costs such as payroll taxes as reasons for the economical standing of New Orleans.
“Aggressive incentives for attracting new jobs, especially in the digital industry, also helped to move New Orleans into the top spot,” said an announcement from KPMG.
Louisiana’s often-cited digital media tax credit program provides technology firms a 35 percent credit for the cost of in-state labor and a 25 percent credit for production expenses.
Following New Orleans on the KPMG list were Nashville, Oklahoma City, Raleigh, N.C., Indianapolis, Salt Lake City, Austin, Tex., Buffalo, New York, and Providence, Rhode Island.
The report looked at 26 cost factors. It compared the mid-sized cities to a United States baseline derived from the costs of doing business in the four largest metropolitan areas, New York, Los Angeles, Chicago and Dallas-Ft. Worth.
New Orleans came in at 94.1 percent of the national baseline cost.
The most expensive mid-sized cities in the study were Wilmington, Del., Hartford, Conn., and Trenton, New Jersey, which were 98.1 percent to 99.5 percent of the national baseline.
In the announcement about the study, Hartley Powell, who leads KPMG’s global location and expansion services practice, said the data can help companies decide where to locate their operations.
Read the full report here: http://www.competitivealternatives.com/reports/2014_compalt_report_vol1_en.pdf