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Cost of Doing Business

Based on Moody’s Analytics 2012 North American Business Cost Review, the Cost of Doing Business in the Mankato-North Mankato Metropolitan Statistical Area (MSA) is lower than the national average (represented by an index value of “100”). With an index value of 81, the Mankato-North Mankato MSA’s Cost of Doing Business is 81% of the national average (or 19% below the national average), giving it the 64th Lowest Cost of Doing Business among all 384 MSAs in the U.S. and putting it in the top 17% nationally.

The Mankato –North Mankato MSA is also competitive with other MSAs in the Upper Midwest, with the 5th Lowest Cost of Doing Business among the 29 MSAs in the Upper Midwest states of Minnesota, Wisconsin, Iowa, North Dakota and South Dakota. According to Moody’s Analytics, Overall Cost of Doing Business is calculated using a three year moving average, to safeguard against volatility. The information below represents 2008 through 2010.

Click here for a Printable Version of the Cost of Doing Business Report (PDF)

Overall Cost of Doing Business - Upper Midwest

Upper Midwest MSARankIndex

Rapid City SD

1

66

Sioux Falls SD

2

69

Sioux City IA

3

74

Bismark ND

4

79

Mankato-North Mankato MN

5

81

Ames IA

5

81

Iowa City IA

5

81

Dubuque IA

8

82

Waterloo IA

8

82

Des Moines IA

10

83

Fargo ND

10

83

Grand Forks ND

10

83

La Crosse WI

13

84

Cedar Rapids IA

13

84

Eau Claire WI

15

87

Duluth MN

16

88

Green Bay WI

16

88

Janesville WI

16

88

St. Cloud MN

19

89

Appleton WI

19

89

Racine WI

19

89

Fond du Lac WI

22

90

Sheboygan WI

23

92

Rochester MN

24

94

Madison WI

24

94

Oshkosh WI

24

94

Wausau WI

24

94

Milwaukee WI

28

95

Minneapolis-St Paul MN

29

99

Source: Data compiled by Greater Mankato Growth from Moody’s Analytics 2012 North American Business Cost Review 

 
Breakdown

In Moody's Analysis, four factors contribute to the overall Cost of Doing Business - Cost of Office Rent, Energy Costs, State & Local Taxes and Unit Labor CostThe Mankato-North Mankato MSA ranks in the top 50% or higher for all factors, compared to the 28 other Upper Midwest MSAs.  In paraphrasing Moody’s Analytics:

  • Unit Labor Cost, which is the largest component of the overall Cost of Doing Business, calculates labor compensation per dollar output, utilizing a variety of sources, including the Bureau of Labor Statistics and National Compensation Survey. Growth in retail trade, construction, real estate and government are not influenced by labor costs, and therefor are not included in the Labor Cost calculation.
  • State and Local Taxes data is derived from the Census Bureau's Annual Survey of State Government Finances & Census of Governments.
  • Energy Costs compares the average commercial and industrial electricity costs, with the national average, utilizing data from the Energy Information Administration, a division of the Department of Energy.  
  • Cost of Office Rent was based on average gross rent per square foot for class "A" office space data from Colliers International.      

Upper Midwest MSA

Cost of Office Rent

Energy Costs

State & Local Taxes

Unit Labor Cost

Upper Midwest MSARankIndexRankIndexRankIndexRankIndex

Mankato-North Mankato MN

1

45

7

86

14

104

13

99

Ames IA

19

61

17

95

6

91

4

89

Appleton WI

13

57

13

90

22

107

23

107

Bismark ND

10

56

4

76

3

85

7

94

Cedar Rapids IA

24

67

17

95

6

91

6

93

Des Moines IA

27

74

1

63

6

91

9

97

Dubuque IA

7

54

17

95

5

90

7

94

Duluth MN

21

64

6

80

14

104

20

106

Eau Claire WI

10

56

11

88

19

106

17

104

Fargo ND

13

57

2

74

6

91

9

97

Fond duLac WI

10

56

26

107

22

107

19

105

Grand Forks ND

7

54

2

74

12

92

12

98

Green Bay WI

19

61

13

90

22

107

15

103

Iowa City IA

9

55

17

95

6

91

5

92

Janesville WI

2

49

26

107

27

108

17

104

La Crosse WI

4

53

11

88

17

105

14

102

Madison WI

26

71

23

102

22

107

20

106

Mikwaukee WI

23

66

24

104

27

108

28

113

Minneapolis-St Paul MN

29

80

7

86

17

105

29

119

Oshkosh WI

25

70

26

107

19

106

20

106

Racine WI

16

58

24

104

22

107

15

103

Rapid City SD

4

53

15

91

1

65

1

71

Rochester MN

28

77

7

86

13

103

23

107

Sheboygan WI

13

57

26

107

27

108

26

109

Sioux City IA

3

50

17

95

4

86

3

79

Sioux Falls SD

16

58

5

78

1

65

2

75

St. Cloud MN

18

59

7

86

14

104

25

108

Waterloo IA

4

53

17

95

6

91

9

97

Wausau WI

21

64

16

92

19

106

27

110

Source: Data compiled by Greater Mankato Growth from Moody’s Analytics 2012 North American Business Cost Review 

The Greater Mankato Growth, Inc. Family: Greate Mankato Growth Visit Mankato City Center Partnership