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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 MSA | Rank | Index |
---|---|---|
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 Cost. The 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 MSA | Rank | Index | Rank | Index | Rank | Index | Rank | Index |
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