Posted on 09/07/2005 2:29:06 PM PDT by newgeezer
Business study: Iowa ranks high in affordability
IOWA CITY (AP) — Iowa ranks only behind the Dakotas in being an affordable state in which to do business, according to a new ranking.
The ranking by the California-based Milken Institute, a nonpartisan economic think tank, looked at wages, tax burden, electricity costs and real estate expenses for office and industrial space. Each category was weighted, with half the rating dependent on wages.
The cost of doing business in Iowa was 20 percent below the national average, according to the ranking.
Those costs were among the things Pearson Educational Management, a spinoff from the University of Iowa, considered when it decided to keep operations in Iowa.
Office space in Iowa averages about $14 per square foot compared with about $23 per square foot in New Jersey, where Pearson Educational Management’s parent company is located, said Steve Kromer, executive vice president and general manager.
“From my perspective, staying in the Midwest or in locations like Iowa gives us a competitive advantage because we’re able to operate in a more cost-effective manner,” he said.
About 9,000 of Rockwell-Collins’ 17,000 employees remain in Iowa, where the company was founded.
“Naturally, the cost of doing business here is an appealing factor,” said Rockwell-Collins spokeswoman Pam Tvrdy.
Joe Raso, president of the Iowa City Area Development Group, said he considers the affordability index a good indicator for policy makers, but any business looking to move to Iowa probably would look more specifically at costs.
“It’s a good top-end comparison, but it’s not going to be the top component to any analysis that a company is going to do,” Raso said.
For example, he said, the index doesn’t consider the costs of transportation or productivity.
Both Kromer and Tvrdy indicated that transportation and productivity were among the factors their companies considered in deciding to stay in Iowa. Trvdy said worker productivity played a substantial role.
“It’s a very good, strong work ethic and that’s another reason why we remain here,” Tvrdy said.
On the Net: Milken Institute: http://www.milkeninstitute.org/
Milken Institute Research
2005 Cost-of-Doing-Business Index
August 11, 2005
Hawaii, New York and Massachusetts are the most expensive states in the nation in which to do business, according to the 2005 Milken Institute Cost of Doing Business Index.
Hawaii, which was also number one on last year’s index, has business costs that are 43 percent higher than the national average. Second-place New York’s costs are 30 percent higher, and third-place Massachusetts has costs that are 25 percent greater than the U.S. overall. California is fourth, with costs more than 24 percent greater, and Connecticut is fifth, with costs greater than 22 percent.
The states with the lowest costs of doing business are South Dakota, 50th, with costs 28 percent below the national average, North Dakota, 49th (23 percent lower), Iowa, 48th (19 percent), Montana, 47th (19 percent) and Idaho, 46th (16 percent).
The Cost-of-Doing-Business Index, released annually by the Institute, indicates each state’s comparative advantages or disadvantages in attracting and retaining businesses. Those states with a low cost of doing business have, on average, greater job growth than those with high costs.
The Index measures wage costs, taxes, electricity costs and real estate costs for industrial and office space. Each state is measured on the five individual categories, and those weighted scores are compiled to make the overall index.
sshhhh! Iowa City is one of the nation's best kept secrets and I'd like to keep it that way!
Must be a reason why they are California-based instead of Iowa-based.
Loooooooooooooooooooooooooooooooooonng way to the beach from Iowa.
I'm very pleased to be in Cedar Rapids. It's a great place to live and raise a family.
The Hawaii Department of Business and Economic Development issues a free jar of Vaseline when receiving an application for a business license. All subsequent desired jars of Vaseline is at market prices.
California 'values' would be my first guess. ;O)
Here in South Dakota we're hoping on global warming to make the state an even more desirable place to do business.
Here in the Louisville area, housing prices (except in a few choice neighborhoods) haven't budged much in the last six years, or at least to judge by my own house. I payed $117,000 for it six years ago, and an acquaintance in real estate tells me I might get $135,000 for it if I "staged" it nicely. (Whatever that means. Take down all the family pictures, and decorate in boring colors, or something like that.) These are actual numbers, I didn't make them up. This is 1976 construction in a good neighborhood (it has sidewalks), a 3 bd 1.5 bath brick ranch with finished basement and 2 car garage. Close to transportation (there is a railroad nearby).
yeah, yeah, I know "The People's Republic of Iowa City" hey, its a college town! I meet people all the time who come from both coasts to raise their kids here. People here are far more conservative in their lifestyle than the town's reputation would have you believe. I've been here 32 years and have a network of friends who are of all stripes.
I see. Well, I remember how some GayLesbianBisexualWhatever group named I.C. as the most gay-friendly city in the U.S. not too long ago. And, my network of friends and I all have pretty much the same "stripes."
So, it sounds like you and I are both happy to be right where we are. Great! :)
. . . California is fourth, with costs more than 24 percent greater, and Connecticut is fifth, with costs greater than 22 percent.
High population density.
The states with the lowest costs of doing business are South Dakota, 50th, with costs 28 percent below the national average, North Dakota, 49th (23 percent lower), Iowa, 48th (19 percent), Montana, 47th (19 percent) and Idaho, 46th (16 percent).
Low population density.
by stripes I meant liberal and conservative, I think the gay issue is way over played.....I don't know any!
I find it more intersting to mix it up with people who think differently than all thinking alike, helps me to develop my own thinking.
bottom line is we are both happy living in Iowa.
Is this heaven?
Gee, New York is one of the worst places to do business. It's a good thing that I was sitting down when I read that one.
Thanks to the liberal assholes that populate NY City and significant portions of the rest of the state, the lack of a vibrant conservative movement in the state, and a population that can best be described as sheep, NY state is an economic train wreck. High taxes and mucho regulation strangle anyone who wants to do business here. NY has one of the largest natural sources of power in the world (Niagara River and power plant), yet we pay some of the highest residential electricity rates in the nation. Who in their right mind would want to move here???!!!
Do you see what's happening in Lousiana? That's a microcosm of what NY is like. Politicians screwing everyone over, blaming everyone but themselves, fighting over the scraps left over, and then wondering why there are problems. It makes me sick!!!!
Those of you in the Twin Cities AM radio market, will know what I mean when I say "Dan Scott would be proud."...
That's sort of like living in Dubuque and not knowing any Irishmen, but I suppose anything is possible.
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