Cost of Doing Business
Warren County was ranked in the Top 10 small-sized counties in the nation for investment, talent, sustainability, place and diversity. (Fourth Economy Index, 2012)
CNBC ranked Kentucky as having the lowest business costs in the United States. (CNBC, 2012)
Bowling Green - the metropolitan hub of South Central Kentucky - was ranked in the top 7% of 384 metropolitan areas for lowest overall business cost (North American Business Cost Review, 2010).
Based on the annual cost of labor, utilities and facilities, South Central Kentucky is a less expensive environment for doing business than other metropolitan areas in the Midwest and Southeast. For example, an advanced manufacturing business with 50 employees in a 10,000-sq.-ft. building will pay nearly $263,000 less in annual operating costs in Bowling Green than if the same company was located in Atlanta. (MetroComp, 2012)
The Kentucky Cabinet for Economic Development provides a cost of doing business analysis online.
It’s cheaper to do business in South Central Kentucky for many reasons, including the lower wage rates and a lower cost of living, which combine to create an environment that is cheaper for employers and employees. Currently, the cost of living is 90% of the national average, and wage rates continue to be lower in the region than at the state and national levels.
Kentucky’s electric utility rates are the third lowest in the country, according to the latest federal figures (September 2009). For industrial only, these rates are still the third lowest behind only Oklahoma and Louisiana. This data represents the statewide average price for all sectors, including industrial, from all utility companies.
The Tennessee Valley Authority and its distributors provide some of the lowest electricity rates in the nation. These percentages are well below the national average: industrial rates are 19% lower, commercial rates are 10% lower, and residential rates are 21% lower, according to the Energy Information Administration.
Additional utilities information is available here.
Kentucky ranks 22nd in the Tax Foundation’s 2012 State Business Tax Climate Index, which compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property (residential and commercial).
More tax information is available here.