North Carolina Remains 31st Most Expensive State for Business, Survey Shows
Posted August 17, 2007 1:05 p.m. EDT
Updated August 17, 2007 1:46 p.m. EDT
Raleigh, N.C. — North Carolina remains 31st among the 50 states in the cost of doing business for the second straight year, according to a new survey.
The Milken Institute Cost-of-Doing-Business Index assigned North Carolina an overall cost index of 90.8, with 100 being the 50-state average.
Georgia moved to 32nd from 30th, and South Carolina ranked 45th,compared with 44th in the 2006 study.
Tennessee ranks 42nd and Virginia 25th.
The index calculates five factors to create the index, including wages, taxes, electricity, industrial rents and office rents.
North Carolina scores most expensively in taxes at 72.2 compared to the national index. Average wages were $37,000.
Lowest costs for North Carolina were electricity, with an index of 6, and industrial rent, at 3.8. The state scored 18.1 in office rents.
Economic and business development recruiters often use such indexes to compare costs for plant and facility expansion or relocation.
North Carolina ranked 30th in the 2005 survey.
The three most expensive states are Hawaii (1), New York (2) and Alaska (3).
Lowest cost state is South Dakota.