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27 March 2014

KPMG Study Says Atlanta is "the Least Costly Location to do Business" of Any Large US City

The international audit, tax, and advisory firm KPMG is out with a new study that measured 26 key cost components in 31 large American cities, including costs associated with taxes, labor, facilities, transportation and utilities.

According to the 2014 KPMG Competitive Alternatives study, Atlanta has the lowest transportation and factory lease costs and effective corporate income tax rate of any large U.S. city, making it the least-costly location to do business among the 31 largest U.S. metro areas (those with metro populations of 2 million or more). Atlanta's low suburban and downtown office lease costs also contributed to its top ranking in the study.

"KPMG's Competitive Alternatives study, which reflects an in-depth multi-year analysis, serves as a useful benchmark for cities and provides helpful insight for companies considering sites for their business operations," said Hartley Powell, national leader in KPMG's Global Location and Expansion Services practice, which helps companies that are expanding, relocating or consolidating their facilities. "By comparing cities on a number of significant factors that contribute to business operating costs, including labor, taxes, real estate and utilities, companies can determine which markets offer the most advantageous business environment for their business."

New York City and San Francisco, in contrast to the most cost-friendly cities like Atlanta, represent the most expensive large U.S. cities in which to do business, the study says.

"Clearly business costs are a major component of the site-selection process for any company, yet organizations should make sure that they also take into account non-cost factors such as labor availability and skills, economic conditions, infrastructure, innovation, regulatory environment, cost of living and quality of life," said KPMG's Powell. "The KPMG Competitive Alternatives study addresses these additional areas as well, providing useful perspective for organizations going through the site-selection process."

The complete 2014 global study is available online at