‘High five’ to San Antonio’s cost-friendly business city

​​​​​SAN ANTONIO – San Antonio has received high marks in a study
of the most cost-friendly cities to do business.

The study by tax, audit and advisory firm KPMG LLP examined
the 31 largest U.S. metro areas—those with populations of 2 million or more—to
compile its 2016 Competitive Alternatives study.

San Antonio finished fifth in the study, which measured 26
key cost components in each market, including costs associated with taxes,
labor, facilities, transportation and utilities, as they apply to seven
different business-to-business service sector operations and 12 different manufacturing
sector operations.

The Alamo City has a cost index score of 94.7, representing
business costs 5.3 percent below the U.S. national baseline of 100.

San Antonio has the lowest wage costs and second lowest
statutory and benefit costs, giving it the lowest total labor costs in the
group of large U.S. cities. San Antonio also has the lowest costs for natural
gas and for industrial building construction. Office lease costs are also
relatively low.

Cincinnati finished as the most cost-friendly city. The
study cited the city’s favorable leasing costs and low property taxes.

In contrast to the most cost-friendly cities,
San Francisco and New York represent the most expensive large U.S. cities in
which to do business, with cost indexes of 104.5 and 104.7, respectively.