Melbourne #1 for cost competitiveness in Asia-Pacific: KPMG
|31 March 2010|
|Low operating costs in R&D and manufacturing make Melbourne the cheapest overall location for business in Australia according to a new report from consultancy KPMG.|
|KPMG’s Competitive Alternatives Report 2010 measures 26 significant business cost components for 17 industry operations across the manufacturing, corporate and IT services, and research and development industries.|
Costs are compared across 112 cities in 10 countries: Australia, Canada, France, Germany, Italy, Japan, Mexico, the Netherlands, the United Kingdom, and the United States.
Melbourne was ranked the cheapest overall location for business in the Asia-Pacific region, ahead of Adelaide, Brisbane, Sydney, Osaka and Tokyo. According to the report’s findings, Melbourne is on average 3.3% cheaper to locate business than the United States across all sectors.
Melbourne clearly stood out for clinical trials management and electronic systems development and testing industries, which are nearly 35% and 20% cheaper to operate in Melbourne than the United States respectively.
Melbourne also ranked the cheapest of Australian cities in all categories for manufacturing, including medical devices, telecommunications equipment, specialist chemicals and electrical assembly.
As a guide to international business location, the 2010 report is the most comprehensive comparison of international business locations ever undertaken by KPMG.
Using business models for all 17 industry operations, the report compares the after-tax start up and operations costs over 10 year of the 112 cities involved.
The study presents information for international investors and also provides a secondary analysis of non-cost factors. These include: labour availability and skills, economic conditions and markets, innovation, infrastructure, and regulatory environment, as well as costs of living and quality of life.
The full report can be found at: KPMG - Competitive Alternatives.