Costs

LOW COSTS
When making decisions about your business, costs are important. Whether its taxes, labor, construction, or anything else, it all affects business.

The Roanoke Region boasts a low cost of living so your money goes further when you invest here. Low electric rates, competitive construction costs, and reasonable health care costs combine to make business affordable. There's a reason why Roanoke is ranked among the Top 15 places for low business costs and the Top 100 Places for Business and Careers by Forbes.com.

COST OF LIVING
A low cost of living is important to individuals and businesses. It means lower bills and less money spent on an operating budget. Compared to other areas competing for your business, you cannot beat the Roanoke Region when it comes to affordability. Compare costs for yourself with this cost of living analyzer.

Cost of Living Index

Region
Index

Boston, MA
130.9

Newark, NJ
127.3

Chicago, IL
113.2

Richmond, VA
106.7

Asheville, NC
101.9

Nat'l Average
100

Charleston, SC
99.4

Roanoke Region
95.3

Source: ACCRA, 2009 Annual Average

INDUSTRIAL ELECTRIC RATES
The Roanoke Region is served by Appalachian Power, a unit of American Electric Power, and portions are served by Dominion power. The region maintains lower electric rates than comparable regions.

Monthly Bill at 75 kW 30,000 kWh/Month

Region
Company
Bill

Cleveland, OH Cleveland Elec. Illuminating $3.340

Birmingham, AL Alabama Power Company $3,221

National Average
---
$2,897

Columbia, SC South Carolina Electric & Gas $2,822

Atlanta, GA
Georgia Power Company
$2,689

Richmond, VA
Dominion Virginia Power
$2,477

Roanoke
Appalachian Power
$2,103

Source: Typical industrial bills, investor-owned utilities, January 1, 2009. Edison Electric Institute, Washington D.C.

CONSTRUCTION COSTS
For any relocation or expansion decision, the cost of construction is an important factor. Construction costs in the Roanoke Region are not only competitive, but considerably lower than the national average according to the 2006 RS Means Building Construction Cost Book. The Means Construction Cost Index investigates over 700 communities and measures the costs of building materials, labor, climate, and local building codes.

Means Construction Index

Region
Means Index

Detroit, MI
107.3

Los Angeles, CA
106.8

Cleveland, OH
100.4

Nat'l Average
100

Atlanta, GA
89.4

Birmingham, AL
87.0

Richmond, VA
85.4

Lexington, KY
82.5

Austin, TX
80.0

Roanoke Region
77.1

LABOR COSTS

At 5.0%, Virginia has the second lowest unionization rate in the country, and one of the lowest unionization rates in manufacturing at 3.10%. Also, Virginia manufacturers have one of the lowest average workers' compensation costs in the country. At $2.08 per $100 of payroll in January 2008, it ranks 3^rd lowest nationally and is 46.6% percent lower than the U.S. average. Roanoke Region wages are lower than the Virginia and the national averages.

Mean Labor Wages by Occupation and Locality

Occupation Roanoke Virginia U.S.

Health Care Support $12.02
$12.55 $12.66

Protective Service $16.71 $19.55 $19.33

Food Prep, Serving $8.92 $9.67 $9.72

Bldg and Grnds/Clean $11.05 $11.07 $11.72

Personal Care Service $9.89 $11.66 $11.59

Sales and Related $14.86 $17.07 $17.35

Office, Admin. Support
Const. and Extraction
$14.00
$15.91
$15.71
$18.37
$15.49
$20.36

Install, Maint., Repair $17.89 $20.24 $19.82

Production $13.95 $15.23 $15.54

Transport, Material moving
Architecture and Engineering
Life, Physical and Social Sciences
Management
$12.90
$30.75
$27.15
$42.43
$15.25
$35.71
$34.99
$52.22
$15.12
$34.34
$30.90
$48.23

Source: Bureau of Labor Statistics Wage Estimates, May 2008

Region	Index
Boston, MA	130.9
Newark, NJ	127.3
Chicago, IL	113.2
Richmond, VA	106.7
Asheville, NC	101.9
Nat'l Average	100
Charleston, SC	99.4
Roanoke Region	95.3

Region	Company	Bill
Cleveland, OH	Cleveland Elec. Illuminating	$3.340
Birmingham, AL	Alabama Power Company	$3,221
National Average	---	$2,897
Columbia, SC	South Carolina Electric & Gas	$2,822
Atlanta, GA	Georgia Power Company	$2,689
Richmond, VA	Dominion Virginia Power	$2,477
Roanoke	Appalachian Power	$2,103

Region	Means Index
Detroit, MI	107.3
Los Angeles, CA	106.8
Cleveland, OH	100.4
Nat'l Average	100
Atlanta, GA	89.4
Birmingham, AL	87.0
Richmond, VA	85.4
Lexington, KY	82.5
Austin, TX	80.0
Roanoke Region	77.1

Occupation	Roanoke	Virginia	U.S.
Health Care Support	$12.02	$12.55	$12.66
Protective Service	$16.71	$19.55	$19.33
Food Prep, Serving	$8.92	$9.67	$9.72
Bldg and Grnds/Clean	$11.05	$11.07	$11.72
Personal Care Service	$9.89	$11.66	$11.59
Sales and Related	$14.86	$17.07	$17.35
Office, Admin. Support Const. and Extraction	$14.00 $15.91	$15.71 $18.37	$15.49 $20.36
Install, Maint., Repair	$17.89	$20.24	$19.82
Production	$13.95	$15.23	$15.54
Transport, Material moving Architecture and Engineering Life, Physical and Social Sciences Management	$12.90 $30.75 $27.15 $42.43	$15.25 $35.71 $34.99 $52.22	$15.12 $34.34 $30.90 $48.23