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.
Moody’s Cost of Doing Business Index ranks the Roanoke market at 11 percent below the national average when it comes to operating a company here. The index takes labor, energy, tax costs, and rent into consideration.
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: National
| Region | Cost of Living Index |
|---|---|
| New York, NY | 248.5 |
| Boston, MA | 150.0 |
| Washington, D.C./Northern Virginia | 145.0 |
| San Diego, CA | 147.0 |
| Newark, NJ | 123.5 |
| Chicago, IL | 123.2 |
| Denver, CO | 113.2 |
| National Average | 100 |
| Chattanooga, TN | 96.7 |
| Charlotte, NC | 97.0 |
| Richmond, VA | 949 |
| Roanoke Region | 88.6 |
Cost of Living Index: Market
| Region/Market | Cost of Living Index |
|---|---|
| Washington, D.C./Northern Virginia | 145.0 |
| Virginia Beach/Norfolk/Newport News | 96.5 |
| Winchester | 97.4 |
| Richmond | 94.9 |
| Staunton-Waynesboro | 95.6 |
| Roanoke Region | 88.6 |
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 75kW, 30,000 kWh/month
| Region | Company | Bill |
|---|---|---|
| National Average | $3,180 | |
| Columbia, SC | South Carolina Electric & Gas | $3,572 |
| Birmingham, AL | Alabama Power Company | $3,651 |
| Atlanta, GA | Georgia Power Company | $2,974 |
| Detroit, MI | DTE Electric Co. | $3,296 |
| Roanoke Region | Appalachian Power | $2,496 |
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 2015 RS Means Building Construction Cost Book. The Construction Cost Index investigates over 700 communities and measures the costs of building materials, labor, climate, and local building codes.
RS Means Construction Index
| Region | Value Index |
|---|---|
| Newark, NJ | 116.1 |
| Los Angeles, CA | 112.8 |
| Pittsburgh, PA | 101.5 |
| Rochester, NY | 100.9 |
| National Average | 100 |
| Cleveland, OH | 96.5 |
| Charleston, WV | 95.9 |
| Baltimore, MD | 94.1 |
| Richmond, VA | 89.5 |
| Roanoke Region | 88.3 |
Labor Costs
At 4.4%, Virginia has the fifth lowest unionization rate in the country. Also, Virginia manufacturers have one of the lowest average workers’ compensation costs in the country. At $1.24 per $100 of payroll in January 2016, Virginia ranks third lowest nationally and is 33 percent lower than the U.S. average. Roanoke Region wages are lower than the Virginia and the national averages.
Mean Labor Wages
| Occupation | Roanoke | Virginia | United States |
|---|---|---|---|
| Business and Financial Operations | $31.07 | $40.47 | $36.70 |
| Health Care Support | $14.27 | $15.17 | $15.05 |
| Protective Service | $17.87 | $22.59 | $22.68 |
| Food Preparation, Serving | $10.03 | $11.35 | $11.88 |
| Personal Care Service | $11.54 | $13.06 | $13.11 |
| Sales and Related | $18.36 | $19.07 | $19.56 |
| Office, Administrative, and Support | $16.57 | $18.26 | $18.24 |
| Construction and Extraction | $18.78 | $21.45 | $24.01 |
| Install, Maintenance, and Repair | $21.31 | $23.73 | $23.02 |
| Production | $17.16 | $18.09 | $18.30 |
| Transportation, Material Moving | $16.03 | $18.21 | $17.82 |
| Architecture and Engineering | $35.02 | $42.68 | $41.44 |
| Life, Physical, and Social Sciences | $31.37 | $41.03 | $35.76 |
| Management | $49.88 | $65.79 | $57.65 |