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Measuring Up? The Cost of Doing Business in Massachusetts
The nine industries that were chosen represent vital sectors of the Massachusetts economy for two important reasons: high pay and, in most cases, a significant concentration of activity. The nine industries are plastics product manufacturing, precision metal manufacturing, biotech manufacturing, financial services/securities, aerospace/defense, software, information technology and semiconductor equipment manufacturing, medical devices manufacturing, and search and navigation instruments manufacturing. Six states were chosen for comparison purposes: two neighboring states, Rhode Island and New Hampshire, which offer access to Boston's economic drivers but at a potentially lower cost; two large, northeastern states, New Jersey and New York, which serve as regional competitors; and two national competitors, North Carolina and Texas, both of which are fast growing, perceived as low cost, and have a base of technology and research industries. Massachusetts's most significant disadvantage for business growth is high land costs, which push up rental, purchase, or construction costs for a facility and affect workers' standard of living and the affordability of housing. Other main areas of weakness are in wage differentials and unemployment insurance. The Commonwealth's main advantage is its skilled labor force, which attracts firms to locate in Massachusetts despite higher costs. Study Details For more information contact:
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