(MENAFN- EIN Presswire)
BOCA RATON, FL, UNITED STATES, January 27, 2025 /EINPresswire / -- With rising business confidence indicators from Moody's and The National Federation of Independent Business along with new policies on trade, taxes, regulations and energy, the economic agenda of reshoring plants and offices back to the U.S. has taken center stage under the new administration in Washington. In fact, momentum for shifting corporate investment back to U.S. shores is already underway, with evidence from a recent survey by management consultancy Bain, of CEOs and COOs of large multinational companies. The survey found that 81 percent plan to locate their operations closer to home, a figure up from 63 percent just two years ago. The big question becomes where these re-shored facilities will land and what will it cost to operate there.
Newly-released 2025 BizCosts® Benchmark Reports are tools to help companies compare operating cost structures in major industrial and office markets around the globe. The studies chart major geographically-variable operating costs critical to the corporate location decision in 60 global manufacturing and office hubs, including break-outs for labor, real estate, taxes and utilities. Cost comparisons in the reports draw from the data bank and casework of the site selection consultancy, The Boyd Company, Inc. , founded in Princeton, NJ, in 1975.
In a BizCosts® Report comparing the cost of operating a 500-worker advanced manufacturing plant, yearly costs range from a high of $73.9 million in Zurich, Switzerland, to a low of $9.3 million in Bangalore, India. In another BizCosts® analysis, the annual cost of operating a 600-worker corporate head office totals $76.2 million in San Jose, California compared with $39.5 in Milan, Italy.
Comparative costs are a major driver in the corporate site selection process, along with new challenges in the energy sector spurred by unprecedented power demands by AI. While many factors influence corporate location decisions like workforce, power and shovel-ready real estate, operating costs remain a key variable that must be factored into the site selection equation. In fact, for many companies, improving the bottom line on the cost side of the ledger is far easier than on the revenue side in today's economy challenged by geopolitical tensions, supply chain constraints and lingering concerns about inflation and high interest rates,” explains John Boyd, Jr., Principal of The Boyd Co., Inc.
“This year, we added a number of new markets around the globe that our clients have shown growing interest in, including tech and cybersecurity-heavy Israel, chip giant South Korea, Madrid with its growing pharma presence, near-shoring options of Mexico and Canada and Dubai – a global mecca of wealth and FDI activity, most recently with DAMAC's $20 billion data center investment in the U.S. announced by Donald Trump at Mar-a- Lago,” Boyd adds.
About BizCosts® About The Boyd Company
BizCosts® Reports are comparative cost-of-doing business studies developed from the proprietary data bank of The Boyd Company, Inc., Location Consultants. Users of BizCosts® data include site-seeking companies and developers along with Wall Street analysts and venture capitalists studying the impact of costs and location on a company's competitive position and financial performance.
Founded in 1975 in Princeton, NJ and now based in Boca Raton, FL, The Boyd Company is a trusted provider of research and advice to leading companies, organizations and governments, including PepsiCo, JPMorgan Chase, UPS, Philips, GlaxoSmithKline, Pratt & Whitney, Dell, Marriott, The World Bank, The Howard Hughes Corporation, The President's National Economic Council, MIT's Work of the Future Initiative, The Investment Properties Division of the Mormon Church, The Council of Supply Chain Management Professionals, CNBC's Top States for Business and others.
John Boyd, Jr.
The Boyd Company, Inc.
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MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.