The United Kingdom has pulled ahead of both the United States and France as an affordable jurisdiction to conduct business, according to KPMG’s Competitive Alternatives 2010 study, which compares business costs in 10 countries in North America, Europe, and Asia Pacific.
Mexico retained its number one ranking from the last time the survey was conducted (2008), while Japan’s cost competitiveness has deteriorated due to the strength of the yen. Changes in exchange rates, energy costs, transportation costs, and taxes are the main factors influencing international competitiveness over the last two years.
Competitive Alternatives examines business competitiveness in 112 cities in Australia, Canada, France, Germany, Italy, Japan, Mexico, the Netherlands, the United Kingdom (UK), and the United States (US) The study measures 26 significant cost components that are most likely to vary by location including: labor, taxes, real estate, and utilities, as they apply to 17 business operations over a 10-year planning horizon. A range of non-cost competitiveness factors are also considered. The 2010 study features a new focus on the largest cities in each country, and includes a number of major global business centers not included in previous editions of Competitive Alternatives, such as Berlin, Los Angeles, Lyon, Miami, Milan, Osaka, Rome, and Tokyo.
