KPMG is out with their 2010 version of their Competitive Alternatives report which compares the costs operating a sample facility for a variety of industries across 100+ global locations. While you could drive a Mack truck through some of the assumptions, this report is valuable in that it is one of the only global comparative reports of its type that I know of. You can compare the cost of business in Fredericton to Frankfurt and have a well recognized brand (KMPG) backing you up.
Of course, jurisdictions pay to be included which makes it a little more dicey. Consider it a type of marketing expenses.
KPMG has been doing this for I think around 15 years and the only thing that has fundamentally changed over that period has been the shrinkage in cost advantage for Canada. A place like Moncton used to be shown as 50% cheaper than many U.S. jurisdictions- now the cost advantage is down to to a few percentage points for some locations. But again put it in its proper place.
Here are some summary findings. click on the link above to run your own reports.
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COMPETITIVE ALTERNATIVES 2010 COST MODEL |
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DETAILED COMPARISON REPORT |
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(USD$’000) |
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Total location-sensitive costs |
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City |
Web Content Development |
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Frankfurt |
$ 16,397 |
|
Paris |
16,277 |
|
Rome |
16,254 |
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Osaka |
15,866 |
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Boston |
15,042 |
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Boston |
15,042 |
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Utrecht |
14,241 |
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Detroit |
14,206 |
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Houston |
14,042 |
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Atlanta |
13,698 |
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Toronto |
13,260 |
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Manchester |
13,224 |
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Edmonton |
12,910 |
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Vancouver |
12,826 |
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Halifax |
12,558 |
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Montreal |
12,387 |
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Charlottetown |
12,362 |
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Fredericton |
11,750 |
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Moncton |
11,641 |
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City |
Clinical Trials Management |
|
Frankfurt |
$ 6,442 |
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Osaka |
6,032 |
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Rome |
5,900 |
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Boston |
5,359 |
|
Boston |
5,359 |
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Detroit |
5,035 |
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Houston |
4,993 |
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Atlanta |
4,878 |
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Toronto |
4,757 |
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Vancouver |
4,445 |
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Manchester |
4,405 |
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Charlottetown |
4,379 |
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Edmonton |
4,355 |
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Paris |
4,181 |
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Montreal |
4,018 |
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Utrecht |
3,712 |
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Halifax |
3,705 |
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Fredericton |
3,325 |
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Moncton |
3,275 |
|
City |
Metal Machining |
|
Osaka |
$ 16,041 |
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Frankfurt |
14,086 |
|
Boston |
13,853 |
|
Boston |
13,853 |
|
Edmonton |
13,791 |
|
Detroit |
13,482 |
|
Houston |
13,456 |
|
Vancouver |
13,415 |
|
Toronto |
13,252 |
|
Rome |
13,209 |
|
Paris |
13,156 |
|
Utrecht |
12,969 |
|
Halifax |
12,921 |
|
Montreal |
12,917 |
|
Atlanta |
12,845 |
|
Fredericton |
12,829 |
|
Charlottetown |
12,798 |
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Manchester |
12,742 |
|
Moncton |
12,629 |
Being a few percentage points down is a lot better than being 50 percent down, but it still leaves us at a competitive disadvantage when it comes to recruiting web developers, clinicians and machinists.