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New Jersey Ranks Seventh in the Nation in Cost of Doing Business Index,* 2005
*based on average wages, taxes, electricity costs, and rental costs
Source: Milken Institute

* See below for a commentary on how these statistics can affect your business

Rank State Index   Rank State Index
             
1 Hawaii 143.1   26 Ohio 93.3
2 New York 130.7   27 Texas 92.8
3 Massachusetts 125.5   28 Oregon 92.6
4 California 124.2   28 Colorado 92.6
5 Connecticut 122.7   30 North Carolina 91.6
6 Alaska 120.8   30 Georgia 91.6
7 NEW JERSEY 120.7   32 Louisiana 89.1
8 Delaware 109.6   33 Kansas 88.9
9 Minnesota 107.9   34 Indiana 88.8
10 Michigan 106.1   35 Kentucky 87.0
11 Vermont 106.0   36 Missouri 86.8
12 Nevada 103.8   36 Utah 86.8
13 Illinois 103.7   38 Nebraska 86.5
14 Washington 103.5   39 Tennessee 86.2
15 Rhode Island 103.0   39 Alabama 86.2
16 New Hampshire 101.9   41 West Virginia 86.1
17 Maryland 101.8   42 Arkansas 85.3
18 Pennsylvania 100.2   43 Oklahoma 84.8
19 Maine 96.0   44 South Carolina 84.2
20 New Mexico 95.6   45 Mississippi 84.1
21 Wisconsin 95.4   46 Idaho 83.3
22 Florida 95.1   47 Montana 80.6
23 Wyoming 94.7   48 Iowa 80.2
23
 Virginia 94.7   49 North Dakota 76.9
25 Arizona 94.0   50 South Dakota 71.9
             
          50 State Average 97.178
          N.J. % Above Average 24%

View all State Stats
 
. A CLOSER LOOK
 

NEW JERSEY RANKS SEVENTH MOST EXPENSIVE PLACE TO DO BUSINESS ACCORDING TO MILKEN INSTITUE'S 2005 COST-OF-DOING BUSINESS INDEX! 

Hawaii , New York and Massachusetts are the most expensive states in the nation in which to do business, according to the 2005 Milken Institute Cost-of-Doing Business Index.

Hawaii , which was also number one on last year's index, has business costs that are 43 percent higher than the national average. Second-place New York 's costs are 30 percent higher, and third-place Massachusetts has costs that are twenty-five percent greater than the U.S. overall. *

New Jersey ranks seventh in the Index. This figure (120.7) is 24 percent above the fifty states average (97.2) and 20.7 percent above the overall U.S. average.

The states with the lowest costs of doing business are South Dakota (50 th ), with costs 28 percent below the national average, North Dakota (49 th ), with costs 23 percent lower, and Iowa (48 th ), with costs 19 percent lower.

The Cost-of-Doing-Business Index, released annually by the Institute, indicates each state's comparative advantages or disadvantages in attracting and retaining businesses. Those states with a low cost of doing business have, on average, greater job growth than those with high costs.

The Index measures wage costs, taxes, electricity costs and real estate costs for industrial and office space. Each state is measured on the five individual categories, and those weighted scores are compiled to make the overall index.

In New Jersey , soaring property taxes and utility costs of the last several years were reflected in the Index. When examining these individual indexes, New Jersey ranks well above the national costs. Electricity costs were 27.5 percent higher than the national average, industrial rental costs were a staggering 50.1 percent above the national average, and industrial office rental costs were 23 percent above the national average.


* Note: An index score of 100 means that the state is equal to the U.S. average in that particular category. If a state's business cost index is 120, it means the state's cost index is 20 percent above the national average.

Source: Milken Institute, 2005 Cost-of-Doing Business Index.
   
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