Cost of Doing Business
Emerging Digital Cluster
According to KPMG’s Competitive Alternatives guide to business location costs, Baton Rouge has one of the nation’s lowest costs of doing business. Baton Rouge’s 92.8 index score in the guide reflects that the overall cost of doing business in the Capital Region is 92.8 percent of the national average, or over 7 percent lower than the cost of doing business in the average U.S. city. This score places Baton Rouge as the second most cost-effective market in the Southeast. In fact, Louisiana is home to three of the four cities with the best business costs, reflecting the state’s commitment to economic competitiveness.
Competitive Alternatives also highlighted the fact that Baton Rouge has an emerging digital cluster (index score of 85.3) and thriving manufacturing sector (index score of 95.6). The digital cluster is aided by the significant incentives offered to a wide range of e-business and software development firms. Low facilities costs, as well as helpful incentives, allow the manufacturing costs to stay competitive. Further explanation of Baton Rouge’s ranking can be found here.
In addition to the above-mentioned factors, the Capital Region’s low electricity and natural gas prices drive the cost of doing business in the region down to incredibly competitive levels.