Operating Costs

  • Cost of Living
  • Labor Costs
  • Electric Rates
  • Worker's Comp
  • Property Taxes
  • Health Care

Cost of Living

Zanesville’s cost of living is 80% of the U.S. national average.  Imagine how that 20% savings translates to operating a business!!
Source: www.bestplaces.net

 

 

 

 

 

 

 

 

 

 

 

 

Labor Costs

Zanesville is a “Micropolitan” community in eastern Ohio.  A low cost of living, low utility costs, and low taxes translate to a less costly labor market than metropolitan areas. 

 

Hourly Wage Rate Comparison to Regional Metro Areas (All Occupations)

Region

Median

Mean

% of U.S. Avg.

Zanesville-Muskingum Co.(Eastern Ohio)

 $  12.82

 $   15.89

78%

Charleston, West Virginia

 $  13.98

 $   17.37

85%

Memphis, Tennessee

 $  14.20

 $   18.28

90%

Pittsburgh, Pennsylvania

 $  15.09

 $   19.25

95%

St. Louis, Missouri

 $  15.96

 $   20.30

95%

Cincinnati, Ohio

 $  15.77

 $   20.05

99%

Cleveland, Ohio

 $  16.01

 $   20.09

99%

United States

 $  15.57

 $   20.32

100%

Columbus, Ohio

 $  16.17

 $   20.41

100%

Charlotte, North Carolina

 $  15.67

 $   20.43

101%

Milwaukee, Wisconsin

 $  16.37

 $   20.67

102%

Atlanta, Georgia

 $  16.17

 $   21.23

104%

Chicago, Illinois

 $  17.11

 $   22.65

111%

New York, New York

 $  19.37

 $   25.39

125%

 

Source: May 2008 Metropolitan and Nonmetropolitan Area Occupational Employment and Wage Estimates
Bureau of Labor Statistics, U.S. Department of Labor
www.bls.gov/oes/2008/may/oes_3900003.htm

Electric Rates

Zanesville-Muskingum County benefits from an extensive electric generation, transmission and distribution system in Ohio.  Ohio has historically relied on nearby abundant reserves of coal, which supplies more than 85% of Ohio’s electricity at costs below the national average.   Ohio is now in the process of  incrementally shifting to produce 25% of its power from renewable for advanced energies by 2025.  Nonetheless, our cost of power remains a competitive advantage.

American Electric Power (AEP) and Guernsey-Muskingum Electric both serve Muskingum County.   You will see their average industrial electric rates are below the Ohio and U.S. average industrial rates, as reported by the Edison Electric Institute.

 

Average Industrial Electric Rate Comparison

(Reported as total cost in cents per kilowatt hour)

Region

2009 Rate

AEP - Ohio Power

5.14

West South Central

5.19

West North Central

5.38

East South Central

5.83

Guernsey-Muskingum Co-op*

6.00

Ohio

6.05

Mountain

6.22

South Atlantic

6.26

East North Central

6.36

USA

6.63

Mid Atlantic

8.54

Pacific

9.26

New England

12.29

 

Source: “Typical Bills & Average Rates Report – Winter 2010,” Edison Electric Institute
* Rate provided directly from Guernsey-Muskingum Electric Cooperative, Inc.

Worker's Comp

Ohio worker's compensation rates are calculated by the Ohio Bureau of Worker's Compensation (BWC).

The Ohio BWC classifies industries according to the National Council of Compensation Insurance. Each separate industry classification has its own basic premium rate.

The cost of claims in each industry classification determines rates. Base rates are calculated by estimating the cost of claims expected to occur in the next year using costs of past accidents and diseases in each industrial classification.An employer's accident experience, fluctuations in payroll, medical costs, and worker's compensation benefit levels are primary factors in premium rates.

Rates in Ohio are on par with national averages as you can see from the map below. 

 

Operating Costs Operating Costs Legend

 

Read more about Ohio’s continuing progress at bringing down costs at the Ohio Bureau of Worker's Compensation Web Site.

Real Estate (Property) Taxes

In Ohio, local governments assess property taxes on land and buildings.   Fair market value of real property is assessed at 35% of value before the tax rate is applied.  In Muskingum County, the average real property tax rate for property at our business parks is more than 22% less than the average tax rate in Ohio.  Please see below for details.

EastPointe Business Park
Effective 2009 Real Property Tax Rate = 49.06 per $1,000 at 35% assessed value.
Sample calculation on land and building with fair market value of $1 million:
$1,000,000 x .35 = $350,000
$350,000 x .04906 = $17,171 annual tax

NorthPointe Business Park
Effective 2009 Real Property Tax Rate = 47.14 per $1,000 at 35% assessed value.
Sample calculation on land and building with fair market value of $1 million:
$1,000,000 x .35 = $350,000
$350,000 x .04714 = $16,499 annual tax

Airport Business Park
Effective 2009 Real Property Tax Rate = 52.64 per $1,000 at 35% assessed value.
Sample calculation on land and building with fair market value of $1 million:
$1,000,000 x .35 = $350,000
$350,000 x .05264 = $18,424 annual tax

Ohio Average (using latest published rate)
Effective 2008 Real Property Tax Rate = 64.03 per $1,000 at 35% assessed value. 
Sample calculation on land and building with fair market value of $1 million:
$1,000,000 x .35 = $350,000
$350,000 x .06403 = $22,410 annual tax

 

Please note: tangible personal property (machinery, equipment, inventory, furniture and fixtures) is no longer taxed in Ohio. 

Health Care

In a time when Health Care costs are killing the cost structure of many businesses, why not locate in a place that has one of the top 100 low cost and high quality hospitals in the nation.

Zanesville-Muskingum County offers a competitive advantage thanks to the health care value provided by Zanesville-based Genesis HealthCare System.  Genesis is a regional referral center for a six-county region of southeastern Ohio and has received numerous national awards for the high quality care, low cost care it provides. 

In 2011, Genesis was named a Community Value 100® Hospital by Cleverlely + Associates. This award is based on an evaluation of four areas – financial strength and reinvestment, cost of care, pricing, and quality of care to determine the overall value a hospital brings to its community. According to Cleverlely + Associates, the U.S. median hospital charge index is 102.0 and Genesis is at 77.0. The hospital cost index U.S. median is 101.1 and Genesis is 89.4, proving their value.

In 2011, Genesis was also named one of the nation's 100 Top Hospitals® by Thomson Reuters. To achieve this honor, Genesis met or surpassed very high standards in the areas that are important to patients – patient safety, clinical quality, and the patient experience – as well as financial stability.

"We believe in excellence and that value means the highest quality care at the lowest possible cost, and we are honored to receive these recognitions. Our staff and physicians work extremely hard to always put the patient first, and these recognitions confirm that their dedication and commitment to high-quality, compassionate and cost-efficient patient care ranks Genesis among the best in the country,” stated Matthew Perry, Genesis president and CEO.

Genesis HealthCare System is a family of health care and related organizations, based in Zanesville , Ohio .  Genesis is an integrated healthcare delivery system with a not-for-profit hospital that operates at two sites - Genesis-Bethesda and Genesis-Good Samaritan - in Zanesville , Ohio , an extensive network of 300+ physicians, and multiple outpatient care centers throughout the region.