Operating Costs

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

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 = 49.623735 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 .04962 = $17,367 annual tax

NorthPointe Business Park
Effective 2009 Real Property Tax Rate = 47.238820 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 .04723 = $16,531 annual tax

Airport Business Park
Effective 2009 Real Property Tax Rate = 51.948012 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 .05194 = $18,179 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.