New study on cost of doing business in California

By CMTA Staff

Capitol Update, Aug. 15, 2014 Share this on FacebookTweet thisEmail this to a friend

Labor and energy costs were highlighted in a new study analyzing the elements of California’s 19 percent higher-than-average cost of doing business. The California Foundation for Commerce and Education (CFCE) study shows that California’s per-job costs are higher than every other Western state, and most other large states. Electricity rates were an important reason why the researchers estimate that a sample automobile manufacturer in California would have costs 33 percent higher than the national average. Higher-than-average business taxes (22 percent higher) and legal costs (15 percent higher) also contribute to California’s struggle to remain competitive in national and global markets.

Andrew Chang & Company, LLC, prepared the study, “The Cost of Doing Business in California,” ( for CFCE. 

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