Among major global cities, all cities outside the US have experienced gains in cost competitiveness relative to the US
in 2016, based on the surging value of the US dollar. However, changes in local cost factors also impact the competitiveness
of these cities. For example, declining utility rates together with static costs for employee benefits help Sydney (Australia)
move ahead of Osaka (Japan), where these same cost factors have seen sizable increases.
Among the major US cities, since 2014 Miami has experienced the lowest increase in business costs, and moves up in the rankings.
Recent reductions in transportation costs and suburban office lease costs both help Miami, along with enhancements in Florida
state tax incentives.
Moving in the opposite direction, New York City has seen the largest increase in business costs among the big US cities, falling
behind San Francisco in this year’s rankings. Rising labor costs—both salaries and benefits—are an issue for NYC, and more than offset
gains from recent state tax reforms that assist New York firms.
These examples highlight the depth of analysis available in this study.