Business Costs

One of the most important reasons to consider the Birmingham area for a new location or expansion is the low cost of doing business here. From advalorem taxes to utility rates, ours are among the lowest in the country.

	Average Wages, all Industries - Birmingham area wages are competitive with those in other major southern metropolitan area. The lower cost of living compared to most other areas of the country helps keep wages under control.
	Average Production Wages - A manufacturing/distribution operation can find an ample supply of experienced production workers at a reasonable cost in the Birmingham area. This can mean better bottom line performance without sacrificing quality of workmanship.
	Commercial and Industrial Electric Rates -Alabama Power Company's Commercial and Industrial electrical rates beat those in most other areas of the country and are competitive with other rates in the south, particularly for high-end users.
	Natural Gas Costs -Alabama Gas Corporation, the area's major transporter of natural gas, can tailor a combination of interruptible and non-interruptible service to meet the needs of virtually any type of operation.
	Water Rates - Commercial and industrial water rates are kept low by the abundance of reserve capacity. In addition, there are low non-potable industrial water rates available.
	Rental Rates and Construction Costs - Average lease rates for Class A office space in the Birmingham area range from $13.50 to $23.50/s.f . depending on the location in the area. Distribution center space can be leased for as little as $2.86/s.f. Construction costs in the area are 88.2% of the national average.
	State Taxes other than License Fees - State operating taxes are very competitive with other southern metropolitan areas and are generally lower than in other parts of the U.S. The state has always been business-friendly and tax rates are designed to foster better bottom-line performance.
	Ad valorem Property Taxes -Per capita property taxes in the Birmingham area are among the lowest in the country and are as low as most other southeastern metro areas.