Relocation: What’s Your Currency Conversion?
How far will your employees’ current salaries go in a new location?
Homefair’s Web site (www2.homefair.com) provides online assistance in that important currency conversion. We randomly picked 10 U.S. cities and calculated how far a US$100,000 salary in relatively low-cost Peoria, Ill., would go in each. And $100,000 of Peoria quality of life doesn’t necessarily play elsewhere. Only in Detroit could relocated employees get more bang for their 100,000 bucks.
Atlanta . . . . . . . . . . . . . . .
. . . . . . . . . . . . . .
$108,263
Boston . . . . . . . . . . . . . . .
. . . . . . . . . . . . . .
$187,157
Chicago . . . . . . . . . . . . . .
. . . . . . . . . . . . . .
$171,919
Denver . . . . . . . . . . . . . . .
. . . . . . . . . . . . . .
$121,043
Detroit . . . . . . . . . . . . . . .
. . . . . . . . . . . . . .
. $94,998
Los Angeles . . . . . . . . . . .
. . . . . . . . . . . . . .
$144,755
Louisville, Ky . . . . . . . . . .
. . . . . . . . . . . . . .
$101,826
New York (Manhattan) . . . .
. . . . . . . . . . . . . .
$284,054
Phoenix . . . . . . . . . . . . . .
. . . . . . . . . . . . . .
$105,171
Tampa, Fla. . . . . . . . . . . . .
. . . . . . . . . . . . . .
$102,343
Source: Homefair’s “Salary Calculator,” which compares world cities’ costs of
living. Figures indicate the salary necessary in each city to maintain the quality
of life for an individual homeowner (not renter) making $100,000 in Peoria, Ill.
State of the Union(s)
Labor unions can be a major location determinant or deterrent, depending on your industry and work-force needs. After all, labor will be your No. 1 capital outlay, and it better be good.
Originally epicentered in the Northeast and Midwest, U.S. labor unions have diffused. Nonetheless, Michigan still has the highest percentage of unionized manufacturing workers, 32.8 percent, followed by Ohio at 28.5 percent, reports the U.S. Bureau of National Affairs (www.bna.com). The traditionally less unionized South has the two states with the lowest manufacturing unionization: North Carolina, at 3.7 percent, followed by Florida, at 4.5 percent.
Whatever your union stance, though, shun preconceptions and do your homework. Kentucky’s manufacturing work force (24.2 percent), for example, is more unionized than New York’s (22.3 percent).
Private-Sector Manufacturing
1. North Carolina .
. . . . . . . . . .
3.7%
1. Michigan . . .
. . . . . . . . . .
32.8%
2. Florida . . . . . .
. . . . . . . . . .
4.5%
2. Ohio . . . . . .
. . . . . . . . . .
28.5%
3. Arizona . . . . .
. . . . . . . . . .
4.9%
3. Washington .
. . . . . . . . . .
26.1%
4. Alaska . . . . . .
. . . . . . . . . .
5.3%
4. Indiana . . . .
. . . . . . . . . .
24.8%
5. South Carolina .
. . . . . . . . . .
5.6%
5. Missouri . . .
. . . . . . . . . .
24.7%
State average: 16.3 percent.
Dialing for Locational Dollars
Staying connected: It’s a vital concern in locating any corporate facility. From long distance calls and teleconferencing to e-mail and data transfers, phone lines are the glue that holds us together.
Phone-line costs, though, can vary dramatically, and distance can be unrelated. For example, a one-minute long-distance call to a U.S. location costs 45 U.S. cents from Indonesia, very near the 37-cent toll from Canada, which ranked lowest in a recent 17-nation study by ECA Windham (www.windhamworld.com), a New York City-based international relocation firm. Another surprise: Hong Kong’s 88-cent rate is only a third of mainland China’s.
(US$ for first minute of long-distance calls)
Australia . . . .
. . . . . . . .
$0.77
Italy . . . . . . . .
. . . . . . . .
$0.84
Brazil . . . . . . .
. . . . . . . .
$1.12
Japan . . . . . . .
. . . . . . . .
$1.57
Canada . . . . .
. . . . . . . .
$0.37
Malaysia . . . . .
. . . . . . . .
$1.19
China . . . . . .
. . . . . . . .
$2.23
Mexico . . . . . .
. . . . . . . .
$0.78
France . . . . . .
. . . . . . . .
$0.63
Philippines . . . .
. . . . . . . .
$1.57
Germany . . . .
. . . . . . . .
$0.86
Singapore . . . .
. . . . . . . .
$0.71
Hong Kong . .
. . . . . . . .
$0.88
Switzerland . . .
. . . . . . . .
$0.72
India . . . . . . .
. . . . . . . .
$2.13
Thailand . . . . .
. . . . . . . .
$1.11
Indonesia . . . .
. . . . . . . .
$0.42
United Kingdom
. . . . . . . .
$0.40
Source: ECA Windham, New York City, November 1998.
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