Are business costs really going down?

Yesterday, we asked if you have seen your business costs decrease, after the Measures of Growth report said Maine's rank for the cost of doing business had improved.

3.3% of you said yes
96.7% of you said no
0.0% of you are undecided

Reader comments:

Heck no. Everything ticking up in costs.

You are kidding aren't you?

Seriously?

Either Maine Development Foundations measures are incomplete or our costs just aren't increasing as fast as some other states. It would be novel to actually have the cost of insurances, banking or taxes go down.

It's all relative. If costs in MA or NH are rising faster than in ME, we start looking better. Growth economies tend to be hungry beasts and when there is a hick-up in the food-chain costs structures can be difficult to manage.

You’re kidding right?? Costs keep going up and up.

Decrease?  Is that a serious question?

Ha! With state and federal taxes in Maine, including Lewiston's rain tax we've seen increases not decreases.

Your question is not logical, as Maine's CODB has improved (lowered) only in relation to other states. That could mean Maine businesses experienced lower increases than those of MA, NH and CT, not necessarily an actual decrease in costs.

According to the report...The measurement is constructed from labor costs (75%), energy costs (15%) and tax burden (10%).They heavily weight Maine labor costs which are significantly below the national average. Even with that skewed formula we still show as one of the 10 most expensive states in the country to do business. Which means that energy costs and tax burden are killing Maine businesses and don't allow them to pay higher wages.

There are obviously a lot of considerations that go into these rankings.  Maine clearly has an unfriendly business environment due to limited sm. bus. experience.

Certainly you do not really want us to state a true answer. If we have reduced cost (increased profits) Obama and Baldacci will increase our taxes and operating expenses to pay for those that live off the system - so the answer is we are hanging on by our fingernails and if we do not see a great summer we probably not make it another year.

But thanks for a good laugh.

I might think that was creative accounting to get that number to improve! Costs to do business here increase daily.

2007 statistics are now 2-3 years old!! I'm guessing when they factor 2009 in their research, the results will be decidedly worse.

Once utility costs, health care costs and taxes go down my costs will go down. Until then they won't.

The cost of doing business in Maine just keeps going up and up. The only difference is that Maine's government is gobbling up the state's private sector at a slower rate than MA, NH and CT. 

Did the cost of doing business in Maine really go down or did the cost of doing biz. in those states just increase more than here?

It’s all relative.

Even if this relative decline is for real, that doesn't mean actual costs have decreased in Maine--only that some other states' may have risen faster.  And considering how much less people earn in Maine than in Massachusetts, New Hampshire, and Connecticut, Maine's business costs absolutely should be lower than those states'.  The more relevant question is how the cost of doing business here relates to costs in other states with similar income levels.

No! taxes, taxes, insurances, etc...Tell me where it’s going down.

No the telecom infrastructure is killing the rates to do business.

In some areas, not across the board, decreases seem to be due to the economy.

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