Lower Operating Costs
Among the number of advantages, none is more beneficial to a business’ bottom line than the low operating costs combined with the strategic location of our community.
In updating an analysis completed in June 2000 by Economic Strategies Group (ESG), a national independent consulting firm that compared annual operating costs for a typical Northeastern Pennsylvania plastics manufacturing facility with annual costs for the same facility in other in communities within Pennsylvania as well as New York and New Jersey, findings show that Greater Hazleton holds a clear financial advantage compared to those states.
Quick Facts
- A company can save up to 21 percent in average annual operating costs in Greater Hazleton versus the other metro areas identified within the analysis.
- Average worker compensation rates for a plastics facility in Pennsylvania are 12 percent to 14 percent less than New York and New Jersey.
- Greater Hazleton has a number of available, shovel-ready, rail-served sites with KOZ tax incentives that would be ideal for plastics manufacturing.
- Greater Hazleton has access to the Pennsylvania College of Technology, an affiliate of Penn State University, which offers Associate of Applied Science and Bachelor of Science Degrees in Plastics and Polymer Technology
Prototype Plastics Facility in Greater Hazleton
Jobs - 300
- Managers - 15
- Professionals and Technicians - 14
- Clerical - 13
- Mechanics, Repairers, Precision Production - 92
- Assemblers/Machine Operators - 100
- Sales Reps - 7
- Transportation/Materials Handling - 9
- Laborers - 49
Estimated Benefits as a Percentage of Payroll
- Salaried - 40 percent
- Hourly - 30 percent
Land and Buildings
- Acres - 15
- Square feet - 100,000
Electricity Demand
- Kilowatts (kW) - 2,000
- Kilowatt-hours (kWh) - 1,400,000
Gas Demand
- Cubic feet/month - 4,000 Mcf
Source: Economic Strategies Group, June 2000
| Plastics Industry Prototype Facility Annual Operating Costs |
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| Metro Area | Employee Payroll1 | Fringe & Mandated Benefits2 | Electricity & Gas3 | Real Estate Cost | Total Operating Cost |
| Greater Hazleton, PA | $11,029,532.80 | $3,480,381.34 | $1,429,440.00 | $420,000.00 | $16,359,354.14 |
| Lehigh Valley, PA | $12,382,760.00 | $3,896,498.70 | $1,429,440.00 | $520,000.00 | $18,228,698.70 |
| New York-Northern New Jersey, NY-NJ | $11,706,718.40 | $3,842,575.91 | $2,637,840.00 | $820,000.00 | $19,007,134.31 |
| Philadelphia, PA | $12,837,156.80 | $4,036,225.72 | $1,810,800.00 | $575,000.00 | $19,259,182.52 |
| Long Island, NY | $12,570,334.40 | $3,969,927.83 | $3,760,800.00 | $1,110,000.00 | $21,411,062.23 |
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Sources:
1www.bls.gov - Occupational Employment Statistics, 2010
2http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=541
2http://www.workforcesecurity.doleta.gov/unemploy/content/sigpros/2000-2009/January2009.pdf
2National Academy of Social Insurance: Worker's Compensation: benefits, Coverage and Costs 2007
2Estimated cost of Medicare and Social Security is 5.8% of payroll
2Estimated cost of Fringe Benefits is 23.5% of Payroll
3Edison Electric Institute, 2008 Average Industrial Rates 12 months ending 12/31/08 3http://tonto.eia.doe.gov/dnav/ng/ng_pri_sum_dcu_nus_m.htm- 10/2009 rate
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