Kentucky’s business costs are among the lowest in the country and Kentucky’s competitive tax climate has also been recognized. In 2019, Site Selection Magazine ranked Kentucky #14 top state business climate and Smart Asset ranked Lexington #6 cities with the lowest startup costs in 2019.
Among the more significant location factors having a direct influence on bottom-line costs is the annual capital that must be committed to utility consumption. Kentucky has the lowest cost of electricity in the industrial sector among states east of the Mississippi River. According to the Energy Information Administration, Kentucky’s industrial electricity rates are seventh lowest nationally and over 18% percent lower than the national average. In 2019, Kentucky was ranked the #10 Lowest Industrial Electricity Rates by Business Facilities.
Water service is available through local providers in each of the Bluegrass counties. Kentucky American Water, located in Lexington, is the largest, with a capacity of 90 million gallons per day
Equally important to the economic growth of a region is the cost of living for its citizens. According to the C2ER Cost of Living Index, which compares participating cities in the country on six different categories, as well as a composite score, Lexington is a relatively inexpensive place to live. Lexington’s composite cost of living is consistently below that national average, as are most of its individual scores.