Low costs in virtually every area of measurement combine with a high quality workforce, superior incentives, and a pro-business attitude. Oklahoma, in fact, ranks lowest among all states for total cost of doing business.  While the state's major metropolitan areas represent great location opportunities for aerospace companies, our state's extensive aerospace operations mean there are numerous smaller communities that also offer aerospace infrastructure, training, and facilities.

Low Cost Metro Areas
Simply put, the cost of business in Oklahoma's two large metropolitan areas, Tulsa and Oklahoma City, are almost impossible to beat. .

    * Oklahoma labor costs run well below the national average.
    * Oklahoma offers abundant local access to reliable and affordable energy sources.
    * Oklahoma has one of the lowest per capita tax rates in the nation.

Pollina Corporate Real Estate in its 2006 report ranks Oklahoma as one of America's Top 15 Pro-Business states. Oklahoma's low cost of business already has attracted numerous companies to the state and more are on the way every day.

Labor
With a trained, experienced and plentiful labor force, Oklahoma offers aerospace firms a distinct advantage when it comes to labor costs compared to other states. Take the median base salary for the following key aerospace occupations: Electronics Assembler, Aircraft Mechanic and Engineering Technicians.

Median Base Salaries:

*2003 Economic Research Institute, Geographic Reference Report, ERI

Other occupations ranging from material handler to electrical engineer to accountant also have significantly lower labor costs compared to other states.

Incentives
Oklahoma offers aerospace firms several rewarding incentives including cash back for jobs created, tax credits and exemptions and a unique federal tax incentive.

• Oklahoma's Quality Jobs program promises quarterly cash payments for new payroll for 10 years for qualifying companies
• Investment tax credits equaling 1 percent of investment in depreciable property for five years, which doubles in an enterprise zone
• Sales and use tax refunds on taxes paid on construction materials in new manufacturing facilities
• Property tax exemptions including a five year abatement on 100 percent of property tax on new investment in manufacturing space
• Sales and use tax exemption available for machinery and equipment used in manufacturing including property consumed
• Accelerated federal property tax depreciation that provides a 40 percent shorter recovery period for depreciable property on Indian land

Take the following example for an aerospace manufacturer:

Oklahoma provides an established, state-of-the-art aerospace training infrastructure that begins at the high school level and continues through advanced degrees. In fact, state programs will provide free worker training for qualified companies that establish training standards.  See the Labor and Productivity section for more information.

Facilities
From aircraft hangars to manufacturing and maintenance facilities, Oklahoma has what aerospace companies are looking for. There are more than 200 industrial parks and hundreds of ready to go office, plant and building sites. Prime locations are available in key aerospace clusters located near ample rail, road and port access.

Lease rates per square foot for both industrial and office space in Oklahoma are more competitive than most other states. In fact, industrial and commercial construction and land costs average 5-10 percent lower nationally and 20 percent lower than the East or West coasts. Additionally, Oklahoma real estate sales prices are lower than other areas. Suburban Industrial Real Estate prices in Oklahoma City and Tulsa, for example, run from $19-$22 respectively for 100,000 to 250,000 square feet. In Dallas/Ft. Worth the rate is $28; St. Louis, $40; and Seattle, $43.

Utilities:
Oklahoma possesses a significant cost advantage over other states and cities with among the lowest electric and gas rates in the nation with long-term energy supplies assured. The Industrial Monthly Electric Costs per 1,000/kw/400MWH is far lower than other cities including Dallas/Ft. Worth, Houston, Atlanta and Seattle