Jun 2, 2010.- EDINBURG, Texas-- In its latest report analyzing the cost of doing business around the world – Competitive Alternatives 2010 – KMPG has ranked Mexico as the most cost competitive location among developed nations in all industry sectors.  Monterrey and Mexico City ranked first and second respectively among global cities with populations of 2 million or more. McAllen, Texas was ranked as the most competitive city in the U.S. Midwest region.

Competitive Alternatives 2010 compared the key costs of doing business in 100 cities and 10 developed countries. Costs examined for this comparative study included:  labor, facilities, utilities, transportation, taxes and other factors such as the cost of laying off workers.

The four largest cities in America – New York, Los Angeles, Chicago and Dallas-Fort Worth – formed the baseline score of 100 for comparing business costs in other countries and cities. Mexico offered an overall 18.2% cost advantage.

Mexico ranks first in all industry sectors

In different industry sectors, Mexico also ranked number one, offering these overall cost savings:

• Manufacturing – 13.7%
• Corporate and IT Services – 38.6%
• Research & Development – 38.9%

Advantages offered in particular segments within these categories were particularly dramatic. Compared to the baseline of 100, Mexico scored as follows:

Manufacturing

• Medical devices – 79.3
• Pharmaceuticals – 83.6
• Metal components – 84.0

R & D

• Product testing – 58.6
• Biotechnology – 62.7
• Clinical trials – 63.9

Corporate & IT Services

• Back office/call centers – 46.6
• Web and multimedia – 65.9
• Software design – 68.3