The North cheaper by 30% to companies

Companies may save substantially on labor and office costs if they would settle in the North of the Netherlands. Companies which have settle there are saving between 18% and 34% compared to the Randstad, the region bordered by Amsterdam, The Hague, Rotterdam and Utrecht.

This is the result of a study by the STEC Group commissioned by VNO-NCW North. The study investigated three regions: The North, the Randstad and economic regions bordering on to the Randstad (Brabant, Gelderland and Overijssel). Three types of companies were scrutinized: an production company, a call centr and a administrive service provider.

On average labor costs were about 7% cheaper and office rental prices were no less than 40% under Randstad price levels. Land costs are substantially lower and design and development costs are about three times cheaper in the North.

Also, the effect of subsidies by national and local governments should not be underestimated. A production company may save up to 20% due to these subsidies. A call center may count on 15% lower operational costs during the first two years and a service provider is cheaper by 11%.

(source: VNO-NCW North)

Related News