Research Editor, and Gyorgyi Sutt, Research Analyst

Stop the presses, football season has returned. For gridiron addicts, it means adrenaline-filled weekends, lots of junk food, exciting victories and yes, even some disappointing losses.

Have you ever thought about how much your company's labor issues and football have in common? In case you haven't - for whatever reason - maybe you should.

First of all, football and your labor force are perennial forces to be reckoned with. Especially since you can score big in both cases, or potentially lose just as big.

In addition, we all know that when it comes to football, a few points can make all the difference in the world. It's the same with site searches - when it comes to evaluating labor costs in various locations, a few small numbers can make a huge difference.

And consider this: football teams and employment costs are usually forged around a core of salaries, contracts and financial caps. Ultimately, your search for a team of talented and affordable labor is really not unlike that of most NFL general managers looking to sign key players.

There's no doubt that a solid game plan is absolutely necessary for a first down on the field and in your company's drive for a winning labor force.

Two-a-days for your site search

Just as football teams gear up during pre-season practice, your company must conduct some hard-hitting research before you can really get down to business on an impending relocation or expansion. Good data is essential when it comes to sizing up locations.

That's where Expansion Management's 4th Annual Employment Cost Index comes into play.

By strategically meshing criteria that includes wage and salary, uneployment insurance, and workers' compensation costs, our study provides averages of employment costs by state.

Our study is based on costs for a hypothetical manufacturing company with 150 employees. This year, we used two specific industries: industrial and commercial machinery and computer equipment (SIC 35), and measuring, analyzing, and controlling instruments; photographic, medical and optical goods, watches and clocks (SIC 38).

Our ECI study also takes into consideration the number of people working in each state in the selected SIC codes.

This is an important ingredient because the larger the labor force currently employed in a specific industry, the more qualified, skilled workers that could potentially be within your reach.

"You have to determine which costs really vary with geography and throw the constant ones out," said Saul Grohs, partner with Fords, N.J.,-based Location Advisory Services.

"And when you do that, you'll find that labor, generally, is a very, very big portion of the cost."

Scouting strengths and weaknesses

Like any good coach will do before a big game, you too must study the contenders - the locations vying for your business. At the beginning of your site search, you will most likely use discriminating factors to screen out communities that do not meet your needs.

Labor costs are one factor that will have a serious impact on how cost-effective a location will be for your company. State averages, such as those that our ECI provides, can be especially useful in certain settings.

"They can come into play in border issues, such as if you are in a metro area that's sitting right on a state border, what side of the border do you hop to?" said Kate McEnroe, president of Atlanta, Ga.,-based Kate McEnroe Consulting.

However, there are some things to remember.

It's important to dig deeper beneath the surface numbers. While our ECI provides state averages - a fantastic starting point as you hone in on certain locations - it does not represent the whole enchilada.

"Even in a state that has a very high wage rate, we can generally find some pockets - if you don't need too much labor - that have lower costs," said Grohs. "Don't take numbers at face value, they do not represent the whole picture."

Good people score points

In this day of pricey talent and tight labor markets, it's imperative to get the right people at the right price to ensure your firm's future health. Customized data, such as our ECI study, can help you weed through the initial communities. Then, you can start making cuts.

The inherent appeal of football is that your team can win on any given day. Similarly, when it comes to your company's site search, there exists a perfect labor force in any given state, on any given day.

Rachael Hedgcoth is associate editor, Les Gramkow is research editor, and Györgyi Sutt is research analyst of Expansion Management Magazine. You can contact them at (913) 381-4800.

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