Manufacturing Business Startup Cost Comparison
Tempe, AZ vs Los Angeles, CA
Tempe, AZ
$65,000 - $1,095,000
COL Index: 108.5
VS
Los Angeles, CA
$89,000 - $1,466,000
COL Index: 166.5
Detailed Cost Comparison
| Expense | Tempe, AZ | Los Angeles, CA | Difference |
|---|---|---|---|
|
Licensing & Compliance
|
$2,000 - $15,000 | $4,000 - $15,000 | -11% |
|
Manufacturing Space
|
$13,000 - $260,900 | $25,000 - $500,000 | -48% |
|
Manufacturing Equipment
|
$15,000 - $400,000 | $15,000 - $400,000 | Same |
|
Initial Raw Materials
|
$5,000 - $100,000 | $5,000 - $100,000 | Same |
|
Insurance & Compliance
|
$5,000 - $30,000 | $5,000 - $30,000 | Same |
|
Production Staff & Training
|
$5,300 - $52,500 | $6,800 - $67,500 | -22% |
|
Sales & Distribution
|
$3,000 - $20,000 | $3,000 - $20,000 | Same |
|
Working Capital (3-6 Months)
|
$16,300 - $217,000 | $25,000 - $333,000 | -35% |
| Total Estimated Cost | $65,000 - $1,095,000 | $89,000 - $1,466,000 | -25% |
Local Market Factors
| Factor | Tempe | Los Angeles |
|---|---|---|
| Cost of Living Index | 108.5 | 166.5 |
| Commercial Rent ($/sqft/yr) | $18 - $42 | $30 - $85 |
| Labor Rate Index | 1.05 | 1.35 |
| Sales Tax | 8.1% | 9.5% |
| Minimum Wage | $14.35/hr | $16.78/hr |
| LLC Filing Fee | $50 | $70 |
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