The report - by The Boyd Co., a site-selection firm - ranks 50 metropolitan areas in terms of how much companies must pay in wages, utilities, real estate, equipment and corporate travel. By those measures, Salt Lake City is the 11th most affordable.

Although the report was prepared for the biomedical industry, the results apply to a range of industries, said consultant John Boyd, who noted that Salt Lake City also scores well in intangibles, such as plentiful amenities and a low crime rate.

"You can have a nice quality of life for less in Salt Lake City compared to some other locations," Boyd said.

Boyd doesn't believe Utah is at a disadvantage because state incentive programs often offer less to companies considering expansion than what some other states can afford.

"Incentives play such a small part in the site selection process," he said. "Very rarely do they make much of a difference."

Salt Lake City's favorable ranking in the report doesn't surprise the Economic Development Corporation of Utah (EDCU), which handles recruiting for the state.

EDCU produces similar reports for companies looking for sites in which to expand. Those reports compare operating costs in Utah or one of its cities with other states or metropolitan areas.

"Utah's operating costs, in a variety of industries, have always been very competitive," said Jeff Edwards, president of EDCU. "Low operating cost is one of our strengths."

He said Utah's labor is affordable, albeit not the cheapest among all states. But Utah also is helped by low electricity and natural gas costs, which lower the cost of doing business.

"If you have companies that are big energy users, you can show a very large operating cost advantage in Utah," Edwards said.

In addition, Utah is particularly attractive to biomedical companies because of the presence of the University of Utah and Utah State University. The universities provide qualified graduates as workers, he said, as well as licensing and other business opportunities from ongoing research.

lesley@sltrib.com

Best biotech cities

Salt Lake City compares favorably in terms of operating costs with 50 cities often considered by biomedical firms seeking to expand their businesses.

Least expensive

1. Sioux Falls, S.D.

2. Montreal

3. Shreveport, La.

4. Norman, Okla.

5. Toronto

11. Salt Lake City

Most expensive

1. Dusseldorf, Germany

2. Brussels, Belgium

3. London

4. San Jose

5. San Francisco

Source: The Boyd Co.