Missouri’s Low Cost of Doing Business Helps Companies Grow and Thrive

• August 04, 2025

Missouri offers one of the most competitive business environments in the nation, thanks to its low cost of doing business and high quality of life. Companies benefit from affordable real estate, low utility rates, and a pro-business tax climate that helps operating dollars go further. With its central location providing efficient access to North American markets, Missouri enables businesses to serve customers quickly while keeping logistics costs low. Combined with a skilled,reliable workforce and supportive state and local partners, Missouri provides the cost advantages companies need to grow sustainably and invest in their future.

Missouri’s pro-business environment continues to stand out nationally, with CNBC’s 2025 Top States for Business ranking Missouri #6 in the nation for Cost of Doing Business, a jump from #8 in 2024.

Notable Sectors that Score Big with Missouri’s Low Business Costs

• Agriculture & Agtech: Missouri’s low property and utility costs make it ideal for agtech businesses and food processors.
  
• Manufacturing & Logistics: Its logistical advantages and business-friendly policies enable regional hubs and distribution centers to thrive.
  
• Life Sciences & Biotech: Growing biotech firms benefit from state R&D incentives and a powerful research infrastructure.

Missouri vs. Other Midwestern States

While the Midwest generally offers cost advantages, Missouri stands out among its peers:

Metric	Missouri	Illinois	Indiana	Kansas	Iowa
CNBC Cost Rank (2025)	#6	#18	#10	#12	#14
Corporate Tax Rate	6.25% (effective ~5.2%)	9.5%	4.9%	4.0%	5.5%
Average Industrial Electric Rate (cents/kWh)	6.43	7.09	7.05	7.24	6.85
Median Home Price (2025 Q2)	$250,000	$310,000	$265,000	$255,000	$260,000

• Lower Taxes: Missouri’s effective corporate tax rate remains one of the most competitive in the region, offering a simplified and business-friendly tax structure.
  
• Affordable Utilities: Missouri consistently maintains lower industrial electricity costs than Illinois, Indiana, and Kansas.
  
• Real Estate Value: Commercial and residential property prices remain lower, reducing costs for both facility investments and talent attraction.

What It Means for Businesses

• Higher Margins: Lower ongoing costs mean businesses can retain earnings or reinvest in growth.
  
• Scalability: With economical real estate and labor, companies can expand or open new operations more feasibly.
  
• Talent Attraction: Cost savings can fund better pay and benefits, making Missouri a desirable option for skilled workers.

Missouri’s unique combination of low costs, perfect strategic location, and a thriving workforce offers a clear advantage for companies in manufacturing, food processing, agtech, logistics, and life sciences.

Whether you’re an established company looking to expand or a startup seeking a scalable base, Missouri’s pro-business environment ensures your resources go further, supporting sustainable, long-term growth.