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Lower Operating Costs


The cost of doing business on the Navajo Nation is relatively lower than in other metropolitan areas. Labor cost, the cost of building rental, and the cost of utilities are far lower on the reservation than other cities. The tables below outline reservation utility rates and compare labor costs on the Navajo Nation to that of key metropolitan areas of the United States. You will also find job training assistance available on the Navajo Nation.


Cost of Doing Business on the Navajo Nation

Comparative Annual Operating Cost (in thousands of dollars)
  Navajo Nation Albq.
NM
San Jose CA Sandiego
CA
Dallas
TX
Seattle
WA
Labor
$11,460 $13,311 $20,610 $18,242 $17,598 $19,665
Electric Power
360 367 335 286 248 1902
Natural Gas Power
17 494 453 432 376 457
Total Annual Operating Costs
$11,777 $14,172 $21,398 $18,960 $18,222 $20,312
Comparative Hourly Wages    
Assembler
$7.15 $8.06 $12.48 $11.04 $10.66 $11.90
Junior Electronic Technician (1)
8.18 9.73 15.07 13.33 12.86 14.37
Senior Electronic Technician (2) 9.18 13.46 20.83 18.42 17.78 19.86
Inspector 7.15 8.37 12.96 11.47 11.07 12.37
Machine Operator 7.47 8.99 13.91 12.31 11.88 13.57
General Helper 9.18 8.26 12.78 11.30 10.92 12.11
Shipping/Receiving Clerk 7.15 8.68 13.43 11.88 11.47 12.86
 
Note: The costs are for a hypothetical aerospace industry manufacturing plant in its third year of operation, based on current wage rates and fringe benefits. The plant employs 525 hourly workers and assumes 1,904 hours worked per year per employee, based on 12 paid holidays and a two-week vacation. Electricity costs are based on monthly demand of 1,000 kw and 400,000 kwh consumption. Navajo Nation costs are based on one manufacturing plant on the reservation. See utility sheet rates from the Navajo Tribal Utility Authority.

Source: The Boyd Company Inc. Albuquerque Journal, Sunday, February 14, 1993, The Navajo, Division of Economic Development, Support Services Department 1993 Wages Survey, (1) Electronic Tester, (2) Standard Tester, (3) Staff Assistant.

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