With a positive outlook and as the number of surgical procedures performed in the United States grows, Stillwater Business Park in Redding, California, is a strategic location for the medical instrument manufacturing sector.  At the same time, the aging population is also supporting industry growth, with the baby-boomer demographic set to become the industry's largest market. The older the population, the greater the dependence upon health services such as surgery.

Market access and transportation advantages
A location in Redding, California, offers small freight and parcel delivery to more than seven states in less than two days.

Encouraging business success
The City of Redding and its partners, like the Shasta Economic Development Corporation, provide no-fee site selection services to employers, corporate real estate executives, and site-location consultants who are considering locating to the Stillwater Business Park including:

• Financial assistance and loan programs
• Labor availability and education information
• State and local permit assistance
• Transportation and infrastructure information
• Information on tax credits and other incentive programs
• Economic and demographic data
• Business advocacy

As part of the site selection service, economic development partners analyze the factors affecting a company's investment decision including taxes, human resources, training and workforce development, incentives, financing, utilities, permits, and specific real estate opportunities.  Below is a typical business cost analysis for a medical device manufacturing firm considering multiple locations throughout California.

Operating Cost Comparison - Medical Devices
Metro Area	Employee Payroll	Fringe & Mandated Benefits	Utilities	Building / Lease Payments	Property Tax	Total Operating Costs
Redding	$3,951,760	$1,125,380	$202,837	$1,246,648	$345,119	$6,871,744
Reno	$4,183,160	$1,154,769	$187,146	$1,176,469	$384,474	$7,086,018
Stockton	$4,183,858	$1,190,055	$262,909	$1,312,213	$336,972	$7,286,008
Sacramento	$4,343,102	$1,234,488	$174,114	$1,388,735	$351,958	$7,492,397
San Diego	$4,276,490	$1,215,464	$266,748	$1,990,779	$411,295	$8,160,776
San Jose	$4,866,006	$1,379,872	$263,451	$2,026,805	$445,107	$8,981,241
Anaheim	$4,497,666	$1,276,946	$262,852	$2,633,658	$467,904	$9,139,026
Los Angeles	$4,515,768	$1,282,024	$263,502	$3,211,968	$561,174	$9,834,436

Source: MetroComp, 2008.

The annual estimated business operating costs table summarizes the annual cost of labor, utilities and facilities for selected metropolitan areas.


PROJECT PRO-FORMA INPUT TO CALCULATE ANNUAL OPERATING COSTS FOR
MEDICAL INSTRUMENTS

Assumptions:

Construct new high-tech building, 75,000 sf, 15 ac  

Capital Investment: Machinery and Equipment: $20,000,000

Monthly Utility Use: Electricity Demand/Usage: 500KW, 150,000KWh, Water Usage:  3,000cf, 5/8 meter, Wastewater Usage: 3,000cf, 5/8 meter, Natural Gas Usage: None

Workforce: 100, consisting of Assembler: 20, Machine Tool Operator: 18, Maintenance Worker: 6, Machinist: 6, Quality Insurance Inspector: 6, Secretary: 6, Sales Representative (non-scientific): 6, Engineering Technician: 6, Mechanical Engineer: 4, Production Supervisor: 4, Shipping Clerk: 4, Electrical Engineer: 4, Personnel Analyst: 4, Office Manager: 4, Machine/Maintenance Mechanic: 2

The Annual Business Operating Cost Pro-forma has been prepared using assumptions based on other similar business operations.  The Pro-forma information contains all the basic data used in the operating cost calculation.

Shasta County Medical Device Companies
Business	City	Product
Biomet Sports Medicine Inc	Redding	mfg surgical/medical instruments, appliances, supplies
Mallard Medical Inc	Redding	mfg anesthesia ventilators
Visioncare Devices	Redding	mfg ophthalmic medical equip
Millipore Corporation	Anderson	mfg bags-plastic and coated paper for medical
SunMedica	Redding	mfg surgical orthopaedics and post surgical wound management productss