Hawaii ranks third
in cost of business

Hawaii ranked third in the nation for highest business costs, according to an analysis by forecasting firm Economy.com.

The annual ranking put Massachusetts as the most expensive state in 2003, followed by California. New Mexico had the lowest costs.

Boston has surpassed New York as the most costly metropolitan area in which to do business, primarily due to the highest labor costs in the nation.

Of the top 10 most costly metropolitan areas, Boston and New York were the only ones not located in California.

San Diego had the second-highest costs, followed by Los Angeles and Sacramento. New York ranked fifth, San Francisco seventh.

Energy costs in California spiked a few years ago when it deregulated its electricity market. San Diego's energy costs were more than double the national average.