By: Profile Discovery

As business expenses continue to rise on both the East and West Coasts, a growing number of companies are exploring a smarter move: setting up operations in the Midwest. Cities such as Columbus, Indianapolis, Kansas City, and Omaha are emerging as increasingly attractive options for businesses aiming to reduce costs while maintaining access to talent and quality services.

But what exactly is drawing businesses to America’s heartland—and is it truly paying off?

A Clear Financial Advantage

Business often comes down to the numbers. When comparing the cost of running a company in the Midwest versus coastal hubs, the Midwest presents a noticeable financial advantage.

• Cost of Living Savings: Living in Indianapolis, Indiana, is estimated to be around 59% more affordable than living in New York City (excluding rent). When including rent, the cost gap widens significantly, with total expenses estimated at roughly 100% lower (Numbeo).
• Affordable Operations: Running a business in Columbus, Ohio, is approximately 36% less costly (excluding rent) compared to San Francisco. Including rent, the savings increase to nearly 59%, based on Numbeo data.
  

These cost differences can provide businesses with greater financial flexibility, enabling them to reallocate resources toward initiatives that support growth—such as customer experience improvements, employee development, and innovation.

Transforming Savings into Enhanced Service

Reduced operating expenses aren’t just about improving margins—they can also improve how businesses serve their customers. Companies that have relocated or expanded into the Midwest often report an increased ability to:

• Expand customer support teams: With lower salary costs, businesses may be able to hire additional support staff, helping to reduce wait times and improve response rates.
• Invest in technology upgrades: Budget savings may allow businesses to modernize systems and integrate customer-friendly technologies that streamline interactions and improve service consistency.
  

A Strong Talent Pipeline

It’s not just about cost—access to talent also plays a key role in why companies are turning to the Midwest. The region is home to a skilled, educated workforce that is drawing attention for its long-term potential.

• Midwestern states such as North Dakota report median household incomes around $51,700, paired with relatively affordable median rents averaging about $730 per month (Allied.com). This affordability contributes to a higher quality of life for employees, which in turn can lead to better retention and lower turnover for employers.
• Companies operating in the region have noted that they can attract capable talent without the premium salary demands found in coastal cities, further strengthening their ability to scale effectively.
  

Emerging Examples of Midwest Momentum

Some businesses that have shifted operations or customer service centers inland are already seeing meaningful outcomes. One such example is ProFile Discovery, an electronic discovery firm that has served legal and business clients since 2001.

By basing operations in the Midwest, ProFile Discovery has been able to maintain a consistent level of service while keeping operational costs in check. According to the company, this strategy has contributed to greater predictability and flexibility in managing resources.

While each business’s success depends on a range of factors, ProFile Discovery’s Midwest-based model offers a real-world example of how thoughtful geographic decisions can support long-term goals.

Is the Midwest Right for Your Business?

The case for expanding into the Midwest rests on several pillars:

• Meaningful cost reductions in both operations and staffing

• Potential for reinvestment in employee experience and customer satisfaction

• Access to skilled talent at more sustainable wage levels

A number of companies based on the coasts have already recognized the potential benefits of expanding into the Midwest. These organizations are gradually integrating regional advantages—such as cost savings and workforce stability—into their broader growth strategies.

Could a Midwest presence support your business goals as well? It may be worth taking a closer look at America’s evolving heartland to evaluate whether it aligns with your organization’s values, operational priorities, or long-term expansion plans.

Businesses like ProFile Discovery have explored this approach as part of their strategic footprint—focusing on stable operations, resource optimization, and service delivery from a more affordable geographic location.

While outcomes vary based on many factors, the Midwest continues to gain attention as a viable option for businesses seeking thoughtful ways to manage costs while maintaining service quality.

Published by Jeremy S.