Compared with the developed cities in coastal areas, the cost of raw material and labors in Baotou are relatively low.The price of high quality coal is only 8 yuan per ton and the electricity charge is 4 yuan per kilowatt hour, which could greatly reduce the manufacturing cost. Besides, the civil engineering cost is also cheap with 53 to 55 yuan per square meter. The low cost of investing is beneficial to improvingthe enterprise marketplace competitiveness.
Moreover, Baotou has huge market with big potential and wide prospect. The per-capita disposable income of Baotou residents averaged 1,158 yuan. The sales consumer goods in urban areas witness an increasing trend in recent years.