Khaberni - The Jordan Chamber of Industry announced the launch of a specialized report titled "Industrial Production Costs in the Kingdom" as part of the "Industrial Investment Compass" service with the aim of providing investors with a practical and comprehensive reference on the most influential elements in the operating costs of industrial projects in Jordan.
The report presents a detailed analysis of the production cost structure, with energy costs accounting for the largest share of total operating costs at about 45%, making it the most influential factor in the competitiveness of the industrial sector and its ability to grow and expand, according to Al-Ghad newspaper.
According to the report, wage costs rank second at 20%, followed by social security deductions, transportation, and freight, each at 10%, while the remaining percentage is distributed among industrial water and land, rentals, and other components at about 5% for each element.
Under the umbrella of the industrial sector, there are 10 main sectors including therapeutic and medical supplies, chemicals and cosmetics, engineering and electrical, information technology, textile and leather, wood and furniture, food and agriculture, animal wealth, mining, plastics and rubber, packaging and cartons, and construction.
The report notes that the industrial sector in the Kingdom bears an annual fuel bill of about 400 million dinars, accounting for more than 5% of total production costs and rising to about 37% when excluding raw material costs, highlighting the importance of energy in determining the competitiveness of national industries, particularly in construction, mining, and plastic sectors.
Regarding labor costs, the report indicates that the total social security deduction amounts to 21.75% of the wage, distributed as 14.25% borne by the employer and 7.5% by the worker, while the minimum wage in the Kingdom is about $324 per month.
The report also discusses the costs of essential services, explaining that the electricity tariff for the medium industrial sector varies between $0.08 and $0.11 per kilowatt-hour according to peak hours, while the water tariff varies according to consumption volume, reflecting the importance of efficient operational resource management to reduce costs.
The report also points out that transportation and shipping costs represent an important element in the industrial cost structure, with internal shipping costs ranging between $300 and $1,000, while the cost of sea shipping to markets such as the United States is about $2,794 depending on the destination.
There are approximately 17,000 industrial establishments in the Kingdom with an investment size estimated at 17 billion dinars, providing about 268,000 job opportunities, while the sector contributes about 25% to the gross domestic product.
The chamber confirmed that the report comes in response to investors' need for accurate and realistic information about operating costs before starting a project, contributing to the preparation of more accurate feasibility studies and reducing the expectation gap between the initial estimate and the actual cost after operation.
