Location Decisions of Large, Multiplant Companies: A Summary of Findings

摘要

This 2 - year study addresses the factory location decisionmaking of most of the Fortune 500 corporations. It builds on interviews with 60 companies, a plant census of 410 companies which represent 37 percent of the manufacturing employment in the United States, and over 500 detailed surveys of particular plants' operations. The study views the location decision broadly, noting that before locating any new capacity, the corporation must recognize the extent and character of capacity shortfalls and then must choose between expansion at already existing plants, establishment of new plants, and relocation of existing ones. If a new plant or relocation is advocated, a search for a suitable location can average about 6 months. Six considerations are most prevalent in deciding on an actual location: labor costs, labor unionization, proximity to markets, proximity to supplies / natural resources, proximity to other company plants, and quality of life. The importance of these factors is often dictated by the nature of competition in the company's industry. These controlling considerations frequently act to define the region or State of search, and sometimes even a metropolitan area. Government policies are viewed as tie - breaking influences for two or more otherwise equivalent sites. Study results support a number of public policies: the significance of State right - to - work laws, the insignificance of tax incentive programs and most other financial inducements, the relatively greater importance of public policies affecting the physical considerations which help construct and start up plants (labor / training; road, sewer, sewage treatment construction; environmental and zoning permits), and the advisability of ''one - stop shopping'' for corporate questions and help at both the State and local levels. Also examined is the geographic shift of industry regionally and among central cities, suburbs, and nonmetropolitan areas. Tables are included. (Author abstract modified).