1978 DOE SPS Economic Demographic Issues

The cost, availability, stability, and productivity of labor are vital factors in every manufacturing enterprise. The growth of an industrial area is jeopardized if these labor conditions are not favorable. However, labor requirements are not uniform among industries. Certain industries require a large number of skilled workers; others require a large number of unskilled workers; and still others require varying numbers of each. Because the SPS receiving antenna may need to be located in relatively sparce population areas, labor-intensive industries may not relocate near the sites. The market is an increasingly important location factor. There is frequently a cost advantage when a substantial local market exists, and this situation is enhanced when a good competitive position is maintained by serving several adjoining market areas. 2.2.2 Secondary Factors Besides primary factors, there are many other factors that affect industrial location. These factors are not essential to the manufacturing process in themselves, but may so affect cost structures that they become vital in the location decision process. The influence of physical environment including topography, climate, and water availability is important. Governmental policies including subsidies, government ownership, legal and legislative actions, taxation, environmental regulations, etc., are also important. Personal considerations such as the existence of capital in a locality, the favorable impression of a chamber of commerce, or existence of a university may be important. Depending on the nature of the industry, the SPS could attract or discourage relocation when these factors are considered. 2.3 APPROACHES FOR REGIONAL AND LOCAL ANALYSIS Many techniques for analyzing industrial location have been developed. Although it is beyond the scope of this paper to consider them all, brief descriptions for several important procedures are included. These techniques include: comparative cost analysis, input-output techniques, correlation and regression analysis, and export-base computer simulation techniques.

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