Labor Remains #1 Consideration in Industry Site Location

July 30, 2010 at 6:47 am Leave a comment

The Area Development 2009 Corporate Survey again illustrated the importance corporations place on labor when making location decisions. Of the 26 factors measured by Area Development, labor costs were rated the single most important consideration and skilled labor availability was ranked sixth in importance.

Labor is often one of the more notable operating costs for manufacturing operations and, as stated, one of the most significant geographically variable costs. While the contribution to the total cost of operations varies by industry and type of manufacturing operation (i.e., capital/process-intensive versus labor-intensive), labor often represents the second-largest geographically variable cost. The variable nature of labor costs makes it a key consideration when determining where to locate facilities.

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Entry filed under: Industry Site Location, Labor Factors. Tags: , , .

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