Manufacturing Example

Case Study #2-Manufacturing Plant
A manufacturer requires a location for a 250,000 square foot operation to fabricate and assemble electronic components. The equipment investment is estimated at $40 million, employment is projected at 220 skilled machine operators and assembly workers, and electricity consumption is forecast at 6.1 million kilowatt hours annually.

The company prefers to locate near large metal fabricators and tool and die shops to support its operations, and must insure it sites the operation in a community that can support its employee skill requirements.

The company wishes to avoid the United Steelworkers union. Rail service is required from a Class 1 railroad, with a strong preference for service from Norfolk Southern or CSX.

Lastly, the company prefers a location near a general aviation airport with a runway of at least 6,000 feet to accommodate corporate aircraft.

The first map establishes the location options that meet the client’s requirements for union avoidance, airport proximity and rail service. (Click on map to enlarge.)

In the second map each county is color coded based on the projected operating cost of the client’s facility. This cost analysis underscores the significant variability in wages, power costs, construction costs and property tax rates between counties.

Also shown is a dot-density representation of employment in metal fabricators and tool and die shops. This map reveals the lowest cost options that also afford the best access to critical support services are located in central or northern Pennsylvania. The cost savings could be as much as $2.2 million annually.