Click to visit Site Selection Online
MARCH 2005

Click to visit www.sitenet.com
MACHINERY & EQUIPMENT INDUSTRY SPOTLIGHT



Future Location Decisions
Driven by Cost — and Workers

    For equipment and machinery companies, cost considerations loom large because of the heavy capital investment in factories required. Rising shipping costs are a concern as well, particularly for industry sectors that must transport

Association of Equipment Manufacturers
www.aem.org

Association for Manufacturing Technology
www.amtonline.org

American Machine Tool Distributors' Association
www.amtda.org

Semiconductor Equipment Manufacturing
www.semi.org

Robotic Industries Association
www.robotics.org

massive machines, like Bucyrus International's draglines that weigh in at 260,000 pounds. These firms may decide that investing in additional plants closer to customers proves more efficient. Bucyrus, for instance, is renovating its hometown digs in Milwaukee, Wis.
      But going forward, experts suggest that location decisions for these companies will not just be about cost. Finding the right work force will play an equally important role as company executives evaluate options.
      "Even bulldozers are computers on treads today," says site consultant Don Schjeldahl, a vice president of The Austin Company, "And factories are going to need highly trained workers."
      Decisions could hinge on a state or locality's commitment to work force training as companies look toward future expansion, he says. "Lots of states say they are investing in the training, but not as many are really doing it. Companies will have to look at the fine print to make sure they will get the skilled workers they need."
      Schjeldahl singles out New York State and the St. Louis region as two areas that have made a significant commitment to the type of technical work-force training efforts that machining and equipment manufacturing firms will need in the 21st Century.Site Selection

      Ann Moline is a Washington, D.C.-based business journalist who covers land use and international economic development. She is a collaborating author of two books from the Urban Land Institute, "Just-in-Time Real Estate" and the soon-to-be published "Green Buildings."
     
TOP OF PAGE
Next Page


©2005 Conway Data, Inc. All rights reserved. SiteNet data is from many sources and not warranted to be accurate or current.