Plant location labor relations

A large portion of the cost of any manufactured item is represented by labor. Although labor rates are more and more becoming similar in most parts of the country, factors such as skill, labor relations, and the general welfare of the work force affect labor productivity and efficiency. Each region being considered for plant location must be suiveyed to determine the availability and the skills of the labor market. The skills need not exactly match with those... 

Stability of labor relations is an important criterion for location selection. The Japanese have negotiated singleunion plants and no-strike deals with trade unions to try to ensure such stability. 

Plants need to be mn by people and the avaHabiUty of employees can constitute the overriding consideration in certain businesses, in relation to siting. Labor-intensive businesses have to either move to a location where labor is available or move their employees to the new plant site, which can be cosdy both from the standpoint of the physical move and also with regard to the additional expense of relocating a family from one place to whoUy new surroundings. Older and less flexible work forces often choose to accept eady retirement, quit, or not to relocate. 

Chemical economics. The preceding problems must always be approached in relation to economic considerations. One must consider the availability, location, and cost of raw materials. The cost of equipment and its maintenance, labor, power, and so forth, are only a few of the factors that govern the feasibility of the process. The actual location of the plant must be considered in relation to the cost of transportation of raw materials to the plant and of finished products to the market. 

Economic Relation to Other Industries. As a rule, a chemical plant will have a better chance of success if located near others of like nature. A group of plants can obtain favorable rail rates, better service from utilities, and plentiful supply of labor. Better banking and technical services are thus available, since familiarity with the needs of the industry results in segregation of knowledge and the establishment of sound credit relationships. Utilization of wastes from related plants or similarity of disposal offers unusual opportunities for economies. 

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