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Considers raw material
costs, processing costs and distribution costs
Locate near the source of
raw materials
Minimization of
transportation costs of bulky material.
Sugar, seafood, vegetables
and wood products are often processed on site
Finished products are more
difficult or expensive to transport than raw materials
Location near market
Bakeries, coke/Pepsi
bottling plants
Some goods are expensive to
manufacture because of an input.
Labor, land or energy,
among others may be a top consideration
Aluminum industries for
example need very cheap power and will locate near cheap sources of
electricity.
Refers to locations where
transshipment of a product or good must take place.
Rather than reloading one
of the goods onto another transport vessel, it is more cost efficient to bring
all the necessary inputs to the spot where transshipment costs are minimal.
Refining and petrochemicals
are an example of an industry located primarily at a break of bulk point (Baton
Rouge-ocean-going, freight, train, river barge, and pipeline all intersect
here).
Might be Louisiana’s best
advantage
Lots of water for many
different type of industrial development
Transportation in a
multitude of forms
The New Orleans corridor is
the nation’s largest port.
Tertiary refers to the
business, selling and service industries
Retail activities that are
best able to pay rents will locate in the most central location
High value of product per
square foot occupies prestigious downtown locations.
Creates the necessity for
vertical expansion, intensive land use
Face to face contact is
generally a necessity for these industries
Often find themselves
linked complementarily (legal, insurance, banking, governmental)
Car dealerships and
supermarkets are less likely (for other reasons too)
Many retail activities
choose to agglomerate.
Agglomeration is an
advantage to some establishments because they can share resources and costs.
They may share customers,
they may share the costs of infrastructure or they may be linked.
There are competitive
linkages, with car dealerships, furniture stores, clothing retailers
The mall is one expression
of this ideal
Horizontal expansion: vast
parking lots and single story development
Vehicle orientation located
near interstate or other major highways.
Form along heavily traveled
corridors into the CBD
Mixed retail and industrial
uses sometimes.
Some businesses or
activities do well only when they are well spaced
Most public facilities,
such as fire stations or police departments work this way.
Day care centers may also
follow this pattern
Poisson distribution
Numerous tax breaks, but
nothing exceptional from other states
Louisiana Enterprise Zones:
an inventive plan that offers extra incentive for businesses to locate in poor
neighborhoods or poor parishes. Over a
billion dollars in new investments, about half a billion in St. Charles parish
alone.
Some successes recorded,
but other states have followed suit.
Cultural heritage, mild
climate, nice nightlife
“Louisiana is more than a
good place to do business, it’s a great place to live”
“Louisiana: A Recipe for
Success”
Limited success
Other things keep dragging
LA back down
Educational spending,
medical problems,
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