Advanced Manufacturing Plant Location and Its Effects on Economic Development, Transportation Network, and Congestion

Abstract

The project explored the linkages between industry dynamics and economic activity, and the macro-congestion aspects of freight transport. The Kia Motors manufacturing plant near West Point, Georgia was selected for case study. The principal study effort went into collecting data elements in sufficient detail to allow for in-depth empirical analysis. This included collecting economic activity and supply chain data associated with the growth in activities both within the plant and among the many parts suppliers that have moved into the area to serve it. Impact variables examined include those related to employment in a wide range of occupations, schooling, educational attainment, and population and migration patterns. A series of economic multipliers are reported, showing some significant differences between counties with component supplier activity and other counties in the region. The project also developed a detailed spatial mapping and explored the derivation of supply chain cost estimates associated with both domestic and international movements of auto industry inputs and outputs, involving individual and multimodal highway, rail, and waterway shipments.

Keywords: Plant Location, Economic Impacts, Economic Multipliers, Freight Transportation Flows and Costs, Automobile Manufacturing Supply Chain, Multimodal Analysis, Global Shipments Modeling

JEL Classification: D00, D20, F00, H00, H70, L00, L60, L90, O22, R00, R40