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OCR for page 49
education levels of the population and the availability of follow-on training programs to fill specific requirements. Some companies view the presence of a union as beneficial, as specific industries already expect to work with unionized labor. Unions Some companies view the may provide training, support to the local labor force, and also act presence of a union as as an easily identifiable party who can readily represent labor in beneficial, as specific industries negotiations. Other companies work actively to avoid unionization already expect to work with and will use their location as part of an overall strategy to lessen the unionized labor.... Other risk of labor becoming organized. companies work actively to avoid unionization and will use their location as part of an overall strategy to lessen the risk Total cost environment of labor becoming organized. Companies develop cost models to evaluate the relative costs of doing business in each candidate location or scenario. The models will assess the sensitivity of each scenario's relative feasibility to changes in factors such as fuel costs, product mix, labor costs, tax exposure, product sourcing, or other key inputs. The cost model may include any or all of the following: $$ Start-up costs Land or facility purchase (if applicable). Construction and fit-out costs. Recruiting, hiring, and training. Relocation expenses. Equipment and furniture purchases. Sales tax. $$ Recurring costs Ongoing inbound and outbound transportation costs. Transportation network service performance. Rent (if applicable). Building and equipment depreciation (if applicable). Maintenance, repairs, and other occupancy costs. Staffing and labor costs. Benefits and recurring training. Freight Facility Location Selection: A Guide for Public Officials 49