The choice of Nevada as an appropriate location to set up the factory can be attributed to many reasons. Local labor market; the availability of potential workers and employees is an important factor to consider in setting up a factory. In this case, Nevada State has a large population ready to provide both the skilled and the unskilled labor force. Therefore, the decision to locate the factory is in line with the ability of the local environment to provide the required labor force for various jobs in the company (Kolko 15). Such jobs include; transportation of raw material to the factory as well as carrying the finished product out of the factory, jobs at various stages of processing, cleaning, packing, blending and storing the batteries in the stores.
The area has full potential for employees, and the manufacturing process will not be hampered by the lack of people to work in the factory. In addition, the state bears sufficient competent labor force. The area has many people who have gone through education curriculum and bear skills such as accountancy, engineering, information technology and who will be ready to render their services to the factory in designing the factory and participation in the day-to-day operations of the factory.
The choice of Nevada as an appropriate site could be as a result of closeness to service suppliers. The location boasts of a number of input materials for the business operations (Schmenner 12). The area has other industries ready to provide essential materials such as polythene bags, of lithium minerals, carbon rods that are critical in the production process. The proximity to the suppliers will reduce the time required to transport raw material from diverse locations. In addition, the proximity will ensure that the production process does not stop at any level due to lack of key resources for production.
The proximity to essential resources such as electricity, water, and good infrastructure render the area most appropriate site for the location of the factory. The production process will run smoothly as the proximity to the suppliers will cut costs involved in transporting and having to wait for long periods before the delivery of raw products.
Nevada area choice is in line with the areas’ culture of low crime rates and, therefore, employees will feel safe in the building when alone. Safety is a crucial factor and owing to numerous police stations, the area provides Tesla sufficient security for the operation of the battery factory resources. The safety in the area will ensure the employees work without having to fear of attacks from crime groups.
Nevada has a wide region for expansion. It is every factory goals to increase its production and grow as a result of increase demand for its products. Nevada area provides adequate space for both developments of the physical structures and consumer needs. The area provides adequate space for which to build new structures as a result of increased production (Salvaneschi 21). This will provide sufficient safety to all stakeholders’ property thereby increasing or enhance the public image of the factory leading to consumption of its products. The factory can also take advantage of the availability of space to introduce new brands in the market, as they will have adequate space to put up more factory structures. The availability of space will also ensure that the factory can build houses for its employees, thereby reducing the time required for traveling to and from work.
Nevada State provides an adequate market for its finished products. Due to the area high population, there is a ready market for the factories’ finished products. The availability of market demand will ensure that there is consistency in sales thus ensuring the factory can meet production costs, in addition, to making sufficient profits to help the factory management expand its base. In addition
The availability of government incentives for the setting up of factories may be another reason for the choice of Nevada. Factories in the area obtain incentives from the government in addition, to reduced taxes payable to the authorities. This is a program to ensure the decentralization from the other states and enhance the development of the state (Kolko 18). The choice of the location could be therefore as a result of the attractive package from the government to enhance growth and development of the location (Schmenner 12). The state boasts of tracks of unutilized land.
The location of Nevada is easily accessible from the neighboring states owing to highly developed infrastructures such as good roads, railways, and good international airports. The choice of the area could have been, therefore, as a result of the accessibility. Good accessibility permits consumers to travel to and from the company to buy their products. In addition, good accessibility allows the suppliers to make timely deliveries of raw materials. Moreover, accessibilities enhance interaction of factory management interaction with the external environments to ensure that good relationships with surrounding people and helping address problems such as pollution to the environments around the factory. Furthermore, good accessibility allows for movements of the labor force easily.
Schmenner, Roger W. Making Business Location Decisions. Englewood Cliffs, N.J: Prentice-Hall, 2010. Print.
Kolko, Jed D, David Neumark, and Ingrid Lefebvre-Hoang. Business Location Decisions and Employment Dynamics in California. San Francisco: Public Policy Institute of California, 2007. Print.
Salvaneschi, Luigi, and Camille Akin. Location, Location, Location: How to Select the Best Site for Your Business. Grants Pass, Ore: Oasis Press/PSI Research, 2013. Print.