Look at it this way, think about a position that pays $40,000 per year. The rule of thumb is that it takes 1/3 of the compensation package (in this case $12,000 for 40k) to train someone for that position. This is time in class, materials, instructor salary, etc...
This does NOT include the costs of assessing for skills, advertising, interviewing, etc...which many times are contracted out to various places.
So, in the case of Honda...which have about 2000 associates...since some of these were transplants, lets reduce it to 1500 new people to train...1500x$12000 = $18,000,000
Suddenly a building, rail siding and such are pretty cheap. Plus, consider this, I go train at Honda for this new job, work 3 years, then move to Ford...taking my skills with me. This is the ironic thing, no one talks about this...and most communities shy away from it because education and training is such an intensely personal issue, but, when you look at it this way, in terms of real numbers...suddenly it makes sense.
People, not place, drives this process.
Eric
midland sub wrote:Honda wanted Jeffersonville over Greensburg. The tax incentives and what not weren't the issue. It came down to available workforce. Jeffersonville fit better into Honda's supply chain. Logistics for both locations were about the same. It simply came down to Greensburg at the time had a more available workforce. At the time of the decision DHL was still using Wilmington as their US hub. Which used about 10,000 people to run. Honda sometimes struggles with filing production positions at Marysville and East Liberty during strong economic times. So with DHL 20 miles awhile Honda was worried about filling production positions with quality applicants. So Gree
nsburg got the plant..