Economic Development Futures Journal

Saturday, February 08, 2003

counter statistics

Got an Interstate Off-Ramp?
Study Says You Need One to Compete


According to a recent article in Area Development Magazine, "in the past 20 years, more than 80 percent of new U.S. manufacturing operations have located in interstate-served communities, according to Ivan Baker of Pollina Corporate Real Estate in Park Ridge, Ill. Site selectors said interstates were the best way to connect their plants to cities, skilled labor, new infrastructure and educational resources."

Non-interstate-served communities may be “off the beaten path” but are not always rural, says Joel Kotkin at the Milken Institute. Some are suburban, exurban, or what the Milken Institute classifies as “leap-frog poles” — communities not adjacent to metropolitan areas but wired for the digital revolution. Over the past decade, manufacturing has grown twice as fast in exurban, rural, and leap-frog communities, compared to their urban counterparts.

As many others have said, there is no such thing as a "perfect" location for any business. Trade-offs always exist in choosing any given location. Are you out of the game if your area is not directly served by an interstate or interstate-quality highway? Not necessarily, but some projects might bypass your area if you don't have one. It all depends upon the project. You have to look at the specific requirements of the company and the resources offered by the community.

If you lack interstate access, it's probably not a good omen if you hope to build a distribution and logistics industry cluster in your area. But lots of other types of industries and companies have operated very competitively and profitably in areas lacking direct interstate access. Moreover, many companies like being off the beaten track a bit for business and lifestyle reasons.

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