2 Case Study 1
Opportunity Knocks
Perhaps the focus of the presentation and discussion was the development of a new federal legislative package that would provide funding for a new regional highway projects. The president, Harry O. Growbaker, of the HOG Inc. feels that with the company 's participation we could present a positive view of the economic impact of such stimulus spending in central Pennsylvania. Terry, the vice president of HOG Inc. has asked that staff members provide some discussion points that will be presented into the next senior management meeting that will point out some economic and social benefits from the new highway.
Tom, a staff member has addressed the lack of good connections between two major interstates that transverse through central Pennsylvania. This in fact will help the economic grow within central Pennsylvania and it would also be very attractive plan to the state and federal government. Sandy, another staff member brought up the point of synergism and that the government recently started giving away land that had been part of a prison that could be used for economic development. The net social rate of return will increase for private industries that decide to develop along the new highway link. It also creates a new network feature that will be beneficial to all industries. Economic benefits can derive from employment, direct users, and industry productivity. Employment supported by highway construction companies can boost the economy. Direct users benefit from commuters and travelers by time saving, safety improvements, and vehicle operating cost reductions. Time saving is a great benefit that all users will see as an advancement in daily routine. Commuters and travelers will appreciate the time saving and vehicle operating costs reductions. With high gas prices, all direct users will see a immediate change in gas usage. Industry productivity is another area that will gain by economic
References: Coyle, J. J., Novack, R. A., Gibson, B. J., & Barbi, E. J. (2003). Transportation: A Supply Chain Perspective, Seventh edition. Mason, Ohio: South-Western Cengage Learning.