Are there any business-savvy Pennsylvanians who can help me?
I live in Phoenix, AZ. I am an undergrad at the Arizona State University business school supply chain management program. Target stores is hosting a semester-long project asking us to decide where to build a distribution center in the Northeast. Narrowing down the geography factors as well as lead times, I have settled on building my D.C. in the Scranton/Lackawanna, PA area. It's a very central location to meet the increasing demands of New York City, New Jersey, etc. you know that whole chain of high-density population along the Northeast coast. Now, I need some insight on what Scranton, PA is like in terms of labor and local laws. Is it highly unionized? Are local laws welcoming or hostile to new business like distribution centers? I'm aware of other factors in choosing a distribution center but I am very concerned about the labor climate. Is it dangerous to my D.C. or is it a trade-off that can be coped with? Any other factors I must consider? Links to information would be great bonus for me too. But I'll take your guys' words too and just go from there. Hi Carlisle, those are some very good points I never considered, especially the bit about DC's being very automated and don't need to be heavily staffed. That is true to a very large degree and I think that would make the trade-off of unionization can be coped. The reason why I'm reluctant to locate my D.C. down south is because there is a D.C. already in Martinsburg, WV, which is 64 miles southwest of Carlisle. I could put two DC's next to each other (there are other DC's in pairs across the country), but it would not be as central to meeting the demands of NYC, New Jersey, etc. that whole chain I mentioned. If I was to pair DC's, I would pair with the one in Amsterdam, NY because it's maxing out on capacity. However, NY is highly unionized so I would be worse off there. So I'm probably sticking with Scranton/Lackawanna but if you guys have any idea of a place that is within a radius of 50 miles please share your thoughts. Thanks!
Asked By: B3 - 3/14/2009
Best Answer - Chosen by Asker
Hi Blitzen, I just saw this question. I have a little "mini-MBA" from UCLA but can not really weigh in very knowledgeably for your purposes here. Here's a little bit, though. Scranton is one of those older cities and may have more of a unionized tradition because of its coal-mining roots... More
Answered By: CarlisleGirl - 3/15/2009
Additional Answers (1)
It's working class, I don't think very unionized. It's got small town mantra's, work hard, earn a paycheck. Salaries would be low, as the cost of living is low. For what it's worth, a bit further south in Allentown there is a huge new distribution center, myb 10 years old. I think it might be for Nestea or Nabisco or... More
Answered By: The Dude - 3/15/2009
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