A location factor is a total cost factor used for converting a base project cost from one geographic location to another. As such, it is a powerful tool for checking which region may provide greater economic attractiveness for a new industrial venture.
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Intratec’s Location Factor takes a US Gulf Coast-based plant as the reference location. Calculations take into consideration the differences in productivity, labor costs, local steel prices, equipment imports needs, freight, taxes and duties on imported and domestic materials, regional business environments and local availability of sparing equipment. For such analysis, all data were taken from international statistical organizations and from Intratec’s database.