International plant location decisions under labor scarcity

Jesus Villalobos, Omar Ahumada

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Scopus citations


One of the main factors in plant location decisions for international manufacturing companies is the cost of labor. However, the cost of labor is not a static parameter since the presence of multiple companies in a new region increases the competition for limited labor availability. This, in turn, increases labor turnover and labor cost. In this paper, we use the case of Mexican Maquiladoras to review the impact that the presence of new industrial plants have on wages and labor turnover and to highlight that companies should consider the dynamic aspects of industrial employment to make plant location decisions.

Original languageEnglish (US)
Title of host publicationIIE Annual Conference and Expo 2008
Number of pages6
StatePublished - 2008
EventIIE Annual Conference and Expo 2008 - Vancouver, BC, Canada
Duration: May 17 2008May 21 2008


OtherIIE Annual Conference and Expo 2008
CityVancouver, BC


  • Cost of labor
  • Labor turnover
  • Plant location

ASJC Scopus subject areas

  • Computer Science Applications
  • Software
  • Industrial and Manufacturing Engineering


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