Location

Locality decision as to just where the plastic injection molds plant will be located should be governed by many factors. In the first place, it is well to consider the relation of plant location with that of the sales field. In other words, it would be better by far to be situated in the midst of activity rather than hundreds of miles away. If for instance, the greater part of the business were to be obtained in New England territory, a plant in California would be at quite a disadvantage.

Centralized location with respect to marketing is of utmost importance. Not only is there a great saving in freight charges on finished goods but in addition, there is no loss of valuable time in communication and delivery of merchandise.

Heavy freight charges must necessarily be reflected in the cost of the goods and any small increase in selling price is a draw back to the producer, inasmuch as there is just that much more sales resistance to be overcome.

Second in importance, is the proximity of the plastic  injection molding plant, to its source of raw material supply. Unfortunately, sufficient stress on this point has not been made in many industries and even though lack of consideration of this factor would not necessarily cause failure to a business, yet it would have a decided effect on the stability of a new organization. In the plastic molding industry this point deserves particular consideration inasmuch as the raw material constitutes a great part of the finished article so far as the cost is concerned. Once again freight costs must be taken into account and remoteness from a definite supply of molding powder tends not only to boost this price but also necessitates the carrying of large inventories to insure constant production. In many industries, the building up of large raw material supplies is advantageous but such is not the case in the plastic molding business.

Drums of powder are often exposed to atmospheric conditions and consequently become perishable. Moisture affects the condition and texture of the powder and in many instances makes it almost impossible to use after a definite length of time. Then too, floor space is sometimes at a premium and seldom is any provision made for an overstock of raw material like steel for plastic injection molds making.

Railroad and waterway facilities have a certain bearing on the location selected and some forethought of future legislation with respect to prospective new inland water routes or any contemplated express highways for trucking must be given due thought. These factors should be considered not only in the light of incoming raw material advantages but also outgoing transportation conveniences. One or another definite means of fast and efficient transportation should be available.