How important is access to public transportation in corporate location decisions?
According to this article, access to public transportation is now a major factor as large corporations, including Amazon, McDonalds, and Caterpillar, attempt to attract and retain employees in a tight labor market.
It is especially a factor for Millennials, who have multiple job prospects and often prefer not to own a car — or cannot afford one.
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This post is based on the NPR article, ‘Talent Wants Transit’: Companies Near Transportation Gaining the Upper Hand, by D. Schaper, November 29, 2018. Image source: egdigital/Getty Images.
1. Why do businesses prefer locations with easy access to public transportation? Is it true for all types of businesses?
Guidance: The article identifies the primary reason as attracting and retaining employees. It is important for businesses to have easy access to their markets as well. This is why the service sector typically enjoys strong economic activity in city areas with public transportation stations and stops.
As an added bonus, large cities with extensive public transportation options often have access to major airports and highways, Continue reading