Targeting & Opportunity Studies
Nebraska Public Power District's (NPPD) series of industry opportunity studies analyze and
quantify the industrial location advantages of NPPD's service area and communities for
specific targeted industry groups. The studies compare the geographically-variable
operating costs for NPPD's service area with the geographic areas where these
industries have traditionally been concentrated. In each study a model plant that is
representative of the respective industry group is "constructed" and used to quantify
these geographically-variable costs. The comparative advantages of NPPD's service area are
then quantified by the two principal cost dimensions (labor-related and energy costs) that
vary geographically.
Nebraska offers a wide range of locational advantages to manufacturers. An attractive business
climate, a well-educated and productive labor force, reliable supplies of low cost energy, and
a location central to national markets are among the leading advantages of a Nebraska location.
Read on to learn more about what each study offers.
Available Studies:
(Click to go to study abstract)
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Manufacturers of Plastics Products Study
(May 2012) NAICS 3261 group, Plastics Products Industry, Approx. 40 pages.
Model Plant Size: 50 production workers, NAICS 3261
Study Size: 16 states. Besides Nebraska, these states include the top ten states
in terms of industry production as well as other states near Nebraska with which it
typically competes for industrial location projects.
Advantages:
Compared to the 15 alternative states, Nebraska is found to offer an average annual savings
of $364,297 in labor-related costs, which is 15.3 percent less than the average labor costs
for the other states.
This study also concludes that a Nebraska plant location offers a significant energy cost advantage.
Industrial electric rates for the alternative states average 20.4 percent more, and the average
industrial gas rate is 17.4 percent higher than Nebraska. Combining these advantages,
Nebraska's energy cost for the model plant is 16.6 percent less than the average for the
15 alternative locations.
Together, Nebraska's annual labor and energy costs for the model plant are $445,065,
or 15.5 percent less than the average costs for the 15 alternative states.
Conversely, the average labor and energy costs in the alternate 15 states are
18.3 percent more than the Nebraska labor and energy costs.
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Food Processing Study
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(January 2013) Generally applicable for the Food Processing
industry as a whole (NAICS 311),
Approx. 44 pages.
Model Plant Size: 50 employees, NAICS 311
Study Size: 16 states. Besides Nebraska, these states include those currently
having the largest production in the industry as well as other states near Nebraska
with which the state typically competes for industrial
location projects.
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Advantages:
Compared to the average labor costs for the 15 alternative states, Nebraska is found to offer
an annual savings of $234,484 in labor related costs, which is 9.0 percent less than the
average labor costs for the other states.
This study also concludes that a Nebraska plant location offers a significant energy cost advantage.
Industrial electric rates for the 15 alternative states average 16.4 percent more than the Nebraska
rate and the average industrial gas rate is 25.8 percent more. Combining these advantages, Nebraska’s
energy cost for the model plant is 16.8 percent less than the average energy cost for the 15 alternative locations.
Together, Nebraska’s annual labor and energy costs for the model plant are $340,095, or
10.5 percent less than the average annual labor and energy costs for the 15 alternative states.
Conversely, the average labor and energy costs in the other 15 states are 11.7 percent more
than the Nebraska labor and energy costs for the food processing model plant.
Manufacturers of Fabricated Metal Products Study
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(April 2013) Generally applies to NAICS 332, Fabricated Metal Product Manufacturing subsector, Approx. 43 pages.
Model Plant Size: 50 production workers, NAICS 332
Study Size: Sixteen states are examined in the analysis. These states include
the top eight states in terms of value of shipments by the Fabricated Metal Product
Manufacturing subsector, the three states with the highest potential for wind power
generation (Nebraska ranks third), and other states near Nebraska with which it
typically competes for industrial location projects.
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Advantages: Compared to the 15 alternative states, Nebraska is found to offer
an annual savings of $295,447 in labor-related costs, which is 10.4 percent less than the
average labor costs for the other states.
This study also concludes that a Nebraska plant location offers a significant
energy cost advantage when compared to the average cost of the other 15 states.
Industrial electric rates in the alternative states average 9.1 percent higher, and the
average industrial gas rate is 22.3 percent more. Combining these
advantages, Nebraska’s energy cost for the model plant is 11.1 percent less than
the average for the other 15 alternative locations.
Together, Nebraska’s annual labor and energy
costs for the model plant are $323,520, 10.4 percent less
than the average costs for the 15 alternative states. Conversely, the average
labor and energy costs in the other 15 states are 11.6 percent more than the
Nebraska labor and energy costs.
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